Auto Moto Zone service unit proposal

Proj ect Proposal for Auto Moto Zone
Prepared for: Auto Moto Zone (A Division of Sir Ventures)

Prepared by: Rohan Rebello, Client Services Manager for SIR Ventures
3 July 2013
Proposal to start Auto Moto Zone a automobile service center unit with association with
Central Bank of India under CGTMSE Scheme
Confidential: The contents of this document are confidential and intended solely for the
recipient. Reproduction of, or forwarding to anyone not directly sent this document is
strictly forbidden.

SIR VENTURES 1st oor, Pump House Road, Belur 573115 INDIA T 08177 222247 C 94493 54205 / 64205 / 74205 sirventuresgroup@gmail.com
AUTO MOTO ZONE SERVI CE UNI T
1. Intoduction
Automobile repairing and servicing is a most commonly known activity in almost all areas where all types of
motor vehicles like cars, buses, lorries, jeeps, etc are given for service and repairs. Regular maintenance and
servicing of vehicles is required for safe driving and durability of the vehicles. Improper maintenance of vehicles,
present conditions of roads, irresponsible driving, using cheaper spare parts, etc are the main reasons to send
the vehicles for repairs and maintenance.
Auto Moto Zone will be the most essential unit to any vehicle user. This unit will be started in a commercial
complex with 3600 sq ft of space and is located in J.P Nagar which is the fastest growing part of Belur. There is
a huge demand for quick and eco friendly service centers to meet the economically growing local population.
We are having good experience and qualied persons and will start this unit with low investment and get high
returns.
2. Market
There is good demand for automobile service centre in Belur due to increase in the number of vehicles day to
day. After implementation of globalization and privatization, many multi-national companies competing with
each other and introduced many models of 4-wheelers and 2-wheelers in India. Besides, the purchasing power
of the people also increasing considerably and it becomes fall under necessary item in the rural Indian areas
especially in Belur taluk for business persons, Farmers, Coffee planters and salaried persons. Now a days, the
middle class persons are also maintaining 4-wheelers/2-wheelers due to affordable price and changing habits of
the consumers. Hence, there is a good demand for setting up of automobile servicing and repairing units
particularly in Belur which is geographically centrally located in Hassan district with easy access to all
surrounding areas. Auto Moto Zone will be located next to Belur Mudigere state highway on 3600 sq ft of
commercial building.
3. Manufacturing Process
It is a service oriented unit, so different services like engine overhauling, general repairs, gear box repairs,
suspension work, changing of break wires & other spare parts, etc are taken up for 4-wheelers, 3-wheelers, 2-
wheelers. Cleaning and painting is also undertaken for the vehicles.

4. Production Capacity Per Annum
1. Cleaning and servicing Nos. Appox Rate Total Amount
- 4 wheelers 1580 200 3,16,000
- 3 wheelers 900 150 1,35,000
- 2 wheelers 4000 100 4,00,000
2. Major Repairs Nos. Appox Rate Total Amount
- 4, 3, 2 wheelers 400 1000 4,00,000
3. Painting of Vehicles Nos. Appox Rate Total Amount
- 4, 3, 2 wheelers 200 500 1,00,000
4. Wheel Alignment/Balancing Nos. Appox Rate Total Amount
- 4 wheelers 1000 250 2,50,000
- 4 wheeler balancing 1000 50 50,000
5. Income from canteen Nos. Appox Rate Total Amount
- Everyday sales 365 800 2,92,000
6. Tyre Changing Nos. Appox Rate Total Amount
- Per car tyre change 1500 50 75,000
7. Rim Straightening Nos. Appox Rate Total Amount
- Per car rim 1500 50 75,000

