3rd part of the ongoing financial project:expenditure section. will be followed by another 2 parts stay tuned. send your queries to : brewindo@gmail.com. check out facebook page : https://www.facebook.com/microbreweryindia/?ref=bookmarks. also follow us on twitter handle: @ritwikbrew . remember to #microbreweryindia check website www.indobrews.com for more information

1. MICROBREWERY IN INDIA:
FINANCIALS
PART 3
CONTD FROM LAST PRESENTATION ON
MICROBREWERY IN INDIA: FINANCIALS PART 2
TOPICS TO BE DISCUSSED IN THIS PRESENTATION:
1. EXPENDITURE VERTICALS (CONTD)
2. LICENSING CHARGES
3. RUNNING COST
4. GESTATION PERIOD
5. RETURN OF INVESTMENT

2. 1. EXPENDITURE
1. EQUIPMENTS
2. RAW MATERAILS
3. SETUP COST
4. RESTAURANT SETUP
5. BAR SETUP
6. CIVIL, MECHNANICAL, ELECTRICAL AND PLUMBING EXPENDITURE
7. SALE/RENT/LEASE OF PROPERTY
8. DECORATION
9. UTILITIES
10. STAFF SALARY
11. KITCHEN SETUP (CONTD)
12. FOOD MATERIAL COST
13. LIQUOR COST
14. UTENSILS, CUTLERY, CROCKERY ETC
15. BRAND MARKETING COST

3. 11. KITCHEN SETUP
• FOLLOWING ARE THE VERTICALS TO BE CONSIDERED
FOR KITCHEN SETUP:
1. COMMERCIAL HIGH FLAME GAS BURNERS: 4 NOS
2. GAS FIRED FRIERS: 2 NOS
3. COMMERICAL LARGE PIZZA OVEN: 1 NO
4. CLAY TANDOOR: 1 NO
5. MEAT GRINDER: 1 NO
6. KITCHEN SHELF :2 NOS
7. DEEP FREEZER COMMERCIAL: 2 NOS
8. ELECTRIC KITCHEN EXHAUST: 1 NO

4. 9. WORKING TABLE: 3 NOS
10. MICROWAVE OVEN: 1 NO
11. UTENSILS: AS PER REQUIREMENT
12. LADELS, SPOONS ETC: AS PER REQUIREMENT
13. SPICE CABINET: 1 NOS
14 STORAGE CONTAINERS: AS PER REQUIREMENT
15. MIXER, JUICER & GRINDER: 1 NO
16. CUTTING AND CHOPPERS: AS PER REQUIREMENT
17. GAS BANK: MINIMUM 4 COMMERCIAL LPG STORAGE
ALONG WITH PIPELINES
18. ICE CREAM FREEZER: 1 NO (SUPPLIED BY ICE CREAM
COMPANY)
• FINAL TOTAL : RS 5 LACS APPROX

5. 12 FOOD COST
• TYPICAL MENU CONSISTS OF:
• STARTERS
1. CHINESE STARTERS VEG/NON VEG (CHICKEN/FISH)
2. TANDOOR STARTERS VEG/NON VEG(+MUTTON)
3. SEA FOOD STARTERS (FISH/CRAB/PRAWN ETC)
4. AMERICAN : BURGERS & SANDWICHES (VEG/NON VEG)
5. ITALIAN: PIZZA & PASTA (VEG/NON VEG)
6. SIZZLERS (VEG/NON VEG)
7. NACHOS & FRENCH FRIES
8. BEER BATTER FRIED STARTERS (VEG/NON VEG)
9. THAI: MOMO –FRIED/STEAMED (VEG/NON VEG)
10. PLATTERS (VEG/ NON VEG)

6. • SALADS (VEG/NON VEG)
• SOUPS (VEG/NON VEG)
• MAIN COURSE:
1. CHINESE: NOODLES & FRIED RICE ( VEG/NON VEG)
2. BIRIYANI (VEG/ NON VEG)
3. CHINESE GRAVY : VEG/NON VEG- SEAFOOD/CHICKEN
4. INDIAN GRAVY : VEG/NON VEG
5. INDIAN BREAD: NAAN/ROTI
• DESERT
1. CAKE BASED: CHOCOLATE/NON CHOCOLATE
2. ICE CREAM BASED
3. INDIAN SWEETS
4. MILK BASED

