ENTREPRENEURSHIP DEVELOPMENT REPORT

ACCIDENT ALERT SYSTEM

Submitted by
Nadamala Sai Kiran Reddy (1820380)
Sai Hrithik P S (1820381)

Under the Guidance of

Prof. Rajesh R

In Partial Fulfilment of the Requirements for the Award of the Degree of

BACHELOR OF BUSINESS ADMINISTRATION

SCHOOL OF BUSINESS AND MANAGEMENT

FEBRUARY, 2020

1
 DECLARATION

We, Nadamala Sai Kiran Reddy(1820380),P S Sai Hrithik(1820381),

hereby declare that the Entrepreneurship Development Project Report,
submitted to CHRIST(Deemed to be University), in partial fulfilment of
the requirements for the award of the Degree of Bachelor of Business
Administration is a record of the Industry Analysis done by us during
2020 under the supervision and guidance of Prof. Rajesh R, School of
Business and Management and it has not formed the basis for the award
of any Degree/ Diploma/ Associate ship/ Fellowship or other similar title
of recognition to any candidate of any University.

Date:

_____________

Nadamala Sai Kiran Reddy(1820380)

_____________

P S Sai Hrithik(1820381)

2
 CERTIFICATE

This is to certify that the industry review project report, submitted to

CHRIST(Deemed to be University), in partial fulfilment of the
requirements for the award of the Degree of Bachelor of Business
Administration, is a record of the industry study done by Nadamala Sai
Kiran Reddy(1820380), P S Sai Hrithik(1820381), during 2020, under my
supervision and guidance and the project report has not formed the basis
for the award of any Degree/ Diploma/ Associate ship/ Fellowship or
other similar title of recognition to any candidate of any University.

Date:

(Prof. Rajesh R)

ACKNOWLEDGEMENT
3
We would like to express our profound gratitude to all those who have
been instrumental in the preparation of this project report. We wish to
place on record, our deep gratitude to our project guide Prof. Rajesh R, a
highly esteemed and distinguished guide, for her expert advice and help.

We would like to thank Dr. (Fr.) Abraham V M, Vice Chancellor,

CHRIST(Deemed to be University) and Dr. Jain Mathew, Dean
Commerce and Management, Dr Amalanathan.S, Head of the
Department, School of Business and Management , CHRIST(Deemed to
be University), for their support.

Lastly, we would like to thank God, our Parents and Friends for their
constant help and support.

_______

Nadamala Sai Kiran Reddy (1820380)

_______

P S Sai Hrithik (1820381)

TABLE OF CONTENTS-
4
 Page. Nos.
(Starting and
ending page
Chapter Content number)

I Introduction 8-15

II Market Research 16-20

III Marketing 21-29

IV Human Resource Plan 30-39

V Production/Operations 40-46

VI Financial Plan 47-53

VII Execution Plan 54-55

VIII Conclusion 56-57

IX Bibliography 58

X Annexure 59

5
EXECUTIVE SUMMARY

EXECUTIVE SUMMARY:

6
As the usage of vehicles is increasing drastically, the hazards due to vehicles is also
increased. The main cause for accidents is high speed, drunk and drive, diverting
minds, over stress and due to electronic gadgets. This paper deals with accident
detection system that occurs due to carelessness of the person who is driving the
vehicle. This introduces accident alerting system which alerts the person who is
driving the vehicle. If the person is not in a position to control the vehicle then the
accident occurs. Once the accident occurs to the vehicle this system will send
information to registered mobile number. As you all know that the rate of accidents is
increasing rapidly day by day in India and in these accidents many of them are losing
their lives because of lack of proper communication. Even though there are laws to
help the people who met with accidents people are afraid about police case. So, to
overcome this problem we have come with a device called ACCIDENT ALERT
SYSTEM through which we can save the lives of people. Accident alert system is
based on the technology similar to airbags but in this project, we have built an
embedded systems-based vehicle accident alert system using GPS, GSM and shock
sensors. Shock sensor is used to detect accident. So, when accident happens, this
sensor will be active. And the information sends to microcontroller. At the same time,
GSM module will also active which are interfaced to the same microcontroller.
Through GSM the exact location of the accident location is obtained and through
GSM module send a alert message to the register mobile number and police station.
And information is sent to the near Police Stations, family members, friends etc.

7
CHAPTER ONE
INTRODUCTION

8
1.1 ABOUT SMALL AND MEDIUM SCALE INDUSTRIES
Small and medium scale enterprises (SMEs) are understood in India as enterprises
where the investment in plant and machinery or equipment is between Rs. 25 lakhs
(US $ 0.04 million) to Rs. 10 crores (US$1.6 million) in case of a manufacturing
industry and between Rs. 10 lakhs (US $ 0.02 million) to Rs. 5 Crore (US $ 0.8
million) in case of a service sector enterprise.
This definition is provided in Section 7 of Micro, Small & Medium Enterprises
Development Act, 2006 (MSMED Act) and was notified in September 2006. The Act
provides for classification of enterprises based on their investment size and the nature
of the activity undertaken by that enterprise. As per MSMED Act, enterprises are
classified into two categories - manufacturing enterprises and service enterprises. For
each of these categories, a definition is given to explain what constitutes a micro
enterprise or a small enterprise or a medium enterprise. What is not coming under the
above three categories would be considered as a large-scale enterprise in India.
Manufacturing Enterprises are the enterprises engaged in the manufacture or
production of goods pertaining to any industry specified in the first schedule to the
Industries (Development and Regulation) Act, 1951 or employing plant and
machinery in the process of value addition to the final product having a distinct name
or character or use. The Manufacturing Enterprise are defined in terms of investment
in Plant & Machinery.
Service Enterprises are the enterprises engaged in providing or rendering of services
and are defined in terms of investment in equipment.

9
1.2 INDUSTRY PROFILE-

The automotive industry has a wide range of companies and organizations involved in

the design, development, manufacturing, marketing, and selling of motor vehicles.[1] It
is one of the world's largest economic sectors by revenue. The automotive industry
does not include industries dedicated to the maintenance of automobiles following
delivery to the end-user, such as automobile repair shops and motor fuel filling
stations.

India became the fourth largest auto market in 2018 with sales increasing 8.3 per cent
year-on-year to 3.99 million units. It was the seventh largest manufacturer of
commercial vehicles in 2018.

