1. Project of Business, Entrepreneurship and Management on developing an innovative business idea Presented by students of B.A. Economics(H) I year section- 1 Hans Raj College Faculty - Mrs. Meghna Malhotra

2. The Smokeless Stove

3. COMPANY Market Strategy Financial Analysis Management Product Eco-friendly, Multipurpose Smokeless stove TO be Founded in 2014 Profitable from 1st year Capital of Rs 1,45,000

4. COMPANY Market Strategy Financial Analysis Management Product

5. COMPANY Market Strategy Financial Analysis Management Product Start-up

6. COMPANY Market Strategy Financial Analysis Management Product Apnibhatti uses paddy husk, which is cheaply available, as fuel and gives a smokeless flame. The walls of this stove have been insulated using brick made from special clay, which reduce heat loss and hence increase efficiency What it is and how it works Easy availability and procurement of raw material. Low cost of production per unit. Energy efficient stove that consumes 400 gms of paddy husk which provides bright and consistent flame for 45 minutes whereas the competitor’s product being weighed 4 kg. It needs about one kg husk per hour Advantages to Producer Efficient, light weight and portable Adapt itself to versatile cooking needs Could be used as a heater as well. Advantages to Consumer

7. COMPANY Market Strategy Financial Analysis Management Product GAP analysis Oorja, a similar product being sold in Madurai Has a cost price of Rs 675 as opposed to Apnibhatti’s Rs 550 Oorja uses a battery and a fan which is an added cost

8. Target Audience Rural areas preferably with high paddy cultivation will be scouted and product marketed Slum areas in cities with severe power cuts Customer’s View of Product Would want to see people buying the product as doing an investment as this reduces the cost of kerosene used in conventional stoves Uses paddy therefore eco-friendly and produces less smoke Reducing the use of non-renewable sources of energy like kerosene, etc. Emotional attachment with people who were earlier not able to use stoves because of prices of kerosene COMPANY Market Strategy Financial Analysis Management Product

9. COMPANY Market Strategy Financial Analysis Management Product A pilot project will be launched across 10 villages in Nalanda district of Bihar. Under the pilot project we will roll out 1 stove per village at the initial cost of production Rs. 400 to check on customer response / preference and for product testing As part of the official launch, we intent to sell 50 units in one month & will be sold across Nalanda district at a price per unit of of Rs. 550 After assessing general sentiments on viability and satisfaction, we plan to expand it across 45,073 small towns and villages across Bihar at the same selling price per unit where we target the average income household relative to the per capita income of Rs. 16,119 as per the 2009-10 data by the finance ministry of Bihar state government The promotional strategy involves biweekly classifieds in a leading Hindi newspaper Dainik Jagran, fliers and word of mouth publicity. Van operations and wall painting. Total budget allocation for promotion and advertising would be Rs. 2,00,000 PLACE, PROMOTION AND PRICING

10. COMPANY Market Strategy Financial Analysis Management Product IPO or investment by PE funds Out of Reach in initial years Business Merger Complement another related company Business Buyout Build up the business by integrating with another similar company Business Acquisition Interest buyers through CSR options Exit Strategy (Possible Options)

11. COMPANY Product Market Strategy Financial Analysis Management Initial management by self employed entrepreneurs Privately held company with board for corporate governance Independent directors – experts from rural field Promoters from rural areas, who understand customers needs Flat organization, with playing captains Tie-up with micro financing companies for financing, and with IFFCO for distribution tie-ups. Explore options with Govt for subsidizing consumer cost to promote ‘go green’ objective and to save fuel.

12. COMPANY Market Strategy Financial Analysis Management Product Year 1Year 2Year 3 Sales4195 units 55007500 Total Sales @ Rs 550 per stove Rs. 25,17,000Rs. 33,00,000Rs. 45,00,000 Direct Cost of Sales @ Rs 400, Rs 350 above 5000 pieces, Rs 375 for year 3 Rs. 16,78,000Rs. 19,25,000Rs. 28,12,500 Projected Sales

13. COMPANY Market Strategy Financial Analysis Management Product Projected Profit & Loss Statement

14. Thank You