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3D Power Plug Business Plan

Presented By : Team A1
ADITYA KANSAL
AJAY KUMAR SHARMA
APEKSHA SAGAR
DIPAN CHAKRABORTY
MANJIT SAHU
RAGHAV BHATNAGAR
RAKESH BEHERA
RAKIND GUPTA
RAVIKUMAR SINGH
SAURABH RAINA
SHAH YASH KHUSHAL

Executive Summary
A1 Technologies aims to provide advanced electrical solutions and plans to launch 3D power
plugs in India
The firm plans to commence production at Delhi NCR with annual installed capacity of
360,000 units
Key competitors are luxury switches manufacturers, such as Crabtree and Lagrand
3D power plug is an advanced electrical device targeted to meet the aspirations of both
households and enterprise in key Indian cities
The firms expects sales of 10,000 units in year 1 with gross revenue of about INR 120,00,000

3D Power Plug Business Plan | July 2014

MISSION AND VISION


We are working hard towards the mission and vision of the organisation, to make it the largest
electric devise company of the country and continuously strive towards enhancing customer
experience.
VISION : To become the most valued group, better than the other competitor companies
MISSION : To provide innovative and quality product at affordable prices

3D Power Plug Business Plan | July 2014

Competitive Analysis
Currently, only one company in the world has a product similar to ours. It is called as the
Lebedev's Rozetkus 3D socket
However, the product is still in concept/design stage. Hence, since our product is ready to be
manufactured, it gives us a huge edge over the solitary direct competitor we have
We foresee that once this product catches attention, major names in the electrical parts
industry will want to design and push a similar product. Below, we are analysing the major
player in India.
Havells Havells currently commands ~13% market share in the luminaries segment. Similar
market share can be expected in the organised power socket industry of India. This would
mean a high likelihood of it launching a similar product.

Source: http://www.engadget.com/2009/11/09/art-lebedevs-rozetkus-3d-socket-concept-gives-you-five-plugs-wh/ , http://www.havells.com/Admin/SiteMedia/AnnualReport/Havells-AR-2014.pdf


3D Power Plug Business Plan | July 2014

Competitive Analysis
Has been one of the pioneer company to exploit the shift in consumer demand from
unorganised electrical component sector to organised sector. Since our product is targeted
towards the urban middle class sector, Havells in all likelihood will come up with a product
similar to 3D power socket
Being a global company, it has a strong global distribution network. It can use this network to
source material at a low-cost and reduce time-to-market. However, since we are planning to
keep most of the manufacturing operations in India, it will not have an advantage in terms of
time-to-market.
In the recent years, the companys has focussed on India in a major way. This is also
apparent from their spend on branding and advertising activities. It also has 14 manufacturing
facilities in India.
It also does it R&D activities in-house with a majority of them in India.

Source: http://www.engadget.com/2009/11/09/art-lebedevs-rozetkus-3d-socket-concept-gives-you-five-plugs-wh/ , http://www.havells.com/Admin/SiteMedia/AnnualReport/Havells-AR-2014.pdf


3D Power Plug Business Plan | July 2014

General Company Description


A1 Technologies is a start-up company focusing on innovative and high performance
electrical devices and appliances
A1 Technologies takes pride in developing state of the art products with a special emphasis
on enhancement of customer satisfaction
We are currently looking for funding to develop and market a radical 3-D power plug

3D Power Plug Business Plan | July 2014

Product and Services


We are a start up company pioneering in state of the electronic appliances such as
3D power plug
Low cost LED luminaries (conception stage)
Low cost CFL luminaries (design stage)

3D Power Plug Business Plan | July 2014

Market Segmentation and Targeting


Segmentation

Indian Electric Switches Market

City Household

Other Household

City Enterprise

Other Enterprise

Targeting

City Household
Household and enterprise clients in economically
affluent section
Need to operate multiple equipment through single
port
Strong replacement demand driven by frequent
adoption of latest household equipment
Limited price sensitivity and significant influence of
advertising

City Enterprise
Office spaces serving large corporation
Need for multi-point power plugs to support
workstations and peripherals
Large-scale infrastructure growth including
development of commercial/office complexes
High volume contracts

3D Power Plug Business Plan | July 2014

Positioning and Marketing Mix


Positioning

Multi-point switch that simplifies electricity connections and provides power surge protection
Positioned as a luxury, smart electrical device with application in both household and enterprise
Marketing Mix

Product

Price

Five-point plug for multi-utility

INR 1,200 per unit

Two types of design models

Premium pricing matching competing


luxury brands, such as Legrand and
CrabTree

Surge protection for safety


Promotion
Television advertising highlighting product
as premium
Merchandise (such as bags, torch light)
for purchases over 20 units

Place
Traditional brick and mortar model
Distribution through 100 distributors and
2,000 retail outlets
Sales presence in Tier 1 and 2 cities

Distributors credits on sales over 1,000


units
Source: http://www.icra.in/files/pdf/Havells-201103.pdf, http://www.marketpulseindia.com/docs/Market-Report-Electrical-Switches.pdf
3D Power Plug Business Plan | July 2014

Operational Plan
Product : 3-D power plug
Production plant location : Delhi NCR
Production Plant Capacity : 10000/month
Production Process: Batch Process system
Inventory : 50% of daily sales which can be flexible
Quality assurance includes regulation of the quality of raw materials, assemblies, products
and components

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Operational Plan
List of Raw Materials required:

Raw Material

Supplier

Casing (Urea Formaldehyde)

Synpol Products PrivateLtd

Pins

Bhargav Brass Industries

Packaging Material

Pp Pakaging

Fuse Clips, Cable Wires

Star Automations

Sources : http://www.synpolproducts.com/phenol1.html, http://dir.indiamart.com/impcat/electrical-pin.html, http://


packaging.eindiabusiness.com/packaging-categories/packing-material-manufacturing.html
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Supply Chain Process

Preparation

Processing

Assembly

Finishing

Shipment

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Financial Projection
Year 1 (INR)

Year 2 (INR)

Year 3 (INR)

Year 4 (INR)

Summary of
Financials
Units Sold

10000

40000

80000

100000

Unit Price

1200

1200

1200

1200

Total Revenue

12000000

48000000

96000000

120000000

Fixed Cost

60000000

10000000

10000000

10000000

6000000

24000000

48000000

60000000

66000000

34000000

58000000

70000000

-54000000

14000000

38000000

50000000

Variable Cost
Total Expense
Earnings before
Tax

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Income Statement 2013-14


Particulars

2014

Sales

276000000

Cost of goods sold

228000000

Gross profit

48000000

Admin expense

100000

Selling exp

200000

Operating profit

47700000

Profit before tax

47700000

Tax (30%)

14310000

Profit after tax

33390000

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Thank You

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