Automobile Spare Parts 2p5xj

PROJECT PROFILE ON TWO WHEELER AUTOMOBILE SPARE PARTS RETAIL 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 enger Vehicle (PV) segment has 13% market share. Domestic sales of enger 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 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

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

Rate Total Amount per Annum

Total

54,00,000 / per annum

Project Cost / Capital Investment S.No Description 1 Fixed Capital 2 Working Capital for 1 month 3 Preliminary & Properative Expenses

Amount Rs. 2,10,000 7,85,000 5,000

Total Project Cost

10,00,000

Means of Finance S.No 1 2 3

Description Promoter Contribution Subsidy/Soft Loan Term Loan Total Project Cost

% Age

Amount Rs.

25% 35% 40%

2,50,000 2,62,500 4,87,500 10,00,000

A. Fixed Capital 1. Land & Building

Advance to Shop

Rs. 40,000

2. Furniture and Equipment S.No 1 2 3 4 5 6 7 8 9

Description

Qty. 24 20 1 4 1 10 4 1 1

Furniture- Iron Racks Card Boards Front Desk & Chair Chairs & Stools Computer with Printer Electrical Lights Electrical Fans Oil Board Handle Stand Bar

Rate 2,000 1,000 30,000 500 50,000 200 1,500 8,000 4,000

Amount Rs. 48,000 20,000 30,000 2,000 50,000 2,000 6,000 8,000 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

5. S.No 1 2 3 4

3000

Total Working Capital (per month) Description Rent Spare Parts, Lubricants and Salary & Wages Utilities Other Expenses

Amount Rs. 10,000 7,85,000 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 Total Working Capital 2 Depreciation 3 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

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5. Break Even Point

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Rs.