Introduction

Introduction

Project name Entrepreneur name Sector / Industry focus Contact coordinates • Mobile number • Landline number with code • Email Address • Postal Address

: Auto Savvy India Pvt. Ltd., : Abraham Simons : Automobile / Service : : + 91994905 0155 : : [email protected] : 6-15, Sai Prabhu Enclave, RCI Road, Mallapur, Hyderabad - 500005

Introduction - Continued * AutoSavvy provides round the clock total Multibrand Car Aftermarket Service and solutions to the customers outside warranty period, which includes repairs Body work, mobile repairs and towing. * We will fill the gap created between huge demand and low customer satisfaction. * Other compelling needs addressed are free pickup drop, free towing service, turn around time and fulfilling the latent needs of the customer. * Our mechanics will reach customers within 45 minutes, strict adherence to this will delight the customer every time. * There will be absolute transparency in repair and billing through live streaming of videos of repairs being performed and a green belt project on estimation of repair cost. * Proactive system generated escalations to the management based on SLAs.

Executive Summary *

Vision statement – “Your Delight is Our Pride.” Mission statement – “Reach the customer before anyone else can”

* We have identified that: * This segment requires lot of innovation and we will achieve it through 6-sigma and open-source technology. * Big and small players have not been able to fill this gap. * This is the right time to invest since: * The Indian Government's Automotive Mission Plan 2016 envisages the industry to grow to USD 145 billion by 2016. * Significant increase in demand due to One Lakh segment cars. * We will bring maximum efficiency through integration of all our systems and introduction of new SLAs like AHT and CLI. The value proposition for the customer is: * Customers are used to reach garages but now we will reach them. * Customers at local garages have waited till the repair is over just to ensure they are not cheated by mechanics, but now the wait is over. * Customers will have choice to save time on car servicing even while they are shopping or taking a nap or having a haircut. * Our prices will be 40% cheaper over dealer price. * Customers can sit at home or office and watch the car getting repaired live. This addresses convenience, reliability and transparency. * We will create barriers to entry through ART (AutoSavvy repair tree) and research on Latent needs of our customers

Features – Benefits of Service

Features

Benefits

Reach customers is 45 minutes.

Improved CSAT, reduce Turn Around Time.

24/7 availability of service.

Improved CSAT and productivity.

AutoSavvy Repair Tree

Improved efficiency, productivity

Address latent needs

Lock-in customer loyalty.

Free Pick-up/Drop and Towing

Increased market share and CSAT

Customer Loyalty Index based on Value additions

Loyal customers will bring more customers.

Executive Summary : The Solution

Service work flow.

Company Status / Progress * We have people from Automobile service/manufacturing, and ITES industries with an average 12 years experience. * Customers have shown great interest to switch to AutoSavvy through the surveys we conducted. * Fleets like Easycabs and Meeru are delighted by the concept and have agreed in principal to switch over to us. * MyTVS will supply parts, through a dealership relationship. * Arvin Solutions will provide cheaper process/technology solutions. * The demand is more than the capability of our competitors, hence we can capture a good market share. * We are received Letter of Intent from Maruti to setup authorized service center at Kamareddy. This will operational in 2 months time.

The Market Estimated market size, growth, trends and maturity for the business idea * Current size of the automotive service market in India is estimated at INR 40,000 crores to INR 50,000 crores. * CRIS INFAC is forecasting a 12-15% annual growth in the passenger car sales. * Sales of passenger cars and utility vehicles have grown at 12% CAGR over the last decade. * This business idea will take advantage of the fact that this segment is highly unorganized in the current form and future c competition is expected to follow a similar trend, since the founders are from a same industry hence their perspectives will remain same. Market segment served are a. Consumer segment b. Car rental services c. Corporates d. Govt. agencies Potential in the market for the service • There is a huge potential to scale up, due to rising demand and unfulfilled gaps. Market share projections • Around 7000 vehicles get serviced or repaired at Hyderabad everyday and we plan to capture at least 10% of market share. •

The segment is highly fragmented and dealers are able to retain only 15% of the customers after warranty.

