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Business start-up

Vehicle Body Design

Designing Safer Modern Locally Built Commercial Vehicle Bodies

Improving the safety, design, international competitiveness and marketability of locally built commercial vehicle bodies for regional export by providing Product Lifecycle Management (PLM) design consultancy services involving Computer Aided Engineering (CAE) to manufacture low cost, strong, functional, lightweight, durable body structures for our unique harsh regional environment with aesthetic appeal.

Facts

Year of establishment

2006

Sales (US$)
Two years ago:
Last year:
This year (forecast): 60,000
Year 2 (forecast): 100,000
Year 3 (forecast): 220,000
Net profit after tax (US$)
Two years ago:
Last year:
This year (forecast): 25,000
Year 2 (forecast): 40,000
Year 3 (forecast): 90,000
Total number of Employees
Two years ago:
Last year:
This year (forecast): 5
Year 2 (forecast): 8
Year 3 (forecast): 15

How do you expect this to be financed? Please note: the total amount mentioned here should be equal to the total finance needed at the previous question.

Own Contribution in cash 35,000
Loans (debt) 45,000
Share capital that you seek from investors (equity)
Other sources
Total finance needed (US$) 80,000

The Business

What is your product/service?

VBD Automotive Technologies Ltd. is a new concept in the region's transport sector providing consultancy services on all aspects of the regional automotive industry backed by the management’s vast personal experience in the regional and international automotive arena.

Corporate organizations, government institutions, donor agencies, educational establishments, passenger transport companies and cargo hauler transporters in the region now have the opportunity to work with our experienced management team to professionally analyze their transport requirements and review an independent assessment of the range of vehicle types and vehicle body configurations that best suit their applications.

We help the client build their corporate image into the design of their new transport fleet while ensuring their vehicle fleet provides ultimate operational commercial functionality. We guide the client on what is available and achievable within their budget and manage the design, development and delivery of their new vehicle fleet.

We are available to work with environmental institutions in identifying policy, sectoral, training or industrial solutions that would most effectively alleviate the effects of vehicle exhaust emissions in the region and are actively pursuing participation in the growing biofuels industry with an emphasis towards in-edible crop generated biofuels which is important in maintaining the regions food security.

Our aspiration to become Africa’s premier resource for automotive consultancy is backed by our action on investing in internationally competitive technological innovation resulting in the filing of patent applications. This will inspire customers to appoint us to help them meet their innovative corporate objectives.

Safety developments in the regional transport sector is a key driver for our technological innovation which also places us at a technological advantage when assessing the cause and factors that may have contributed to the occurrence of traffic accidents which includes vehicle defect examinations, performance and usage of restraint systems, vehicle standards and dynamics.

We actively participate in motor sport as a capacity building initiative on technology resource for better reliable component and vehicle manufacture. Having previously participated in motor sports events utilizing locally built vehicles we have the drive and experience to assist participants and motor sports organizations in the region.

Explain how you will sell your product/service (marketing strategy) and how you will reach your customers (distribution strategy)?

Our marketing strategy would be to initially sensitize regional franchise dealers of the new PLM services offered by VBD Automotive Technologies and educate them on efforts being made through the project to improve on the product's concept design and build quality to reduce or eliminate the myriad customer complaints they receive with almost each vehicle sold with a local vehicle body.

We would also target key fleet customers who we know have openly expressed the need for this sort of design consultancy service where they can virtually view the completed product to their specification before commissioning manufacture of the vehicle body.

Institutional and Government vehicle tender specification boards would also be sensitized on the projects benefits to their institutions to encourage them to improve on the level of tender specification requirements with our assistance to guide them with concepts designs, engineering specifications and rendered images on what they should consider requesting for in their tenders. We would also managed production of the fleet and work with the local vehicle body builder on implementing PLM solutions developed by our design team.

Marketing firms would be contracted in the third year to expand our customer base further into the region.

What makes your business different/better than your competitors (competitive advantage)?

Currently no industry standard software exists in the region that would allow local vehicle body builders to design and build internationally competitive buses and trucks that would meet international passenger and pedestrian safety regulations due to a lack of crash simulation packages in addition to dynamic stability standards and aesthetics.

The Entrepreneur & Management

Describe the entrepreneur & management

Henry Kamau with 10 years experience in the local and international automotive industry has a BEng (Hons) in Vehicle Design Egineering from the University of Hertfordshire (UK) and an ERASMUS BEng (Hons) in Vehicle Body Design (Fachbereich Fahrzeugtechnik) from Fachhochschule Hamburg (Germany) as well as having worked for Rover Group and IBC Vehicles both in the UK.

Nyaga Kebuchi with over 10 years experience has an MSc in Computer Integrated Engineering from the Loughborough University (UK) which will prove invaluable with the PLM implementation and a BEng in Mechanical Engineering from Imperial College London (UK).

Kioko Muthui has developed several internationally competitive commercial vehicle concepts presented to Mercedes and Scania, Tanzania, his styling flair will ensure we attract clients who want progressive modern commercial vehicle bus and truck bodies. His rendering capabilities will ensure clients get a realistic three dimensional virtual view of their finished product before commissioning its manufacture.

Development

How does your business improve the local living standards (social and environmental)?

The local commercial vehicle body building sector provides almost 100% of both passenger transport vehicles above 25 seater and light to heavy haulage commercial vehicles which combined account for 90% of new vehicles sold in Kenya.
The potential for exports to regional and Southern Africa markets of locally built vehicles is also increasing, however in competition with well built South African manufactured vehicles and “used” imports.
The local transport sector supports employment of a big portion of the manufacturing industry in commercial vehicle body building, CKD vehicle assembly, local content vehicle component supply and supports a large service industry providing franchise retailing, vehicle servicing, imports of low foreign expenditure CKD kits and exports of finished vehicles with substantially high local content.
VBD Automotive Technologies through acquisition of PLM software can increase the competitiveness of the local industry in the region and Southern Africa as well as provide high technology jobs for our university graduates not only in designing competitive products but also implementing PLM strategies with vehicle body builders. Low technology school and college leavers will also benefit from increased employment opportunities for increased local vehicle sales not only in the manufacture of the vehicles and local content supply but also in the related services industries.
We hope with the implementation of this project to raise the bar on local vehicle build and quality standards as well as aesthetics appeal to make our products internationally competitive to a stage where we can envisage exporting locally built vehicles to developed countries as is the case in South Africa today.