Professional Documents
Culture Documents
“BLIND TORCH”
Submitted to
Submitted by
H S PRAJWAL
(01JST20PCF013)
JSS MAHAVIDYAPEETHA
JSS CENTRE FOR MANAGEMENT STUDIES
JSS SCIENCE AND TECHNOLOGY UNIVERSITY
JSS Technical Institutions Campus, Mysuru 570006
JSS Science and Technology University
2022
DECLARATION
CERTIFICATE
3
ACKNOWLEDGEMENT
I would also like to express my gratitude Dr. Swaroop Simha Professor and Head
od Department, JSS Center for Management Studies, Mysore for always being a
great source of inspiration for providing me a congenial environment for carrying
out the Entrepreneurship report.
I express my heartfelt thanks for Dr. Suresh Acharya Assistant Professor JSS
Center for Management Studies, Mysuru who was also my guide for report
presentation. Dr. Suresh Acharya has always been very responsive in providing
necessary information, and without their generous support, the plan would lack in
accurate information on current developments.
4
LIST OF CONTENTS
1 Executive Summary 7
5 Marketing Plan 13
7 Appendices 17
Total 29
5
Contents
EXECUTIVE SUMMARY .......................................................................................................................... 7
INTRODUCTION: ....................................................................................................................................... 8
PRODUCT: ................................................................................................................................................... 8
Product Features: ...................................................................................................................................... 9
Product impact: ....................................................................................................................................... 10
Competition: ........................................................................................................................................... 10
Target customers: .................................................................................................................................... 10
Place: ....................................................................................................................................................... 11
Price: ....................................................................................................................................................... 11
ORGANIZATIONAL PLAN: .................................................................................................................... 12
Vision: ..................................................................................................................................................... 12
Mission: .................................................................................................................................................. 12
Organizational structure: ......................................................................................................................... 12
MARKET PLAN: ....................................................................................................................................... 13
Market analysis: ...................................................................................................................................... 13
Market Size Estimation: .......................................................................................................................... 14
Swot Analysis: ........................................................................................................................................ 15
SUMMARY OF FINANCIALS ................................................................................................................. 16
Assumption ............................................................................................................................................ 16
APPENDICES: ........................................................................................................................................... 17
Calculation of Revenues ......................................................................................................................... 17
Calculation Of Fixed Expenses ............................................................................................................... 18
Calculation Of Variable Cost .................................................................................................................. 19
Calculation Of Depreciation: .................................................................................................................. 20
Calculation Of Cashflows: ...................................................................................................................... 21
Investment:.............................................................................................................................................. 23
WACC Calculation: ................................................................................................................................ 24
Interest Payments:.................................................................................................................................. 24
NPV Calculation ..................................................................................................................................... 26
Payback Period Calculation ................................................................................................................... 28
6
EXECUTIVE SUMMARY
Blind Torch is dedicated to giving back to society. The aim of this venture is to develop an
Efficient and Economical Device for Persons with Disabilities, so they can go about their lives
with more confidence and speed. Blind Torch is a social venture that is dedicated towards the
upliftment and empowerment of the specially-abled population.
Blind torch is an innovative product which can be used to sense the surroundings by the visually
impaired people, which will help them in navigate into their dark world.
7
INTRODUCTION:
Visually impaired persons have difficulty to interact and feel their environment. They
have little contact with surroundings. Physical movement is a challenge for visually
impaired persons, because it can become tricky to identify obstacles appearing in front of
them, and they are not ableto move from one place to another.
They depend on their families for mobility. Their mobility opposes them from
interacting with people and social activities. Researchers have worked for decades to
create an intelligent and smart stick to help and alert visually impaired people. Impaired
persons from obstacles and give information on their current location Over the last
decades, research has been conducted for new devices to design a good and reliable
system for visually impaired persons to detect obstacles andwarn them at danger places.
