Photo - Computer manufacturing factory
23286

Computer manufacturing factory

India, Maharashtra
Market: Computers, office equipment, Mechanical engineering
Stage of the project: Operating business

Date of last change: 11/14/2017
Min investment
$  1.000.000
0
Total required
$ 3.000.000
Rating
equalizer 175 из 1000
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Idea

We would like to establish a computer hardware manufacturing factory in India and it would be the first establishment in India.

Current Status

We are in the business from last 1 year and we used to manufacture our products from China. But we found lots of problems in this process and we found a new business opportunity.
We have finished 2 prototypes which are gaming computer case in India. Which is first "MADE IN INDIA"product. We have our first client ready to get his products manufacture from us and quantity is very huge 5000 PC cases per month on regular basis.

We are ready to work on any project related to computers, which could be in metal, glass or plastic.

Market

The current market of gaming hardware in India is growing rapidly with 17 million PC sold per year. Total Addressable Market (TAM) for all computer components is $2.8B. Demand for gaming components are very high and very less options are available to fulfil the demand.
A new type of job is offered for gamers to work as a gamer and compete/represent a company in gaming tournaments.
Except HP, there is no other company which manufacture in India and every company import products from China which increases the price of hardware which includes custom duty, shipping etc.
We decided to initially pursue market segments in the computer electronics industries. This is very distinct markets with very different needs.
We will provide manufacturing service for the computer brands globally B2B and launch our specially designed creative cases for casual and pro gamers which would be B2C.
Local Clients: 8+
Gloabl Clients: 250+

Problem or Opportunity

No Computer hardware manufacturer in India. Lack of technology, creative and innovative design for Brands.
Local brands import computer hardware from China and things get costlier due to below mentioned points.
 MADE IN CHINA
 International Shipping Cost
 Heavy Custom Duty
 Higher MOQ
Other Problems faced by Brands
 Shipping and manufacturing time
 Difficulties to visit manufacturer frequently
 No support without CAD drawings
 Costly MOLD and tool
 No security while shipping
 Limited design choice for OEM orders
 No minor changes on products
 No transparency in process

Solution (product or service)

As manufacturer, we will provide manufacturing services to all brands globally and locally.
It will be first computer manufacturing unit in India.
Brands can get the benefits as mentioned below:
● MADE IN INDIA
● Interstate shipping cost
● Save custom duty
● Quick turnaround time
● Ease of meeting and visiting
● Save up to 30% cost as compared to China
● Full transparency
● Support without CAD drawing
● Affordable MOLD and tool
● Huge design library to choose
● OEM and ODM support
● Customizable MOQ

Competitors

We don’t have a single competitor in India and we will not give a chance to others. We have competition with Chinese companies which is a traditional way for all importers.
Our competitors are companies that provide basic types of design and standard quality. There are far too many competitors to list specifically. To their advantage, they have an established customer base. Further, many mold-making companies also have injection-molding machinery, which enables them to manufacture actual products. However, the vast majority of our competitors are not taking full advantage of current technology, nor are they implementing modern operational systems. Their waste is ultimately passed along to the customer via longer turnaround times and higher overhead costs.

Advantages or differentiators

We are the only manufacturer in India which will hold the monopoly in Indian market for a long time.
We are breaking the traditional design of computer hardwares and exploring the different ways to widen the range of case designs and type which none company achieved yet.
By relying on our technology and an activity-based costing system, rather than a time-based system, we will be able to maintain competitive prices and sustain high profitability. Our technology and systematic efficiencies will allow us to have advantages in cost, speed and design capability. Ultimately, these advantages will quickly come to define Mofotech as an industry leader.
Our Virtual Design Center technology gives us a significant advantage over our competitors, and our patent prevents others from being able to replicate the services we offer.

Finance

Our Company will earn revenue from the sale of design services and manufactured computer hardware. The attached Income Statement demonstrates that our gross profit margin will exceed 50%, and we will achieve break-even with sales of INR 15 Cr. We expect to reach profitability by the middle of Year 2.
The start-up funds will be used to cover operating costs including payroll, taxes, and utilities. Start-up funds will also be used to purchase capital expenditures such as leasehold improvements, software and machinery, which will produce future benefits for the company. Approximately forty percent will be spent on assets, while the other sixty percent will be spent on operations until we realize profitability.

Business model

Our Key partners:
● METAL SUPPLIER
● ABS PLASTIC SUPPLIER
● PAINT SUPPLIER
● PROMOTION AGENCY
● MOLD MANUFACTURER

Key Activities:
● R&D
● MANUFACTURING
● MARKETING
● SELLING

Key Resources:
● FACTORY
● SALES TEAM
● MARKETING TEAM
● LABOR
● OFFICE STAFF
● DISTRIBUTORS

Value Proposition:
● OEM/ODM SERVICE
● HUGE DESIGN LIBRARY
● METAL GAMING CASE
● 30% CHEAPER THAN CHINA
● QUICK TURNAROUND TIME
● SUPPORT WITHOUT CAD DRAWING

Customer Relationship:
● LONG-TERM CONTRACTS WITH GOVERNMENT, LOCAL AND GLOBAL COMPUTER BRANDS
● COMPUTER MANUFACTURER

Channels:
● B2B ONLINE PORTAL
● B2C ONLINE PORTAL
● WEBSITE
● TRADE SHOW
● CAPITAL

Customer Segments:
● COMPUTER BRANDS
● LOCAL & GLOBAL
● GOVERNMENT
● TRADERS

Cost Structure:
● CAPITAL INVESTMENT
● MANUFACTURING COST
● LICENSING COST
● MARKETING
● MOLD COST

Revenue Streams:
● CONTRACT MANUFACTURING
● FULLY INTEGRATED MANUFACTURING (SALES)
● PARTNERSHIP ROYALTY

Money will be spent on

We would be needing investment for following things:
1. Factory setup with heavy machineries
2. Operating Expenses
3. Promotional Activities
4. R&D department for technology

Offer for investor

We are open for any discussion and would like to offer 20% equity and 5% profit sharing for 5 years.
We are okay with their terms as well if that suited us.

Risks

The only risk would be the new technology, but we can buy it for our products.

Incubation/Acceleration programs accomplishment

NA

Won the competition and other awards

NA
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Idea
Current Status
Market
Problem or Opportunity
Solution (product or service)
Competitors
Advantages or differentiators
Finance
Invested in previous rounds, $
Business model
Money will be spent on
Offer for investor
Team or Management
Mentors & Advisors
Lead investor
Risks
Incubation/Acceleration programs accomplishment
Won the competition and other awards
Invention/Patent
Product Video