RAHUL KADBE FESEABILITY 2007.doc

7/28/2019 RAHUL KADBE FESEABILITY 2007.doc

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PREFEASIBILITY AND MARKET ANALYSIS

REPORT

UNDER GUIDANCE OF

Dr. D.K.SEHGAL

BY

RAHUL KADBE.

2012AMD2619

INDIAN INSTITUTE OF TECHNOLOGY DELHI

DEPARTMENT OF APPLIED MECHANICS


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PREFESEABILITY

1. GENERATION OF IDEAS

1. DRAIN-PIPE ELECTRICITY GENERATION.Due to the shortage of living space in urban areas, the focushas been on constructing high Rise buildings. During the rainyseasons there is an accumulation of rain water on the terrace of

these buildings, thus it provides a large amount of water atcertain head, and this head of water can be used to generateelectricity by using a turbine at the end of the drain pipe thatcomes down from the building.

2. SOLAR AIRCONDITIONER.The idea is to provide air cooling and condition with the help ofphase changing chemical substance that uses the solarradiation on them to change their phase.

3. HILL CLIMB- ASSIST SYTEM FOR AUTOMOBILES.When an automobile is stationary and tries to climb on a hill orslightly slanted road, then there is a lot of load being put on theclutch plate as the driver simultaneously release the clutchplate and accelerates hard to avoid backward motion on thehill.

The idea is to make a device with a sensor such that when thevehicle in forward gear the wheels are locked such that theycan roll backwards.

4. BED FOLDABLE TO CHAIR AND TABLE.The purpose of this furniture is to conserve space small housesor hostels. The bed would consist of linkages, so that when it isnot used for sleeping it can be transformed into a chair and atable.


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5. GEARING OF CYCLE RICKSHAW.The motive of this modification is to provide ease of driving tothe cycle rickshaw pullers.When they drive the cycle from static condition and duringclimb they a need a larger torque, this can be achieved by

providing a set of different diameter sprockets.

6. TURBINE DRIVEN ALTERNATOR, IN FRONT OFAUTOMOBILESFOR CHARGING BATTERY

The idea is to install an alternator which will be driven by a fansimilar to the turbine in front of automobiles or trains.

7. AUTOMOBILE RECYLCLING PLANT.This Is a Proposal of setting up a an automobile recycling plantto recycle at least 80% of the automobile and using the metaland other recycled materials for making other new products inthe same operating facility.

8. A LADDER CUM STOOL FOR KITCHEN USE.This product consists of making a ladder cum stool for kitchenpurposes, so that it can be used for getting this kept on highshelves as well as for resting and for keeping daily usevegetables.

9. BOOK PHOTO COPYING MACHINE.The machine is proposal for making photo copying machine

which will be able to completely copy a book without damagingor opening its binding.

10. TRAFFIC LIGHT FUEL CONTROLLER.The system is for saving fuel that is burnt during the wait at thetraffic light signals, by automatically switching of the enginenear the traffic line zone.


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11. SHOES WITH TORCH.This pair of shoes will contain a torch at the end of the toeregion which will be powered by the pressure plates installed inthe shoes which will produce electricity.

12. SLEEPER CLASS WINDOW MODIFICATION OFTRAINS.

This modification is to modify the design of the existing sleeperclass windows in the Indian Railways, to rectify the problem ofimproper closing.

13. LUGGAGE CARRIER, FOR RAILWAY OVER BRIDGES ATSTATION

This will facilitate the boarders to move their luggage from oneplatform to the other from the over bridge, via a conveyor thatwill run along the stairs.

14. BITUMEN ROAD, RE-CONSTRUCTION MACHINEThe purpose of this machine is to melt the existing bitumen onthe road and reuse it to for constructing the road again bylaying the same melted bitumen.

15. BIO-GAS SCOOTER.The idea is to make a prototype of a scooter that works onbiogas as a fuel.

16. GARBAGE COOLECTION AND DISPOSAL FROMHOMES.

It involves developing a system for collecting garbage from thehouses and carrying out initial sorting and treatment and thendisposing it in the trenching grounds.


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2. INITIAL SCREENING

#.Factors Considered For Initial Screening.

1. Emotional Quotient of the Entrepreneur.

2. Government Policies.

3. Economic Factors.

4. Marketing.

5. Technical Knowledge.

6. Environment Factors.

INITIAL SCREENING OF DIFFERENT IDEAS.

DRAIN PIPE ELECTRICITY GENERATION

Since the Drain pipe uses rain water for producing

electricity, this makes this product limited, because it canbe only used during the rains and requires a continuoussupply of water.


