MANIPAL UNIVERSITY

SCHOOL OF MANAGEMENT
MANIPAL

SUBJECT: LEGAL ASPECTS OF BUSINESS

TOPIC: BUSINESS PLAN
(MANIPAL TAXI AND LOGISTICS Ltd)
GROUP NO. 4

PRESENTED TO:
Prof: NAVIN KUMAR K

NAME

REG NO

RAVINDRANATH B K

151202017

PRAANESH
RAGOTHAMAN
DENISE CHANG

151202020

TEJASVINI SHETTY

151202026

SANDEEP RAMANA
PRABHU
GANESH NAYAK

151202028

151202023

151202030

GROUP MEMBERS

1. INTRODUCTION:

Manipal Taxi and Logistics is a Manipal based company, set up

with the main motto of providing reliable, timely, safe, comparatively cheaper
and premium taxi and courier services.
Taxi services will be provided in and around Manipal, Mangalore
and Udupi. We also facilitate long distance travels to Goa, Bangalore, Calicut
and Tamil Nadu on prior booking of maximum one week. The taxi services will
be provided via application booking, which is a simple application available on
3 platforms (Android, Apple and Windows). Customers can use this application
to book their taxis from their doorstep to their particular destination. When
compared to the auto services our taxis are reasonably cheaper and provide
service at your doorstep. At present there are no taxi service providers who
provide online booking service in and around Manipal. At present Make My
Trip handles this facility.
Manipal Taxi service is unique in its own ways. We provide
Wi-Fi facilities in our cabs for customers to use. We also provide card payment
methods. We will also be concentrating on providing entertainment systems in
our taxies so that the customers can get a premium and better travel experience.
Different classes of vehicles, i.e.; Mini, Sedan and SUVs are available for
making the customers avail different vehicles as per their requirements.
PINK CABS, a new concept which is introduced especially
for ladies, in which women will be the drivers for the cabs. This concept is
introduced with the intention of women empowerment.
Along with the taxi service, Courier service will be started in
an innovative way, where the courier package will be packed and picked from
the customers door step and delivered to the given address safely and on time.
In this service also the customers are given an option of card payment
(debit/credit). The service provide will a premium one and comparatively cheap
to the other service providers. No courier service provider collect the package
from the customer door step. Also as an introductory offer the first courier will
be delivered at free of charge (T&C).

2. EXECUTIVE SUMMARY:

The companys strategy is to build reputation in and around

Manipal and Karnataka, Kerala and Goa. With the availability of the latest
technology and using them to the maximum extent, such as installing GPS in
cars, providing card payment options, making the package secure e-signature,
tracking facility, allowing the customer to access the dispatch details on
the APP, E-invoice, etc.
The company ensures of hiring good, experienced drivers,
employees capable of handling app as well as calls and back-end process.
Registering the company as per the rules and regulations of Government of
Karnataka. The company promises to keep all the taxis and courier vehicle well
maintained, clean and inspected all the time. The companys initial aim is to
survive in the market with a good share for the upcoming year. The long term
objective will be to gain control over the Taxi service in the coastal region of
Karnataka and Kerala.
When it comes to the courier service, the company makes sure the
courier will be delivered promptly. Also helping customers track the package
and reduce their work in packing and carrying it to the courier office.
Correct background checks will be performed with respect to
hiring the drivers and special benefits will be provided to women drivers to
encourage them
No individual taxi service provider in this locality.
Cost of travelling to short distance places is costly in autos.
Example Udupi to Manipal travelling in auto will cost Rs.100.
No courier service company is picking the packages from the customers
door step.
Use of the latest technology is not found in any local taxi service provider
or in any courier service provider.
Also merging taxi and courier service together is a new concept.
From all these findings the company has planned to start up its
business so that the customers will be truly happy and feel safe to travel in
our taxi and send their packages safely through our courier service.

