Thunderbolt Motors

Pvt. Ltd.

Business of Retrofitted Electric Auto

Rickshaws

Business Plan
27th April 2020

Avinash Prakash

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Contents
Executive Summary 3
Business Opportunity 3
Product/Service Offerings 3
Marketing Plan 3
Management Team 4
Financials 4
Scope of Proposals 5
Product and Service 5
Value Proposition 7
Target Customers 7
Savings Calculator 8
Pricing Model 8
Management Team 10
Organisation Structure 11
Market Scenario 13
Market of Auto Rickshaw in Bangalore 13
Scrapping of Old Auto Rickshaws 14
Going Electric Proving Tough for Bangalore 14
Marketing and Sales 16
Social Media Plan 17
Implementation 19
Opportunities 20
Major Risks 22
Competitor Analysis 24
Financial Projections 27
Summary of Financial projections 31

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Executive summary:
1.1) Business Opportunity:
As we can see the growth of electric vehicle industry in recent days, there
is also need of revolution in 3-wheeler i.e., auto rickshaws just like 2 & 4-wheeler
vehicles. In recent days, we have seen a lot of revolution in 2-wheeler & 4-
wheeler companies that are coming up with new models of electric vehicles.
There are hardly 4-5 companies which came up with 3-wheeler electric
models. There is less competition in the market and none of them deliver a
product with a clean balance between quality and cost.
1.2) Product/Service Offering:
The main service provided by our company is retrofitting of conventional
auto rickshaws. The business activities include procuring the materials,
assembling it, testing the retrofitted auto rickshaws and then delivering the auto
rickshaw to our valued customers.
The mission of the business is to satisfy customer’s need of having a high-
quality e-auto rickshaw at a lower cost and also an excellent service. Our main
point of differentiation from other retrofitting e-auto companies is that the cost
of owning an electric auto will be just a quarter as that of a new auto and also
the sentiments with the vehicle will not be disturbed.
1.3) Marketing Plan:
The objectives of the company are to: -
• Maintain market share of 20%.
• Increase sales by 40% every year.
• Be the leader in retrofitting of e-auto market.
The business will achieve these objectives by: -
• Undertaking extensive marketing and promotion with the auto
drivers.
• Creating visually appealing posters and banners to drive more
customers traffic.
• Offer an attractive priced model.
• Taking customer relationships very seriously i.e., ensuring
customers’ utmost satisfaction.

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 1.4) Management Team:
Thunderbolt’s management team consists: -
a) Avinash Prakash (Managing Director & CEO)
b) Abhishek Prakash (Financial Director & CFO)
We will be hiring other employees through interview process for
marketing & sales, Technical & Financial Department for a smooth functioning
and overall growth of the organisation.
1.5) Financials:
The financial projections are provided for next 1 year and 6 months. As
the company targets to expand geographically at rapid pace, a high revenue
growth is projected. The direct cost majorly consists of amount to be paid for
the vendors and machine tools and equipment. The average gross profit margin
is around 20%.
Other operating expenses includes salaries to all the employees, rent for
the office space/warehouse and also for website development and maintenance
cost. Post incurring all these expenses the company plans to achieve net profit
of 9-10% over a period of 5 years.

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Scope of Proposal:
This business is an ideal solution for emerging e-vehicle models with such
a high cost price. There are very less companies/start-up with similar business
model. Most of the companies who have come up with electric 3-wheeler model
are highly priced. The high price tag is the reason for a limited sale of
electric 3-wheelers.
Vision & Mission: -
Vision: - “To be the best electric 3-wheeler retrofitting company by
offering best electric experience at a very reasonable and affordable price.”
Mission: - “To satisfy customers’ need for high quality
electric 3-wheeler experiences and a great service.”

Product and Service:

Efficient and cost saving e-auto kits are the key points of differentiation
for the business. Our product i.e., retrofitted e-auto will offer ‘value for money’.
Our product will also help the customers in saving money on a daily basis as the
e-autos are much cheaper to ply than the conventional ones.
Our product also helps in reducing noise and air pollution. The smooth run
of the vehicle will also provide relaxed and calm driving experience and it will
also shoo away the agony of variation of fuel cost.
Features of the Retrofitted Electric auto: -
a) Fully functional electric auto
b) Maximum speed - 30 kmph
c) Expected range – 80 kmph
d) Cooling system for Motor and battery
e) 100% safe to ride
Key Definitions:
1) Conventional Auto: - Conventional auto rickshaws are the one
which use conventional fuels such as CNG, petrol or diesel.
There are 2 types of conventional auto rickshaws- 2-stroke
version and 4-stroke version. Production of 2-stroke version of
conventional auto rickshaws are stopped but still can be seen on
plying on the roads of India.

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 2) Retrofitted Electric Auto: - Retrofitted electric auto rickshaws
are nothing but conventional auto rickshaws retrofitted with
electric drive train by removing the existing drive train. The
retrofitted electric auto rickshaws function just like electric auto
rickshaws.
• Concepts: -

REMOVAL OF
INSTALLATION OF TESTING THE
PROCURREMENT EXISTING DRIVE
RETROFIT KIT DRIVE TRAIN
TRAIIN

Retrofitting process of conventional auto consists of following key

steps: -
1) Procurement: - In this step, the materials required to retrofit the
conventional auto rickshaw are procured in the inventory as per
the specification decided by the customer and made ready for
installation.
2) Removal of existing drive train: - In this step, the drive train will
be removed from the customer’s auto rickshaw. The parts which
has to be removed from it are: -
a. Silencer
b. Fuel tank/Gas cylinder
c. Engine
d. Gearbox & differential
3) Installation of retrofit kits: - Once the existing drive train is
removed from the auto rickshaw, then electric drive train is
installed without changing the design of the body of the auto
rickshaw.
4) Testing the drive train: - Once the electric drive train is installed
in the customer’s auto rickshaw, we carry out tests to check the
stability and performance of the drive train and auto rickshaw
for all conditions before delivering it to the customer.