The Two Wheelers segment dominates the market in terms of volume owing to a
growing middle class and a young population. Moreover, the growing interest of the
companies in exploring the rural markets further aided the growth of the sector.
India is also a prominent auto exporter and has strong export growth expectations for
the near future. Automobile exports grew 14.50 per cent during FY19. It is expected
to grow at a CAGR of 3.05 per cent during 2016-2026. In addition, several initiatives
by the Government of India and the major automobile players in the Indian market are
expected to make India a leader in the two-wheeler and four-wheeler market in the
world by 2020.
Market Size
Overall domestic automobiles sales increased at 6.71 per cent CAGR between FY13-
19 with 26.27 million vehicles getting sold in FY19. Domestic automobile production
increased at 6.96 per cent CAGR between FY13-19 with 30.92 million vehicles
manufactured in the country in FY19.
In FY19, year-on-year growth in domestic sales among all the categories was
recorded in commercial vehicles at 17.55 per cent followed by 10.27 per cent year-on-
year growth in the sales of three-wheelers.
Premium motorbike sales in India crossed one million units in FY18. During January-
September 2018, BMW registered a growth of 11 per cent year-on-year in its sales in
India at 7,915 units. Mercedes Benz ranked first in sales satisfaction in the luxury
vehicles segment according to J D Power 2018 India sales satisfaction index (luxury).

10
Sales of electric two-wheelers are etimated to have crossed 55,000 vehicles in 2017-
18.
1.3 ENTREPRENEURS PROFILE

Name Nadamala Sai Kiran Reddy

Age 19 years

Gender Male

Email ID [email protected]

Mobile No. +91 9502409673

Permanent Raghavendra PG Bhavani Nagar, Christ School Road, Opp

Christ
Address
University Back Gate, Bengaluru 560029
Educational Pursuing Bachelors of Business Administration
From Christ University, Bengaluru
Qualification
About the He is a risk taking person, who always works honestly
Entrepreneur and to the best of his ability in whatever he does. He is an
optimistic person because he believes it is vital for his
vision. He believes in the quote that "Where there is a
will, there is a way."

Name Sai Hrithik P S

Age 19 years

Gender Male

Email ID [email protected]

Mobile No. +91 9620042005

Permanent Radhakrushna P.G. For Men,1st cross, Venkateswara

Address Layout, SG Palaya,Bengaluru-560029

Educational Pursuing Bachelors of Business Administration from Christ

University, Bengaluru
Qualification

11
 About the He is an optimistic, confident and a risk taker. He loves to
Entrepreneur work and is often a workaholic. He is a perfectionist and
will thrive till he achieves the best result. He is a firm
believer in the quote, “It’s not about ideas. It’s about
making ideas happen.”

1.4 APPROXIMATE INVESTMENT-

The business, ACCIDENT ALERT SYSTEM Pvt. Ltd. is an MSME therefore

demanding an investment of nearly 1.5Crores. The major expenditure incurred at the
preliminary stage are for acquiring the machinery, security deposits, factory expenses
and promotional expenses. The initial investment is contributed equally by each
partner, namely Nadamala Sai Kiran Reddy and Sai Hrithik P S. Our major
investments are on manufacturing of product by using machinery and other factory
overheads.

1.5PARTNERSHIP DEED-

This deed of partnership is made on 28th January, 2020 between:

Nadamala Sai Kiran Reddy, son of Nadamala Gangadhara Reddy, Raghavendra boys
hostel, Bhavani Nagar, Christ School Road, SG Palya, Bengaluru, 560029 residing at
here in after referred as FIRST PARTNER.

Sai Hrithik P S, son of P Suresh, Radhakrushna P.G. For Men,1st cross, Venkateswara
Layout, SG Palaya,Bengaluru-560029 as SECOND PARTNER

12
Whereas, the parties here to have agreed to commence business in partnership and it
is expedient to have written instrument of partnership. Now, this partnership deed
witnesses as follows:

Business activity-

The parties here to have mutually agreed to carry on the business of Accident Alert
System , which focuses on production and selling of Accident Alert System (A device
which is a new added safety feature for automobiles which helps to send signals to
nearby Police station, Hospital from accident spot. ).

Place of Business-

In the initial stage the production takes place in a factory and sold via internet and
factory outlets situated in Bengaluru.

Duration of partnership-

The duration of partnership will be at will.

Capital of the firm-

In the initial stage the capital of the firm shall be Rs2,86,46,500 and the approximate
investment is Rs.71,05,000. Nadamla Sai Kiran Reddy and Sai Hrithik P S hold
Rs.71,05,000each respectively a loan of Rs. 1,44,36,500 is taken from bank. Hence
forth the profit sharing ratio among the partners- D Supreeth and Alvin is 1:1.

Profit sharing ratio-

The profit or loss of the firm shall be shared equally among all the partners and
transferred to the partners current account.

Management-

N Sai Hrithik P S (FIRST PARTNER) of the firm shall be managing partner and he
will look after all the day to day transaction of the firm and any legal activities in the
name of the firm and the remaining partners shall cooperate to do so.

Operation of Bank Accounts-

13
The firm shall open a current account in the name of Accident Alert System PVT
LTD at a bank and such account shall be operated by N Sai Kiran and Sai Hrithik P S
as declared from time to time to the banks.

Borrowings-

The return consent of all partners will be required for the partnership avail any credit
facility from any financial institution.

Accounts-

The firm shall regularly maintain in the ordinary course of business true and correct
accounts of all its transactions and also of all its assets and liabilities, the property of
books of accounts, which shall be kept at firms place of business the accounting year
shall be the financial year from 1st April onwards and the balance sheet shall be
properly audited and the same shall be signed by all the partners. Every partner shall
have access to the books and the right to verify the accuracy.

Retirement-

If any partner shall at any time during the subsistence of the partnership be desirous of
the retiring from the firm, it shall be competent from his to do so, provided he shall
give at least one-month notice of his intension of doing so the remaining partner shall
pay to the retiring partner or his

legal representatives of the deceased partner, the purchase money of his share in the
assets of the firm.

Death of the partner-

In the event of the death of any partners, one of the legal representatives of the
deceased partner shall become the partner of the firm and in the event of the legal
representative show their denial to the point of the firm, they shall be paid the part of
the purchase amount calculated as on the date of the death of the partner.

