- NEW AGE AIR QUALITY SOLUTION (PRODUCTION SET- UP AND OTHER DEPARTMENT DEVELOPMENT).

Assignment Taken

Setting up of a new production facility for PM Clean Air Solutions Private Limited.

Case Understanding

and the quality of life on the planet. The dire need to monitor air quality is very glaring, owing to increased industrial activities over the past years. People need to know the extent to which their activities affect air quality. This project proposes an air pollution monitoring system by Two Friends Manoj Singh and Parth Mittal Both of them completed their B.Tech from Bengaluru (Karnataka). They both desired for improving the air quality of the atmosphere/environment. As Manoj who was closely associated with the R&D of his Air Quality company, had developed a concept of a hybrid product, which can monitor, manage and suggest the combinations to improve the air quality. This concept was far superior, compared to existing air purifiers, available in the market, which has limited scope of purification. which is the strength of this product. This concept is built with the help of natural plants and machines. They both started a new venture with this hybrid product with 50%-50% equity stake with each of them. The Authorized capital of the company was Rs. 2,00,000/- (Rupees Two Lakhs) only. Next 9 months involved rigorous hard work by both directors. These months were spent in further improving the concept, already developed by Manoj earlier. After a lot of struggles, they both reach a stage when their concept was now ready to take shape of a final hybrid product. The final product developed, consisted of 3 separate units of which two were physical units Air sensor and Air loop and one was software which is known as Air Quality System software, which were all synced as one single device. The cost unit of one physical unit of this product is Rs.23000 and the software used for this product management it can be developed with cost Rs.1, 20,00,000.

BCS Solution Summary

Basically, PMCASPL is the startup. Main concern is to produce accurate marketing plan which will be the competitive in nature also gives long term benefits, so our marketing department studied through about target market, positioning of the product, segmentation for making perfect strategy. Studying SWOT analysis is the very important part of gross consultancy study, for analyzing external and internal factor important for the company's strategy. MARKET RESEARCH- Air pollution is the greatest environmental threat to public health globally and accounts for an estimated 7 million premature deaths every year. Air pollution and climate change are closely linked as all major pollutants have an impact on the climate and most share common sources with greenhouse gases. Improving our air quality will bring health, development, and environmental benefits. The UNEP Pollution Action Note displays the global state of air pollution, major sources, the impact on human health, and national efforts to tackle this critical issue. Air Quality Monitoring is a vital part of a city’s Toolbox of measures to improve urban air quality. Some cities have access to data from reference (or “regulatory-grade”) monitors – which are highly accurate but expensive – while other cities have little to no air quality information. A recent increase in more affordable monitoring technologies has created new opportunities for cities of all resource levels to develop and implement clean air actions. Why Air Quality Monitoring Management is important in metro cities- Heath- Air pollution is a public health emergency. Every year, millions of adults and children die prematurely. 2.Society- The impact of air pollution is unequal. The most disadvantaged communities tend to bear the brunt of polluted air. 3.Climate- Both air pollution and climate change are mainly caused by burning fossil fuels - and they share many of the same solutions. 4.Economy- Both air pollution and climate change are mainly caused by burning fossil fuels - and they share many of the same solutions. 5.Children- Air quality matters from the very beginning of life. Pollution starts to harm fetuses from conception and increases the risk of premature birth and miscarriage. Gross Consultancy Advises for Four main aspects for the PM Clean Air Solutions Private Limited. New Production Set- Up Marketing Plan. Pricing of the Product. Operations, HR and IT development. VISION, MISSION, GOALS, OBJECTIVE VISION-To Develops a new age Air Quality Solutions to India’s smart cities. MISSION- We’ve built a air quality monitoring platform that takes the hassle out of air quality measurement and analysis, a toolset that frees our customers up to make the decisions that matter. GOALS- New Production Set-up Marketing Plan Pricing Strategy Development in Operations and Technology. OBJECTIVE- we will continue to pioneer new technology in the quest for cleaner air in

Solution

MARKET RESEARCH- Air pollution is the greatest environmental threat to public health globally and accounts for an estimated 7 million premature deaths every year. Air pollution and climate change are closely linked as all major pollutants have an impact on the climate and most share common sources with greenhouse gases. Improving our air quality will bring health, development, and environmental benefits.

