Executive Summary

Transportation engineering could change the way we live. Car industry is growing very
rapidly in developed countries. There are plenty of opportunities to grow but entrepreneur
have not come yet to establish a car manufacturing industry in Bangladesh. The crisis of
fuel is coming out in such a manner that people could buy a car but they cannot afford to
maintain that in daily basis. Price of fuel, gas & oil are increasing every week. So, SBJR
Ultimate Aero Ltd. thinks to get rid of this problem to assemble solar cart to reduce the
excessive demand of natural fossil fuel.
As a populated country in the South-Asia continent SBJR Ultimate Aero Ltd. is mainly focus
on middle class people who are leading their life very simple. The main reason behind the
selecting of middle class people is to add some extra assistance in their daily life which
made their life easy, comfortable and colorful, like; save time, cost consumption, mental
satisfaction etc. which will remove their daily monotony. There is no direct competitor for
us inside Bangladesh as we are manufacturing cars but some competitor may reveal. : SBJR
Ultimate Aero Ltd. will be the first car manufacturing company in Bangladesh. In this car
industry in Bangladesh there are plenty of scopes to spread out and capture the 40%
market of car sales.
Apart from this within 2022 SBJR Ultimate Aero Ltd. will do research and develop some
upgrade technology due to the necessity of technological development like wind power
technology. This is because this type alternate power helps the world to reduce pollution,
also more effective rather than today’s car, behind this reason the it helps to reduce up to
95% fuel consumption which will Be great relief for our consumers.
This is a developing project of making solar car in Bangladesh. We have described every
possible aspect setting up a car manufacturing company. Our predicting mind mapping
would be effective when this dream project will see the light of reality.
Introduction
Bangladesh is a small & huge populated country in the 3rd world. So it is quite difficult to
reach here every people to bring with solar power car for SBJR Ultimate Aero Ltd. just
because of different kinds of critical issue. But time are changing, world is now facing
endanger of climate change, in this situation Bangladesh standing in front of the row for
this kind of upcoming calamities. On the other hand; developed countries government are
not quite sincere about this for the huge emission of CO2, but victims are Bangladesh like
countries that are located in coastal area. It’s because the temperature are increasing day
by day, similarly sea level comparatively raising more. In these severe circumstances of
present climate, SBJR Ultimate Aero Ltd. already take significant initiative for the welfare of
world environment that is within 2015 “SBJR” will introduce the solar power car
commercially. Motor car are increasing relatively price of oil and CNG also getting higher in
present days. So it creates the demand of solar car internationally, which helps to remove
extra human created temperature & makes people life easier.

Vision
SBJR Ultimate Aero Ltd. is promising to give safe home on road with maximum safety, high
mileage and prestige; providing economy car with highest environment friendly
mechanism and sophisticated long lasting drive.

Mission
SBJR Ultimate Aero Ltd. assembles superior cars with best machineries collected from
different part of the world. By using modern technology and advanced knowledge of our
engineers SBJR Ultimate Aero Ltd. is promising availability of every car accessories you
need & facing the challenges of fuel crisis in the edge with minimum fuel consuming ride
using solar system.
Company Overview:
SBJR Ultimate Aero Ltd. will empower the South-Asian auto-mobile market specifically
Bangladesh auto-mobile market through the application of cost leadership strategy and
latest auto-mobile technologies. The company will start to export their auto within 2025.
Which will be the South-Asian’s leading provider of cheapest auto mobile cars and services,
by 2040. SBJR initial investment will be 200 cores where 100 comes from 5 partners.
Another 100 will invest IDLC finance limited specially on our Structure, power station, also
in Machineries & Technology on the 8% interest rate which SBJR have to provide within
2035(within 20 years).
 Products/Services:
 SBJR Ultimate Aero Ltd. will introduce two types of auto-mobiles in the market of Bangladesh:

i. Personal car (Mars): These types of car will serve the middle class families whose don’t
have the ability to purchase a recondition brand personal cars (Honda, Toyota, Mitsubishi
etc). So middle class families’ people can afford a brand new solar car (Mars) in this market
with least price from SBJR Ultimate Aero Ltd. This type of vehicle will be the key particular
of SBJR business.

ii. Commercial transportation: These types of auto-mobile will satisfy the need of
commercial purposes like pickup, mini-bus, taxi-cab etc.