Arbitration-

Whenever there is any difference of opinion or any disputes amongst the partners the
partners shall refer the same to an arbitration of one person. The decision of

14
arbitration shall be concluded and binding on every partner, which shall be governed
by Indian Arbitration Act which is in force.

In witness whereof, this deed of partnership is signed sealed and delivered this at
Bengaluru, Karnataka:

FIRST PARTNER-

N.SAI KIRAN REDDY

Raghavendra boys hostel, Bhavani Nagar, Christ School Road, SG Palya, Bengaluru,
560029.

SECOND PARTNER-

SAI HRITHIK P S

Radhakrushna P.G. For Men,1st cross, Venkateswara Layout, SG Palaya,Bengaluru-

560029.

WITNESS ONE WITNESS TWO

15
 CHAPTER TWO
MARKET RESEARCH

2.1 FEASIBILITY OF THE PROJECT-

As we are coming up with the new safety feature for automobiles. Which helps in not
only reducing deaths but also saves many lives. So, by introducing this new system
we have many opportunities in the market such as tie-up with automobile companies
which will have a major market and need for the system.

2.2 SWOT ANALYSIS-

STRENGTHS-

 In India accident rates are increasing day by day the need for this device will
be increased in future and its unique added safety feature will gain major
market in future.
 No perfect competitor in the market right now.

16
  The service provided is the need of the future.
 Not much technical knowledge required.
 Low cost service with best quality and customer satisfaction.

WEAKNESS-

 Might not work in remote areas where telecom signals are poor.
 Requires 24/7 mobile data.
 The device is prone to damage during accidents.

OPPERTUNITIES-

 New consumer base that has to be focused.

 This product offers terrific potential because it has significant growth capacity.
 Can collaborate with all automobile companies.
 Suitable for all types of cars from ordinary to luxury.
THREATS-

 The device is prone to damage during accidents.

 Police stations may not provide assistance during the initial stages of the
product launch.
2.3 THE PRESENT AND FUTURE SCENARIO OF SECTOR-

CURRENT STATE-

According to NDTV

One serious road accident in the country occurs every minute and 16 die on Indian
roads every hour.

1214 road crashes occur every day in India.

Two wheelers account for 25% of total road crash deaths.

20 children under the age of 14 die every day due to road crashes in in the country.

377 people die every day, equivalent to a jumbo jet crashing every day.

17
Two people die every hour in Uttar Pradesh – State with maximum number of road
crash deaths. Tamil Nadu is the state with the maximum number of road crash injuries
These are the statistics given by NDTV.

FUTURE STATE-

The proposed system deals with the detection of the accidents. But this can be
extended by providing medication to the victims at the accident spot. By increasing
the technology, we can also avoid accidents by providing alerts systems that can stop
the vehicle to overcome the accidents . We are going to encounter the problem of
accidents and solve this by using this Accident alert system. Our vision is to make the
transport on roads efficient, safe and sustainable, to reduce the accidents on roads by
half. And to reduce the accident rate to half by 2025.

2.4 COMPETITORS-

As this is the new technology, we have no closest competitors.

2.5 CHALLENGES-

As this will be the new safety feature for automobiles there will be many legal
compliances to be followed or the introduction of this new safety feature to market
and obtaining of copyrights and trademarks will also be a difficult task. Besides
copyrights tie-up with various automobiles players will also be a difficult job.

The main challenges faced by us would be:

➢ LACK OF EXPERIENCE: Since we are first-generation entrepreneurs, we lack

experience as compared to others in the market that have been existing in the market
since a long time.

➢ ABILITY TO CREATE AWARENESS IN THE MARKET: As we are new in the

market, we are challenged by competitors who are established for a long period of
time and hence have acquired loyalty of the customers and created awareness in the
market about their product and service.

➢ RECRUITMENT OF TRUST WORTHY AND SKILLED LABOUR: Recruiting

skilled and trust worthy employees. For us to recruit skilled staff will be very difficult
as it is a new venture and we have very little knowledge of the sector. 23

18
➢ MARKETING DECISIONS: The other important challenge is to attract customers
by our print ads and variety of products that often fail due to incorrect marketing
decisions and hence it is a challenge to us to ensure that our marketing techniques can
attract customers.

➢ REGISTRATION AND GOVERNMENT REGULATIONS: As we are in a

partnership, thus we need to abide with the ‘INDIAN PARTNERSHIP ACT – 1932’
and follow all the rules and regulations drafted by the government. This is a challenge
because after registration with the Indian government the company can be
incorporated. 2.6 WORST CASE SCENARIO AND CONTINGENCIES:

THE WORST-CASE SCENARIO MAY BE:

➢ The market may not accept the product.

➢ Unable to break even as per the estimation

➢ Failure to create a reputation in the market or create awareness of the brand

➢ Break-up or any dispute between the two partners.

➢ Founders may be unable to pay back the bank loan due to losses incurred in the
business

➢ The customers may not like the product and the sales may drop down instead of
rising.

CONTINGENCIES:

➢ Market strategies will be given much attention.

➢ Proper quality check will be made so that no compromise is made on the quality of
the product.

19
20
 CHAPTER THREE
MARKETING

3.1 Product/Service Description and USP-

As the usage of vehicles is increasing drastically, the hazards due to vehicles is also
increased. The main cause for accidents is high speed, drunk and drive, diverting
minds, over stress and due to electronic gadgets. This paper deals with accident
detection system that occurs due to carelessness of the person who is driving the
vehicle. This introduces accident alerting system which alerts the person who is
driving the vehicle. If the person is not in a position to control the vehicle then the
accident occurs. Once the accident occurs to the vehicle this system will send
information to registered mobile number. As you all know that the rate of accidents is

21
increasing rapidly day by day in India and in these accidents many of them are losing
their lives because of lack of proper communication. Even though there are laws to
help the people who met with accidents people are afraid about police case. So, to
overcome this problem we have come with a device called ACCIDENT ALERT
SYSTEM through which we can save the lives of people. Accident alert system is
based on the technology similar to airbags but in this project, we have built an
embedded systems-based vehicle accident alert system using GPS, GSM and shock
sensors. Shock sensor is used to detect accident. So, when accident happens, this
sensor will be active. And the information sends to microcontroller. At the same time,
GSM module will also active which are interfaced to the same microcontroller.
Through GSM the exact location of the accident location is obtained and through
GSM module send a alert message to the register mobile number and police station.
And information is sent to the near Police Stations, family members, friends etc.