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The system will require treatment of water so that it does

not contain mud, dirt and other substances which can clogthe turbine and the drain pipe.

SOLAR AIR CONDITIONER

The solar air conditioner has low C.O.P.

The other problem is long-term reliability.

Another bottleneck is the low mass and heat transfer

performance of the adsorbents (silica gel).

HILL CLIMB- ASSIST SYTEM FOR AUTOMOBILES

The hill climb assist system could be very useful forcommercial vehicles, but the system will increase the costof the automobile.

The other problem is that it would not be of much liking to

the drivers who likes to stick to the old fashioned ways.

The system will require a redesign of the braking system

and will cause excessive wear of brakes pads.

BED FOLDABLE TO CHAIR AND TABLE This product is very useful for place where there is less

living space.

It will provide a good sleeping place for an individual and

two sitting place in case when it is converted to chair andtable.

The product will be of low cost and will be very popular

between in medium income families.

GEARING OF CYCLE RICKSHAW

This modification will help in decreasing the effort that is

being made by the rickshaw pullers to paddle the cyclefrom static condition.

The sprocket arrangements would add a little cost to the

rickshaw but will justify for the effort that is reduced.

The modification can be done to the existing vehicles.


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TURBINE DRIVEN ALTERNATOR, IN FRONT OFAUTOMOBILES FOR CHARGING BATTERY

This will require a redesign of engine compartment.

It will affect the aerodynamics of the automobile.

Only applicable for automobiles moving at high speed.

The moment of turbine will cause an adverse effect on

handling.

AUTOMOBILE RECYLCLING PLANT

The project requires a large piece of land near port or

railway track for transport of recycled metal.

The process will require a large amount of electricity.

Difficulty in sorting different material items from the

automobile.

The project will require various government clearances.

A LADDER CUM STOOL FOR KITCHEN USE

Very useful product for women in the kitchen.

It is multipurpose with Ladder, stool and storage.

Highly reliable and long Lasting.

Easy to clean.

Easily to market.

BOOK PHOTO COPYING MACHINE This is much needed modification in the photo copying

machine.

Very useful for students.

Avoids the existing problem of manually turning the

pages.

TRAFFIC-LIGHT FUEL CONTROLLER The idea is to conserve the fuel.


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This will greatly reduce air pollution.

The government will be interested in the idea and may

fund it.

SHOES WITH TORCH The shoes will be very helpful in area in with limited

electricity.

Will be cheap and popular among the villagers.

SLEEPER CLASS WINDOW MODIFICATION OF TRAINS

It is very much required because the existing window does

not close properly.

This causes the rain water during the rainy season to

enter in the coach.

During winter very cold air enters the coach, which makes

the journey very uncomfortable.

It will also save the cost and material.

LUGGAGE CARRIER, FOR RAILWAY OVER BRIDGES AT

STATION

Not suitable for odd shaped baggage and other items.

It will require modifications of the existing railway stations,

which is not feasible due to the traffic load.

BITUMEN ROAD, RE-CONSTRUCTION MACHINE.

It will help to reconstruct the road faster. It will reduce the consumption of bitumen this would need

less mining.

BIO- GAS SCOOTER

The gas has to be compressed and used for carrying in

large quantities.

The smell may feel uncomfortable.

Low power.


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GARBAGE COLLECTION SYTEM

The system will help in sorting the organic and inorganic

compounds and other Hazardous substances beforehand.

It will increase the volume to be carried to the dumping

ground.

Requires active co-operation of the population.

#. INITIAL SCREENED IDEAS.

I. DRAIN PIPE ELECTRICITY GENERATION.

II. GEARING OF CYCLE RICKSHAW.III. SLEEPER CLASS WINDOW MODIFICATION OF TRAINS.IV. BED FOLDABLE INTO CHAIR AND TABLE.

V. TRAFFIC FUEL CONTROLLER.VI. BITUMEN ROAD RECONSTUCTING MACHINE.VII. BOOK PHOTO COPY MACHINE.VIII. A LADDER CUM STOOL FOR KITCHEN.


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3. PRELIMINARY SCREENING

S.NO

FACTORS I II III IV

V VI

VII

VIII

1. NEED NO YES

YES

YES

YES

YES

YES

YES

2. TECHNOLOGY

YES YES

YES

YES

YES

YES

NO YES

3. SET-UPCOST

YES YES

YES

YES

NO

NO

YES

YES

4. HUMANRESOURCES

YES YES

NO

YES

YES

NO

YES

YES

5. MARKETING YES YES

YES

YES

NO

NO

YES

YES

6. POTENTIALBUYERS

NO YES

YES

YES

NO

YES

YES

YES

7. MANUFACTURING

YES YES

YES

YES

NO

NO

YES

YES

8. PROFIT YES YES

NO

YES

NO

YES

YES

YES

9. LANDREQUIREME

NT

YES YES

YES

YES

YES

YES

YES

YES

10.

