Ashwa racing

Racing, owing to its requirements has become a costly sport with skyrocketing expenditures. In Ashwa RACING we work towards building race cars that are cost effective, affordable and high on performance. Our design experience and manufacturing strengths make economic production merge with quality.

Contents
The Product Target Market Marketing Strategies After Sales Network

Operational Procedures
Investment and Returns Expansion and Diversification

Risk Analysis and Exit Strategy

The RZ09
The Ashwa RACING RZ09 promises uncompromised safety with optimum performance to keep you ahead of the competition.

Standard Car Specs Class: Formula SAE Weight: 193 kg Mild Steel Space Frame 0-100 in 5 secs 600cc F4i Honda Engine 90 HP Power Programmable ECU

The MARKET
The RZ09 appeals to a diverse market of amateurs with limited or no access to affordable Race cars. With our base setup in Bengaluru, India our first products will be launched in foreign markets across the middle-east. With competitive pricing strategies, we can guarantee high profit margins in the initial stages.

Market Features High Purchasing Power

Existing Race Culture

Import and Tax Friendly Pre Existent Customer Base

CUSTOMS AND LOGISTICS?

The MARKET
Simultaneous product sale in the local market is expected to gradually increase in volume. India presents to us an untapped market with a large customer base passionate about racing but with very little access to anything beyond a GoKart. Our focus is to establish a virtual market monopoly with a popular following to counter any future competition.

THE OBVIOUS DIFFERENCE

MARKET STRATEGIES
Development of race cities: we seek to develop an understanding with infrastructure majors. Eg: GMR, DLF wherein race tracks with race cars would be incorporated into major housing and real estate projects.

We would partner with the same to setup auto-dromes or racing rings with a variety of tracks across India and the middle-east to cater the market appetites.

MARKET STRATEGIES
Ashwa Racing will
organize weekend Races for Multi National Companies.

HASSLE FREE DRVING PROGRAM to provide quality customer satisfaction

Develop a Brand Image through setting up driving schools. Hence create a dedicated customer base for future products

MARKET STRATEGIES
We will also vendor race cars to central recreational facilities, race tracks etc. Upgrades will be offered to all customers for a period of three years thereafter new models will be introduced into the market. Thus ensuring that each product line achieves its maximum capacity profit.

Product Line Change

After sAles Network

After sale of 1000 units over 1 year of operations, ashwa rAcing shall begin to develop an after sales network to ensure ease of replacement of damaged parts. Maintaining a high premium on spares will generate compounded profits. Focus would also be to maintain a strong supply chain network across the markets Part sourcing through websites and supply to dealerships with expansion setup dedicated spare shops.

OPERATION Procedures
The basis of our operational procedure would involve : Minimum front loading of investment. Operation on credit. Control of inventory.
Controlled Expansion: Production capacity will be increased only when demand increases.

Advance Payment will be charged upon Order and the money shall be used to pay vendors thus minimizing load on available liquidity and maintaining high Current Ratio .
Inventory of parts will be maintained at most for a weeks production or 28 cars to account for unforeseen supply shortages. Thus the percentage of Fixed Assets will be controlled. Labor policies will be based on rotation and shift basis. Running a lean manufacturing system so that a crash in market doesnt lead to accumulation of stock, thus minimizing loss.

OPerAtion Procedures
Taking into account global economic scenario, it is essential we maintain strong financial health and focus on sustenance. At the same time we must utilize various opportunities a recessionary market throws at us. Also we are looking for a Long Term Relationship with the investor who will continue to benefit as the company grows.

The Project Implementation has the following stages

Stage 1 :Production, Market Testing and Upgradation. Stage 2 :Launch of Standardized model and Brand Propagation. Stage 3 :Market Expansion.

OPERATION Procedures
Stage 1 (1 year ) : Productionise, Market Testing and Up-gradation
In the initial stages the basic manufacturing / assembly center will be setup and the first prototype will be launched to a test market in the Middle East . Based on its reactions and performance a benchmark will be set and the next production model will be modified and released.

Stage 2 (3 years) : Launch Standardized model and Brand Propagation

Production and continuous quality improvement. Focus on cost cutting measures and utilization of resources. Creating a healthy company which has good reputation and commands respect. Spreading name across markets to increase profits and gaining a monopoly.

Stage 3 (2 years) : Expansion

Diversifying into new fields to generate alternate incomes, develop new products, Hybrid green, etc.

PLANT SETUP, Production

Production Target: 4 cars /day. Manufacturing done partially in-house and partially by local OEM vendors. Strong Assembly Centers controlled by specifically trained personnel.