The disadvantages suffered by blind people do not mean to sacrifice their life expectancy
but must also be an encouragement to struggle in their life. Therefore, someone with
visual impairments needs assistance by providing substitutes for their eye function,
namely the visual function. In addition to the usual sticks used, which are aids with the
sense of touch system, the blind also needs a switch for their sense of sight, so that the
ultrasonic and sound sensors can be used by the user.
Blind Torch is technical, economical, smart solution for visually impaired people. It is
device which detects the obstacles in their path while walking. It is like a virtual stick.
PRODUCT:
Two distance sensors detects obstacles horizontally as well as vertically and gives all
data to the controller and controller read the data and response through vibrating motor
and buzz sound. Herethere are 2 modes a) indoor and b) outdoor.
a) indoor: if distance less than 80 cm- then one motor is vibrating; if distance less
than 60 cm- then two motors are vibrating; if distance less than 30 cm- then three
motors are vibrating.
8
b) outdoor: if distance less than 200 cm- then one motor is vibrating; if distance less
than 120 cm- then two motors are vibrating; if distance less than 60 cm- then
three motors are vibrating. Here indoor helps people in their inner visually dark
world and outdoor can help them to crossing the road alone, help them in
mobility and navigation.
Here, another sensor detects the vertical distance: level of ground and response
according the programming; when blind torch is ON, it detects the average ground
distance or restart torch-it to detect average ground distance and it stores in controller
and while walking the distance from ground to torch remain constant up to step up or
pot hole is there. When pot hole is there the distance measure from ground to torch it
increases then controller reacts via Buzz sound and when step up is there the distance
between ground and torch decrease so the controller reacts via vibration at the end of
torch.
Last and most important advantage is the blind torch can easily fit on the cane, and it
gives the more reliable function that the user uses their stick also and become smart.
Here another switch istheir which converts the torch-it virtual cane to a torch-it cane.
Product Features:
1. Simple to use- simple to use one push switch
6. Water & Shock resistant – The product is shock and water resistant
9
Product impact:
1. Collision and injury prevention.
3. Increase participation.
Competition:
Major players operating in the global visual impairment market include Ray Electronic
MobilityAid, UltraCane, smart cane, k-sonar_ultra cane.
Target customers:
This are the target customers who manufactures and sells the blind sticks.
10
Place:
The product will be manufactured in Karnataka, which has a good transport and raw
material Supply to manufacture blind troch and which will be supplied to target
customers.
Price:
Pricing is the process where a business sets the price at which it will sell its products and
service, here the price of blind torch will be affordable yet competitive pricing strategy will
be followed.
11
ORGANIZATIONAL PLAN:
Vision:
Our vision is the formation of a better community or a platform for our Spatially
Enabled people where they will feel much more comfortable, more confident in their
mobility.
Mission:
Our mission is to reach visually impaired people, and explain them the working of
BLIND TORCH and how it would bring light to their virtually dark world. We target
to reachthem by collaborating with numerous blind stick manufacturing company.
Organizational structure:
CEO
SKILLED LABOUR
MACHINE
OPERATOR
CHIEF MEDICAL
OFFICER
12
MARKET PLAN:
Market analysis:
The global visual impairment market is estimated to be valued at US$ 4,362.8 million in
2020 andis expected to exhibit a CAGR of 8.1% over the forecast period (2020-2027).
The assistive technologies for the visually impaired market are growing at a lucrative
rate owing to rising disability rate and unemployment among the same. About 15% of
the world’s population lives with some form of disability, of whom 2-4% experience
significant difficulties in functioning.According to a report published by the world health
organization (WHO), One-fifth of the estimated global total, or between 110 million and
190 million people, experience significant disabilities.
Figure 1. Global Visual Impairment Market Share (%) in Terms of Value, By Region, 2020
In figure1 the global visual impairment market share is more in north America that is
39.4%.thetotal growth of the market is 8%.
The increasing prevalence of visual impairment & blindness is a major factor
responsible for growth of the global visual impairment market. For instance, as per
World Health Organization (WHO), at least 1 billion people had a near or distance
vision impairment globally in 2019.