The UNEP Pollution Action Note displays the global state of air pollution, major sources, the impact on human health, and national efforts to tackle this critical issue.

Air Quality Monitoring is a vital part of a city’s Toolbox of measures to improve urban air quality. Some cities have access to data from reference (or “regulatory-grade”) monitors – which are highly accurate but expensive – while other cities have little to no air quality information. A recent increase in more affordable monitoring technologies has created new opportunities for cities of all resource levels to develop and implement clean air actions.

• Why Air Quality Monitoring Management is important in metro cities-

1. Heath- Air pollution is a public health emergency. Every year, millions of adults and children die prematurely.

2.Society- The impact of air pollution is unequal. The most disadvantaged communities tend to bear the brunt of polluted air.

3.Climate- Both air pollution and climate change are mainly caused by burning fossil fuels - and they share many of the same solutions.

4.Economy- Both air pollution and climate change are mainly caused by burning fossil fuels - and they share many of the same solutions.

5.Children- Air quality matters from the very beginning of life. Pollution starts to harm fetuses from conception and increases the risk of premature birth and miscarriage.

Gross Consultancy Advises for Four main aspects for the PM Clean Air Solutions Private Limited.

1. New Production Set- Up
2. Marketing Plan.
3. Pricing of the Product.
4. Operations, HR and IT development.

VISION, MISSION, GOALS, OBJECTIVE

VISION-To Develops a new age Air Quality Solutions to India’s smart cities.

MISSION- We’ve built a air quality monitoring platform that takes the hassle out of air quality measurement and analysis, a toolset that frees our customers up to make the decisions that matter.

GOALS- New Production Set-up

 Marketing Plan
 Pricing Strategy
 Development in Operations and Technology.

OBJECTIVE- we will continue to pioneer new technology in the quest for cleaner air in India and Globally.

New Production Set-Up-

A powerful new manufacturing plant layout is a key achievement in manufacturing facility management. It is not that easy to have the right impact on the performance. However, it can have an effect on the entire operation of your new manufacturing plant. It includes the manufacturing processes, inventory, dispatch, and administration. But PMCASPL has not that much budget and place to set-up new manufacturing layout so Gross Consultancy has Advised them to do agreement with another manufacturing company and give them some percentage from revenue.

1. Manufacturing Services Contractor-

Contractor covenants and agrees to Manufacture the Products that Company requests it to Manufacture at the Factory utilizing Materials and any Provided Equipment Company consigns to Contractor and/or Materials purchased by Contractor, and Tools and Fixtures, machinery, equipment, and computer systems of Contractor. Contractor agrees that the Manufacture of Product hereunder shall be carried out in a good and workmanlike manner in compliance with the Specifications and instructions of Company provided to Contractor in writing from time-to-time as specified herein. Contractor agrees to provide fabrication, manufacturing and production services to meet Company’s Manufacture requirements in accordance with section 6 of this Agreement. Changes to forecast shall not affect Product pricing, unless mutually agreed in writing by the Parties hereto. Contractor shall have available to Manufacture Product all facilities, employees, Equipment (whether owned equipment, by Contractor or Shared Equipment or Provided Equipment), spare parts for owned equipment and Provided Equipment, computer systems and any other items required to Manufacture the Product ordered by Company. Company shall provide to Contractor all Specifications, manuals and other relevant documentation, any special equipment, necessary to Manufacture Product.

2.Production Set-Up Using Iot-

Stronger demand for customization, increasing customer expectations, the complexity of the global supply chain – these and many other challenges encourage manufacturers to find new, more innovative ways to remain competitive. In an attempt to gain productivity improvements and uncover new ways of enhancing manufacturing and supply chain operations, businesses resort to digital transformation.  

