ELECTRIC VEHICLE CHARGING STATIONS

J-COMPONENT REPORT

Submitted by

ROHIT SAGVEKAR – 17BMA0046

Submitted to

DR. SAUMEN
PAL

In partial fulfilment of the course of

LEAN START UP MANAGEMENT

Fall Sem - 2019-20

VIT UNIVERSITY
Type of business and expected outcome:
The company will manufacture and install Electric Vehicle Charging stations that are
compatible for more than one brand of EV. Currently there is no charging station that
accommodates different EVs. Right now, every company that makes Electric Vehicles also
makes its own charging station. So our charging station will be designed to accommodate
Various different types of EVs.

Background factors and motivating factors:

In the union budget of 2019, the Indian government has announced a lot of tax rebates and
incentives for industries that are dealing with hybrid and electric vehicles. the government
has started from 1 April 2019, the second phase of the Faster Adoption and Manufacturing
of Hybrid and Electric Vehicles (FAME 2) scheme, with an outlay of ₹10,000 crores. The
finance minister announced tax rebates of up to ₹1.5 lakh on interest paid on loans to buy
EVs. The minister also announced customs duty exemption on lithium–ion cells, which
will help lower the cost of lithium-ion batteries in India as they are not produced locally.
Makers of components such as solar electric charging infrastructure and lithium storage
batteries and other components will be offered investment linked income tax exemptions
under Section 35 AD of the Income Tax Act, and other indirect tax benefits.
Apart from all these perks, the Indian government has asked automotive manufacturers to
make all two-wheelers under 150cc engine capacity electric by 2023. This tells us that the
number of EVs on Indian roads is going to increase exponentially and a business that caters
to charging of these vehicles will be in high demand.
With Volvo’s July announcement that it would phase out the internal combustion engine and
manufacture only electric or hybrid vehicles by 2019, many believe India’s EV moment has
arrived. It won’t be long before major automakers in India follow Sweden-based Volvo’s
lead in phasing out internal combustion engines and electrifying their line-ups to meet the
2030 deadline.

Organization structure:

Manufacturing
head
V.P Operations
Installation
head
V.P Finance
CEO
V.P Sales and
Marketing

V.P Design and

Engineering
The respective V.Ps or heads will work with their teams. The manufacturing head will look
after the manufacturing of the charging stations and will the plant where we will be
manufacturing the product. He will have the other teams such as production, facilities,
maintenance, EHS etc. Installation head is in charge of installing the product at the various
locations.

CEO: He will be communicating on behalf of the company, with shareholders,

governmental entities and the public, Leading the development of the company's
short term and long term strategy, Creating and implementing the vision and mission
of the company or organization, Evaluate the work of other executive leaders within
the company, Maintaining awareness of competitive market scenario, expansion
opportunities, industry development etc.

V.P. Operations: He will provide inspired leadership for the organization, make
important policy, planning, and strategy decisions, Develop, implement and review
operational policies and procedures, ensure all legal and regulatory documents are
filed and monitor compliance with laws and regulations.

Installation Head: His role is compliance with management communication and

reporting as requested. Perform supervisory responsibility by following the
organization's policy as well as applicable laws. Perform with multiple departments
related to installation projects. Be sure to select and qualify installation vendors. Key
responsibility for
planning, scheduling, maintaining and remotely managing all aspects of the
enterprise's network of entire maintenance vendors and certified installers. Major
responsibility to resolve customer satisfaction to ensure. Be sure to conform to
customer specifications and company requirements.

Manufacturing Head: His overall responsibility for Manufacturing activities across the
business, Create and implement best practice manufacturing vision, strategy, policies, processes
and procedures to aid and improve business performance , Ensure that manufacturing strategies
and processes are in place to meet business objectives and operational needs in terms of price,
quality and delivery targets and which enables the company to function and compete effectively
in the market , Evaluate the challenges faced by the business and take action to mitigate risks and
develop opportunities.
V.P. Finance: Forecast monthly, quarterly and annual results, Approve or reject budgets,
Conduct risk management, Evaluate and decide on investments, supervise a team
of Accountants, Allocate resources and manage cash flows, Conduct profit and cost
analyses

V.P. Sales and marketing: Develop professional close relations and maintain regular
communication with reps, customers and internal staff. Represent company at trade
shows, associations and meetings to promote products and programs. Identify customer
needs, develop collateral and determine product pricing and discount rates. Provide
support for growing international sales efforts. Plan and execute annual sales meeting.
Develop and implement facility sales and marketing strategy. Develop and maintain an
external network of peers and customers.

V.P Design and Engineering:

Lead and Coordinate external design teams-

Manage design team on day-to-day basis, allocating work between the team accordingly
Ensure professional standards are maintained for all designs and check work.
Lead work & engineering systems and processes-

Maintain and develop company works and engineering and design procedures
Specify client’s standards for technical training and competence

Undertake technical assessments of design organisations and subcontractors undertaking

Design.

Engineering excellence-

Develop and promote technical best practice, research, and development of

standard Products. Provide support to Business Development and Proposals teams.
Labourers: They will be working under respective executive heads of concerned
departments.