•

Branded Multibrand companies like MyTVS, Firstchoice, Bosch and Carnation has a 10% share combined, since customers prefer local garages.

Indian Market with Key Segments

Region / Market

Market Rank

Indian Rupees

% Share

Dealers

2

NA

30

Multibrand

3

NA

10

Local Garages

1

NA

60

Customers Profile of the optimal customer * Customers servicing their cars with dealer workshops / branded workshops and local garages. Value proposition to customer * Car service at customers convenience * Transparency in billing and repair * Reduction in turn around time by 50% Customers acceptance * Customers have accepted our services during the survey conducted, recordings available. * Meeru cabs and Easy cabs have agreed in principal to switch over to AutoSavvy Example of a customer MNC employees, Upper middle class families and Car Fleets.

Competition and Advantage The direct and indirect for our company and its service. * Direct competition * Carnation * MyTvs * Mahindra First Choice * Car Dealers * Local Garages * Indirect competition on spare parts and accessories sales * Car Dealers * Local shops * Spares / Accessories Distributors Strengths:

* Employee - Morale / Recruitment / Retention * Retained clients / Value Addition / Personal reputations * Technology/Six Sigma–quality control and Training

Weakness

* Soaring healthcare cost of labour * Car-aftermarket in Hyderabad is young - Lack of experts.

Opportunity

* Highly unorganized segment. * Demand higher than capability. * Car dealers are able to retain only 15% of customers post warranty

Threat

* Carnations heavy investment to capture the market. * Traffic congestions

Competition and Advantage

Our service is different from the competition. * Six Sigma is unknown to the car-aftermarket segment in India. * Rigid mindset restricts the flexibility of the current competitors. * Live streaming of videos of the car getting repaired is unique. * Our CRM tool connects to performance management system thereby bringing in the factor “EARN WHAT YOU DESERVE”. time.

* Repair Tree is not available with any competitors, though they have repair manuals it will not help reduce the turn around * AutoSavvy will compete well by focusing on convenience and offering a high level of customer service. We believe that the customers will buy our service over the competition because: *

Middle and upper class customers to whom AutoSavvy will focus its services are less price sensitive as they value the convenience of quick turnaround and high quality of services.

*

Round the clock service is available only with First Choice, However our mobile team during nights can still reach the customers sooner.

* Our pricing strategy for customers without insurance will help attract more business from local garages. *

Our pricing will be 40% cheaper over the competition.

* We will adopt a different approach for customer who prefer local garages. The focus will be on repair rather than replace.

Competitive Comparison Product

Advantages

Disadvantages

Dealer-Workshops

Spare part Availability

High cost of service

My TVS

Lower cost of Service

Flexibility in operational hours

Car Nation

Lower cost of Service, Flexibility operational hours.

Traditional methods of operation.

Any Local Garage

Lower cost of Service

Spare part availability and Scalability

Auto Savvy

Flexible operational hours, Lower cost of service, Transparency in billing & repair and excellent Turn Around Time.

Brand value. Lower Investments.

Feature Auto Savvy My TVS Carnation First Choice Car Dealers Local Garage

Operational support 24/7 Communication

Value added services

Quick Turn Around Time

Transparency and Reliability

Business Model and Marketing Plan

• Overall business strategy •AutoSavvy will focus its sales strategy on effectively reaching the target customer segment of upper and middle class offering them 40% cheaper service over the competition * The company generates revenue car general servicing, Body repairs, Collision Damage repairs and spare parts sales * The Sales cycle as per industry standards is 16 hrs, but due to our mobile model, it will be reduced to 8 hrs. * We have word of mouth marketing strategy. * Our mobile mechanics and 20 tiny units will improve our visibility. • Marketing Plan * We will reach the customer through paper advertisements initially and then through internet, blogging and our mobile mechanics. * Service will be delivered through mobile mechanics * 24/7 Spare Part / Accessories sales will done through mobile mechanics and to other workshops. • Customer support. * A strong workforce of 370 mechanics will work in 3 shifts. * A dedicated team of 10 service advisors will focus on customer support and will conduct initial probing over the phone. * The escalation model will require customer relationship managers involvement frequently.