13
refractive error, glaucoma, cataract, and age-related macular degeneration is projected to
increase the number of visually impaired people globally, thereby fueling demand for
assistive technologies in visual impairment. This will, in turn, drive growth of the global
visual impairment market. For instance, as per World Glaucoma Association, it is
estimated that 79.6 million individuals will have glaucoma in 2020. This number is
likely to increase to 111.8 million individuals in 2040.
Figure 2. Global Visual Impairment Market Share (%), by Product Type, 2020
14
Swot Analysis:
1. Strengthens:
• Society welfare
• Updated system
• Environmentally friendly
• Collaboration
2. Weaknesses:
• Brand
• Weight
• Society awareness
3. Opportunities:
4. Threats:
• Competitors
15
SUMMARY OF FINANCIALS
Investment: Rs.9,000,000
D/E Ratio 0.44: 1
Firm Equity
NPV Rs 16,746,721 Rs (2,298,532)
Discount Rate 11.97% 9.77%
IRR 1.48% 13.45%
Payback period 6 year 8 months 6 year 3 months
Assumption
The investment of the project is Rs 90,00,000 the debt equity ratio is 0.44:1 in which Rs
2,750,000 is debt and 6,250,000 is equity. Assuming the risk-free rate is taken as 6.74% and
equity risk premium is 2.50% and tax is 20% the full capacity of the plant is unit per day.
Initially, for one complete year potential of utilization capacity is noted. Subsequently increases
in capacity utilization until final year. The price of one unit is Rs 4,800. The maintenance cost is
assumed as Rs 60,000, water and internet charges as assumed as Rs 36,000, Transportation
charges is assumed as Rs 1,20,000 and Electricity charges is assumed as 2,40,000 annually.
Investment in land is assumed as 50,00,000. The cost of two Machines is 5,00,000 and 6,00,000.
The building cost is 15,00,000. The market growth of blind devices is 8% and assumption of
growth is 4% for 1st to 3st year and 4th to 5th is 5% growth and from 6th year 3% growth for the
rest.
16
APPENDICES:
Table 1
Calculation of Revenues
Revenues 1st year
Months 1 2 3 4 5 6 7 8 9 10 11 12 total
Revenue Calculations
SELLING PRICE
Unit price of torch 4,500 4,500 4,500 4,500 4,500 4,500 4,500 4,500 4,500 4,500 4,500 4,500
unit price of charger 300 300 300 300 300 300 300 300 300 300 300 300
Total Revenue of torch 450,000 675,000 540,000 585,000 450,000 630,000 675,000 495,000 495,000 540,000 630,000 675,000
Total Revenue of charger 30,000 45,000 36,000 39,000 30,000 42,000 45,000 33,000 33,000 36,000 42,000 45,000
Total Revenue 480,000 720,000 576,000 624,000 480,000 672,000 720,000 528,000 528,000 576,000 672,000 720,000
production assumption y2 y3 y4 y5
growth 0.0400 0.0400 0.05 0.05
1st year total product 1,581 1,644 1,726 1,813
From y6 3% growth for rest
REVENUES OF 2ND TO
5TH YEAR
2 YEAR 3 YEAR 4 YEAR 5 YEAR
17
Table 2
Calculation Of Fixed Expenses
Fixed Expenses 1 2 3 4 5 6 7 8 9 10 11 12 TOTAL
COST
Maintenance 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 60,000
Electricity 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 240,000
Transportation 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 120,000
Water & Internet 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 36,000
total 456,000
