1. Business
Expansion Plan
RAJAGIRI
Requesting financial assistance for LKR.10.00 Mio.,
repayable over 60 Months, in order to meet the
Renovations taken place in the Hotel-Rajagiri. Funds
will be used to part finance the construction works on
the Take-away outlet on the front side of the hotel and
to expand the existing Reception hall.
2011
3. 3
Our Vision
Our Mission
To be the number one
in highest quality, yet
affordable in hotel
restaurant trade.
We will be the highly
service oriented and the
premier in hotel cafeteria
beyond the customer
expectations, while
managing and expanding
the hotel effectively in a
sustainable manner.
5. 5
BUSINESS PROFILE
Nowadays, occasions such as wedding receptions, parties or conference can be held
anywhere from a favourite neighbourhood restaurant or traditional banquet hall, to
museums or day spa hotels, and even on the high seas.!
Very special occasion like for wedding receptions, first it's always best to shop
around for several locations in closest area to see what's on offer and within budget
and always consider booking your venue at least several months to a year in advance,
say the experts.
First step, of course is determining how many people will be invited, the option of
location sites for photographs and the rates/ package offers. It’s wise to shop around
for the right size wedding hall, also better to think about what reception venue will
best reflect the style and mood of your wedding – formal, formal and fun, or kick-
back casual.?
is the restaurant/ cafeteria with reception hall facilities, located at
Kegall – Avissawella main road which is a idyllic and specious place where anyone
can have fine dining restaurant facilities where the food is served in the indoor or
open-air restaurant as desire with beautifully landscaped quiet surroundings. The
hotel consists of two reception halls; air-condition rooms with cable TV, telephone
with IDD facilities with 24-hours room service.
Two reception halls can be function for Weddings, Home-comings, Conferences etc.,
along with the restaurant/ lodging facilities, ideal for middle & upper class people
who concerned about the fine-cuisines/ warm welcome & better-service/ calm &
quiet/ eco-friendly place yet matches their budget.
Take-Away outlet is on the front side of the main hotel-restaurant and faced to the
Kegall – Avissawella main road, is a very popular among people due to high quality
of the food which is very appetizing with warm and quicker service with affordable
rate.
BACK GROUND OF THE INVESTOR
Mr. Rajapakshe Mohottige Don Naminda Namal Rajapakshe, aged 38-year is the
manager/ proprietor of the Rajagiri-hotel, who is studied in hotel management/ food
& beverage who is also having five years self experience in managing his own hotel
and able to start the hotel-business and able to build it from the grace-root level up
this level.
Rajagiri
7. 7
SUMMARY OF THE BALANCE SHEET/ PROFIT &
LOSS HIGHLIGHTS FOR PAST THREE YEARS.
01/04/10 - 31/03/11
LKR '000
01/04/09 - 31/03/10
LKR '000
01/04/08 - 31/03/09
LKR '000
FIXED ASSETS
Furn & Fitts 665 560 369
Machinery 564 452 282
Vehicles 4,120 2,631 1,030
Land &
Buildings
16,500 4,800 12,370
21,849 18,443 14,051
CURRENT ASSETS
Cash 1,268 854 529
Accounts 825 2,093 525 1,379 228 757
23,942 19,822 14,808
EUITY
Reserves 19,321 17,028 12,604
Add : Net
Profit
4,911 4,574 3,051
24,232 21,602 15,655
Less :
Drawings
3,683 3,430 1,317
20,549 18,172 14,338
CURRENT LIABILITIES
Bank OD 250 250 250
Loans - - 220
Leases 3,143 3,393 1,400 1,650 - 470
23,942 19,822 14,808
Sales 15,348 13,704 9,839
Less : Cost of Sales
Purchases 5,372 4,765 3,555
Gross Profit 9,976 8,939 6,284
Less : Expenditures
Fuel/
Transport
230 215 121
Other/Variable
costs
548 424 291
Salaries 907 875 692
Maintenance 808 782 575
Electricity 514 494 359
EPF/ETF 25 22 18
Other/Fixed
costs
867 787 639
Bank Chgs. 209 181 157
OD Interest 618 383 298
Loan Interest - - 83
Lease Interest 186 67 -
Taxes 153 5,065 135 4,365 - 3,233
Net Profit 4,911 4,574 3,051
8. 8
PURPOSE OF THE BUSINESS EXPANSION
Presently on the take-away outlet there are not enough spaces or place to have it
there leisurely and people have to take their meals and go elsewhere to have it. If
there is a place to sit and have meals at the outlet, definitely there will be more
business , at least 15% more business can be expected.