 Services: SBJR Ultimate Aero Ltd. will offer their customers with different type of services
such as 4 years warranty, insurance etc.

 Purchasing options: SBJR Ultimate Aero Ltd. will introduce affordable auto-mobiles by
offering attractive financing options for both personal and commercial purposes. This will
enable middle class families to make purchases in small monthly installments, in the same
way that a consumer would buy an automobile in the United States. The services provided
here will enable, motivate, and educate people to start new businesses.

 Raw materials: The key components of SBJR Ultimate Aero Ltd. auto-mobiles and from
where the raw materials will be managed by SBJR Ultimate Aero Ltd. auto-mobiles:
Name ofName of Price in Quality Price in Quality
Categories Parts Japan China
Auto Chassis Auto Axle, $40-300 High Medium
system Clutch, Brake
System,
Steering
System,
Suspension
Parts,
Transmission
Parts etc.
Auto Engine Automotive High Medium
& Engine Engine
Parts Cooling $10-150 Medium $2-100 Medium
 System
Automotive
Battery

Auto Auto motors , $100-300 High Medium

Electrical Auto sensors,
Products Other auto
electrical
products etc.
Auto Auto $20-200 High High
Accessories Electronics,
Auto exterior
accessories,
Auto exterior
accessories
etc.
Solar Array solar 3 $1500-4000 High Medium
panel set(750
cells)/car,
maximum
point power
trackers(125
volt/set)
(MPPT),
charge
controllers,
associated
accessories

So from the above comparison we can see that buying parts from China is more cost
effective than Japan. Thailand & India is another easy source of cheap car parts. But the
problem is there quality is not that much good. So at present we are going to buy parts
from China to avoid risk. We will produce only body kits of the auto-mobiles. We will use
battery made by Bangladesh companies. Then we just assemble all the parts those
imported from China and our own raw materials in our production system.

 Shipping Cost: If we bring parts through air then our cost will be $2.3/Kg. And if we bring
through ship then our cost will be $1.6/kg.

 Import Duty: Import Duty of Engine and other related parts= Tk.25/unit. In case of most of
the parts import duty will actually depend on the weight. The range of import duty of these
kinds of parts is Tk.5 to Tk. 25 per Kg. But this may also vary on the specialty of the parts.

 Beta testing: SBJR Ultimate Aero Ltd. will provide its first production 30 auto-mobiles to the
government employees for 6 months. All 30 auto-mobiles will give to different sectors’
 government employees for personal usages for the beta testing. After the 6 months beta
testing SBJR Ultimate Aero Ltd. will take corrective action if necessary and then supply its
products and services in the market of Bangladesh for the common people.

 Future projection: In Bangladesh within 2018 we (SBJR Ultimate Aero Ltd..) will try to make
fulfill our local demand . Afterwards we must strive to penetrate in south Asian countries,
by providing different test in transportation within cheapest rate among the existed
competitor & make to ensure the Brand value. Apart from this within 2022 we will do
research and develop some upgrade technology due to the necessity of technological
development like wind power technology. This is because this type alternate power helps
the world to reduce pollution, also more effective rather than today’s car, behind this
reason the it helps to reduce up to 95% fuel consumption which will Be great relief for our
consumers.

Technology
According to the strategic plan SBJR Ultimate Aero Ltd. will introduced solar car first time
commercially in Bangladesh. Beside this in Bangladesh SBJR Ultimate Aero Ltd. also doing
their further research on wind energy, this is because whenever car running on the road
wind will come automatically, but sun doesn’t stay all-time in the surface. Therefore, if
solar reduced up to 50% cost on the other hand almost 90% oil cost can easily reduced
by wind energy.

Additional research and development

 Emission Standards: With the help of automotive technologies, a check can be put on the
emission of harmful pollutants such as NO2, particulate matter (PM) or soot, Carbon
Monoxide (CO) or volatile hydrocarbons. As a result, it would be easier to lower down the
pollution level and save the planet from global warming.

 Automotive Engine: It was human perseverance and determination to build something

better and powerful that has finally paid off towards achieving the means of faster and
more comfortable journey today.

 Suspension technology: The suspension system comprises of springs, shock absorbers and
linkages. This system connects the vehicle to its wheels.