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Value Proposition
Our business provides the auto rickshaw drivers an exceptional way of
saving and also having a smooth and a greener ride. This company plans to
provide cost effective and efficient retrofit kit.
Specific value proposition for auto rickshaw drivers are listed below: -
o Pay 1/3rd cost for owning an electric auto
o Sentiments with auto rickshaw remains untouched
o Contribution towards pollution-free environment
o No maintenance required
o Best way for extra savings and generating more profit
o Smooth and efficient driving experience
o Half operating cost than conventional vehicles
o Emission-less drive
Not only for the auto rickshaw drivers but also for the passengers, this
product brings treats for passengers. Following are the advantages for the
passengers of retrofitted electric auto rickshaw: -
o A cheaper way to travel
o Noise free experience mode of travelling
o Additional savings on traveling expenses
o Contribution towards pollution-less environment

Target Customer
The target customer segment for this product is auto rickshaw drivers.
Auto rickshaw drivers are buyers of product and passengers of auto rickshaws
are the consumers of this auto.
Auto rickshaw drivers: -
o 2-stroke auto rickshaw drivers
o 4-stroke auto rickshaw drivers
o Cargo auto rickshaws drivers

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Savings Calculator
Following table gives a rough comparison between the savings done by
the auto rickshaw driver using CNG variant, LPG Variant and Electric variant: -

No. Parameters (Average considered) LPG CNG E-Retro

1 Working Hours/ Day 10-11 h 10-11 h 10-11 h
2 Total Running Kms/Day 80 80 85
3 Empty Kms/Day 15 15 15
4 Earning Kms 65 65 70
5 Fare/Km 9 9 9
6 Total earnings/Day 585 585 630
7 Mileage 18 43 100
8 Fuel Cost 43 51 29
9 Total Fuel cost 192 227 29
10 Daily Oil Cost 35 0 0
11 Misc. Expenses 75 75 0
12 Total Expense/ Day 302 302 29
13 Total Savings/Day 283 283 601
14 Working Days/Month 26 26 26
15 Total earnings 7,358 7,358 15,626
16 Monthly Oil Cost 600 250 100
17 Monthly Maintenance Cost 250 250 400
18 Total Expenses 850 500 500
19 Net Income/Month 6,508 6,858 15,126
20 Net Annual Income 78,096 82,296 1,81,512

Pricing Model
We propose to offer great performance, high efficiency and smooth
driving experience from our retrofitted electric auto rickshaw and also a great
service at a price comparative to our major competitors.
As most of our customers are middle class, our primary focus was to make
sure that the product pricing will not disturb their budget. Once after the initial
investment is done by the customer on the product, the positive income can
start from the following day.

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 Overall cost to be paid by the customer or Auto rickshaw drivers for the
retrofitted kit is as follows: -

Sl. No. Materials Cost

1. Motor & Motor controller 20,670/-*
2. Battery & Battery Charger 29,000/-*
3. Electrical Throttle set 700/-
4. Mechanical & Electrical Materials 3000/-
5. Labour Charge 9000/-
6. Profit (20%) 10,674/-
7. Total 73,044/-

• Motor & Motor Controller*

Power Voltage Rated Speed Price

(Volts) Speed (kmph) (in Rs)
(RPM)
2 kW 48V (60V) 3000 (4000) 40-50(45-60) 20,670/-

• Battery & Battery Charger*

Battery Voltage Capacity Range Power Price
Type\Specs (Volts) (Ah) (km) (kWh) (in Rs.)
Lead-Acid 48 100 85 4.8 29,000/-
48 150 135 7.2 41,000/-
60 100 90 6.0 35,500/-
60 150 140 9.0 50,500/-

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Management Team
The management comprises of two directors who will be responsible for
the overall business of the company.
• Avinash Prakash (Managing Director and Founder)
Avinash has done B.E. in Mechanical Engineering from Atria Institute of
Technology, Bangalore under Visvesvaraya Technological University, Belagavi.
He has done a project titled ‘Retrofitting of Conventional Motorbike’ as his final
year project which was a retrofitted electric bike. He along with three of his
project-mates completed the project successfully in just 2 months.
He has already published 2 research papers in international journals that
are titled ‘Powering Electric Motorbikes with Dynamos’ in International Journal
of Trend in Research and Development (IJTRD) and ‘Retrofitting of an Electric
Drive Train in an I.C. Engine Motorbike’ in International Journal of Engineering
Research in Mechanical and Civil Engineering (IJERMCE).
He is very passionate about making a social impact and currently exploring
ideas in electric automobile industry and battery technology.
Avinash being the principal director, he will be responsible for the overall
functioning of the company including conceptualization, overall strategy,
operations, marketing, technology and human resource functions.
• Abhishek Prakash (Director and CFO)
Abhishek has done B.E. in Mechanical Engineering from Nagarjuna college
of Engineering and Technology, Bangalore under Visvesvaraya Technological
University, Belagavi. He has done a project titled ‘Establishment of Hydrocarbon
Cleaning for Elements Barrel’ in BOSCH India Pvt. Ltd., Bangalore.
Abhishek is very hard-working person and also a person who takes his
work very seriously until it is completed. He is currently exploring the financial
and marketing sector.
Abhishek being the CFO, he will be responsible of the financial
department, human resource department and operation department. He will be
looking after every process closely like hiring of employees, retrofitting of the
vehicle, testing of the vehicle and delivering the vehicle to the customer in the
best condition possible.

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Organisation Structure

Management

Marketing & Operations

Finance Dept.
Sales Dept. Dept.