LONG TERMRETURNS

NO YE

S

N

O

YE

S

YE

S

YE

S

YE

S

YES


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Based on the Preliminary screening Ideas II, IV,VII, and VIII were selected.

4. COMPARATIVE RATING

In comparative Rating, a scientific approach has been followed,where factors have been standardized such as Employment of

Labour, technology, profitability etc. Relative weight for eachcategory is also mentioned respectively in terms of importanceand preferred choice.

1. MARKET SITUATION

S.NO

SUB-FACTORS

RELATIVE

WEIGHT.

OUT OF1

IDEAI.

IDEAII.

IDEAIII.

IDEAIV.

MARK

S

W*M MARK

S

W*M MARK

S

W*M MARK

S

W*M

1. EXISTINGPRODUCT.

0.1 2 .2 1 .1 1 .1 3 .3

2. NO. OF.CUSTOMERS

0.5 9 4.5 8 4 8 4 8 4

3. EXPORTPOSSIBILITI

ES.

0.1 3 .3 5 .5 8 .8 2 .2

4. SALES ANDDISTRIBUTION

0.3 9 1.5 5 1.5 7 2.1 8 1.6

6.5 6.1 7 6.1


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2. COST


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3. TECHNOLOGY

S.NO

SUB-FACTORS

RELATIVE

WEIGHT.

OUT OF1

IDEAI.

IDEAII.

IDEAIII.

IDEAIV.

MARK

S

W*M MARK

S

W*M MARK

S

W*M MARK

S

W*M

1. RAWMATERIALCOST

0.25 9 2.25

5 1.25

8 2 8 2

2. LABOURCOST

0.15 9 1.35

2 .30 9 1.35

4 .6

3. DISTRIBUTION

0.25 9 2.25

5 1.25

8 2 7 1.75

4. SELLING

COST

0.45 7 3.1

5

7 3.1

5

7 3.1

5

7 3.1

59 5.9

58.5 7.5

S.NO

SUB-FACTORS

RELATIVEWEIGHT.OUT OF

1

IDEAI.

IDEAII.

IDEAIII.

IDEAIV.

MARKS W*M MARKS W*M MARKS W*M MARKS W*M

1. EXISTING .1 8 .8 6 .6 5 .5 7 .72. FRESHNESS .2 7 1.4 2 .4 8 1.4 6 1.23. ADAPTIVE .25 8 2 7 2 8 2 6 1.54. KNOWLEDG

E.3 9 2.7 7 2.1 3 .9 8 2.4

5. STABILITY .15 9 1.35

7 1.05

8 1.2 8 1.2

8.25

6.15 6 7


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4. LABOUR

5. RISKS

Based on the above study two products were finallyshortlisted.

I. Gearing of Cycle RickshawII. Book Photo Copying machine.

From the above to Ideas I chose GEARING OF CYCLERICKSHAW, for the further study

GEARING OF CYCLE RICKSHAW

In many parts of India and world Cycle Rickshaws still provide

transport for passenger and goods over small distances. The

reason for their popularity among the people in this moderntime is the fare which is extremely low and is affordable by rich

S.NO

SUB-FACTORS

RELATIVE

WEIGHT.

OUT OF1

IDEAI.

IDEAII.

IDEAIII.

IDEAIV.

MARKS

W*M MARK S

W*M MARK S

W*M MARK S

W*M

1. SKILLEDLABOUR

.3 9 2.7 8 2.4 2 .6 7 2.1

2. TRAINING .4 9 3.6 8 3.6 2 .8 7 2.8

3. MEN .3 7 2.1 9 2.7 5 1.5 7 2.18.4 8.7 2.9 7

S.NO

SUB-FACTORS

RELATIVE

WEIGHT.

OUT OF

1

IDEAI.

IDEAII.

IDEAIII.

IDEAIV.

MARKS

W*M MARK S

W*M MARK S

W*M MARK S

W*M

1. SEASONAL .5 9 4.5 7 3.5 9 4.5 7 3.5

2. LEGISLATION ANDCONTROLS

.2 9 1.8 9 1.8 8 1.6 8 1.6

3. EXCUSIVENES

.3 7 2.1 6 1.8 9 2.7 6 1.8

8.4 7.1 8.8 6.9


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as well as average income man, another quality is that theydoes not create any pollution and thus does not have any effecton environment.

