PROJECT PROFILE ON TWO WHEELER AUTOMOBILE SPARE SPARE PARTS RETAIL SHOP SHOP
Introduction The automobile industry in India has a strong prominence in the overall economy of the country. According to the Society of Indian Automotive Manufacturers (SIAM) , Indian automotive sector today is a $74 billion industry and by 2026, the industry is expected to achieve a turnover of $300 billion. In India, small-scale automobile business is considered as a small business opportunity for rural, suburban and metro cities. The Two Wheelers segment with 81% market share is the leader of the Indian Automobile market owing to a growing middle class and a young population. Moreover, the growing interest of the companies in exploring the rural markets further aided the growth of the sector. The overall Passenger Vehicle (PV) segment has 13% market share. Domestic sales of Passenger Vehicles grew by 8.13 per cent in April-January 2016 over the same period last year. Increasing vehicle population and increasing spending capacity are the two major reasons that have created automobile business opportunities for small entrepreneurs.
Market Potential Auto accessories store is one of the most profitable automobile business ideas in the retail segment. After every purchase of vehicle regardless two-wheeler or four-wheeler, owners are used to visiting an auto accessories store. According to the local market demand, accomodating the right product range for the customers is the key concept. Spare parts p arts industry has a huge potential in India
Promoter The promoter has the previous experience to start this business on his own. He has 15 years of experience in Bajaj Automobiles as a Service Supervisor. His expertise in the Automobile spares and service opened ways for a new startup, He has the ability to start this business as an authorized spare parts dealer of a renowned vehicle manufacturing company. But he wants to start a multi-brand spare parts retail outlet as a startup and later expand to future market.
Location The mechanics are almost travelling 30 kms to kurnool to get the spare parts which makes total 60 kms travel and 2 hours journey to and fro. The present retail unit planned is located at the premises of the Automobile workshops of the target group in a rented building, accessible to all the mehanics of the town and the surrounding villages. The Automobile
spare parts retail outlet location is - Baireddy Comlex, Opposite to RTC Bus-stand & Depot, Nandikotkur Taluka & Mandal, Kurnool District, Andhra Pradesh (state). There are totally 25 service workshops in the Nandikotkur Mandal and about 25 service workshops in the surrounding villages. They all need a nearest location for spare parts for easy access and save both time and money.
Production Capacity per Annum Sales – Two Wheelers
Business per day
Rate Total Amount per Annum
Bajaj Automobile spares -
Rs. 7000 / per day
21,00,000 / per annum
Hero Automobile spares -
Rs. 5000 / per day
15,00,000 / per annum
Honda Automobile spares -
Rs. 4000 / per day
12,00,000 / per annum
TVS Automobile spares -
Rs. 2000 / per day
6,00,000 / per annum Total
54,00,000 / per annum
Project Cost / Capital Investment S.No
Description
Amount Rs.
1
Fixed Capital
2,10,000
2
Working Capital for 1 month
7,85,000
3
Preliminary & Properative Expenses
5,000
Total Project Cost
10,00,000
Means of Finance S.No
Description
% Age
Amount Rs.
1
Promoter Contribution
25%
2,50,000
2
Subsidy/Soft Loan
35%
2,62,500
3
Term Loan
40%
4,87,500
Total Project Cost
10,00,000
A. Fixed Capital
Advance to Shop
1. Land & Building
Rs. 40,000
2. Furniture and Equipment S.No
Description
Qty.
Rate
Amount Rs.
1
Furniture- Iron Racks
24
2,000
48,000
2
Card Boards
20
1,000
20,000
3
Front Desk & Chair
1
30,000
30,000
4
Chairs & Stools
4
500
2,000
5
Computer with Printer
1
50,000
50,000
6
Electrical Lights
10
200
2,000
7
Electrical Fans
4
1,500
6,000
8
Oil Board
1
8,000
8,000
9
Handle Stand Bar
1
4,000
4,000
Total
B. Working Capital 1. Land & Building
1,70,000
Rent to Shop
Rs. 10,000
2. Spare Parts, Lubricants and Salary & Wages S.No
1 2 3 4 5 6 7 8 9
3. S.No 1 2 3 4 5
Description
Bajaj Two Wheeler Spares Hero Two Wheeler Spares Honda Two Wheeler Spares TVS Two Wheeler Spares Tyres & Tubes Lubricants Black Sprays FeviQuick Unskilled Worker
Amount Rs./ per month
3,00,000 2,50,000 80,000 75,000 40,000 20,000 5,000 2,000 3,000 Total
7,75,000
Description
Amount Rs. 2,500 500 3,000 1,000 1,000
Total
8,000
Utilities (per month)
Power Water Fuels Internet Telephone
4. S.No 1 2 3
Other Expenses (per month) Description Postage & Stationary Expenses Repairs & Maitenance Miscellaneous Expenses
Amount Rs. 1000 1000 1000
Total
3000
5. Total Working Capital (per month) S.No Description 1 Rent 2 Spare Parts, Lubricants and Salary & Wages
3 4
Amount Rs. 10,000 7,85,000
Utilities Other Expenses
8,000 3,000 Total
8,06,000
Description
Amount Rs. 96,72,000 50,000 1,20,000
Cost of Production (Per Annum) S.No 1 2 3
Total Working Capital Depreciation Interest
@ @
5% 12%
Total
98,42,000
Turnover (Per Year) S.No 1 2 3 4
Sales – Two Wheelers Bajaj Automobile Spares Hero Automobile Spares Honda Automobile Spares TVS Automobile Spares Total
Business per day Rs. 7000 Rs. 5000 Rs. 4000 Rs. 2000
Rate Total Amount per Annum Rs. 21,00,000 Rs. 15,00,000 Rs. 12,00,000 Rs. 6,00,000 Rs. 54,00,000
Fixed Cost (Per Year) S.No 1 2 3 4
Description
Depreciation Interest Rent Salary & Wages
Amount Rs.
50,000 1,20,000 1,20,000 36,000 Total
Rs. 3,26,000
Profit Analysis & Ratios 1. Net Profit
--------------------------------
Rs. 1,77,000
2. Gross Profit
--------------------------------
Rs. 2,15,000
3. Percentage of Profit on Sales
--------------------------------
20%
4. Percentage of Return on Investment
--------------------------------
5. Break Even Point
--------------------------------
Rs.