At initial stage, the company will have 3 major departments: -

1) Marketing & Sales Department: -
This department will be responsible for marketing and sales of the
product. The department will also come up with different ideas of
communicating the product to the targeted customer and selling the idea to the
customer. It is also the responsibility of the department to keep updating the
marketing ideas as the company grows. The department will also work in order
to make the best of customer relationship through getting regular updates from
the customers.
The department will consist of a Marketing & Sales Head who will be
responsible for the in and out of the department. He will be assisted by 2 other
Business Development Executive (B.D.E.) and 2 Sales Executive.
2) Operations Department: -
This department will be responsible for converting the conventional auto
rickshaws into ready-to-drive electric auto rickshaw for the customers. In other
words, this department will be responsible for retrofitting of the conventional
auto rickshaw of the customer into retrofitted electric auto rickshaw and then
test it for all the conditions in different situations.

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 It will consist of an Operations Head who will be responsible of all the
whole process starting from getting the unwanted stuffs from the customer’s
conventional auto rickshaw removed to the retrofitted electric auto rickshaw
tested for all conditions and delivered to the customer. He will be assisted with
1 Fabricating Engineer, 1 Assembly Engineer and 1 Electrical Engineer.
3) Finance Department: -
This department will be responsible of all the financial processes of the
company starting from the releasing cash for the procurement of the materials,
paying salaries to the employees to receiving payment from the customers.
It will be headed by Abhishek Prakash and will be assisted by 2
Accountant. He also will be responsible for all the hiring processes of the
company and also take care of all the inventory of the company.

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Market Scenario
As we all know that, the need for mobility is increasing and since public
transport is often unable to meet the needs of different socio-economic groups,
the market for auto rickshaws is also increasing. India’s basic individualized
public transport option is the auto rickshaw with more than 50 lakh (5 million)
drivers across India’s metros.
This section can be divided into three categories: -
• Market of Auto Rickshaw in Bangalore
• Scrapping of Old Auto Rickshaws
• Why Going Electric Proving Tough for Bangalore
Market of Auto Rickshaw in Bangalore
Recent figure reveal that the number of auto rickshaws registered in the
Bangalore city is more than double of all taxis. Bangalore’s 1,60,000 auto
rickshaws represent 3% of its vehicular traffic but carry a whopping 30% of
commuters trip. The auto rickshaw transportation mode has grown at an
average rate of 12-13% p.a. and has maintained a consistent share of about 3%
of total vehicular registrations over the last decade (2001-2011).
It is crucial to recognize the significant supplementary and
complementary roles that auto rickshaws do, will and can play in the future, in
increasing the share of public passenger’s transportation as a whole.
According to the transport department website, Karnataka, the number
of auto rickshaws registered and kept for use in Bangalore city between (1980-
2020) are shown below in the form of a table. Based on these figures, the
average growth in the last five years (2015-2020) is roughly 16% p.a.
Year v/s Auto rickshaws (in lakhs)
1.8
1.6
1.4
1.2
1
0.8
0.6
0.4
0.2
0
1980 1985 1990 1995 2000 2005 2010 2015 2020

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Scrapping of Old Auto Rickshaws
As per the comprehensive traffic and transportation study for Bangalore
(2010), the average service life of an auto rickshaw is 10.5 years, but many auto
rickshaw drivers and manufacturers believe that if well maintained, the vehicle
can have a life of at least 15 years, if not more.
Typically, when an auto rickshaw becomes old or outfit and starts to
develop problems, with maintenance and repair costs becoming very high, it is
sold and sent outside the city to surrounding rural areas / villages or towns
(where pollution norms/rules and monitoring are not so stringent). Currently,
the resale value of a 15-year-old auto Bajaj auto rickshaw ranges between
Rs.15,000-20,000 depending upon its condition. An auto is scrapped only if its
beyond repairable condition.
Usually when an auto rickshaw becomes old or unfit auto rickshaw
owners sell their vehicles to surrounding rural areas for Rs. 15,000-20,000
depending upon the model and its condition. Many don’t have to or don’t want
to spend/invest that amount in a new auto rickshaw as getting easy bank loans
are also difficult. So, unless the auto rickshaw was in really poor shape and
beyond repairable condition, the deal becomes non-profitable as the cost of
new auto rickshaw is 2.84 lakhs (ex-showroom price, CNG variant); which is still
at a difference of 2.69 lakhs. It is also not profitable as the cost of new electric
auto rickshaw is 1.12 lakhs (ex-showroom price, Mahindra & Mahindra e-alfa
mini); which is still a difference of 97,000.
Going Electric Proving Tough for Bangalore
According to an article in the Economic Times, the city’s wait for electric
autorickshaws continues. Proposals to introduce them, despite receiving
political support, have met with delays.
Karnataka was the first state to have a dedicated policy for electric
vehicles. The state government even had the lofty ideal of making Bengaluru the
electric vehicle capital of India. In the recent Union Budget too, finance minister
Nirmala Sitharaman announced tax rebates on electric vehicles. However, this
has not translated into action. The city’s autorickshaws are run on either LPG or
CNG.
About 5,000 electric autorickshaws were supposed to be on the roads by March
2019. The state transport department had approved issue of 5,000 permits, and

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even proposed a subsidy of Rs 30,000 for autorickshaw drivers who move from
LPG or CNG autos to electric ones. However, due to the cost difference of about
Rs 50,000 between the conventional-engine three wheelers and e-autos, drivers
demanded a higher subsidy of Rs 1 lakh.
Additional Commissioner for transport (egovernance) Shivraj Patil said
the government was yet to approve the subsidy amount although the proposal
had been sent in February 2019. It had, however, released Rs 4 crore for electric
charging stations. BESCOM is supposed to set up this infrastructure, he said.
“The scrapping policy also has to be evolved. We will identify certain
agencies and autos will have to get certificates only from them to get the
subsidy,” Patil said. While e-autos are exempt from tax, they will need permits
as they have to compete with other autos, he said.