7. • MINIMUM STANDARD FOOD RAW MATERIAL INVENTORY
PER MONTH: RS 2 LACS
• ANNUAL INVENTORY COST: RS 24 LACS
• MORE PROMINANCE GIVEN TO STARTERS AS THEY WORK
WELL WITH BREWPUB CONCEPT AND ARE MORE COST
EFFECTIVE
• WEEKLY 1 BRUNCH AND 2 BUFFETS ARE ADVISED FOR
WEEKENDS
• PARTY AND CORPORATE BOOKINGS ARE ALSO BENEFICIAL
WITH COMBINED FOOD AND BEER/LIQUOR FIXED MENU
• BEER AND FOOD COMBO DEALS ARE ALSO POPULAR
• OVER EXPERIMENTATION IS NOT ADVISED. A MIX OF
CONTINENTAL, EUROPEAN, AMERICAN, ASIAN AND INDIAN
MENU ALONG WITH COMMON DISHES TO COMPLEMENT
INDIAN TASTE PALLETES IS SURE TO STRIKE RIGHT CHORD
WITH CUSTOMERS

8. • ITS IS ADVISED TO NOT INCLUDE TOO MANY FOOD
ITEMS IN MENU. SLOW MOVING ITEMS TAKE UP
STORAGE AREA AND IF THEY ARE EXPENSIVE MIGHT
LEAD TO HUGE LOSS IF NOT CONSUMED WITHIN
STIPULATED TIME. SAME IS TRUE FOR EXOTIC FOOD
INGREDIENTS
• STATED MENU ITEMS AND THEIR SUB FORMS WILL
PROVIDE A DETAILED 40 -50 ITEM MENU, WITH
VARIATIONS AND OCCASIONAL SPECIAL ITEMS
INCLUDED FOR FESTIVITIES RECOMMENDED BY THE IN
HOUSE HEAD CHEF USING SIMILAR OR FEW NEW
INGREDIENTS ALREADY AVAILABLE IN INVENTORY.
• FOOD PRODUCTION COSTS SHOULD NOT GO BEYOND
22-33% OF SALE PRICE. THIS INCLUDES RAW
MATERIALS, GAS ETC MINUS LABOR.

9. 13. LIQUOR COST
• POPULAR TYPES OF LIQUOR (IMFL: INDIAN MADE FOREIGN LIQUOR)
1. WHISKEY
2. VODKA
3. RUM
4. WHITE RUM
• MOST SUB PREMIUM BRANDS ARE AVAILABLE IN COMMERICAL SIZES OF 1 LTR
• PRICES RANGE AT AN AVERAGE: RS 700/BOTTLE
• CASE SIZES ARE 6 BOTTLES/CASE: APPROX RS 4000/CS
• MINIMUM 30 C/S ORDER IS PRE-REQUISITE PER MONTH, THUS AMOUNTING TO
RS 1.2 LACS/MONTH.
• ANNUAL EXPENDITURE: RS 14.4 LACS
• FREE C/S OR BOTTLES ARE AVAILABLE DURING SPECIAL PROMOTIONS.
• GENERAL SALE PRICE BASED ON PEG WISE SALE IS ESTIMATED TO BE 5-6 TIMES
THAT OF COST PRICE