2.1 OBJECTIVES:

The companys objective is to survive in the market condition of

Manipal for the present year. Gain market for the courier service. Minimizing
the transaction cost, utilizing the available resource to the maximum extent.
Also the long term objective is to be the top taxi provider in the cost of
Karnataka and also to expand the market to other parts of India.

2.2 MISSION:
The mission of Manipal Taxi and Logistics is to provide reliable,
safe, timely, premium taxi and courier service to the customers. Also utilizing
the latest technology available to the maximum extent to reduce the efforts of
the customers.

2.3 KEY ASPECTS TO BE NOTED IN MANIPAL TAXI AND

LOGISTICS:
Latest technology used: G.P.S, Credit/Debit card swiping facility,
booking, tracking the taxi or the package on the Application, e-invoice
etc.
Registration as per the rules and regulations of Government of Karnataka
transportation department.
App for booking the taxi or courier service is a new concept in this
region, which will be beneficial to all the people and especially the
students.

3. MANAGEMENT SUMMARY
In this business taxi cabs are owned by the company, so the top level
management people are responsible for trading of vehicles.
3.1 Business Structure
M.T.L Ltd will be a partnership firm where partners invest their money as a
capital. In addition to it we will be applying for bank loans. Taxi service will
cover areas of Manipal, Udupi and Mangalore. At the beginning we are not
concentrating on a large amount of profit. We are just starting up the business
with some student friendly plans where students are charged less. Students can
show their college ID to get the discount.

To make the trip more comfortable we are providing some facilities to our
customers. They are
i] Air-condition
ii] Wifi network
ii] Television
iii] Drinking water
iv] Radio and Music systems.
v] News Paper and Magazines
Passengers can make payment either by cash or by card.
Cab services are controlled and managed by the Head Office itself. Cab drivers
can earn commission by bringing customers of their own contacts. In this way
drivers will be motivated to bring the customers and earn commission as well.
Business can be developed by these kind of policies.
Service and Repairs of Vehicles
All the taxies will be serviced once in a month. In the case of emergencies it
will be repaired immediately. For the smooth running of cabs as well as
business cabs will be inspected regularly by the mechanics.
Logistics will be undertaken in 5 different states. They are Karnataka, Tamil
Nadu, Kerala, Andhra Pradesh and Telangana.
Total 10 regional offices will be setup in these states for the smooth
movement of the business.
4 Regional offices in Karnataka, 2 in Kerala, 2 in Tamil Nadu, 1 in
Andhra Pradesh and 1 in Telangana.
Parcel will be taken to the respective regional office and distributed to the
door step of the customer by two-wheelers [two-wheelers are not owned
by the business].
We are buying second hand vehicles for logistics.
Initially the company has planned to handle the courier service up to 15
Kgs per customer.
Packaging of couriers will be done in front of the customer. Also Bar
Code will be provided to the customer to track the package.
STRUCTURE OF REGIONAL OFFICES
For every regional office there will be an office assistant, two delivery boys and
security. Head office will be established in Manipal only. Delivery boys will be
recruited from respected places where the regional offices located. Along with
monthly salary, fuel expenses will be given to delivery boys.

Office
Assistant

Delivery
Boys

Securit
y
Guard

Recruitment Policy
A good recruitment policy is a must for success of a business. Some strict rules
are to be followed for selection of eligible candidates.
Selection of Drivers for cabs
1. Candidates must have driving license
2. Minimum qualification of SSLC
3. Health Certificate
4. Background of the candidates will be referred
Delivery Boys for Courier Service
1. The bike should be owned by the candidate with clear documents
2. Repairs and service charges of the bike will not be provided by the company.
Only fuel charges will be given.
3. Candidate should be native of respective region as it is necessary that he
should be known about places.
Office Assistant
B.com or BBM Graduate
More preferences will be given to the experienced people
For security guards we will be doing an enquiry about their background.
Regional office working hours would be 7 Am to 6 PM. Parcels collected will
be dispatched on the same day. Organization will be small and clear. All
regional offices will be in connected with the head office which is located in
Manipal. Every week the office assistant has to be submit the business report
every week. It is the responsibility of regional manager.