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Marketing and Sales
Thunderbolt motors provides a platform for all the conventional auto
rickshaw drivers and their passengers to have combined saving while continuing
to leverage the rides of retrofitted electric auto rickshaw.
It also provides the opportunity for drivers to earn extra and also save the
fuel costs by investing less than what competitors are offering. The most
important customer segment for the product of Thunderbolt Motors is the
conventional auto rickshaw drivers.
The marketing plan for auto rickshaw drivers is detailed below: -
• Thunderbolt Motors is focusing on creating awareness among large base
of conventional auto rickshaw drivers. Initial focus market will be
Bangalore.
• Traditional marketing like flyers in a book, magazines and newspapers,
posters near auto rickshaw stands will provide visibility to the auto
rickshaw drivers.
• For around 1 million drivers in Bangalore, Thunderbolt Motors plans to
make use of mouth-to-mouth marketing in which we will be using the rear
portion of the retrofitted electric auto rickshaws of our customers for
advertisement and also ask our initial customers to help in marketing.
• We will be using social media marketing to make conventional auto
rickshaw drivers aware about our services and establish network. For
social media the most preferred and favoured media is Facebook and
Google AdWords. Further, the website will be integrated with SEO/SEM
optimization tools to improve search page ranking. Presence of other
social media platform will be created over a period of time.
• The Unions/Groups are meant to be the ‘Representatives’ and ‘Voice’ of
the auto rickshaw drivers’ community and their shared goal is to work for
their welfare and benefit. While there are numerous smaller ‘area-wise’
auto rickshaw unions or groups, there are about 5 main ones in the city,
of which only 2 are officially registered and recognised by the
Government, namely Auto-Rickshaw Drivers Union (ARDU-CITU) and
Adarsha Auto & Taxi Drivers Union. They are both part of Trade Unions
linked to the Government’s Labour Department and affiliated to a political
party. Auto rickshaw drivers voluntarily register to be a part of such
Unions/Groups, usually by paying yearly membership fee. Company can

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 pitch to the Unions/Groups or may be tie-up with them to market the idea
to their fellow auto rickshaw drivers as Unions/Groups act as the
‘Representative’ for the auto rickshaw driver’s community.

Social Media Plan

The purpose of social media marketing is to increase awareness about the
services provided by Thunderbolt Motors in auto rickshaw drivers and thereby
increase or draw traffic to the company. The social media marketing would also
enable the company to establish its brand and position itself as retrofitting
platform for all the 3-wheelers. To achieve its objective, the company plans to
use five most preferred social media platform for marketing. The strategy of
each platform is detailed below: -
• Facebook: -
o Most of the auto rickshaw drivers have a Facebook profile and do
access Facebook platform for more than twice. This social media
can help in reaching out to them through the posts on the official
account of the company.
o Purpose: - Increase recognition, social engagement and establish
online network.
o Events: - Advertisement campaign, target marketing
o Metrics for success: -
▪ Corporate profile: - number of friends, wall posts, comments,
lead generation
• Google AdWords: -
o Google AdWords enables advertisers to reach largest potential
customer base. This platform can help in reaching out to the
targeted customers more effectively through the advertisements of
the company.
o Purpose: - Reach the targeted and specific audience, to determine
the interest of the customers.
o Events: - AdWords targeted to specify or difficult concept, landing
page for that search.
o Metrics of Success: -
▪ Number of clicks: - The acceptance or preference of the
customer can be determined based on number of clicks on
the advertisement.

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• LinkedIn: -
o LinkedIn offers access to professionals across the globe. This social
media will be used to attract employees, advisors, professionals or
interns to the company.
o Purpose: - Establish network of Auto rickshaw drivers and auto
rickshaw driver’s Unions, professionals, potential employees and
increase engagements.
o Events: - Enables to invite high profile professionals and high
potential employees to get associated with company.
o Metrics for Success: - number of connections, number of active
discussions and number of shares and reactions of posts on official
account of the company.
• Twitter: -
o Twitter offers access to professionals across the globe. This social
media will be used to attract advisors, professionals or potential
partners for the company.
o Purpose: - establish network of professionals, auto rickshaw
driver’s unions/groups, potential partners for the company
o Events: - to update with the offerings and preference of drivers and
passengers, regular posts of feedback from our customers.
o Metrics for success: - number of followers, 2nd order followers,
influence of twitter followers, referrals, retweets of the tweet.
• YouTube: -
o This social media is used to interact with target audience with more
of the visual advertisements. This social media can be used to roll
out the videos of our products in running and also the feedback our
customers.
o Most of our customers i.e., auto rickshaw drivers use YouTube and
also, they use it more than 4-5 times in a day.
o To provide visual tour of the offerings and provide teaser videos.
o Purpose: - Increase recognition and establish brand of our
company. This social media can help in increasing lead generation
for our products.
o Events: - telecast promotional videos, videos of the product and
reviews of products.
o Metrics for success: - number of videos views, video reviews,
ratings given to eat videos. Subscribers of the account of company.