3.2 Nature/Features of Product-

 The product detects accidents and alerts the nearest police station and
hospitals.
 It acts as a mediator between the victims of accidents and the service
providers.
 The device has a sensor fixed to it that make the entire process possible.
 Also, there is a chip that connects to the telecom and sends messages.
 This product can be attached separately or purchased with the car.

3.3 Segmentation, Targeting and Positioning-

SEGMENTATION

Market segmentation is the process of dividing a market of potential customers into

groups, or segments, based on different characteristics. The segments created are
composed of consumers who will respond similarly to marketing strategies and who
will share traits such as similar interests, needs, or locations. Market segmentation
also reduces the risk of an unsuccessful or ineffective marketing campaign. When

22
market is visualized based on key characteristics and personalize the strategies based
on that information, the rate of success will be higher. There were not clearly defined
segments and all industry participants more or less much competed with each other
head on. Based on our need of our product benefits, the market is segmented into
diverse sections.

We would segment the market on the basis of demographic and geographic

segmentation. The main elements we would consider under demographic
segmentation are occupation and income. This allows us to target people who require
the product. People who travel a lot by road would require this product more than
anybody else.

On the basis of geographic segmentation, we would classify the market into

metropolitan, urban and semi-urban areas.

Metropolitan cities would require it the most even if people are around because the
information has to be reached immediately after the accident. Since metropolitan
cities are crowded and have huge traffic, the hospitals can plan accordingly to ensure
the victim’s safety.

TARGETING

The next step after the market is segmentation is targeting. Targeting aims marketing
efforts at specific groups of consumers it makes the promotion, pricing, and
distribution of your products easier and more cost-effective.

Targeting the right customers is one of the most important criteria that need to be
looked at in order to create a potential customer market.

The major sectors that we would be targeting are:

Our main target market will the people who own 4 wheelers as in India accident rate
is increasing day-by-day so we would like to save lives of the people by bring this
system.

Car owners-

Basically, we are targeting every-one who owns a car. As this is the new added safety
feature.

23
Income Groups-

We are targeting all income levels (low, medium and high income levels) as we are
selling this service for those who travel frequently.

POSITIONING

This will be positioned as medium price one. We will let our customer know that our
service is reliable and can be suitable for all types of cars. The product can be sold
through online through e-commerce sites such as Amazon, Flipkart, etc. The product
can also be positioned through distribution channels in offline method by the
collaborations with various automobile companies.

3.4 4 P’s Analysis-

Product

The product is the service itself that we are providing to the automobile companies.

This will be the new added safety feature for the upcoming automobiles.

Price

The price range starts as a medium priced one but, the price of the device differs
according to car model and brand.

Place

The factory to manufacture the product is situated in Karnataka and a part of the
device is outsourced for the manufacture. The product can reach customer through e-
commerce sites and the product is distributed through offline channels such as
collaborations with automobile companies.

Promotions

Accident Alert System will be promoted through digital and offline media such as,
you tube advertisements, experience stores in colleges and offices, etc. Promotional
offers such as discount on purchase of multiple no. of devices etc.

3.5 Advertising and Branding Strategy-

24
 The various advertising and branding strategies are as follows

1) Determining Goals-

The first step in promoting company is outlining your goals so you can figure out the
best way to achieve them.
2) Finding Target Audience-

Now that we have a vision, it’s time to find the people who are going to be a part of it.
Start by forming a profile of your typical customer.

3) Consider How Brand Is Viewed-

The next step is to view your company’s branding from an unbiased perspective.
There are many aspects of branding to consider, from logo and corporate colours to
the content you put out on social media. Goal should be to establish your company as
an authority in your field.

4) Try Low-Cost Advertising Options-

Here are some great options for low-cost business advertising opportunities:

 Trade shows and other networking events

 Speaking engagements

 Community events

 Customer referrals

 Online reviews

 Word-of-mouth

 Social media engagement

 Flyers

 Business cards

 Hosting events

 Customer loyalty programs

25
 Mailers

Branding Strategies-

1. Name Brand Recognition

A well-established company will often use the weight of its own name brand to
extend to its products. Most often, a company with large name brand recognition can
be recognized by its logo, slogan, or colours. Companies such as Coca-Cola,
Starbucks, Apple, and Mercedez-Benz are all iconic while featuring multiple
subsidiary products featured under the company name.

2. Individual Branding

Sometimes a larger company may produce products that carry their own weight
independent of the parent company. This strategy involves establishing the brand as a
unique identity that is easily recognizable. General Mills, for example, distributes
Cheerios, Chex, Cinnamon Toast Crunch, Kix, Total, Trix, and more—and that’s just
the cereal division. The company also distributes other major brands from every food
group.

3. Attitude Branding

Ambiguous marketing can often go above the actual product itself in the case of
attitude branding. These brands all use strategies that bring to life personality and a
customized experience with products and services. NCAA, Nike, and the New York
Yankees made Forbes list of “The World’s Most Valuable Sports Brands 2015,” and
are automatically associated with a certain style. Other brands, such as Apple and Ed
Hardy, also reflect a customer’s self-expression.

4. “No-brand” Branding

A minimalist approach can speak volumes. No-brand products are often simple and
generic in design. The most successful company to establish this marketing method is
the Japanese company, Muji, which simply translates to “no label.”

26
3.6 Michael porter’s 5 Force Analysis-

Porter’s five forces model helps in identifying and analysing the main five
competitive forces that effect any industry and also, to determine various strengths
and weaknesses of an industry. Also, it will be helpful in strategizing the company
decisions and applicable for any segment to know about profitability. Porter’s model
helps to explain about why different industries are able to sustain different levels of
profitability. According to Michael Porter, “Competitive Strategy is a technique for
analysing industries and competitors”. The model is widely used to analyse the
industry structure of a company as well as its corporate strategy. Porter identified five
undeniable forces that play a part in shaping an industry. The forces are as follows:

1. Competition in the industry.

2. Potential of new entrants into the Industry.

3. Power of suppliers.

4. Power of customers.

5. Threat of substitute products.

1. Competition in the Industry:

This force is important because it is about number of competitors their ability to

threaten the company. In the case of Accident Alert System, the competition in the
existing market is low, because there are no substitutes and equivalent product to it.

