Background

Clean energy is the need of today’s world. The world is suffering from the energy crisis and
the existing

source of energy is too expensive. Fossil fuels are at its end stage and these fuels creating
environmental

problems like global warming, climate change, etc. The whole world is moving towards
renewable energy

sources which is cheaper and effective source of energy and solar power has stood in front
as the solution

to it. New technology has been developed to trap the alternative sources of energy of which
solar PV

technology is being mostly used worldwide to solve the present solution.

The increase in the load shedding in the context of our country Nepal is a major problem at
present. There

is uncertain to solve this problem until we depend on the existing source i.e.
hydroelectricity. So the time

has arisen to go for alternative like solar power. Most of the works in the government as
well as private

offices, banks, hospitals, hotels, etc are stopped due to this growing load shedding. There is
a need of

backup systems for them. At the household level, people are bound to stay in the darkness,
apart from

news, television, radio, water pumping problem in the valley and so on.

In the next 10 years there is no chance of getting rid of load shedding in Nepal. Similarly,
most of the

western part and hilly region of Nepal is not linked to the electricity grid. People living in
those part are

under hardship life. Some sectors like vaccines refrigeration, hospitals instruments and
equipments etc

essentially require electricity power for their operation.

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The people are afraid of investing in Nepal in the industrial and manufacturing sector due
to insecurity,

political instability, energy problems. They want quick return of their investment.
Investment in the

hydropower, factories, projects, etc is a long term return.

Realizing all of these problem, establishment of more Solar Companies is essential in Nepal.
The market

is growing up as well. At present Solar business in Nepal is like a hot cake. More number of
solar

companies providing efficient solar PV system is to be established to solve the present

problems. So with

these objective, this venture is proposed.

Introduction

Solar Energy Company Pvt. Ltd. is a form of organization which deals with the installation
and operation

of various systems to solve the problems of energy crisis in the present situation. It
provides back up

system in the present load shedding problems with minimum investment and long run
benefit. It is

situated at pulchowk, Lalitpur. The company will start its business from installation of
Solar home

system and expand its business to total solar solution in future.

A. Company name, address and phone number

Company name: M/S UMAMAHESWARA INTRATECH
Address: FLOT NO: G1,HOUSE NO : 1-10/3/G-1
MYTHRINAGAR,MADEENAGUDA,HYDERABAD,500050
Contact no: 8074482353
Email: umamaheswar.infratech@gmail.com

A. Solar energy company’s Business, Services and solutions

Solar Energy Company Private Limited presents the market with reliable, cheap and
convenient solar

2
solutions for the people suffering from load shedding problems. Our company deals with all
parts of solar

components and we basically serve solar facilities from survey to installation. SEC focuses
on

present load shedding crisis and promotion of green energy in our country.

Our service will work out on installation and maintenance of solar energy mainly on urban
area.

Promoting renewable energy our company will limit the uses of non renewable energy
which

will be environmental friendly.

B. Solar Energy Company’s Market

Initially SEC has targeted the Kathmandu Valley residents as primary customers. Offices
and

apartments are also among our customers. Kathmandu valley uses most of the electrical
energy

in Nepal. Due to load shedding problem, people are rundown from their social and
professional

life. This problem will be solved by our product and services. Our targeted customers have

knowledge about solar energy and its benefits.

Besides Kathmandu valley, we intended to expand our services outside the valley in near
future.

C. Competition and marketing Strategy

There are around 60 companies which are directly and indirectly related to our business.
Among them 30

companies focus toward rural areas and associated with government, so they are not head
to head

competitors. The remaining are companies which focuses on large organization and
residents in the urban.

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Since our company will be in large scale, we will adopt cost leadership marketing strategy.
To

promote our company different media like Advertisement media, newspapers, Business

magazines and Internet will be used. Besides we’ll be focusing on increasing the publicity of
our

business through activities like: sponsoring in public Medias, organizing campaign,

supporting

green energy program. Our company will provide flexible service to our customers in
financial

context by providing installment facilities. Since our company will provide small to large
scale

solar power installation, it will attract more customers with different potential. Our
company’s web page

will provide guidance and instruction to customer regarding our product and services
which will make

easy access to our company.

D. Financial forecast

SEC company requires capital of NRs. 250000 for the startup of its business. The amount
includes

administration, overhead, marketing costs and also meet short term working capital needs.
The capital

will be generated by equity of each of partners. The breakeven point is obtained at 177
units for the

starting year.

II. VISION AND MISSION STATEMENTS

A. Vision statement

‘to change Nepal Into a nation where solar energy provides power to everyday
needs.’

