TEAM STARKERS MOTORSPORTS :: Business Plan Event - 8th Quad Torc (AIR-2)

Summary

Starcus Engineering Works, an automobile manufacturing solutions provider, addresses industry challenges like technology stagnation and skilled labor shortages. They offer a one-stop solution with reliable manpower, no minimum order requirements, and competitive rates. With a focus on the Indian market, they aim to be a leading startup, manufacturing for student teams and startups. Their marketing strategies include engineering blogs, Motorsports sponsorships, and workshops. Revenue projections show significant growth, with partnerships with EV startups like Sony and D Express contributing to their financial success. They seek 1.5 crores for a 10% equity stake to expand and acquire advanced machinery.

Takeaways

• 🚀 Starcus Engineering Works is an automobile manufacturing solution provider that aims to solve problems in the industry such as a lack of advanced technology and skilled labor.
• 🔧 They identified the industry's phase as 2.2 and noted issues like material seller monopolies, authenticity concerns, and high costs due to long lead times and material unavailability.
• 🛠️ The company offers a one-stop solution for vehicle manufacturing, with reliable and skilled manpower, fast response times, no minimum order requirements, and standard rates for special parts.
• 📈 They are leveraging Industry 4.0 to provide a large variety of operations with optimum quality.
• 👥 The founding team includes Sahil Singh (CEO), Shubham Maurya (CTO), and Tanmay Salaunkhe (CMO), who bring a combined vision to create a successful one-stop solution company.
• 🎯 Their mission is to deliver a better future to the next generation with the same excitement and experience of traditional manufacturing, ensuring safety.
• 🌟 The vision is to be a leading startup developing and maintaining world-class products and services for the Indian market.
• 📊 Initial target market is Mumbai-based student teams and various automobile startups, with a gradual shift towards industries.
• 📈 Revenue projections for the first half of 2020 were 2.59 lakhs, with an estimated over 5 lakhs for the second half, boosted by a tie-up with EV startup Sony.
• 💹 Future financial predictions show a revenue of around one crore by 2023, with 60% from startups and 40% from student teams, and 1.6 crores by 2024, with 75% from startups and 25% from student teams.

Q & A

What is the main focus of Starcus Engineering Works?

Starcus Engineering Works is an automobile manufacturing solution provider that focuses on creating a marketplace to deliver manufacturing solutions and material procurement for Motorsport teams and startups.

What problems did Starcus identify in the automobile manufacturing sector?

Starcus identified a lack of reliable advanced technology, an acute shortage of skilled labor, material supplier monopolies, and issues with the authenticity of parts. Additionally, there were high costs due to long lead times and material unavailability.

How does Starcus Engineering Works plan to address the identified problems?

Starcus offers a One-Stop solution for vehicle manufacturing with reliable and skilled manpower, fast response times, no minimum order requirements, and standard rates for special parts. They also leverage Industry 4.0 to provide a large variety of operations with optimum quality.

Who are the founding members of Starcus Engineering Works?

The founding members of Starcus Engineering Works are Sahil Singh (CEO), Shubham Maurya (CTO), Tanmay Salaunkhe (CMO), and the speaker who is also a part of the founding team.

What is Starcus Engineering Works' mission and vision?

The mission of Starcus Engineering Works is to deliver a better future to the next generation with the same excitement, experience, and safety of traditional manufacturing. Their vision is to be a leading startup developing and maintaining world-class products and services for the Indian market.

What are Starcus Engineering Works' initial target markets?

The initial target markets for Starcus Engineering Works are Mumbai-based student teams and various automobile startups.

What marketing strategies does Starcus Engineering Works plan to implement?

Starcus' marketing strategies include publishing engineering blogs, sponsoring Motorsports events and teams, conducting workshops and exhibitions in colleges, and promotional marketing through referral codes, coupons, flyers, posters, stickers, and merchandise.

What are Starcus Engineering Works' revenue projections for 2020 and beyond?

