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Submitted by SOUNDARAJ.V (Reg. No. 3511120032 )

To study the Characteristics and features of Bike Modification Cluster.

To shed light on this cluster which is a silent yet powerful & growing.

We thought it would be difficult to approach these people They have good working skills, but very little outside exposure and education

We had to approach in different way

Creating a more like a friend than a outsider By doing this, we thought we could get the information.

First we approached Monty of Hardeep auto parts who has two wheeler spares shop at GP Road.

With his valuable support, We got few more contacts. Just by getting a link like this, we were able to meet people in this cluster. By doing this, We were successful in getting the information. we confirmed that there are only 10 bike choppers are there in this cluster from Mr.shajakan, who is the two wheeler association secretary

Just to do something different ! Creative ideas that would fetch results ! Analyzed that buying race bikes are expensive and people cannot afford it. By venturing into these kind of creative areas they would also earn profits Could sell the Imported spare parts

Teenagers are the ones who are passionate about modified Bikes. College Students- Main customers. Preferred by 18 22 years old people mostly. The second category is 22-25 years old (rank 2) Modification of bullets are mostly 25 40 years old.

Kind of age category

15-18 years
18-22 years

22-25 years More than 25 years

Partial Modification Between 30 days to 45 days. Complete Modification More than 2 months. Average period of modification between three to five months. Period of most of the bikes modification - More than 3 months. Completion of modification less than 1 years rarely.

Nowadays People can add extra gears through modification.
Do not prefer to modify 150 cc bikes. Come for modification frequently 350 cc bikes. People do modification of more than 350 cc rarely.

Average profit made per Bike by these entrepreneurs were between 20% and 30%. Apart from this they also make business by undertaking repairs and maintenance of various other kinds of bikes.

Rs. 1,00, 000 per bike is spent during a month

Rs. 80, 000 /-

(Cost of spare parts)

Rs. 13,000 /- (All mandatory payments) Rs. 7,000 /- (Cash that goes to the owner)

60 % of the Mechanics get the cash from the owner of the bike as the work progresses 30% get the whole cash in advance and use for the work and 20 % finish all their modifying work

Getting the whole cash in advance Getting the cash as the work progresses Completing the work and then collecting the cash

Mr. Syeds, CBX Racing Comments Niche market is only for valued customers Detailed knowledge regarding the profile of the customer

Started with 5 to a maximum of 10 people. After the business grew, employees were reduced to around 3 or 5. Started their own establishments due to gain experience. Increased employees who had lesser than 5 employees

No seasonal demands. But beginning of the month has more demand than end of the month. Have regular customers who come for modification. During rainy seasons, customers coming up with problems but not for modification.

EFFECTIVE Important aspect of completing the said Project.

Delegates the work to others in the same field such as Cleaner, Tinkerer, Painter and sticker.
Can handle 3-4 bikes at the same time. DRAWBACK Entrepreneur visualizes and understands the customers needs When delegated to others the visualization of the same gets diluted.

Minor setbacks with the timely delivery of bikes

Outsourcing can be made effective when, Entrepreneur - keeps a check on the work done by the outsourcer! Correct as and when the deviations take place from the customers idea of the remodeled bike. Connecting Time with Cash !

Parts which are used for modification are the imported fiber materials from countries such as china, Singapore and Thailand. But most commonly used are the ones which are imported from Bangkok which constitutes 75%. From GP road which is the hub for two wheeler and four wheeler parts as per customer requirements. If the customers feel that they need costlier ones then the mechanics go in for imported parts.

Sometimes it also depends upon the style and design the customer prefers.

Bullets are the only two wheeler which has a metal body the rest of the bikes are all made fiber except for the petrol tank which is a metal. It easy for the mechanics to go about fixing these equipment. Only consideration here is the availability when the whole body is customized.

Major part of business in chindaripet, GP road and pudupet

Bcoz two wheeler spare parts hub is located in GP road.

Central part of chennai. Close to railway station both central and Egmore

Convenient in building up a customer relationship

Government restriction is to work only till 10pm Mechanics needs to work even till 12am to complete a project on time This is due to some seasonal demands Also timely delivery of modified bikes to customers

No need for any advertisements Only few well known bike choppers that people trust in this cluster Popularity - mainly due to the word of mouth. Satisfied customers, indirectly advertise to his friends about the mechanic The modified bikes, parked outside the workshop attracts people

Mostly Muslims and Punjabi community are involved in this cluster ! Very few Hindus are emerging who have worked under them

90 % - Only Entrepreneur's Decision Family business only the head of the family takes the decision. At times the consultation from their wards are considered. Exception Mr. Sujath of CBX Racing consults with all his employees for any decision taken According to him, It is better to consult all the employees before having a business deal.

The common reply from the survey was,

Depends on the trend and demand for modified bikes.

Diversification of this cluster is needed.

Entrepreneurs ward -the passion towards bikes

According to their forecast, the demand will continue, their wards would be interested in taking up this field.
If Yes! He can succeed in this business !!

This cluster is an oligopolistic market, few sellers and few buyers 2000, CBX racing was the market leader The price was based largely on competitors prices! Entrepreneurs co-operate with each other in taking joint actions

Pricing - discussed and decided during the two wheeler association meeting.
Secret price cut which doesnt fetch any demand for them, only the customer satisfaction matters. Keep their bargaining position stronger against the consumer. Everyone has an equal market share in this cluster

Government has a number of rules on two wheelers Traffic policemen catches - Insurance, Registration Copy, and Pollution Check Modified bikes chances are considerably high. Noisy Silencers and the fancy looks attracts the Traffic policemen

Mechanics make sure that they explain their customers regarding the government rules. Customer is not bothered regarding the problems until they get caught with cops! Customers yell and say they are exploited. We asked them whether they get any signed agreement regarding this issue; REPLY - it is all about having trust in their words.

According to our survey,

60% of the Entrepreneurs say that government policies have an impact on their business.

Problem with government policies

Government Policies does't affect their Business

Bikes owner needs to go to RTO to get the bike endorsed from the Chief Inspector. They will check the bikes Chassis number and engine number for verification. The Endorsement charges is Rupees 1500 per bike. Fact - None of the Police inspector accepts - modified bike is safe to ride and often they reject them. No proper rules set by - government for modified bikes. Hence the owner of the bikes, ride the bikes without getting the endorsement.


Choppers are failing to tell their insurer about modification to their bikes either fear the changes would increase their insurance premiums. they do not realize that they need to. A recent review: many of the most common modifications actually have little or no effect on premiums.


Modifications that are likely to be expensive to insure are: Some of the bikes like bullets, during the modification system would increase the premium. Insurance Companies comment : one of the most important principles underlying any kind of insurance is that all relevant information must be passed on to the insurance company. That is the only way an insurer can understand precisely what risks they are covering and calculate a fair price.

80 70 60 50 40 30 20 10 0 1971- 1981- 1991- 2001- Future 1980 1990 2000 2011 years __


Entrepreneurs of this business just dont call themselves a mechanic. Just being a mechanic in this field wont fetch a good market for them Designing a bike is more important to succeed.

This field calls for a lot of imagination and hard work from the part of the entrepreneur

Therefore at all times it is required to stretch their limits of imagination and physical boundaries to the everchanging demands of the market We feel that sooner or later that this would be a flourishing industry in the near future.

Bike modification is the art of shaping the bikes to the customers desired imagination and enabling them to run in Indian roads.