3.

Industrial Analysis
3.1. Analysis of UPS & Battery Industry in Pakistan

The unending load shedding was giving rise to a new form of cottage industry which was producing scores of goods to counter the power outages. Load shedding, though, has adversely affected the big industries, yet it helped small industry to grow. Small manufacturers, who were actually exploiting load shedding, are getting handsome amount by making emergency lights, candles, generators, UPS and many others. The ignored and even dying business of artificial power sources got strength in the current era of darkness. This load shedding crisis started for a long time ago, which gave birth to the electrical equipments price-hike? Since that period, the price has not come down and the manufacturers earning abnormal profits for energy articles. An industry has come into being which was creating jobs (sort of cottage industry) and has expanded too many homes from workshop or factory and manual labor has been benefitted. According to an estimate, there are 10,000 factories in Lahore, among which approximately 30-40 percent factories have been closed because of load shedding. These factories were utilizing electricity and Sui gas in a huge amount. In these factories, plastic molding, rubber articles, leather garments, cotton, iron-made goods, and many other things were being produced. According to the labor department sources, approximately 800,000 laborers have been dispelled from their jobs. While, 400,000 to 800,000 laborers were receiving less wage. The owners have finished the overtime facility because of load shedding and this was increasing our hardships, said Mubarak, a worker at Band Road. However, on the other hand, many producers are making Ultra Power Supply (UPS) of 500-1000w and selling them on various prices ranging from Rs 6,000-12,000. They claimed that at least two tube lights, two fans, one computer and one TV could be run, but the price, they are charging, did not include the cost of battery of 48A or more, which was available in the market at Rs 2,400 to Rs 4,500. Moreover, the battery age was approximately one-

year and if the battery spoiled, the consumers have to bear more charges for its repairing or replacing. Rashid, a generator dealer said that 2007 has recorded an increase in the prices of ordinary generator by Rs 2,000 to Rs 5,000 depending on different brands, sizes and quality. Usually, the China made generators were being used more, as compared to other imported ones, whose rates were very high. It is pertinent to mention here that replica articles have also captured the markets due to its low price, although there was a serious concern about their quality. Most of the shopkeepers were selling artificial light gadgets because, they said, the common people forced them to bring these goods to the markets. But the risk of these commodities, being a substandard quality, poses a grave risk that it might be exploded. In summer season, coolers and fans demand would also raise, especially in schools, colleges, homes, offices etc. and in case of continuity of load shedding, the demand of artificial energy resources would likely to rise. 3.2. Increasing demand of consumers

Load shedding is the most common problem of Pakistan everybody is suffering from it day by day it not only increases the difficulties of household but also creating hurdles for many of the shopkeepers to do their business properly. As look over the record of Pakistan in last ten year every government promise to finish the load shading problem but each and every government failed in keeping their promise therefore peoples are looking toward an alternate source of power and energy and their this need has increased the demand of UPS and Batteries in the market. Today it is more profitable business because everyone is trying to have an alternate power source at their home business offices shops and everywhere. 3.3. Future of This Industry It is not hidden from any one about the corrupt nature of Pakistan Government officials who every time makes promise to overcome the common problem of load shading but every time failed in keeping their promises. People are conscious about the alternate source of power and energy to enjoy their business and home life without any power interruption therefore they are purchasing the UPS and Battery products so the future of this industry is very much bright in Pakistan.

3.4. UPS V/S Power Generators Some years before people were not aware about the invertors therefore the demand of generators shoots up and there were many problems with generators such as they are costly, a lot of noise and also they were not automatic every time a person was needed to start and switch of them and also they were very bulky lot off efforts was needed to replace them. When the people know about the UPS and its benefits the demand of UPS increase the benefits associated with ups are such as they have low cost fully automatic light weight high durability no fuel cost.

