Final CIA (Assignment – 2nd component Unit 4 & 5—Elevator Business

Pitch)

CIA 3

SUBMITTED TO,
Milin Rakesh Prasad

APOORV SHUKLA
2227312
 STARTUP- BIMAL CORPORATION
CEO OF THE STARTUP- MR. PRATIK BHANSALI

COMPANY PROFILE:
Bimal Corporation is a professionally managed business enterprise manufacturing PP
(polypropylene) strapping and Sutali (twine) in various grades. Founded in 2011 by the Mr.
PRATIK BHANSALI, with assistance of Oswald promoters, Bangalore, a company which
has been producing PP strapping and Twine for almost two decades, Bimal Corporation is the
outcome of merging traditional cultural Indian business values and modern sophisticated
technology and the result is an excellent blend of these ingredients that keep our feet rooted
to the ground yet gives us courage to fly and explore global markets.

Their manufacturing facility which happens to be Karnataka’s 1st Fully automatic plant uses
state of the art technology and sophisticated machinery to produce PP strapping and Twine is
located at Tavarekere Hobli, off Magadi Main Road, Bengaluru South.

CEO- Pratik Bhansali

ENTREPRENEUR PROFILE:

Pratik Bhansali

CEO @ Bimal Corporation, Into Polymers & Packaging Manufacturing, Construction &
Warehousing, Building customized Mega Factories & Infrastructure, Equity Investor,
Public Speaker, Mentor, Bangalore President- FII- Federation of Indian Industries.

Mechanical Engineer, MBA Christ University, 2008-10

QUESTIONAIRE:

1. WHAT WAS THE KEY DRIVING FACTOR TO START THIS BUSINESS?

2. WHAT ARE THE KEY PERFORMANCE INDICATORS TO BE FOCUSED
BEFORE STARTING A BUSINESS?
3. WHAT WERE THE DIFFICULTIES FACED BEFORE AND AT THE TIME
OF STARTING THIS BUSINESS? WHAT ARE SOME OF YOUR
PRODUCTS?
4. WHAT ARE THE VARIOUS FIXED AND VARIABLE COSTS INCURRED
AND IN FIGURES REGARDING TO YOUR COMPANY?
5. WHAT IS YOUR AVERAGE COST AND HOW DO YOU PLAN TO REDUCE
THEM (SINGLE PRODUCT)?
6. WHAT ARE THE PRICING STRATEGIES THAT ARE FOLLOWED BY
THE ORGANIZATION?
7. WHAT IS THE COMPANY’S TOTAL REVENUE AND HOW DO YOU
OPTIMIZE THEM AND WHAT ARE THE KEY FACTORS INVOLVED IN
REVENUE OPTIMIZATION?
8. HOW DO YOU DEFINE YOUR BUSINESS MODEL AS A SUCCESSIVE ONE
IN TERMS OF ECONOMICS?
9. WHEN DID YOUR STARTUP ACHIEVE BREAK-EVEN POINT AND WHAT
WERE THE STEPS AND MEASURES TAKEN TO ACHIEVE THEM?
10. HOW DOES THE CONCEPT OF ECONOMICS PLAY A VITAL ROLE IN
SUSTAINABILITY OF YOUR COMPANY?
11. WHAT IS YOUR CORE PRODUCT AND HOW MUCH IT COSTS ON AN
AVERAGE TO MAKE THEM AND HOW DO YOU RECOVER THE SAME?
12. WHAT ARE YOUR VIEWS ON REVENUE OPTIMIZATION AND PROFIT
MAXIMIZATION? HOW IMPORTANT ARE BOTH OF THEM TO YOUR
COMPANY?
 13. WHAT ARE THE INITIAL AND PRESENT PROFITS OF YOUR
COMPANY? HOW DO YOU DIFFERENTIATE THEM?
14. WHO ARE THE COMPETITORS IN THE MARKET? WHAT ARE YOUR
STRATEGIES TO OVERCOME THEM?

INSIGHTS GAINED FROM THE INTERVIEW:

 the main motto to start a business is to create employment opportunities, limited

ecosystem and lack of innovation around freedom.
 Some of the key factors to be focused before one start a business are opportunity to
solve a problem via the product which you produce, checking demand and supply,
business model should be a profit model.
 the major fixed cost of the company includes plant, machinery and building cost
(around 90 lakhs) initial investment for this bank OD was taken and each month they
pay for it to cover them and some of the major variable costs were electricity cost,
labour charge based on production, raw materials.
 The average cost of a product comes around 100 rupees which is a constituent of 55
rupees of fixed cost and 10 rupee of electricity cost, raw materials around 25 rupees
per kg and labour charge of 10 rupees.
 The business model is always profit sustained one so whenever the price is set, around
all the competitors we set the largest one and it is always around 15-20 rupees more
than what we incur and 5 rupees more than our competitors because customers know
the value and quality of our product. The company was always in profit and it is
backed by the customer satisfaction and quality of the product.
 The average cost of a product is reduced based on increasing the sales price of the
product because the incurring cost can be reduced only by increasing production
which depends on demand around the product so it is best to increase sales price of
the product by some amount which will add value to the product since most of the raw
material for their product was produced by reliance and based on that only average
cost can be maintained in reality.
 The pricing strategies were based on on-season and offseason, during on season when
there was demand for the product, they set the price of the products above the
 competitors and during off season they gave discounts and samplings to the customers
to maintain the sales and revenue during that time.
 Total revenue depends on selling price of the product and quantity of production. So,
the SP on the other hand is determined by fixed cost and variable cost incurred.
 Since the reduction of incurring cost wasn’t plausible on the long run due to
fluctuating in the price of raw materials, they had to increase their SP and this was
easily achievable because of the monopoly power which they had inside Karnataka
and it was further backed by the quality and value of their products.
 Initial and present profits of the company is easily differentia table because of the
factors which changed over the years such as profit maximization, revenue
optimization and sales promotion and pricing strategies.
 BIMAL CORPORATION broke even around 24-26 months from their starting stage
which was during 2011. This short period of achieving BEP explains how well the
company has performed over the years and their sustainability.
 After covid they were able to clear their debts also.
Interpretation:
 Average revenue = price of a single product = 120
 Total revenue = selling price * no of products sold
 TR= 120* 20000 = 2400000(per month)
 Selling price is determined by fixed and variable cost and setting price based on
profit.
 Average cost= average fixed cost + average variable cost
 AFC/product= 55 rupees (BOD+interest+machinery+land)
 AVC/product= 45 rupees (labour+ raw material+ electricity)
 Profit/product= approximately 20 rupees
 Selling price is set at 120 rupees.

 Break-even point is achieved shortly because of the pricing strategies revenue

optimization, profit model of the organization.

Learning outcomes:
 Understanding how variable, fixed costs incurred by a company helps a company is
setting the selling price of the product.
 Importance of finding an opportunity in the market to begin a start-up.
 Optimum cost and revenue combination of the products were discovered on the basis
of unit economics.
 Break-even point for a start-up was analysed on the basis of economics to define the
success model of the company.
 Application of unit economics terms such as profit maximization, pricing strategies,
sales promotion techniques, break-even point and some competition strategies to
make a company a successful and sustainable one.