Management Team and Advisors Credentials, proven track record, domain experience * Abraham Simons – DECE, MCSA, CCNA, Documentation specialist. Asst. Director UBS – People & Process Mgmt - 12 yrs exp * Krishna Bhushan – AMIE (Mech) Expansion Manager (A.P) MyTvs, 14 yrs exp - car aftermarket, Leadership team * Richard Swaminathan – BE (Auto) Owner Tata service center and Autocare at Pune, Auto after-sales. 18 yrs exp. *

Vinod Vattipally - MCA, PMP, CLP, GB – six sigma. Delivery Lead CSC – Project & Delivery Mgmt. 12 yrs exp.

These are credentialed experts •Balraj Chetty, R. Madhusudhan, Syed Rahman. Director and Advisors * Ashok Sanghi – Professor pearl school of Business 30 yrs exp in Industry consulting.

Financial Projections

• Calculation of capacity is at 65% average. • Distribution of Spares and accessories will create better margins. •

Major facts and assumptions based on the survey done by a reliable source data is available with Co-Founder. *

Financials base on assumption that will capture 5% of the market share

*

7000 cars get serviced or repaired everyday in Hyderabad

*

Car Aftermarket in India is highly unorganized.

*

Gross Margins on accessories sales is more than 200%.

*

Capacity of our workshops calculated at 50%

*

Our competitors believe they are transparent and reliable.

Financial Projections: Income Statement Summary 2010

2011

2012

2013

Revenue

303.79

373.89

420.63

467.37

COGS

126.46

140.99

155.41

169.94

Gross Profit

177.32

232.90

265.22

297.42

85.36

93.89

103.28

113.61

118.81

156.04

177.69

199.27

Operating Expenses Net Income / Loss

Funding

Funding received by the company till date The startup company hasn’t received any funding till date. * Company is looking for angle funds * Other Options include Pvt. Banks, Private investors. * We require 100 Lacs funds to start with. Funds will be used towards * Purchase of Machineries * Operating expenses * Inventory * Establishing spares and accessories distribution * Expansion to Chennai and Bangalore • Key value-building milestones * Expansion * Patented AutoSavvy Repair Tree * Research on Latent needs of car owners. • Anticipated future funding needs of the company? * 5000 Lacs additional funds required for expanding to North and West Zones during the 3rd year. • Exit strategies for the company? * IPO • Expected ROI * Expected ROI is 10X in 4 to 5 years, higher ROI is possible if we expand to other cities in India and through sales of accessories.

Startup Budget / Use of Proceeds First Year Budget (One year)

Cost (in Rs. Lacs)

Salaries

72.0

Repairs & Maintenance

6.1

Working Capital

25.0

Land Rent and Shed

15.0

Equipment & Machineries

55.6

Total

173.7

Timeline of Milestones NOV

Idea Primary Research Feasibility Analysis Relationships Secured Business Plan Funds Raised Pilot Phase Neighborhood Mkt. Initial Contracts

DEC JAN

FEB

MAR

APR

MAY

JUN

JUL

AUG

SEP

OCT

Summary

* Demand for car servicing is growing and with sustained efficiencies we can grow faster than the competition * Introduction of mobile repair, AutoSavvy repair tree and customers latent needs is unique to this segment * Usage of technology, Quality tools, reach the customer strategy, pricing strategy and distribution channel. * Understand the customer like no one else did before, building a strong network of loyal customers and reducing sales cycle by 50%. * AutoSavvy Repair Tree, Customer loyalty Index * We have people from Automobile, ITES and Quality industries creating the strongest combination possible in this segment