In the first half of 2020, Starcus generated a revenue of 2.59 lakhs, with an estimated projection of over 5 lakhs for the second half. For 2023, they project revenues of around one crore, and for 2024, they expect revenues of around 1.6 crores.

How does Starcus Engineering Works plan to utilize the investment of 1.5 crores?

The 1.5 crores investment would be used for the expansion of the company, acquiring advanced machinery costing around 55 lakhs, and investing around 25 lakhs in inventory.

What is the current valuation of Starcus Engineering Works and how was it determined?

The current valuation of Starcus Engineering Works is 15 crores. This valuation takes into account the potential of their networks, assets, and the business they have already done, including signed deals with EV startups like Solai and D Express.

What is Starcus Engineering Works' approach to handling a technical issue like engine overheating?

Starcus would handle technical issues like engine overheating by setting up a grievance portal on their website for customer complaints, scheduling recalls for problematic vehicles, offering ECU re-tuning, replacing radiator fans if necessary, and continuing R&D for cost-effective solutions. For brand building, they would issue sincere apologies, run marketing campaigns, and conduct third-party technical audits.

Outlines

00:00

🚀 Introduction to Starcus Engineering Works

Starcus Engineering Works is introduced as an automobile manufacturing solution provider that addresses industry challenges like lack of advanced technology, skilled labor shortages, and material monopolies. The company, founded by Sahil Singh, Shubham Maurya, and Tanmay Salaanke, offers a one-stop solution for vehicle manufacturing with reliable manpower, quick response times, and no minimum order requirements. They aim to be a leading startup providing world-class products and services for the Indian market, with a focus on student teams and automobile startups in Mumbai. The company's mission is to deliver a better future to the next generation with the excitement and safety of traditional manufacturing, utilizing Industry 4.0 for a wide range of operations and optimum quality.

05:01

📈 Marketing Strategies and Financial Projections

The marketing strategies of Starcus Engineering Works include publishing engineering blogs, sponsoring Motorsports events, conducting workshops, and using promotional tactics like referral codes and advertising through various mediums. The company's revenue projection for the first half of 2020 was 2.59 lakhs, with an estimated increase to over 5 lakhs in the second half, largely due to a partnership with EV startup Sony. Future revenue projections for 2023 are around one crore, with 60% from startups and 40% from student teams, and for 2024, the projection is 1.6 crores, with a 75-25% split respectively. The company also discusses potential equity exchange for funding to expand operations and acquire advanced machinery.

10:01

🔍 SWOT Analysis and Future Expansion Plans

Starcus Engineering Works performs a SWOT analysis to strategize their business. Their strengths include a strong network from Motorsports history and the growing automobile industry. Weaknesses are identified as the impact of the pandemic on the industry and the need for mass production techniques for profitability. Opportunities lie in strategic alignments with potential customers and the current market's unreliability of products. Threats include intense competition from existing players and industrial hazards. The company plans to expand by offering 10% equity in exchange for 1.5 crores, which will be used for business expansion, acquiring advanced machinery, and investing in inventory.

15:02

💼 Investor Pitch and Discussion on Market Position

The team from Starcus Engineering Works presents to potential investors, highlighting their first year in business and their experience as a Motorsports team. They discuss their market understanding, the gap they aim to fill in the industry by providing transparent and reasonable rates, and their plans to manufacture for upcoming startups. The company is seeking 1.5 crores in investment, offering 10% equity in return, and discusses their valuation based on the potential of their network and assets. The conversation with investors also covers the company's current business volume, signed deals with startups like Solai and D Express, and their ongoing negotiations with other entities.

Keywords

💡Automobile Manufacturing

Automobile manufacturing refers to the process of producing automobiles, including designing, developing, assembling, and testing of motor vehicles. In the script, the company Starcus Engineering Works is focused on providing solutions in this sector, aiming to address issues like the lack of advanced technology and skilled labor, which are critical in the manufacturing process. Their goal is to offer a one-stop solution for vehicle manufacturing, emphasizing the importance of this industry in their business model.

