Lean Start-up Management

MGT1022
Slot: TE1

Under the guidance of

Prof. SEETHA RAM V.

Project entitled
Electricity conserving system using sensors

Group members
M.SAI TEJA - 16BEC0053
PRAKHAR BINAYAK - 16BCL0096
VAIBHAV JAISWAL - 16BCL0288
G PRAVEEN KUMAR - 16BCL0402
AJAY .M - 16BME0131
VENKAT SREEVATSAV – 16BEC0628
 CERTIFICATE

This is to certify that the work entitled “Electricity conserving using

sensors” submitted by M.SAI TEJA - 16BEC0053, PRAKHAR
BINAYAK - 16BCL0096, VAIBHAV JAISWAL 16BCL0288
G PRAVEEN KUMAR - 16BCL0402, AJAY .M - 16BME0131
VENKAT SREEVATSAV – 16BEC0628 has been carried out under my
supervision in partial fulfilment of the requirements for the Degree of
Bachelor of Technology (B.Tech.) at Vellore Institute Of Technology,
Vellore and this work has not been submitted elsewhere for any other
academic degree to the best of my knowledge.

Place: Vellore
Date: 29-04-2019

Signature of Faculty
SEETHA RAM V
 ACKNOWLEDGEMENT

We wish to express our profound gratitude and indebtedness to Dr.

SEETHA RAM V. assistant Professor, Vellore Institute of
Technology, Vellore, for introducing the present topic and for his
inspiring guidance, constructive criticism and valuable suggestions
throughout this work.

We would also express our gratitude to all the Faculty members of

Electrical Engineering Department, Vellore Institute of Technology,
Vellore, for their guidance and the support they have provided us.

Last but not least, our sincere thanks to all our friends & seniors who
have patiently extended all sorts of help for accomplishing this
undertaking.

M.SAI TEJA - 16BEC0053

PRAKHAR BINAYAK - 16BCL0096
VAIBHAV JAISWAL - 16BCL0288
G PRAVEEN KUMAR - 16BCL0402
AJAY .M - 16BME0131
VENKAT SREEVATSAV – 16BEC0628
 ABSTRACT

Electricity is one of the basic necessities upon which our world is

dependent. Nowadays there is enormous wastage of electricity by us.
The drastic pace at which we continue to consume electricity will
only make providing it difficult over the long term. Shortage of
electricity may lead to many problems that will be faced by us in
future. Due to this day by day the demand for electricity is increasing
thus increasing the cost per unit on electricity. So planned to make a
business out of it by saving electricity.
Demand of the most important resource and its increasing cost helps
us in creating a good market for our product ensuring the stability of
our start-up.
Our idea is to create an electronic component that helps us to save the
electricity in our homes, since household are the places with major
waste of electricity and households provide good market. The
component has an ultra-sonic sensor that counts the number of
persons entering and leaving the house thus when all the people left
the room the microcontroller takes the charge and switches off the
current supply to the room saving electricity.
Background
Electricity is an integral part of civilized society. All of us depending
on the electricity in such an extent that even one hour power-cut can
stop momentum of our life. But also electricity has prominence in the
view of country economic growth for the development of industrial,
agriculture and infrastructure sectors.
Being India as world's third largest producer of electricity(5% of
world total) with installed capacity of 250.256GW (till july 2017) yet
country is facing energy deficit of 6.0% to 6.3%(till June, 2016) and
still thousands of villages are deprived from the electricity, millions of
people are living their life under the old age lantern during night. If
we see the average Per-capita Energy Consumption (PEC) of India, It
is just 917 kWh (2016-17)[3] & which is even lesser than the
worldwide average PEC of 2600 kWh.

Some problems due to lack of electricity

Increased Carbon Footprint
Increased risk of climate change
Higher Energy Costs
Problem in Industrial development
Decline in standard of living
Increased diesel generators. They cause rise in pollution

These are some of the many problems caused due to the lack, scarcity
or wastage of current.

