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PROJECT HINATION 
T H E I N D I A S W E D E N I N N O VAT I O N S ’ A C C E L E R AT O R PROGRAM FOR 
“ B U S I N E S S S T R AT E G Y D E V E L O PM E N T ” 
30TH AUGUST, 2014 – WESCHOOL MUMBAI 
TEAM HINATION WESCHOOL - 30TH AUGUST, 2014 1
About HiNation 
HiNation®, founded in 2008 with the aim of providing 
clean, accessible energy to outdoor enthusiasts & people 
in developing countries. 
HiLight is a solar portable device that works on, 
a click of the button to charge 
- mobile devices, 
- cameras, 
- iPads and 
- GPS. 
Offering a bright LED light. 
TEAM HINATION WESCHOOL - 30TH AUGUST, 2014 2
New International Market Entry Strategy 
Set-up manufacturing & distribution base for HiNation 
entry into India. 
TEAM HINATION WESCHOOL - 30TH AUGUST, 2014 3
Industry Insights 
• Both International 
& Domestic 
(need of the hour) 
Component 
Sourcing 
Manufacturing 
Options • Go-to-Market 
• In-house 
• Outsourcing 
• Assembly 
(CKD & SKD) 
Business Model 
Finished 
Products 
TEAM HINATION WESCHOOL - 30TH AUGUST, 2014 4
Industry Distribution Practices 
Manufacturer 
• Go-to-Market Business Model 
Intermediary 
• Corporates 
• NGO’s 
• Individual Customers 
End user 
• Consumers 
TEAM HINATION WESCHOOL - 30TH AUGUST, 2014 5
Financial Model 
Particulars Amount (INR) Category 
Estimated Price/Unit 2000 Solar portable device 
Revenue* 20,000,000 All inclusive. 
COGS 16,000,000 Includes taxes and all freight charges, 
insurance etc. 
Other Expenses 1,000,000 Plant maintenance and sales 
expenses 
Gross Profit 3,000,000 To Manufacturer. 
6 
*Estimated sales 10000 units pa 
TEAM HINATION WESCHOOL - 30TH AUGUST, 2014
Unit Cost 
Particulars Percentage Cost/unit (INR) 
Components and parts 35 700 
Assembling and setup cost 20 400 
Shipping/Logistics 10 200 
Packaging/Repackaging 10 200 
Other Expenses 10 200 
Margin 15 300 
Total price 100 2000 
TEAM HINATION WESCHOOL - 30TH AUGUST, 2014 7
Market Insights 
Estimated sales- 10000 pieces pa. 
Category distribution through CSR activity. 
Target audience price sensitive - Rural market. 
Predominantly a B2B market 
Urban market- at a very nascent stage. 
Very low individual direct buying by end user. 
Maintenance-key requirement of end user. 
2 % growth in 
annually. 
Maintenance over 
replacement 
TEAM HINATION WESCHOOL - 30TH AUGUST, 2014 8
Market Insights (cont’d) 
Corporates allocate approx. 8 -10% of CSR funds for rural 
lighting. 
Blue-chip companies use backward integration effectively 
to optimize their CSR activity. 
PSU’s & other corporates outsource from manufacturers. 
TEAM HINATION WESCHOOL - 30TH AUGUST, 2014 9
Regulatory Insights 
Companies Act 2013 mandates profitable businesses to allocate 
2% of their profits towards CSR. 
 Estimated release of approx. INR 22K cr for CSR activities 
Government offers 40% subsidy to manufacturers subject to 
fulfilling norms. 
TEAM HINATION WESCHOOL - 30TH AUGUST, 2014 10
Consumer Insights 
• Category driven by Regional players 
• Target market expectation - “Free of cost” 
• After Sales Service - nearly non-existent. 
• Largely driven by end users - “self-fixing” 
• Quality Standards of end product varies. 
TEAM HINATION WESCHOOL - 30TH AUGUST, 2014 11
Competitor Insights 
Point of reference Green Light Planet Om Energy Metal-works Tantra 
Sales 8000 units 500 units 300 units 300 units 
Price (INR) 650-2300 2000 1000 2200 
Markets Present Orissa, Jharkhand, 
UP & Bihar 
Maharashtra & 
Gujarat 
Karnataka Maharashtra 
Production SKD from China, 
assembled in India. 
Yes Yes Yes 
Dealer Network Own Own Supplier’s Supplier’s & Own. 
Exports No Africa Africa SAARC & Africa. 
TEAM HINATION WESCHOOL - 30TH AUGUST, 2014 12
Options…. 
INDIA - DOMESTIC MARKET INDIA - EXPORT HUB 
 HiNation to identify manufacturers. 
 Tie up to leverage on CSR mandate. 
 e-commerce site - Urban India Penetration. 
 Business Model: 
High Volume, Low Margin – B2B markets. 
Low Volume, High Margin – Urban markets. 
 Impact: 
Prospect of Scalability in future. 
 HiNation to Set-up a base in India. 
 Identify manufacturers in SEZ with accessibility to ports. 
 Export to Africa, SAARC & ASEAN countries. 
 Business Model: 
High volume, Low margin. 
 Impact: 
Prospect of becoming a Global Player. 
