S3 Semi Final Submission - Submitted By : Priyanka Tiwari - From Team Edison
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The budget summary for 2021-22 allocates 33278862.37 of the total 10 crore budget in the first 3 quarters. The remaining 66721137.63 will be allocated from 2024-25. The assumptions are: 1) The ROI from 2021-22 was 115.32%, so investing the rest in expanding drone services will benefit upcoming years. 2) Certain one-time costs from 2021-22 will be eliminated, increasing net income which can be used to purchase more long-range drones that are more efficient. 3) Long-range drones can lower/eliminate existing delivery costs and increase efficiency.
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S3 Semi Final Submission - Submitted By : Priyanka Tiwari - From Team Edison
- 1. Budget 2021-22 Quarter Apr - Jun'21 Revenue Average number of orders received daily 400 Average charges per delivery using drones 80 Revenue from purchases per quarter 2880000 Interest 0 Total Revenue 2880000 Costs Marketing Costs Digital Marketing 20000 Promotional Material 10000 Total Marketing costs 30000 IT Costs Company Website Website development on WordPress (Free Theme) 0 Domain + Server Hosting Cost (Using BlueHost) 3000 Web designers salary (2 @2.1 lac per quarter) 420000 App development Android app development cost (one-time) 30000 Google Developer Subscription ($25 One time) 1975 Ios app Development Cost (One-time) 30000 Ios app Library subscription cost ($99 per year) 1875 App developers salary (3@1.2 lac per quarter) 420000 UX Designer salary (2@1 lac per quarter) 200000 Drone Operations Drone Charges (4 Short range + 1 log range) 900000 Software Costs for drone (one-time) 2500000 Drone Maintenance costs (20@1k per quarter) 4000 Qualified Drone operators 3@1.5 lac per quarter 450000 Total IT Costs 4960850 Miscellaneous Costs Packing Staff (3@20k monthly=60k per quarterly) 180000 Management Team (2@3 lpa per quarter) 600000 Rent+Web+Electricity+Phone (30k per month) 90000 Packing Material 9800 Delivery Cost (Cost of INR 20Per trip) 8000 Licenses and Approvals (10,000 yearly) 2500 Legal and Auditing 800 Supplies 4500 Taxes (considering tax holiday from DGCA) 0 Other 750
- 2. Total Miscellaneous Cost 896350 Total Costs 5887200 Net Income -3007200 NPV in 1st Year $800,173.88
- 3. Jul - Sep'21 Oct - Dec'21 Jan - Mar'22 Apr - Jun'22 Jul - Sep'22 Oct - Dec'22 460 529 608 700 805 925 80 80 80 80 80 80 3312000 3808800 4377600 5040000 5796000 6660000 -150360 29218.25 72891.35 105562.0488 127847.545 167709.4783 3161640 3838018.25 4450491.35 5145562.049 5923847.54 6827709.478 20000 20400 20808 21224.16 21648.6432 22081.61606 10000 10200 10404 10612.08 10824.3216 11040.80803 30000 30600 31212 31836.24 32472.9648 33122.4241 0 0 0 0 0 0 3000 3000 3000 3000 3000 3000 420000 420000 420000 460000 460000 460000 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1875 1875 1875 1875 1875 1875 420000 420000 420000 460000 460000 460000 200000 300000 300000 220000 220000 220000 4000 4000 4000 4000 4000 4000 450000 450000 450000 600000 600000 600000 1498875 1598875 1598875 1748875 1748875 1748875 180000 60000 60000 60000 60000 60000 600000 600000 600000 720000 720000 720000 90000 90000 90000 99000 99000 99000 10290 10804.5 11344.725 11911.96125 12507.5593 13132.93728 9200 10580 12160 14000 16100 18500 2500 2500 2500 2500 2500 2500 800 800 800 800 800 800 4500 4500 4500 4500 4500 4500 0 0 0 0 0 750 750 750 750 750 750
- 4. 898040 779934.5 782054.725 913461.9613 916157.559 919182.9373 2426915 2409409.5 2412141.725 2694173.201 2697505.52 2701180.361 734725 1428608.75 2038349.625 2451388.848 3226342.02 4126529.117 BEP in First Year
