Project for the subject

INNOVATION & ENTREPRENEURSHIP

(UTA025)

Submitted by

Tanmay Garg (101915001)

Avneet Singh Maingi (101915005)
Ankush Singla (101915007)
Digaamber Dhamija (101915008)
Nishant Gupta (101915012)
Suyash Garg (101915013)

Group No.: 2NC1_2

Project Title: ADNATS

Course and Lab Instructor

Dr. Vinay Kumar
(Associate Professor, Electronics & Computer Engineering)

THAPAR INSTITUTE OF ENGINEERING AND TECHNOLOGY, PATIALA

Session: February – June 2021
(Date of submission: 04/06/2021)

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 CONTENTS
Title Page No
Certificate 3
Acknowledgments 4
Chapter 1: Opportunity Analysis 5
1.1 Opportunity Identification 5
1.2 Solution proposed 5
1.3 Uniqueness of the solution 6
1.4 What problem of the market segment is solved by the solution? 7
1.5 Identification of users and customers 7
1.6 How will the target users be benefited by the solution? 7
1.7 How will users discover and adopt this solution? 8
1.8 How the market segment will get affected by this solution? 8
1.9 Filled Opportunity Canvas 9

Chapter 2: Customer Validation Survey 10

2.1 Sample form used for customer survey 10
2.2 Size of the customer survey and its documentary proof 13
2.3 Results of the survey (question wise) 14
2.4 Detailed Analysis of the survey 19
2.5 Conclusion of the survey 22

Chapter 3: Financial Model 23

3.1 Cost Structure 23
3.2 Revenue Structure 23
3.3 Profit & Loss Statement 24
3.4 Cash Flow Statement 25

Chapter 4: Reflections 26
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 CERTIFICATE
This is to certify that the project report on, “ADNATS (2NC1_2)” being submitted
by Mr. Tanmay Garg, Mr. Avneet Singh Maingi, Mr. Ankush Singla, Mr. Digaamber
Dhamija, Mr. Nishant Gupta, and Mr. Suyash Garg to Dr. Vinay Kumar (Associate
Professor, Thapar Institute of Engineering and Technology, Patiala) for the fulfillment of
the course requirement of INNOVATION & ENTREPRENEURSHIP (UTA025) is a bonafide
record of work carried out by us in conformity with the rules and regulations of the
institute.
The results presented in this report have not been submitted, in part or full, to any
other University or Institute for the award of any degree or diploma.

Tanmay Garg
(101915001)

Avneet Singh Maingi

(101915005)

Ankush Singla
Dated: 04/06/2021 (101915007)

Digaamber Dhamija
(101915008)

Nishant Gupta
(101915012)

Suyash Garg
(101915013)

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 ACKNOWLEDGEMENTS

“If everyone is moving together forward, then success takes care of itself”
- Henry Ford

The success of any endeavor depends on the collaboration and teamwork of the people
working on it. This project is no exception and is a collaborative and team effort.

However, it would not have been possible without the guidance of our teacher, Dr. Vinay
Kumar, who took a keen interest in our project and provided us with the necessary
information and references.

We would also like to thank the university for allowing us to work on this entrepreneurial
endeavor. Throughout the project, we have learned and gained the wonderful experience
of working on a start-up.

Lastly, we would also like to thank our batchmates for their timely support and guidance.

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CHAPTER 1: OPPORTUNITY ANALYSIS

1.1 Opportunity Identification

M odern lifestyle, including tedious jobs and late working hours, seldom leaves time
for people to run their daily errands. Young children and students often don’t have
the required convenience to run them on their own. This is the reason why online delivery
and errand services are becoming very popular.

These services allow consumers to order food, groceries, medicines, and run errands like
pick up and drop, etc at just the click of a button. Often, consumers have to order multiple
services from separate establishments. For example, a consumer who wants to order food
and run an errand has to order individual services from different companies. As a result,
he/she has to pay for these services separately; an amount which has the costs and
profits of respective companies involved. These individual charges are heavy on a
consumer’s pocket.