Industrial Internet of Things (IIoT) is a way to digital transformation in manufacturing. Industrial IoT employs a network of sensors to collect critical production data and uses cloud software to turn this data into valuable insights about the efficiency of the manufacturing operations.

The main adoption drivers for the Industrial IoT solution include:

• Cost reduction. Due to optimized asset and inventory management (hence, lower inventory carrying costs and search times), reduced machine downtime, more agile operations, and more efficient energy use, companies reduce operational costs and create new sources of revenue. For instance, smart, connected products allow to shift from selling products to selling experience – product usage and post-sale services. 
• Shorter time-to-market. Faster and more efficient manufacturing and supply chain operations allow reducing product cycle time. Harley-Davidson, for instance, leveraged IoT to reconfigure its York, PA manufacturing facility and managed to reduce the time  it takes to produce a motorbike from 21 days to 6 hours.
• Mass customization. The mass customization process requires a dramatic increase in the variety of produced SKUs, which causes inventory to go up and become more diverse. Manufacturing operations get more complex as well – the production of 20 items of SKU X can be immediately followed by the production of 10 items of SKU Y. Tracking the inventory and the manufacturing operations becomes burdensome and, in some cases, not feasible. IIoT facilitates mass customization by becoming a source of real-time data required for thoughtful forecasting, shop floor scheduling and routing.
• Improved safety. IIoT helps to ensure a safer workplace. Paired with wearable devices, IIoT allows monitoring workers’ health state and risky activities that can lead to injuries. Along with ensuring workers’ safety, IIoT addresses safety problems in potentially hazardous environments. For instance, in oil and gas industry, IIoT is applied to monitor gas leakages as it travels through the pipe network.

3.warehouse- Contract Warehousing Defined

Many companies need to store their goods or supplies for various reasons, and contract warehousing is one of the many dedicated storage options to choose from. Companies that don’t want to build, buy or rent their own warehouse space can enter into a third-party warehouse agreement with an outside provider who specializes in dedicated warehousing. This third-party warehouse provider will handle the storage, shipping and receiving of merchandise on behalf of their client. They can also add value by taking on more logistical tasks such as inventory management and making sure to follow distribution best practices.

essential warehouse management processes

 Inventory tracking

Picking and packing

Receiving and stowing

Shipping

Reporting

2.Marketing Plan-

TAGLINE

“Inhale the excellence”

STP MODEL-

• SEGMENTATION:-

Geographical Segmentation-

Cities- Delhi 2) Mumbai 4) Bangalore 5) Noida 6) Ghaziabad 7) Kolkata

Demographic segmentation-

Place- Government 2) College 3) oil and gas plants 4) power plants 5) commercial office 6) residential area 7). Malls 8). Gyms

Income –High-income or affluent families.

Occupation- Entrepreneur, High-income service class people, Industrialist.

Behavioural Segmentation-

Sought benefits- The deteriorating air quality specifically in Tier1 city has raised the demand for these air purifier which is more efficient than the existing air purifier in the market.

Psychographic segmentation-

Lifestyle- People with an affluent lifestyle are more prone to purchase these products that are more concerned about their health.

Firmographic Segmentation-

Revenue Generation- Businesses with a high revenue generation capability can implement this technology for their employees. These businesses or industries could be more capital intensive or manufacturing industries where health concerns are one of the reasons for reluctance to work, such as the steel manufacturing industry or power plants.

Seasonal Segmentation-

Occasions such as Diwali when breathing becomes difficult for people who are more prone to breathing problems- asthma, allergy and pets.

• TARGET MARKET:

 1) Construction 2) Government authorities 3) Industrial plants 4) Residential apartments 5) Health care institute 6) Affluent family members that have asthma issues and pets.

• POSITIONING & MARKETING STRATEGIES

Positioning Statement-

Inhale the Quality Air to Live Exemplary and Extended Journey Of Life.

Unique Selling Proposition-

• Predicting the Air Quality Index (AQI) for the next few days based on current conditions.
• Constraint the spread of the virus via air.