 Safety technology: SBJR Ultimate Aero Ltd. will lead the nation in road safety, with the
introduction of seat belts, the roll out of drink driving technology and random drug testing;
also give the Lane Departure Warning etc.

 GPS Technology: Built in road map of Bangladesh will be added in the car technology for
the driver.
 Intended Market environment
In view of the fact that a populated country in the South-Asian continent SBJR Ultimate
Aero Ltd. is mainly focus on middle class people who are leading their life very simple. The
main reason behind the selecting of middle class people is to add some extra assistance in
their daily life which made their life easy, comfortable and colorful, like; save time, cost
consumption, mental satisfaction etc. which will remove their daily monotony.
Distinguish between User and Consumer
Meanwhile SBJR Ultimate Aero Ltd. has decided within 2022 years to2025 years they will
expand their business in South-Asia, by providing good looking cheapest among the
competitors, that’s why In Bangladesh SBJR Ultimate Aero Ltd. will do their business
especially in Bangladesh with focusing on business to consumer strategy, which means end
user. Those people will directly use this car for their personal or business purposes. So in
Bangladesh no existence of dealer, wholesaler, or commission broker of auto-mobile
enterprise will happen in here.

Target market

The target market of SBJR Ultimate Aero Ltd. is to make the life style more flexible & easier
in the middle class people class people in South-Asian continent. This helps the people to
enjoy the modern lifestyle feelings in their daily life. Man and woman are both are our
consumers. That’s why we are mainly focusing on the middle class people of
Bangladesh firstly. At first our target market size will be small like we only want to
capture 10% of market shares of the current auto-mobiles user with in 2016.

End user benefit

SBJR Ultimate Aero Ltd. has plan to provide lot of incentives for the end user basically who
are like to buy the car from SBJR Ultimate Aero Ltd. Such kinds of benefits are:
 Installment advantages
 Directly handle the Brand new solar car
 To provide an overview & indication of direction of car
 Home service and repair
 Available cars parts in any outlet
 Extra solar power board
How & why end user buy the product
Moreover there is no existence of Business to business strategy that’s why SBJR Ultimate
Aero Ltd. will start their business in BANGLADESH initially by 7 divisional big showrooms.
For ex; Dhaka, Chittagong, Khulna, Sylhet end user can easily buy their preferable solar car
from there.

Projected needs
For establishing a successful automobile company in Bangladesh, needs too things
(support) from inside & country & also from government. These are,
 Huge capital & partners
 Government support & incentives
 To get the surety about raw- material of automobile and solar kits
 To get the specialist & also efficient worker from abroad & country
 Rapid and positive respond among the user before the penetration in the market.

Market opportunity
 There is no local competitor (manufacturer) inside the Bangladesh, only the some branches
are existed only in Dhaka city. This helps to SBJR Ultimate Aero Ltd. particularly in
Bangladesh can emphasize to do the monopoly business theory.

 Apart from this, as a Greenfield investment by negotiating with government SBJR Ultimate
Aero Ltd. has the best possibility to get government subsidy & incentives.

 The main thing in Bangladesh is most of the people are middle earners now established In
Bangladesh after liberation war, which helps to do their business spontaneously.

 Whenever lot of numbers of people working here automatically it will marketing man to man
process which reduce the cost significantly.

For Business to Consumer Market:

Demographically
 Age: 25to above age’s Middle class type people that can be both man and women is the main
target market.

 Income level: Otherwise couple of recent years ago Bangladesh people are continuously
increasing their per capita income; despite to become poor many people are changing their
life and also improving. People who are capable to earn yearly tk. 420,000 to tk. 1,000,000
they are the main target market.

 Gender: Women’s education ratio is also increasing. So after completing the graduation,
young men or women like to do job or started their own business, find out for them a
regular basis income source. So that time people like this kind of vehicle with in low
maintaining cost which is become planned by SBJR Ultimate Aero Ltd.

Psychologically
SBJR Ultimate Aero Ltd. will provide such kind of facilities which really helps consumers in
too many ways. For ex;
 Cheapest rate solar power energy facilities.
 Introduced firstly Bangladesh people a brand new solar car.
 Tries to brake the shackled tradition
 To get extra ordinary design car body & solar.
 End users can directly any type of available/ existed model car.
 Hour’s repair and showroom services, also 4 Years warranties.

