1.

INTRODUCTION OF ENTREPRENEUR AND KEY ASSOCIATES

Detonare (P) limited is basically a company which is to be founded by two dynamic individuals Mr. Pratik agarwal and Rajinder Mehta who are the batch mate of MBA course. Mr. Pratik Agarwal came with the basic idea of business. Later on Mr. Rajinder Mehta showed interest idea and eventually they decided that they will enter into said business in near future. Pratik is a young, innovative graduate from Delhi University and has the seed of business in his blood which he got inherited from his forefather. Basically he is a commerce graduate with specialization in account and which shows strong accounting and financial support. He is highly motivated guy and is always keen to give shape to idea. One the other hand Rajinder Mehta is a BBA graduate with mastery in math and business strategy. Being a son of political leader, he has good political as well as financial support. Moreover he is an MBA student which profile most strength.

KEY ASSOCIATE :-

Mr.Pawan Agarwal,father of Pratik Agarwal, who is basically business man, having rich experience of 20 years. He came up with many business some of which failed and some are successful. Pravesh Mehta, father of Rajinder Mehta is a political leader of known political party. Being a political leader he has very good network of bureaucrats which can give strength to the upcoming business. Moreover he has rich experience of around 30 year which can very helpful for the young entrepreneurs.

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2. EXECUTIVE SUMMARY
Detonare (P) ltd is in the business of supply of govt. licensed detonators. Our office would be located in Dhanbad, Jharkhand. Our Unique Selling Preposition is quick and easy availability and delivery of detonators. Our vision is to make the easy availability of explosives and hassle free delivery. As the suppliers are very few in numbers and demand is very high, Dhanbad becomes our optimum location for the launch of the product. Our target customer would be the owners of coal mines, crushing agencies and the lease owners of Pebble Mountains As we went through our competition and risk analysis it was discovered that competition and risk to us is low. We plan to have offices across the country within five years of business. Moreover it is expected that initial investment would be recovered within three to four months. We would be funding our business with 30 % of Venture Capital, 20 % of Personal Loan and rest 50 % Secured Loan. Talking about our launching of product we would organize an event in the industrial area, using banners and hoardings and direct marketing of our product.

3. OPPORTUNITY AND POTENTIAL MAPPING

As this business of supply of detonators will be commenced in the region of Jharkhand probably Dhanbad which is considered as the coal capital of India, this business has good potential and opportunities ahead .Being coal capital of India the opportunities can be seen as there are large number of Coal mines and other mines too which would be the potential customer of the company. Moreover the region of Jharkhand is surrounded by large number of mountains too which can be seen as opportunity for the company. As we know there are large number of coal mines, other mines and mountain, the demand for explosives is very high over there but the supply of explosives for blasting and crushing is not as per the demand. As per the research there are only seven or eight registered suppliers of detonators which again show that there is an opportunity. And if we talk of unregistered suppliers of detonators although there are

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few suppliers but they have very low market share as the people are afraid to buy from them due to increasing problem. Moreover the entry of new firm is not easy and restricted as this business requires procurement of license from government which is not easy to obtain and government puts restriction on it.

PROBLEM IDENTIFIED
The basic problem is that the demand for explosives is very high but suppliers are very few. In fact its not easy to locate a supplier. Moreover the suppliers are not very professional there is always a problem of timely and safe delivery. For a new firm being in the business of blasting in mines its very difficult to locate the suppliers of explosive. And even if the people got suppliers of the explosives and get the delivery it become very difficult to use explosives for blasting as they face restrictions from govt. in term of not having license for blasting. So there are the problems which can be considered to make the business more successful and be the pioneer in the industry.
4.

MARKET SIZE

Initially the market size would cover the whole of Jharkhand region but in later stage we would try to expand to the whole of the India.

SEGMENTS
Our market is divided into 3 segments 1st.Mines owners these are the owners of coal mines and others mines who requires explosives for extractions of coal etc.

2nd. Crushing agenciesthese are the agencies who have taken a pebble mountain for lease to extract pebbles by using explosives. 3rd. Road contractorsthese are the persons who taken the contract of the construction business and they sometimes deals in crushing of pebbles.

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OUR PRODUCT & SERVICES

Detonator Licensing services.