• PRODUCT BENEFITS

1. A small remote device can be used to control this purifier.
2. It comes in a variety of designs and colours, as well as different shapes.
3. It is made of modern electric wire, which conserves energy.
4. If any issue arises it displays the issue in its inbuilt indicator.
5. ISO tested and certified.
6. It comes highly recommended by doctors.

• CONSUMER BENEFITS.

1. User-friendly and convenient to interpret the suggestions
2. Lightweight and portable. Free transportation fees.
3. Experiencing an elegant and secure ambience.
4. Allergic may benefit from advanced service.
5. Eliminates moisture content in their home or office.
6. Protection against dust, pet allergies, and smoke, among other things.

INTEGRATED MARKETING COMMUNICATION STRATEGY

1. The PMCASPL air purifier could be advertised creatively in newspapers and magazines such as the Economic Times, The Hindu, and The Times of India, which provide great exposure to people who are closely associated with industries, businesses, and government organizations.
2. Due to a lack of awareness about decreasing life span of the people due to the deteriorating Air Quality Index. Dynamic banners and hoarding can prove to be effective in creating FOMO among people in order to encourage them to do impulse purchases of the air purifier.
3. A Guerilla marketing strategy could be executed at a prime location in each targeted city, where the company would set up a cabin with an installation of the air purifier, enabling the passer-by to experience the difference in the AQI of the cabin versus its surroundings. This strategy will eventually lead to getting viral on social networking sites and Youtube.

SWOT ANALYSIS

STRENGTH- PMCASPL is known as the most advanced air purifier for its superior value offering to its customer which no other air-purifier company can provide in the current market. Units don’t occupy a lot of space and could be installed easily.         

WEAKNESS- AQMS manufacturing cost is very high i.e. Rs. 1,20,00,000/- Thus, it becomes quite difficult for the company to sell out at the price with a considerable profit margin. The target market has been restricted to industrialists and businesses with high revenue generation.

OPPORTUNITY- Latest report that says that there are 63 Indian cities among the world’s top 100 polluted cities will generate high demand for this product in the country and will lead to market development for this product. Government initiative and efforts toward enhancing the air quality of the concerned cities.

THREAT- The threat of the new entrant could be a threat to the firm to compete with the current pricing of the air purifier. The bargaining capacity of the buyers could be the other issue that could cause a reduction in the company’s profit margin. Rivalry industries or the existence of competitor who has more exposure and good distribution channel in the market.

PRICING STRATEGY-

1. Skimming: In this strategy the price for new product is set very high initially (at launch). This ensures getting high revenue from all the segment of buyers. Perhaps launch of a new highly anticipated smartphone is an example for this. Price of the newly launched iPhone or a Samsung flagship phone is always very high initially and with time we can see the prices fall.
2. Penetrative: This is the strategy in which the focus is on grabbing maximum marketshare. Hence, the price of the product is set very low initially (at launch) so that it can penetrate the market and attract buyers of all segments. Reliance Jio is a perfect example for this strategy. The prices of services was zero at launch, eventually they were set at a fraction of the existent competition’s prices. Consequently Jio has been able to grab a significant marketshare in spite of being a new entrant in the industry.
3. High-Low Pricing: In this strategy the pricing is set high but the product is sold with heavy discounts and promotions. The high price (list price) signals to the market that there is immense value being delivered in this product. This is done to ensure an increase in the foot traffic and ensuring that enough interest is generated in the audience. This is seen quite frequently in the Xiaomi products sale.
4. Freemium Pricing: This is the most common pricing model these days. Freemium in itself has many different variations to execute. In one of the variants, the product is available for free for a certain duration only, after which the customer has to purchase the license to continue using. Another variant is based on usage threshold, the customer can use the product until a certain usage threshold is hit (number of transactions, number of users etc.) after which the customer is required to buy.
5. Decoy & Psychological Pricing: The prices for similar products is set differently to drive more sales for the cheaper alternative. SAAS companies use this for driving sales to a specific plan. Retail stores do this at times too, to drive more sales to a new product.
6. Predatory Pricing (can be illegal): In predatory pricing, the product is given away for free. The company may be making loss on each sale but this is potentially done to drive the competition out of the market completely. One example of this is Uber when they started, they werelosing money on each transaction. Another legacy example is of Internet Explorer. This was provided for free with the OS by Microsoft. In those days, Netscape Navigator the prominent web browser in the market was a paid product.
7. Dynamic Pricing: This is something we have all experienced in case of Uber. The price is changed based on the demand and/or supply; known as surge pricing in case of Uber. Hotel room booking, flights booking are other examples where dynamic pricing is widely used.
8. As discussed above using sales forcasting and calculation our finance team analyzed the MRP of the product is Rs10000. this price is very afordable for target market and it is competitive in nature.