The investor plans to make available a wooden open restaurant facility with
beverages for approx 20 packs at once, beside the take-away outlet.
Presently the hotel is functioning with a single reception hall with a capacity of
150 packs. If necessary, to meet heavy demand, arrangements are made outside
the reception hall but on rainy days the outside arrangements cannot be made.
Further, only a single event can take place which is not sufficient to meet heavy
demand on auspicious days and seasons.
The investor wants to extend the existing reception hall to double size and this
results in a space underneath the hall (half of its size) which he plans to convert
into an air conditioned hall with a capacity of 150 packs.
Air conditioning the small hall enables the investor to hire it at a higher rate and
also prevents two functions disturbing each other.
9. 9
THE PROJECTED ANNUAL PROFIT & LOSS
HIGHLIGHTS DUE TO THE EXPANSION OF THE
HOTEL
LKR ‘000
Particulars Debits Credits Total
Sales/ revenue 13,787
13,787
Less : Cost of Sales
Purchases
6,336
Gross Profit
7,451
Less : Expenditures
Fuel/ Transportation
170
Salaries/ wages
690
Maintenance
600
Electricity
390
Other variable costs
420
Loan Interest
491
Net Profit 4,690
Assumptions
Due to the double sized the existing reception hall, LKR.437,500/- (875 packs @
LKR.500/-) of additional income can be expected for a average month.
With the air conditioned hall, LKR.656,250/- (875 packs @ LKR.750/-) of
additional/ new revenue can be expected for a average month.
At least 15% of additional business of LKR.55,125/- (315 no’s @ average rate of
LKR.175/-) can be expected from the take-away outlet for a month.
From the reception halls over 35% of net profit & from the take-away outlet
approx 15% of net profit can be expected.
10. 10
MARKET AND MARKETABILITY
The market for the Take-away outlets with fine dining facilities are targeted for locals
who are having very busy life schedule, families of which both parents are being
working to meet high cost of living where they don’t find much time to prepare meals
at home and occasionally, for local & foreign crowed who travels where they looking
for nice quiet place to have a quick snacks with refreshments when they passing by.
The proposed take-away outlet is located faced to the Kegall – Avissawella main road
which is the centre road of which leads to very important places of the country and in
close proximity to the residence/ the office of very popular politician, Hon. Minister
…...
This hotel is blessed with ample pictorial sceneries and unique locations where the
wedding-photographer would die to capture with. Even now the demand for the
photographic location is very high and most of the time, the investor reluctantly
compelled reject requests of wedding receptions due to lack of capacity of the
existing reception hall/ unavailability of large reception hall, comes along with the
wedding photographs.
Under above circumstances achieving at least 15% additional business from the
Take-away outlet by constructing a open air restaurant with the capacity for 20 to
accommodate at once and to achieve the above assumptions and additional revenue
from the reception hall business by extension of the existing reception hall, would not
be a dream.
BANKING & BANKERS
Presently, the investor of the Rajagiri is banking with two bankers as follows under
personal and under business names;
Seylan Bank PLC at Ruwanwella since December 1994.
Commercial Bank at Avissawella since December 1994.
The several facilities were granted time to time, under fully secured nature and
managed to build up sound deposit base during the past and invested the same under
Fixed Deposits with the Seylan Bank PLC at Ruwanwella.
Further, with the proper guidance and the expertise of the Selan Bank PLC at
Avissawella branch’ welcoming staff and together with the commitments, enthusiasm
of the business partners, the business has made a tremendous growth in a very short
period
11. 11
ASSESSMENT OF RISK
Company Risk : Since Rajagiri hotel has been in this trade over decade of time, as
the name gained an excellent reputation and stands among the
leading Hotel in the vicinity, company risk are very low.
Industry Risk : There are no severe or huge risks or threats in this Industry other
than the competitors. However, now the Rajagiri holds the largest
market share of them all while handling the situation in an
effective manner.
Economy Risk : When it comes to an Economic risk there are always the Taxes
imposed by the Government time to time, but it will be affected to
the whole Industry.