2. Potential of new entrants into the industry:

The potential of new entrants into this industry is considerably a bit high because of
the perks by government to manufacturing industries. As of now, there is no
competition for this product and threat of new entrants is low.

3. Power of Suppliers

27
Suppliers of raw materials turn out to be hassle many times in businesses and this is
not an exception either. Some of the components in Accident Alert System are to be
outsourced. So, there can be delay in supplying of products.

4. Power of customers

As the target customers are not so price sensitive, and price is economical the
bargaining power of customers is low. But, they will expect the value of money when
they spend on technology. This can result positive as the competition to this is
considerably low.

5. Threat of substitute products.

The threat of substitute products is considerably low.

7 Trade Mark/ Copy Right/Patent Protection-

COMPANY LOGO-

This is the trademark, and this will be patented with the patent of the way the
technology is introduced, this will be the official sign/logo used officially by the
product, the patent number with certificate will be provided by the company. Official
trademark and patent will be done for this technology and way of design.

3.8 Sales/Demand Forecasting-

The sales of the service depend on the number of MoU’s with the various automobile
companies.

28
29
 CHAPTER FOUR
HUMAN RESOURCE
PLAN

4.1 Organization chart-

30
4.2 NUMBER OF MEMBERS OR PARTNERS AS FOUNDERS-
NAME DESIGNATION

31
 Mr N. Sai Kiran Reddy Chairman
Mr Sai Hrithik P S Manging Director & CEO
Mr Amarnath .S Director- Sales & Marketing
Mr Kruthik G Chief Financial Officer
Mr Sandeep R Chief General Manager & Co. Secretary
Mr Hrushikesh Executive Officer
Mr Venkat Reddy Sr. Executive Officer

4.3 NUMBER OF EMPLOYEES IN EACH DEPARTMENT – TOTAL

HEADCOUNT-
Total number of Employees-3,000
1700-Research & Development , Engineering
Trading
Projects
Customer services
CRM
Marketing
Finance
HR

4.4. TRAINING PROCEDURE AND IMPLEMENTATION-

Traditional Approach-Most of the organizations before never used to believe in
training. They are holding the traditional view that managers are born and not made.
The are also some views that training is a very costly affair and not worth.
Organizations used to believe more in executive pinching. But now the scenario
seems to be changing.
Modern Approach-Many of the Indian Organizations have realized the importance
of corporate training. Training is now considered as more of retention tool that a cost.
The training system in Indian Industry has been changed to create a smarter
workforce and yield the best results.
Importance of training-
 Optimum utilization of resources
 Development of human resources
 Development of skills of employees
 Productivity

32
  Team Spirit
 Organization culture
 Quality
 Health and safety
TRAINING PROCESS FOR SALES EXECUTIVES-
INDUCTION-Aims to provide an understanding of the industry (2 Days)
PRODUCT PROGRAMS-Imports complete knowledge on its competitors (3 Days)
SELLING SKILLS/CONSULTIVE SELLING PROCESS-Enables understand
customer needs, sales processes etc and enables apply learning in actual selling (2
Days)
CUSTOMER CARE-Appositive attitude and its ability to move is a pre requisite for
excellent performance in any world. Program aims at helping one to build a positive
attitude and Interpersonal skills and to enable better customer handling.
TRAINING PROCESS FOR SALES MANGERS/ GENERAL MANGERS/
BRANCH HEADS-
1.Dealership Management Program-For second generation dealers, and GM’s and Ro
executives on how to manage entire Dealership Operations. Financial Management,
staff management, motivation etc..,
2.Sales Mangers/Team leaders Program-The training covers issues like Sales
management target setting and achievement, enquiry management, resource and time
management, Supervisory skills, Practical Coaching skills etc.,
3.The training covers topics like-making the business plan, Fundamentals of DBP, Hr
Management, Team building, time management, prioritising etc..,
ON-THE-JOB TRAINING METHODS:-

This type of training, also known as job instruction training is the most commonly
used method. Under this method individual is placed on a regular job and taught the
skills necessary to perform that job. The trainee learns under the supervision and
guidance of a qualified worker or instructor. On-the-job training has advantage of
giving first hand knowledge and experience under the actual working conditions.
While the trainee learns how to perform a job, he is also a regular worker rendering
the services for which he is paid. The problem is placed on rendering services in the
most effective manner than learning how to perform the job. On-the-job training

33
methods include job rotation, coaching, job instruction through step by step and
committee assignments.

1. Job Rotation:--

This type of training involves the movement of the trainee from one job to
another. The trainee receives job knowledge and gains experience from his or her
supervisor or trainer of the different job assignments. Though this method of
training is common in training managers for general management positions,
trainees can also be rotated from job to job in workshop jobs. This method gives
an opportunity to the trainee to understand the problems of employees on the other
jobs and respect them.

2. Coaching:-

The trainee is placed under a particular supervisor who functions as a coach in

training the individual .The supervisor provides feedback to the trainee on his
performance and offers him some suggestions for improvement. Often the trainee
shares some of his duties and responsibities of the coach and relieves him of his
burden .A limitation of this method of training is that the trainee may not have the
freedom or opportunity to express his own ideas.

3. Job Instruction:-

This method is also known as training through step by step .Under this method,
the trainer explains to the trainee the way of doing the job, job knowledge and
skills and allows him to do the job. The trainer appraises the performance of the
trainee, provides feedback information and corrects the trainee.

4. Committee Assignments:-

Under this committee assignment, a group of trainees are given and asked an
actual organizational problem. The trainee also solves the problem jointly. It
develops the team work.

OFF-THE-JOB METHODS:-

34
Under this method of training, the trainee is separated from the job situation and his
attention is focused upon learning the material related to his future job performance.
Since the trainee is not distracted by job requirements, he can place his entire
concentration on learning the job rather than spending his time in performing it. There
is an opportunity for freedom of expression for the trainees. Companies have started
using multimedia technology and information technology on training. Off-the-job
training methods are given below:

1. Vestibule Training :-
In this method, actual work conditions are simulated in a class room. Material,
files, equipments which are used in actual work performance are also used in
training. This type of training is used for training personnel for clerical and semi-
skilled jobs. The duration of this training ranges from days to few weeks. Theory
can be related to practice in this method.

2. Role Playing:-

It is defined as method of human interaction that involves realistic behavior in

imaginary situations. This method of training involves action, doing and practice.
The participants play the role of certain characters such as the production
manager, mechanical engineer, superintendents, maintenance engineers, quality
control inspectors, foremen, workers and the like. This method is mostly used for
developing inter-personal interactions and relations.

