Report is of Project planning which includes financial analysis,Sector Analysis and Market Demand,Technical Analysis and project implementation schedule.
2. ABOUT THE PROJECT
To provide customised room décor.
Our missionis to provide that one stop solution in terms of
theme decor for all the young, vibrant minds staying out of
their home for studies or for employment to help them make
their rooms a reflection of their own personality.
5. MARKET POTENTIAL
In 2015, 34.2 million students enrolled in approximately 48,116 colleges & institutions for pursuing
higher education. India’s higher education segment is the largest in the world.
6. CAGR = 9%
Hence, the Market consists of around 26 million students.
Reference :- http://www.ibef.org/industry/education-sector-india.aspx
7. CATEGORY TRENDS
We can draw inferences from this that Curtains, Bed Linen, Blankets etc are growing at around 8-10%
CAGR
8. TECHNICAL ANALYSIS
All the operations would be performed by the four
founder members.
Budget
Day to day operations
Facility
Information Management and Technology
Suppliers
11. PROJECT IMPLEMENTATION SCHEDULE
Product planning
Product design
Website development
Marketing (online and offline)
Launch website
The project is implemented within 6 months period
12. FINANCIAL ANALYSIS
Essentials for the business establishment
Area In Market Place
Plot 500 Sq. Feet
Water Facility Water purifier (Drinking Water)
Market Urban
Financers Self-Finance
License N.O.C.
Registration as partnership firm
13. •Project Cost Estimated:
A) Land and Building
Office Area (On rent) :3,20,000
3,20,000
B) Other Fixed Cost
Furniture and Fixture: 2,00,000
Licence: 6000
2,06,000
c) Working Capital
Purchase of Raw materials:
1,38,450
D) Other Expenses
Telephones & Internet: 10000
Stationary: 5000
Website Expense:15000
30000
F) Total Capital Investment[A+B+C+D] 6,94,450
14. Capital Structure and Profit
1 Break Up cost:
Raw materials 16,61,400
Wages & Salary 4,80,000
Indirect Expenses 30,000
Total Sales:
Sale of Products 25,56,000
Selling Expenses 4,00,000
Means of Finance
Self-Contribution 6,94,450
15. PRICING OF PRODUCTS
Theme Based Customized Curtains 600-750
Customized Bed sheet with
Pillow covers
400-500
Wallpaper (standard size) 100-150
Customized Mug 100-150
Total 1200.-1550
16. Assumptions
In the first year of operations we receive 1% order of the total student base
For the price per order for the complete room order, we take the lower price point of rs.1200
Out of the total orders, 50% are for complete room packages and remaining 50% are for
individual products
Within the individual product category, the weights assigned for sales of each product are:
customized curtains - 15%, customized bed sheets with pillow covers - 15%, posters - 45%,
customized mugs - 25%
The sales figures are to be such that we get 35 % contribution and variable costs form 65% of
the revenues
17. Sales Year 0 Year 1
Operations
Year 2
Operations
Year 3
Operations
Year 4
Operations
Year 5
Operations
Implementation -694450
Complete room orders (50%) 2160000 2376000 2613600 2874960 3162456
Individual products (50%) 396000 435600 479160 527076 579783.6
Total Sales (Complete Room Orders + Individual Products) 2556000 2811600 3092760 3402036 3742240
Variable Costs (65% * Sales) 1661400 1827540 2010294 2211323 2432456
Contribution (35%*Sales) 894600 984060 1082466 1190713 1309784
Less : Salary & Wages 480000 480000 480000 480000 480000
General Overhead 1,10,000 1,10,000 1,10,000 1,10,000 1,10,000
Land & Building Rent 3,20,000 3,20,000 3,20,000 3,20,000
EBITDA 3,04,600 3,94,060 4,92,466 6,00,713 7,19,784
Less : Depriciation on Fixed Assets 20000 20000 20000 20000 20000
PBT 2,84,600 3,74,060 4,72,466 5,80,713 6,99,784
Tax 51228 67330.8 85043.88 104528.3 125961.1
PAT -694450 2,33,372 3,06,729 3,87,422 4,76,184 5,73,823
PV -694450 208377.9 244524.5 275767.1 302615.1 325587
NPV 662421.6