💡Industry 4.0

Industry 4.0 is a term used to describe the current trend of automation and data exchange in manufacturing technologies. It includes cyber-physical systems, the Internet of Things, cloud computing, and cognitive computing. The script mentions that Starcus Engineering Works can provide a large variety of operations with optimum quality due to Industry 4.0, indicating their use of advanced technologies to enhance their manufacturing capabilities and efficiency.

💡Skilled Labor

Skilled labor refers to workers who have undergone specific training or have acquired expertise in a particular field, which is essential for high-quality manufacturing. The script highlights a shortage of skilled labor in the automobile manufacturing sector, which Starcus Engineering Works aims to address by providing reliable and skilled manpower, emphasizing the importance of human capital in their operations.

💡Material Monopoly

A material monopoly occurs when a single seller or a group of sellers controls the supply of a particular material or resource, leading to a lack of competition and potentially higher prices. The script mentions a material seller monopoly as one of the problems in the industry, which Starcus Engineering Works seeks to counter by offering a one-stop solution that includes material procurement, thus aiming to break the monopoly and provide more competitive pricing.

💡Lead Times

Lead times refer to the duration between the placement of an order and the delivery of the finished product. In the script, the issue of high certainty due to long lead times and material unavailability is mentioned as a problem in the industry. Starcus Engineering Works aims to provide a fast response time, suggesting that they are focused on reducing lead times to improve customer satisfaction and efficiency.

💡Marketplace

A marketplace is a platform where buyers and sellers come together to exchange goods and services. The script describes Starcus Engineering Works as a startup focused on creating a marketplace for manufacturing solutions and material procurement, indicating their intention to facilitate connections between various stakeholders in the automobile manufacturing industry.

💡Motorsports

Motorsports involve competitive sporting events involving the use of motorized vehicles. The script mentions that Starcus Engineering Works has a history with Motorsports, which has contributed to their network and understanding of the industry. They aim to leverage this background to build trust and connections, which is crucial for their business strategy.

💡Revenue Projection

Revenue projection refers to the anticipated income that a company expects to generate over a specific period. The script provides revenue projections for Starcus Engineering Works, including estimates for the first half of 2020 and future years, demonstrating their financial goals and the growth they anticipate as they expand their business.

💡SWOT Analysis

SWOT analysis is a strategic planning tool used to identify a company's strengths, weaknesses, opportunities, and threats. The script mentions that Starcus Engineering Works has performed a SWOT analysis to devise a successful strategy for the future. This analysis helps them understand their position in the market and plan their actions accordingly.

💡Deep Dive Topic

A deep dive topic refers to an in-depth discussion or analysis of a specific issue or problem. In the script, Starcus Engineering Works discusses a hypothetical situation where a vehicle faces an engine overheat issue, and they provide a detailed analysis of how they would address both the technical and brand-building aspects of the problem, showcasing their problem-solving approach.

💡Investment Proposal

An investment proposal is a formal request for financial support in exchange for equity or other forms of return. The script includes an investment proposal from Starcus Engineering Works, where they offer 10% equity in exchange for 1.5 crores of investment, detailing how the funds would be utilized for business expansion and machinery acquisition.

Highlights

Introduction of Starcus Engineering Works as an automobile manufacturing solution provider.

Identification of industry problems such as lack of advanced technology, skilled labor shortage, and material monopolies.

Provision of a One-Stop solution with reliable and skilled manpower for vehicle manufacturing.

Emphasis on Industry 4.0 for a variety of operations with optimum quality.

Introduction of the founding members: Sahil Singh (CEO), Shubham Maurya (CTO), and Tanmay Salaunkhe (CMO).

Company's mission to deliver a better future with traditional manufacturing's excitement, experience, and safety.

Vision to be a leading startup developing world-class products and services for the Indian market.