3.IT development:-

1. Air Sensor

Air quality sensors are devices used to detect contaminants in the air. This includes particulates, pollutants and noxious gases that may be harmful to human health. They are used in applications like air quality monitoring, gas detection in industry, combustion controllers and oxygen generators in aircraft. Volatile organic compound (VOC) sensors are available that are capable of detecting volatile chemicals and odorous pollutants.

2.Air Quality Management System.

One of the effective means of developing this software is by using Machine Learning. The entire R&D will we done around collection of data sets. We can have a look at the trends in the data and build our models around it.

3.Mobile Application /Website and User Analysis.

Using cutting edge technology to develop robust softwares.

User friendly experience and a catchy UI.

Having an option of feedback from the user to be able to cater their needs proactively.

Creating a tab for FAQs and also having a chatbot for assistance to the user, if any required.

We can also have an engine at the backend that’ll let us know from which forum the users are getting redirected to our application. This will help the management teams to decide their future marketing strategies.

4.Air Loop

The purifier’s sleek cylindrical design is a result of its function—air travels from the base upwards, passing through a plant as well as 3 mechanical filters (nylon, HEPA, and activated carbon), before making it into Aria’s UV chamber that neutralizes any harmful microorganisms.

An ionizer destroys VOCs and odors to produce fresh-smelling air before it is pushed through Aria’s ‘air booster’ at the top of the planter.

4.HUMAN RESOURSE DEPARTMENT –

. Job roles and descriptions

1.Air quality specialist

Conduct air quality field tests and air quality impact analyses.

Prepare air-emission inventories and organize and interpret data from monitoring sites.

 Prepare dispersion models and develop air-sampling methods.

 Review permit applications and evaluate regulatory compliance

2.Equipment engineer

engineering methods to carry out equipment engineering.

To conducts proper installation and maintenance of equipment and network solutions to monitor the equipment.

 Leads improvement projects and prepares equipment maintenance plans.

3.Web designers

Must use their creative and software engineering/programming skills to design, build and improve websites.

understand user experience and are able to build websites that are easy to understand, navigate, and use, and adhere to design standards and specifications. 

front-end developer skills

4.Mobile app developers

Support the entire application lifecycle (concept, design, test, release and support)

Produce fully functional mobile applications writing clean code.

Gather specific requirements and suggest solutions.

Write unit and UI tests to identify malfunctions.

Troubleshoot and debug to optimize performance.

5.Security grand

Inspect and patrol premises regularly.

Monitor property entrance.

Authorize entrance of people and vehicles.

Report any suspicious behaviors and happenings.

Secure all exits, doors and windows.

Monitor surveillance cameras.

6.Field executive

Given weekly/monthly sales targets that must be achieved.

There will be personal as well as team targets.

Tasked with generating new business as well as ensuring existing clients are fully serviced and new offers and proposals put forward.

7.Air quality consultant

Your daily responsibilities will see you delivering specialist air quality assessments, such as data analysis, dispersion modelling and monitoring studies, in order to reduce air pollution, carbon emissions and improve air quality in general.

Day to day, you’ll need to be collaborative, technical and creative - it’s a multifaceted role that requires you to think quickly and analytically with each task you’re given. You’ll need to work with team-mates and liaise with clients in order to achieve goals and reach project deadlines effectively. The work you’ll be doing will spread from writing analytical reports to designing dispersion models. As such, you will need to be able to juggle multiple projects efficiently.

