DEALERSHIP OF HONDA MOTORS AND SCOOTERS INDIA LTD

INTRODUCTION OF THE PROPOSED DEALER:

Let us introduce ourselves as S.B. Patil Group is one of the renowned name in the Karnataka for its dedication, contacts and customer satisfaction. We manufacturers of all types of RCC / PCC / & PSC Poles, Power and Distribution Transformers and Prestressed Concrete Railway Sleepers & Points & Crossing Sleepers and supplying to Indian Railways and Private and Public sectors. We also have Sugar industry, RCC Hume Pipes factories and we are Class-I Civil & Electrical Contractors, IOCL Dealers and also run Educational Institutions viz. High School with CBSE syllabus, State syllabus and Pre University College, B.Ed & D.Ed College. In the year of 2010 we have incepted 100% Export Oriented Unit with a manufacturing activity of wide range of Fullers Earth of different grades which is high in Calcium Bentonate products. All the above our business activities under the flag ship of S.B.Patil Group and are located in and around Karnataka. We are proud to inform you that all our business activities are running successfully since last 4 decades under the leadership of Sri.B.G.Patil CMD. Brief details about Gulbarga District: History: GULBARGA was known as 'KALBURGI' in former days which mean stony land in Kannada. Gulbarga district is situated in the northern part of Karnataka State. In the earlier days, Gulbarga was a district of Hyderabad Karnataka area and became a part of Karnataka State after re-organization of states. Fact file: Geographical location Temperature Average rainfall Rivers Area District Headquarter Population Population density Literacy rate 12*54 to 13*53 North latitude 75*04 to 76*21 East longitude 45* C (Max) 22* C (Min) 839 Bhima, Krishna, Kagina and Bennethura 16,224 sq. kms GULBARGA TOWN 25,64,892 (2011 Census) 233 per sq. km 65.65%

Brief Details of the key catchment areas of Gulbarga: Educational Institutions: Degree colleges in Gulbarga around more than 100, Medical colleges around 3, Engineering colleges 5, Dental Colleges 3, Gulbarga university and Central University,

Polytechnic and ITI colleges.

Prominent Educational Institutes in the district Medical Colleges Mahadevappa Rampure College of Medical Sciences Khaja Bandanawaz Institute of Medical Sciences Paramedical college AI Kareem College of Nursing Al Qamar College of Nursing ESIC paramedical PDA College of Engineering K. C. T. Engineering College Khaja Bandanawaz College of Engineering Ghousia College Of Engineering Appa College of Engineering and Management VTU Regional centre. Industries: Dall Industries around 150 Small Scales Industries more than 50, Large based cement factories 5, Upcoming industries: IT & BT park, Textile Park. Upcoming 1320Mw Super Critical Thermal Power plant with cost of Rs.7500 crs. 8 large and medium industries with investment of 2000 crores. 17146 MSMEs units employing 73,000 with an investment of Rs.400 crores. Upcoming cement plants: Chettinad, india cements, Orient cement, Gulbarga cement and Lafarge cements.

Infrastructures: High court bench, New government 300 bed hospital, Indias biggest ESIC multi specialty hospital and college, Upcoming Railway Division, Booming Real Estates,

Agricultural sectors: Dall and Sugarcane cultivators. Cotton industries

Key industries: Agriculture & Food processing It is a main contributor to districts economy Contributes 31.7% and 67% in districts income and employment respectively. Sugar cane and cotton are the major thrust areas in the district. Gulbarga is known as the Tur bowl of the state contributing 40 % of the states production District boasts of a 106 acre State-of-the-Art Jewargi Agro Food park with specialized infrastructure facilities required for food processing and allied industry Cement District is recognized as a cement producing zone under Karnataka industrial policy 2009-14.It has witnessed huge investment in this sector. At present there are investments worth INR 8,968 crores in various cement projects in the district Textile District comprises of textile handloom cluster providing a conducive eco system for the investors. Proposed Textile Park in the district providing immediate investment opportunity of INR 70 crores. Other Sectors Energy Power Company of Karnataka Ltd (PCKL) has proposed a 1320 MW Thermal power project in the district. Agriculture profile: Parent Basalt rock in Chincholi, Chitapur, Jewargi and Sedam taluks are highly congenial for growing high quality TurImmense scope for bio-fuel plantation and afforestation. Sugarcane and cotton are the thrust area in the district. Major food crops of Gulbarga areTur, Jowar, Bajra and Paddy. Tourism Tomb of Firoz Shah Bahmani is a tomb of Bahmani Kings built in 1422. This fine mausoleum is Tughlaq style rectangular building with two domes. Tomb of Giyath al-Din of the 6th Sultan of the Bahmani Dynasty is one of the finest royal tombs and is situated to the southern entrance of Gulbarga Fort and is much more imposing than the tombs of the other sultans. The Jama Masjid, situated within the fort walls has stilted domes and narrow entrances typical of the Persian style of architecture. The Shrine of Saint Sharana Basaveshwara is the shrine of an eminent Hindu religious teacher and philosopher who preached ious and social equality. Khaja Bandenawaj Darga. Buddha Vihara

List of Talukas in Gulbarga: (1) Aland (2) Afzalpur (3) Chittapur (4) Chincholi (5) Jewargi (6) Sedam & (7) Gulbarga.