Initial target market focus on Mumbai-based student teams and automobile startups.

Marketing strategies include engineering blogs, Motorsports event sponsorships, and college workshops.

Revenue projection for 2020, with a significant increase in the second half due to a tie-up with EV startup Sony.

Future financial predictions for 2023 and 2024, with a focus on partnerships and market expansion.

Offering 10% equity in exchange for 1.5 crores for business expansion and machinery acquisition.

Worst, realistic, and best-case scenarios for company growth and revenue.

SWOT analysis highlighting strengths, weaknesses, opportunities, and threats.

Deep dive topic discussing a challenge of engine overheating and the company's technical and brand-building responses.

Introduction of the company website and customer portal for order placement and grievance redressal.

Investor query response regarding the company's market experience and competition analysis.

Discussion on the company's valuation and the rationale behind the 1.5 crores funding requirement.

Transcripts

good afternoon to all the judges onto

the panel hello everyone we are from

starcus engineering works we are an

automobile manufacturing solution

provider we started our company seeing

the business opportunities in this

sector which had many problems that we

intend to solve

while we are manufacturing our ATV we

found out that there was a lack of

reliable advanced technology and most of

them SMS was stuck in Industry 2.2 phase

and that was acute shortage of skilled

labors also there is set material seller

Monopoly and mistress regarding the

genuinity that is also the high

certainty due to the long lead times and

material unavailability

so why us soccer's engineering Works

provide One-Stop solution for the

manufacturing of the vehicles with the

reliable and skilled manpower to provide

a fast response time there is no minimum

order and we provide the standard rates

for the specials part and with the

industry 4.0 we can provide large

variety of operations with the optimum

quality

moving forward now let me introduce to

you my thing sahil Singh as the CEO

shubham maurya as the CTO here as the

CEO and tanmay salanke is the CMO we are

the four founding members of the starkas

engineering works

now let me tell something about us

we are a startup focused on creating

Marketplace

to deliver manufacturing Solutions and

material procurement for Motorsport

concentric teams and startups becoming

the successful startup of One Stop

solution company is our main motive the

mission of our company is to deliver

better future to Next Generation with

same excitement and experience and

safety of traditional Manufacturing the

vision of our company is to be leading

startup for with an aim to develop and

maintain a world-class products of

services

for the Indian market

moving forward

for our initial target market is Mumbai

based student teams and we would also be

manufacturing for various automobile

startups the contribution of student

teams is more in the initial stage but

gradually we will be shifting our Focus

towards the industries

marketing moving forward

now let us talk about our marketing

strategies

marketing plays an important role in

growth of any Enterprise

so our marketing strategies include

publishing engineering blogs similar to

the engineer and interesting Engineers

Etc

we also intend on sponsoring Motorsports

event and teams we would also conduct

workshops and exhibitions in colleges

and other Institutes

our strategy to our strategy also

includes promotional marketing strategy

by providing referral codes and coupons

also advertising by Flyers posters

stickers and merchandise

sorry uh now coming towards this year's

our Revenue projection in the first half

of 2020 our total revenue generated was

2 lakh 59 440 and our second half of

2020 Revenue projection will be

estimated over 5 lakhs now the

escalation of second half Revenue

projection is possible because of our

tie up with EV startup called Sony so

Sona is an EV startup which is founded

in the year 2020 in the first half we

have already supplied them with material

for the prototyping phase and further we

have signed a contract of manufacturing

of 50 cases which will be delivered uh

in the second off of 2020. now coming

towards the future predictions of our

company

now the financial future predictions

would be so in the year 2023 our Revenue

projections would be around one crore in

this 60 would be contributed to startups

and 40 percent would be contributed

through uh various uh student teams and

in this uh and in this year uh sorry in

the next uh year that is 2024 our

Revenue projections would be around 1.6

crores and wherein it would be 75

percent contributed through startups and

25 percent would be contributed through

student teams now the sudden boost in

the revenue is possible due to the

partnership with Sony and also we have

finalized our deal with d Express which

is an commercial EV startup which

