Summer Internship Project Report

On

BikeCleanse

At

M/S Sja and Associates

By

Shubham Gupta

BMS Class of 2018

(15165)
(Submitted in August, 2017)

In Partial Fulfilment of Requirements for

Award of Degree in
Bachelor of Management Studies

SHAHEED SUKHDEV COLLEGE OF BUSINESS STUDIES

(University of Delhi)
 Declaration

I hereby declare that this internship report, submitted to Shaheed Sukhdev College of
Business Studies, University of Delhi is a record of an official work done by me under
the guidance of Miss. Shilpi Jain, Sja and Associates. The project is submitted in the
partial fulfillment of the requirements for the award of the degree of Bachelor of
Management Studies. The results embodied have not been submitted to any other University
or
Institute for the award of any degree or diploma.

Signature/Seal of Company Signature of Student

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 ACKNOWLEDGEMENT
I am highly indebted to M/s Sja and Associates for their guidance and constant supervision as
well as for providing necessary information regarding the project & also for their support in
completing the project.
I would like to acknowledge the constant mentoring of Miss Shilpi Jain.
I would like to express my gratitude towards my parents & member of M/S Sja and
Associates for their kind co-operation and encouragement which help me in completion of
this project.
I would like to express my special gratitude and thanks to industry persons for giving me
such attention and time.
My thanks and appreciations also go to my college and people who have willingly helped me
out with their abilities.

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TABLE OF CONTENTS
This report consists of Pg.No
1. Executive Summary v
2. Chapter 1 (Introduction) 1
3. Chapter 2 (Research Methodology) 5
4. Chapter 3 (Data Analysis and Findings) 6
5. Chapter 4 (Conclusion) 10
6. References 11

iii
.

EXECUTIVE SUMMARY
This report is an attempt to understand the dynamic business environment for BikeCleanse. It
specialize in automatic washing of dirty, greasy bikes. BikeCleanse as an innovative disrupter
in the bike care market seek to address various problems. It manufactures and operates
Automated Motorbike Washing (AMW) machines to wash all types of motorbikes within 3-4
minutes at the touch of a button while recycling up to 95% of the water.
Till date, BikeCleanse has serviced over 1,00,000+ plus bikes and helped save over
50,00,000 litres of water, as claimed by the founder.

This report analyzes the firm on the basis of its strengths and weakness and suggests growth
drivers and risk management strategies to the client.

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Chapter 1 (Introduction)
BikeCleanse specialize in automatic washing of dirty, greasy bikes. BikeCleanse as an
innovative disrupter in the bike care market seek to address following problems.
• Laidback attitude of Cleaner- It takes hours to wash a motorbike.
• Wastage of water- around 100 litres of water is utilized for a single wash
• Lack of professional care- Local shops may utilize substandard cleaning material,
shining agent.
• Non availability of genuine spare parts, peripheral bike care
• Lack of nationwide trusted brand in bike care
BikeCleanse addresses the above mentioned problems in the following manner:
• It takes around 3-5 minutes for a bike wash.
• Inbuilt water recycling system is installed in the machine; only 7 litre water is utilized
per wash.
• It provides uniform bike care products across all its stores.
• It has expanded into multiple cities and plans to reach 100 stores in domestic and
international arena.
• It has developed patented technology for bike wash, delivering superior shine and
instant bike care.
Strengths Of BikeCleanse (Growth Drivers)
The following section enumerates perceived unique strengths of BikeCleanse
• Strategic Partnerships – PAN India agreements with HPCL,IOCL covering 40000+
locations.
• Successful Pilot tests at Hyderabad Malls
• Reliance on Franchisee Model and sale to service centres – This creates a uniform
brand experience for BikeCleanse and earns Goodwill for the firm , all service centres
are equal
• Profitable unit economics – Machines costing 2-3 lakhs can be sold at 6-8 lakhs
• Export opportunity – South Asia , Central America
• They have Satveer Singh from the Singapore Angel Network and Nimisha Madhwani,
the ambassador to Uganda onboard. The former is helping them build a unit there to
meet the demand in Indonesia and the latter will help them expand in the African
country.1
• Only Company to be vendor listed by an Automobile giant, Bajaj. They are
developing a model specifically for them.
• They have launched a cloud based franchisee Management app and plan to launch
another B2C app.
• They plan to collaborate with GOJEK in Indonesia
• Carcleanse and Solarcleanse are its upcoming products.