The only way to prevent electricity shortage and any future problems
related to current, we should start saving it.
So we will implement our idea to save the electricity in households,
which is the major electricity sink.
Our idea
We have observed that there is wastage of electricity in household as
we are using the fans, bulbs but we are not switching it off that leads
to wastage in electricity.
By taking this in mind we have come to an idea to save electricity in
resenditial areas.
We have thought about a product that will break the connection of
electricity in a particular room when there is nobody in the room and
if someone enters in the then then again the connection is joint to the
main electricity line.
We will use sensors in the doors to count or to detect the persons
entering and leaving the room.

Working
We will install the sensors in the door of every room in the house
which will count the number of people entering and leaving the room
.When there is no body in the room then automatically a command
will be given to stop all the electric in the room which will disable all
the appliances. And when someone enters the room the sensors
detects it and then a command is given and then the electricity of the
room is connected to the main supply. This is lead to less wastage of
electricity.
HOW? How is our idea different from smart cities?
Our idea is different from smart city because in smart houses we have
to install every hi-tech appliance which not affordable by all and also
in a pre-constructed houses it can’t be installed.

Firstly the house must be demolished then it must be reconstructed

with the proper process. Smart houses maintenance is also very high.
In our idea we are just installing sensors and microcontroller to
complete the circuit which will not cost a lot.
Our product is safe and it also have a low maintenance cost that is
affordable by all families.
WHY? Why should we save electricity by using our idea

So, due to the above mentioned reasons even if smart homes are
capable of saving electricity the cant be used by residentially by
everyone.
As electricity is one of the most important resources and the one of
the major sources COAL is non-renewable energy there is are high
chances where we suffer from current cuts and current deficiencies.
So, we propose a smart electronic system to control the electricity
usage in homes where we observe a lot of electricity wastage.
Due to the cost of electricity which is more and may increase in near
time due to deficiency this saving system can be made into a huge
business and it will also be a social service.
LOW cost, safety and easy installation attracts people toward it and
can make good business.
Market Survey:
There are some products in the industry which can save electricity.the
difference between our product and the other is that our product is
cost efficient when compared. Our idea is very simple and installation
of our product doesn’t need more work and time.
Costomers/consumers:
People will definetely show interest in our product as it conserves
electricity which save money.due to the scarcity of electricity there is
definitely a need to save the the electricity. As the consumers will
look for energy saving products to help the environment and save
money, our product will definitely be worth the price to help them
live green and save money. In future I think this product will be the
important appliance that every home should have as it save electricity.
The other product in the market which can conserve electricity is
“smart home technology”.
Smart home technology is technology which can be installed during
the construction of the house.

For the product requirements we have surveyed around 60 families

asking various types of questions regarding the wastage of electricity
and our idea

The response we got were:-

From this response we can get an idea that there is wastage of
electricity in the homes and people can’t do anything about it.

This response states that if the around 85% people are willing to give
the money for saving daily electricity wastage.
As electricity wastage leads to increase in the per unit cost of
electricity leading loss of electricity as well as wastage of money.

According to your response our idea the is being liked by the people
and they have a positive response .
From this response we have a idea that around 70% of the people are
intrested in our products and if they get satisfied they will buy the
product.
From the survey we conducted we have a rough idea that our product
will be used by the families in their homes.
The factors taken into consideration are:-
 Materials and supplies
Location
Engineering and Technology

Materials and Supplies:

Getting the requirements parts for sensor from micro ancillaries like
Arduino , ultra sonic sensor, LCDs, I2C, Breadboard and Jumping
wires. We will be buying from Joseph Electronic industry with a
discount of 20%.

Labour Requirements
At starting we will make the product by own and in future if we get a
big order then we will consult the help of workers.
Engineering and Technology:
Initially we are going to buy readymade parts like Arduino , IR
sensor, LCDs, I2C, Breadboard and Jumping wires. When we expand
our business we are going make ourselves.
Finincail estimates
Arduino Uno – Rs: 600
IRSensor – Rs: 250
LCD – Rs: 200
I2C – Rs: 300
Bread board – Rs: 150
All connecting wires – Rs: 100
Cost for building the electronic component is 1600/-
We will add the installation charges 1000/-

As per our product is concerned the expected value that we can have
for a single product will be around Rs 4000 (including the installation
charge) with a profit margin of 35 PERCENT
 Technical model
 Arduino (micro controller)
 IR sensor
LCD (16 x2 display)
 I2C – serial interfacing board
 Breadboard
 Jumper wires