Behavioral:
SBJR Ultimate Aero Ltd. will look for Middle higher, middle lower, and middle class people,
where 80% sales comes from themselves & 20% come from others(higher& lower class
people). By given an acme solar car facilities SBJR Ultimate Aero Ltd. try to grab this people
as a loyal user.

Competitors Profile
There is no direct competitor for us inside Bangladesh as we are manufacturing cars but
some competitor may reveal in such case:

Foreign Competitors
In Bangladesh, Toyota has already captured lion shared of car importers. Nissan,
Mitsubishi, Honda, Mazda & BMW are also striving to get into Bangladesh. In this situation,
those companies may not have their HQ office in Bangladesh but their market would be
hampered significantly.

Car Importers
People who are directly buying re-conditioned cars from abroad and selling these in
Bangladesh they will be affected for our car manufacturing operation in Bangladesh. Car
importers will lose their re-conditioned car market when the citizen of Bangladesh would
buy brand new car with low cost.
 SWOT Analysis
Strength:
 Cost Leadership: As SBJR Ultimate Aero Ltd. will assemble cars in Bangladesh so it does not
have to pay 400% imported taxes on every car. In that case price would be 4x less than the
imported cars.

 Customer Service: Providing superior service to our clients and customers, buyers’
satisfaction would be easier to achieve because other car importers do not provide free car
servicing.

 Car Accessories & Spare parts: After buying a car, owners think a lot that the accessories
of their car is available or not. As SBJR Ultimate Aero Ltd. Bangladeshi brand, so owners
won’t feel any problem about supply of SBJR Ultimate Aero Ltd. cars’ accessories & spare
parts.

 Fuel consumption: Price of fuel increasing day by day, as SBJR Ultimate Aero Ltd. solar car
will be using less fuel to gain the initial speed and then 0% fuel consumption and long
mileage so it would be our core competency.

 New technology: SBJR Ultimate Aero Ltd. is introducing the unique latest technology in the
car industry of Bangladesh. So that can be a competitive advantage over our competitors.

Weakness:
 New Brand: SBJR Ultimate Aero Ltd. is a new car brand for customers so achieving loyalty
could be the challenge.

 Durability: Comparing the quality of Japanese cars, SBJR Ultimate Aero Ltd. may not be
satisfactory.

 Car Technicians & Engineers: Skilled Human Resources for such kind of operation is
highly recommended. SBJR Ultimate Aero Ltd. may have scarcity of motor mechanics.

Opportunity:

 Green Field Investment: SBJR Ultimate Aero Ltd. will be the first car manufacturing
company in Bangladesh. In this car industry in Bangladesh there are plenty of scopes to
spread out and capture the 40% market of car sales.

 Foreign Currency: Surplus production can be exported to abroad to earn foreign

currencies for Bangladesh.

 Developed machine engineering: There are favorable resources in Bangladesh but due to
no scope for blooming resources like motor experts are leaving their own nation and doing
 paid jobs in other nation. SBJR Ultimate Aero Ltd. could recruit them and make a skilled
manpower on motor technology.

 Tax Benefits: It’s a new industry in Bangladesh, so we might get tax rebate.

Threats:
 Road construction: Poor condition of highway road car may not be lasted long as expected.

 Government Rules & Regulation: Surplus cars are responsible for traffic jam, due to traffic
jam & increased numbers of cars it may be tough to get permission to produce economic
scales of cars.

 Threats of Importers: Existing car importers could be settled a syndicate to kick out SBJR
Ultimate Aero Ltd. from the car business. Importers might bribe the authority to create
barriers for SBJR Ultimate Aero Ltd. operation.

 Easy to copy: As we are only buying car machineries and assembling those machines to
build a car so it’s very easy to imitate.
 PEST Analysis
 Political: Since SBJR Ultimate Aero Ltd. operates in Bangladesh market which is politically
biased, so it needs to pay close attention to the political climate but also laws and
regulations while also paying attention to regional governing bodies. Laws governing
commerce, trade, growth, and investment are dependent on the local government as well
as how successful local markets and economies will be due to regional, national and local
influence.