1. https://yourstory.com/2016/05/cleanse-solutions/

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Threats (Direct Competitors)
Entropy
• Similar in terms of Value Proposition to BikeCleanse
• Ahead of BikeCleanse in terms of Geographical Presence - Presence in
Gujrat,Kerala,Andhra,Karnataka,Goa,Maharashta,Orrisa ,NCR ; Columbia, Rwanda,
Indonesia, Thailand and Nepal
• Well Funded firm – Mobius, Ah Ventures , AdvantEdge invested undisclosed
amount
• Similiar partnership with Hero , Honda , Oil Companies
• Similiar price per wash – around Rs.150
• Similiar ROI – Within 6 months
• Ahead of BikeCleanse in terms of Internet Visibility, Citations in Startup articles

Treo Engineering
• Presently, they only manufacture Bikecleaning platform.
• They sell their machine at 50% of our price; however their product is intended
towards service centres.
• Possible risk of their diversification may threaten BikeCleanse.

My bikewash
• Present only in Pune
• Offers Similar services

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Indirect Competitors
These firms provide pick and drop service for complete two wheeler maintenance. Most of
them are located in Bangalore and offer local services. They provide general and breakdown
services.
1. Lets Service - Let’s Service charges a convenience fee of Rs 300-400 from customers
based on location
Let’s Service, which has tied up with around 100 service centres of different two-
wheeler brands in Bangalore, claims to have served 10,000 customers so far.
2. Gear6.in – Gear6.in provides services in almost all localities in Bengaluru, and
currently has tie-ups with more than 100 authorised and multi-branded service centres
.The startup officially began operations in January 2016 and claims to be averaging
about 500 transactions a month at this stage.
Online Payment option Available
Provide Real time tracking of Bikes
3. Autoyaar-
Based in Gujarat, Available in Ahmadabad, Pune,Gandhinagar
With an association of 1000+ service provider, it is an online aggregrator for
automobile servicing
Vehicles are picked and dropped at home for services, Including car spa
AutoyaarClub - App helping customers manage all their vehicles at one place,
starting from service due dates, PUC (Pollution under Control) renewal to insurance
renewal dates. The app will also allow customers to track the entire process of their
vehicle service booking.
4. Some other Similar Service providers
• Mericar- NCR based car service platform, marketplace of car workshops and
auto repair shops
• Cartisan – Provide services in Banglore,Gurgaon,Mumbai,Pune
• Drivojoy- Mechanic come at your home, repair infront of you

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Chapter 2 : Research Methodology and
Procedures
For the purpose of my research, I received statement of Accounts from M/S Sja and
Associates.
I analysed their historical and expected cost sheets and tried to comment on profitability of
the firm. Based on the statement of Revenue Streams, I helped identifying probable areas to
generate excess returns.
I relied on secondary sources to create my internship report. Data regarding financial muscle
of Entropy Ltd. And Thailand based KKE was obtained from Crunchbase database.
I studied market entry norms, rules and procedures from the Ministry of Trade and US
International Trade department. I have compiled my finding in the report.

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Chapter 3: Data Analysis and Findings
Based on Bikes availability and per capita income, Following countries are suggested for
international expansion.

• Colombia
• Thailand
• Indonesia
• African Countries
International Master Franchisee route is preferred for expansion.

Around 85% of Indonesians and Thailanders own a two wheeler. 86% Malaysians own
bikes. In India, only 47% people own two wheelers. This makes the above Asian countries
attractive markets.

Africa is relatively behind in Bike Ownership as the presented below.

Percentage of households that have a motorcycle/scooter:

1. Nigeria – 35%
2. Ghana- 15%
3. Senegal – 15%
KKE is a manufacturer of Automatic Washing Equipment. They are a member of
International CarWash Association. They deal in almost all kind of washing solution- Car,
bike, Truck, Train, Industrial Parts, Mats, etc. The company was founded in 1993 and has
international presence in

Azerbaijan Saudi Arabia

Canada Singapore

India South Africa

Indonesia Sri Lanka

Ireland Switzerland

Kenya United Republic of Tanzania

Malaysia Yemen

Oman India

Pakistan

Qatar Source- http://www.kkewash.com/en-

in/contact-KKE/
Russia

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Indonesia-Points to Note
1. Traditional Bike Cleaning cost around 1 USD.
2. EBW has already ventured into Indonesia, first store is in Jakarta.
3. A franchise in Indonesia is governed by Government Regulation No. 42 of 2007 on
Franchise (GR42/2007). Regulation 68 provides that a single company cannot have more
than 150 company-owned outlets. Additional outlets may be established if 40% of the
additional outlets are franchised to a local micro, small or medium enterprise (MSME).
4. For their franchise business, the franchisor and franchisee must use raw materials and
business equipment, and sell products, that are at least 80% domestically produced.
5. DuniyaMotor is an e seller of bike accessories. Can be a potential competitor to accessory
selling business of BikeCleanse.
6. Jakarta, Surabaya, Medan and Bandung are the 4 most populous Indonesian Cities.
7. Due to rising pollution in Indonesia, there can be huge demand of Electric Bikes.
BikeCleanse must be able to wash Electric bikes as well
8. Challenge- Fragmented Geography ( Archipalego of 6000 islands), diversified Culture,
language. Customer attitude vary across Islands and it requires extensive city wise
marketing research.
9. Challenge- Indonesian Franchisee Law require Foreign Franchisor to cooperate with
small enterprises as the franchisee. Foreign Franchisor must report to Ministry of Trade.