B. Mission statement

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The mission of Solar Energy Company Private Limited is to increase the quality of life
of people of

urban areas by eliminating the problems created by load shedding. For this, SEC
provides high tech, high

quality green energy alternative to home or office use.

Ç. Values and Principles on which business stands

✔ Load shedding should not be a problem to any person.

✔ Solar energy is a precious gift and we should take maximum benefit from it.

D. Competitive Advantage

SEC Company possesses significant competitive advantages over its competitors

because of the

following reasons:

•Installment facility is provided so that everyone can afford solar electricity.

•Run by electrical engineers so that each customer’s energy needs is precisely

calculated

to gain maximum efficiency.

•Proper customer care is provided by warranty and repair facility.

III. BUSINESS AND INDUSTRY PROFILE

A. Stage of growth : The solar electrification companies of Nepal at present are at an

infant stage. It

is in introductory stage but consciousness as well as needs of people is increasing at

a good rate

and the existing companies are getting popular among upper class of residents. We
think at this

rate, the popularity and the use of renewable energy will increase.

Our Company SEC is in the start up phase of business. As initial market we’ll serve
the

5
residential customer and offices. Then we will proceed to large organizations and
apartments after getting

publicity.

After covering our initial market, we are likely to attract the customers outside the
valley.

Besides we are planning to expand our firm that deals only with parts of solar
products.

B. Company Goals and Objectives

Goal: Our goal is to become the number one company in solar electricity business.

Objectives:

•To reach a target of installing 80 solar panels within the first 5 months.

•To spread our service out of valley within second year

C.Registration of the Company

According to the Company Act 2063:

This company is a partnership form of organization consisting of six members as

partners. All the rules

and regulations according to the general partnership organization are strictly

followed. The company will

be registered under the act of Small Scale Industry and is dedicated to fulfill all the
rules, regulation and

norms of the governing laws and rules. The documents required for registration
process are as follows;

a) Registration Form

b) Duplicate of the citizenship certificate of all members

c) Two pieces of passport size photos of all members

d) In case of rented building, the legal contract with the owner of the building

e) Legal contract among the parties to follow the act as per the general partnership

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f) Plans, policies, act, rules and regulations of the company to be followed by the
owners and the

employees and articles of the company

As the company’s total initial investment is about Rs.2500000. Hence, the

registration fees that

should be deposited is Rs 16000.

Apart from registration, the company is bounded by various other laws and
regulations under the

Company Act 2063 in terms of operation too. The company vows to abide by these
laws and

ensure that operation is in accordance to them and no breach occurs.

D. Industry analysis

1) Industry background and overview

The first commercial renewable energy company of Nepal was lotus energy founded
on 1993.Till now

there are about 60 companies which deal with solar energy. But among them, about
30 companies work to

provide energy to rural areas only and they are prequalified by Alternative Energy
promotion centre

(AEPC), Khumaltar, Lalitpur. They are NGOs and are funded by various rural
development projects. The

remaining also take rural areas as their primary target but they deal with urban
areas as well. We are the

company to take the urban areas as the primary consumers and this can be a real
opportunity. The demand

for green alternative energy in urban is constantly increasing as people are having a
hard time coping with

the problems caused by load shedding crisis.

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To tackle the load shedding crisis, there are companies which are providing other
forms of solutions such

as generator services and inverter services. For these solutions, the consumer must
spend constantly on

running costs such as cost for fuels and maintenance. Due to this high running cost,
people in urban areas

want something that is hassle free, and cheaper in long term. So they will be
attracted to our services.

2) Significant trends

The trend of existing renewable energy companies is to collect money from different
rural development

projects. None of the existing companies focuses on urban areas and hence they are
untapped

opportunities.

3) Growth rate

Currently lotus energy installs 15-20 systems per month in urban areas and this
number is increasing even

though lotus has no advertisement campaigns. This shows that this rate will increase
once people are

aware of the availability of such systems. Moreover, the main reason for people not
being attracted to

solar systems is due to the initial high cost. From our installment provision, people
will not be burdened

by initial high cost and hence sales will increase.

4) Key success factors In the industry

•Load shedding:

It has become a huge burden on the life style of urban people. People need other
sources of energy to do

8
their jobs as well as for recreation. Also, load shedding problem is forecasted to
continue and grow till the

next 10 years. So sooner or later, people will search for alternative sources.

•Renewable source of energy:

Solar energy is renewable source of energy and due to this reason customers are not
burdened by any

running cost. Once they install the system, they get energy for their lifetime without
having to pay any

penny.

