BUSINESS PLAN- Group 26

VELOCITY: “SERVING YOU

THE BEST”

About the Company:

 Velocity is a Trucking that aims to be one of the largest
trucking companies in India. Company’s initial focus is on the
food industry with plans to diversify with new industries served.
The initial destinations included for the operation are
Karnataka, Maharashtra, and West Bengal. The is a partnership
based company under the companies act 1956. The partners of
the company are Mr. Anand Rathi and Mr. Siddhartha Bothra.
The business initially starts with a very small area under cover
but with the increasing profit through the increase in the
number of customers we plan to expand in by the fifth year to
the other states of the country.

Keys to Success:
The key to the success of the company is its unique pricing
policy and the customer friendly services provided to its
customers.

Segmentation:
Velocity will serve four different market segments. The first, as
mentioned earlier is the food industry. This segment is growing
at an annual rate of 3% with plenty of customers identified. The
second segment is the computer industry with a 5 % growth
rate. The retail industry is the third with a 2% growth rate. The
last segment is a catch all "other" segment growing at 2%.

Targeting:
The main target of the company is the three states as
mentioned in the early stage and with the increase in the
revenue and the customers with the passage of the time we
plan to expand to the other states also. And after the fifth year
we plan to become one of the major transporting company in
the country.
Human Resources:
The number of employees in the company in the initial stage
would be less as the business is not that much expanded and
would increase as the business expands across the years. The
breakup of the employees and their salary given in the table
below:

Employees No. of Employees Salary

Drivers 10 3500
Helpers 10 1500
Cleaners 5 800
Accountant 1 5000
Staff 2 3500
Workers 5 1000

Share of the capital:

The share of the capital of the company is equally divided
among both the partners respectively.

Name Amount Contributed (in

Rs.)
Siddhartha Bothra 2500000
Anand 2500000

Marketing
The marketing strategies adopted by our company would be all
simple. We would register ourselves with the yellow pages this
is because people look through yellow pages to find whatever
they want. As though this industry does not need that much of
advertisements to be done so marketing is not a problem for
us. The only way for the marketing of our company is through
creating network and contacts with more and more people.

SWOT Analysis

Strengths:
Low infrastructure cost

Less requirement of land

So this leads to low expenses on the infrastructure and other

related things.

Low cost of advertisement.

Weakness:
Delay in the delivery of goods.

Accidents may lead to a heavy loss.

Increase in the oil prices may lead to strikes.

Opportunities
The opportunities are that there is a lot of competition and
there is a scope to provide the service at a less price
comparatively to other players in the market. This will give us a
competitive edge over the others.

Threats
Lots of competition

Change in the prices in the market

New entries

Monthly expenses details:

Particula Expe
rs nses
Rent 4000
EMI 12500
Diesel 180000
Maintenan 8000
ce
Telephone 1000
bill
Electricity 1000
Salary 56500
Agents 30000
Insurance 20000
Lubricants 42000
 Stationary 2000

Cash flow statement

INCOME Rs.

Sales 420000

Total income 420000

Expenses

Fuel Cost 2160000

EMI 150000

Rent 48000

Salaries 678000

Insurance 240000

Maintenance 96000
Stationary 24000

Telephone bill 12000

Electricity 12000

Lubricants 504000

Advertisement 20000

Computer 20000

Printer 4500

Total Expenses 3968500

Start up Expenses:
Particulars Cost Quantity Total Cost

Trucks 250000 10 2500000

Road Permit 1600 1 1600
Road 13000 1 13000
permit(other
states)
Road tax 11000 1 11000
Insurance 2000 10 20000
Trade licence 4000 1 4000
Office 3000 3000
Computer 20000 1 20000
Printer 4500 1 4500