produces two wheelers and we are also in

talks with polar electrics further

further expansion now moving forward now

further further expansion of our

business uh with automobile stuff uh

automobile startups we offer you and 10

percent of equity in exchange of 1.5

crores of our company so the 1.5 crore

that we are asking will be utilized

towards the expansion of our company and

uh acquiring Advanced machineries which

would cost around 55 lakhs and around 25

lakhs would be invested in the inventory

so uh moving forward

that would be continued by super maurya

so for any business there are potential

outcomes which are evidently worst case

scenario a realistic scenario and a best

case scenario so our worst case scenario

would be that we are still dealing with

only student teams and generating

revenue of about 25 lakhs to 30 lakhs

our best case scenario would be that we

become Market Leaders with 100 crore

plus in rarely yearly Revenue

but our business is based around

realistic scenario that is we become

uh we we become a business who generates

two to three crore of yearly uh Revenue

next please

to help us analyze what a company does

best now and to devise a successful

strategy of the future we need we have

performed a SWOT analysis

so we found out that our strengths are a

huge Network

as a result of Motorsports history

also ever-evolving automobile industry

and its ever increasing demand

moving toward our weaknesses due to the

pandemic the growth of the automobile

industry suffered a huge hit and also

there are low margins in this sector so

to gain a profitable business a mass

production technique is required

our opportunities are making strategic

aligns with the potential customers

the current situation of the market is

unreliability of the product and we

consider this as an opportunity

talking about the threats

intense computation due to existing

players in the market is one of the

threats and also industrial hazards like

industrial accidents is also on one of

the threats to our business

uh next please

so coming towards our Deep dive topic so

let us consider the situation where a

company faces a challenge that a vehicle

is produced by any company are facing an

engine overheat issue resulting in poor

performance

and driving discomfort so

uh our take towards the problem would be

in two parts which are Technical and

brand building so technical counter

would include

gravians literacial portal on our

website so that is a special section for

grievance reversal from where the

customers would launch their complaints

and issues towards our company

we would also schedule a recall from the

problematic vehicles

we would offer them re-tuning of the ECU

for reducing the engine overheating and

also increase the performance and riding

comfort

we would replace the radiator fans with

a bigger one if necessary and continue

our RND on cost effective methods for

reducing the issue

the damage control measures would

include brand building techniques

by sincere apology and acknowledgment of

the issue and running marketing

campaigns to reassure customers about

our Brand's reliability

we would also conduct rigorous testing

and conduct third party technical audits

so this was our deep type topic I would

request tanmar to show our website also

where we can show the uh

uh we can show the customer portal from

where the customers would launch their

complaints

foreign

from where from where any customer is

able to place their orders and know

about our company and also our history

so similarly uh we can see there is uh

and uh

there is an equivalent section on the

top in the concept contact us contact us

section from where uh it is anyone is

able to contact our company and we are

also seeking funding to improve uh to

improve and better manage uh our web

portals

and I'll hand over further to uh

so the investors are you interested in

joining the hands with us we as a Star

Plus Engineering Works welcome you thank

you

thank you team uh before we say anything

to your investment proposal we would

like to know more of on these points

most of the things you have covered uh

for us and you explained very well just

let me know for how many years you are

already in the market I mean which year

you establishing

sir I would like to take this question

so uh actually we started our business

in this area so previously we uh as we

are a Motorsports team we used to gather

purchased of material in bulk for by

contacting various teams so that way we

used to like get discounts but this year

we thought of uh making it a

professional thing and uh starting up a

company so from this is the first

official year for uh starting up

business

okay do you have any idea of your

competitors how many competitors are

there in your maybe state

uh yes sir uh we have actually prepared

a list uh that is uh

if uh yes you can uh say about that

oh yes sir so for the market that we are

going to step in uh in Mumbai region

