AGNI CHOOL
Executive Summary
Our product is an AGNI CHOOL. It is set up by 6 management students after been concerned with the environment, they came up with the plan for welfare of rural masses. The main reason behind invention of the product was the environment which was been hampered with the present usage of chool and the blower. AGNI CHOOL has two compartments first is coal using chool & second is Gas (mainly use of biogas). The company decided to focus on smokeless chulhas which creates a safer environment for indoor cooking in several ways. It traps smoke and heat inside a locally cast housing in such a way as to heat two pot-holes with a high rate of efficiency to require less fuel. It then directs the smoke through a chimney chamber that includes a stack of slotted steel tablets-they capture particulates as the smoke moves through, cleaning the exhaust before it ever leaves the assembly.
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The chulhas chimney then includes an indoor access for cleaning, eliminating the need seen in previous devices for a family member, usually the mother, to climb on the roof and attempt cleaning. This has been blamed for many accidents, along with the toxicity of the smoke. AGNI initially (We) will have a tie up with local vendors of Nagpur and Gondia & small villages, district so that it would be easier to reach the rural masses and create awareness among them there it will help to promote our product in the market. Our customer will be a rural people of Maharashtra (Targeting areas are Nagpur & Gondia & Marathwada) However it plans to enter the rural market, and later on in domestic market. Our future production will be as per the demand in the market. We think that our product will be successful in rural market because its a unique product.
POPULATION ( IN Maharashtra) :
Area (2001) Nagpur Gondia Total 40,51,444 12,00,151 Male 20,95,489 5,98,447 Female 19,55,955 6,01,704
LITERACY RATE:
Sr. no. 1. 2. Area (2001) Nagpur Gondia Total (%) 84.18 % 67.67 % Male (%) 88.75 % 76.74 % Female (%) 75.76 % 58.62 %
Market research
Primary Methods: Tea stalls Household Secondary Methods:
Segmentation for rural markets in Maharashtra Geographic: Region Village size Density Demographic: Age Family size Gender Income Occupation Education Psychographic: Lifestyle Personality Behavioral: Occasions Benefits User status Usage rate Attitude to product Maharashtra state is in western . In mainly eastern area. (Nagpur, Gondia) 10,000 & above Rural Above 25 2 & above Male & female 3000-6000 per month Poultry farming, goat/piggery agriculture farming etc. Literate , semi- Literate, illiterate Rigid Decent Regular Quality, price, service, durability. First time user Light user, medium user Positive, enthusiastic.
development,
fisheries,
Targeting: The target markets for our Agni chool are Nagpur & Gondia. Apart from these areas we have decided to target our product in rest of the Maharashtra if our product is successful. Main reason for targeting these areas is because coal easily available in these areas & also at reasonable rate. The target audience for our product is mostly housewives of rural area. We have targeted all the housewives of selected region. Positioning: The positioning of our chool is, It has 2 compartments, 1st for coal & 2nd for biogas There is a separate blower in-built Our chool can absorb heat.
Product design
Compartment 1
Burner
Chimney
Fan
Door
Biogas Pipeline
Compartment 2
Burner
Rural communication
Wall Paintings Haats & melas Television Radio Word of mouth
As per Partnership deed and level of Investment by each partner Profit sharing ratio is 1:1:1:1:1:1
Sr No. Products
1 2 Agni Chool with 2 cooking unit Agni Chool with 3 cooking unit
Sr NO. 1 2 3
2013
30,07,800 1,03,42,200
20,25,000 47,22,000
Marketing/promotion
93,445
Depreciation
Finance expenses Total expenditure Profit before interest & tax Less : Tax Profit after interest & tax
2,90,000
30,000 75,43,195 27,99,005 8,39,701 19,59,303
Future Plans
Setting Up of Bio Gas Plant Developing new Product by sending on Research n Development Applying for Govt. Subsidies so that MRP of the Agni Chool can be reduced.
Competitors:
Priyagni Portable Chulhas. Mamta Chulha.
Threat of New Entrant: In case of AGNI CHOOL the threat of new entrant is high because of the high brand loyalty, customer switching costs and economies of scale where as capital investments required is low. Competitive rivalry within an industry: The competitive rivalry within an industry is low. Industry competitive structure shows that there are only two companies in the market with huge rural masses. There is high industry demand for the product in the upcoming market. Bargaining Power of the buyers: The bargaining power of the buyers is low which shows the possibility of forward integration is high. Bargaining power of the suppliers: The bargaining power of the suppliers are high which has few suppliers and high switching costs and there is a high importance of industry and the suppliers have few substitutes Threat of substitutes: Threat of substitutes is high where they have an option of mud chulhas and the quality of substitutes is also high.