WeighMach Ltd

(Archit Mehtotra (09BM8012

(Shweta Jain (09BM8031
(Piyush Padgil (09BM8036
(Rohit Khandelwal (09BM8042
(Shilpa Gautam (09BM8085
Mission

To help ease the lives of people and decrease the

inconvenience caused, by developing smart, cost
effective and convenient home solutions and making an
impact on lives of millions of people by better reach and
involvement.
Vision
We strive to be one of the leading companies in
India providing smart, sophisticated, state-of-art
and innovative home solutions to people
strangled in hectic work schedule.

We believe in using the latest technology and

designing to come up with products ahead of
their time which will help in reducing the
inconvenience from the lives of the people.
Value Proposition

WMac is a product aimed for working

couples who often have no time to order
cylinders on time. It has an integrated
weighing and ordering system that places
an order with your gas agency as soon the
gas falls below the threshold limit. It also
provides an easy way to handle your
cylinders, all at an affordable price.
Product design
Plastic
Cylinder Box

Steel
Spring

Steel Plates

Transducer
Assembly
Components
1.A plastic cylindrical Box for outer covering open at one
end.
2A steel spring of desired thickness and strength to bear the
weight of a 15kg cylinder.
3.Two steel plates between which the spring can be
mounted.
4A rack and pinion arrangement to convert the rotating
motion to linear.
5A potentiometer for generating a potential difference.

6One analog to digital converter.

7One SMS getway to contact the service provider (gas

agency)
Compression
 Rack and
Pinion

Potentiometer
A S
D M
C S
A S
D M
C S
Technology and IPR issue
• The breakthrough lies in utilizing the existing technologies for a functional
smart home solution.
• We have used the existing technologies available to assemble this product.
• Transducer assembly is customized by using rack & pinion arrangement and
calibration to suit the weighing requirement.
• SMS getway is used to send message across to the vendor (gas agency)
• No IPR issues are involved as the technologies used are freely available.
However the product is not patentable.
• Core Competency: As the product is not IPR protected our core competency
will lie in the distribution network. We will be distributing the WeigMac by
utilizing the gas agency network already in place. Our aim will be to capture
this network by exploiting our first mover advantage.
 The Market: LPG
• Domestic LPG Share of Products
▫ Packed product in 14.2Kg, & 5kg
cylinders, home delivered
through distributors
• Non Domestic LPG IND BULK
AUTO LPG
2%
2%
▫ Packed product 19Kg and 47.5 PA CKED
NDNE
kg delivered supply through NON
DOM ESTIC
IND B ULK

distributors. 5%
PACKED
AUTO LPG

• Bulk DOM ESTIC

91%

▫ Delivered to Storage Tanks of

Customers- Business Associates
to garner Customers
• Auto LPG
▫ Through Retail Outlets along
with MS/Diesel and/or stand
alone outlets

Major market of LPG is Domestic Sector

 Consumption Pattern - LPG
▫ There is steady growth in LPG consumption in the last 4.
(Figs. In TMT)

11778
(4%)
12000 11332
(7.6%)
11500
10531
11000 (5.5%) 2005-06
10500 10052 2006-07

10000 2007-08
2008-09
9500
9000
Domestic LPG

 Second largest packed LPG market in the world

 Steady Growth @.8% p.a. in LPG Consumption in India LPG
 Domestic LPG Penetration
Urban Rural Total
Population March 2009 326.2 838.8 1165
in Million

Households in Million 93.1 156 249

LPG connections in 81.2 26.8 108

Million
Penetration 85% 17% 42%

Per capita consumption 128 83 117

(Kg/year)

LPG in cylinders, home delivered to more than 108

million households - Source : NCAER
 Slice
Slice 3 4
0%0%
Slice 5

Domestic LPG Penetration 0%

Urban
Without
Urban- Rural Urban
LPG
Population 28% 13%

Rural
With LPG
72%
Population wise Slice
Slice 3
87%4
Division- Rural 0%0%
Slice 5
Slice 4
5 0%
0%
Above between
5000 2000
3% and With LPG Rural
5000 17%
14%

below
2000 3% 14% Without
83%
LPG
83%

83%
Govt. of India has developed a Vision 2015 document for
increasing use of LPG in India.
Market Analysis : STP
Triple-tiered Sales Strategy
Promotional Mix
Competitor Analysis
Competition From:
▫ Competition from national and international companies in the field of
weighing machines.
▫ Competition from Chinese companies who replicate the product using
reverse engineering
 Financials
• Sources of Fund