total wages for year 286,000 286,000 286,000 286,000 286,000 286,000 286,000 286,000 286,000 286,000 286,000 286,000 3,432,000
18
Table 3
Calculation Of Variable Cost
Variable Expenses
Units = 1520 1,581 1,644 1,726 1,813
Variable Cost 1ST YEAR Unit Cost Units Cost year1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
ultrasonic sensor ₹ 80.00 1,520 121,600 126,464 131,523 138,099 145,004
arduino pro mini(MICROCHIP) ₹ 400.00 1,520 608,000 632,320 657,613 690,493 725,018
wires ₹ 70.00 1,520 106,400 110,656 115,082 120,836 126,878
buzzer ₹ 20.00 1,520 30,400 31,616 32,881 34,525 36,251
9v battery ₹ 150.00 1,520 228,000 237,120 246,605 258,935 271,882
plastic/KG ₹ 70.00 456 31,920 110,656 115,082 120,836 126,878 (Plastic 300 g for 1 unit)
TOTAL COST 1,126,320 1,248,832 1,298,785 1,363,725 1,431,911
19
Table 4
Calculation Of Depreciation:
Depreciation
Fixed Assets
Value Depreciation
(WDV) 1 2 3 4 5
Machinery( plastic injection moulding 500,000 15% 75,000 63,750 54,188 46,059 39,150
Machinery (PCB printer) 600,000 15% 90,000 76,500 65,025 55,271 46,981
0land 5,000,000
20
Table 5
Calculation Of Cashflows:
Cash
Flows
EBIT 1st Year
1 2 3 4 5 6 7 8 9 10 11 12 Annual
Revenues 480,000 720,000 576,000 624,000 480,000 672,000 720,000 528,000 528,000 576,000 672,000 720,000 7,296,000
Cost of Goods 93,860 93,860 93,860 93,860 93,860 93,860 93,860 93,860 93,860 93,860 93,860 93,860 1,126,320
Gross Profit 386,140 626,140 482,140 530,140 386,140 578,140 626,140 434,140 434,140 482,140 578,140 626,140 6,169,680
Operating
Expenses
Employee Salary 286,000 286,000 286,000 286,000 286,000 286,000 286,000 286,000 286,000 286,000 286,000 286,000 3,432,000
Maintenance 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 60,000
Electricity 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 240,000
Transportation 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 120,000
Water 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 36,000
Depreciation 26,250 26,250 26,250 26,250 26,250 26,250 26,250 26,250 26,250 26,250 26,250 26,250 315,000
Total Operating 350,250 350,250 350,250 350,250 350,250 350,250 350,250 350,250 350,250 350,250 350,250 350,250 4,203,000
Expenses
EBIT 35,890 275,890 131,890 179,890 35,890 227,890 275,890 83,890 83,890 131,890 227,890 275,890 1,966,680
21
EBIT 2ND TO 5 YEARS
YEAR 2 YEAR 3 YEAR 4 YEAR 5
Revenues 7,587,840 7,891,354 8,285,921 8,700,217
Cost of Goods 1,248,832 1,298,785 1,363,725 1,431,911
Gross Profit 6,339,008 6,592,568 6,922,197 7,268,307
Operating
Expenses
Employee Salary 3432000 3432000 3432000 3432000
Maintenance 60,000 60,000 60,000 70,000
Electricity 240,000 240,000 240,000 240,000
Transportation 120,000 120,000 120,000 120,000
Water 36,000 36,000 36,000 36,000
Depreciation 275,250 240,713 210,681 184,546
Total Operating 4,163,250 4,128,713 4,098,681 4,082,546
Expenses
EBIT 2,175,758 2,463,856 2,823,516 3,185,761
22
Table 6
Investment:
investment
land 5,000,000
total project value 3,000,000 0.75 2,250,000
working capital 1,000,000 0.5 500,000
total investment cost 9,000,000 2,750,000
Injection 6,250,000
WACC Calculation
Cost of Equity
risk free rate 6.74%
Equity Risk Premium 2.50%
Beta 1.21
Cost of Equity 9.77%
Corporate Tax 20%
23
Table 7