This approach also has other drawbacks associated with it. Here, we propose a company,
ADNATS, that tries to address some of these issues by allowing customers to order
multiple delivery services like ordering goods and running errands in a single order.

Due to the COVID-19 pandemic, increasing access to high-speed internet facilities, and
boosting sales of smartphones, online delivery services are growing at a very fast rate in
India. The online food delivery service alone reached a market value of US $4.35 billion in
2020 in the country. This escalating growth shows that people are looking for innovative
and cheaper solutions which can provide such services. Our company, ADNATS, is a step
in that direction.

1.2 Solution Proposed

Our proposed solution, ADNATS, will allow people to order multiple delivery services in a
single order. For example, if a consumer wants to order food from a restaurant and also
some groceries from a separate grocery store, he/she just need to place a single order
from our app. A delivery person will be assigned who will fulfill both the orders and
deliver them to the customer. The route that the delivery person takes from his current
location to the stores and then to the customer will be optimized using rigorous internal
optimization and AI algorithms based on several factors like traffic, distance, time, type of
service chosen, etc, minimizing delivery cost.
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Additionally, our company will provide the following benefits to the consumers:
• An intuitive, user-friendly interface that will make the application easy to use for
people of all age groups.
• A fast and reliable order tracking system that will allow the user to efficiently
monitor the status of their order.
• Multiple payment gateways, allowing customers to pay for their order using their
preferred payment mode.
• A 24/7 AI-based chatbot to resolve users’ complaints regarding the service
provided.
• A definite and simple feedback system that will allow the users to register their
feedback for the service provided.
• Reliable and verified delivery partners to deliver orders safely to the consumers.
• Precautionary measures, including contactless delivery, under the government
guidelines during the COVID-19 pandemic.
• An option to subscribe to premium memberships to the users who wish to avail
benefits like priority and faster delivery, lower delivery charges, discount coupons
for partner stores, etc.

1.3 Uniqueness of Solution

• The solution is unique as it is an errand service that allows customers to order
multiple services in a SINGLE order which would cost him/her less than if he/she
were to order individual services from separate companies.
• ADNATS is a ‘one of its kind’ company. Currently, there is no other platform that
provides all the services under one roof, i.e., a SINGLE APP for multiple services.
• The product which our company will deliver will be from local stores. These stores
are in the cities for many years and have trust and familiarity among the
customers.

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1.4 What problem of the market segment is solved by the solution?
• Our market segment faces the problem of high delivery charges in online mode. So,
our company has solved this problem by surveying customers. This survey has
given us a range as to where to set the prices.
• One of the major issues is transparency between suppliers and customers. We will
offer this transparency to the customers to choose from their preferred suppliers.
This will build trust between customers and suppliers.
• Users have to manage multiple apps for different services which becomes very
difficult, but we provide a single app for multiple services. By using our app,
customers will save time as well as money.

1.5 Identification of users and customers

Our major client base will include:
• Working professionals: This service will save a lot of time and money for working
professionals, as they can order on their way and get it delivered before they
reach.
• University Students: University students often use walking or a cycle as their main
means of transportation. Our app will beneficial to them as they can simply get the
items they need delivered and concentrate on their studies.
• Physically challenged people: People who cannot go outside and buy the things
they need, can simply use the app and get them at their respective places.
• Old aged people and children: Old aged people and children are often dependent
on others to get the items they need. They can get those things delivered at the
tap of a button.

1.6 How will the target users be benefited by the solution?

The proposed solution has several advantages which will benefit all the parties involved.
As a single delivery person will fulfill all the orders, it will allow us to minimize delivery
costs. This service will also allow people to order from their preferred suppliers: a move
that would benefit local, small-scale store owners.
Our major client base will use our service for the following reasons:
• Working Professionals: Our app will be very useful for working professionals as
after a hectic day when they feel the need to buy some groceries and are not in a
state to go out, they can simply order it through our app. Also, if they forget
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 something back at the office or home, they can book a pickup of that item and it
will be delivered without any delay.
• Kids of age 10+: As the kids don’t have a vehicle license and their parents prefer to
get them the things they require on their own, through our multitasking app kids
can avail themselves of the services they require and parents don’t need to travel
to get their products.
• University Students: This app will be very beneficial to university students,
especially in their exams, as most of them use walking or a cycle as their main
means of transportation. But, through our app, they can save precious time and
can concentrate on their studies.
• Old Aged/Physically Challenged: To remove the dependency on others our
multitasking app will help old aged and physically challenged people. They will not
need to depend on others for their medicine, as our app will take care of that.