3. Lecture method:-

The lecture is a traditional and direct method of instruction. The instructor

organizes the material and gives it to trainees in the form of a talk. To be effective,
the lecture must motivate and create interest among the trainees .An advantage of
the lecture method is that it is direct and can be used for a large group of trainees.
Thus, costs can time involved are reduced. The major limitation of the lecture
method is that it does not provide for transfer of training effectively.

4.5 MANAGEMENT STRUCTURE-

35
General
Manager
 Production Marketing Finance
Manager Manager Manager

4.6 QUALIFICATION OF POSTS-

Production Inventory
The candidates must have a portfolio with themSalesmen
at the time of their interview.
Accountants
Workers workers
We will be judging the candidates on the following basis:

1- EXPERIENCE- We will be hiring accountants, workers and giving priority to

much

experienced workers and salesman

2- KNOWLEDGE- All the candidates must have knowledge about various aspects,
such as the marketing technology and basic knowledge in finance is a must in order to
run day-to-day activities.

3- FLEXIBILITY- As we consider Just In Time procedure inventory system

sometimes

employees have to be flexible to work on weekends etc and get additional pay for
extra hours.

4.7 SALARY, BREAK UP AND FRINGE BENEFITS-

The laborers and security staff are provided with accommodation in the firm premises
and are paid on daily basis. All the workers in the firm are provided with morning,
afternoon and evening tea. All the employees of the firm have a health insurance and
a common employee provident fund. The travelling expenses of the managers are paid
by the firm. Every staff is provided with a bonus on Diwali each year.

4.8 WORKING HOURS AND CONDITIONS-

• There will be one shift

Morning Shift: 08:00 am to 5:00 pm

• Looking to traffic issue the management has decided to give 15 minutes lead time to

all the employees.

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• No overtime will be given to staff as they expect to complete their scheduled work

within the office time.

• Half day will be calculated only on working of minimum 5 Hours, other than the

• medical emergency.

• The employee who reports after their scheduled shift time but within the time frame
of lead time will not be consider as late comer. However, company expect high
standard

of punctuality from the employees.

• The employee who reports after completion of lead time will be considered as late
coming.

• The company will again give the privilege to the employees to come late (beyond
the

lead time) twice in a month. However, this benefit will be given to the employee who

reports within one hour of their scheduled reporting time.

Example: If the shift time of one employee is 10:00 am.

o Reports at 10:00 am - Punctual

o Reports at 10:15 am - In time

o Reports after 10:15 am - late

4.9 PUNCTUALITY, LEAVE POLICY AND MATERNITY BENEFIT-

• All employees are eligible for total 15 leaves in a year.

• Company will provide 17 public holidays to all the employees.

• All the leaves will be encased and paid with the monthly salary on pro-rata basis.

• The employee has to obtain the sanction for the leave 2 days prior to leave.

• If the employee has not sanctioned the leave there will be a penalty of Rs. 150/- per

incident will be charged. However, in case of medical emergency the decision of

waiver of penalty can be taken by the management.

37
• The said decision will be on the sole discretion of the management.

• The penalty will be deducted from the salary of the employee.

4.10 RECRUITMENT SOURCES-

Internal:

• Employee referral (CTC according to post)

External:

• Advt. and postings: Company website

• Marketing our Company

• targeting Social event

• Job portals

• Consultants

4.11 RETIREMENT POLICY-

Accident Alert System PVT LTD will not follow any retirement policy as such. The
employees are free to retire or resign from their respective jobs when they wish to,
provided they inform the management about their decision 30 days in advance, so that
we are able to make alternative arrangements and start recruiting potential
replacements for them.

4.12 LOAN GRANT POLICY-

Loan grant policy at Accident Alert System depends on the post an employee is in the
firm. The company plans to provide loan to the eligible employees at 10% interest
rate. The loan granted shall be tax exempted. The company shall give small loans to
people with lesser remuneration structure. The interest and the EMI will be deducted
from the employee‘s base salary every month. The type of loan the company would
be willing to offer are, education loan, car loan, house loan. Insurance benefits of the
company are not part of loan grant policy.

38
39
 CHAPTER FIVE
PRODUCTION/
OPERATIONS

5.1 NATURE AND SOURCE OF TECHNOLOGY/ PROCESS/ PROTOCOL –

The Accident Detection System consist of two main modules. The first
module detects whether the vehicle has fallen down. It is mounted on the vehicle
itself. This module consist of an accelerometer, MSP430 micro-controller and a
Bluetooth module. Once the vehicle fall is detected the information is send to the
second module. The second module consists of a Heartbeat sensor MSP430
microcontroller, Buzzer and Bluetooth module. Once the fall is detected the
heartbeat of the driver is checked and if any abnormality is detected the decision that
a serious accident has occurred is taken. Then the Buzzer in the Accident Detection
System is turned ON and it will communicate with the Smart phone to alert the
medical center.

40
 The Android application in the Smart phone will search for the nearest
medical center and sends message about the accident location and accident victim
details. The Application will also send the information to the emergency contact
numbers of the friends and family that has been already saved in the application.

Figure 1: High level architecture of the proposed System

I. DESIGN OF ACCIDENT DETECTION SYSTEM In this project bike
accidents are being monitored. In
the case of bikes, in the accident, the vehicle will fall either left side or right side, if
the perpendicular axis is taken as the reference. Here accelerometer is used to detect
the tilt of the vehicle. The X-axis of accelerometer is taken for checking whether
bike has fallen or not. The output voltage of the accelerometer is made low, when
the angle of inclination is more than the critical value. Thus when a low signal
output is being produced and send to the microcontroller, microcontroller will
confirm an accident being occurred. Then an interrupt is generated and the
information is send to the heartbeat sensing module to check whether the heartbeat
is abnormal. If the heart beat is more than or less than the normal range then it will
confirm the seriousness of the accident. Thus the decision that serious accident has
being occurred is taken.

The accelerometer fall detection module is mounted on the vehicle and the
heart beat sensor module is attached to the body. It can be integrated as a smart
watch. The Android application in the smart phone controls and connects both the
accelerometer module and heartbeat sensor module by using Bluetooth.
A. Accelerometer based fall detection module
The fall detection module will constantly monitor the posture of the bike. It
consist of an accelerometer and Bluetooth module controlled by MSP430G2452 as

41
shown in the Figure 2. The 3-axis accelerometer ADXL335 is used in this module
[7]. The power module provides the power to the whole circuit using 9V battery
through regulator IC LM117.

