Eco charger

LB 5207: ENTREPRENEURSHIP Green Energy Pte Ltd – Business Plan 1286510294005 Sridharan, Praveen(12438941) Rajendran, Vinoth(12439360) Subramanian, Kavin (12439082) Sankarapani, Saran(12439634) Rajaraman, Vijay Vir(12438863) Table of Contents TOC quot;
1-3quot;
Executive Summary: PAGEREF _Toc271976783 4Company Overview PAGEREF _Toc271976784 5Mission PAGEREF _Toc271976785 5Vision PAGEREF _Toc271976786 5The Management Team PAGEREF _Toc271976787 5Business Description PAGEREF _Toc271976788 6The Product/Service: PAGEREF _Toc271976789 6Industry Analysis PAGEREF _Toc271976790 6Potential Entrants PAGEREF _Toc271976791 7Substitutes PAGEREF _Toc271976792 8Suppliers PAGEREF _Toc271976793 8Buyers PAGEREF _Toc271976794 8Industry Rivalry PAGEREF _Toc271976795 8Market Plan PAGEREF _Toc271976796 9Marketing Strategy: PAGEREF _Toc271976797 10The Product: PAGEREF _Toc271976798 10Working: PAGEREF _Toc271976799 11Product Design: PAGEREF _Toc271976800 11Customer Reach (Place): PAGEREF _Toc271976801 11Phase 1: PAGEREF _Toc271976802 11Phase 2: PAGEREF _Toc271976803 12Pricing: PAGEREF _Toc271976804 12Promotion: PAGEREF _Toc271976805 12Operations Plan: PAGEREF _Toc271976806 13Assembling: PAGEREF _Toc271976807 13Manufacturing Costs: PAGEREF _Toc271976808 13Location and Facilities: PAGEREF _Toc271976809 13Staffing and Labour Force: PAGEREF _Toc271976810 14Time Line: PAGEREF _Toc271976811 14Phase 1: PAGEREF _Toc271976812 14Phase 2: PAGEREF _Toc271976813 15Phase 3: PAGEREF _Toc271976814 16Financial Plan PAGEREF _Toc271976815 16Break Even Analysis PAGEREF _Toc271976816 16Profit and Loss PAGEREF _Toc271976817 17Balance Sheet PAGEREF _Toc271976818 18Projected Cash Flow: PAGEREF _Toc271976819 19Ratio Analysis: PAGEREF _Toc271976820 20Risks and Assumptions: PAGEREF _Toc271976821 20Risks: PAGEREF _Toc271976822 20Assumptions: PAGEREF _Toc271976823 20Exit Strategy: PAGEREF _Toc271976824 21Conclusion: PAGEREF _Toc271976825 21 Executive Summary: In 1987, the UN’s World Commission on Environment and Development produced the Brundtland Report which defined sustainability as: “Development that meets the needs of the present generation without compromising the ability of future generations to meet their needs.quot;
We Green Energy Pte Ltd are trying to satisfy the need to have environment friendly power by utilizing light energy. Apple familiarized touch screen phones among people who were at that time comfortable using keypad phones, they created a need. We are into a similar quest where we try to bring in a new era of power generation which would not harm the current people and would be an asset for the future generations. The company itself is based in Singapore from where it intends to grow its business and expand to the neighboring regions. Green Energy pte ltd strategically targets its various B2B customers which are hypermarkets, electronic stores and retail stores their pricing, unique design, and innovation allowing it to be competitive in the market and build its brand name and create awareness leading to a growing and sustainable future. Eco-Charger, the core product of the company is an eco-friendly, on-the-go, and any time energy provider for electronic gadgets like MP3 players, iPod, Mobile phones, etc. We have planned the launch of Eco-Charger Maxi by the start of the third year which is an advanced product that would in future provide the necessary power for households. Moreover, the management team is well equipped with skills to steer the company into the right direction. We have experts in every field who have got enough experience under their belt and would handle situations better. The labors who we have hired are also trained who would be able to provide the necessary output, and we have also made sure that we don’t have dependency on any of the workers. We partners are investing S$ 100000 into the enterprise and with the required amount from the venture capitalists; we would be achieving our break even in 53280 units which is achieved by the end of second year. The fixed costs for establishing the units are estimated to be around S$ 151200. The assembling cost for the product along with the material cost would come to around S$ 3.2. The market price of the product is set at S$ 10.00. This would provide us the necessary margin for investment in R&D. We expect to win the market having the first mover advantage and with established strategies. We welcome venture capitalists with ROI achieved in 3 years. Company Overview Green Energy Pte Ltd is a company producing Eco friendly products relying basically on energy produced from photo sensitive panels. The company has a strong objective to produce and provide innovative, eco friendly products for the end customer’s complete satisfaction. The company also strives towards its stakeholders benefits. The company thoroughly understands the need of the end customer and obliges to cater products which are beneficial to the customer and the environment. The company is a Singapore based company and its business is carried throughout the country. The company looks forward to venture into other neighboring countries of Singapore like Malaysia, Thailand, and Indonesia.etc, in the times to come. Mission “To produce green energy products those do not harness the environment and harvest’s renewable