1.7 How will users discover and adopt this solution?

• We will make a social media page and use social media advertising to go to the
market. Working professionals and youth, which would be our major clients, will be
targeted by this move.
• We will also post general ideas like facts and trivia, related to items we sell on the
page. This will help us to retain our audience on social media and advertise the
benefits of using our services.
• For old-aged people and other clients, we will use pamphlets and posters in the
city for publicity.
• For the customers who land on our platform, we will use various means such as
providing discount coupons, a good user interface, and a quality service so that
they have a great experience using our services.

1.8 How the market segment will get affected by this solution?
We will be providing customers with all kinds of products from wherever they want
without much effort. We are also aiming to greatly reduce their time and hassle to order
products. We will provide our customers quality delivery service at lower prices as
compared to the current market. We expect benefits and profits to grow at higher rates
as our customer base will be increasing in the coming years.

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1.9 Filled Opportunity Canvas

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CHAPTER 2: CUSTOMER VALIDATION SURVEY

2.1 Sample form used for customer survey

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2.2 Size of customer survey and its documentary proof
The survey consists of responses from a total of 201 respondents. Keeping in mind,
ADNATS which has been primarily developed to provide the best delivery services to
people, our target audience for the survey consists of the same.

We surveyed people of all professions like students, working professionals, homemakers,

business owners, etc., and forwarded the survey in as many WhatsApp groups as possible,
including our parents and their connections. Thus, we were able to survey a vast
audience.

• Link of The Form: ADNATS

• QR Code:

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2.3 Question-wise result of the survey
Question 1

Question 2

Question 3

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Question 4

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Question 5

Question 6

Question 7

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Question 8

Question 9

Question 10

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Question 11

Question 12

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2.4 Detailed Analysis of the Survey
▪ Question: Select your age group
Analysis: The responder included people from all age groups.
• 50% of them were from the age group of 12-20
• 26.8% of them were from the age group of 21-30
• 17% of them were from the age group of 31-50
• 6.2% of them were of age 50+

▪ Question: Your gender

Analysis: With a male percentage of 59.8% and a female percentage of 39.3%., the survey
responses had a quite good male to female ratio. While .9% of the responders chose not
to disclose their gender.

▪ Question: What’s your Occupation?

Analysis: As we were targeting to reach a wide variety of professions, we received
responses from a total of 10 different professions which include Students (67.9%),
Working professionals (15.2%), Businessmen (5.4%), Government Job people (1.8%),
Homemakers, Freelancers, Agriculturist, Author, Retired people, etc.

▪ Question: Where do you live?

Analysis: We were targeting Tier-1 & Tier-2 cities for the launch of ADNATS. Also, through
the survey, we concluded that 32.1% of our responders live in the Tier-1cities (Metro
cities) while a majority of them are from Tier-2 cities (47.3%) and 20.5% live in Tier-3
cities.

▪ Question: What genre of products are you interested to buy?

Analysis: We needed to figure out the products that our customers are most keen to
purchase so that we can have a clear view of their choice and provide them the best
possible discounts.
Through the survey, we concluded that the majority of people want to order food (75%).
Next, there is close competition between electronics (64.3%) and groceries (61.6%).
38.4% of the people want to purchase healthcare products and only 28.6% want to
purchase beauty products.

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▪ Question: Which platform do you prefer for shopping?
Analysis: As we expected that during the ongoing COVID-19 pandemic, people prefer
online shopping. Our survey also gave the same results with 74.1% of people opting for
online shopping and only 25.9% responder opting for offline shopping.

