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Industrial Proposal
Industrial Proposal
INVESTOR PROFILE
Mr. Dave Rameshwar will be the proprietor of independent business Auto Parts,
Repair and Transportation Services in Lethem. The company will be operating an
Auto Parts Sales, repair and servicing shop with a branch to do pre fabrication
works, this will be a new addition to the Lethem Industrial zone. Mr. Rodrigues
has over 20 years of experience in this field.
2. Executive Summary
Establishment of an upgraded “Auto Parts, Repair and Transportation Services” is
the desire of Dave Rameshwar who has approximately 20 years’ experience as
auto mechanics and metal works/fabricators. He has a desire to expand his existing
business into medium to large scale establishment in Lethem and offering better
service to his clients than competitors.
3. Objectives
The objectives over the next three years for Auto Parts, Repair and Transportation
Services are the following:
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4. Keys to Success
In the auto repair industry, a company builds its client base one customer at a time
and mostly through word of mouth marketing. With this in mind, the keys to
success for Auto Parts, Repair and Transportation Services are:
5. Company Summary
The company will be a sole ownership of Mr. Dave Rameshwar. The company is a
limited liability company registered in the county of Demerara. The firm proposed
to have facilities Lethem Industrial Zone.
The facilities will contain a Parts Store, a two-bay garage, office space and storage
space for tools, parts, etc.
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Start-up Summary
The data obtained for the start-up comes from research done in the Lethem and its
Environs with other small mechanic shops who have started their own business.
Inflation has been taken into account between the estimates of investor (when the
existing business located in another area started) and the current prices for expensed
items. Much of the equipment to go into the facilities such as tools, air compressors,
etc., are currently owned by the investor.
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6. Services
Auto Parts, Repair and Transportation Services offers a wide range of parts and
services as outlined in the detailed sections below. It is ultimately the goal of the
company to offer a one-stop facility for all auto servicing needs, including brakes,
transmission, wheel alignment, etc. In this way the company can offer greater
perceived value for the customer than many other shops which specialize in certain
areas.
Finally, the barriers to entry are moderately low, and the large number of
competitors in this field, including substitutes (such as do-it-yourself work) mean
that the pricing for such services are very competitive.
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The only way to have an advantage in this industry is a low cost leadership
principal applied aggressively or to create higher switching costs through the
building of strong business to customer ties.
7. Employment
Auto Parts, Repair and Transportation Services will hire at least two more trained
and certified mechanics who are able to prove they have superior customer
awareness and interaction. In addition, two junior/ apprentices will also be
employed. It is the company’s professional people who will fulfill the firm’s
contracts and goals. The largest part of the company’s expenses will be in labor
costs.
8. SWOT Analysis
Auto Parts, Repair and Transportation Services will engage the services of core
professionals in the area of business consulting and structuring to assist our
organization in building a well – structured auto repair garage business that can
favorably compete in the highly competitive auto maintenance and repair service
industry in the Rupununi. Recognizing its Advantages and limitation helps a
company to analyze its potential as such the investor has compiled a SWOT
analysis as laid out below
• Strength:
Our core strength lies in the power of our team; our workforce. We will have a
team of certified and highly trained and experience automobile maintenance and
repair engineers and technicians, a team with excellent qualifications and
experience in various niche areas in the automobile maintenance and repair service
industry. Aside from the synergy that will exists in our carefully selected
workforce, our services will be guided by best practices in the industry.
• Weakness:
As a new auto repair and maintenance garage in the Lethem Industrial Zone, it
might take some time for our auto repair and maintenance garage to break into the
market and gain acceptance especially from top profile clients in the already
saturated and highly competitive auto maintenance and repair services industry;
that is perhaps our major weakness. Another weakness is that we may not have the
required cash to pump into promoting our business the way we would want to.
