VC Presentation - Transportation

Presented to:Prof. Chandra Kant

Presented by:Pargat Singh Sidhu

Sant Khalsa Dal Transport

Presented to:Prof. Chandra Kant

Presented by:Pargat Singh Sidhu

Introduction

Who are we?

• Situated In Jamshedpur

• Expert In Transportation

What do we do?

• FTL (FULL TRUCKS LOAD)

• PARCEL/PTL (PART TRUCK LOAD)

• BULK TRANSPORTATION

• MULTI-MODAL CONTAINER

• REFRIGERATED TRUCKS

• DEDICATED TRUCKS


Importance of Transportation

• Place Utility

• Industrial Development

• Employment Opportunities

• High Standard of Living

• Distribution of Perishable Goods

• Emergency Transportation


Problem to be Solved

What is the problem to be solved or market opportunity?

• Financing

• Congestion

• Infrastructure

• Safety

• Population

• Increased truck weights


Market Opportunity

• Huge Market Size

• Growth in consumer

• Consolidation in the market

• Foreign Investment

• Product Innovation

• Infrastructure

• Information Technology


Market Analysis

Pricing Strategy

• Is decided on the basis of the competitive strategy

• Overall Trade off: Increase firm profits

• Everyday low pricing versus high low pricing

• Fixed prices versus menu pricing

Advertising Strategies

• Press

• Media

• Print Ads

• Interviews

• Internet

Promotion

• Efficient Distribution Network

• Provides Supply Chain Solutions


PESTL Analysis

P – Political and L - Legal

• Legal permit to cross the national and state borders

• Excise duties and tariffs are charged

• Regulations for transporting dangerous goods by

Road – ADR

Air- ICAO

Sea – MCA

• Motor Vehicle Act

E - Economic

• The annual logistics cost in any country varies in between 9% to 20% of their GDP (US being 9% and India being 14%)

• In India, Transport industry has created employment for more than 43 million people

• Exchange Rate and Demand Risk


PESTL Analysis Cont.…

S – Social

• E-Business

• Switch to alternative fuels to reduce emission of green house gases

T – Technology

• Transportation Industry has become technology driven industry


Porter’s Five Force Model

• Threat of Entry – High

• Intensity of rivalry – High

• Substitutes – Medium

• Bargaining Power of Buyers – High

• Bargaining Power of Suppliers - High


Self Finance

Debt / Bank Finance

Public Stock Markets

Private Equity

Venture Capital

Angel Financing

Non-Equity Financing Equity Financing

Overview of financing options


Reasons to raise equity finance

HiringRapid Product

DevelopmentPartnerships

Infrastructure Internationalisation Commercialisation


VC funding supports

Why Invest?

• We act as a single window to its customers providing multi-model solutions combining Air, Sea and Surface transportation.

• We offer integrated logistics solutions for optimizing time and cost.

• Transporting and storage of perishable products from its source to the end-user.

• Offers door pick-up & door delivery. The satisfaction of our clients with on-time deliveries.

• Provides hassle-free services for a wide variety of industries viz., textiles and apparel, white goods...


Funding Requirements

How much money do I need?

- 5 Lakhs (Self Finance)

- 30 Lakhs (Initially)

Total Fund Required – 35 Lakhs

Anticipated future rounds of financing

- Seed – 30 Lakhs

- Early Stage – 10 Lakhs

- Later Stage – 10 Lakhs


Cost Involved

• Garage or other facilities for vehicles stored at business premises

• Additional security features – e.g. immobilizers and tracking equipment

• Routine servicing and maintenance of vehicles

• Repairs for scratches, wear and tear (tyres) or accident damage

• Fuel costs

• Cleaning

• Parking costs incurred for business use

• Toll charges incurred for business use

• Accounting/invoicing

• Traffic fines

• Marketing and advertising programmed

• Salaries and benefits for staff


Benefits for VC

Management fees – annual

• - Up to 2-3% of assets under management

Carried interest – “carry”

• - 20%+ share of the profits from the fund’s investments


Exit Strategy

Exit – liquidity event to recoup investment

• IPO

• Liquidation

• Sell out


“ Let’s Do A Business To Make A Difference”

Questions?

Thank you!


Automotive

VC Presentation - Transportation