 Economic: Right now the economical situation is not stable because there is an economic
recession due to the bubble blast in the share market of Bangladesh. So the purchasing
power of the target market is decreasing day by day. This will affect the growth rate of SBJR
Ultimate Aero Ltd. There is also a high inflation rate exist in this current economy. This
will also affect the SBJR Ultimate Aero Ltd. Currency fluctuations can equate to higher or
lower production cost for SBJR Ultimate Aero Ltd. vehicles which in turn affect profitability.
It influences where capital investment will develop and prosper.

 Social: Undoubtedly, the beliefs, opinions, and general attitude of all the stakeholders in a
company will affect how well a company performs. This includes every stakeholder from
the CEO and President, down to the line workers who screw the door panel into place, from
the investor to the customer, the culture and attitude of all these people will ultimately
determine the future of a company and whether they will be profitable or not.

 Technology: SBJR Ultimate Aero Ltd. is ahead of the game in the technology field. The
foundation of the company’s growth is depending on a deep understanding of economic
stimuli and customer needs, and the ability to translate them into customer-desired
offerings through leading edge R&D”.. In all, an automobile manufacturer must change,
adapt, and evolve to stay competitive in the automotive game and this is exactly what SBJR
Ultimate Aero Ltd. will do with its’ rapid growth, and extensive research and development.

 Environmental: It’s a great threat for environment to build a car. To manufacture car lots of
pollution is to be emitted in the environment. Plenty of CO2 and wastes are gathered so,
SBJR Ultimate Aero Ltd. will be setting up environmental protected waste recycling
machineries to reduce the danger of nature.

Uniqueness
The uniqueness of our product is we are using the Sun light energy in our product. This
technology consumes the least amount of fuels which is the main requirement of the
general people or our target market. So this can give us a competitive advantage over our
rivals. We are just import parts and assemble those to complete a finished product which
is easy to copy for our rivals. But the technology that we are using that means our expertise
and solar energy technology is not much easy to copy.

Competitors’ reaction
The competitors will react immediately when we will launch our product. Because the
market shares of our competitors will decline due to the cost leadership strategy that we
are following. They will try to change their current strategy to grip their market shares.
Some giant competitors may come forward in the sector of auto-mobile manufacturing.
They can copy our technology but it will take a lot of time to go for production. That will be
enough time for us to capture the maximum market shares of our competitors. In that time
when our competitors go for production we can able to launch our next technology which
gives us the advantage that gives not only maintain our satisfaction level of our existed
market shares but also capture more new customers.
Industry
Current trend: In 2010 the tax amount was 400% on imported car. Currently demand for
auto-mobiles is very high but the supply of car is not much because of tax in Bangladesh
market. General people cannot afford a normal recondition old model car because of tax
amount. Right now the industry is declining because off tax imposed on imported cars and
the high price of fuel. General people want a good condition car in low price with a high
mileage.

Previous trend (2006-2009): Recently fluctuating orders for the country's export-
dependent garments industry is depressing sales of vehicles. According to previous data
sales in the first four months of 2009 halved on the same period last year, after the first
three months of 2008, when Navana sold more cars - 300 models - than in all of the
previous year. Best selling models at Navana have included the Avanza 1.5L, which retails
at US$22,200 in 2008.

Car dealers such as Navana see a solid long-term future beyond the current blip in sales.
That is perhaps understandable given Bangladesh is predicted to post 5% GDP growth in
2009, according to the World Bank, despite the global recession. Most of the Toyotas on
Bangladesh's clogged roads, however, are second hand, reconditioned imports shipped
from Japan. Toyota has 80% of the market share. Toyota's dominance is likely to continue.
The ubiquity of the brand means re-sale is easy, while "every roadside mechanic in the
country knows how to fix a Toyota". Toyota tunes extra-rugged vehicles on a special
assembly line for the market in south Asia, where highway quality remains patchy.

Bangladesh's preference for reconditioned cars is making life harder for brands trying to
shake the Toyota stranglehold. Sales are down 20% so far in 2009 at Dhaka-based
Multimode, which gets the bulk of its sales from supplying the fleets of government and
multinational companies such as HSBC and Unilever in Bangladesh. Multimode sold 150
vehicles in 2008, 44 of them to the country's Ministry of Establishment, which runs its civil
service.