• Uses of Fund
 Assumptions
• Plant Rent - Advance for Plant is Assumed to be same as 12 month rent
(4000 sqft @Rs9/sq/ft/month)
• Machine & Equipment Cost - Each assembly line uses one set of machines,
each set of machinery costs Rs.6000
• Average Salary - Assumed as Rs 12000/month each skilled labour,
• Electricity - Assuming Rs. 6.5 per unit and 100 unit consumption per month
• Average Productivity – 5200 units/month (200 units/day) 4% - 5% of
Expected Demand (10,00,000) in target group.
• Average monthly Sales – Considering a start up factor month by month
basis
• All the variable costs except plant rent have been projected based on start
up factor
• Agency Commission – Rs 20/ unit on sales and for installation
• Transportation, Delivery, Packaging Cost - Rs 10/unit
• Depreciation on Equipment is neglected as it is a negligible investment and
that on Plant is not accounted for as it is on rent.
 Sales and Revenue Forecast
Start Up Factor Average Price/Unit Revenue
Expected Generated
Number of Units
Produced
Month 1 0.1 520 600 31200

Month 2 0.2 1040 600 62400

Month 3 0.3 1560 600 93600

Month 4 0.4 2080 600 124800

Month 5 0.5 2600 600 156000

Month 6 0.6 3120 600 187200

Month 7 0.7 3640 600 218400

Month 8 0.8 4160 600 249600

Month 9 0.9 4680 600 280800

Month 10 1 5200 600 312000

Month 11 1 5200 600 312000

Month 12 1 5200 600 312000

Costing
 Bills Of Material Cost
Raw Materials / Unit 485

Commision/Unit 20

Plastic/Steel Moulding 150

Gear Transmission 15

Rollers 30

Transducer Assembly (Potentiometer, 40

ADC)
Spring 25

SMS Gateway - Communication 200

Processor
Indicator (LED) 5
 P&L and Cash Flow
Revenue Total Interest Profit/ Cash Profit/ Cash
Generated Expenses Flow before Flow after
Tax Tax (36%
p.a.)
Month 1 312000 743465.00 0.00 -435465.00 -431465.00
Month 2 624000 574930.00 3000.00 42070.00 40807.9
Month 3 936000 844395.00 3000.00 84605.00 82066.85
Month 4 1248000 1113860.00 3000.00 127140.00 123325.8
Month 5 1560000 1383325.00 3000.00 169675.00 164584.75
Month 6 1872000 1652790.00 3000.00 212210.00 205843.7
Month 7 2184000 1922255.00 3000.00 254745.00 247102.65
Month 8 2496000 2191720.00 3000.00 297280.00 288361.6
Month 9 2808000 2461185.00 3000.00 339815.00 329620.55
Month 10 2860000 2730650.00 3000.00 382350.00 370879.5
Month 11 2860000 2730650.00 3000.00 382350.00 370879.5
Month 12 2860000 2730650.00 3000.00 382350.00 370879.5
NPV & IRR
Pay Back Period & BreakEven
Analysis
Corporate and HR vision and goals:
• Corporate Vision:
“A globally identified house of innovation, integrated with the
customers’ trust and reliability in us.”

• HR Vision:
To enable our customers enjoy the solutions to their needs and
making WeighMach Pvt. Ltd a learning organisation.

• HR Goals:
▫ To develop an organisation having technical and innovation knowledge
based competitive edge.
▫ To ensure there is a culture of team spirit and accountability to convert
the idea into a solution of our customer’s problems.
HR Strategy
• HR strategy
▫ Imbibe a culture of openness and acceptance of ideation at any level of
the hierarchy in the organisation.
▫ Taking various initiatives at every level of the organisation to keep the
managers motivated by creating a motivational enabling environment to
equip them with their own HR initiatives.
▫ Communication within and outside the company.

• HR structure
Since this is a new firm so a flat organisational structure will be good for the
organisation. The organisation will comprise of the BOD followed by the
HR&PR personnel, chief financial officer (CFO) and Chief Technical Officer
(CTO).
HR Strucuture…conti
Thank You!!!!!