M/s SJ EXIM IM TECH Services New Delhi In Integrated ed Se - - PowerPoint PPT Presentation

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

• fferings

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 1st three FY: INR 20 Crores;
• Potential revenue in 1st three FY: INR 30-50 Crores;
• To display & utilize the efficiency of MOVAS/Knee Care at minimum

44 clusters/Distribution hubs/Centers in the 1st 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

• f

Costs (both CAPEX &

• perational),

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 &
• rder, 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

• ffering 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