M/s SJ EXIM IM TECH Services New Delhi In Integrated ed Se Service e Cen enter r off ffering A Program/Project for Rural Connectivity & Business Integration Plan- Courier/Health/IT Services
Background • There is a huge potential for an integrated service offering focused only for Rural areas; • The huge population of the Rural India account for over 70% of the total Population of India; • Consumerism have seen a sharp increase in the last 3 FY in Rural belt; • There has been a sharp increase in the population of youngsters aged between 18 to 40 years using Mobile internet and smart phones in Rural India; • There are virtually no company or player in Rural India offering an integrated logistics for courier service; • There are just 2 to 3 companies across India who are offering such a service e.g Drishtee is present in pockets like Western UP, certain parts in Bihar and West Bengal; Professional courier is present in certain pockets of Maharashtra & Delhi/NCR zone; FedEx has a rural delivery programs however not focused on backend integration and is too much limited in scope and area;
Basic In Info: • Total No of Blocks in Bihar: 535 (Averaging 40-50 villages per block) • Total No of Blocks in Jharkhand: 260 (Average 60-75 villages per block) • Total No of Blocks in WB: 338 (Average 80-90 villages per block) • Average % of Household using Mobile Phones in Bihar: 51.6% • Average % of Household using Mobile Phones in Jharkhand: 44.1% • Average % of Household using Mobile phones in WB: 42.9% • Road, Rail & Other accessibilities are of very good levels in all the above mentioned states • Total No of People using Mobile Internet via smartphones in Rural India is 87 Million (Dec’ 2015 Data as per IAMAI report on Mobile Internet) • Total No of People using Mobile Internet via smartphones in Urban India is 219 million ( Dec’ 2015 Data as per IAMAI report on Mobile Internet)
Scope: • To offer full fledged Courier Service dedicated to Rural belts only; • To set up warehouses and Delivery Hubs/Centers and clusters across geography; • To set up a robust IT infrastructure-App based system, WMS, GPS & Fleet management systems, BAAN, Integrated Logistics management and contracts management system, Payment systems, RFID taggings/Barcoded model for order bookings; • To set up a robust delivery mechanism for courier services & e- commerce clients; • To integrate Health Service offerings at all centers at Village/Panchayat/Block/Tehsil/District/State levels- MOVAS/Knee Care etc; • To utilize the centers to offer integrated Internet café services for non Mobile phone users and IT training systems for the local population
Potential: • Targeted revenue in 1 st three FY: INR 20 Crores; • Potential revenue in 1 st three FY: INR 30-50 Crores; • To display & utilize the efficiency of MOVAS/Knee Care at minimum 44 clusters/Distribution hubs/Centers in the 1 st 6 months itself. This shall give Marutaka a different level of penetration in the market in rural belts with even just 2 to 3 machines at each centers. This will further generate business model & response from these markets; • To utilize these centers to offer Internet facilities for the local population. This may further give a boost to the digital India program & it may even open avenues for funding from VC funds and Central/State govt under the PMKVY (Pradham Mantri Kaushal Vikash Yojana), NSDC and other programs of the government; • Other revenue streams like Center based promotion programs may fetch additional revenues by Advertisements etc;
Steps Ahead: • Preliminary Data Collection Survey Program- ALREADY DONE & COMPLETED • MILKRUN to collect practical data for Cost analysis; • Comparative analysis of Costs (both CAPEX & operational), Risks, Infrastructure, Customer segments, Demand-Region wise to finalize the Physical location of the centers; • Simultaneously meet and talk to possible investors on the business model & come to a mutually beneficial business agreement; • List down possible investors & VC for Start ups funding; • FMEA analysis of various risks involved- Locational, Cost, RoI, Political, law & order, Social, structural, IT systems audit etc; • To plan a Pilot launch program in a specific region/area; • To plan and place a risk mitigation systems; • To talk to various stakeholders like the Insurance providers, Fleet owners, IT/Non IT supplies vendor; listing of possible vendors, Legal attorneys, Administrative officers from various State & central govt agencies and professionals from Courier and Logistics companies;