Market Entry Strategy

Partnering with a local agent or distributor is the most effective way to enter the Indonesian
market and reach potential buyers. The agent or distributor can facilitate and expedite market
entry with their extensive market knowledge and established distribution networks and
relationships with key business and government officials.

As per Deck, BikeCleanse is in talks with GENJO for collaboration. Like India, Indonesia also
follow state owned oil companies which allocate petrol pump dealership. Such Companies must
be taken into strategic alliance to capture Indonesian Market.
Thailand – Points to Note
1. Thailand ranked 18 out of 185 countries in the World Bank Group’s Ease of Doing
Business Ranking.
2. Thailand is one of the world’s most visited countries and tourism is vital to the Thai
economy. Regular Bike Clean is essential for thriving Thai Bike Taxi Industry. There
exists a scope of collaboration.
3. Collaborate with Motorcycle Rental Business Houses.
4. Political Risk-Military toppled the Civilian Government in the recent past. Uber was
forced to suspend its bikeTaxi Operations in Bangkok as it conflicted with existing Taxi
services.
In a way, BikeCleanse follows a disruptive model and it faces the risk of whimsical mood
of Govt.
5. Automobiles and Automative parts attract highest rate of ad valorem tax. This could be
an impediment.
Solution - Directly Source high tax material like automotive parts from localities
instead of importing.

Source-https://www.export.gov/article?id=Thailand-market-challenges

6. Customs law in Thailand does not fulfil the standards established by The International
Convention on the Simplification and Harmonization of Customs Procedures, otherwise
known as “the Kyoto Convention.” Major problem areas include Thailand’s Customs
Penalty Regime and Customs Valuation Procedures. Procedure for determining “Customs
Value” remains opaque as the valuation methodologies, determined by Ministerial
Regulations, are subject to frequent change. Confusion over the guidelines can lead to
increased risk of misinterpretation and misapplication of goods valuation methods.
7. The regulatory environment protecting intellectual property in Thailand is at times
difficult to navigate. Patent registration can be a lengthy process, sometimes requiring
several years. Patent and trademark infringement is common in Thailand

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Chapter 4: Conclusion
1. Enter into Master Franchisee Agreement with Petrol Pump, Mall Chains, Cinema
Chains,Fast Food Joints for national expansion.
2. Bike Washing Platform should be portable. There must be a slot to attach wheels. It
would be added advantage to buyer as it would enable him to move the system for
maximum bike washes. Movement of machine within a Mall/Parking Place is facilitated.
3. In order to generate additional revenue, Supplementary bike care products like Helmets,
Cleaning Equipments can be sold. It is recommended that such products should be of
homogenous brand and must match with the brand philosophy of Bikecleanse. It must
target bike enthusiasts. Sale of such goods can be a part of integrated BikeCleanse
experience.
4. Salt and water may hide in small gears in the bike. Ultrasonic cleaner may come to
rescue. American firm Omegasonics use this technology.
5. A system of BikeCleanse cards may be developed. This card will provide not only cash
less service but also facilitate repeat sales. Bikecleanse card holders may be given a
license to jump the queue at a station and get a quick wash. A system of incentives may
be built in through this card. MisterCar Wash offers monthly Unlimited Car Wash Passes
.
6. First Generation Entrepreneurs – Bike Cleanse require initial capital investment of
around Rs. 6,00,000. Machine may not necessarily be set up at petrol pump, parking.
Such a Machine could be set up basically anywhere. It must however, attract around 35
washes a day to breakeven within a reasonable time period.
7. Treo offers its cleaning platform at around half the price of BikeCleanse. It lacks
water recycle and enclosure. It is more suitable for service centres. Bikecleanse sells
consumer facing washing platform . Even if they launch enclosed washing platform ,
Bikecleanse can overpower them through first mover advantage and strategic
partnerships with Oil companies, Chemical suppliers.
8. Entropy sells its machine at 9-10 lakhs. In addition to bike wash , they provide oil
change, lubrication and diagnosis of the bike in terms of its performance. Such services
enable them to charge higher revenue per user.

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References
Data was sourced from several websites like

https://www.crunchbase.com/
http://treo-engineering.co.in/
http://www.kkewash.com/
https://www.inabike.net/market-information
http://www.globalnegotiator.com/blog_en/master-franchise-agreement/
http://bikecleanse.com/

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