The idea is to have a slight modification in the driving system ofthe rickshaw so as to provide ease of driving to the pullers andenable them to carry more passengers or load. This can beachieved by using a variable sprocket system in the rear wheelwhich will reduce the force required by the puller.

Cycle RickshawVariable Sprockets

5. SITUATIONAL STUDY

The objective of situational study is to collect first-hand

information about a possible or tentative venture through

following means

1. Meet peoples


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2. Visit to market and talk to shopkeepers or distributors or

customers

3. Visit to industries and talk to industry peoples

4. Talk to people in power, government department,economist, share holders

5. Collect information about raw material, labour, and

machines

In situational study we offer direct interaction with customers,

distributor,

Suppliers and for that we asked the following questions to

customer, distributors and manufacturer.A. DRIVER.1. Is there a need for variable sprockets?

A) Yes. B) No. C) Dont Know.

2. How often do you cycle not sitting on seat?A) Mostly. B) Rarely. C) Depends on

passenger.

3. Are you able to cycle up with passengers on small slopes?A) Yes. B) No. C) Sometimes.

4. Was there a time when you were unable to cycle whilecarrying passengers?

A) Yes. B) No. C) Dontremember.

5. What was the reason for the above?

A) Heavy load. B) Slope. C) Others.

6. Are you ready to pay extra money for the sprocket system?A) Yes. B) No. C) Not sure

B. CUSTOMERS

1. Do you often travel by Cycle Rickshaw?


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A) Yes B) No

2. Does the Cycle puller feels difficulty during taking start?A) Yes B) No

3. Is he Able to drive up a bridge or on a slanted road?A) Yes B) No

4. Would you mind paying more fair?A) Yes B) No

Based on the answers from the above discussionBar charts were plotted.

DRIVERS

CUSTOMERS


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MARKET ANALYSIS


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Following are basic information required for performing market

analysis

1)IDENTIFY THE ITEMS OF INFORMATION

Known items of information

POTENTIAL BUYERS: - The buyers can be an individualor an organization that Provide rickshaw on loan basis orunder contract.

PULLERS:-The pullers are mostly male between agegroup of 18-40.

WORKING HOURS: - 12-14 hours daily.

EDUCATION-Most Pullers are uneducated. PLACES/STATES USED:-The rickshaw is mostly used in

northern and eastern part of the India.

PURCHASE TYPE:-On loan.

PASSENGER CAPACITY:-4 person.

WORKING LIFE OF RICKSHAW:-Up to 8 Yrs.

Missing items of information:- Seasonal Demand.

User know how of the product.

Approximate cost of the product.

Availability of spares.

Maintenance and service.

This information can be collected by making a Questionnaire.

1. How many choices did you have while buying?

.

2. Did they know how to drive a scooter or any other gearedvehicle?

.3. How much they earn daily, and their monthly average?


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.

4. At what time of year did they buy the product?

.

5. Did you know anyone who is looking to buy the product?.

6. How often do you have to repair or service the cycle?

.

7. Where do you Buy Spare parts?

.

8. Have you bought it new or its second hand?

.

2)CHARACTERIZATION OF PRESENT MARKET

MARKET SIZE: - On the basis of sales figures and the

number of people using the rickshaw as a transport, thereis a large opportunity for the product to be successful andgenerate profit.

MARKET GROWTH:-The cycle rickshaws are mostly seen

in northern, north- eastern and eastern parts of India, thenumbers here are large as well as considering the featuresand benefits of this type of transport system and theemployment opportunities that it created definitely it will

be popular in other parts of the country


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3) COMPETITORS

AGARWAL CYCLE WORKS

Profile-Distributer and trader of cycle rickshaw,serviceprovider,repairing of rickshaw.SPATU ROAD, AMBALA, Ambala City Haryana, India

SHIVANI INTERNATIONALProfile- manufacturer & exporter of cycle rickshaw, sunbright

solar rickshawJ - 2/90 - B, 3rd Floor, D. D. A. Flats, KalkajiNew Delhi - 110019, Delhi, India

ACE CHANNEL PARTNERSProfile- wholesaler of door to door pedal driven cyclerickshawsNo. 14 - 1 - 90 / 83, Beside Little Star School, Gayathri Nagar,Borabanda - Hitech City Road, Allapur

Hyderabad - 500 018, Andhra Pradesh, India

JASVIR INDUSTRIESProfile -Manufacturer and supplier of cycle rickshaw whichincludes heavy duty rickshaw rehraNo. 8152/1, Street No. 13, Gurpal Nagar, Gill Road, ATIBacksideLudhiana - 141 010, Punjab, India