10. • PREMIUM BRANDS OF SIMILAR TYPES ARE AVAILABLE IN IMFL
BRANDS. E.G. TRIPLE DISTILLED VODKA, SCOTCH, GIN ETC
• AVERAGE PRICES : RS 1500/BOTTLE OF 750 ML
• 6 BOTTLE PER CASE: RS 9000/CS
• 2 C/S PER MONTH RECURRING CONSUMPTION IS ESTIMATED
• THUS AMOUNTING TO RS 18000/MONTH. ANNUAL EXPENDITURE:
RS 2.2 LACS APPROX.
• IMPORTED SUPER PREMIUM LIQUOR BRANDS ARE ALSO AVAILABLE
IN SINGLE BOTTLES OR CASES.
• AVERAGE PRICES : RS 4500 PER BOTTLE.
• MINIMUM MONTHLY CONSUMPTION IS ESTIMATED AT 3 BOTTLES A
MONTH. THUS AMOUNTING TO RS 13500.
• ANNUAL EXPENDITURE: RS 1.6 LACS
• PREMIUM AND IMPROTED BRANDS MOVE SLOWLY WITH THE
STANDARD CONSUMER AND HENCE ARE ADVISED TO BE ORDERED
AS AND WHEN REQUIRED, WITH INFORMED STOCK READY IN HAND
FOR THE POPULAR STYLES/BRANDS

11. • UNDISTILLED ALCOHOL:
1. INDIAN WINE: RED/WHITE/ROSE/SPARKLING.
A. AVERAGE PRICE: RS 1200/BOTTLE
B. 6 BOTTLES/CASE, PRICE: RS 7200/CS
C. 2 C/S ORDER PER MONTH IS ESTIMATED
D. TOTAL MONTHLY EXPNDITURE : RS 14,400
E. ANNUAL EXPENDITURE: RS1.73 LACS
F. OCCASIONAL FOREIGN WINES & CHAMPAGNES
CAN BE INTRODUCED, HOWEVER WINES ARE
RELATIVELY SLOWEST TO MOVE OUTAND HENCE
ARE NOT ADVICED TO KEPT IN LIMITED
QUANTITY.

12. 2. BEER (INDIAN COMMERCIAL LAGER)
A. ARE NOT ADVICED TO BE SOLD IN THE PROJECT AS IT GIVES A
WRONG IMPRESSION AND EATS OUT IN THE STAKE OF CRAFT
BEER SALE.
B. THE PROFIT PERCENTAGE IS MUCH LESS, AS COMPARED TO
LIQUOR SALE MENTIONED BEFORE THIS.
C. AVERAGE BOTTLE PRICE RS 90 FOR 330 ML
D. 24 BOTTLES/CS.PRICE RS 2000/CS
E. AVERAGE DAILY SALE IN PRESENCE CRAFT BEER IS FOUND TOBE ¼
TH OF TOTAL BEER SALE IN AN OUTLET.
F. AVERAGE 6 CS SALE PER DAY. THUS EXPENDITURE: RS 12000.
G. MONTHLY SALE: RS 3.6 LACS. THUS ANNUAL SALE: RS 43.2 LACS
H. ONLY 33% PROFIT ABOVE THE COST PRICE IS ESTIMATED IN
COMPARISON TO CRAFT BEER PROFIT WHICH IS ATLEAST 3 TIMES
THE PRODUCTION COST.
I. COMMERCIAL LAGER SALE WILL THUS BE NEGLECTED IN THE ROI
CALCULATIONS FOR EXCESSIVE INITIAL INVESTMENT AND FOR
OTHER ABOVE MENTIONED REASONS.

13. • OTHER SPECIALITY LIQUOR AND CONCONTIONS
FOR COCKTAILS & MOCKTAILS ARE REQUIRED
• AVERAGE MONTHLY EXPENDITURE : RS 10,000.
ANNUAL EXPENDITURE: RS 1.2 LACS
• READY TO SERVE LIQUOR DRINKS ARE POPULAR
THESE DAYS.
• 330 ML PER BOTTLE PRICED AT RS 100, COME IN
CASES OF 24 BOTTLES. PER CASE PRICE:RS 2400
• 13 C/S ARE SOLD AVERAGE PER MONTH.
• THUS MONTHLY EXPENDITURE: RS 31,200.
ANNUAL EXPENDITURE: RS 3.75 LACS
• THUS FINAL ANNUAL LIQUOR COST (MINUS
BEER): RS 25 LACS