itself there are about four to five big

big players uh that are running the

market right now and other than Mumbai

uh there are players that uh that are

from Indore jabalpur Jalandhar uh Delhi

Noida ghaziabad Etc these are not in

Mumbai but uh due to their vast Network

they are also dealing in Mumbai so we

are planning on setting up our base in

Mumbai itself in rabale

okay so have you analyzed their market

cap based in I mean if we deal in Mumbai

Mumbai and nearby teams so do you uh man

did you make any analysis of their

market cap and the possibility of your

uh

uh sir I would like to take that

question sir actually uh the reason why

we have started this business is

actually our end goal that is uh meeting

up the uh so the real thing is uh we

have to make a company that that is a

manufacturing company which we would

manufacture for the upcoming Star

startups so this uh the reason why we

are starting up with teams is that we

first of all build a connection with the

teams and gather information about them

and it is the trust building that we are

doing uh so that eventually uh one day

or the other the members of the teams

would eventually get placed in a startup

or have their own startup so which would

definitely benefit us and uh the market

Capital Market of our uh start uh of

actually the manufacturing segment

automobile manufacturing segment is

about 80 billion dollars so in which

around five percent contribute towards

the upcoming startups so it is around

say 4 billion dollars of market so which

is the real potential where we want to

actually get in

uh sir I would like to be talking about

a big current situation I mean what is

your state I mean what is your scope at

present uh sir I would like to continue

sales statement uh sir being a star

being a Motorsports team coming from a

Motorsports team we had a uh we had a

background idea about what is the market

because we had to roam in the markets to

get the things for ourselves also so we

we know that what types of difficulties

we faced during the manufacturing of our

ATV so we intent on stepping into the

market with the solutions of this

problem only and not and I'm not saying

that uh adult other companies are not

providing the solutions so usually what

it takes that if there is a beginner

team then uh there is uh means the team

members have no idea of certainly how

much that uh product May cost or what is

the Machining cost or uh it is all up to

the companies that are providing the

services so usually sir what happens

that if let us consider an example if

one one piece is uh is to be machined

and they are giving a cost around of

2500 for that job itself including the

material and the job actually uh con uh

the making cost of that part is only

around eight eight hundred to nine

hundred then this is a blind uh Blind

Side for the team so we intend on uh

decreasing this Gap and being honest to

our customers and not only customers as

being a Motorsports team we have our

connections in Motorsports team as well

so we intent on providing Solutions with

a better feed rates and uh reasonable

and standard rates

all right now my next question would be

uh about uh your investment

um can you open that slide please that

proposal

okay uh so you are looking for how much

are 1.5 CR

1.5 CR and uh in return you are giving

25 years

ten percent

okay but we are willing to invest way

more than what you are asking but we

want the decision making capability in

the company

uh

actually sir I would like to take that

question

sir uh as you can see that uh we have 25

equity in our businesses uh each founder

so each founder has also invested their

own money in the company that is around

a one point one point two to one point

four pros of the total funding so we uh

we have started this business uh we have

started and we are operating this

business uh with this funding and also

we have a very huge network uh with the

clients and also the manufacturing

providers due to our history so we can

we can see that uh so you can also see

that we uh we have the uh we can say the

main

objectives that are required main

objective and means of running the

business so we think and also only our

fund requirement is about 1.5 CR as for

as you can see for purchasing some

machineries inventory and uh inventory

and machinery and others at a minor

costs so what is the evaluation of your

company

sir correct valuation is a 15 crores

how did you do that

uh sir we uh we understood the potential

of our networks networks and also we

have we had assets uh how much how much

business have you done

uh I mean

I would like to uh answer that question

since it is just six months that we are

into the business sir uh we have

actually made around

2.56 uh lakh rupees of business

currently

but sir uh there is also that since now

we have signed a deal with solai and

also D Express and we are also in talks

with various startups this is also a

main reason for an increase in our value

uh company's values

okay okay