4. Outlook of the Project

4.1. Purpose of the Study The whole study was conducted to prepare a feasibility report to start an entrepreneur activity of opening a medium scale UPS business in which a variety of UPS and Battery products will be served to meet the needs of different type of people from household to the business people. This report is prepare to help us planning, organizing staffing and decision making to start our project by looking over the Pakistan and World economies and also the analysis which is done over the UPS industry will be very helpful. This report further helps us also in the marketing activities of our business. 4.1. Sketch of the Company The name of the Company will be the GALAS UPS trading company after the first letter of each partner. As for company description it will be a partnership company consisted of about five partners and all partner will be active in the business activity and also the capital provided by the partner will be in equal ratios and same about the sharing of profit and losses. The first branch will be located at the electronic market of the Saddar, which is also considered as the heart of electronic market of the Karachi , the second branch( Started only when we got success at first branch )will be placed at Gulshan-e-hadid which also one of the big residential area of Karachi with a population of about 7000 houses. It means it would be a good target market. The whole project will be done on the property which will be owned on rent and it takes around 3-4 month in setting up the interiors and marketing activities.

4.2. Project Assumption The office building and the ware house both will be on the rent (Amount yet to be Determined after meeting with estate-agents) The office will be designed in such a way that it can display each product which we have in our stock at our ware house. GALAS UPS has the ability to keep the UPS of well known Supplier both imported and local one

4.3. Mission Statement To be the leading UPS dealer all over the Pakistan on the basis of quality and durable products

4.4. Objectives We will achieve our goal with the help of following objectives while keeping our mission in the mind. To make sure that all the product are of well known brand To provide most durable products to our customers To provide after sale services To operate with each customer on the basis of equity (courtesy)

4.5. Introduction of Partners Love Raj (MBA , C.A inter) Currently working as a Chief Account officer in a multinational organization

 Ajeet Kumar (MBA)

Investor in various companies and also working as a bank manager with City Bank

Ghulam Srwr (MBA)

Currently working as a Manager with Sun Power UPS Trading CO.

Muhammad Shebaz (MBA)

Currently working as a sales manager with Atlas Batteries

Asghar Ali Ghangro (MBA) Currently working as a sale promotion officer with AGS Batteries

5. Capital Structure

Name of the Partner

Love Raj Ajeet Kumar Ghulam Srwr Muhammad Shebaz Asghar Ali Ghangro

Capital Provided
500,000 500,000 500,000 500,000 500,000

Total

2500,000

6. Marketing Analysis

6.1. Competitive Analysis As from the mission of GALAS UPS it is very much clear that the main competitive advantage that this company will have is the open communication between the dealers and the purchasers and the main this will be the after sale services at the place of the customer with just a single phone call. This is the main competitive advantage which we can have over our competitors as this industry is operating in a perfect marker where there is hundreds of other dealers so we cannot compete on the basis of price the above said factor will be the our competitive advantage.

6.2. Target Market Each and every person who can afford UPS will be our target, the person under our target will be a common hose hold a business man shop keepers and also the retailers of UPS. We have capacity to supply on large scale therefore the main target of our company will be the retailers from various cities of Sindh and also from various places of Karachi who are doing business of selling UPS and related products.

6.3. Product Mix 6.3.1 Product It is an old saying in our language that jo dkhta he whe bikta he and it is also a famous business proverb that a good product will be sold sutomaticlly. A product is sold on the basis of the features which it has in itself. Just have a look over the food industry in which a product is sold on the basis of its taste in the same way in this industry product will be sold on the basis of the capacity, durability, automation and so on and also somewhat on the skills of the sales person.

6.3.2 Place The best location is very much essential in the success of any business, as per marketing strategy it can be said that availability at the right time at the right place will avail all the opportunities. We are going to open our Office (Show Room) at the electronic market of the Saddar and in our thinking there will not be any other good place that this one to start our business. As at sadder electronic market not only the people from Karachi are coming for purchasing but from all over the Sindh but it can be said that from all over the Pakistan so it will be the right place. 6.3.3. Price The price will be charged on the basis of the nature of the customers and also on the basis of the quantity purchased by them. As we are going to serve three different categories of the customers so the price will be charged by keeping these customers in the mind also on the price charged by our competitors. 6.3.4. Promotion Promotion is one of the important vehicles of any business, as our business is of UPS trading so the more suitable method of promotion will be pamphlets distribution. We will also use some of the other cost effective tools such as; Add in local News Papers SMS Marketing E-Marketing Brochures and Pamphlets Local cable operator adds