Arduino uno
Arduino is an open source programmable circuit board that can be
integrated into a wide variety of makers pace projects both simple and
complex. This board contains a microcontroller which is able to be
programmed to sense and control objects in the physical world. By
responding to sensors and inputs, the Arduino is able to interact with a
large array of outputs such as LEDs, motors and displays. Because of
its flexibility and low cost, Arduino has become a very popular choice
for makers and makerspaces looking to create interactive hardware
projects.
In this project we use this microcontroller to keep the count of the
number of persons entering and leaving. It stores the number of
persons entering by increasing the count variable with every entry and
decreases its count variable value with every exit by creating an
interrupt created by the sensor.
When the interrupt is created it on/off the current according to the
code written.
It is the one that controls the electricity according to the program
compiled.

IR Sensor module

An infrared sensor is an electronic device that emits in order to sense

some aspects of the surroundings. An IR sensor can measure the heat
of an object as well as detects the motion. These types of sensors
measures only infrared radiation, rather than emitting it that is called
as a passive IR sensor
When any one enters in the room, IR sensor will get interrupted by
the object then other sensor will not work because we have added a
delay for a while.

In our model we use this sensor to detect the entries and exit. This
interference can be identified by the sensor when it receives the
reflected IR waves it detects the reflected waves thus conforming the
interference.
When the reflected waves are identified the by the sensor it sends an
interrupt to the Arduino which is read by it as a person entry.

Circuit Explanation

There are some sections of whole visitor counter circuit that are
sensor section, control section, display section and driver section.
Sensor section: In this section we have used two IR sensor modules
which contain IR diodes, potentiometer, Comparator (Op-Amp) and
LED’s. Potentiometer is used for setting reference voltage at
comparator’s one terminal and IR sensors sense the object or person
and provide a change in voltage at comparator’s second terminal.
Then comparator compares both voltages and generates a digital
signal at output. Here in this circuit we have used two comparators for
two sensors. LM358 is used as comparator. LM358 has inbuilt two
low noise Op-amp.

Control Section: Arduino UNO is used for controlling whole the

process of this visitor counter project. The outputs of comparators are
connected to digital pin number 14 and 19 of arduino. Arduino read
these signals and send commands to relay driver circuit to drive the
relay for light bulb controlling. If you find any difficulty in working
with relay, check out this tutorial on arduino relay control to learn
more about operating relay with Arduino.

Display section: Display section contains a 16x2 LCD. This section

will display the counted number of people and light status when no
one will in the room.

Relay Driver section: Relay driver section consist a BC547 transistor

and a 5 volt relay for controlling the light bulb. Transistor is used to
drive the relay because arduino does not supply enough voltage and
current to drive relay. So we added a relay driver circuit to get enough
voltage and current for relay. Arduino sends commands to this relay
driver transistor and then light bulb will turn on/off accordingly.
Visitor counter circuit Diagram

The outputs of IR Sensor Modules are directly connected to arduino

digital pin number 14(A0) and 19(A5). And Relay driver transistor at
digital pin 2. LCD is connected in 4 bit mode. RS and EN pin of LCD
is directly connected at 13 and 12. Data pin of LCD D4-D7 is also
directly connected to arduino at D11-D8 respectively. Rest of
connections are shown in the below circuit diagram.

Arduino code
#include<LiquidCrystal.h>
LiquidCrystal lcd(13,12,11,10,9,8);
#define in 14
#define out 19
#define relay 2
int count=0;
void IN()
{
count++;
lcd.clear();
lcd.print("Person In Room:");
lcd.setCursor(0,1);
lcd.print(count);
delay(1000);
}
void OUT()
{
count--;
 lcd.clear();
lcd.print("Person In Room:");
lcd.setCursor(0,1);
lcd.print(count);
delay(1000);
}
void setup()
{
lcd.begin(16,2);
lcd.print("Visitor Counter");
delay(2000);
pinMode(in, INPUT);
pinMode(out, INPUT);
pinMode(relay, OUTPUT);
lcd.clear();
lcd.print("Person In Room:");
lcd.setCursor(0,1);
lcd.print(count);
}
void loop()
{
if(digitalRead(in))
IN();
if(digitalRead(out))
OUT();
if(count<=0)
{
lcd.clear();
digitalWrite(relay, LOW);
lcd.clear();
lcd.print("Nobody In Room");
lcd.setCursor(0,1);
lcd.print("Light Is Off");
delay(200);
}
else
digitalWrite(relay, HIGH);
}
Code compilation without any errors.