(V.P. – Vice President, CEO- Chief Executive Office)

Company Logo and name of the business:

Process of production:
The main parts of a charging station are:
 AC to DC converter
 A multi output transformer
 Feedback circuit
 Current measurement circuit
 User interface hardware
 Charging wires
 Housing case
Now it’s extremely hard for us to produce all of these parts in-house so we will have to buy
most of these components from vendors. The user interface hardware will have a screen that
allows the user to choose the make of the vehicle he’s plugging in, and the amount of time/
units of power they will be charging for. It will also help the customer to pay the charging
fee. The mobile app that allows the customer to pay along with the interface on the charging
station will be made by us, along with this we will have to assemble the parts and then
install it at various locations.

Alternatives options:
Right now the market is flooded with different manufactures bringing out a variety of
charging stations. From vehicle manufactures like ather and Mahindra and Mahindra having a
custom made charging station for their respective vehicles to Chetan Maini’s Sun Mobility
focusing purely on charging stations. But where we hope to improve and beat our opponents
with the use of a better user interface, compatibility to varied EVs and our different
marketing strategy.

Marketing strategy:
To start off our charging station will be able to accommodate different types and makes of
Electric vehicles as we will be using variable transformers to be able to supply current at
different voltages to cater to different vehicles.
Our main business model is to approach restaurants, malls, Offices etc. to allow us to set up
out charging stations in their parking lots. This allows the customer to leave their vehicle for
charging while at the same time going to the movies, or having dinner at a restaurant. This
not only gives people something to do while their Vehicles are being charged, but also
increases the restaurants or malls business as these people who need to charge their vehicles
will keep visiting these spots repeatedly generally at non crowded hours for extended periods
of time. After this we want to approach Offices and Apartment complexes to install our
charging stations in their parking lots so that their residents or employees need not go to a
third place to charge their vehicle.
Costing :
Production cost – 35,000 – 40,000 INR per piece
Installation cost – 3,000 – 4,000 INR per installation
Maintenance cost – none
Initial costs – 3 Cr. INR. This includes the land to set up a manufacturing facility and the cost
needed to develop the product including making the feedback circuit, the user interface and
the mobile app. Most of this price though will go into acquiring land and setting up a facility
that can cater to the demand surge that will be felt in the next 2-3 years.
Objectives:
Our social objective is to help the Indian government to achieve it’s Goals that it has set to
achieve reduction of carbon emission. This also helps us achieve the Sustainable
Development Goals that were agreed by the United Nations in 2017, which want us to work
towards sustainable cities and communities and helps India to achieve it’s goals that it set in
tandem with the paris climate act.
Financially, we were expect to cope with the growing demand for charging stations and hope
to ride the wave of new electric two wheelers that will hit market by 2024 once petrol two
wheelers stop being produced due to the new laws set forth by the BJP government. This will
mean that if we are able to set up a manufacturing plant before the EV surge hits India, we
will be able to break even in the first 5-7 years. This though is heavily dependent on whether
or not we are able to produce our charging stations to meet the influx in market demand that
will hit the market by 2023-2024.

Operating strategy:
We plan to set up a manufacturing facility on the outskirts of a city like Pune since that’s
where we plan to start our operations. For the installations we can tie up with local vendors
across the country so that we do not get overwhelmed in the installation of the charging
stations and can focus on the production part.

Exit strategy:
If in the future, we decide not to pursue this venture we can sell our company to one of the
EV manufacturers such as Hyundai or Mahindra and Mahindra. They will be able to use the
business to complement their own EV business and hence will be eager to buy the company
from us.

Future plans:
1. Expansion:
So our goal is to be able to have our charging stations in all parts of the country. To
cater to this, we will need to increase our manufacturing drastically over the years.
So we will need a facility that will cater not only to the increasing demand but also
the improved technological requirements over the years. Hence after 5-7 years of
setting up we will need to expand to include new charging techniques that come into
the market.

2. New products:
There are still technologies that are emerging in this field. Faster and better ways to
charge your Electric Vehicles. One of these technologies is that cars will have
removable battery cells, and customers will lease these cells from companies. Now,
even though we may not manufacture the cells themselves, when the customers
swap used cells for new full cells, the drained cells will need to be charged to be used
again. We plan on expanding into the charging of these cells if and when the
technology comes into the market. It is also one of the technologies that will require
further expansion and a different design.

3. Estate formation:
 The Maharashtra government offers incentives for any industry setting up in the
chakan belt. So our main manufacturing facility will be situated there. Adhering to
the rules that the industry is required to follow, and depending on our funding, we
will allocate the necessary percentage of land to maintaining a garden. The facility will
include, a cafeteria, and a small recreation centre for employees to use before/after their
shift. We will need to include a medical facility and will have an ambulance on stand by at all
times. Another interesting feature is the installation of daylight tubular devices( solatubes)
on our shop floor. This will not only save us electricity, but will also allow natural light to
illuminate our shop floor which will prevent it from being dull and dark.

App design:

We will have an app for play store and iOS to help customers use the charging facilities. All
the customer needs to do is select the model of the vehicle and input the right unique
charging station number that will be displayed on the charging station, before plugging in
their vehicles. Once the vehicle is charged, the app will send the payment information to the
customer on the app and the and the customer can pay by credit card, online banking or any
online wallet such as PayTm or GooglePay.