The accelerometer ADXL335 IC has three pins X, Y and Z that gives

acceleration in terms of voltage. The signals from the X axis is the one used to find
the tilt angle of the bike towards its left or right side. This analog voltage signal is
fed into the ADC module of MSP430 microcontroller and mapped corresponding to
the angle of the tilt. The angle below 10 degree or greater than 170 degree is
considered as the fall of bike. Once MSP430 detects the fall, an interrupt is
generated and sends a control signal to the Smart phone application. Application
will send the control signal to activate the heartbeat sensing module to check if
there is abnormality in the heartbeat. The Bluetooth module used here is HC-06
connected to MSP430 using serial communication.

Figure 2: Accelerometer based fall detection module

5.2 FLOOR PLAN IN PLANT/FACTORY LAYOUT/ IN OFFICE SPACE-

42
The production process will start from Work in Progress, then it will flow to SMT

Machinery, then to Reflow Soldering Machine, then aging cabinet and then finally

the production work is done and the product is obtained.

5.3 MACHINERY USED-

As manufacturing whole product by the company is not cost efficient as the

machinery required is expensive. So, we thought to manufacture the main component
and rest of the components to be outsourced. The components which are outsourced
must get qualified by the quality control department in the factory and then used for
further production. As we are only manufacturing the main component, the machinery
required for producing the component is less when compared to manufacturing of
whole product. Thus, the machines to be used are SMT machines, reflow soldering
bonding machines, aging cabinets, multifunctional testing machines, vibration
analyzers, assemblers and ODM service machinery are the main machines which are
used for production. This machinery can be handled by skilled laborers. So, they are
workers need to be trained before they work on those machines. The depreciation
would be 5% p.a.

5.5 QUALITY POLICY-

43
5.6 MAINTENANCE POLICY-

44
Maintenance is the set of activities performed to keep equipment in the specified
condition or it is a remedial action to restore the equipment to its specified condition.
Maintenance calls for regular inspection of equipment, plant and installation (both
auxiliary and major), lubrication and alignment and adjustment.

Maintenance Management is that part of manufacturing and operations management,

which cares for smooth functioning of plant without any hitch, hassles and
complaints.

We plan to follow a four-fold maintenance policy. We have named it as the CSPP

Policy.

We now discuss as to what this CSPP Policy means.

CSPP stands for Corrective Scheduled Preventive Predictive Policy. This policy of
ours says that for the smooth functioning of our production lines we’ll take all
Corrective, Predictive, Preventive and Timely Measures in order to avoid any
accidents and injury to our workers and to avoid any hassles and stoppage in the
production department.

Corrective Maintenance – repairs would be made immediately after the equipment is

out of order and it cannot perform its normal function any longer.

Possible Causes:

• Failure to replace the worn out parts

• Lack of inadequate lubrication

• Neglected cooling system

• An attitude of indifference towards minor faults

• External factors like High/Low Voltage, wrong fuel and the like

Scheduled Maintenance – Stitch in Time procedure, which we would use in avoiding

breakdowns. This implies that breakdowns can be dangerous to life and as far as
possible should be minimized.

Inspection, lubrication, servicing and the like would be included in the pre-determined
schedule.

45
Preventive Maintenance – schedules and plans would be made which would try and
minimize the problems of corrective maintenance.

5.7 LOCATION ANALYSIS-

Location will be centralized at Manyatta Tech Park Bangalore, where all the
processing will take place with the office work as well, in the same roof. Bangalore is
the hub for technological advancement in India. Many students and working people
are there who will find our product useful and favourable for their situation. We plan
to set up our offices in other big cities like Mumbai, Chennai, Hyderabad and Kochi
in the future.

46
 CHAPTER SIX
FINANCIAL PLAN

47
6.1 Initial investment

Amou
Expenses Quan Rate nt Total
tity Factory Office

SMT Machinery (rent) 1 15,000 15,000 - 15,000

Reflow oldering
machines (rent) 2 7,500 7,500 - 15,000

Aging Cabinets 1 6,000 6,000 - 6,000

Assemblers 1 5,500 5,500 - 5,500
Computers 8 25,000 75,000 1,25,000 2,00,000
Bikes 4 40,000 80,000 80,000 1,60,000
Furniture and Fixtures 50,000 50,000 1,50,000

Electrical gadgets 1,00,000 1,00,000 2,00,000

Security deposit (Rent) 3,00,000 75,000 3,75,000

Rent 12,00,000 2,50,000 14,50,000
Travelling expenses 25,000 75,000 1,00,000
Insurance 1,50,000
Start-up expenses 5,50,000
Water charges 10,000
Cash in Hand 5,00,000
Cash at Bank 50,00,000
Miscellaneou
Expenses 30,00,000

Marketing Expenses 1,50,00,000

HR Expenses 2,50,000
Partners Salary 6,00,000
Website Charges 25,000

TOTAL 2,86,46,500

The table shows the minimum amount of the Investment for the company, it considers

all he costs that are incurred in the company in order to start the firm. The company

48
plans to raise an amount of Rs.2,86,,46,500. as part of the Capital for the company. The

value is decided on the basis of the cost involved and the Reserve requirements for the

company which could utilized for the future developmental projects.

6.2 Sources of funds:

Particulars Amount Rate of

Interest

Sai Kiran Reddy (owner funds) 71,05,000

Sai Hrithik P S (owner funds) 71,05,000

Bank Loan and OD (borrowed funds) 3,44,36,500 20%

Total 4,86,46,500

The reason for this type of Source of Funds is because the partners has

the capability of bringing in the capital of Rs. 71,05,000 and as a startup

a company couldn’t be able to bear a complete debt and is the reason for

bringing in Own Fund.

6.3 Cost of Capital

The cost of capital for the borrowed funds would for almost equal to 20%. The
borrowed funds

are Rs 3,44,36,500 from a bank. It includes long-term and short-term credit. The
interest equals

to Rs68,87,300.