4. MARKET ANALYSIS
Marketing is about communication the value of a product, brand to customers
for promoting or selling services or brands. As we are entering first into the
Manipal market we are going to use market analysis and market segmentation.
Market analysis: market analysis is to determine the attractiveness,
strength, opportunities, threats and weakness. It is a basic things we
should as an Entrepreneurs should do. In our business we would consider
the following elements which are very much important before entering
into any business:
Market size: the market size for the taxis business would be in and
around Manipal, Udupi, Mulki, and Mangalore, Bangalore, and goa on
weekends, prior booking of one week is to be done.
The market size for logistic business is around south India as a startup.
Market trend: As from critical analysis of market we have found that
there are rickshaw and taxis available but they are charging more but as
comparison with them we are charging less.
As from critical analysis of market we have found that there are many
logistic in south India but as comparison with us we are charging compatible
less.
Market growth rate: As there are less competitors we are expecting high
growth rate we are expecting medium growth rate for taxis business. In
initial year we are expecting 10% of the growth rate and then after 20 %
respectively.
As there are less competitors we are expecting high growth rate we are
expecting medium growth rate for logistic business. In initial year we are
expecting 10% of the growth rate and then after 20 % respectively.
Market opportunity: As we are offering something new to the
passengers such as PINK CAB designed especially for women it would
be great opportunity for women passengers and for us too. The women
passengers would feel of BEING SECURED.
As we are offering something new to the passengers such as PICK UP AND
DROP FACILITIES designed especially for BUSY PERSON, OLD AGE
PEOPLE it would be great opportunity for customers and for us too.

 Market profitability : As we are doing something new that is providing

logistic and taxis business under one roof so we are expecting nominal
profit in initial stage and then after we are expecting above nominal
profit.
Distribution channel: Our distribution channel would be UP TO DATE
as we are making use of modern services such as WIFI for taxis business
and pick up and drop facilities for logistics.
Success rate: The success rate in present day which is prevailing in
market we are expecting that our taxis business and logistics business
would be fine.
MARKET SEGMENTATION: For this we are segmenting our market into
Geographic and Customer behavior:
Geographic segmentation: In this we are segmenting our taxis business
into 4 main part Manipal Udupi, Mangalore, Bangalore, Goa (Prior
appointment of 1 week is needed)
For logistic business we are targeting our entire south India.
Customer behavior: In this we are targeting our entire market according
to the needs of customers.
a. Gold: This would be especially for the customers who like to travel
alone. And for logistic single parcel will be delivered.
b. Silver: This would be especially for the customers who like to travel with
one another company and parcel would be delivered in groups of two.
c. Bronze: This would be especially for the customers who like to travel in
groups and entire lots will be sent once.
d. Pink cab: This is solely for the women who feels that they are unsecure
in the world.

5. IMPLEMENTATION
For a startup we will purchasing ten cars for taxi service and five cars for
courier service. The price for taxi service will be different and much cheaper
when compared to the other taxi service provides and the autos. We will be
providing different cars for the customer with different taste/preference.

We will be providing three types of cars:

MINI
SEDAN
MUV
The cost of travelling is also cheap.
i.e.
1. Rs.60 for 4Kms and Rs.10/-Per Km for Mini
2. Rs.80 for 4Kms and Rs.13/-Per Km for Sedan
3. Rs.100 for 4Kms and Rs.15/-Per Km for MUV
All these three cars can be booked through simple app without a need to call or
wait. The booking will be processed soon and the cab will be available within
minutes of the customer booking.
The application is as simple and even a less educated person can book.
Even booking are accepted through phone calls also. Booking prior to 1 day is
also accepted for long travels. Payments will be collected through cards and
cash. Card swiping facility will be made available so that the hard cash
transaction will be reduced and also with the motto of providing flexibility to
the customers in making payment.
The customers will also be availing certain new facilities, which most of the
taxi services are not providing. In our taxi services we will provide facilities like
Wi-Fi while travelling, e-newspaper, 7inch LCD entertainment system and
Mineral water.
All these facilities will be provided with same price. Except the Wi-Fi which is
free for 1st half an hour and charged Rs.5/- for every half an hour more.
Logistics service will be made available in five states of South India for a
startup, Where the package will be picked up from customers place and
delivered to the destination with security and timely. As there are Regional
office setup in Bangalore, Belgaum in Karnataka, Chennai in Tamil Nadu,
Kochi in Kerala, Hyderabad. As we are startup we will tie up with local courier
companies for delivery of courier.
The courier charges will be Rs.20 for up to 250 Grams of packages and
Rs.20 will be added for every 250 Grams. Also the charges vary if the package
is for other states. Security will be providing though attaching bar code to the
package, which helps in tracking the package and also the delivery will be made
in fastest and timely way.