▪ Question: Which payment method do you prefer?

Analysis: Through the survey, we realized that the maximum number of people (46.4%)
opted for cash on delivery as their preferred payment method, while 23.2% choose
debit/credit card, 19.6% UPI, and 10.7% opted for 2allets. Thus, here we conclude that
keeping COD as a payment option is essential. Also, we can use Digital payments on
delivery.

▪ Question: What should be the range of delivery charges for multiple orders at the
same time?
Analysis: With this question, we concluded that people preferred fewer delivery charges
over less delivery time, with 56.3% of people choosing “₹8 / kilometers and Guaranteed
delivery in 60 min”, and 30.4% of people choosing “₹10 / kilometers and Guaranteed
delivery in 40 min”, while only 13.4% the respondents choosing “₹9 / kilometers and
Guaranteed delivery in 50 min”. As our business model focuses on lower delivery costs
through our “Multitasking Model”, our customers also want that.

▪ Question: What problems do you face while ordering online?

Analysis: Through this survey, we concluded that there are two major problems faced by
the people that is 1) High Delivery Cost (49.1%) 2) Managing Multiple apps (48.2%). Our
Start-up mainly focuses on these problems, by our Multitasking model we aim to reduce
the delivery cost and we also aim to provide all the services on a single platform. Other
major problems faced by the responders were slow delivery speed (44.6%), Unclear
return and guarantee policy (42%), inefficient way to collect user feedback (25.9%) &
untrained delivery persons (10.7%).

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▪ Question: Have you ever forgotten some item at home and thought of a service that
could deliver it to your location?
Analysis: As we aim to provide item delivery and pickup services to our customers, we
wanted to know that people need it or not and we concluded that 55.4% of the
respondents want a service in which they can get their items picked up from their homes
and delivered right into their hands. 21.4% of the responders choose to go back on their
own to get it while 16.1% of people will ask their family members to get it, and 7.1% of
respondents claim that they “never forget anything”.

▪ Question: Would you buy a Premium Membership if you are provided special
services like Faster Delivery, Extra Discounts, Coupons for different platforms, etc.
Analysis: 66.1% of the responders choose that they would love to be a premium member
and enjoy the benefits while 33.9% choose that they are fine without the premium
membership.

▪ Question: Would you prefer a single app for all the services like ordering food,
buying groceries, cab service?
Analysis: The main motive of ADNATS is to provide all the services to the people in a
single place, our responders also choose for the same. A whopping 80.4% of the
responder want a single app for all their needs while 19.6% said that they are happy with
multiple apps. This gives us confidence that people are going to prefer our services.

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2.5 Conclusions of the Survey
The major takeaways from the survey are as follows:
• People from all the occupation are interested to get a platform like ADNATS
• We should focus on starting ADNATS in the Tier-2 cities first.
• People nowadays prefer to buy things online.
• As we aim to deliver groceries to the people from the stores of their choice, we
conclude from the survey that people prefer to order groceries online rather than
going out to purchase them during the ongoing COVID-19 pandemic.
• Other products that people like to order online are food products.
• We conclude that keeping COD as a payment option is very necessary also, we can
use digital payments on delivery.
• People preferred low delivery cost over less delivery time, our business model
focuses on lower delivery cost through our “Multitasking Model”.
• We saw that there are two major problems faced by the people:
1. High Delivery Cost
2. Managing Multiple apps
Our Start-up mainly focuses on these problems. By our multitasking model, we aim
to reduce the delivery cost and we also aim to provide all the services on a single
platform, thus, people are going to use our services.
• Also, we aim to provide item delivery and pickup services to our customers, we
wanted to know that people need it or not and we observed that responders want
a service in which they can get their items picked up from their homes and
delivered right into their hands.
• The main motive of ADNATS is to provide “all the services under a single umbrella”
so that the people don’t have to manage multiple apps and can order all the
services on a single app thus reducing their delivery cost as one rider will do
everything. Through the survey, we concluded that people want an app that offers
all the services in a single place.
• Through the survey, we conclude that the services we are aiming to provide are
much needed.

