Saarthi Project Report for MMTW
- 1. Shop No 1, Talab Road, Near Farid Park, Opp MCF, Old Faridabad (Haryana)
- 2. Project Report by: Saarthi Business & Knowledge Solutions Pvt Ltd, Faridabad A) Understanding of the 2 Wheeler Market in India The two wheeler segment has played an important role in giving a push to the automobile industry in India. In fact, the production, sales and exports of the two wheelers is a fair indication of the growing importance that it enjoys in this country's manufacturing economy. An overview of the two wheeler industry makes this clear that the two wheelers are among the most sought after automobiles in India for some time and the trend is likely to stay for a while. The economic growth, need for better conveyance and gradually improving road infrastructure coupled with better credit and financing options, have acted as a major catalyst in encouraging the growth and development of the two wheeler segment in India. Further, the new and improved features on the two wheelers, their stylish and trendy looks and a rage with the country's youth who form a substantial influence in determining the consumer behaviour have ensured that the two wheelers remain on top of the automobile industry's agenda in India. The two-wheeler market in India is the biggest contributor to the automobile industry with a size of Rs.100,000 million. The two-wheeler market in India comprises of 3 types of vehicles, namely motorcycles, scooters, and mopeds. Foreign collaborations have been playing a major role in the growth of the Indian two-wheeler market, and most of them are Japanese firms. Foreign firms have already taken initiatives to own their two-wheeler subsidiaries in India. Among the 3 segments of the Indian two wheeler market, major growth trends have been seen in the motorcycle segment over the last four to five years. One good reason for such increase in demand for motorcycles is due to its resistance and balance even on bad road conditions. Most of the rural areas in India do not have decent roads and hence the need for good, shock-resistant, and steady two-wheelers such as motorcycles had been felt. Some of the major players in the Indian motorcycles market are Hero Honda CBZ, Bajaj Pulsar, TVS and Apache. Other brands include Splendor, Passion, Fiero, Victor, Star City, Boxer, CD Dawn, Karizma, Caliber, etc. Having classified the motorcycle brands into economy, executive, and premium segments, Bajaj stands as the leader in the economy segment, Hero Honda leads in the executive segment, and there is a competition in the premium segment between Hero Honda and Bajaj. The following are the main factors that affect two-wheeler sales in India: 1. Increase in credit and financing for auto vehicles - Two-wheeler loans and financing has been on the rise. 2. Increase in consumer's salary - Due to opportunities offered by multinationals the disposable incomes of salaried individuals have increase manifold.
- 3. 3. Constant petrol prices - Today, the government of India has been working on reducing subsidies on kerosene and diesel which will keep petrol prices at more or less the same level. 4. Delay in initiation of Mass Transport System - Probably a future threat to the two-wheeler market, the implementation of the mass transport system has been delayed. 5. However, the two-wheeler market in India is a fast growing market due to its technological advancements in product manufacturing and emphasis on design innovation. India is on every major global automobile player's roadmap, and it isn't hard to see why: 1. India is the 2nd largest two wheeler market in the world 2. 4th largest commercial vehicle market in the world 3. 11th largest passenger car market in the world and is expected to become the 7th largest by 2016 Two years after entering into the two wheeler space, Mahindra & Mahindra (M&M) has very recent made an entry into the serious end of the two wheelers market, motorcycles. "It was a dream for me to enter into the motorcycle market, and here we are today," said an exuberant Mr Anand Mahindra, vice-chairman and managing director of M&M. While Hero Honda, Bajaj Auto and TVS Motor remain the leading players in terms of sales and popularity of their two wheelers, Mahindra 2 Wheelers is aggressive in its Marketing approach and expansion plan to take Market Share of prominent existing 2 wheelers. B) 2 Wheelers Key Dealers in Faridabad, Haryana Tayal Automobile, Faridabad Old, NCR-Faridabad TVS Bike Dealers Address: B-433-436, Nehru Ground, Faridabad Old , Faridabad- 121001, Haryana Landmark: Near Neelam Bata Road