source of energy” Vision “To be a world leader in producing high quality, eco friendly and highly innovative products supplementing the ecology” The Management Team Rajaraman, Vijay Vir-Head - Finance B.Com, MBA (Finance) Rajendran, Vinoth-Head - Operations B.Com, MBA (Finance) Sankarapani, Saran -Head – Marketing B.Tech (IT), MBA (Marketing) Sridharan, Praveen-Head - Supply Chain Management B.E. (Computer Science), MBA (International Business) Subramanian, Kavin-Head – Customer Relations B.Sc. Hospitality & Tourism Management, MBA (Marketing) Business Description Green Energy Pte ltd aims at satisfying various customers through its unique products, eco friendly motto and the innovations it develops in order to sustain competitiveness in the market. It also look forward to build its brand as a unique company providing eco friendly products which is the need of the hour backing the environment and creating awareness about the product’s need. The Product/Service: The company is into assembling green products supported by Eco-Charger as its core product. Eco-Charger helps charging of all portable electronic devices on the go in an eco friendly way consuming only the light energy. The Eco-Charger is targeted towards various customers through its unique product design, price and eco friendly nature. Industry Analysis The lifestyle of people is drastically undergoing changes. This emerging and prevailing lifestyle needs products that make people’s life simple and easy. People demand more convenience products. And with increase in awareness of environmental issues the demand for eco friendly products is expected to increase drastically. The industry consists of products using photo voltaic panels as the source of producing power. As electronic devices have become parts of people’s lifestyle and with the scarcity for fuel and coal in the near future. 458997235298Coal Depletion Source: National Geographic -231116-327804 Source: National Geographic The need for eco friendly and renewable source of energy has immensely increased. With the industry comprising players producing products which uses energy from photo sensitive panels, the industry is considered unique and high demand incurring in the near future. With a gap in the industry as players concern less about environmental friendly products and rage in competition concentrating much on the product attributes and less on the environmental issues. The Industry is best analysed using Porter’s five forces. Potential Entrants Potential Entrants means the competitors who may start manufacturing similar kind of products. Since our product is manufactured by just assembling the products that are already available in the market, anyone can enter in to the market by manufacturing similar kind of product. So, we recognize the threat of potential entrants as higher. -300127-10757140In order to compete and sustain in the market with the potential entrants/competitors we are planning to invest a huge amount of money in the R&D. By investing a huge sum of amount in the R&D we will be in the process of manufacturing chargers which can be used to charge the laptops and other similar kind of larger gadgets which need to be charged. So, by this way we will be able to sustain and compete with them in the market. Substitutes Substitutes in our case are the charging equipments that can be charged using other form of sources like wind energy and hydro energy. Since, these kind of chargers are not compactable and cannot be carried in the hands, where as our product can be carried anywhere in the hands. So, we believe that the threat of substitutes to be lower. Suppliers Suppliers are those companies that supply the products like the photo electric boards, circuits, batteries, panels, charging pins, wire and the screws. At the moment we get these products from Suntech solar enterprises, Wizlogix, ADELMO, ABC industries respectively. These products are easily available in the market and there are many suppliers supplying these kinds of products already. Since we have more suppliers in the market we believe that, the threat of suppliers to be lower. Buyers Buyers are the consumers are the customers who buy the product. We have a Business to Business model, which means supplying to other business operators like Seven Eleven, Fair Price, Cheers, and Mustafa. By keeping our products in their stores, people will be visiting their stores to buy our product and that might in-turn help these stores to sell their other products. The suppliers will welcome our product rather than causing trouble to our company because of the above mentioned reasons. So we believe that, the threat of buyers to be lower. Industry Rivalry Eco-Charger is a new product in the market and at the moment there are no competitors for our product in the Singapore market. We may have competitors entering in to the market in the future and we will be following the above mentioned strategies to sustain the competition from them. Porter’s Forces – Green Energy Pte Ltd (http://notesdesk.com/notes/strategy/porters-five-forces-model-porters-model/) Market Plan Our target market would be the people who are using gadgets like MP3 players, Mobile phones, etc. We would like to divide our target market into three segments. ,[object Object]