5.1 SALES STRATEGY

TECHNOLOGY

Technology is very important in the current scenario, without technology the

company is incomplete. Technology in the workplace allows businesses to
expand quickly and efficiently. With business technology, companies can target
a wider customer base and grow to higher levels.
APP
Previously, when customers used to book a taxi they use to call particular taxi
service to book a cab, and it has been seen that no one pick up the call, so we
have included app facility where a customer can book the taxi through app
which can installed in there smartphones which will be available in all there
forms i.e. android, IPhone and windows
Credit/Debit Card
In the business for payment customer can pay in cash or through credit or debit
card which is often used by consumers/customers. As cash is in the form of
liquid, but as credit card is used by many of the people. It has been proved that
90% of people use the credit card for their business trips. And acceptance of
these cards is an advantageous position from the side of customer.
Debit Card is that the company will directly debit the particular amount through
bank and credit it to business account. Payment through Credit/Debit Card is
acceptable only on minimum bill of Rs.300 for the taxi and logistics services
provided by company to its customers.\
Entertainment System
7Inch LCD entertainment system is attached behind the front seats of the car,
where the customer will get to watch the movies or can listen songs or can read
e-newspaper. Customers are provided with Bluetooth headphones sync with the
entertainment system.
Global Positioning System (GPS)
It is a system to track the cab. This system helps us at the time of
the booking the cab, so that we can track the cab and now its compulsory
by the government that every cab has to have a GPS system to insure the
customers safety especially women travelers. Government has a policy
that until or unless GPS is not installed, taxi will not get permit or
certificate. GPS helps in all emergencies.

REGISTRATION
All the registration process to all the taxis will be done as per the
rules and regulations of Karnataka State Transportation Department. Also the
company will be registered, so that there will be no problems arising in future.

Proper Insurance policy will be availed so that at the time of the risk there will
not be too much of loss. Along with the taxi service, the courier service will also
be registered as per the municipal council of Manipal. All the drivers license
will be provided to the council.
INSURANCE
It is compulsory to have vehicle insurance before using or keeping
a motor vehicle on public roads. It gives a security to cars which will be used
for our taxi and logistics business.

5.2 COMPANY STRATEGY

The Manipal Taxi and Logistics ltd strategy is to acquire the
market with the Ads in Newspapers, Pamphlets and Announcement in radio.
Our strategy is to build relationship among the customers so that business will
automatically expand. The frequent customers who will use our taxi and
logistics services, the company will provide a good offer or discount, so that the
customers doesnt change their preference or the choices. Many of the taxi
services offer taxi services at midnight but they wont come up, so its a
disappointment for the customers, but in our business it wont happen we
provide service 24/7 and there is no midnight charge, the tariff is as same as day
travel. Customer can rely on us. In the basic meaning customers are the root of
the business, they are there that is why the business is running and it will get
expanded. Our service will also get expanded. In future we will provide pick
and drop service to the employees of the particular firm which will have
contract with us.

