Table of Contents
I. Executive Summary 1
II. General Company Description 2
III. Products and Services 3
.IV Marketing Plan 4
V. Operational Plan 5
VI. Management and Organization 6
VII. Personal Financial Statement 7
I.VII Startup Expenses and Capitalization 8
.IX Financial Plan 9
X. Appendices 10
CARL WindBelts is a new for‐profit company that offers home‐based wind energy solutions to rural as well as urban communities. CARL WindBelts
will be lead by four mechanical engineers from iit madras namely Raviteja, Abhinay Sali, Chandrasekhar and LaxmiNarayana. Our product, the Wind
Belt is a turbineless wind generator that is capable of producing electricity sufficient enough to charge low voltage appliances. We have a R&D
department that works to enhance the efficiency of our products and use them for large scale purposes as well. Our products are environment
friendly as well as highly useful in saving energy. With this unique product, CARL WindBelts wishes to be a top class producer and marketer of Wind
Belts and become a leader in renewable energy sector.
General Company Description
CARL WindBelts is a start‐up company in the energy sector positioning itself to become the market leader in offering wind based energy solutions at
the home level. Our product is a turbine‐less wind generator that can be used for lightning LEDs, charging mobile phones, running clocks etc. It can
be of use in the rural as well as urban areas.
Our mission is to provide the simple home‐based wind energy solutions for BoP as well as urban communities. In three years, we want to profitably
and sustainably introduce our Wind Belts in the rural communities. Through careful analysis, attentive customer support, and cost effective
solutions, CARL WindBelts will become a stable business serving the Indian community.
To become the world leader in the Creation, Development and Deployment of Technologies in the renewable energy sector
CARL W uccess of the business:
indBelts has identified the following objectives that it will achieve for the long‐term s
• ergy consultancy in the state within five years
• der of home based wind generation
ome the premier environmental en
• Reach profitability within one year
The company will be first launched in Nellore District of Andhra Pradesh, India. The company will aggressively expand into a global provider of
windbelts by seeking new opportunities in other parts of India, as well as in Asia and Africa. By 2014, CARL WindBelts will be the world’s undisputed
leading provider of Wind Belts and will operate Research & Development divisions for creating innovative novel technologies that address the
nvironmental crises of the 21st Century. This business plan will present CARL WindBelts’s strategy for getting started, by establishing a profitable
nd sustainable RE business in Nellore.
CARL WindBelts will be organized as a company with an executive office in Chennai during the first quarter of 2011. The company will serve as a for‐
profit holding, investing and consulting agency and will work in partnership with developing communities to establish sustainable wind energy
products all over the world.
Products and Services
Our products are WindBelts, i.e. turbine‐less wind generators. We eliminated the rotating equipment from the conventional turbines and replaced it
with vibrating strip. Two magnets attached at the ends of the strip move in and out of a copper coil when the strip undergoes oscillations. Thus, by
Electro Magnetic Induction, electricity is generated!
n be found in the Appendix – I. Technical Specifications and other details of the products ca
Cur nt ferent products in our portfolio. re ly, we have two dif
lt 1. Regular Wind be
b2. Large Wind elt
Regular Wind Belt has a one meter long vibrating strip and it can charge <1kV appliances. Large Wind Belt is in its beta version. Our R&D
department making efforts to use it for lighting an entire house of 4 people. is
• Pollution free
• Low cost home based generator
• More efficient compared to the conventional systems
• challenges in gaining trust from the people and getting it into the market Since this is the first of its kind product, we may face
• Wind based power generation is not always reliable
To solidify people’s confidence in the financing options, and to demonstrate the company’s dedication to the community, a large wind power station
and community center will be constructed in Nellore. A number of end‐user services will be provided at this community center, such as coffee bean
processing, food storage and refrigeration, battery charging, water distilling, computing, telecommunications access and Internet browsing. Most of
these services will be provided within a year after CARL WindBelts’s initial establishment in Nellore, but eventually they will generate as much as
75% of the company’s revenue. All of these services will be designed to help the village residents augment their incomes. In this way, CARL
WindBelts hopes to foster economic activity, and thus prosperity, within the community. This business plan will not describe the community center
aspect of CARL WindBelts’s operation in detail, but the offering of these services is part of the company’s long‐range plan for development in AP.