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• Opportunities:
No doubt, the opportunities in the auto maintenance and repair services industry is
massive considering the number of individuals and corporate organizations who
owns automobile in not only in Lethem, but the Rupununi. As an auto repair and
maintenance garage, we are ready to take advantage of any opportunity that is
available in the industry.
• Threat:
Just like any other business, one of the major threats that we are likely going to
face is economic downturn. It is a fact that economic downturn affects purchasing /
spending power. Another threat that may likely confront us is the arrival of a new
auto repair and maintenance garage in same location where our target market exists
and who may want to adopt same business model like us.
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9. Technology
The technological revolution in computers has enhanced our abilities to diagnose
and repair our clients’ vehicles. Auto Parts, Repair and Transportation Services
will remain on the cutting edge by instituting the use of computer diagnostic
equipment in its shop. The company will continue to seek new ways to provide a
better service through technology.
Since Auto Parts, Repair and Transportation Services will be able to service any
vehicle on the road, including motorcycles and Truckers, it does not make any
sense to segment our market. Our potential customer includes every household in
Rupununi that owns one or more vehicles. The industry does not have any
seasonality that affects it.
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11. Infrastructure
As soon as approval is granted by all relevant authorities, development work will
commence as follows:-
a. Fencing of Lot
This will be done in concrete and chain-linked fence with a steel gate. The estimated
cost is placed at one million six hundred thousand dollars ($1.6M). This is expected to
be completed in the second year, however for the first year a temporary fence will be
installed at the cost of 300,000 made from chain-linked wire and wood posts.
b. Construction of Store and Workshop
This building will consist of a ground floor for a Shop 20’x25’ and a Garage Workshop
30’x30’ building and such will be constructed with cement blocks, wood, zinc sheets,
cement, steel, gravel etc. and is estimated to cost eighteen million dollars (G$8m
collectively). Time to complete same is ten months (10).
Local materials especially lumber will be used in the various construction projects and
as such proceeds from these materials which are harvested in the various Communities
within the Region will greatly assist in their development and the Region development in
whole. Skilled and semi-skilled persons from the within the Region will be utilized for the
construction phase creating much needed jobs.
12. FINANCING
The initial cost for implementation of this enterprise is estimated as follows:-
Infrastructure and Landscaping : 8,300,000
Administration Costs: 350,000
Advertisement and Promotions: 100,000
Investments: 2,000,000
Equipment: Already Owned
Employment 1,500,000
TOTAL: G$ 12,250,000
Such monies will be sourced by applicant through personal saving and family
investments.
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13. CONCLUSION
Mr. Dave Rameshwar is confident that this establishment will be a success and a proud
addition to the Lethem Industrial Estate. As long as people use their cars bikes and
trucks regularly, there will always be reasons for them to visit an auto workshop if
indeed they want these vehicles to continue to ply the roads. This is because you can
never rule out wear and tear when a machine is in use. People visit auto garages for
different reasons; it could be for purchasing upgraded parts, routine servicing, major
repair works, or for refurbishing their cars. For whatever reasons; auto sales and repair
garage will always translate to money for the owner of the Auto Shop. With experienced
persons as advisors and as a family business he is confident of success and his view of
expansion is not only for personal profit but as benefit to the Community with a place to
get affordable, high quality parts and service.
Since the creation of a competitive Industrial Estate free Zone in the Township of
Lethem, quality of service will be at its utmost best in order to appeal to all customers.
Submitted by;
…………………………………………….
Dave Rameshwar
NID:115150738
TIN:111-483-526
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December 6, 2023
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TABLE OF CONTENTS
1. INVESTOR PROFILE 1
2. Executive Summary 1
3. Objectives 1
4. Keys to Success 1
5. Company Summary 2
6. Start-up Summary 3 3
7. Services 4 4
8. Employment 5 5
9. SWOT Analysis 5 5
10. Technology 7 7
12. Infrastructure 8 8
13. FINANCING 9 9
14. CONCLUSION 9 9
APPENDIX
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