Key competitors in two wheelers: (Brand Competitors) S.B. Patil Motors (P) Ltds Proposed Honda Dealership, Nehru Gunj, Gulbarga S.I. No. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Showrooms Dhanlaxmi motors Ganesh Motors Vijay Motors Venkatesh Motors Mukunda Motors VKG Motors Rishabh Motors Bilgundi Motors Nisty Automotives Sharnabasava Wheels Brand Suzuki TVS TVS Hero Royal Enfield Bajaj Mahindra bikes Honda Yamaha Hero Electric bikes Location Gunj area Kapnoor Road Santraswadi Santraswadi Santraswadi STBT road Station Road Station Road SB temple Road Old Jewargi Road Distance (Approx) 500 meters 1 km 3.5 km 4 km 4 km 4.2 km 4.5 km 5.5 km 5.5 km 10.0 km

Key competitors in four wheelers: (Product Competitors) S.I. No. 1. 2. 3. 4. 5. 6. Showrooms Lahoti motors Bharat ford Saptagiri Venkateshwara Motors Karuna Toyota VKG Motors Brand Maruti Ford Mahindra Hyundai Toyota Tata Location Gunj area Kapnoor Road RTO Road STBT, Darga Road Sedam Road Kapnoor Road Distance (Approx) 500 meters 1.0 kms 5.5 kms 4.2 kms 5 kms 1.0 Kms

Fact files of Brand Positioning of Japanese Manufacturers in Indian market: The increasing preference for Japanese brands has led to a marked change in the two-wheeler market in India, with domestic companies struggling to tackle the onslaught of their multinational counterparts. Today, every fourth two-wheeler sold in India is manufactured by either Honda, Suzuki or Yamaha. As of November 2013, the combined market share of these companies rose to about 25 per cent, against 15 per cent five years earlier. These companies have capitalized on the demand for scooters and are scaling up presence in this segment. As of March 2012, the Indian two-wheeler market nearly doubled to 13.43 million units from 7.2 million units in March 2008, according to data from the Society of Indian Automobile Manufacturers. The motorcycle segment accounts for about three quarters of the two-wheeler market in India. Bajaj Auto is the only Indian company to have has expanded its share in the motorcycle market, even as its share in the overall market was hit. Earlier, the company had decided to move out of the scooter category to streamline its focus on the motorcycle segment.

As of November last year, Bajaj Autos share in the motorcycles market stood at 25.2 per cent, compared with 21.9 per cent in March 2009. However, due to its absence in the scooter segment, Bajaj slipped to the third spot in the two-wheeler market. In the last three years, the company has aggressively pushed its Pulsar and Discover brands, launching several refreshed and all-new models under these brands. Its association with KTM and Kawasaki also helped it introduce stylish and performance-oriented products. The loss in Delhi-based Hero MotoCorps market share in the two-wheeler segment was the highest in November 2012, it stood at 42.2 per cent, against about 49 per cent in March 2009. During the same period, its share in the bike segment fell from 60 per cent to 52.5 per cent. The companys new products such as Xtreme, Impulse and Ignitor failed to attract buyers. In the April-November period, Hero MotoCorps domestic sales fell 2.3 per cent to 3.89 million units. Chennai-based TVS Motors slipped to the fourth spot in the two-wheeler market in India. Its share in the motorcycle market stands at just 5.5 per cent, compared with 7.9 per cent in March 2009. Its range of scooters, which contributes 22 per cent to its two-wheeler sales, has been under pressure due to increasing competition from Honda. Recently, the company had launched the Flame and the Jive, which didnt receive a warm response from the market.

Honda Motorcycle and Scooter India (HMSI) climbed two slots to become the second-largest domestic two-wheeler company in the country. About 51 per cent of HMSIs sales is accounted for by scooters; for Suzuki, it is 78 per cent, while for Hero Motocorp, scooters account for nine per cent of total sales. Customer demand for Honda products remains strong. Both our plants are operating at full capacity and we are going ahead with the opening of our new plant in the South by first quarter of FY14. We are also on track to increasing our sales 31 per cent to 2.75 million units this year. Despite a weak outlook, Hero Motocorp would go ahead with plans to raise capacity to 10 million units in the next four to five years, against the current seven million units. The company is also keen to explore foreign markets. The company has a long-term target of 10 million units in volume sales by 2016-17 and is working towards achieving that milestone. Our vision is to get 10 per cent of our total sales from our international business in five years, In the next few years, competition for domestic brands is expected to intensify further, with foreign brands set to launch many products in every sub-segment of the motorcycle and scooter categories.