5.3 MARKET STRATEGY

We cant expect people to use our service immediately, we have to
give them exciting services so that they are compelled to use our service and
that too for a long period of time. We have to build our strategy in such a way
that the customers are happy in the service they receive from us and to get less
complaints as possible. We will have to uphold our company name.
Being a taxi provider, our main target is to attract as many
customers we can get by providing them with the best service possible. To keep
our company amongst the top companies we will work on the feedback given
by our valued customers. We will try our best to keep our customers happy and
satisfied.
Along with taxi service we are also providing Courier service
which is unique in its own way. We will be providing equal employment

opportunities to men and women. Our foremost strategy is to remain at top

inspite of competition and satisfy our customers requirement. Our services will
be functional in South India.

MARKETING PROGRAM
As we want everyone to know about our business we will spread
it through every kind of advertisement possible. We want all the people of South
India to know about our business and use our service frequently.
i.

ii.

iii.

iv.

v.

Word of Mouth-Word of mouth advertising is important as with one

happy customer they can send the information to others customers. We
will be putting our reputation at risk as the customers will make
recommendation to those people who they know to use our service.
Event marketing-We will be collaborating with companies who does
event shows and tell them to advertise about our business in their shows.
In that way more customers will know about our business.
Freebie marketing-The main idea of freebie is to lure customers by
providing them free ride on their first service or at discount rate. We will
promote our business by giving everyone free ride on their first service.
Direct marketing-Through direct marketing we can spread information
about our business by sending mails, telephone calls, brochures,
hoardings, pamphlets. We will be having direct interaction with the
customers not through any third person.
Social media-We will be advertising our services on social media too
such as Facebook, twitter, google+. Social media is a great platform for
advertising as almost half the worlds population people are on various
social media site.

5.4 COMPETITIVE EDGE

The market is growing immensely in India. Along with the market the
competition also increases. Any small scale or a large scale industry has
to face competition. Assuming the same we have listed down a few points
we consider as competition.
Any company with bigger investment that enters our market would
prove to be of high competition.

 If any big taxi service companies like OLA or MERU starts up its
business in Manipal it would be of high competition to us since
they have a very good reputation.
Competition with these big companies would provoke a price war.
Already existing small scale companies would not want to tie up
with our services over big players.
Since we have two services working simultaneously there will be
high competition from both the areas hence our overall competition
will increase.
Technology can be different with competition and hence need to be
up-to-date.

6. FINANCIAL STRATERGY:
Finance is a very important aspect for any business. Planning and
strategizing the financial aspects is very crucial for a business to succeed. This
helps in understanding the investments needed for the business along with the
profit loss and expenses that the company has to face.
The company needs an initial investment of Rs.20,00,000/- which will be
capital provided by the owners of the company. This investment will be used in
purchasing vehicles for the taxi and logistics service, setting up the head office
in Manipal and regional offices.
Breakup of the initial investment:
- Rs.800,000/- Down payment for 6 cars.
- Rs.600,000/- Purchase of 5 second hand cars for courier service.
- Rs.600,000/- Office set up and deposit for regional office and
application development and maintenance of the application.

Apart from the owners capital investment into the business, 4 owners
would be investing 4 cars as personal assets into the business and they would
own more shares compared to the other owners in the business.
INVESTERS

CAPITAL

ASSET

Denise
Praanesh
Ganesh
Sandeep
Ravi
Tejasvini

INVESTMENT
Rs.2,50,000/Rs.2,50,000/Rs.2,50,000/Rs.2,50,000/Rs.5,00,000/Rs.5,00,000/-

INVESTMENT
Tata Nano
Tata Indica
Tata Indica
Tata Indigo
-

From the above details we will have a total of 10 cars. 6 would be

purchased via bank loans and the other 4 would be invested by the owners.
A total of Rs.60,00,000/- will be invested all over in the business.
Owners will be investing a total of Rs.20,00,000/- and the remaining amount
will be taken in the form of bank loan, which would be repaid through
installments of Rs.80,000/- per month.
On mere assumptions if on average all the taxis run smoothly per
day, the income would come up to Rs.18,000/- per day. From the above
amount deductions are made for drivers, fuel expense and servicing. On an
average the total earnings and savings are as mentioned below.