Circuit Hardware
Financial model

https://www.cgtmse.in/schemes.aspx

https://www.cgtmse.in/about_us.aspx - reference for the mention financial scheme

choosed by us.

By the bank
Before approaching to bank we have to make several covers and
models to show banks about
- Why there is need of this product
- Is the people interested
- Is this product will make profit
The bank will then decide whether to provide them with loans or not
As per the scheme that if it’s a start-up then the bankers will take that
idea to the government and government will take the grantee for some
percentage of amount as to enhance the start-up ideas.

If the bank accepts the idea then they will see various things

- Like what is the product

- What is the cost of making in product
- If the parts of the product are imported or not
- What is the area in which the product is made
- In what quantity the product is made
- Whether the loan amount demanded by us is appropriate or not

There are two types of loan that are provided by the bank
(I) For purchase of material and other vehicles and stuffs
(II) For labour work and bills

Banks gives loans on the project idea that are propose

Crowdfunding is also an option
Self funding
Investors

Venture Capitalists

CGTMSE coverage
There is a need for this product as it saves electricity and electricity is
an important part of our lives.

By our google forms people had shown intrest in our idea about that
saving electricity using sensors.
We think that this product will make profit as it saves the
consumption of electricity and also its save the extra money that is
spend on the electricity bill.

Bank will see the product as it is small model used for household
purpose that saves electricity and money.
The cost of making 1 product which will be used for 1 room will be
around Rs 5.5k-6k.
No, the parts that are required to make the product are available (they
are not imported)
A small factory outlet will be established or made on which the work
will be done
Firstly we are aiming for around 1000 products as it is a startup and
required amount will be around 60 lakhs.

Venture Capitalists are those who look for the persons who is starting
his who business and if they like the idea they will invest in their idea.
Availability of bank credit without the hassles of collaterals / third
party guarantees would be a major source of support to the first
generation entrepreneurs to realise their dream of setting up a unit of
their own Micro and Small Enterprise (MSE). Keeping this objective
in view, Ministry of Micro, Small & Medium Enterprises (MSME),
Government of India launched Credit Guarantee Scheme (CGS) so as
to strengthen credit delivery system and facilitate flow of credit to the
MSE sector. To operationalise the scheme, Government of India and
SIDBI set up the Credit Guarantee Fund Trust for Micro and Small
Enterprises (CGTMSE).

Legal steps to be followed

Starting a new business has always been a challenging and exciting
process. Here’s a step-by-step guide to starting our business in India:

1. Obtain Director Identification Number (DIN)

Obtain the provisional DIN by filing application Form DIN-1 online.

The application form must then be printed and signed and sent for
approval to the ministry along with proof of identity and address.
Upon verification and approval, a permanent DIN is issued.

2. Obtain Digital Signature Certificate

The digital signature certificate can be obtained from one of six

private agencies authorized by MCA 21. Company directors must
submit the prescribed application form along with proof of identity
and address.

3. Reserve the company name online

Company name approval must be done electronically. The applicant

can check the availability of the desired company name on the MCA
21 web site. A maximum of 6 names may be submitted. Once
approved, the selected name appears on the website.
4. Stamp the company documents

The request for stamping the incorporation documents should be

accompanied by unsigned copies of the Memorandum and Articles of
Association (MAA), and the payment receipt. The Superintendent
returns the copies, one of which is duly stamped, signed, and
embossed. Then the MAA must be signed by the company promoters
and required information filled in their own handwriting.

5. Get the Certificate of Incorporation

Forms e-form 1; e-form 18; and e-form 32 are required to be

electronically filed on the website of the Ministry of Company
Affairs: Scanned copies of the consent of the initial directors, and also
of the signed and stamped form of the MAA must be attached to Form
1. One copy of the MAA, Articles of Association, Form 1, Form 32,
Form 18 and the original name approval letter, consent of directors
and stamped power of attorney must be submitted to the Registrar of
Companies. The certificate of incorporation is sent automatically to
the registered office of the company by registered mail.