- 4. Sehgal Auto, Faridabad Old, NCR-Faridabad Hero Honda Bike Dealers Address: 18/2, Mathura Road, Faridabad Old , Faridabad- 121007, Haryana Landmark: Opposite Ajronda Bus Stop TC Saluja And Sons Private Limited, NIT, NCR-Faridabad Bajaj Bike Dealers Address: 63, Neelam Bata Road, NIT , Faridabad- 121001, Haryana Landmark: Near Opposite Nit-1 Northern Motors, Neelam Bata Raod, NCR-Faridabad Mahindra Bike Dealers Address: 1A-260, NIT, Neelam Bata Raod , Faridabad- 121001, Haryana Landmark: Near LIC Building Bareja Automobile Private Limited, Sector20, NCR-Faridabad TVS Bike Dealers Address: Sushma Place, Sector20 , Faridabad- 121001, Haryana Landmark: Near - Ajronda Chowk Green Automobiles Pvt. Ltd. in Faridabad Yamaha Bikes Address: Railway Road Faridabad Landmark: Ahead SBI Priyanshi Suzuki in Faridabad Suzuki Scooty Address: Bp-47, Bhadana Cplx, NIT, Nr Synicate Bank, Neelam Bata Rd, Faridabad-121001 Landmark: Near Delite Hotel Rattan Motors in Faridabad, Delhi/NCR LML Address: NIT, Hardware Rd, Faridabad, Faridabad - 121001 C) Saarthi Business & Knowledge Solutions Pvt Ltd with MMTW Saarthi Business & Knowledge Solutions Private Limited is a creation of Group of Experts with rich experience of almost 70 years put together by the Team with key learning from more than 1 lac Customers, more than 5000 Dealers/Distributors/Retailers, 500 Industry
- 5. Professionals and almost 20 Top Leaders who are experts in their areas of operations. The Inception of Saarthi took place sometimes in 1996 with the Vision to make it a multi business solution firm that creates business and leaders of tomorrow when its Founder & Managing Director Mr Rattan Singh BE, PGDMM, PGDBM gave it a real shape on August 15th 2010. To impart greater focus and strength to Saarthi is a Team of Professionals and Experts making a “DREAM COME TRUE“. Saarthi Business & Knowledge Solutions Pvt Ltd is also envisioning the association with MMTW to partner progress and build up strong customer relationships to see that Mahindra Products are in every house and we cater to the demand of rural, semi urban and urban customers of Faridabad and surrounding markets of Ballabhgarh / Palwal. Key strategy to our Success would be to provide Quality Product, Best Product Support and Timely Delivery to our customers giving them Value for Money for 3 S Management. Our profile of customers would be picked up strategically be it females, males, youngsters, office goers, etc who would be attracted with top marketing and promotional strategies and with building strong bonds. We intend to undertake lot of Marketing activities – Events, Road shows, Melas, Exhibiting our Products in Malls and key strategic locations. We intend to get at least 1800 customers during first year of our operations and gradually increase them with our efforts and support of MMTW management. Our Vision & Mission Vision To become a “Global Business Connect” company providing “Qualitative and Timely Solutions” for its shareholders, customers, partners and employees thereby ensuring high degree of perfection, reliability and value for money. Mission Saarthi as a Business Connect company takes pride to Partner Globally with individual and corporate customers in providing strategic solutions for their business needs so that they
- 6. can significantly make their presence and increase their performance capability towards Leadership. We inspire, train and provide tools for change and growth of individuals and organizations throughout the world to significantly increase their performance for being Great Vibrant Leaders. At Saarthi we feel proud of taking ownership and being accountable of whatever responsibility we undertake. We strongly believe in team work and our work process by which we stimulate growth and excel in our endeavors. Our Core Values Ethics At Saarthi, we demand of our self and others for the highest ethical standards and also stand committed on our processes and working style that are of highest quality. Performance Striving for continuous improvement in performance, measuring results very carefully and ensuring sincerity is not compromised at Saarthi. Innovation Innovation and creativity is the key to improve our health and sustaining growth & profitability. Customer and Market Focus Customer is the reason for our existence. We at Saarthi stand deeply committed to meet the needs of our customers by constantly focusing on customer satisfaction and market reach which comes from our experience in Customer Care, Marketing Services, Market Research and Marketing Communications. We provide business connect, solutions, technology and marketing services to help our customers achieve their business goals.