Total 12445 20,93,000
5. Project Cost/Capital Investment
S.No Description Amount Rs.
1 Fixed Capital 16,00,000
2 Working Capital for 1 month(s) 55,500
3 Preliminary & Preoperative Expns 5,000
Total Project Cost 16,60,500
6. Means of Finance
S.No Description %age Amount Rs.
1 Promoter Contribution 15% 2,49,075
2 Subsidy/Soft Loan 20% 3,32,100
3 CGTMSE Loan 65% 10,79,325
Total 16,60,500
7. Financial Aspects
A. Fixed Capital
i. Land and Buildings Rented Rs. 9000 per month
ii. Machinery and Equipment
S.No Description Qty. Rate Amount Rs.
1 Air compressors incl. Sprayer 2 40000 80000
2 Platform for 4 wheelers - Hydraulic jack 1 70000 70000
3 Platform for 2 wheelers - Hydraulic jack 2 30000 60000
4 Miscellaneous Hand Tools LS 25000
5 Greasing & Washing Tools LS 22000
6 Electric bench grinder LS 20000
7 Electric drilling machine LS 20000
8 Furnitures and xtures LS 150000
9 Electrication and installation LS 50000
10 Spares and tool kit for 2, 3, 4 wheelers LS 100000
11 Pneumatic Tyre Changer 1 75000 75000
12 Best Wheel Aligner 3Gi 1 260000 260000
13 Nitrogen Inator 1 70000 70000
14 Rim Straitening Machine (Double Die) 1 85000 85000
15 Coffee and Snack canteen LS 50000
16 Diesel Generator for power back up 1 150000 150000
17 Computerized Wheel Balancer 1 91000 91000
18 Optima Mobile Steam Car Washer 1 222000 222000
Total 1600000
B. Working Capital
i. Salaries and Wages (Per Month)
S.No Description Nos. Sal/mon. Amount Rs.
1 Manager/Entrepreneur 1 6000 6000
2 Skilled labours 2 4000 8000
3 Unskilled labours 2 2000 4000
4 Accountant cum clerk 1 3500 3500
5 Security persons 1 2500 2500
Total 24000
ii. Raw Material (per month)
S.No Description Unit Qty. Rate Amount Rs.
1 Materials for painting Ltrs 200 100 20000
2 Lubricating materials kgs/Ltrs 100 100 10000
3 Gas cylinders, welding rods, LS 3000
caustic soda, carbide, etc
Total 33000
iii. Utilities (per month)
S.No Description Unit Amount Rs.
1 Power LS 1000
2 Water LS 500
3 Fuels LS 500
Total 2000
iv. Other Expenses (per month)
1 Postage & Stationery Expenses 500
2 Conveyance expenses 500
3 Repairs and maintenance 500
4 Miscellaneous Expenses 500
Total 2000
v. Total Working Capital (per month)
1 Rent 9000
2 Salaries and Wages 24000
3 Raw Material 33000
4 Utilities 2000
5 Other Expenses 2000
Total 70000
8. Cost of Production (Per Annum)
1 Total Working Capital 840000
2 Depreciation @ 15% 240000
3 Interest @ 11.75% 126821
Total 1206821
9. Turn Over (Per Year)
1. Cleaning and servicing Nos. Appox Rate Total Amount
- 4 wheelers 1580 200 3,16,000
- 3 wheelers 900 150 1,35,000
- 2 wheelers 4000 100 4,00,000
2. Major Repairs Nos. Appox Rate Total Amount
- 4, 3, 2 wheelers 400 1000 4,00,000
3. Painting of Vehicles Nos. Appox Rate Total Amount
- 4, 3, 2 wheelers 200 500 1,00,000
4. Wheel Alignment/Balancing Nos. Appox Rate Total Amount
- 4 wheelers 1000 250 2,50,000
- 4 wheeler balancing 1000 50 50,000
5. Income from canteen Nos. Appox Rate Total Amount
- Everyday sales 365 800 2,92,000
6. Tyre Changing Nos. Appox Rate Total Amount
- Per car tyre change 1500 50 75,000
7. Rim Straightening Nos. Appox Rate Total Amount
- Per car rim 1500 50 75,000

Total 12445 20,93,000
10. Fixed Cost (Per Year)
1 Depreciation 240000
2 Interest 126821
3 Rent 108000
4 Salaries & Wages @ 40% 115200
5 Other Expenses incl. Utilities @ 40% 19200
Total 609221
11. Prot Analysis and Ratios
1 Net Prot 8,86,179
2 Percentage of Prot on Sales 42%
3 Percentage of Return on Investment 31%
12. Company Background
We are a partnership rm with a great team force. We are currently running different businesses under the
names Kaavi Coffee Care, where we provide all kind of services to niche target audience coffee planters in Has-
san and Chickmagalore Districts. Its a one stop shop and a complete care solution provider for all jobs related
to coffee plantation and the response is excellent. We also have Phataphat Complete Services and Tanishqa
Powers where we provide most of the services to all, along with promoting renewable energy sources and HHO
kits - A simple technology of extracting hydrogen from water (H2O) and using it as fuel. We have started a new
venture in the name of Metilda Farm Creators where we take care of a farm from start to nish with our own
skilled labors. Suman Rural Technologies is our latest venture under SIR Ventures promoting technology to Ru-
ral India with products like Kisan Raja with which a farmer can control his water pump with just a phone call
anytime and from anywhere.
13. Partners Background
SIR Ventures is a partnership rm started by we three partners Sharath Kumar, Imran Ahamed and Rohan
Rebello.
Sharath has vast experience in agriculture, coffee plantation, journalism, marketing fertilizers/pesticides and
worked as Franchise Manager for Leader branded Fertile Agro Chem Ltd. Imran has more than 7 years of expe-
rience in sales and marketing in Automobile and Insurance sector. Rohan has more than 11 years of Sales, HR
and Business Development experience working for fortune 500 giants like AOL, 24/7 Customer, DELL and Stra-
tegic Outsoucing. We are a determined, responsible team with a vision of creating jobs in Rural India and take
rural economies to International markets.
14. Marketing
Auto Moto Zone will provide all necessary marketing support in the form of On-site Promotors and Collaterals.
We will tie up with insurance companies to provide accidental repairs and selling of insurance through Auto
Moto Zone.
There are some proven Marketing Activation programs in the catchment Area for generating footfalls leading to
service, Referrals and Retention of Customers. Auto Moto Zone would initiate such programs through our sister
concern Pocket Money Marketers which would have many part timers working as Lead Generators for a attrac-
tive commission. Kiosks at crowded locations promoting eco friendly and economical mobile car steam washer
which will be sent at customers door step.
15. Conclusion
This project involves in-depth market research, analysis and prospective clients interview results. The method-
ology followed in estimating growth rate, revenues with historical service and sales is a sure ur creative and
strong partnership is looking forward for a long term relationship with CBI Belur in creating history in Auto Care
Service Industry specially in semi urban and rural markets of India.

Auto Moto Zone service unit proposal

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Proj ect Proposal for Auto Moto Zone

Prepared for: Auto Moto Zone (A Division of Sir Ventures)

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