6. Make a seal

Companies require a seal to issue share certificates and other

documents. The cost depends on the number of words to be engraved,
the number of seals required, and the time period for delivery.

7. Obtain a Permanent Account Number (PAN)

The PAN application is made using Form 49A. After PAN is obtained
a printed PAN card would be delivered. The application for PAN can
also be made online but the documents still need to be physically sent
for verification.
8. Obtain a Tax Account Number (TAN)

The application for TAN must be filed using Form 49B and submitted
at any TIN Facilitation Center. After verification of application, the
same is sent to the Income Tax Department and the TAN is issued.
The application for a TAN can be made either online through the
NSDL website or offline.

9. Register with the Office of Inspector, Shops and Establishment

Act (State/Municipal)

A statement containing the employer’s and manager’s names and the

establishment’s name, postal address, and category must be sent to the
local shop inspector with the applicable fees. Establishments must be
registered within 30 days of the opening of the business.

10. Register for GST

Every business whose Annual turnover exceeds Rs 20 lakh (for

special states, the amount is Rs 10 lakh) has to register for GST.
Please go to the GST portal and follow the procedure instructed.

11. Register for Profession Tax at the Profession Tax Office

(State)

According to section 5 of the Profession Tax Act, every employer

(not being an officer of the government) is liable to taxation and shall
obtain a certificate of registration from the prescribed authority. The
company is required to apply to the registering authority using Form1.

12. Register with Employees’ Provident Fund Organization

(National)

The employer is required to provide necessary information to the

concerned regional Provident Fund Organization (EPFO) in the
prescribed manner for allotment of Establishment Code Number. No
separate registration is required for the employees.
13. Register for Medical Insurance

Registration is the process by which every paid employee is identified

for insurance purposes and their individual records are set up for
them. As per the Employees’ State Insurance (General), Form 01
must be submitted by the employer for registration after which the
Employer Code Number is issued.

Once our business is off the ground, we will need to sell our range of
products too. One of the most profitable ways is to sell online is
Amazon keeping its vast experience in online sales under
consideration.
14. Certification of Safety from the Electricity Department
A safety officer will come and monitor the electric installation in
order to check defects if any or other related issues. If everything is
found as per the requirement, he/she will issue a certificate of safety.
Market model
Marketing is the study and management of exchange relationships.
Marketing is the business process of creating relationships with and
satisfying customers. With its focus on the customer, marketing is one
of the premier components of business management.
The 'marketing concept' proposes that in order to satisfy the
organizational objectives, an organization should anticipate the needs
and wants of potential consumers and satisfy them more effectively
than its competitors.
Given the centrality of customer needs and wants in marketing, a rich
understanding of these concepts is essential:
Needs: Something necessary for people to live a healthy, stable and
safe life. When needs remain unfulfilled, there is a clear adverse
outcome: a dysfunction or death. Needs can be objective and physical,
such as the need for food, water, and shelter; or subjective and
psychological, such as the need to belong to a family or social group
and the need for self-esteem.
Wants: Something that is desired wished for or aspired to. Wants are
not essential for basic survival and are often shaped by culture or
peer-groups.
Demands: When needs and wants are backed by the ability to pay,
they have the potential to become economic demands.
The marketing concept we adapt for our product is Unique Selling
Proposition(USP)
The unique selling proposition (USP) or unique selling point is a
marketing concept first proposed as a theory to explain a pattern in
successful advertising campaigns of the early 1940s. The USP states
that such campaigns made unique propositions to customers that
convinced them to switch brands. The term was developed by
television advertising pioneer Rosser Reeves of Ted Bates &
Company. Theodore Levitt, a professor at Harvard Business School,
suggested that, "Differentiation is one of the most important strategic
and tactical activities in which companies must constantly engage."
The term has been used to describe one's "personal brand" in the
marketplace. Today, the term is used in other fields or just casually to
refer to any aspect of an object that differentiates it from similar
objects.