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Implementation: -
Implementation strategy includes addition of new features in the product
without increasing the cost of the product much and also new marketing
strategies. The strategy also includes geographic expansions also. Company
schedule shows progression in terms of functionality. Once Thunderbolt Motors
establishes its brand in retrofitted electric auto rickshaw market in Bangalore,
then the company will start expanding in neighbouring states (Kerala,
Maharashtra, Madhya Pradesh, etc.) and then ultimately expanding all over
India. Once the company brands itself, then similar services for other
automobile sectors will also be initiated.
In first year, the focus will be to execute and validate viability of the
business idea. Successful execution of this phase will confirm existence of need
for retrofitted electric auto rickshaw.
Milestone (2020-2021) Apr May Jun Jul Aug Sept Oct Nov Dec Jan Feb Mar
Finalize the idea
Develop the idea
Secure Investment
Identify Materials Vendors
Identify office and
Workspace
Prototype Development
Prototype Testing
Build Marketing Team
Validate strategy & define
long term funding
requirement
Build Technical Team
Marketing and Sales
Social Media Marketing
Marketing Strategy Analysis

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Opportunities
1) Pink Electric Auto Rickshaw Fleet Service: -
A pink Electric Auto rickshaw Fleet Service will be an alternative to
normal auto rickshaw fleet service providers for female passengers in
some areas where a large group of women work. This initiative will be
taken by the company to prevent women from being harassed and
mistreated while commuting in rickshaws. Special features like panic
buttons and GPS tracking systems will be installed for the safety of
women. Pink electric auto rickshaws will be either fully pink or their
rooftop will be pink coloured. Pink auto rickshaws were first launched
2013 in Ranchi by the government of India to protect women against
sexual assaults and rapes. Eventually it was introduced in many other
cities in India. The pink electric auto rickshaws will be driven by the trained
professionals, either men or women, after completion of legal verification
and documentation. By providing women safe transportation, our
company will empower women, enable them to work and be self-
sufficient. Traditionally in India, men are the wage earners. Safe
transportation will enable women to become independent and contribute
to the family income. This will help in making them safe and secure during
the travel.
2) Expanding to other sectors: -
As the company provides a platform that facilitates retrofitting of
electric auto rickshaw, it can be expanded to other sectors of automobiles
like retrofitted electric cars, retrofitted electric bikes or scooters,
retrofitted electric buses, retrofitted electric cargo vehicles and
retrofitted electric bicycles. This will help the company to grow and
establish brand for itself in other sectors as well.
3) New models of electric vehicles:
As the company progresses and becomes successful in establish
brand in the market, it can be expanded to other business models with
different auto mobile sectors on the way. It can start for manufacturing
our own models of electric vehicles like electric auto rickshaw, electric car
and electric 2-wheelers. This expansion will help in the growth of the
company a lot both in financial as well as in establishing brand.

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4) Geographic Expansion: -
The company first serves only Karnataka market but also plans to
expand in other states of the country. On successful run of the company,
it will also expand in neighbouring countries.
5) Providing trainings: -
As the company progresses with increase in customer base and in
establishing brand, we can start providing trainings and workshops to
different sectors like engineering students and working professionals. The
trainings can include topics like battery technology, Electric drivetrain,
Retrofitting of conventional vehicles. This can help us in finding our next
potential employee.
6) Projects Assistance: -
As the company progresses with increase in customer base and in
establishing brand, we can start assisting the engineering students in
getting them internships and also assist them in electric vehicle projects.
This can help us in finding our next potential employee from the ones
performing the project.

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Major Risks
• Easy replicable/ low barrier to entry: -
Initially the business model of Thunderbolt Motors is an alternative
means of having a brand-new high cost electric auto rickshaw. Developing
retrofitting kit to convert conventional auto rickshaws into retrofitted
electric auto rickshaws is not protected by any intellectual property and can
be easily done by any new start-ups. But as a strong community of technical
and marketing team and also great quality service; it will be difficult to
replicate the scale. Currently as very less competition is there in market but
not of same proposition, scaling up at the earliest will be strongest barrier to
entry.
Mitigation Factor: - Thunderbolt Motor is a pioneer in providing an
excellent electric auto rickshaw experience for auto rickshaw drivers and has
a strong growth plans in place. It plans to establish its market position in short
span of time, which could possibly act as a barrier or new entrants.
• Dependence on Hardware Technology Infrastructure: -
As entire business operations are conducted on the basis of all the
hardware and electric equipment, the company relies heavily on mechanical
electrical technology systems. Any interruptions or breakdown in technical
systems could impair its ability to effectively provide quality and thereby
impact drivers’ confidence towards Thunderbolt Motors. To tackle this issue,
the company plans to have partnership with strong quality service providers.
Mitigation Factor: - To avoid any break down in hardware technology
infrastructure, the company plans to partner with established players in the
market that are ready to strictly guarantee continuous, uninterrupted quality
services. Once the quality standards are met, only then the company will
partner with the vendor.
• Negative Viral Effect: -
Normally the auto rickshaw drivers get in touch with their auto
rickshaw driver friends before trying for the paid services. If any of the auto
rickshaw drivers is not satisfied with the services provided by the
Thunderbolt Motors, then they may send out negative viral message about

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the company. This in turn will affect the reputation of the company at a
bigger scale and then resulting into reduced customer base.
Mitigation Factor: - In order to tackle this issue, the company plans to
have a pro-active brand management on social media platforms to see for
any negative publicity against the company or the product. The company also
plans to set a service centre to assist auto rickshaw drivers in solving their
problems with respect to the services or quality of the retrofitted electric
auto rickshaw.
• Scaling Up Operations: -
If company progresses successfully and also starts to establish brand
for itself during its initial phase, then it will require quick ramp up of
technology infrastructure. Company will be increasing production capacity
and reduce the retrofitting time without letting it affect the quality of the
retrofitted electric auto rickshaw.