•Pollution free energy:

Photovoltaic (PV) modules (Solar Panels) gives free and environment friendly
electricpower whenever

we want it. PV modules generate electricity directly from sunlight and their
operation is completely noise

and pollution free. Because they have no moving parts to wear and tear, they will
provide reliable power

for decades.

5) Outlook for the future

Presently in many developed countries, there are laws which enable people to sell
excessive electricity

generated from solar home systems to their regional electricity company. Similarly,
such types of laws are

being discussed to be applied in Nepal. This process might be completed in the

coming few years. So

after few years, demand for our products will increase rapidly.

IV. BUSINESS STRATEGY

A. Desired Image and Position in the Market

We would like to stand out in the solar market through our service and product
reliability. We want to be
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the customer’s first choice by creating positive public image through different media.
We want to create

an image of a company which provides green energy at cheap and easy installment
facility.

B. SWOT Analysis

SWOT Analysis for SEC is done as follows:

1. Strength

•Good quality of service

•Strong public relationship

•Highly skilled manpower

•Understanding and Unity among the partners

•Strong relation with the manufacturers

2. Weakness

•Inexperience

•Inadequate information about customer’s needs

3. Opportunities

•Load shedding

•Target customer are unsatisfied with current available services

•Promotion of renewable energy from government level

•Subsidies and tax credit on the solar products

4. Threats

•Political instability

•Existing competitors

C. Competitive Strategy

The type of strategy we employ to create a market share for our company is focus
strategy. We will focus

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on the class of people who need electricity for their daily works, the class of people
who are having a

really hard time to deal with the current load shedding problems.

By the time competition grows, we will have enough market shares and a distinct
brand image.

To attract such customers we will engage in advertisement campaigns which will

educate people to use

green solar energy, campaigns which will explain the long term benefits of using our
systems than using

generators.

V. Company product and services

A. Description

1. Product or Service features

Complete solar home system customized to customers’ demands. For this category of
products, we will first survey the site and then calculate the required power and its cost.
The requirement of different customers may vary. It will include the following components:

•Photovoltaic cells (PV): it is the source of energy, it will convert solar energy into electrical
energy. We will provide PV cells from Shell-Solar, the largest manufacturer of solar panels
in the world. The rating of such panels will vary from 20watts-peak to 200watts-peak.

•Charge controller: it will be used to control overcharge and over discharge of battery
which will increase battery life.

•Heat shrink: helps to overcome overheat of problem of battery

•Battery isolator: it will help to run system directly from solar panel after battery is fully
charged.

•Cable

•Battery: it is deep cyclic sealed lead acid battery from Kulyan , Volta which is also deep
cycle tubular solar battery.

Installment of solar panels only (for customers)

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From our survey, we have found that about five percent of total population in valley has
been using

inverters. Customer with this category would need solar panel only. Hence we will install
particular solar

panel that will match with their system.

2.Customer benefits

✔ First of all the customers are facilitated by services that are customized regarding their

needs and perspectives.

✔ Installment facility will make them comfortable with financial context.

3.Warranties and Guarantees

For the first two years following your PV system installation, Solar energy provides you a
full installation warranty. During the period, Solar Energy will provide regular site visits for
cleaning and maintenance of the system, and also field any other support issues. The
company shall provide its customers with guaranties and warranties for every component.
Failure of any guaranteed component will be repaired or replaced immediately on request
(any physical hampers will not be repaired).

4. Uniqueness

Customized system with respect to customers’ perspective is first key point of our
company which will

satisfy variable needs of our customer.

5. Free Energy Audit

Our process begins with a free energy audit of your building, whether it is a small
residential home, or a large commercial complex. A member of our engineering staff will
evaluate each and every electricity consuming device in your building and also go through
your past electricity bills to determine how much electricity you need on average during a
given day. We will also ask you to prioritize the appliance usage in terms of how critically
do you need them during load-shedding hours

B. Patent or trademark protection

SEC will be register under the Ministry of Industry and Commerce as a service oriented
business. It will be a registered as a partnership company in Lalitpur Municipality. SEC will

12
be legally approved after its registration and imitation of our trademark will be punishable
as per the Ministry of Industry and Commerce.

C. Description of Service process

SPL believes in promoting green energy as well as increasing solar users. SEC creates

opportunities for customer to get benefits of solar energy in appropriate costs.

Ordering & Payment Procedures:

What are the ordering procedures?

1. Contact

In order to get our service, one needs to contact in our office. Our advertisement means
shall help our

customers to get details of offices.