- 7. Team Work Working together works to meet the changing needs of our customers is the approach at Saarthi We are a values-driven company and our five core values are duly committed, signed and followed by each member of our Saarthi Team. D) Journey for Saarthi with MMTW Saarthi Business & Knowledge Solutions Pvt Ltd proposes site on rent for dealership – showroom, spare parts and workshop measuring 23ft x 100 ft approx with height of approx 12.5ft. Showroom display will be given from front while at centre would be Spare Parts and Office Space on top of Parts section on mezzanine construction done with wood. On the rear of the showroom with entry from side will be Workshop. Saarthi’s Proposed site at Old Faridabad for MM 2Wheeler Showroom & Customer Support Towards Old Towards Sec 19 & Mathura Road Towards Sec 16 22 x 100 ft space Workshop Entrance from side Location: Near Farid Park Opp. MCF Office Old Faridabad Our initial costs will include dealership rental, interior fabrication, all essential office equipments, statutory costs and cost towards Façade / Hoardings / Signage. The inventory of vehicles will form the major part of our investment as per the policy of Mahindra 2 Wheelers. The office equipment will include computers, printer-copier, stationary and office furniture, etc. Any other corporate norms would be followed as per company policy. Advertisement would play an important role that would require expense for the initial period to catch with clientage thru local newspaper advertising, advertising on local cable network, Road shows, Events, Display in Malls/Strategic locations, Radio, etc
- 8. E) Saarthi dealing by its MD with MMTW Saarthi Business & Knowledge Solutions Pvt Ltd is a registered firm with Mr Rattan Singh as its Founder & Managing Director who will be dealing in all business aspects directly with MMTW whose decision will be accepted by all other Directors of the firm – undertaking to this affect will be given if required. To support Saarthi business, other Directors would keenly support to improve the business in marketing, sales and profitability for the firm and would actively participate. Saarthi Business & Knowledge Solutions Private Limited in India Is a one stop “Business Connect” Globally that any Corporate can rely & trust upon. Our Business Solutions are committed by our team in respect to Quality, Time, Perfection and Reliability. At Saarthi, we specialize in Automobiles, Finance, Exports, Green House Gas Emissions Solutions, and Trainings & Management Consultancy that does Business Connect Globally. Our Business Success formula is: Plan+Connect+Strategize+Implement=Effective business results Managing Director Mr Rattan Singh, BE, PGDMM, PGDBM is a Founder & Managing Director of Saarthi Business & Knowledge Solutions Pvt Ltd. Born on December 24th 1960 into an educative family, he strongly believes in family values where education, sincerity, honesty to work, building & retaining relationship with others are some of the prime principles. With the objective, to recreate by forging new identity, one that commands attention & makes a Winning Leader, Mr Rattan Singh believes that Success & Failures are caused more by mental attitudes, than by mental capacities. And hence one must be a "Volcano", not just the part of landscape as a mountain. Mr Singh has more than 25 years Sales, Marketing, Distribution & Networking, Commercial, Exports & Logistics experience in Automobile sector of Domestic (Rural & Urban) & International Market. He has acquired Leadership & Experience from his association with top Indian Corporate Houses – Escorts Ltd, Tata Motors Ltd and Hindustan Motors Ltd, at key and strategic positions and responsibilities. He has been responsible for following Product portfolio: Commercial Vehicles, Passenger Cars, Tractors, Trucks, Cranes, Forklifts, Mobile Vans, Designing & Customizing Special Body on Heavy Vehicles, Armored Vehicles & Automobile Parts for After Market. Professional achievements of Mr. Rattan Singh: Successfully developed Distribution Network for market penetration Successful Product Launches that created impact in market Expertise in trainings, nurturing & developing team as Leaders Ability to exploit new business segments for its growth Sound understanding & implementation of ISO/TS 16949 systems