The USP concept has become one of the eight broad approaches to
creative executions in advertising. The USP approach is
recommended where the product category is characterised by high
levels of technological innovation. A clear USP helps consumers to
understand differences between brand offerings in a category, and
may also help consumers to form a positive attitude towards the brand
and may ultimately contribute to improved levels of brand recall.
We chose this concept because of our product similarities with the
Smart Cities project.
USP’s OF OUR PRODUCT:
1. Affordability: we have to install every hi-tech appliances in
smart houses which is not affordable by all.
2. Easy installation: Smart house can’t be installed in pre
constructed houses. Whereas our product installation is easy.
3. Less/No maintenance: Smart houses maintenance is very high.
Whereas our product maintenance is negligible.
4. Same outcome: smart homes are capable of saving electricity
the cant be used by residentially by everyone. But our product is
affordable by everyone and gives results nearer to smart home.
And Marketing communication also plays a major role in
marketing.
Marketing communications is an audience-centered activity designed
to engage audiences and promote responses. It is defined by actions a
firm takes to communicate with end-users, consumers, and external
parties.

Marketing communications encompass three distinct subsets, which

are:

Personal sales: Oral presentation given by a salesperson who

approaches individuals or a group of potential customers.

Sales promotion: Short-term incentives to encourage buying of

products.Like coupons or a sale.

Public relations: Organizations undertake PR in order to assure

consumers, and to forestall negative perceptions towards it.
A marketing plan describes business activities involved in
accomplishing specific marketing objectives within a set time frame.
“Freemium” programs: “Spread the word” about your product
or service by allowing target customers to “sample” a bare
bones but representative version of our product / service for
free. Over time you can entice customers to upgrade to the fully
loaded version.
Offer Free Trials. Unlike Freemium models, we will offer
potential customers “Free Trials” of your premium (fully
loaded) products for a specific time period. We think of this as
allowing customers to take our high end offering for a “test
drive” and closing the sale because of their positive user
experience.
Partnerships based on mutually beneficial objectives.: Create
relationships with other organizations in the same market that
are not our direct competitors.

Advertising is a notice or announcement in a public medium

promoting a product.
Via Social Media Networks
One network is equal to one channel:
o Facebook
o LinkedIn
o Twitter
o Instagram
o Snapchat
o Pinterest
Our Own Website
Each method below counts as a single channel:
o Blogging
o Whitepapers
o Podcasting
o Case Studies
Online Marketplace
One network is equal to one channel:
o Amazon
o Alibaba
o Flipkart
o Snapdeal
We have approached a construction company SURYA CONSTRUCTIONS
which is an Hyderabad based construction company that takes lands for
developing, as a part of marketing and business plan.

We have explained our idea to them in our phone conversations and after the
verification of our idea feasibility they have shown a pretty good interest in
implementing our idea in their upcoming projects as they think is will attract
buyers with is technology.

But they asked for the improvement of the technology where we use only one
controller for all rooms instead of separate one for every room, as this is a
possible with further work which will be done through our further meetings.
We also got attention from an electronics manufacturing shop based
in Thirupathi. It manufactures Refrigerator’s and are planning to start
manufacturing a new product. When we explained our idea they
seemed interested and after further explanation on developing the
product with a single controller they were very keen on working with
us.
The SURYA CONSTRUCTIONS who has a company lawyer said us
they can help with any legal issues with the product if needed.
Pros:
 Electricity conservation- lead to less wastage of electricity.
 Easy installation.
 Reduce Annual Electricity Bill.
 Helps in decreasing the growth rate Electricity cost.
 Safe to use.
 Affordable price-Available and Affordable even for Middle
Class people.
 Long lasting

Cons:
 Learning-There may be some learning curve for non-tech savvy
people.
 Fragile Equipment: Proper handling of the sensor is required.
 Reliability and Output: Relatively less reliable than smart homes
project and output energy conservation is less than Smart home
project.
 Proper maintenance is required
 Must be kept away from the kids and water supply
Conclusion
We have found a great way to save electricity and to make a
good business out of it, we also learned many things about the
start-up business, analysing the market, how to get financial
aids and legal rule along with the modern technology.
We already have a couple of partners and with some extra
works on the single microcontroller development of the
product we can turn this into a great start-up in the future.