Duty on auto imports remains hefty in the country and fear a possible increase in June's
budget could further dent sales in 2009. It was 137%. Meanwhile, leading Dhaka retailer
Rangs Motors Ltd has ditched China brand Geely in favor of India's Mahindra. Geely quality
have been impressed by the "durability" and fuel efficiency of the Mahindra Bolero SUV:
100 vehicles have been sold since early 2008. India has no favorable trade terms with its
neighbors. That means the 2.5L Bolero's 4 million Taka (US$59,500) price tag is inflated by
200% tax.
 But local purchasing power is "increasing like crazy," that means people are more
interested to buy a personal cars for their family. So the local demand of the car increasing
day by day.

Business Model

Marketing and Sales Strategy

SBJR Ultimate Aero Ltd. projected marketing product in Bangladesh is solar car. Among the
thousand [1000] people only 2 people are capable to use car in Bangladesh. [According to
Wikipedia 2008]
However, these pre-financing solar power car business plans will be expensive.
Furthermore, customers will have to pay half of their installments before receiving any car.
SBJR Ultimate Aero Ltd. recognizes that this will initially dissuade many competitors rather
users.
 The layout of basic marketing and sales strategies are given below:
Strategy:
Category:
Target Market Middle class people who are able to with incomes between tk.
4,20,000 to tk. 10,00,000 yearly with an emphasis on male & female
both between the ages of 25 to above
Positioning Statement The best looking and with a solar engine car Initially penetrate in
Bangladesh & in future it will spread in South Asia.
Offering to customers Add two lower-priced models and one higher priced model with
different colors and facilities.
Price Strategy Car price 25% less than our closest competitor
Distribution Divisional showroom across the country which directly established
by SBJR Ultimate Aero Ltd. like e.g. Dhaka, Chittagong, Rajshahi,
Sylhet etc.
Sales Strategy Expand by 5% for this product line, hire a national account manager
Service Strategy Available through all major box chains, beside its divisional
showroom. Ex: Coxabazar Nowakhali, Comilla, Dinajpur, Jossore,
Shirajgonj etc.
Promotion Strategy Develop a new campaign that focuses on the positioning, emphasize
précised price and designer look & facilities
Marketing Research Conduct customer audit and identify new market opportunities

Distribution Strategy

 The community center [warehouse] will be constructed beside the administrative office of
SBJR Ultimate Aero Ltd. in mongla, which is located at Khulna & that will be known as
distribution hub.
 Most of the components of the solar electric kits will be shipped by sea from suppliers in the
china or Japan to the Indian Ocean port of Mongla, and then trucked overland to factory.
 SBJR Ultimate Aero Ltd. will also attempt to identify reliable suppliers in China to reduce its
dependence on overseas shipping upon arrival in Mongla.
 When user have satisfied their payment schedules, they will be cordially thanked for their
business, and invited to pick up their car from the Divisional showroom of Bangladesh.
 At this time, SBJR will provide written instructions on how to install and maintain their
brand new car systems. During their payment period, and throughout their duration of
ownership, all SBJR Ultimate Aero Ltd. customers will be invited to attend free educational
workshops on using, maintaining, optimizing, and expanding their solar car electric
systems.

Marketing budget
SBJR Ultimate Aero Ltd. mainly wills focus on online marketing. By how they can able to
reach all over the world and send a message that in near future SBJR Ultimate Aero Ltd. will
coming their country with solar power car, which give the world a new dimension for going
to get perfect world, because world now endanger in pollution, and green house effect, it
will give the world a green & safe earth.
The first year marketing budget before penetration is approximately tk.8000000 up to
opening ceremony. From next years it will be reduced at 15% yearly subsequently
consecutive four years.
 Date
Item Cost Measure of Success
Completion
Website build Mid 2014 Tk. 10000- Number of hits at 2,000
15000 per month
Paid search Last 2014 Tk. 500000 All sites listed carrying
engine web link
advertisement to
increase exposure
Cost to pressure Last 2014 Tk. 300000 Smooth performance of
test operations B&C
Color brochure April 2015 Tk. 200000 All sites carrying
printed and information in Divisional
distributed location
throughout region
Advertisement in From the march Tk. 1500000 Monthly slot secured for
online and other of 2015 five months. Advertorial
media & travel accepted
magazines
Newspaper 16th April up to Tk.1,2000 To increase the sell
advertisement for june 2015
local paper
Site hosting costs 1st June Tk.165000 Secured and feature on
first page of Google search
Advertising and 1th January Tk. 2500000 Feature article
editorial in New
year Program
Grand Opening 1st june Tk. 400000 200 people in attendance
TOTAL Tk. 5700000
 Pricing Strategy

