MANAGEMENT

CONSULTING

TEAM EXERCISE-2

ELEVATOR GROUP - 03 (SEC-B)

PITCH
SIDDHARTH CHAUDHARY PGP18238
ARIJIT SAHA MBA19179
DEV ANAND MBA19187
DEVA NIKHIL DANTULURI MBA19188
RAHUL SINGH MBA19220
VIVEK KEDIA MBA19244
Hello Mr. XYZ, I am ABC from Kashipur Consultancy B03. I was hearing your speech
and I have to say I am very impressed by the way you are handling Kashipur Industries.
I heard that you are looking to expand into new verticals. I have an excellent plan if you
would like to listen.

Farmers usually use different sets of expensive machinery for different purposes like
Levellers, Trailers, Threshers, thus further reducing the low level of income they already
obtain. We can develop a multi-utility tractor with usability for the entire crop life cycle
with affordable prices to marginal farmers. These tractors costly only the rate of a power
tiller (roughly 2L) and literally can do all the work a famer needs for the entire crop
cycle. This reduces the labour cost of farmers by 50% and the total input cost by 40%,
thereby increasing income of farmers by 1.8 times. The size of the tractor is almost
comparable to a power tiller thus it will not hamper crop intensity.

Since we already have experience in manufacturing automobile components, setting up

and operating this factory would not be an entirely new proposition. This project will
generate a profit margin of about 10% if each unit is sold at INR 2 lakhs and we are able
to sell 5000 units over 2 years. The initial plant set up costs would be around 80 crores
while the cost of producing would be around 50 crores. We already have potential
customers for this, our current suppliers for processed Agri inputs. They need to plough
the land which is currently a labour intensive and time-consuming process. Our machine
would help them which in turn would mean higher supply to another business segment
of ours. A win-win situation.

Let me know if this an expansion vertical you are interested in. We can setup a detailed
meeting and take this idea forward.