Office goers who are frustrated with the battery getting over soon.

Out bound travelers who would not be able to find the right socket for their chargeable devices.The number of people in the age group 15-64 account to approximately 75% of the total population in Singapore which is about 3,740,000 people, these are the people who we would be targeting (www.singstat.gov.sg/stats/themes/people/popinbrief2010.pdf). The teenagers are more prone to have their mobile phones and MP3 gadgets with them where ever they go. They would be disappointed if they find their devices run out of battery on the go. The office goers are people who would be constantly using their mobile phones. They cannot afford to have their mobile phones switched off or they might lose important calls. They should carry their charger to the office or instead, they can have our product which would also provide the same functionality but is eco friendly. People travelling abroad need to have an extra gadget to ensure that the other country’s socket would help charge their gadgets. With the introduction of our product, this won’t be necessary as it can be used to charge the gadgets anywhere in the world. Marketing Strategy: The marketing plan infuses not only the product, but also the brand name (company) into the mind of our customers’, effectiveness and ease of our products is heavily stressed upon and a strategic based marketing approach is followed. The company also believes in being proactive to the market conditions. The Product: Green Energy Pte Ltd is planning for market penetration with the product Eco-Charger. It is a portable and handy charger which uses renewable energy without causing any harm to the environment. The Eco-Charger Working: The Eco-Charger would start working once it is exposed to light. The main source of light being sun, it is also renewable. Once the light beam falls on the panel, the battery gets charged and the stored power can be retrieved with the help of pins. Product Design: The solar panel is available in various sizes and can be used for differentiated purposes. The panel and the battery are connected with the help of a circuit board. This is a normal one that is already available in the market. The Battery is a normal mobile phone battery that would provide 12V power. The entire setup is then placed inside a case made of recycled plastic. We have chose plastic as the material doesn’t conduct and would help prevent external shocks to the circuit. Customer Reach (Place): We would segregate our customer reach into two phases, 1 and 2. Phase 1: The first phase would consist of the time from the inception of the company to 2 years. In this time we would be targeting the B2B customers and are planning to make the product available in 7-Eleven, Cheers, Mustafa and FairPrice. 28646923076 5097780182245 3486785219075 -15875181610 FairPrice stores Singapore (http://www.fairprice.com.sg/wcsstore/FairPrice/images/corpcomms/StorLocSingaporeMap.jpg) Phase 2: Phase 2 would be when the initial 2 years are over. Now with the established brand name, we would like to target the customers directly. We would be installing outlets at the places where people frequent like MRT stations, Bus Interchanges, Changi Airport, Hubs, etc. y doing so, we would be able to establish our presence and would be able to come up with new products and go to the consumer directly. Pricing: Whatever we do, without the right pricing strategy, the product would not reach the people. We as entrepreneurs are interested in making money as well as making sure that we create change by making people go green with an environment friendly product. For this we don’t want to price the product too high, we want to price it affordably. We would first introduce the product with a price of S$ 10.00. This will help us reach the customers. We would also make profits as we have a healthy profit margin of more than 200%. Since there are no similar products at the time in the market, we can enjoy the whole market. We would also follow a universal price policy where we would make the product available at the same price in all the outlets. Promotion: We are planning to rope in environmentalists and big names from the environment ministry for our promotion. We would discuss with Singapore Environment Council (SEC) Chairman Ms. Isabella Loh for promoting the product. We would also like to discuss our product with Dr Amy Khor, Senior Parliamentary Secretary, Ministry Of The Environment And Water Resources for helping us in bringing this product to the Singapore people. We would also plan campaigns where we would have Lin Peisen from Raffles Junior College (Young Environmentalist Awardee) talk to people for going green and would present such a product. This would increase our sales and would help us reach people better in terms of Brand name and as a company. Also, we would bundle the products and provide them at an attractive price. We would provide the bundle of two of our products at S$ 15.00 and three at S$ 20.00. This would not only help us in achieving better sales but also would help us in reaching people faster. Operations Plan: The operations plan describes the ways of achieving milestones and explains why or what action is being performed to attain the required targets in the given operational period. We would be majorly interested in the value chain activities, the budget allocation and the location and the timeline when the products are rolled out. Assembling: We are interested in assembling our new product with the materials that are already available in the market. We would procure the necessary goods and would assemble them in an assembling unit with the help of man power and roll out the goods in the first phase. Once we have achieved the required profits, we would invest on automating the assembling process and also in reducing the dependency on man power. The investment in machines would provide better output and as well as better quality. We are planning to have our company ISO 9001 certified to help in better branding and also having quality management. The basic requirements in having the company ISO 9001 certified like better management, chartered processes, reviewed value chain, etc are met and are audited. Manufacturing Costs: Photo Voltaic PanelS$ 0.25Circuit BoardS$ 0.20Battery ChargerS$ 1.00WiresS$ 0.05Recyclable plastic casingS$ 1.00Other costsS$ 0.70Total cost of Eco-ChargerS$ 3.20 We are planning to procure the materials from more than one supplier to diversify the risk. We would be having an assembly unit and a warehouse in the same place and would perform the operations from that place. Location and Facilities: We require a place of 6000 Sq ft for our assembling plant and warehouse. We