The marketing plan is based on developing an awareness regarding CARL WindBelts's products and services to the end‐use consumers. CARL
WindBelts shall strongly use networking as a means to publicize its products. To reach the end user customers, CARL WindBelts will use
Advertisements in the local paper as well as within the yellow pages. As a means of increasing visibility of the company, it will participate in several
community‐based seminars that serve as a free source of information for the citizens of India. CARL WindBelts believes that participating in the
seminars will be an effective way of meeting many of the potential customers and allowing them to become familiar with our expertise. Apart from
these, word‐of‐mouth publicity will anyway be there if the product is good.
In Nellore, and in all other project sites, CARL WindBelts will seek partnership with a local organization to help with operations, marketing, legal
negotiations, and other important aspects of conducting business. As such, we are confident that no other foreign company will be able to enter this
market because it is virtually impossible for any foreign company to conduct effective or sustainable business in a poor, developing community
without trustworthy local contacts.
Website Marketing Strategy:
The website will be used as a marketing tool. It will offer a description of the products offered as well as customer reviews/feedback/complaints etc.
The plan for marketing is fairly simple: submission to search engines such as Google, Yahoo and Bing and listing the website URL on all of the
company`s correspondence and printed marketing/sales media. Also, since we are in a renewable energy sector, we shall have backlinks to our site
in many other relevant websites in this sector.
Another plan for marketing is the extensive use of online media. CARL WindBelts shall have a facebook page, a twitter page and a blog apart from the
website mentioned above. Frequent updates on latest sales, customer reviews, ratings, stories, other technologies, latest innovations at CARL
WindBelts etc. can be publicized more effectively, thereby attaining a greater reach, which in turn increases the sales. This is particularly targeted at
rban customers as most of them are tech‐savvy. u
Production techniques and costs ‐ We need a manufacturer to make our products as per our design. In the long run, we wish to set up our own wind
belt manufacturing plant.
Quality control – To ensure quality, a team of two or three experts in this particular technology will be appointed and frequent checks shall be
conducted on a couple of products from the mass/batch production. We can as well try for ISO certification which also increases customer trust.
Product development – A dedicated product design and development team exists and it works directly under the guidance of the Ravi teja, Manager,
Product Design. It`s job is to constantly innovate for new products as well as enhancing the existing products for a flawless output.
Since we are a 4‐member team, we do not require other members to carry out the company`s initial tasks. However, in a month or so, we would be
needing people for reaching out to the deeper communities, demonstrations, marketing etc. For the BoP markets, we would be hiring a local person
since it will have a maximum impact on the end users. For advertising, we may tie‐up with a branding partner such as Desto. We shall have a
reasonable pay structure that is convenient for everyone. Staff shall be trained in their respective areas by experts for a month or so. We shall make a
rafter job descriptions for employees and develop internal communications with them. d
Management and Organization
The company will be lead by four of us ‐ Ravi teja, Abhinay Sali, Chandrasekhar and LaxmiNarayana. All of us are mechanical engineers from iit
madras. Ravi Teja has a good technical knowledge as well as designing skills. So, that helped him to be a suitable product designer for CARL
WindBelts. He worked for XYZ that provided him with a foundation of knowledge regarding green energy, just one of the areas of assessment.
Abhinay Sali has a great creativity and will be helpful for online marketing of CARL WindBelts. Chandrasekhar and LaxmiNarayana are capable of
ground work since they knew the BoP markets very well.
For the first three months, the founders can take the responsibility of all the company operations. Ravi will be responsible for most of the business‐
related issues as well as doing research and helping out with the work projects. Abhinay's responsibilities will be marketing and sales based. He will
work hard on developing visibility for the company as well as working with prospective customers. CARL WindBelts has forecasted that on month
four it may need administrative assistance. The duties will be answering the phone, some input accounting, and other clerical functions. Initially this
person will be part time but will move to full time at the beginning of year two. Chandrasekhar will head the Research and Development department.
LaxmiNarayana shall manage the sales and accounting departments.