- 5. Jan - Mar'23 Apr - Jun'23 Jul - Sep'23 Oct - Dec'23 1064 1224 1407 1618 80 80 80 80 7660800 8812800 10130400 11649600 214711.93 269247.22 312077.49 381986.8591 7875511.93 9082047.22 10442477.5 12031586.86 22523.2484 22973.7134 23433.1876 23901.85137 11261.6242 11486.8567 11716.5938 11950.92569 33784.8726 34460.57 35149.7814 35852.77706 0 0 0 0 3000 3000 3000 3000 460000 500000 500000 500000 0 0 0 0 0 0 0 0 0 0 0 0 1875 1875 1875 1875 460000 500000 500000 500000 220000 250000 250000 250000 4000 4000 4000 4000 600000 700000 700000 700000 1748875 1958875 1958875 1958875 60000 60000 60000 60000 720000 900000 900000 900000 99000 108900 108900 108900 13789.5841 14479.0633 15203.0165 15963.16734 21280 24480 28140 32360 2500 2500 2500 2500 800 800 800 800 4500 4500 4500 4500 0 0 0 0 750 750 750 750
- 6. 922619.584 1116409.06 1120793.02 1125773.167 2705279.46 3109744.63 3114817.8 3120500.944 5170232.47 5972302.59 7327659.69 8911085.915
- 7. Budget 2024-25 (Estimated) Quarter Jan- Mar'24 Revenue Estimated number of orders will be receiving daily 1860 Estimated average charges per delivery using drones 80 Estimated revenue from purchases per quarter 13392000 Estimated Total Revenue 13392000 Costs Estimated Material Costs Digital Marketing 24379.887 Promotional Material 12189.9486 Estimated IT Costs Ios app library subscriptiion costs ($99 per year) 1875 Drone operations Estimated Drone Charges (73 short range + 105 Long range) 51125000 Estimated Drone maintenance cost (20@1k per month) 4000 Estimated Qualified Drone Operators salary 700000 Estimated HR Costs Support Staff (No. of employees* Salary per month) 240000 Trainer (No. of trainer * Salary per month) 150000 Other HR expenses (Training + expenses on Setting up new divisions) 240000 Estimated Miscellaneous Costs Packaging Staff (3@20k monthly= 60k Per Quarterly) 60000 Management Team (2@3 lpa per quarter) 900000 Rent+Web+Electricity+Phone (30k per month) 108900 Packing Material 16761.3285 Delivery costs (cost of INR 20 per trip) 37200 Licenses and approvals (10000 yearly) 2500 Legal and Auditing 800 Supplies 4500 Total Costs 53628106.16 Net Income -40236106.16
- 8. Apr-June'24 July-sep'24 oct-Dec'24 2139 2460 2829 80 80 80 15400800 17712000 20368800 15400800 17712000 20368800 24867.48474 25364.83443 25872.13112 12433.74757 12682.42252 12936.07097 1875 1875 1875 4000 4000 4000 900000 900000 900000 240000 240000 240000 150000 150000 150000 240000 240000 240000 60000 60000 60000 1170000 1170000 1170000 119790 119790 119790 17599.39493 18479.36467 19403.3329 42780 49200 56580 2500 2500 2500 800 800 800 4500 4500 4500 2991145.627 2999191.622 3008256.535 12409654.37 14712808.38 17360543.46
- 10. The assumptions and calculations used while preparing the budget are:- 1. Budget for the whole division for FY 2021-22 IS Rs. 10 crores. The allocation of Rs. 33278862.37 is done in FY 20-21 in 3 2. The remaining Rs. 66721137.63 is allocated for FY 22024-25. 3. Reasons to invest the remaining budget in long range drone based services. (i) the return on investment from previous FY and the projected return on investment in next FY. (ii) existing costs that drones can lower or eliminate; and (iii) how drones can increase efficiency? (i) The return on investment from FY 2021-22 is: net income/ total investment 115.3217 % Since ROI for FY 20-21 is 115% , investing the rest of the amount in expanding the drone based services would be beneficial fo (ii) There are certain one time costs which are not required for next FY 2024-25. Hence, eliminating those costs will increase net income and also the eliminated costs amount can be used for other beneficia more large range drones can be purchased as they are more efficient in service providing as well as short range drones.
- 11. 7 is done in FY 20-21 in 3 quarters and 4 quarters of 2021 and 4 quarters of 2023. ces would be beneficial for the upcoming FY 21-22. e used for other beneficial options for company like buying short range drones.