intend to operate the business from Jurong East. The main reason being the low cost of rentals and also the presence of large number of industries and it would help us to receive the goods from our suppliers. Its proximity to Jurong Port helps us to get the goods directly from the harbour without any hindrance. It is also necessary that we have a loading and un-loading bay for the movement of goods. Staffing and Labour Force: Assembling is labour intense work. We are planning to hire five people from local market for the assembling purpose. Proper training would be provided to them so that they handle the equipments right. These people would be blue collar workers and all the loading, un-loading and the delivery of goods to outlets would be carried out by these people. We people who have invested in the business would perform the white collar jobs like inventory control, marketing, order management, etc. Time Line: It is very important to know the time line when the products would be introduced into the market. In fact this is one of the biggest reasons behind success of companies. We have divided our entry strategy into various time lines. Phase 1: In phase 1 we would be concentrating on obtaining the required approvals and would be setting up the base for our entry. We would be interested in selecting our suppliers, signing contracts with our product dealers and also hire people for work. We expect this to happen for one half of the first year. We would also have a warehouse setup and everything ready for production. Time Line – Green Energy Pte Ltd Phase 2: This is the phase we will be rolling out our first product. As ours is assembling business, we would start to produce finished goods from day 1. We would be making these products available in the market. We intend to penetrate the market as much possible with promotion and ads. We would be looking at establishing a good relationship with our stakeholders and to promote business. The second half of the first year and the second year are considered in the second phase. Principle behind Eco-Charger Maxi Phase 3: This is the phase we expect competitors. Now that we would be established as a company, we would be investing in innovation and development of the products to make sure we stay afloat in the market. We would introduce a new product Eco-Charger Maxi for house hold purposes. The Eco-Charger Maxi is an advanced product where we would store the Sun’s energy in a battery which is currently used as backup for house power. With the help of an Inverter we can use the battery’s energy to power our house needs. Though this may not be of great use in the Singapore market, it would be of great use in countries like India, Malaysia, Indonesia and Thailand where power supply is still a problem. Financial Plan Eco-Charger has an initial Owner’s Equity of S$ 100,000. This is utilized for the expenses required to start up the company and cash payments for the first year. With the anticipated sales the company is expected to make a loss in the first year and profit thereafter. For the first year the fixed costs are estimated to be 151200. In the second and third year the company intends to launch an extension of the existing product, due to this the fixed cost changes. The manufacturing of the product is at S$3.2 per unit including logistics and transport. Break Even Analysis In this Break even analysis, it is clearly shown that there are no profits found in the first year and then in the upcoming years we have found profits. Sales RevenueProfitBreak Even Point Profit and Loss The company makes a loss for the first year and makes profit from the mid 2012 onwards. The first year goes into a loss due to market penetration strategy. In the second year the company made a profit and there we have shown the breakeven point due to the skimming strategy. With the commencement of an extended product in the end of second year, the company makes profit during the end of third year. Pay rolls have been consistently increased and it has made loss in the first year and then after employing many workers, the wages have been in control so that we have found profits at the end of third year. This profit and loss statement clearly shows that during the first year there were no investments in new products. In the following years the major reason for the profit will be the investment in developing the new products. Rent and insurance will be constant throughout the year. Pro Forma Profit and Loss201120122013Sales232000415200720000Cost of Sales74240132864216000Gross Profit on Sales157760282336504000ExpensesPayroll360004200060000Marketing and Advertising350003600040800Rent720007200073000Insurance360003600036000Vehicles and Transportation180001800025200Electricity and Telephone720072009000Depreciation-1660016600Maintenance240024003000Interest--10000Petty Cash120012001500Compensation to partners100001000010000Investment in new product033400153400Total Operating Expenses207800274800438500Operating Income(60040)753665500Bad Debts340060007000Profit Before Tax(63440)153658500Taxes Incurred0122.884680Net Profit141453820 Balance Sheet The expected projected balance sheets for the three years are as follows: Pro Forma Balance Sheet201120122013AssetsNon Current AssetsFurniture 500040003000Equipment1000800600Computer700056004200Vehicle700005600042000Current AssetsAccounts Receivable116002076036000Investment 33600153400Cash45672238579394Total Assets140272144617212594LiabilityDebentures 100000100000110000Accounts Payable3712664310800Owners’ EquityCapital100,0003656037974Profit/ Loss(63440)141453820Total Liability140272144617212594 Projected Cash Flow: I n the first year the company does not face any short term cash flow problems in spite of operating at a loss. This cash Flow clearly shows how much cash is spent on each activity such as operating, investing and financing. Cash Flow Statement for the year ending 2011ParticularsAmount (in S$)Cash Flow from Operating activitiesCash received from customers232000Cash paid to Suppliers-74240Other Operating expenses-207800Total operating expenses-50040Cash Flow from investing activitiesPurchase of furniture-5000Purchase of Equipment-1000Purchase of Computer-7000Purchase of Vehicle-70000Total investing activities-83000Cash Flow from financing activitiesIssue of Debentures100000Redemption of dividend0Interest paid0Total financing activities100000Net cash Flow-33040Cash and cash equivalents at the beginning100000Cash and cash equivalents at the end66960 Ratio Analysis: The ratios calculated below shows us that the company is doing well. ,[object Object],Current ratio = current assets / current liabilities = 57272 / 3712 = 15.42 Liquid ratio = liquid assets / current liabilities = 15.42 ,[object Object]

