http://www.allbusiness.com/business-finance/business-loans/347847-1.

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The Financial Express recently reported that India's Bank of Baroda (BoB) has launched a
new "innovation" program that offers loans of up to 25,000 rupees (approximately $573) to
help customers purchase compressed natural gas (CNG) kits for retrofitting old diesel
vehicles.

According to the newspaper, a CNG kit typically costs between 15,000 and 25,000 rupees
(approximately $343 and $573). The Financial Express noted that customers that receive a
BoB loan must contribute 15 percent of the cost of the CNG kit.

"With the government coming down strongly on pollution by enforcing Euro-II emission
norms, CNG has emerged as a clean alternative to petrol," said BoB general manager Dinesh
Parikh. "Our bank sees tremendous growth potential in this loan product."

(FINANCIAL EXPRESS: 2/24)

Bank of Baroda to finance CNG kits for

cars
Posted: Friday, Feb 25, 2005 at 0034 hrs IST
Tags:

Banks are stretching their imagination on product innovation that bit by getting into the
business of financing upgradation of cars!

Bank of Baroda (BoB) has taken a lead in this regard by seeking to offer loans to owners of
old four-wheelers for installing compressed natural gas (CNG) kits.

This product “innovation” is on the lines of loans offered by banks for renovation of homes.

The CNG kit is authorised by the government and can be fitted into a petrol car at a cost of
Rs 28,000- Rs 30,000. The price of the kit ranges from Rs 15,000 at the lower end for a
locally assembled kit to Rs 25,000 for the imported kit.

The maximum loan amount that the bank will sanction is Rs 25,000 and the vehicle owner
has to chip in with 15% of the cost of the CNG kit.
According to Dinesh Parikh, general manager : “With the government coming down strongly
on pollution by enforcing Euro-II emission norms, CNG has emerged as a “clean” alternative
to petrol. Our bank sees tremendous growth potential in this loan product.”

Post-installation of a CNG kit, the car owner incurs a one-time cost of buying a new cylinder,
which costs about Rs 2,500-3,000. After that, he just has to recharge the cylinder.

While it affords the same mileage that petrol gives, the cost comes down by about 50%. And
it is absolutely pollution-free.

http://www.financialexpress.com/news/bank-of-baroda-to-finance-cng-kits-for-cars/127876/0
CNG Kit Loan:

Potential Customer Base:-

Existing Customer base

Dealer (Kit Fitting)

Customer Sample 50 who already fitted CNG kit.

Check register for the customer data

Who is the target market?
Customer Segment of MUL

 MARUTI 800
 MARUTI 800 AC
 MARUTI ALTO
 MARUTI ALTO K10 LXI
 MARUTI ALTO K10 VXI
 MARUTI ALTO LX
 MARUTI ALTO LXI
 MARUTI EECO 5 SEATER
 MARUTI EECO 5 SEATER WITH AC
 MARUTI EECO 7 SEATER
 MARUTI OMNI
 MARUTI OMNI 8 SEATER
 MARUTI WAGON R
 MARUTI WAGON R LXI
 MARUTI WAGON R VXI

Why Customer take loan for the CNG?

 It can go for the CNG if loan facility available( Verdhi Purpose)

 Customer can use that money for the accessory purpose.
 For the first two or three instalment payments.
 He can use it for the fuel purpose also.
 For the RTO and insurance purpose.

Step to capture the market:

 Tie up with CNG kit dealer

 Tie by the commission based with no. of business.
 Existing Customer who comes for the NOC for the CNG in the branch.
 Cold call to the existing customers who has not fitted CNG.

To do:-
Sample 50 customer
Customer list o f NOC
Meet to CNG kit dealer.