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 CHAPTER 3: FINANCIAL MODEL

3.1 Cost Structure

Initial Investment

S. No. Expense Amount (₹)

1. App Development 35,000

2. Web Development 29,000

3. Bikes 10,00,000

4. Company Registration 1,10,000

5. Land 20,00,000

6. Infrastructure 2,00,000

TOTAL ₹33,74,000

Table 1: Initial Investment

3.2 Revenue Structure

Year 1st Year (₹) 2nd Year (₹) 3rd Year (₹)

Revenue Generated 98,36,000 1,96,72,000 4,56,88,240

Table 2: Revenue Structure

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 3.3 Profit & Loss Statement

EXPENSES 1st Year (₹) 2nd Year (₹) 3rd Year (₹)

App Maintenance 25,000 30,000 40,000

Web Maintenance 20,000 25,000 36,000

Hosting 15,000 15,000 15,000

Domain Service 1,050 1,050 1,050

(adnats.com)
Database Management 50,000 70,000 1,25,000

Advertisement 1,20,000 1,50,000 2,00,000

Operational Expenses 4,00,000 5,00,000 6,00,000

Salaries 26,00,000 32,00,000 43,00,000

Fuel 3,00,000 5,25,000 10,50,000

Miscellaneous 6,00,000 7,00,000 10,00,000

TOTAL ₹42,41,050 ₹52,16,050 ₹73,67,050

Revenue Generated ₹98,36,000 ₹1,96,72,000 ₹4,56,88,240

NET PROFIT ₹55,94,950 ₹1,44,55,950 ₹3,83,21,190

Table 3: Profit and Loss Statement

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 3.4 Cash Flow Statement
1st Year (₹) 2nd Year (₹) 3rd Year (₹)
CASH AT 0 + 45,20,950 + 1,74,26,900
BEGINNING
OF YEAR
CASH FLOW +55,94,950 +1,44,55,950 +3,83,21,190
FROM
OPERATIONS

CASH FLOW INVESTMENT +28,00,000 INVESTMENT 0 INVESTMENT 0

FROM FROM FROM FROM

FINANCIAL INVESTORS INVESTORS INVESTORS
ACTIVITIES
RETURN TO -5,00,000 RETURN TO -8,00,000 RETURN TO -15,00,000

INVESTORS INVESTORS INVESTORS

TOTAL +23,00,000 TOTAL -8,00,000 TOTAL -15,00,000

CASH FLOW -33,74,000 -7,50,000(Bikes) -17,00,000 (Bikes)

(Initial Investments)
FROM
INVESTING
ACTIVITIES
NET INC/DEC + ₹ 45,20,950 + ₹ 1,29,05,950 + ₹ 3,51,21,190
IN CASH

CASH AT END + ₹ 45,20,950 + ₹ 1,74,26,900 + ₹ 5,25,48,090

OF THE YEAR

Table 4: Cash Flow Statement

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CHAPTER 4: REFLECTIONS

Perhaps the best test of a man’s intelligence is his capacity for making a summary
-Lytton Strachey

We discovered that being highly prepared while beginning a company is crucial. It all
began as a roundtable discussion. While discussing we began paying close attention to
particular topics. The initial step was to figure out what kind of business we wanted to
establish. Here, we should recognize what would help both ourselves and society. We felt
confident that team theory is applicable in reality after researching a group. We were
optimistic about our ability to connect the research and theory we had learned in this
course. We learned how to cope with challenges in an entrepreneurial venture by
studying some of the basic traits which include marketing, publicity, finance management,
and leadership qualities.

Key qualities learned during our business venture were:

• Discover/create and evaluate opportunities.
• Identify various stakeholders for the idea & doing a value proposition for the same.
• Developing a financial model of our business venture.
• How to be prepared for any competition in the market.
• Development of soft skills, i.e., how to pitch your ideas to investors.
• Fundamentals behind an entrepreneurial personality.

While working on this project we realized that one should be prepared for unfavorable
outcomes at any time.

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