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Competitor Analysis
There are growing number of players in the market of retrofitting electric
vehicle. Some of the direct competitors are listed below: -
• Mauto Electric Mobility
o It was incorporated on 30 May 2019 and is located in Tamil Nadu.
o Currently, Mansoor Ali Khan is the chairman & Group chairman and
Yasmeen Jawaharali is the CEO of the company.
o They are a company which retrofits the conventional auto rickshaw
into electric auto rickshaw.
o Mauto would be introducing 4000 electric auto rickshaws in
Namma Chennai in different phases by the end of the year and all
of them would be driven by female chauffeurs.
o Retrofit kit cost ranges from Rs. 1.2 to Rs. 1.5 lakhs.
o The company is also planning to set up charging stations in each of
the ten zones of the city. Char ging on the go will be responsible
with the help of a mobile app.
• E-Trio
o It was founded in 2015 by Sathya Yalamanchali.
o It is a Hyderabad – based company and has obtained certifications
from ARAI and ICAT to retrofit petrol and diesel cars into pure
electric cars.
o Currently, they have got permission to retrofit the Maruti Alto,
Wagon R, Dzire and Tata Ace.
o Currently they have two products/type of retrofit kits: -
▪ EV 150
▪ EV 180
o The retrofit kit cost ranges from 8 lakhs to 10 lakhs.
• Volta Automotive
o It was incorporated on 13 June 2016.
o Umesh Chandra Basavaraju is the Managing Director of the
company with 4 other directors of the company and Madhan B N is
the CEO of the company.
o It is a leading manufacturer and supplier of electric auto rickshaws
and retrofitted auto rickshaw. They are already partnered with Ola
company.
o They use Lithium ion Batteries for powering the drive train.

24 | P a g e
 o Currently they have 3 different models of electric auto rickshaws: -
▪ Passenger 80x
▪ Cargo 650
▪ Passenger Retro
o The price range starts from 1.45 lakhs.
• Mahindra Electric
o Mahindra Electric Mobility Limited, formerly known as the Reva
Electric Car Company, is an Indian company based in Bangalore,
involved in designing and manufacturing of compact electric
vehicles. Reva was acquired by Indian conglomerate Mahindra &
Mahindra in May 2010.
o Along with many other electric vehicles, Mahindra electric recently
launched 3 versions of electric auto rickshaws: -
▪ Treo, with a price tag of 2.79 lakhs (Ex-showroom Price)
▪ Treo Yaari, with a price tag of 1.77 lakhs (Ex-showroom price)
▪ E-Alfa Mini, with a price tag of 1.12 lakhs (Ex-showroom
price)
▪ All the versions of vehicles use lithium ion battery to power
the drive train except e-alfa mini that uses lead acid
batteries.
• Altigreen
o It was founded in 2012 by Amitabh Saran, Founder and CEO of
Altigreen. In initial stages, they used to retrofit diesel and petrol
cars with electric motors to convert them to hybrids.
o They have a production house manufacturing everything that goes
in an electric vehicle like electric motors, controllers, battery
management, etc.
o They already have released new model of electric 2-wheeler and
electric 4-wheeler (cargo vehicles).
o They are about to release their electric auto rickshaw with a price
tag of 3.5 lakhs as the planned specifications are very high using
high power drive train and battery (Li-ion).
• How Are We Different?
o The market segment is completely different as our target market is
conventional auto rickshaw retrofit market.
o Surveys done show that there is a great potential for retrofitting
market for auto rickshaws.

25 | P a g e
 o Our retrofit kit for auto rickshaw costs Rs. 73,044/- with minimum
specifications.
o We only deal with retrofitted electric auto rickshaws and we are
not into manufacturing new models of electric rickshaws unlike
Altigreen.
o We prefer use of lead acid over lithium ion battery as the cost of
the battery gets reduced hence reducing the overall retrofitting
cost. As most of our competitors are using lithium-ion battery pack.
o Most of our competitors are providing high specifications which are
in turn increases the cost of the vehicle. Hence, we have planned to
roll out a retrofitting kit that balances specification and price with
great quality.

SWOT Analysis
Strength: -
o Experienced Founders and Advisers in retrofitting field and
business.
o Technology partners identified
o Survey reflects need for supplemental support system for auto
rickshaw drivers.
o A great organized and energetic management team.
Weakness: -
o New business model for auto rickshaw drivers
o Lack of direct experience in business
o Strong dependency on quality of product providers
Opportunities: -
o Electric 3-wheeler sector is likely to grow significantly
o Potential expansion in southeast Asia and other countries
o A great way of boosting financial situation of auto rickshaw drivers
o Quality service for the auto rickshaw drivers
Threat: -
o Established brands entering this sector
o “Bad” or “Not up to the mark” quality of the product from the
partners.

26 | P a g e
Financial Projections
Revenue projections: -
o The company will begin to generate revenue from the month of
November 2020. As soon as the sales starts, revenue will start to
generate from the sales of retrofit kits. More the sales, more will
be the revenue generated in the company.
o Once the sales start, the revenue generation will also start. With
increase in sales, the revenue generated also increases. Hence, we
have fixed some sales targets for each month for a period of 24
months. Now, this target has to be achieved every month without
any fail. The sales of a month can exceed the target sales for that
month but it should not/ cannot be less than the target sales.
o Following table shows the Target Sales month-wise: -

Months Nov 20 Dec 20 Jan 21 Feb 21 Mar 21 Apr 21 May 21 Jun 21 Jul 21
Autos 5 5 5 5 10 10 10 15 15
Cumulative 5 10 15 20 30 40 50 65 70

Months Aug 21 Sept 21 Oct 21 Nov 21 Dec 21 Jan 22 Feb 22 Mar 22 Apr 22
Autos 20 20 20 25 25 25 30 30 35
Cumulative 90 110 130 155 180 205 235 265 300

Months May-22 Jun-22 Jul-22 Aug-22 Sep-22 Oct-22

Autos 35 50 50 75 90 100
Cumulative 335 385 435 510 600 700

o Revenue Table
Now, that we have our target sales fixed, let’s see the amount of
revenue that will be generated month-wise for next 24 months: - (in Rs.)