PARTICULARS
Taxi income
+ Logistics
Total
-Fuel/Repairs
Total
-Salary driver
Total
-EMI
Total
-Office rent
Total
-Delivery boys and office employee
salaries
Total
-Other expenses
Net earnings per month

AMOUNT
Rs.5,40,000/- (approx.)
Rs.1,50,000/- (approx.)
Rs.6,90,000/Rs.1,50,000/- (changes from month
to month)
Rs.5,40,000/Rs.1,50,000/- (25% of income)
Rs.4,10,000/Rs.80,000/Rs.3,30,000/Rs.70,000/Rs.2,60,000/Rs.1,50,000/Rs.1,10,000/Rs.30,000/Rs.80,000/-

The above mentioned amounts include both taxi and logistics service. As
a startup it may seem to be less, but as the business expands we intend to
improve our business and optimize the profits.
Our primary motive is to provide best service to our customers and profit
of our company would take a secondary position.

7. RISK FACTORS:
Every company has to consider few aspects while planning for the
business. Risk factors are one of the aspects that need to be looked upon. With
the growing market, risks each business has to face also increases. Knowing the
risks that the company has to face can help in analyzing the business in deep
and strive towards reducing the risks.
Starting up a new business with a new concept can be very risky. At
present people in Manipal and Mangalore travel using public transport
like government buses and private buses. There are risks many people
might not opt for our taxis.
Travelling cost through bus and taxi can be the same only if the fare is
shared amongst 3-4 people. This is could be a reason for students to not
opt for our taxi service.
While travelling through our taxis charging more for the customers
luggage may be a risk faced by our company.
Taxi service is our prime motive and if the taxi services are hampered
then there are good chances of effecting our logistics service.
At present it is very difficult to find the workforce in and around Manipal
and Mangalore. If the demand increases finding workforce in the future
would be difficult.
With the expected increase in demand of our taxi and logistics service the
demand for more vehicles would also increase which would increase our
capital cost.

 Assuming that our business might not pick up as expected promises made
to our employees would not be met. Which would affect our employee
goodwill.
Our business is starting at a small scale hence the profit would be seen on
a long term.
Since we have applications and card payment systems we intend to target
a educated group of people and this would add to our marketing budget.
One of our main specialty would be providing a safe convenient and
faster service hence premium is charged which can act as a dampener.
As we are providing online booking systems through applications on
different platforms maintenance and upgradation of this application could
be cumbersome.
Safety of our customers as well as packages is our prime motive and
hence we would need to provide a tracking device into our vehicles which
will add to our expense cost.
Our business is a people dependent business hence there are very high
chances of risk of partiality and bad mouthing.
Our motive of marketing through advertisements need to be more direct
and impactful.
Fuel prices keep increasing this would have a adverse effect on our taxi
and logistics pricing.
Introducing a new concept of PINK CABS in Manipal security of our
women employees and customers would be very crucial.

8. CORPORATE SOCIAL RESPONSIBILITY

As our business is a part of our society we shall follow some corporate social
responsibility towards society and employees:
A. Health checkup of family members of drivers.

B. Health and safety of customers.

C. Equal opportunity for both men and women drivers.
D. We will try to use emission free vehicles.

9. FUTURE BUSINESS PLANS

A. EXPANSION OF MARKET: WE will be covering enter Karnataka for
taxis business and for logistic we will cover entire India.
B. DESIGNING VARIOUS HOLIDAY PLAN : IF our company goes
smoothly we will be planning various plan such as :
a. HOLIDAY PLAN.
b. INRELATION PLAN.
c. BREAKUP PLAN.
d. SINGLE PLAN.
C. AVA SHOPS: It will help customer to shop while they are travelling up
in our cab.
D. JOINT VENTURE WITH SHIPPING COMPANY: We will be having
JOINT UP VENTURE with shipping company in order to enter into
international business.
E. MOVERS AND PACKERS: We will be doing packing and moving
business for our customers.