Possible Risks: • Business Model being flawed; • Risk analysis system being flawed; • Fail to assess Qualitative & Quantitative risks in the entire business model; • Failure to Incorporate the available data/information in the system or obtained during trial runs; • Political Risks; • Law & order problems; • Social Risk- Consumer behavior to test various payment methods; • Electricity supplies and other essential supplies; • Lack of proper campaigns to create awareness amongst possible consumers and clients; • Large Geographic spread outs for delivery system; • Lack of good quality vendors for Fleet supplies, IT & Non-IT supplies; • Higher rate of attrition amongst delivery boys and staffing issues; • Cost escalations due to unscrupulous elements demanding ransom or booty; • Too much reverse logistics costs because of refusal to accept ecommerce orders - from consumer ends; • Quality check issues arising from client ends and consumer ends- with regards to the product or services being offered;
Key Objectives: • To create a network of delivery system across rural areas and connecting them to the mainstream business centers; • To create a robust delivery platform for rural areas to facilitate courier services, propagating health/wellness for all, IT service offering in terms of Café’s and IT skilling services; • To create a niche mechanism to integrate the portfolio of services under one roof by using latest technology and methods; • To cater to larger possible geographical areas and to create an alternate for the postal services; • To create huge direct and Indirect employment possibilities by involving local population and further boosting the local economy; • To utilize various govt and private platforms to usher into a best business solution for clients and consumers alike;
Key In Investments: A. CAPEX COST: • IT Infrastructure (INR 65 Lakhs) - Website, CRM, ERP, SAP, App Based System, WMS & Inventory Management software, Community Wifi Platform, BSNL Infra set up, Computers, Laptops, Servers, Backend Integration for CS Platform; • Warehousing Set up costs for 4 Distribution hubs across Bihar: INR 60 Lakhs/Hub includes Security Systems, Fire Control Systems, Electricals & Plumbing Systems, Special equipment’s like Forklifts, Cranes, Cargo Sorting Systems, RFID/Barcoding Equipment’s, GPS coding systems. It does not include the cost of Civil structure as it will be leased; • Delivery Vans 10 Nos to start with- INR 50 Lakhs; • 10-15 Delivery Bikes to start with- INR 9 Lakhs; • 15 Movas Machine on a leased basis @ INR 15000/month/machine= INR 225000/month. If purchased then each machine costs INR 3.5 Lakhs/Machine i.e INR 52,50,000 • 15 Knee Care on a leased basis @ INR 12000/month/machine= INR 180000/month. If purchase then each machine costs INR 100000/Machine i.e INR 15,00,000 • Total CAPEX Cost shall be INR 4,32,50,000 B. OPERATIONAL COST: • Salary & Wages; • Fuel & Vehicle maintenance; • IT & Non IT supplies; • Vendor Payments; • Miscellaneous/Other Payments-Rents/Leasing costs;
Key Revenue Targets from Sources: • Through Courier Pick ups & Deliveries- approx. 10%; • Through E-commerce pick ups & deliveries- approx. 30%; • Through Internet café earnings- approx. 8-10% (Retail customers); • Through Membership Programs for Café & Health Services- approx. 30-32%; • Through the Sale of Time Slot’s on the community wifi broadcast platform- approx. 20%; • Additional revenue sources will be through promotional campaigns at centers/Ad sponsorship earnings & product promotion schemes;
Key Processes: • To create a network of digital platform to usher the best solution for clients/customers- Complete Process Automation; • Creating a network of Village level Franchisee points and connecting each center through the digital Platform; • Creating a strong team of Delivery personnel for Last Mile and First Mile; • Mapping the entire geography for MILKRUN purposes & GPS based navigation system for tracking purposes; • To ensure that every process is mapped and accountability fixed at every stage of activity; • To ensure that the manpower hired is trained enough to understand the system and ensure the best customer support services; • Develop a strong customer support team with the best service experience using the best technology (In-house) not out outsourced;
Contact Us: • Name: Mr. Ravi Shekhar Jha • Email ID: intelconsul@gmail.com • Mobile No: +91-9999005379 • Blog: www.sjeximservices.wordpress.com • Web: www.facebook.com/sjeximservices • Twitter: @jhasravi • Alternate Email: jha.sravi@gmail.com & jha.sravi@hotmail.com • Address: Kishangarh, Vasant Kunj, New Delhi- 110 070, India
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