2 Performance management based on performance appraisal :

Appraisal will depend upon performance parameters:

-Customer Satisfaction,

-Internal Process Quality,

-Employee Satisfaction, and

-Financial Performance Index

3. HR stratergies over communication process

Create a Long-Term Internal

 Communications Plan. ...

Create an All-In-One Communication System. ...

Encourage Face to Face Communication. .
.Make Company Culture the Focus. ...

Share Engaging Content. ...

Implement Surveys. ...

Strategize an Onboarding Process for New Employees.

4. Training needs and assessment design

An effective approach for air quality management in polluted areas involves (i) identification of emission sources; (ii) assessment of extent of contribution of these sources on ambient environment; (iii) prioritizing the sources that need to be tackled; (iv) evaluate various options for controlling the sources with regard to feasibility and economic viability; and (v) formulation and implementation of appropriate action plans. In order to achieve these steps, a preliminary knowledge and understanding of the air pollution and air quality management is a necessity.

Employee Motivation Strategies

1. External Motivation

Fear — You had better get this right, or you will lose money, job, respect, relationship, status, etc.

Incentives — If you do this right, you will gain money, recognition, status, promotion, better lifestyle, etc.

The impact of external motivation is temporary. When the threat or incentive is removed, motivation is lost.

2. Internal Motivation

Levels of thinkingMost employees understand that “If it is to be, it’s up to me.” Many set worthwhile goals, BUT their suboptimal thinking prevents them from being their

best. They fail to take the best actions to achieve the best outcomes. They compromise their best interests and their organization. They just don’t deploy consistent Optimal Thinking.

You can create an inclusive “Best Place to Work” environment where loyal employees bring the best version of themselves to work. Optimal Thinking employees don’t rely on a pat on the back from management or a bonus at the end of the year to do their best. They focus on what is most important and ask the best questions to invite the best solutions. They make the most of the hands they are dealt. External incentives, recognition, and rewards are secondary for these self-motivated optimizers. All aspects of workplace trust proliferate in an Optimal Thinking collaborative culture, including:

credibility

transparency

respect

fairness

pride

camaraderie

optimization

Recruitment Process

The hiring manager submits a completed requisition to the HR department.

The HR department will assign a requisition number to assist in tracking and reporting.

The HR department will meet with the hiring manager to discuss the position and determine the most effective recruitment and selection process.

Recruitment sources will include some or all of the following:

[Company Name] website.

Internal posting.

Online job boards.

Social media sites (Facebook and LinkedIn).

Newspaper advertising.

Retained agency search.

Temporary agency placement.

Employee referrals.

The HR department and hiring manager will review resumes of qualified candidates to identify the most appropriate candidates for interviewing.

The HR department will conduct telephone pre-screens of identified candidates and schedule in-person interviews with the hiring manager.

FINANCE DEPARTMENT- 

A finance department is the unit of a business responsible for obtaining and handling any monies on behalf of the organization. The department controls the income and expenditure in addition to ensuring effective business running with minimum disruptions. Besides the traditional roles of handling the payroll, income and expenses, finance department responsibilities also include economic analysis to improve key business strategies.

1.ACCOUNTING-

Daily account record keeping is a finance department function that entails reconciling a company's financial registers to make suitable business decisions. Through bookkeeping and income statement preparations, the unit supports the management in filing requisite financial data that's useful in managing funds.

2. Examining financial statements and reporting

By analyzing a company's financial statements, the finance department evaluates economic trends, identifies its future investment and cultivates long-term business plans. It uses and synthesizes financial analysis information to assist in business decision-making.

3. Preparing and forecasting budgets

The finance department plans and implements the company's financial year budget. The department also conducts research and collects data that assists in the organization's temporary and permanent financial forecast. The information is essential in planning and providing informed decisions critical to expansion, such as staff training and asset procurement.