Months Nov 20 Dec 20 Jan 21 Feb 21 Mar 21 Apr 21

Autos 5 5 5 5 10 10
Revenue 3,65,220 3,65,220 3,65,220 3,65,220 7,30,440 7,30,440

27 | P a g e
Months May 21 Jun 21 Jul 21 Aug 21 Sept 21 Oct 21
Autos 10 15 15 20 20 20
Revenue 7,30,440 10,95,660 10,95,660 14,60,880 14,60,880 14,60,880

Months Nov 21 Dec 21 Jan 22 Feb 22 Mar 22 Apr 22

Autos 25 25 25 30 30 35
Revenue 18,26,100 18,26,100 18,26,100 21,91,320 21,91,320 25,56,540

Months May-22 Jun-22 Jul-22 Aug-22 Sep-22 Oct-22

Autos 35 50 50 75 90 100
Revenue 25,56,540 36,52,200 36,52,200 54,78,300 65,73,960 73,04,400

o Direct Costs: -
There is also some direct cost that goes out of the accounts of
company like salaries, machines, etc.
The amount paid to employees and for machines and equipment
month-wise are as follows: -

Months Nov-20 Dec-20 Jan-21 Feb-21 Mar-21 Apr-21

Tool Set 1 0 1 0 1 0
Cost 5000 0 5000 0 5000 0
Hand M/c 1 0 0 0 1 0
Cost 19,000 0 0 0 19,000 0
CNC M/c 1 0 0 0 0 0
Cost 80,000 0 0 0 0 0
Weld. M/c 1 0 0 0 0 0
Cost 35,000 0 0 0 0 0
Sales Team 2 2 2 2 3 3
Engineers 3 3 3 3 4 4
Accounts 1 1 1 1 2 2
Manpower 6 6 6 6 9 9
Salary (-) 1,38,000 1,38,000 1,38,000 1,38,000 1,92,000 1,92,000

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Months May-21 Jun-21 Jul-21 Aug-21 Sep-21 Oct-21
Autos 1 0 0 1 0 1
Tool Set 5000 0 0 5000 0 5000
Cost 0 0 1 0 0 1
Hand M/c 0 0 19,000 0 0 19,000
Cost 0 0 0 0 0 0
CNC M/c 0 0 0 0 0 0
Cost 0 0 0 1 0 0
Weld. M/c 0 0 0 35,000 0 0
Cost 3 3 3 4 4 4
Sales Team 4 4 5 5 5 5
Engineers 2 2 2 2 2 3
Accounts 9 9 10 11 11 12
Manpower 1,92,000 1,92,000 2,10,000 2,28,000 2,28,000 2,46,000

Months Nov-21 Dec-21 Jan-22 Feb-22 Mar-22 Apr-22

Tool Set 1 0 0 1 0 1
Cost 5000 0 0 5000 0 5000
Hand M/c 0 0 0 1 0 0
Cost 0 0 0 19,000 0 0
CNC M/c 0 0 0 0 0 0
Cost 0 0 0 0 0 0
Weld. M/c 0 0 0 0 0 0
Cost 0 0 0 0 0 0
Sales Team 5 5 5 5 5 5
Engineers 6 6 7 7 7 8
Accounts 3 3 3 4 4 4
Manpower 14 14 15 16 16 17
Salary (-) 2,82,000 2,82,000 3,00,000 3,18,000 3,18,000 3,36,000

29 | P a g e
Months May-22 Jun-22 Jul-22 Aug-22 Sep-22 Oct-22
Tool Set 0 1 0 1 0 1
Cost 0 5000 0 5000 0 5000
Hand M/c 0 1 0 0 0 1
Cost 0 19,000 0 0 0 19,000
CNC M/c 0 0 0 0 0 0
Cost 0 0 0 0 0 0
Weld. M/c 1 0 0 0 0 0
Cost 35,000 0 0 0 0 0
Sales Team 6 6 6 6 7 7
Engineers 8 8 8 9 9 9
Accounts 4 4 4 4 4 4
Manpower 18 18 18 19 20 20
Salary (-) 3,54,000 3,54,000 3,54,000 3,72,000 3,90,000 3,90,000

o Marketing Expenses: -
The company plans to invest some amount in marketing as well.
The marketing cost has been distributed and can be seen in the table in
Summary Financial Projections for next 24 months.
o Administrative Expenses: -
These expenses include routine expenses that organization would
incur for its functioning.

30 | P a g e
Summary of Financial Projections
The company will earn its revenue from its product i.e., retrofitted electric
auto rickshaws. The revenue of Rs. 3,65,220 is estimated to be generated from
the month of November 2020. The amount paid to employees and also for
machines and equipment will increase in line with revenue growth. Total
amount paid to the employees and for machines and equipment for the first
financial year (2020-2021) is Rs. 66,60,000.
Though the revenue will flow in from November 2020, the company will
begin to incur operating expenses from June 2020 in nature of salaries, rent,
marketing and other operating expenses. Overall total expenses will exceed the
revenue generated by the company for 19 months. Hence, the company will
incur loss till May 2022.
To meet the increasing demand of retrofitted auto rickshaws and provide
facilities for ease of functioning of the company, the company will recruit
employees regularly which will increase the salary pay out and other operating
expenses.
As the company plans to ramp up of its business, quantum of funds is
appropriated towards marketing expenses. These marketing expenses are
planned to create company’s brand, make brand presence known across the
auto rickshaw market and have a good brand recall among auto rickshaw
drivers.

The company is planned to ramp up of its business operations and expects

to register annual revenue growth of around 300%, with annual revenue of
Rs.1,02,26,160 for FY 2020 and Rs.4,16,35,080 for FY 2021.

Of the total annual revenue, almost 12.11% will be paid as salaries to the
employees, 0.75% will be towards machines and equipment and 5% will be
towards marketing.