 SBJR Ultimate Aero Ltd. will price their solar as low as possible while still yielding an
attractive profit. Prices for solar car have been set at the higher end of the market as the
User base is seen as in the mid to higher socioeconomic sector.
 Pricing scheme is based on a type based per solar car, which includes Warranties. Prices for
festival are 10% lesser than normal, and when government like to buy more a discount of
15% will be applied.
 As there is not a high level of seasonality for customer coming to the region prices are set the
same year round except for special events (Christmas/New Year/Eid/Pooja) when a 10%
surcharge is applied. So cost per car is given below;
SL Particulars Amount (BDT)
no.
1 Auto chassis system 12000
2 Auto parts & Engine 434000
3 Auto electrical product 12000
4 Auto accessories 12000
5 Solar battery maintainer 20000
6 Shipping cost, Import duty, Govt. tax, Assembling 110000 to 135000
cost, Warehouse & Showroom maintenance ,
Marketing, Distribution & promotion cost,&
miscellaneous etc.
Total cost 600000/625000

The price list (including VAT) for 2015-16 has been set at:
Type of Car Amount /car
Personal solar (mars) tk.750000
Commercial solar tk. 1200000

Warranties
SBJR Ultimate Aero Ltd. become delighted to provide 4 wears warrantee, within this any
kind of unavoidable circumstances if happens SBJR Ultimate Aero Ltd. will do everything
according to their promising condition. Beside the car SBJR Ultimate Aero Ltd. will get an
extra solar power board for any kind of accident or emergency they can they can able to
use this to recover difficulty or critical circumstances.

Product/operating requirement:
 Land requirement: We will take lease 100 bighas near by the port which is situated by
the river. Because if we go for purchasing it will cost us a lot but in the other hand leasing is
much less financing that will help us to reduce the amount of startup investment money.
We are legally leased the physical premises of our plant from the government.
 Location selection: Our car manufacturing plant will be in the Mongla port, Khulna,
Bangladesh. By select a remote area we can get some advantage such as the transportation
 cost will low in case of importing, the land cost will low, we can get different subsidies from
the government due to develop the infrastructure of that area, also for enjoying the tax
holidays or advantages we select this remote area. The size of the manufacturing plant will
huge.
 Waste disposal plant: we can use the river for wastes after refining. So we have to set a
complete waste disposal plant.
 Warehouse: There will be two warehouses, one for the inventory (150 car parts) and
another for the final finished goods (100 auto-mobiles).
 Manufacturing house: There will two manufacturing house, one for personal auto-mobiles
and another for the commercial auto-mobiles.
 Employee quarters: We will create accommodations for the employees of our companies
for reducing the immobility of skill labor problem or barrier.
 Energy plant: There will be an energy plant own by us for the (24*7) hour’s support of
electricity. So there will be a continuous production.
 Manufacturing process: The manufacturing process is not like so much easy but also not
so hard to perform by our work force.
 Availability of Suppliers: The source of supply is available for us. We will order our
requirements about the parts and our supplier will deliver the order right way. Our main
suppliers are GkL ltd, SU-NA-SI; True parts ltd from China etc. and main suppliers from
Bangladesh is Rahimafrooz ltd.
 Machineries: We have a capacity or necessary machineries and tools to support of
producing economic of scale. So that our production cost per unit will be low.
Financial Projections
Distribution of Investment
100 cores taka will be contributed by 4 partners of SBJR Ultimate Aero Ltd. This contribution
margin is given below;

Investing Contribution
No. Investors Name
Money Margin

1 Saimun (S) 250000000 25.00%

2 Bappy (B) 250000000 25.00%

3 Joy (J) 250000000 25.00%

4 Robin( R) 250000000 25.00%

Capital requirement & investment

Usually automobile industry deals with huge capital needs. For establishing perfectly this
solar car industry SBJR require approximately 500-700 cores taka which is only for doing
business in Bangladesh. But here we will got huge opportunity ,Just because they don’t
have to buy the land, that’s why our initial investment would be around 200 Cores ,where
100 cores comes from four partners & another 100 comes from Financing Company or
bank.