DINESH INDUSTRIAL CORPORATIONProfile -Supplying and manufacturing cycle rickshawNo. 584, 585 & 586, BhagirathpuraIndore - 452 003, Madhya Pradesh, India

SRI KANCHIProfile -Manufacturer & exporter of a wide range of southindian cycle rickshawNo. 31 A / 6, Mettupalayam Street, Little Kanchipuram, Near

Chinna Kanchipuram, S. B. I. BankKanchipuram - 631 501, Tamil Nadu, India


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4 )DEVELOPMENT OF MARKET STRATEGY FOR MYVENTURE IDEA

It will include following steps

1. Sales estimation plan

2. Sales promotion plan

3. Expenditure plan

PARAMETERSACE CHANNEL

PARTNERSJASVIRINDUSTRIES

R & D EmployeeStrength

1-5 4 5

Q & C Employee

Strength

1-5 4 5

UnskilledEmployee Strength

1-5 5-10

Gross AnnualIncome

Upto US$ 0.25Million (or upto Rs.1 Crore Approx.)

Rs. .50 10million

Business type

Manufacturer,Trading Company,Distributor/Wholese

ller

Manufacturer,Trading Company

Main MarketIndianSubcontinentS

Indian Subcontinent


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SALES ESTIMATION PLAN

The following sales estimation plan has been created for theproduct, Initially the product will be limited to the northern partof the country like the N.C.R, then the production andmarketing will be focussed for the eastern market and in theconsequent years the aim will be to attack the small town and

cities, which are not familiar with this mode of transportation.

YEARS SALES IN NUMBERS OFPRODUCTS.

1 YEAR 5000

2 YEAR 8000

3 YEAR 12000-15000

SALES PROMOTION PLAN

Firstly a few number of Rickshaws will be manufacturedand will be given to the federation of the Rickshaw pullersof India ,which will operate these rickshaws in differentzones .This will make the pullers as well as the customersaware of the product.

A campaign will be launched for demonstration of the

product to the entrepreneurs and the Municipal co-operations.


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Classes for educating the pullers about the mechanism will

be conducted free of cost, to make them aware of themechanism, the correct operating procedures, maintainand service guidelines.

Promotional campaigns will be done in other cities tomake the people aware of the product and technology.

Modes of promotions like

a. Radios

b. National channel on Television

c. Pamphlets

d. Hoardings will be used.

Suitable offers will be made for bulk delivery.

Loan facilities will be available for those who cannot afford

it

PROMOTION AND ADVERTISEMENT EXPENDITURE PLAN

S. No.Mode Rate (in Rs.)Target

Customer

Year

2012- 2013-2014-

1

51 News paper

50000/quarte

r page

200000 /

newspaper

5,00,0

00

3,50,0

00

1,50,0

00

2 Magazine 18000/page5000 /

magazine60,00040,00020,000

4 Pamphlets 2 / pamphlet 10,000 20,00015,0000

5Demonstrati

ons1000 / demo 10,000 90,00060,00025,000


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SALES EXPENDITURE

NON RECURRING

S. No Description Cost

1 Land 1,0000000

2 Building / Construction 20,00,0000

3 Machines 5,00,00000

RECURRING-EXPENDITURE:

S.

Description

2012-

13 2013-14 2014-15

1 Raw Materials80,00,00

001,50,00,0

0002,90,00,0

000

2 Salaries of Employees30,00,00

085,00,000

1,80,00,000

3 Stationary 5,00,000 5,00,000 5,00,000

4 Power, water etc.50,00,00

0

80,00,0001,20,00,0

005

Other Miscellaneousexpenditure

10,00,000

15,00,000 20,00,000

5) MARKETING CHANNELS AND DISTRIBUTION

There will be a sales outlet at the company, from where the

customers can directly buy the Cycle Rickshaw in bulk.


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Distribution and sales centre will be set up across the city forincreasing sales and to reach customers.

The cycle and the seating compartment will be packagedseparately and will be assembled as the customer has placedthe order.

The Government agencies and the Municipal co-operation willbe approached to facilitate the distribution and to avail somerelaxation in taxes.

The product will also be available at the cycle shops.

FLOW OF OPERATIONS

PARTS FROMTHE VENDORS

ASSEMBLY OFTHE

COMPONENTS

TESTING ANDCHECKING

PACKAGING

DISTRIBUTION OUTLETS


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DISTRIBUTION AND MARKETING

6)ORGANIZATIONAL HIERARCHY


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RAHUL KADBE FESEABILITY 2007.doc