Launching new products plays a very important role in gaining market share. It is one of the key reasons behind the success of HMSI and Suzuki Motorcycle India. New products launched by these companies were well accepted by the market and helped these companies gain strong market share, HMSI continued to gain market share in the domestic market as it registered a 36.1% yoy growth in its total volumes as compared to a 3.1% decline for Hero Motocorp, sharp fall in two-wheeler domestic sales for Bajaj Auto and 1.4% fall in total two-wheeler volumes for TVS Motors. Bajaj Auto reported its second highest ever exports at 150,753 units a growth of 19.6% yoy. Domestic volumes plummeted 32.5% yoy. For HMSI, scooters segment with 53.6% yoy growth continued to outperform the motorcycles segment which saw a growth of 17.7% yoy. TVS Motors too saw a very strong growth of 37.6% yoy in scooters, while motorcycles volumes fell 4.4% yoy. HMSI sales up 55% in March 2014: Company's total sales stood at 2, 52,787 units in the corresponding month of previous year Two-wheeler manufacturer Honda Motorcycle & Scooter India (HMSI) today reported a 55% growth in sales at 3, 92,148 units for March, 2014. The company's total sales stood at 2, 52,787 units in the corresponding month of previous year. Motorcycle sales registered a rise of 57% to 1, 90,091 units in March, 2014 from 1, and 20,796 units in the same month of previous year, HMSI said in a statement. The company also reported an increase of 53% in scooter sales at 2, 02,057 units from 1, and 31,991 units in March, 2013, it added. Hondas Global wise, Asia wise and India wise sales figure of 2013.

Hondas New Plant in Karnataka: Japanese two-wheeler maker Honda Motorcycle and Scooter today said its new plant in Karnataka's Kolar district, with an annual production capacity of 18 lakh units (in two phases) built at an investment of Rs 1,350 crores, will become operational from next month. The new facility, inaugurated is the company's third manufacturing base here and will produce the Dream Yuga bikes and Activa scooters. The new plant will have a production capacity of 12 lakh units in the first phase which will be ramped up to 18 lakh units by next March 2014. The expanded production capacity will be supported by 2,500 outlets and rapid introduction of new models as the company aims for market leadership. By starting a new plant, Honda will significantly increase its cumulative annual production capacity by 64 per cent in just one fiscal. The third plant enables HMSI to more efficiently serve the vast domestic scooter and motorcycle market together with the existing Manesar (Haryana) and Tapukara (Rajasthan) plants. Spread across 96 acres, the facility at Narsapura Industrial Area in Kolar district of Karnataka employs around 4,500 people with 90 percent of them being locals. The company will start mass production of Dream Yuga which is targeted to cater to 100-110 cc motorcycle segment, contributing almost half of the total 1.4 crore two wheelers sold in the domestic market. Besides, the company will also roll out Activa scooters on the second line of the Nasarpur, Kolar facility.

Marketing Strategy to promote and strengthen Honda Brand in Gulbarga district:

ANNEXURE C Unique Business Approach of Proposed Dealers in Gulbarga:

Branding is all about creating Unique Value Preposition (UVP) within the Niche. Mr.B.G.Patil CMD of S.B.Patil Group is having more than 4 decades of enormous Industrial and Educational institutional experience in North part of Karnataka. Our Prime location for the proposed Honda Dealership is situated in the heart of the city of Nehru Gunj area which will easily connects and attracts more and more customers. In order to promote the brand, the following key areas are to be focused: Pre sales Strategies On sales Operations and Post sales and service Promise So SOP will be our main Moto to promote Honda brand.

Only customer attraction is not enough to promote brand. In order to promote, maintain and sustain the brand in the city, free training sessions for mechanics, some monetary and non monetary benefits like certifications, recognitions (Gantt chart) etc will be embarked upon. A satisfied customer is a good advertiser. The biggest and most influential advertisement to promote brand is Mouth Publicity from the existing and new customers with initiation of VIP treatment to customers at the time of services, reasonable charges, fast and easy insurance claim settlements, regular free service camps will help to promote brand. The proposed dealers are financial capable in all aspects and spectrums of advertisement, promotional activities and operational efficiencies like Road shows High end advertisement and sales promotion activities Internet and online marketing, Festival discounts, coupons, Regular and updated research activities to understand the changing tastes and preferences of customers, Pre and post sales advertisement. Regular availability of Honda genuine parts. Capacity to hold variety of Products in terms of CCs, Colors & different Honda Products & Parts. Priority to high end customer response & focus to be on CRM.