WACC Calculation:
Calculation of WACC
WACC D/E Ratio Pre Tax After Tax
Debt 0.44 31% 11% 8.80% 2.69%
Equity 1.00 69% 9.77% 9.77% 6.78%
9.47%
2.50%
WACC 11.97%
Table 8
Interest Payments:
YR I 0 1 2 3 4 5 6 7 8 9 10 11 12 Annual
Closing Balance 2,750,000 2,720,208 2,690,144 2,659,803 2,629,185 2,598,286 2,567,103 2,535,635 2,503,878 2,471,831 2,439,489 2,406,851 2,373,914
Monthly Interest 11% 0.009167 0.009167 0.009167 0.009167 0.009167 0.009167 0.009167 0.009167 0.009167 0.009167 0.009167 0.009167 0.009167
Interest/month 25,208 24,935 24,660 24,382 24,101 23,818 23,532 23,243 22,952 22,658 22,362 22,063 283,914
Principal Paid 29,792 30,065 30,340 30,618 30,899 31,182 31,468 31,757 32,048 32,342 32,638 32,937 376,086
INT+Princial 55,000 55,000 55,000 55,000 55,000 55,000 55,000 55,000 55,000 55,000 55,000 55,000 660,000
/month
24
YR 2 TO 5 Y2 Y3 Y4 Y5 TOTAL
Closing Balance 2,340,977 1,938,484 1,491,717.2 995,806.15
5
YEAR Interest 0.11 0.11 0.11 0.11
INTEREST/YEA 257,507 213,233.24 164,088.90 109,538.68 1,028,282
R
Principal Paid 402,493 446,766.76 495,911.10 550,461.32 2,271,718
INT+Princial 660,000 660,000 660,000 660,000 3,300,000
/month
25
Table 9
NPV Calculation
NPV & IRR Calculation
Cash Flow from operation - 1 2 3 4 5
Revenue (9,000,000) 7,296,000 7,587,840 7,891,354 8,285,921 8,700,217
Variable Expense 1,126,320 1,248,832 1,298,785 1,363,725 1,431,911
Other Operating Exp (exclude interest) 4,203,000 4,163,250 4,128,713 4,098,681 4,082,546
Interest Expense 283,914 257,507 213,233 164,089 109,539
Profit or loss before taxation 1,682,766 1,918,251 2,250,623 2,659,427 3,076,222
Accumulated loss - - - - -
Taxes 336,553 383,650 450,125 531,885 615,244
Profit after tax 1,346,213 1,534,600 1,800,498 2,127,542 2,460,977
Cash Flow Summary
EBITDA 2,281,680 2,451,008 2,704,568 3,034,197 3,370,307
Less
Interest 283,914 257,507 213,233 164,089 109,539
Principal Payment 376,086 402,493 446,767 495,911 550,461
Taxes 336,553 383,650 450,125 531,885 615,244
NET Cash Flow 1,285,127 1,407,358 1,594,444 1,842,311 2,095,062
EBIT (1-T) 20% 1,346,213 1,534,600 1,800,498 2,127,542 2,460,977
Add Depreciation 315,000 275,250 240,713 210,681 184,546
Cash Flow from operation 1,661,213 1,809,850 2,041,211 2,338,222 2,645,524
Working Capital 1 2 3 4 5
Account Receivable @ 30% of rev. 2,188,800 2,276,352 2,367,406 2,485,776 2,610,065
Inventories - - - - -
Account Payable @40% of variable 450,528 499,533 519,514 545,490 572,764
Level of Working Capital exclude cash 1,000,000 1,738,272 1,776,819 1,847,892 1,940,287 2,037,301
26
Changes in working Capital (738,272) (38,547) (71,073) (92,395) (97,014)
Ratio 2,188,800 2,276,352 2,367,406 2,485,776 2,610,065
Ratio Current Asset to Current Liability 4.86 4.56 4.56 4.56 4.56
Calculate NPV
Total investment 9,000,000 - - - - -
FCF(EBIT*(1-T)+DEP+CHANG IN WC) (9,000,000) 922,941 1,771,303 1,970,138 2,245,828 2,548,509
PV of FCF 831,478 1,437,629 1,440,548 1,479,396 1,512,416
PV of Forecast Flows 6,701,468
NPV (2,298,532)
27
Table 10
Payback Period Calculation
28
Payback period for Equity
YEAR CASH Cash Flow Cumulative
FLOW Discounted Cash Flow
0 6250000
1 922940 922941
2 1771303 2694244
3 1970137 4664382
4 2245827 6910210
5 2548509
29