The local manufacturing unit would be initially taken on rent/lease basis. Initially the manufacturing can be outsourced, but gradually as the company grows the major manufacturing line will be shifted in-house. The car will be assembled in-house, with quality control.

Assembly Procedure At Work Station

Assembly Center Production

Chassis+Wishbones +Structural Mounts

Engine System (Engine +Radiator)

Drivetrain system

Electricals +Display

Brake System + Wheels

Suspension System: Suspension + Steering System

Seat + Body + Safety Equipments

Basic Car Ready

Up gradations to follow

Rear Wings+ Front Wings for Aero.

UPGRADES
Basic Assembly as Shown Above

Turbocharger
Custom Wheel Rims Adjustable Dampers + Suspension Geometry.

Pneumatic Gear Shifter

Cost of Investment
To setup an assembly line within India we will need Land 2 acres + Building 10000 sqft.: $23,000 (5 year Lease) Electrification, Water Supply: $3,000 Furniture and Office Resources : $1,150 Machine Tools, Welding Machines, Jig Setup, Compressors: $35,000 General Workshop equipments: $15,000 Racking Trolleys Tools Tool Cabinets Miscellaneous Total Cost of Infrastructure Investments: $77,150 We want to build an assembly unit in conjunction with an existing testing facility So that most of our cars can be tested. Cost of present prototype: $4,200.75 Assuming 800 units manufactured in Stage 1 Labour Cost : $1,062,850 Total Factory Cost (Including Labor): $4,500,000 (All costs and contingencies included. Total projected cost to be incurred for production of 800 units in first stage)

PROFIT AND RETURNS

We propose to sell the same at a market price of: $6500 +Logistic Overheads. Advance to be charged from customer for each prototype : $3500. Working Capital Generated for 800 units : $2800000 Money Required From Investor :$200,000 + $50,000(R&D Upgrades) The revenue generated in the year: $5,200,000 by selling 800 cars The net profit obtained from sales in First Stage :

$2,337,850.00
NOT ONLY DO WE BREAK EVEN BUT ..GENERATE A PROFIT IN STAGE 1
Profit Amount : $2,087,850.00 - over 8 times

Investment Value .

PROFIT AND RETURNS

The investor would be a Permanent Board Member and Part Owner of the project and receive 80% of the amount in the first financial year.

Remaining 20% would proceed towards further development of the company.

From the second year onwards the investor receives 70% of the profit and henceforth the percent decreases 10 each progressing year up till a value of 40% which stays constant.

PROJECTED SALES
Projected sales over the first five years, a constant 10% increase with jump of 50% in the second year. YEAR 1 Year 2nd year 3rd year UNITS SOLD 800 1000 1100 TURNOVER($) PROFITS to YOU($) 5,200,000 6,500,000 Increasing so on

80% = 4,160,000 70% = 4,550,000 So on

4th year
5th year

1120
1300

Risk ANALYSIS AND MITIGATION STRATEGY

At Ashwa RACING, Investor support is of prime importance hence we must particularly consider the risks involved. The possible challenges we may face in initial and progressive markets :
It is a relatively new concept venturing into uncharted markets. Time needed to set it up as standard in amateur racing. Possible competition from similar companies in cheaper markets like China or South east Asia .

EXIT STRATEGIES : Private Equity : In the expansion stages or also in general operations due to unforeseen factors the business may face cash shortages. Based on the situation the investor may be required to infuse minimum capital accordingly to avoid insolvency. IPO: To aid major expansion plans in the future once when ashwa RACING is a known and respected brand name the company may decide to list in the stock markets to generate required capital.

DIVERSIFICATION
With time and success ashwa RACING will launch passenger car line with the

technology of earlier formula models. Marketing strategies will focus to

highlight that our race winnings will be the direct tool for capturing the wealthy customers .Thus giving us an opportunity to capture the luxury car market.

Ashwa RACING will also attempt to acquire manufacturing contracts from alternate sources of income and help us exploit our inherent cost advantage .

overseas clients through business networking opportunities thus giving us an

DIVERSIFICATION
ashwa RACING has in mind eco friendly and hybrid technology

to

keep up with global norms and standards. In the future, once we have setup a name for ourselves in the market, we propose to develop HYBRID Formula Cars that will incorporate Fuel Cells, Battery Packs and Electric Motors and KERS Systems to eventually reduce dependency on the Gasoline Engine. Also we seek to collaborate with teams /labs working on developing Synthetic Petrol and natural diesel jatropa

Ashwa racing
We look forward to your support to the venture. We will be glad to clarify any doubt regarding any aspect of the plan.

THANK YOU