Young people today face a huge challenge of regular employment. Even the motivated, aspiring and trained youth are unable to get employment. Our project aims to build a platform for job oriented training of the unskilled and semi-skilled youth who have limited job opportunities. When we say ‘job oriented’ what we plan to do is to create innovative sustainable business models which will become large platforms for employment of the trained youth. Hence, we propose to become a marketplace for training as well as employment of the trained youth. The first model we are currently building is in the two-wheeler servicing sector where we will deploy hundreds of youth through a mobile automobile servicing platform in mid to large size corporations and housing complexes. The two-wheeler servicing sector has been carefully chosen based on the research that a large number of youth is trained every year in automobile servicing by the government run Industrial Training institute (ITIs) and automobile companies. Also, there are a lot of resources available including space, equipment, and trainers for conducting of such training programs. The major problem lies in the ‘meaningful’ employment of the youth after completing the training. The job of a mechanic is often not respected with low income levels. Our project will bring professionalism in the vast unorganized servicing market and will bring greater efficiency and structure leading to better income levels and dignity to the profession. It will also result in curbing the malpractices and ensure compliance with the industry recommended servicing norms and procedures. Apart from this, we also propose to bring environment-friendly recycling technologies to recycle tones of used engine oil and also remove the dirt, grease/oil and other foreign matter from the water used for washing purposes thus positively impacting the environment.
Project Budget – Automoboys requires $ 40,000 to build a proof of concept after which there will be enough revenues to take care of all the project cost. The Budget is therefore $ 40,000.
Income and Funding
Income or Funding Source Amount
Innovate4good Grant $ 250
Funds raised from Crowdsourcing platform $ 2000
Through other funding sources $ 37,500
Income from servicing vehicles^ $ 930,000
Sale of Engine oil^^ $ 930,000
Other Spare parts replacement* $ 186,000
Major repair cost** $ 37, 200
Total $ 2,085,450
^ $ 5 per vehicle * 6 vehicles per day per mechanic * 100 mechanics (310 working days PA)
^^ $ 5 per vehicle * 600 vehicles per day * 310 working days per year
* Assuming 2% significant repair jobs worth $ 50 spare parts/vehicle
** Assuming 2% major repair jobs with $ 10 labor cost/vehicle
Expense Type of Expense Cost
First 6 months towards building tie-ups, preparation of training programme and servicing procedure $ 5,000
Technology development and consultation $ 10,000
Pilot Project $25,000
Cost of Tool Kits~ $ 25,000
Salary to mechanics^^^ $ 480,000
Salary to Supervisor Engineer s*** $ 96,000
Cost of Engine [email protected] $ 744,000
Cost of Spare [email protected] $ 148,800
Business Development and other administrative costs $ 60,000
Marketing Costs $ 24,000
Other Miscellaneous Costs $ 30,000
Total $ 1,647,800
~ $ 250 per tool kit * 100 mechanics
^^^ $ 400/mechanic/month * 100 mechanics * 12 months
*** $ 800/Supervisor Engineer (SE)/month * 10 SE * 12 months
@ 20% margin on selling price
Staff and Administration –
During the pilot phase, we will be keeping low on staff and administration to minimize the costs towards developing a proof of concept. Trained mechanics will be taken as interns/apprentice and will be tested on the job. All liaison work will be done in-house without adding much staff.
As we develop a proof of concept and prepare ourselves to spread our wings, we will require the following staff and administration –
• Mechanics – 100 in number
• Supervisor Engineers – 10 in number
• Business Development and other administrative work – 4 in number
• Marketing Expenditure - $ 24,000
Available Resources –
We have managed to get a seed fund of $ 250 from Innovate4good and will be looking to raise funds from various sources on the completion of the Sprout course.
Also, we have eminent faculty from IIT Delhi (a premier technical institution in India) on board for technological and business related development, support and consultation.
Resources Needed –
We need roughly $ 40,000 to develop a proof of concept after which we will spread and will have sufficient revenues to take care of the costs.
We need roughly $ 40,000 to develop a proof of concept after which we will spread and will have sufficient revenues to take care of the costs and be sustainable.