= 100000 / 100000 = 1:1Risks and Assumptions: Risks: It is very essential to discuss the risks that we might encounter before entering into a business. We have come up with the possible problems that may arise. ,[object Object]

Copying is possible – Since it’s an electronic good, the chances of seeing a duplicate product out are possible and that moreover the time taken for duplication would be relatively less.

Creating a need – We are providing a solution to an existing problem and people may or may not receive the product very well. They have substitutes like charging the device for the whole night before and may not want our product. Assumptions: There are some assumptions made from our side for establishing the product. ,[object Object]

The approvals that are necessary for setting up the business are got without any hindrance and there is no capital invested in doing so.

There are no accidents happening in the period where we would start and run the business.Exit Strategy: Planning to exit at the right time before starting the business is wise. We as entrepreneurs have come up with an innovative and an out of box product which is not available in the market. We possibly enjoy the whole market share for the first few years and would be interested in launching new products down the lane. Though we expect competitors to arise in the coming years, with our proactive measures, we are sure to be ahead of them and to stay ahead in the market. With such a booming business in hand, we would be considering to exit from the industry only when there are unexpected risks happening and we have no control over them. For the next few years we are sure not to exit the company. Conclusion: Our beliefs and strategies would make it clear that we are a people centred company. We would strive to make every effort in helping people lives become easier with environment friendly tools. With assured returns and an attractive market round the world, there are endless opportunities for investment in going green. Innovation and development being the main pillars behind our company’s evolution, we intend to reap the profits as projected and would be more interested in diversifying our portfolio in the green areas into large scale solar energy production and wind energy. We would resort to other forms of renewable energy and in ten years from now, we see us as a company able to provide complete energy solutions which would be more eco-friendly, un-harming and renewable.

Eco charger

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