2. Selection of services

Our web page, www.sunpowersolution.com features various products available and our
services. The customers can also search the product description and warranty we provide.
They can be updated with services we provide through our web page. The customers can
select the types of the service they want.

3. Pricing

Pricing of the services will be mentioned in both in Nepalese as well as US Dollar in our
webpage. For convenience customer can directly contact in our office.

Payment methods:

The payment is divided into full payment and installment basis:

Full payment: customer has to pay immediately after the installation of system.

Installment basis: This payment method is valid for all customers. Customer have to
make fifty percent down payment at first after installation then customer shall pay in
installment basis with

13
interest to finance company.

D. Future Service offerings:

We are planning for adding the services which will target offices and small hotels. SPL has
plan to deploy this service after two years of establishment of company

VI MARKET STRATEGY

A. Target Market

1)Complete Demographic Profile:

The idea of SEC came due to the emerging market solar energy in Nepal. Every year
thousands of Nepalese are attracted toward particularly solar energy in the middle of
alternatives energy sources. They

want to serve by solar energy to get relieve from load shedding and electricity crisis.

Table: total population and targeted customer

YEAR POPULATION %POPULATION

2007 39,51,423 5.2%

2008 41,01,817 5.7%
2009 45.67.565 6.5%

2) Electronics equipments
List of Mostly used electronics equipments

S.NO Lists of Electronics Equipments

1 Television
2 CFLs (Tube Lights)
3 Computer
4 Laptops
5 Mobile Chargers

Our Solar Home Systems and Costings

20 Wp System
S.N. Particulars Capacity Quantity Cost(Rs) Selling Price(Rs) Remarks

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 1 Panel 20wp 1 3200 6000
2 CFL of 5 watt each( 4
2 Battery 35Ah 1 4000 5250 hours)
Charge 1 CFL of 3 watt( 4
3 Controller 8Amp 1 1400 1500 hours)
DC/AC
4 Converter 20w 1 1400 1500 1 LED light( 4 hours)
5 Structure 1 800 1500 Mobile charge
6 Installation 3000
7 Miscellaneous 1500 2000
Total 12300 20750

60 Wp System
S.N. Particulars Capacity Quantity Cost(Rs) Selling Price(Rs) Remarks
1 Panel 60wp 1 9600 18000
2 CFL of 7 watt each( 5
2 Battery 57Ah 1 7500 8550 hours)
Charge 3 CFL of 5 watt( 5
3 Controller 8Amp 1 2000 2250 hours)
DC/AC
4 Converter 60w 1 1700 1800 3 LED light( 5 hours)
5 Structure 1 800 1500 Mobile charge
6 Installation 3000 Internet Router
7 Miscellaneous 2000 2850
Total 23600 37950

60 Wp System
S.N. Particulars Capacity Quantity Cost(Rs) Selling Price(Rs) Remarks
1 Panel 60wp 1 9600 18000
2 CFL of 7 watt each( 5
2 Battery 57Ah 1 7500 8550 hours)
Charge 3 CFL of 5 watt( 5
3 Controller 8Amp 1 2000 2250 hours)
DC/AC
4 Converter 60w 1 1700 1800 3 LED light( 5 hours)
5 Structure 1 800 1500 Mobile charge
6 Installation 3000 Internet Router
7 Miscellaneous 2000 2850
Total 23600 37950

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 80Wp System
Hybrid
Selling
S.N. Particulars Capacity Quantity Cost (Rs) Price(Rs) Remarks

1 Panel 80wp 1 12800 24000

1 CFL of 11 watt each( 5
2 Battery 150Ah 1 21000 25500 hours)
Charge
3 Controller 10Amp 1 2000 2250 3 CFL of 8 watt( 5 hours)
3 LED light 1 watt ( 5
4 Inverter 600 VA 1 12000 14843 hours)
5 Structure 1 800 1500 2 CFL of 3 watt (5 hours)
7 Miscellaneous 2500 3500 Router & Mobile Charge
Total 51100 71593

80Wp System
selling
S.N. Particulars Capacity Quantity Cost(Rs) price(Rs) Remarks
1 Panel 80wp 1 12800 24000
1 CFL of 11 watt each(
2 Battery 100Ah 1 14000 16750 5 hours)
Charge 3 CFL of 8 watt( 5
3 Controller 10Amp 1 2000 2250 hours)
3 LED light 1 watt ( 5
4 DC/AC converter 60 watt 1 1700 1800 hours)
2 CFL of 3 watt (5
5 Structure 1 800 1500 hours)
Mobile charge (2
6 Installation 3000 hours)
7 Miscellaneous 2000 3000 Router (2hours)
Total 33300 52300
Discount 5% 2615
Grand Total 49685