The initial investment of SBJR Ultimate Aero Ltd. is given below:

SL no: Investment sector Amount (BDT)

1 Land leasing 2015-2040 (for 25 years) 20 core

2 Factory & Employee accommodation 35 core
infrastructure

3 Power station 20 – 25 core

4 Machineries & Technology 40- 50 core (45 app.)
5 Insurance expense (20 years) [200000 lacks yearly 2 cores
in 5 companies]

6 Contractual agreement (with personnel & Auto 13-15 core

accessories providing companies inside
Bangladesh)

7 Showroom establishing(rent) & Service center cost 5 core

8 Marketing, distribution & promotional investment 8 core

before penetration(selling)

9 Car carrier vehicles (8-10 vehicle per price 2 core) 16-20 core

10 Cash for Running operation 25 core

Total 200 Core (approx.)
 Forecasted Income Statement
Year: 2016 2017 2018 2019
Turnover:
Regular 675,000,000 1,050,000,000 1,800,000,000 2,025,000,000
Special (Occasional) 67,500,000 135,000,000 162,500,000 202,500,000
Net Turnover 742,500,000 1,185,000,000 1,962,500,000 2,227,500,000
Expenses:
Raw material expense 400950000 639900000 1059750000 1202850000
(54%)
Insurance expanse 1,000,000 1,000,000 1,000,000 1,000,000
Power station maintenance 1,250,000 1,250,000 1,250,000 1,250,000
Stuff & employee expenses 40,000,000 40,000,000 40,000,000 40,000,000
Marketing Cost 50,000,000 50,000,000 50,000,000 50,000,000
Maintenance Cost (disposal 100,000,000 100,000,000 100,000,000 100,000,000
plant, manufacturing plant,
accommodation)
Accumulated Depreciation 50,000,000 50,000,000 50,000,000 50,000,000
Lease rent 8,000,000 8,000,000 8,000,000 8,000,000
EBIT 91,300,000 294,850,000 652,500,000 774,400,000
Financial Expenses (8%) 58,000,000 58,000,000 58,000,000 58,000,000
EBT 33300000 236850000 594500000 716400000
Tax Exp. (0%) 0 0 0 0
Net Income 33300000 236850000 594500000 716400000

Break Even Analysis

For 1st year:

Fixed cost: 308,250,000

Variable cost: 400,950,000

Net Turnover: 742,500,000

CM: 1-(400,950,000/742,500,000)
 =46.00%

Break Even point: (308,250,000/0.46)

= 670,108,696

Unit sale estimated: 670,108,696/750,000

=894 cars

According to 1st year Break Even Analysis, we have to sell 895 cars at least. After that
we will get profit.

For 2nd Year:

Fixed Cost: 308,250,000

Variable cost: 639,900,000

Net Turnover: 1,185,000,000

Contribution Margin: 1-(639,900,000/1,185,000,000) =46.00%

Break Even Point: 308,250,000/.46= 670,108,696

Unit sale estimated: 670,108,696/750,000= 894 cars

According to 2nd year Break Even Analysis, we have to sell 894 cars at least. After that
we will get profit.

For 3rd year:

Fixed Cost: 308,250,000

Variable cost: 1,059,750,000

Net Turnover: 1,962,500,000

Contribution Margin: 1-(1,059,750,000/1,962,500,000) =46.00%

Break Even Point: 308,250,000/.46= 670,108,696

Unit sale estimated: 670,108,696/750,000= 894 cars

 According to previous 3 years Break Even Analysis, we have to sell at least 894 cars
every year. After that we will get profit.

Year: 0 1st 2nd 3rd 4th

Cash flows: -1,000,000,000 33,300,000 236,850,000 594,500,000 716,400,000

Cumulative -1,000,000,000 -966,700,000 -729,850,000 -135,350,000

Cash flows:

So, payback period: 3 + (135,350,000/ 716,400,000)

= 3.2 years
According to payback period, we need to sell at least (3.2*894) = 2861 cars to reach at
the Break Even point.
So, our Break Even Sale Point should be (2861*750,000) = 2,145,750,000 tk.