- 9. F) About MMTW Products & Services Saarthi will display in its showrooms the entire range of Mahindra 2 Wheelers Products. Saarthi will aggressively undertake Market activities to promote the product gaining substantial Market Share. Apart from Private customers across Faridabad and nearby towns, Saarthi would focus on Institutional and government customers including Police forces. Saarthi would be proactive in providing services to its customers and ensure complete satisfaction which would be measured thru CSI on scale 1-10 and intends to attain above 8.5 level. Saarthi would educate its customers to go for Services at our workshop and avail of its benefits. Saarthi would be in regular contact with its customers and other 2 wheeler customers by building strong ethical relations by sending them greetings, product information and service reminders from time to time. G) About Market Segmentation The customer preferences have changed in favour of motorcycles and gearless scootys that score higher on technology, fuel economy and aesthetic appeal, at the expense of metal- bodied geared scooters and mopeds. These changes in customer preferences have had an impact on fortunes of the players. The erstwhile leaders have either perished or have significantly lost market share, whereas new leaders have emerged. Rising income levels, reducing excise duties, higher loan tenure and loan-to-value offered by the financing companies have all fuelled the growth of two-wheeler demand. Besides, mounting traffic chaos and limited parking space has also increased the demand for two-wheelers from households that can afford or actually do own a car. Furthermore, with increasing women working population, changing social philosophy and broad-mindedness, the penetration of two-wheelers in target population has increased significantly during last one decade especially in urban areas. However rural areas and smaller towns still remains considerably underpenetrated market. CARE Research foresees rising income levels combined with increase in finance penetration in rural areas and smaller towns, the demand for two-wheelers will grow swiftly in short to medium term period. Saarthi Understands the Characteristics of consumer behaviour as: 1.Consumer behavior is dynamic, 2. Consumer behavior involves interactions interactions, 3. Consumer behavior involves exchange,
- 10. Saarthi Business & Knowledge Solutions Pvt Ltd visualizes the Market as divided into: New first time buyers – catching them raw at school level when they are about to reach the driving age and obtaining license. These buyers want something secured, stylish and comfortable in driving and operations Young buyers – looking for style, latest models, power, image, powerful and fashionable Cost Conscious buyers – these are balanced and matured customers who look for economical operations and maintenance Repeat buyers – want to change due to new model availability or previous becoming uneconomical or out of operation Rural and Semi-Urban buyers – market always available for young and old, first time user or repeat buyer and also depends upon distance/purpose to travel Corporate buyers – wants speed to reach destination, wants to deliver Fast food within committed time H) Selling Strategy & Business Plan of Saarthi With the Sales & Marketing experience of Saarthi Directors into Marketing, Sales, Finance and Customer Support: 1. Reach the existing 2 Wheeler users & Reach the potential buyers with focused and planned approach – Sector wise, Area wise and Market wise 2. Focus on young, old, professional, corporate and institutional buyers 3. Aggressive sales approach – target driven trained team to focus 4. 3 S Management concept works well with equal participation for all 5. Easy and hassle free availability of Finance for customers 6. Sales Process – SPADE to be followed religiously on regular basis and reviewed 7. Customer CARE to be 100% for both pre sales and after sales 8. Customer Meets / Trainings to be conducted 9. Participation in Melas, Exhibitions, Display in Malls and Strategic locations, Road shows, Road Races, etc to be undertaken Business Plan (Est) Year 1 Year 2 Year 3 Sales (Vehicles) 1800 2500 3600 Services (Jobs) 4000 8000 10000 I) Finance Plan of Saarthi Saarthi will involve initially own funds approx to the tune of Rs 45 lacs in the business. Later as per requirement and needs of business and market, we shall borrow funds from Bank or any other Financial Institution.
- 11. J) Projected Balance Sheet for Saarthi Business & Knowledge Solutions Pvt Ltd Pro Forma Profit and Loss Year 1 Year 2 Year 3 Sales Vehicle Sales 34,485,867 51,728,800 62,074,560 Spare Parts 1,425,000 2,450,000 2,900,000 Accessories 2,000,000 3,000,000 3,600,000 Service 600,000 1,000,000 1,200,000 Total Sales 38,510,867 58,178,800 69,774,560 Purchases Vehicle 31,831,140 47,746,709 57,296,051 Spare Parts 1,200,000 2,000,000 2,500,000 Accessories 1,600,000 2,400,000 2,880,000 Purchases 34,631,140 52,146,709 62,676,051 Gross Margin 3,879,727 6,032,091 7,098,509 Expenses 800,000 1,100,000 1,350,000 Payroll 519,100 1,134,500 1,370,000 Sales and Marketing and Other Expenses 350,000 400,000 500,000 Rent 600,000 660,000 720,000 Total Operating Expenses 282,000 516,000 648,000 Profit Before Interest and Taxes 1,328,627 2,221,591 2,510,509 Taxes Incurred 398,588 666,477 753152.7 Net Profit 930,039 1,555,114 1,757,356
- 12. We Thank For Giving Us Opportunity…. Saarthi Business & Knowledge Solutions Pvt Ltd, 727, Se 15-A, Faridabad 121007 Haryana (India) Contact us at email: contact@saarthi.co.in web: www.saarthi.co.in M: +91 7838961527 O: +91 129 4006727