Below is a detailed table showing all the direct costs, salaries paid to the
employees marketing expenses, revenue growth, overall profit/loss and also the
materials cost month wise: -

31 | P a g e
Months Nov-20 Dec-20 Jan-21 Feb-21 Mar-21 Apr-21
Autos 5 5 5 5 10 10
Tool Set 1 0 1 0 1 0
Cost 5000 0 5000 0 5000 0
Hand M/c 1 0 0 0 1 0
Cost 19,000 0 0 0 19,000 0
CNC M/c 1 0 0 0 0 0
Cost 80,000 0 0 0 0 0
Weld. M/c 1 0 0 0 0 0
Cost 35,000 0 0 0 0 0
Sales Team 2 2 2 2 3 3
Engineers 3 3 3 3 4 4
Accounts 1 1 1 1 2 2
Manpower 6 6 6 6 9 9
Salary (-) 1,38,000 1,38,000 1,38,000 1,38,000 1,92,000 1,92,000
Rent (-) 4,20,000 30,000 30,000 30,000 30,000 30,000
Materials (-) 2,66,850 2,66,850 2,66,850 2,66,850 5,33,700 5,33,700
Marketing (-) 18,261 18,261 18,261 18,261 36,522 36,552
Revenue (+) 3,65,220 3,65,220 3,65,220 3,65,220 7,30,440 7,30,440
Profit/Loss -6,16,891 -87,891 -92,891 -87,891 -85,782 -61,812
Overall -6,16,891 -7,04,782 -7,97,673 -8,85,564 -9,71,346 -10,33,158

Months May-21 Jun-21 Jul-21 Aug-21 Sep-21 Oct-21

Autos 10 15 15 20 20 20
Tool Set 1 0 0 1 0 1
Cost 5000 0 0 5000 0 5000
Hand M/c 0 0 1 0 0 1
Cost 0 0 19,000 0 0 19,000
CNC M/c 0 0 0 0 0 0
Cost 0 0 0 0 0 0
Weld. M/c 0 0 0 1 0 0
Cost 0 0 0 35,000 0 0
Sales Team 3 3 3 4 4 4
Engineers 4 4 5 5 5 5
Accounts 2 2 2 2 2 3
Manpower 9 9 10 11 11 12
Salary (-) 1,92,000 1,92,000 2,10,000 2,28,000 2,28,000 2,46,000
Rent (-) 30,000 30,000 30,000 40,000 40,000 40,000
Materials (-) 5,33,700 8,00,550 8,00,550 10,67,400 10,67,400 10,67,400
Marketing (-) 36,522 54,783 54,783 73,044 73,044 73,044
Revenue (+) 7,30,440 10,95,660 10,95,660 14,60,880 14,60,880 14,60,880
Profit/Loss -66,782 18,327 -18,673 12,436 52,436 10,436
Overall -10,99,940 -10,81,613 -11,00,286 -10,87,850 -10,35,414 -10,24,978

32 | P a g e
Months Nov-21 Dec-21 Jan-22 Feb-22 Mar-22 Apr-22
Autos 25 25 25 30 30 35
Tool Set 1 0 0 1 0 1
Cost 5000 0 0 5000 0 5000
Hand M/c 0 0 0 1 0 0
Cost 0 0 0 19,000 0 0
CNC M/c 0 0 0 0 0 0
Cost 0 0 0 0 0 0
Weld. M/c 0 0 0 0 0 0
Cost 0 0 0 0 0 0
Sales Team 5 5 5 5 5 5
Engineers 6 6 7 7 7 8
Accounts 3 3 3 4 4 4
Manpower 14 14 15 16 16 17
Salary (-) 2,82,000 2,82,000 3,00,000 3,18,000 3,18,000 3,36,000
Rent (-) 40,000 40,000 40,000 40,000 40,000 40,000
Materials (-) 13,34,250 13,34,250 13,34,250 16,01,100 16,01,100 18,67,950
Marketing (-) 91,305 91,305 91,305 1,09,566 1,09,566 1,27,827
Revenue (+) 18,26,100 18,26,100 18,26,100 21,91,320 21,91,320 25,56,540
Profit/Loss 73,545 78,545 60,545 98,654 1,22,654 1,79,763
Overall -9,51,433 -8,72,888 -8,12,343 -7,13,689 -5,91,035 -4,11,272

Months May-22 Jun-22 Jul-22 Aug-22 Sep-22 Oct-22

Autos 35 50 50 75 90 100
Tool Set 0 1 0 1 0 1
Cost 0 5000 0 5000 0 5000
Hand M/c 0 1 0 0 0 1
Cost 0 19,000 0 0 0 19,000
CNC M/c 0 0 0 0 0 0
Cost 0 0 0 0 0 0
Weld. M/c 1 0 0 0 0 0
Cost 35,000 0 0 0 0 0
Sales Team 6 6 6 6 7 7
Engineers 8 8 8 9 9 9
Accounts 4 4 4 4 4 4
Manpower 18 18 18 19 20 20
Salary (-) 3,54,000 3,54,000 3,54,000 3,72,000 3,90,000 3,90,000
Rent (-) 40,000 50,000 50,000 50,000 50,000 50,000
Materials (-) 18,67,950 26,68,500 26,68,500 40,02,750 48,03,300 53,37,000
Marketing (-) 1,27,827 1,82,610 1,82,610 2,73,915 3,28,698 3,65,220
Revenue (+) 25,56,540 36,52,200 36,52,200 54,78,300 65,73,960 73,04,400
Profit/Loss 1,31,763 3,73,090 3,97,090 7,74,635 10,01,962 11,38,180
Overall -2,79,509 93,581 4,90,671 12,65,306 22,67,268 34,05,448

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80,00,000

70,00,000

60,00,000

50,00,000

40,00,000

30,00,000

20,00,000

10,00,000

-10,00,000

-20,00,000

Materials (-) Salary (-) Rent (-) Marketing (-) Revenue (+) Overall

34 | P a g e