The document discusses strategies for HiNation, a Swedish company that produces portable solar devices, to enter the Indian market. It considers setting up manufacturing and distribution in India to target the rural market through corporate social responsibility initiatives. The financial model estimates selling 10,000 units annually at 2000 INR each, with a gross profit of 3 million INR. It analyzes industry practices, regulations, competitors and provides two options - focusing on the domestic Indian market or establishing India as an export hub.

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
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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.
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3. New International Market Entry Strategy
Set-up manufacturing & distribution base for HiNation
entry into India.
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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
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5. Industry Distribution Practices
Manufacturer
• Go-to-Market Business Model
Intermediary
• Corporates
• NGO’s
• Individual Customers
End user
• Consumers
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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
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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
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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
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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.
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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.
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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.
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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.
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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.
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14. THANK YOU
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15. Team HiNation-WeSchool
Ashish K Nainan
Gaurav Verma
Mayank Jain
Swapneel Raut
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