4. Managing operations systems

The finance department plays a significant part in acquiring, updating and maintaining the latest operations systems to improve efficiency. A systems change may include automation of various functions or digitalization of some organization's systems.

capital in hand-

	capital in hand
Sr no	Description	Amount	Remark
1	Initital investment from Manoj	50,000
2	Initital investment from Parth	50,000
3	2nd investment from Manoj	500000
4	2nd investment from Parth	500000
5	Funds from FAIF - 5% equity	100000000
6	Funds from Program - 5% equity	100000000	5Cr against 5% inquity & 5Cr as loan at 12%pa interest rate
	Total	201,100,000
	Minus expenses on research and prototypes
1	Prototype - Air sensor, 2 x 15000	30000
2	Prototype - Air Loop, 2 x 8000	16000
3	AQMS development cost	12000000
4	Production plant - Production lines and other facilities	70000000
	Total	82046000
	Remaining capital in hand	119,054,000
	Capital to be utilised for 2022-23	100000000
	Backup and emergency funds in hand for 2022-23	19,054,000

Yearly Expenses-

	Yearly Expenses
Sr no	Description	Cost per month	Cost per year
1	Salary of two Software Developer	300000	1800000
2	Salary of Web Designer	35000	420000
3	Salary of Mobile App developer	80000	960000
4	Rent of Premises (Maximum seating capacity is for 10 people currently)	25000	300000
5	Salary of two Field Executives*	80000	360000
6	Two Directors Salary	200000	1200000
7	Consultancy fees to	500000	6000000
8	Maintenance cost of AQMS software - tentative	50000	600000
9	Raw material cost for 10000 units a month. For 1 Set 3000 *including taxes	75000000	900000000
10	Rent of Production plant + Warehouse	1000000	12000000
11	Machine operator cost - 9 operators, 15000 each	135000	1620000
12	Supervisor cost - 3, 25000 each	75000	900000
13	Plant operations - Administrative and maintenance cost	100000	1200000
14	Interest to loan provider (12%pa for 5Cr)	1500000	18000000
15	Transport cost (10000 units a month)	100000	1200000
16	Packaging cost (10000 units a month), 500 Rs per set (Sensor + Loop)	5000000	60000000
	Total expenses	84180000	1006560000
	Initial investment	82046000
	1st month expense + initital investment	166226000

Pricing Strategy-

	PRICING STRATEGY
Sr no	Per set MRP	Sale Qty per month	Monthly sales	Yearly sales
1	10000	10000	100000000	1200000000
		Monthly Total expenses	38030000
		Monthly Net Profit	61970000

PRICING STRATEGY-

As discussed above using sales forcasting and calculation our finance team analyzed the MRP of the product is Rs10000. this price is very afordable for target market and it is competitive in nature.

BREAK EVEN POINT-

	BEP
Sr no	Month	Sales	Expense + initial investment	Difference for BEP
1	1st Month	100000000	166226000	-66226000
2	2st Month	200000000	250406000	-50406000
3	3st Month	300000000	334586000	-34586000
4	4st Month	400000000	418766000	-18766000
5	5st Month	500000000	502946000	-2946000
6	6st Month	600000000	587126000	12874000
7	7st Month	700000000	671306000	28694000
8	8st Month	800000000	755486000	44514000
9	9st Month	900000000	839666000	60334000
10	10st Month	1000000000	923846000	76154000
11	11st Month	1100000000	1008026000	91974000
12	12st Month	1200000000	1092206000	107794000

After the calculations on the company's expenses and initial investment break even point will come between -4-6 month in the first year

Conclusion

-Always First Marketing research and Competitive analysis Give company profitable marketing plan. -New Technology Based production system always give organization long term profit. -After analyzing the financial factors we come to the final price of the one air sensor product should be 10,000rs. Which is very affordable as compare to other purifier in the market. -Development in mobile App is very efficient now a days and we introduced new mobile app for this product management. -Development in supply chain with the help of internet of thing will beneficial for this company in long run. -Development in HR department is also crucial part for us but we decided to full study on human nature and their behavior towards their work

Attached File Details

Video

https://youtu.be/JvRNjpRuL-Y