100Wp
System
Cost Selling
S.N. Particulars Capacity Quantity (Rs) Price(Rs) Remarks
1 Panel 100wp 1 16000 30000
2 CFL of 11 watt each( 5
2 Battery 200Ah 1 26000 30150 hours)
Charge
3 Controller 10Amp 1 2000 2250 2 CFL of 7 watt( 5 hours)

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 4 Inverter 800 VA 1 15000 17316 3 LED light 1 watt ( 5 hours)
5 Structure 1 1200 2000 1 CFL of 5 watt (5 hours)
6 Installation 3000 TV/Computer (3 hours)
7 Miscellaneous 2500 3500
Total 62700 88216
Discount 5% 4410.8
Grand Total 83805.2

200 Wp
System
Selling
S.N. Particulars Capacity Quantity Cost (Rs) Price(Rs) Remarks
1 Panel 200wp 100*2 32000 60000
6 CFL of 11 watt each(
2 Battery 300Ah 150*2 45000 51000 5 hours)
Charge
3 Controller 20Amp 1 9000 9750 TV (3 hours)
Laptop charge (2
4 Inverter 1400 VA 1 28000 30000 hours)
5 Structure 1 2400 3000 Computer (2 hours)
6 Installation 3500
7 Miscellaneous 3000 4000
Total 119400 161250
Discount 7% 11287.5
Grand Total 149962.5

A. Customer’s Motivational Factors

The concept of solar energy is not new among the Nepali customers. According to our
market survey, most of our targeted customers are familiar with solar power installation and
their benefits. Majority of customers have positive thinking towards our business idea. We
have summarized some factors which help to motivate the customers to use our services. The
significant customer’s motivational factors are:

1. Better alternative source of energy

In the long run, solar electricity is cheaper than buying it from the power
company. There is a start up cost, but then it starts paying for itself. Once you
break even, everything after thatis profit.

2. Giving customer what they want

There is a huge variety of solar panel systems available. Some can cost tens of

17
 thousands of dollars, and some cost just a couple hundred. This means customer can
get into solar, with their respective financial effort.

3. Environmental aspects:
Solar Energy is clean, renewable (unlike gas, oil and coal) and sustainable, helping
to protect our environment. It’s not affected by the supply and demand of fuel and is
therefore not subjected to the ever-increasing price of gasoline.

B. Market Size

and Trends

1)How large is

the market?
Solar energy market in Nepal is in growing stage. The location of the company is in
Pulchowk, Lalitpur which shares major part of population. Since it is capital city,
most of the people arefamiliar with benefits of solar energy. This location shares
major targeted customer which will bebeneficial for our service. Targeted
customers have started to use these types of services inKathmandu valley. Since
this type of service is in developing and progressive stage, SEC willcatch the
present trend customizing the service with customers’ needs.

2) Is it growing or shrinking?
There are few companies who are directly related to our services. We are the
competitors in this market. Customers preferring solar energy are increasing day by
day. Due to its advantages, people are more likely to have solar energy in their house
and offices. Since our targeted customers are familiar with solar energy and its
merits, it is more liable to increase in market. Hence our targeted market is in
growing stage.

D. Advertising and Promotion

The advertisement is depending upon the target customers; where are they? How should we
communicate with them? SEC is going to answer these questions with the effective
advertisement and promotion techniques. This section includes a description of all
advertising means and medium we are planning to use as well as public relations program
and promotional materials (such as brochures).

As we have focused in Kathmandu valleys’ customer in initial stage, we will use following media
for
advertisement:

18
1. Media to be used
We are planning to use two types of Advertisement; viz. Offline and Online advertisement.
We mainly focused on offline than online advertisement.

i. Offline Promotion:
Newspaper:

News paper is a good source of communicating with the potential customers, especially of
age group 20- 40 years. Our targeted customers prefer the English newspapers like The
Himalayan Times, The Kathmandu Post, and Nepal Times. We will advertise our company
service, contacts, features and website in those papers. As our allocation of cost for offline
advertisement is high, the advertisement will be weekly or may be monthly.

Magazines:
Another effective means of advertising for our company is magazines which has wide
reach to the target customer. Magazines offer long life span resulting in good chance of being
seen several times. Magazines ads are usually of high quality, resulting in strong visual
appeal. We will use business magazine like The Times Nepal, which are more preferred by
our customer.

