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e-Ashwa Automotive Private Limited


Terms & Condition (Distributor)

e-Ashwa Automotive Private Limited is one of the leading manufacturers of environment friendly Battery Operated Vehicles. The company Specialized in the manufacture of e-Rickshaw, e-Loader, e-Auto, e-Scooter and is in the process of research, development and approval for e-Bike, e-Cart & L5 category Vehicles.

e-Ashwa has a strong team of technical & skilled work force with hands on experience of both Automobile as well as the Aviation Industry. The Company mission is to manufacture world class Electric Vehicles under Make in India program with indigenous technology, indigenous supply and indigenous reliability clubbed with committed customer service & satisfaction.

e-Ashwa is among very few companies providing warranty in respect of all types of Electric Vehicles and owns its own Service Centres providing both Warranty as well as Non-Warranty Service and repair facility.

e-Ashwa also owns its own testing division catering all rigorous testing so that each and every product that rolls out from the plant offers utmost safety, comfort & utility to the driver as well as the passengers which in turn gets converted into "Value for Money".

e-Ashwa at present has one fully equipped Manufacturing Plant in Ghaziabad and apart from that there are small assembly units as per table below:

S.No State City
1 Uttar Pradesh Babugarh
2 Bihar Nawada
3 Bihar Bakhtiyarpur
4 Bihar Purnea
5 Haryana Faridabad
6 Uttrakhand Rudrapur
7 Madhya Pradesh Bhopal
8 Orissa Sambhalpur

e-Ashwa has further bifurcated its Sales Channel into Distributors and Dealers and currently have 2 Distributors in Pilibhit and Muzaffarnagar in UP and 44 operational and active dealers in eight States viz Delhi, Uttar Pradesh, Madhya Pradesh, Bihar, Uttrakhand, Haryana, Punjab and Rajasthan.

Distributor
 Distributor is an investor who is interested in starting a Distributorship at a place identified as one of the Districts where e-Ashwa at present does not have a Distributor
 e-Ashwa Automotive Pvt Ltd offers Distribution rights for one District to the Investor. In case investor is interested in taking up Distribution rights in more than one Districts, it has to apply accordingly and the rights will be given for more than one on the same terms as if another investor is interested in taking up Distribution rights for that another districts.
 Distributor will be entitled to offer Dealership within the District at a gap of 5 Kms in urban area and 15 Kms in rural area.
 Distributor will necessarily have an outlet of its own and there would be two types of sales of Distributor Direct sales to end Customer and sale to dealers appointed by it. Direct sales to customer is done on the terms and conditions applicable to dealers, however, sale to dealers by the Distributor can be done on the Terms and Conditions decided by the Distribuor as per the Market position and saleability of the product.
 e-Ashwa Automotive Pvt Ltd offers a standard Discount of Rs. 2,500/- each vehicles in the 3wheeler category and Rs. 1,000/- each vehicles in the 2wheeler category to the Distributor. Distributor may decide to sell vehicles at the e-Ashwa dealers price or a price higher or lower than that to the dealers appointed by it.
 Total investment required for setting up Distribution line is Rs. 18.5 Lakhs as per detailed Breakup mentioned in table below.
 Distributor will get exclusive right of Trading of e-Ashwa vehicles within the district for which it has taken the Distribution rights.
 Land and civil work is in the scope of co-Assembler and Plant and machinery as well as inventory cost is included in the total investment amount as stated above.
 The total investment of Rs. 18.5 Lakhs includes the following:
Showroom Branding:   Professional Architect and Interior hired by the company does the branding on the same theme, same colour scheme and same look and feel. Branding also includes leaflets and broachers with the details customised for your outlet. E-Ashwa gets the Branding done and only painting of the space is within the scope of Distributor.
Each Category of Vehicle for Display:  Each outlet will be provided with one vehicle in each of the categories. e-Ashwa offers two categories in Three Wheelers (Rickshaw and Loader) and six types of Two Wheelers (Scooty). Within each category of vehicle, there are three variants available Basic, Semi-Loaded (with few additional accessories) and Fully-Loaded (with more additional accessories). E-Ashwa recommends display vehicle to be a fully loaded vehicle.
Office Furniture, Electric Equipment:  like Air Conditioner, Inverter, Table, chairs, Basic sofa set Not in scope of e-Ashwa.
Trade Certificate (TC) from local RTO:   We have approvals for vehicle registration in almost all of the Northern states and based on our authority letter, local RTO will issue a TC in the favour of Dealer on submission of application Not in scope of e-Ashwa.

What you can Expect
 It takes about 4 months time to get the momentum and to get the production and sale started and picked up.
 A Distributor is capable of earning a margin of Rs. 15,000/- to Rs. 18,000/- for each category of Three Wheeler and a margin of Rs. 4,000/- to Rs. 5,000/- for each category of Two Wheeler on the Direct sale and Rs. 2,500/- to Rs. 3,500/- for each category of Three Wheeler and a margin of Rs. 1,000/- to Rs. 1,500/- for each category of Two Wheeler on the Indirect sale.
 With the expected sale of 3 three wheelers and 5 two wheelers from 4th month onwards in each outlet, and with about 7 outlets (dealers appointed) within six months of start of operations, a Distributor can expect a margin of about Rs. 1,80,000/- each month.
 Super Distributor will have either one 2,500 Sq Ft space at some market place or should have 400-500 Sq Ft space at Market Place and balance about 2000 Sq Ft space as a Godown or store space.
 The kind of locations for the Godown or store space is an outskirt industrial area which has proximity to highway or any main city so that Transportation through Truck is possible.
 Rental and Manpower expenses falls in the range of 30,000/- to 50,000/- and hence Distributor can expect a net margin of Rs. 1.3 Lakhs to 1.2 Lakhs per Month.

Investment for Distributor

Investment required for the Distributor is Rs. 18.5 Lakhs as per Table below:

S.No Investment Element Investment Amount
1 Basic Assembling unit 75,000
2 Raw Material for 10 units (@ 56,000/- each) of three wheelers and 20 units (@ 54,000/- each) of Two wheeler 16,40,000
3 Branding Material 35,000
4 Franchise Fee Non Refundable 1,00,000

Total 18,50,000

Pay Back Period

As per the calculation stated above, the payback period for the Investment is about 12 months, however, e-Ashwa suggest to consider 18 months as Payback period although e-Ashwa also recommends not to withdraw the profit but to reinvest the same to expand the capability of the Distributorship.


Roles and Responsibility
Activities Responsibility
Completion of civil work / shed as per requirement Distributor
Setting up Plant and Machinery e-Ashwa
Providing inventory on timely manner e-Ashwa
Day to day operations Distributor
Sales and Marketing Joint
Dealing with Dealers and Distributors Distributor
Arranging of local Financer Distributor
Arranging of centralised Financer e-Ashwa
Issuance of LOI and all forms for vehicle Registration e-Ashwa
All necessary approvals related to Premises Distributor
All necessary approvals related to vehicles e-Ashwa
Arrangement of Debit / Credit Card POS machines e-Ashwa

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