TEAM HINATION WESCHOOL - 30TH AUGUST, 2014 13
THANK YOU 
TEAM HINATION WESCHOOL - 30TH AUGUST, 2014 14
Team HiNation-WeSchool 
Ashish K Nainan 
Gaurav Verma 
Mayank Jain 
Swapneel Raut 
TEAM HINATION WESCHOOL - 30TH AUGUST, 2014 15

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New international market entry strategy for solar products

  • 1. PROJECT HINATION T H E I N D I A S W E D E N I N N O VAT I O N S ’ A C C E L E R AT O R PROGRAM FOR “ B U S I N E S S S T R AT E G Y D E V E L O PM E N T ” 30TH AUGUST, 2014 – WESCHOOL MUMBAI TEAM HINATION WESCHOOL - 30TH AUGUST, 2014 1
  • 2. About HiNation HiNation®, founded in 2008 with the aim of providing clean, accessible energy to outdoor enthusiasts & people in developing countries. HiLight is a solar portable device that works on, a click of the button to charge - mobile devices, - cameras, - iPads and - GPS. Offering a bright LED light. TEAM HINATION WESCHOOL - 30TH AUGUST, 2014 2
  • 3. New International Market Entry Strategy Set-up manufacturing & distribution base for HiNation entry into India. TEAM HINATION WESCHOOL - 30TH AUGUST, 2014 3
  • 4. Industry Insights • Both International & Domestic (need of the hour) Component Sourcing Manufacturing Options • Go-to-Market • In-house • Outsourcing • Assembly (CKD & SKD) Business Model Finished Products TEAM HINATION WESCHOOL - 30TH AUGUST, 2014 4
  • 5. Industry Distribution Practices Manufacturer • Go-to-Market Business Model Intermediary • Corporates • NGO’s • Individual Customers End user • Consumers TEAM HINATION WESCHOOL - 30TH AUGUST, 2014 5
  • 6. Financial Model Particulars Amount (INR) Category Estimated Price/Unit 2000 Solar portable device Revenue* 20,000,000 All inclusive. COGS 16,000,000 Includes taxes and all freight charges, insurance etc. Other Expenses 1,000,000 Plant maintenance and sales expenses Gross Profit 3,000,000 To Manufacturer. 6 *Estimated sales 10000 units pa TEAM HINATION WESCHOOL - 30TH AUGUST, 2014
  • 7. Unit Cost Particulars Percentage Cost/unit (INR) Components and parts 35 700 Assembling and setup cost 20 400 Shipping/Logistics 10 200 Packaging/Repackaging 10 200 Other Expenses 10 200 Margin 15 300 Total price 100 2000 TEAM HINATION WESCHOOL - 30TH AUGUST, 2014 7
  • 8. Market Insights Estimated sales- 10000 pieces pa. Category distribution through CSR activity. Target audience price sensitive - Rural market. Predominantly a B2B market Urban market- at a very nascent stage. Very low individual direct buying by end user. Maintenance-key requirement of end user. 2 % growth in annually. Maintenance over replacement TEAM HINATION WESCHOOL - 30TH AUGUST, 2014 8
  • 9. Market Insights (cont’d) Corporates allocate approx. 8 -10% of CSR funds for rural lighting. Blue-chip companies use backward integration effectively to optimize their CSR activity. PSU’s & other corporates outsource from manufacturers. TEAM HINATION WESCHOOL - 30TH AUGUST, 2014 9
  • 10. Regulatory Insights Companies Act 2013 mandates profitable businesses to allocate 2% of their profits towards CSR.  Estimated release of approx. INR 22K cr for CSR activities Government offers 40% subsidy to manufacturers subject to fulfilling norms. TEAM HINATION WESCHOOL - 30TH AUGUST, 2014 10
  • 11. Consumer Insights • Category driven by Regional players • Target market expectation - “Free of cost” • After Sales Service - nearly non-existent. • Largely driven by end users - “self-fixing” • Quality Standards of end product varies. TEAM HINATION WESCHOOL - 30TH AUGUST, 2014 11
  • 12. Competitor Insights Point of reference Green Light Planet Om Energy Metal-works Tantra Sales 8000 units 500 units 300 units 300 units Price (INR) 650-2300 2000 1000 2200 Markets Present Orissa, Jharkhand, UP & Bihar Maharashtra & Gujarat Karnataka Maharashtra Production SKD from China, assembled in India. Yes Yes Yes Dealer Network Own Own Supplier’s Supplier’s & Own. Exports No Africa Africa SAARC & Africa. TEAM HINATION WESCHOOL - 30TH AUGUST, 2014 12
  • 13. Options…. INDIA - DOMESTIC MARKET INDIA - EXPORT HUB  HiNation to identify manufacturers.  Tie up to leverage on CSR mandate.  e-commerce site - Urban India Penetration.  Business Model: High Volume, Low Margin – B2B markets. Low Volume, High Margin – Urban markets.  Impact: Prospect of Scalability in future.  HiNation to Set-up a base in India.  Identify manufacturers in SEZ with accessibility to ports.  Export to Africa, SAARC & ASEAN countries.  Business Model: High volume, Low margin.  Impact: Prospect of becoming a Global Player. TEAM HINATION WESCHOOL - 30TH AUGUST, 2014 13
  • 14. THANK YOU TEAM HINATION WESCHOOL - 30TH AUGUST, 2014 14
  • 15. Team HiNation-WeSchool Ashish K Nainan Gaurav Verma Mayank Jain Swapneel Raut TEAM HINATION WESCHOOL - 30TH AUGUST, 2014 15