Brochure:
Our company publishes a brochure annually including all the activities of the company.
Brochure helps to make customer up to date about income and expenses of the company.
The report of seminars and interaction programs held in the year is published in it. A strong
brochure can be the back bone to reflect the positive feedback from customer for an
institution. So we are planning to invest enough capital to publish own brochure.

Public Relation:
To increase public relation, we will organize program to create awareness about
alternative energy. This type of program will help to raise our company status in public
perspective and different media covering the program will help recognition of our company
existence. This will also help to make relationship with different professional and expertise
of different fields.
ii. Promotion through internet:
Since our targeted costumers are use to with internet, SEC shall be focusing in advertisement
through internet. We will use web page of our company that are cost effective but reach the
large number of customer.

2. Frequency of usage
We are mainly focusing in offline advertisement so our company will be updated in news and
magazines regularly. News paper will be used weekly and magazines fort nightly. Costs for
newspaper and magazines are noted in table below. Our web page will be updated time to
time.

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 Desired Image in the market
We will like to see SEC next to leading companies like Lotus in national market and next to
some international companies like Solar Shell in few years. We will like to establish a strong
brand image by the consistent quality services. As our vision we will always try to deliver
value to our customers, employees and to our nation as well.

VII. COMPETITORS ANALYSIS

A. Existing Competitors
1. Competitive Profile Matrix

Major competitors: These competitors are the giants of online shopping in

Nepal. They are:1.Kevin solar solution
2. Swogun Energy PVT. LT

Swogun Energy PVT. LT

• Business type: manufacturer, retail sales, wholesale supplier, importer
• Product types: Solar Home System, Portable Power Pack solar system
system, solarbatteries, charge controller and others.
• Service types: consulting, installation, project development services,
research services,site survey and assessment services, contractor services,
maintenance and repair services

Kevin Solar Solution:

• Business type: manufacturer, exporter

• Product types: backup power systems, DC to AC power Inverters sine wave, Batteries
Deep Cycle, SMF Batteries, Solar Water Heating Systems, Solar Lighting Systems, Online
UPS, Automatic Lift Backup System, IGBT Based Home UPS, CFL Lights, Cyber H-UPS,
Sine Wave Inverter,Sine Wave UPS, DSP Sine Wave H-UPS, DSP Sine Wave Inverter, DSP
Sine Wave Online UPS, DSP Sine Wave Static UPS.
We have constructed the CPM of Kevin Solar solution, Swogun Energy PVT.LTD and SEC as
following:
Kevin Solar Swogun Energy
Key Success Factors Solution PVT SEC OUR
Weight Rating Score Rating Score Rating Score
Innovative Services 0.1 4 0.4 2 0.2 4 0.4
Price Competitiveness 0.2 1 0.2 2 0.4 3 0.6
Financial Strength 0.1 4 0.4 2 0.2 3 0.3
Service Quality 0.4 4 1.6 3 0.6 4 1.6
Customer Trust 0.2 3 0.6 3 1.2 2 0.4
Total 3.2 2.6 3.3

2. Strengths and Weakness of competitors

The major competitors are the established companies. They have established their

20
service imageand they have good technology and financial strengths.

Kevin
Solar
solution
Strength
•Strong brand name
•They are manufacturer
Weakness
•Expensive delivery charge
•Slow delivery process

Swogun
Energy PVT.
LTStrength
•Strong brand name
•Unique R&D deparment
Weakness
•location
•low interaction with customers

B. Potential competitors
Solar home installation company is medium scale company. So, there will always be
possibility of new competitors. Our potential competitors will be those who will focus on
installation service only in particularly in Kathmandu valley. Some of the potential customers
are:

Kinetic Energy Pvt. Ltd.

• Business type: wholesale supplier

• Product types: solar lighting systems, batteries lead acid deep-cycle, solar
charge controllers, DC lighting, solar water pumping systems, batteries lead
acid flooded, retailssales, wholesale supplier, design.
• Service types: consulting, contractor services, research and development
Nepal Energy Development Company (Pvt.) Ltd. (NEDCO)

• Business type: retail sales, wholesale supplier

• Product types: appliances, custom batteries, water heating systems, sun concentrating
photovoltaic systems, photovoltaic modules, compact fluorescent lighting,
Compact Flourecent Lamps (CFL), Complete Solar Home Systems, Complete Solar
Water Heating Systems.
• Service types: consulting, installation
• Address: Bharatpur-10, Chaubiskothi, Chitwan, Narayangarh, Narayani Nepal 26,Bharatpur

Lotus Energy Pvt. Ltd.

