Team Dronacharya

Presents
Business Idea & Model
of
Niche segment, Eco-Friendly Self Help Concept
Hostel for NRI Students.
Assumptions and Justifications
Survey with students & local public shows the need of similar kind of
residential apartments for various reasons like: privacy, freedom, fun,
etc.
Survey shows there are 2000 NRI student in the town and out of which
20% students want to have freedom from the usual hostel life.
Government permits only four floors.
Ground floor + three floor = four floors.
Survey shows land rate is 2000 Rs. per sq. ft.
200 students per annum on an average.
Considering high rate of interest at 18% for VC Fund & 7% for F & F
loans.
Expected profits to be 15%.
Full occupancy from year one itself.
Team
Abhinav Jain (Marketing & Sales)
Praveen G (Finance & Revenue)
V C funding will appoint one member for our
company. (Management Expert)
We are looking for a technical person from civil or
architect background.
Funds
5 crore self funding
10 crore venture capital funds at 18% interest rate.
5 crore family and friends loan at 7%.
Fund Flow Statement.
Particulars Amt. (Rs.)
Sources:
Self Funds 5,0000000
Family & Friends Fund 5,0000000
Venture Capital 10,0000000
Total 20,0000000
Applications:
Land & Building 10,0000000
Supportive Infrastructure 3,0000000
Furniture 3,0000000
Investment (F.D. in Bank) 2,0000000
Working Capital 2,0000000
 Type and size of room
Type of room Size of room Number of Monthly Rent Total Monthly
(Sq. ft.) students (Rs.) Rent (Rs.)

Single sharing 150 1 15,000 3,75000

Double sharing 600 2 25,000 6,25000

Triple sharing 1200 3 36,000 9,00000

Four sharing 1500 4 44,000 11,00000

Total 30,00000
Services available in hostel
Natural light availability.
Limited time lodging for parents within same premises on
advance booking.
Fully furnished eco friendly rooms.
Veg & Non Veg mess for Break fast and dinner.
Wi Fi internet connection round the clock.
Gym, Swimming pool, indoor games and vehicle parking.
Self billing Laundry, saloon and provisional store.
Medical expert availability round the clock for
emergencies.
Operations Feasibility
Number of rooms 25*4 = 100
Eco friendly system will be adopted for light during
day time, rain water harvesting and reuse, solar and
wind energy system for electricity.
Two plots of 10,000 Sq. Ft. will be used.
Plot 1 will have two floors excluding ground floor.
Plot 2 ground floor will be used for amenities and first
floor for 25 room of four sharing and 2nd floor would
be the gym.
Human Resource Feasibility
a) Operations Management (15 staff)
b) Infrastructure Management (5 staff)
c) Finance Management (3 staff)
d) Marketing and Sales Management (2 staff)
e) Human Resource Management (2 staff )
f) Technical Management (2 Staff)
Marketing Feasibility
Hoarding and banners in & around the nearest airport,
railway station and bus stop.
Promotional activities like pamphlets distribution and
putting up posters in and around existing hostel areas.
Initial 25 beds get 10% discount on first cum first
serve basis.
Incentive scheme among students for referals.
Publicity.
Tie-ups with student consulting agency.
Finance Feasibility
Estimated revenue in a year is Rs. 3.60crore.
(30,00000 Monthly Rent * 12 Months)
Estimated pay back is 5 Years.
Expected profit is 15%
The lodging provided to the parents of students will be
an extra source of revenue for the business.
The benefit cost ratio would be 1.12 : 1
The life span of the project is expected to be 10 years.
Net present value calculation of the project.
Year Cash Flows DF @ 12% Amount after
discounting

0 (18,00,00,000) 1.000 (18,00,00,000)

1 3,60,00,000 0.893 3,21,48,000
2 3,60,00,000 0.797 2,86,92,000
3 3,60,00,000 0.712 2,56,32,000
4 3,60,00,000 0.635 2,28,60,000
5 3,60,00,000 0.567 2,04,00,000
6 3,60,00,000 0.507 1,82,52,000
7 3,60,00,000 0.452 1,53,00,000
8 3,60,00,000 0.404 1,45,44,000
9 3,60,00,000 0.361 1,29,96,000
10 3,60,00,000 0.322 1,15,92,000
Total cash inflow 20,24,28,000
Total cash outflow (18,00,00,000)
Net present value 2,24,28,000
Macro Economic Factors
Manipal as an education hub gives good opportunities to earn
from services to students.
Already established services do not provide exclusive and “eco-
friendly” residential apartments which gives an opportunity for
our business.
Political factor and competitors could be an strong threat to the
business.
Developing market of education and awareness towards eco
system will gain great profit as well as good will in long run.
Thank You !