Project Plan-KAPL

KISAN AUTOMOBILES PVT LTD
DHANGADHI-02,KAILAI
PROJECT SYNOPSIS
Company Overview:
Kisan Automobiles Pvt Ltd. is sister concern of kisan Group was established as a HONDA Two
Wheelers Dealer at with two branches at Dhangadhi and Attariya city of Kailali District, the
vibrant cities of Sudurpachim Province, Nepal, the Company aims is to supply high-quality
Bike/Scooty of HONDA brand at reasonable prices to customers for their satisfaction. Company
also aims to be a driving force for people to achieve their dreams and move society forward. The
company was established in 2023. Previously Company known as Kisan Trading Concern Pvt Ltd.
Demand Analysis of HONDA Motor Bike:
 New innovative techniques and products With the usage of proper and new
innovative techniques and products, it has been able to increase the sales of the
company to a large extent.
 Honda’s market has around 28 million customers buying its products every year
all over the world as it sells fine quality products even at an affordable range of
pricing.
 With the new assembly plant in Nepal will increase availability of products,
accessibility of spare parts and service with this newly established assembly
plant.
 Due to the pandemic, every company whether big or small has suffered adversely,
and hence, the governments have taken an initiative to help in the economic
development of the countries. Thus, bringing up new markets can help Honda
come back on track and help it grow and widen its scope of business.
 By analysing these factors, Honda Two Wheelers can gain insights into the
demand dynamics of their Bike/Scooty in Nepal and develop strategies to
address the unique needs and preferences of Nepalese consumers, thereby
strengthening their market position in the country.
Market Potentials:
 Nepal Two Wheeler Market is estimated to grow at a rapid pace rate on the back of easy
availability of finance, rising disposable income, growing young population, and changing
lifestyles. Rising income levels in Nepal are one of the key drivers of Nepal two-wheeler
market growth over the years. Additionally, the improved infrastructure is another primary
driver of growth in the market as there have been significant investments in the
development of roads and highways in Nepal. Also, the government has been supporting
the growth of the two-wheeler market through various policies and initiatives such as
waiving import duties on two-wheelers and providing easy financing options for buyers.
 According to motorcycledata.com, Nepal's two-wheeler market was affected by new
taxation rules in 2023, causing a 16% decline in sales. However, in April 2024, two-
wheeler retail sales increased by 33.21% year-on-year and 7.43% month-on-month to
16,43,510 units, compared to 12,33,763 units sold in April 2023. This increase was due
to new model launches and improved market sentiment.
 Based on the Population Census 2021-11-25, The population of Sudurpachim Province is
27,11,270 which is 9.28% of the total population of Nepal. Out of such population,
belonging to age group 19-39 years is 53.84% of the total population of Sudurpachim
Province. It is to be conclude that most of the motor bike/scooty users belongs to such
age group.
 The chosen location for the Honda Motor Bike/Scooty is Sudurpachim Province,
Dhangadhi, a burgeoning business area in Nepal. Strategically situated as a connecting
point to major district like Bajang, Baitadi, Dadeldhura, Darchula, Doti and Kanchanpur
of Sudurpachim Province enjoys easy accessibility. Its proximity to the Indian border,
coupled with on-going infrastructure developments such as the Mahakali Koridor,
Chameliya Hydro Power and the establishment of a Geta Medical College, highlights its
potential for rapid growth. These factors contribute to an increasing demand for two
wheelers, both for personal and commercial use.
Opportunity:
 Honda is an international jap multinational employer. It operates in nearly all nations
throughout the globe. So, it has an extraordinary deal of global footprint. This makes it
greater recognizable to the general public and enables its exposure. So, it can enforce
its international questioning with nearby execution. Because of this it can pursue its
ubiquitous dreams and can still win the hearts of its clients.
 Honda has a sturdy financial base. it’s been gaining market slowly however surely for
approximately 75 years. It has earned public acceptance as true as a celebrity
enterprise within the vehicle field. Its financial function has it on a pure gain that
accelerated its market value and emblem call by leaps and limits. So, this financially
cozy function does properly for the employer.
Conclusion:
In conclusion, the establishment of a Honda two Wheelers dealer by M/S Kisan
Automobiles Pvt Ltd in Sudurpachim Province presents a lucrative opportunity in
Nepal's burgeoning two wheelers market. With its strategic location of Dhangadhi and
Attariya, strong market potential, and competitive advantage, the Two wheelers is well-
positioned to capitalize on the growing demand for HONDA Motor Bike. Backed by
experienced leadership, a customer-centric approach, and a commitment to excellence.
FINANCIAL INDICATIONS:
 Financial indicators serve as vital metrics for evaluating the economic health and
performance of businesses, industries, and economies. These indicators
encompass a wide range of measures, including profitability ratios, liquidity
ratios, solvency ratios, and efficiency ratios, providing insights into various
aspects of financial management and decision-making. Following are the
Expected Key Financial Indicators:
S.No. Particulars Remarks

1 Expected Sales Qty 1250 Units
2 Expected Sales in F.Y 2024-25 37.50 Crore
3 Profit Before Tax 1.75 Crore

4 Human Resource 25 Personel
5 Stock Holding Period Days 25 Days
6 Supplier Credit Period Days 30 Days
7 Receivable Aging Days 30 Days
FUND REQUIREMENTS:
 The Company has target of selling 1250 units of Two Wheelers in the F.Y 2024-
25. It needs to keep at least 1 month of Stock, i.e 200 Units and 30 days market
Receivable & gets 30 days Credit from Suppliers.
 On the basis of above, the company’s Working Capital Requirement is NPR 12 Cr.
NPR out of this NPR 4.0 Crore is borrowed from the Financial Institution as No-
Funded Loan & additional NPR 8 Crore fund is required to run the both Showroom
(Dhangadhi and Attariya) at targeted level.

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KISAN AUTOMOBILES PVT LTD

S.No. Particulars Remarks

3 Profit Before Tax 1.75 Crore

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