• Business type: Manufacturer, Wholesale, Supplier, Retail Sales, Service, Installer

• Product types: Complete Solar Energy Systems, photovoltaic modules, rechargeable
batteries, Power backup systems, Solar charge controller, Solar

21
 pumps, SolarTukis(alternate to kerosene lamp), Solar LEDs,
Solar prayer wheels, Solar ozone water
purification systems, etc. .
• Address: P. O. Box 9219, 1679 Thirbam Sadak 3, Bhatbhateni,
Kathmandu, BagmatiNepal
• Telephone: +977 (1) 441 8203
• FAX: +977 (1) 441 2924

Impact on our business:

They are potential competitors with similar services we provide. If they plan to target in our
customer andlocation under these circumstances we will lose our potential customer. As well
as, market will saturate before than we estimated.

VIII. DESCRIPTION OF MANAGEMENT TEAM

SEC is partnership business organization which will be owned and manage by its three
partners. The three partners will jointly share the ownership of the business and they
will have equal amount of equity, profitability and all of these members hold equal decision
making authority.
SEC will operate with four departments—Research and Development Department
,Installation and Operation Department , Sales and Marketing Department and Finance
Department , at the office which isbased in Pulchowk, Lalitpur.

The partners are responsible for one department and they will make the decisions on
their respectivedepartment and the major decisions of the company will be jointly
discussed.
no of
staff salary per month
Director 1 25000
sales and marketing manager 1 20000
operation & Installation
manager 1 20000
R & D manager 1 20000
Finance 1 20000
Marketing & Sales officer 1 10000
Office management 1 10000
Repair and maintence 1 10000
Engineer 1 20000
Techinician 1 15000
helper 1 6000
Accoutant 1 10000
receptionist 1 6000

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 total 13 192000

We designated the salary structure such that the employees do not have to make any
compromise in their self-esteem.the salary scale is equally divided from top to bottom level
of management. At the end of the year profit is shared among the three owners of SEC.

IX. PLAN OF OPERATION

A. Form of ownership
SEC will be operating as a partnership firm. All the six partners will jointly share the
ownership of the business and they will have equal amount of equity, profitability and all of
these members hold equal decision making authority. All the partners will be actively
involved in the day to day operations of the business. The partners have the responsibilities
in three departments. The main reason for operating as Partnership business is to establish
such a business that is strong in financing and management.
Six partner viz. Miss Nisha Jaishwal, Miss Sabina Uprety, Mr. Santosh Mandal, Mr.
Sanjog Kayastha, Mr. Narayan KC, Mr. Surya Kiran Koirala will jointly invest the equity
capital of Rs.1500000 . The sources of equity financing of the partners will be personal
savings and their friends and family members.
B. Structure of the Company

Director

Sales & Marketing Installation and R&D Finance

Manager operation Manager Manager
Manager

Marketing Technician
Research Accountant
and sales
Officer Engineer
Helper
Receptionist
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Repair &
maintenance Officer
A. Decision Making Authority

All the six partners of the SEC will have equal authority to make decisions. The partners are
responsible for one department and they will make the decisions on their respective
department and the major decisions of the company will be jointly discussed. All the major
decisions of the company must require the consent of each member.

B.Compensation and Benefits Packages

As our mission “Solar energy is a precious gift and we should take maximum benefit
from it.”, we will never compromise in the quality of our service. The customers can
check the condition of the service installed and they can complain if unsatisfied with our
work. We will always remember “the customer’s satisfaction is our motto” during our
business.
FINANCIAL FORCASTS
A. Financial statement

1. Fixed Assets
cost per
S.N. Particulars Qty unit total cost
1 furnishing and decoration 1 100000 100000
2 computers 3 30000 90000
3 telephone 2 4000 8000
4 printer and fax 1 40000 40000
5 scooter 2 150000 300000
6 water filter 1 4500 4500
total 542500

1.Pre operating costs

cost
1 market survey 30000
Awarness
2 Programme 30000
3 Training 40000
company
4 registration 16000
5 R &D 100000
6 Miscellaneous 5000
total 221000

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1. Operating Costs

Particulars First year Second year Third Year

per month per month Per Year Per month Per Year
Rent 25000 300000 30000 360000 30000 360000
Salaries 192000 2304000 218000 2616000 218000 2616000
Telephone 2500 30000 2650 31800 2650 31800
Electricity cost 2000 24000 2200 26400 2200 26400
Transportation 7000 84000 8000 96000 8000 96000
Internet charges 1017 12204 1017 12204 1017 12204
Advertisment 80000 960000 70000 840000 60000 720000
Stationary 2000 24000 2000 24000 2000 24000
Auditing 10000 10000 10000
Other miscellaneous 1000 12000 18000 18000