14. 14. CUTLERY/GLASSWARE/CROCKERY/
SERVING ETC
• CUTLERY:
1. SERVING SPOONS
2. TABLE SPOONS
3. SOUP SPOONS
4. DESERT SPOONS
5. FRUIT FORK
6. TABLE FORK
7. TABLE KNIFE
8. PIZZA KNIFE/CUTTER
9. SPATULA
10. TONGS
11. CHOPSTICKS
• MINIMUM 200 PCS OF EACH TO BE ORDERED.
• INITIAL EXPENDITURE RS 10,000

15. • GLASSWARE:
1. BEER GLASSES (3300ML): MINIMUM ORDER 200 PCS.
AVERAGE PRICE RS 50/PC.TOTAL ORDER PRICE: RS 10,000
2. BEER MUGS (500 ML): MINIMUM ORDER 200 PCS.
AVERAGE PRICE RS 80/PC.TOTAL ORDER PRICE: RS 16,000
3. PITCHERS (1.3 LTR): MINIMUM ORDER 30 PCS.AVERAGE
PRICE :RS 150/PC. TOTAL PRICE : RS 4500
4. LIQUOR GLASSES: 100 PCS ORDER.AVERAGE PRICE RS
50/PC.TOTAL PRICE: RS 5000
5. SHOT GLASSES: 30 PCS ORDER.AVERAGE PRICE RS
50/PC.TOTAL PRICE: RS 1500
6. WATER GLASS: MINIMUM ORDER 200 PCS. AVERAGE
PRICE: RS 30/PC. TOTAL PRICE: RS 6000

16. 7. WINE FLUTE: MINIMUM ORDER 20 PCS. AVERAGE PRICE: RS 200/PC.
TOTAL PRICE: RS 4000
8. WINE GOBLET: MINIMUM ORDER 20 PCS, AVERAGE PRICE RS
200/PC.TOTAL PRICE: RS 4000
9. SODA GLASS: ORDER 20 NOS. AVERAGE PRICE: RS 100/PC. TOTAL
PRICE: RS 2000
10. COCKTAIL/MOCKTAIL GLASS: AVERAGE PRICE : RS 250/PC.
MINIMUM ORDER QUANTITY IS 30 PCS. TOTAL PRICE: RS 7500.
• THUS TOTAL BAR GLASSWARE COST: RS 61,000 APPROX TO
BOUGHT INITIALLY.
• IT IS ADVISED TO NOT GO FOR EXQUISITE DESIGNS OR PECULIAR
SHAPES AS ONE BROKEN OR MISPLACED, IT WOULD BE DIFFCULT
TO REPLACE THEM. MOST ITEMS MENTIONED HERE COME IN
MINIMUM ORDER QUANITITY AND HENCE SINGLE PIECE
REPLACEMENT IS NOT AVAILABLE. THUS RESULTING IN EXTRA
EXPENDITURE AS WELL DISRUPUTING THE BRAND IMAGE AND
CONSISTENCY .

17. • CROCKERY AND SERVING :
1. PIZZA WOODEN TRAY: 15 NOS
2. FULL PLATE: 200 PCS
3. QUARTER PLATE: 200 PCS
4. DESERT PLATE:100 PCS
5. KEBAB DISH: 30 PCS
6. SOUP BOWL: 30 PCS
7. GRAVY DISH: 30 PCS
8. STARTER DISH SMALL: 30 PCS
9. STARTER DISH LARGE: 20 PCS
10. INDIAN COPPER HANDI: 30 PCS
11. BREAD AND NACHOS BASKET: 30 PCS
12. LARGE WOODEN SERVING TRAYS: 10 PCS
13. SIZZLER TRAY: 10 PCS
• TOTAL COST ESTIMATION IS APPROX RS 50,000
• THUS INITIAL EXPENDITURE: RS 1.2 LACS APPROX

18. END OF PART 3
THE CONCLUDING PART OF THE FOLLOWING VERTIVAL
PERTAINING TO EXPENDITURE , I.E. BRAND PROMOTION WILL
DISCUSSED IN PART 4.
KINDLY REFER TO PREVIOUS SLIDES FOR DETAILS AND ALSO
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