Facts and Figures

The size of the land in Bidholi accounts for 1000 yards. In this lot of land we

plan to construct on a 500 yard plot a three floor building with 24 standardized

PG rooms in phase 1. All rooms will have a size of 225 sqft including a

bathroom. According to the principal the price range for PG should be between

3500-4500 per head per month. As we will also offer food, the final per head

cost can raise up to 6500-9,500 per student per month. The ground floor would

be kept for a restaurant.

Location : Adjacent to Pizza hub, Near Distance from UPES main

campus
Sai Mandir, Bidholi, Dehradun
SWOT-Analysis

1 Strengths

The new building offers various possibilities to differentiate the building from its

competitors and create a competitive advantage, as it is

- Just 1 km from the campus

- On the main road

- Good surroundings with temple just 50 mts away

- Provision of water pipeline connection as there is scarcity of water on the

hill.

2 Weaknesses

The concept is not new. It does not create a new market and therefore has to

compete with other accommodations as well as food outlets in the area for

students.

Another factor is that land use is still under Agriculture, so conversion charges

as well talking to authorities may take some investment of time and money.
3. Opportunities

The surrounding college zone of almost 12000 students offers a big opportunity

to expand in buying the phase 2 land i.e. of 500 yard as well.

Furthermore, since we did a need analysis, a good quality gym is also required

there, as college hostel that houses almost 4000 students have a makeshift

gym.

4 Threats

The biggest threat is a stagnating or decreasing demand for hostel rooms as

number of PGs and hostels are being built on this 9 km stretch. Since, the

competition is already well established and other hostels are known and well

frequented it might become tough for us to get foothold in the industry.

Additionally,

The ballooned cost of supplies and inventory may burden us, since we are quite

rigid in our budget.

- There is a chance of losing some land on the front, since road widening

might happen around 2025. After talking to the authorities, we expect it to

be around 4-8 foot ( if the master plan superimposes).

-
 b) Total Cost Backwards Approach (B.A.)
a) Land Cost Backwards Approach (B.A.)

Land needed to construct the Land cost B.A. INR 1,05,00,000

Hostel of 36 rooms 3300 sqft Construction cost **88,00,000
With FAR approved as 2.1 as
now though (3 being approved Total land & constr. INR 1,93,00,000
by mdda) 1200 sqft
Min. size of recommended 4500 ft2
property to buy Or, 500 yd
Total land & constr. INR 1,93,00,000
Miscellaneous
INR 4,00,000
Land price/yard INR 21000.00 Expenses
Total cost INR 1,97,00,000

Land cost. INR 1,05,00,000

c) Funds to be raised

Total cost INR 1,97,00,000

Initial Capital Raised(50 lakh each) INR 1,00,00,000
Funds to be raised INR 97 Lakhs

After the conversion of land from agriculture to Residential (G+3), Private Banks can allot loan
at most of 45 lakhs which will be our phase 1 amount for construction of restaurant and 1st floor.

Now, with a moratorium period of 6-8 months, let us discuss the timelines:
 Month
Profit EMI Net Savings

Up till May Moratorium Period Moratorium Period 0

June 2019 35000 97841 -62841
July 55000 97841 -42841
Aug 110000 97841 12159 BEP
Sep 186000 97841 88159
Oct 216000 97841 118159
Nov 216000 97841 118159
Dec 216000 97841 118159
Jan 2020 216000 97841 118159
Aug 2024 285000 0 285000

PARTNERSHIP TERMS & CAPITAL RAISING TERMS

- On a 50 – 50 model

o Initial Capital required per head:

Phase 2
60 lakhs Loan EMI
Extension

 50 Lakhs for land + 10 lakhs for Initial Construction

 Loan EMI of Principal Amount 45 lakhs
 Phase 2 include buying of additional 500 yard plot