Principal/Total Debt: 3,44,36,500

Rate of interest p.a: 20%

Interest p.a: 68,87,300

49
 6.4 Depreciation

Depreciation Depreciation Depreciatio Depreciation

Particulars 2019-20 2020-21 n 2021-22 Rate
Computers 60,000 42,000 29,400 30%
Bikes 32,000 25,600 20,480 20%
Furniture and 7,500 7,125 6,769 5%
Fixtures
Electrical 30,000 25,500 21,675 15%
Requirements
Total 1,29,500 1,00,225 78,324

6.5 P&L statement or Income and Expenditure and Balance sheet (projected for 3
years)

Trading A/c-

Particulars 2019 2020 2021

Expenses
To Purchases of raw materials 4,38,00,000 4,61,80,000 4,89,98,000
To Wages 7,48,800 7,48,800 7,48,800
To Factory Rent 12,00,000 12,00,000 12,00,000
To Start-up expenses 55,000 55,000 55,000
To Water 10,000 10,000 10,000
To Factory Insurance 1,00,000 1,00,000 1,00,000
To Factory Manager Salary 4,80,000 4,80,000 4,80,000
To Travelling expenses 25,000 25,000 25,000
To Other Factory Expenses 15,00,000 15,00,000 15,00,000

Total Direct Expenses (1) 4,79,18,800 5,02,98,800 5,31,16,800

Incomes
By Sales 6,47,89,200 7,12,68,120 7,83,94,932

Total Income (2) 6,47,89,200 7,12,68,120 7,83,94,932

Gross Profit/Loss (2) – (1) 1,68,70,400 2,09,69,320 2,52,78,132

50
 P&L A/c:

Particulars 2019-20 2020-21 2021-22

Expenses
To Office Rent 2,50,000 2,50,000 2,50,000
To Travelling Expenses 75,000 75,000 75,000
To Insurance 25,000 25,000 25,000
To Salesmen and Accountant 9,60,000 9,60,000 9,60,000
Salaries
To Managers Salaries 9,60,000 9,60,000 9,60,000
To Partners salary 6,00,000 6,00,000 6,00,000
To 70,00,000 50,00,000 50,00,000
Marketing/advertising/promotional
expenses
To Website and Software expenses 1,00,000 1,00,000 1,00,000
To General Manager salary 6,60,000 6,60,000 6,60,000
To Other Expenses 13,70,500 13,99,775 14,21,676
To Commission 45,00,000 10,00,000 10,00,000
To Interest 68,87,300 58,87,300 68,87,300
To Depreciation 1,29,500 1,00,225 78,324
To Legal and permission Charges 20,00,000 20,00,000 20,00,000
Total Expense (3) 1,86,30,000 1,90,17,300 2,00,17,300

Incomes
By Gross profit b/d 1,68,70,400 2,09,69,320 2,52,78,132

Total Income (4) 1,68,70,400 2,09,69,320 2,52,78,132

Net Profit/Net Loss (4) – (3) (17,59,600) 19,52,020 52,60,832

51
 6.6 Break Even Analysis

Fixed Cost: 3,44,48,800

Variable Cost: 4,150

Sales price per unit: 5,999

Break-even-point in units: Fixed Cost / Sale per unit- variable cost per unit.

=3,44,48,800/ 5,999 – 4,150

= 18,631 units

Break-even-point in years: 1.64 years approx.

6.7 Cash flow statement

Particulars Amount Amount

Net Profit/Net Loss during year (17,59,600)

Depreciation
Computers 60,000
Bikes 32,000
Furniture 7,500
Electrical equipment 30,000 1,29,500

Net Cash Flow from operation activity (16,30,100)

Cash Flow from investment activity

Computers (2,00,000)
Bikes (1,60,000)
Furniture and Fixtures (1,50,000)
Electrical gadgets (2,00,000)
Security deposit (Rent) (3,75,000)
Net Cash flow from investment activity (10,85,000)

Cash Flow from financial activity

Bank Loan 3,44,36,500

Partner’s capital 1,42,10,000
Interest on loan (68,87,300)
Loan repayment (50,00,000)
Net cash flow from financial activity 3,67,59,200

52
Net Cash Inflow 3,40,44,100
6.8 Pay -Back period/ IRR

Payback period: Investment/Annual Cash flow

= 2,86,46,500/3,40,44,100

= 0.841 years approx.

53
CHAPTER SEVEN
EXECUTION PLAN

54
IMPLEMENTATION STRATEGY

The business will have a 3-year plan:

1) In the first year, We will be supplying our products in South India. It will be
an offline distribution However through the online market we will be
supplying to whole of India.
2) In the second year, we will be starting to distribute offline in South India as
well as North India. We plan to setup distribution centres so that the product
can be distributed more efficiently all over India.
3) In the third year, here we will try to get some more variance and develop the
product in order to cater it more useful to the customers. We will closely
observe the customer tastes and what all features can be added to our product
so that it will satisfy the needs of our customer.

55
CHAPTER EIGHT
CONCLUSION

56
 CONCLUSION

This project has helped us learn the various parameters and steps involved in making
a business- plan. It helped us make use of our theoretical knowledge and helped us
make practical use of it. The project involves a lot of research and hence has been of
great aid in improving our knowledge in the given sector. It has given us an
opportunity to think differently and has also reflected on the potential possessed by
us. In this project we learnt to study market fluctuations relating to our product and to
analyse the various dimensions relating to the success of a product. We figured out
the various competitors in our industry and also studied the present and future
scenario of the product stability or acceptability in the market. One of the most
important things we learnt in this project is how to channelize risk in the most
effective manner and get the maximum return out of it. Finally, it taught us how to
work with a partner in setting up a business plan. Even though there were differences
in opinions in the beginning, in the end we came to a final decision which we think
will benefit the company.

57
 BIBILOGRAPHY
Retrieved from-https://www.ibef.org/industry/india-automobiles.aspx

Retrieved from-https://www.ijitee.org/wp-
content/uploads/papers/v8i4s2/D1S0048028419.pdf

Retrieved from-https://circuitdigest.com/microcontroller-projects/arduino-based-accident-
alert-system-using-gps-gsm-accelerometer

Retrieved from-https://www.instructables.com/id/Accident-Alert-System-Using-GSM-GPS-
and-Accelerome/

Retrieved from-
https://www.researchgate.net/publication/321259277_Intelligent_accident_detection_and
_alert_system_for_emergency_medical_assistance.

58
 ANNEXURE
COMPANY LOGO-

QUALITY CERTIFICATE-

59
60