Total operating costs 3760204 4034404 3914404

1. Pro forma Income Statement

First Year Second Year Third Year

Net Sales Revenue 22673306.04 25765120.5 28856934.96
Cost per installation 17042520 19366500 21690480
5630786.04 6398620.5 7166454.96
last year inventory 0 875900 875900
5630786.04 7274520.5 8042354.96
Operating Expenses
rent 300000 360000 360000
salaries 2304000 2616000 2616000
telephone 30000 31800 31800
electricity cost 24000 26400 26400
Transportation 84000 96000 96000
internet 12204 12204 12204
advertisment 960000 840000 720000
stationary 24000 24000 24000
Auditing 10000 10000 10000
other miscellaneous 12000 18000 18000
Total Operating Expenses 3760204 4034404 3914404
1870582.04 3240116.5 4127950.96
Depreciation
Computer 9000 8100 7290

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 Furniture 10000 9000 8100
Fax & Printer 3000 2700 2430
Electronic applainces 1500 1350 1215
scooter 7000 6000 5000
Total Depreciation 30500 27150 24035
1840082.04 3212966.5 4103915.96
Inventory 875900 875900 900000
964182.04 2337066.5 3203915.96
Tax (13%) 125343.6652 303818.645 416509.0748
Net Income 838838.375 2033247.855 2787406.885

B. Pro forma Balance Sheet(at the end of first fiscal year)

Assets
Current Assets
Cash 838838.4
Account receivable 0
Prepaid expenses 0
Inventory 875900
Total Current Assets 1714738
Fixed Assets
Furniture 100000
Less accumulated
depreciation 10000 90000

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 Computer 90000
Less accumulated
depreciation 9000 81000
Fax & printer 40000
Less accumulated
depreciation 3000 37000
Electronic appliances 12500
Less accumulated
depreciation 1500 11000
Scooter 300000
Less accumulated
depreciation 14000 286000
Total Fixed Assets 505000
Total Assets at the end of the year 2219738
LIABILITIES
Current Liabilities
Account Payable 0
Salaries Payable 0
Advertisement Payables 0
First Asset 542500
Preoperating cost 221000
Partners capital 1456238
Total Current Liabilities 2219738

Appendices

Appendi
x no. 1
Business
plan
survey

We have done a survey in the locality area of correspondimg management teams of

Kathmandu Valley altogether about 30 houses , each contributing 5 houses by
distributing a questionnaire and make themfree to express anything on the topic.

Here is the result and model of questions

QN1. How often load shedding is becoming an obstacles in your routine life?
A. Not so often
b. Is curse
c. Loving it

QN2.What may the best alternatives to solve present load shedding?

a. Inverters

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b. Diesel generator
c. Solar plant
d. Anything you suggest
Among the participants two of them suggested that bio fuel can be used to stop load shedding.

QN3. Do you know about green energy?

a. Yes
b. No

QN4. What you use to read during night for study?

a. Solar lamps
b. Emergency lights
c. Candles
d. Don’t read when load shedding

QN5. Do you think solar plant is costly?

a. Yes
b. No
c. Do not know

QN6. What is the main reason behind present energy crisis?

a. Political instability
b. Not enough hydropower plant
c. Leakage and theft of electricity

QN7.What you suggest about to reduce present load shedding and promoting use of solar energy?

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Participant expressed their views on the use of solar plants some expressed about high cost of
it, So we need to search other alternatives but many of them wrote that sun is this is
nature’s gift for us so we must make benefits from it by using solar plants and promoting
green energy.

Conclusion
The business plan of Solar Energy Company Pvt. Ltd. can be implemented in the Kathmandu valley.
We are very confident that our business will reap lots of benefits economically as well as socially in
the country. The market area of SEC will keep on rising day by day within short period of its
establishment.

The company will provide lots of facilities and services regarding solar technology. It will
mainly focus on the customer satisfaction and need. We are sure that it will solve the
problems of energy crisis, load shedding and backup systems in the various sectors like
banks, offices, hospitals, houses, etc.

The company will achieve its pay back within a year as we have calculated. The company
has its breakeven units as 15 per months. After this unit the company will be enjoying
profits. Similarly it will enjoy its internal rate of return of 66%. The SWOT analysis and
Strength and Weakness analysis of competitors has been properly done to mitigate the risk.

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