Startup Expenses & Capitalization
Start –u nses: p Expe
he entrepreneurs invest Rs.50,000 from their pocket and take a loan of Rs.1,00,000 from a bank. T
Stationary etc; 1000
Start‐up assets needed:
Cash balance on starting date 70,000
Other current assets 50,000
Total Current assets 120,000
Long term assets 0
Total assets 120,000
Total Requirements 150,000
Investor 1 15,000
Investor 2 10,000
Investor 3 10,000
Investor 4 15,000
Total Investment 50,000
Accounts Payable 5,000
Current Borrowing 0
Other Current Liabilities 0
Current Liabilities 5,000
Long term Liabilities 100,000
Total Liabilities 105,000
Loss at start‐up 30,000
Total Capital 50,000‐30,000=20,000
Total Capital and liabilities 125,000
We have rented an office for Rs. 5,000. So, out of the current assets Rs. 5,000 goes off and Rs. 1,15,000 is the money left.
Our product cost of manufacture as of today is Rs.100. We wish to manufacture 500 products in the first month and sell them at Rs.300 each. It is still
cheaper given the fact that the product is viable and the customer gets the demo of how he can reduce his current bills.
The bank interest rate is 5% per month. So, 5000 rupees are to be paid per month. There would be 10 sales boys given Rs.4000/month and 5
workers given Rs.4000/month again. The rent is Rs.5000/month.
Month 0 1 2 3 4
No. of Products 500 500 750 2000 2000
Advertise 0 10000 10000 10000 10000
Rent 5000 5000 5000 5000 5000
Interest 0 5000 5000 5000 5000
Employees Salary 0 75000 75000 75000 75000
Manufacture Cost 50000 50000 75000 200000 200000
Maintenance 0 10000 10000 10000 10000
Total Sales Balance 0 150000 225000 600000 600000
Startup Capital left 115000 65000 60000 105000 400000
Total Assets 115000 215000 285000 705000 1000000
Fixed Cost 50000 155000 180000 305000 305000
Money Left 65000 60000 105000 400000 695000
Bank Repayment 0 0 0 0 100000
Entrepreneur Salary 0 0 0 0 0
Money after Repay 65000 60000 105000 400000 595000
The company is all set for the large scale wind belt production at the end of 4th month. The 95,000 will be shared by the initial investors i.e.; the
entrepreneurs. Keeping the money back instead of investing the whole money is playing safe. The entrepreneurs can exit safely if they fail.
With the 500,000 left there can be a new unit set up. The market is gets saturated at 2000 belts per month in Nellore. So the unit keeps going as it is
self‐sustainable. The caravan now moves to a new location. Nellore unit gives 500,000 per month. A Land will be purchased within 6 months and a
unit will be built on our own land.
s 30 rupees per month on current bill by purchasing the product at Rs. 300. Say the belt works for 2 years. The house hold save
Social relevance of innovation
= (720 – 300)/300 = 140%
Month 0 1 2 3 4 5 6 7 8 9 10 11 12
No. of Products 500 500 750 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000
Advertise 0 10000 10000 10000 10000 10000 10000 10000 10000 10000 10000 10000 10000
Rent 5000 5000 5000 5000 5000 5000 5000 5000 5000 5000 5000 5000 5000
Interest 0 5000 5000 5000 5000 0 0 0 0 0 0 0 0
Employees 0 75000 75000 75000 75000 75000 75000 75000 75000 75000 75000 75000 75000
Manufacture Cost 50000 50000 75000 200000 200000 200000 200000 200000 200000 200000 200000 200000 200000
Maintainance 0 10000 10000 10000 10000 10000 10000 10000 10000 10000 10000 10000 10000
Total Sales Balance 0 150000 225000 600000 600000 600000 600000 600000 600000 600000 600000 600000 600000
Start‐up Capital Left 115000 65000 60000 105000 400000 500000 400000 300000 200000 100000 0 100000 200000
Total Assets 115000 215000 285000 705000 1000000 1100000 1000000 900000 800000 700000 600000 700000 800000
Fixed Cost 50000 155000 180000 305000 305000 300000 300000 300000 300000 300000 300000 300000 300000
Money left 65000 60000 105000 400000 695000 800000 700000 600000 500000 400000 300000 400000 500000
Bank Re‐payment 0 0 0 0 100000 0 0 0 0 0 0 0 0
Entrepreneur Salary 0 0 0 0 0 400000 400000 400000 400000 400000 200000 200000 200000
Money after Repay 65000 60000 105000 400000 595000
Investor Payback 95000
Money left 500000 400000 300000 200000 100000 0 100000 200000 300000
So the enterprise breaks even after the end of 9th month. The entrepreneurs take 4Lakhs/month from month 5 to month 8 out of which 2 lakh per
month is saved to buy a land worth 10 lakh and set up a unit there.