MARKET ANALYSIS
As we have conducted a research we found that the product will have great demand as there is scarcity of supply of the product. Even though there are number of suppliers but most of them are not registered with the govt (License Holder) and are not worth trust. Plenty of suppliers are involved in the illegal delivery of the products which can make purchasers of the product land into deep trouble. So as per the research work done most of the suppliers are Illegal in the eyes of law which creates a gap between demand and supply and thus gives an opportunity to enter this market.

5. BUSINESS MODEL

i.CUSTOMER SEGMENTS:

Owners of coal mines Lease owners of pebble mountains Road Contractors

Location : Jharkhand Bihar West Bengal

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ii.VALUE PREPOSITION:

Quick, safe & easy delivery of products Licensing facilities to companies engaged in exploding No restrictions from government or other authorities on exploding No minimum requirements of purchase quantity Registered with the Govt for supply of the product

iii.CUSTOMER RELATIONSHIP:

Organizing an event for the launch of the product.

Get together with corporate customers once a year Giving festival discounts during festive seasons

iv.CHANNELS: Advertising through print media Sponsorship of various events Organizing events Direct Marketing

v.KEY ACTIVITIES: Conduct a Market Research Preparation of blueprint of action

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Procurement of funds Construction of strong room Establishment of head office Hiring the employees Negotiating with logistics company for logistics arrangements Planning an advertising campaign Launching of the product Creation of demand for the product Delivery of the product Customer relationship management

vi.KEY RESOURCE: License Transportation Capital Market Research Strong room Employees Advertisements

vii.KEY PARTNERS: Govt. Authorities

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Logistics company Market Research Agency Employees Other Suppliers Advertising agencies Event Management Agency

viii.COST STRUCTURE: License Fees = Rs 3 Lakhs Construction of strong room = Rs 2 Lakhs Purchase of materials = Rs 5 Lakhs Advertising and Promotion = Rs 1 Lakhs Total Investment = Rs 16 Lakhs

ix.REVENUE STREAMS: Sale to coal mines Sale to lease owners Sale to contractors Licensing fees from companies engaged in exploding

x.COMPETITION AND RISK ANALYSIS

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Risk and competitive analysis can be efficiently done by using porters five forces of competition which are listed below:i.

Bargaining power of customers:-As per the market research the bargaining power of customer is low as the supply is less in comparison of demand.

ii.

Bargaining power of Supplier:-Here the only supplier is the govt. and the govt. would not stop the supply unless default is done so, bargaining power of supplier of is not very high.

iii.

Threat of new entrants:- In this particular business one has to acquire license from the govt. puts restriction on issue of new license. So in this case the threat of new entrants is low.

iv.

Threat of substitutes:- The threat of substitutes is there in every business so in our business. Here the threat of substitute is very high as the technology is advancing.

v.

Competitive rivalry within the industry:- The competitive rivalry is there in this industry but there is not too much competition as the number of players are limited.

Hence, this brings us to a conclusion that competition and risk is there in this business but to a very limited extent.

xi.TIME LINE OF MILESTONE

Sale of 1,00,000 pieces of detonators within two to three months of commencement Opening of multiple branches in Jharkhand region within one month of commencement Capturing 60% of the total market share within two to two and a half year of business. Branches across the country within 5 years of business

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xii.FUNDING
Total investment Required = Rs 19 lakhs Venture Capital = Rs 6 lakhs Personal Loan from frends and relatives =Rs 4 lakhs Secured Loans = Rs 10 lakhs

xiii.PRICING MODEL
Purchase of Detonators (1,00,000 units)@Rs 5 each = Rs 5,00,000 Add: wages and other factory overheads = Rs 60,000 Add: Rent of strong room = Rs 60,000 Net Factory Cost = Rs 6,20,000 Add: Administrative Expenses = Rs 1,00,000 Cost of production = Rs 7,20,000 Selling Expenses = Rs 1,00,000 Cost of Sales =Rs 8,20,000 Cost of sales/ unit = Rs 8.20 Add: Profit (Margin) = Rs 6.80 Selling price = Rs 15 / unit Actual Profit = Rs 6.8 Lakhs

6. Implementation of business plan

We would lunch the product by organizing an event in the industrial area, putting up the banners and hoardings and using direct marketing tool for providing information about the product and marketing of product.
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