Professional Documents
Culture Documents
Executive Summary:
We a group of 5 students have started a new start up that is to privately build and operate Students
Hostel to be run as business venture. The name of our company is ‘Narendra Modi Hall of Residence’. We
thought of getting into this business because there is a huge market potential in this segment. Currently we
limited to building the hostel for IIT Kharagpur (Kgp)campus. If we are successful in establishing our business
we will expand to other IITs.
Timelines:
We have decided to build the hostel in phases sthat we can make the required changes in the next phases.
Our entire hostel will be of 2000 rooms capacity. In phase 1 we will building 250 rooms, in phase 2 250 room,
phase 3 500 rooms, phase 4 500 rooms and phase 5 500 rooms. Each phase will be completed in one year.
Benefits:
The fees charged for accommodation in our hostel will be same as that been charged for other hostels in IIT
Kgp, however there are enormous additional benefits offered by our hostel.
Major benefits would be obtained because of our adoption of ERP package. Our hostel is equipped with IT
system which are absent in other hostels in IIT.
Benefits offered by our Hostel over existing hostels are as follows:
Students getting admitted into hostel can virtually view the entire vacant rooms in hostel and choose
the room which they like the most.
Room cleaning can be based on slots booking system. A student can book a room cleaning slot on
ERP, on basis of which the room cleaning process will be followed. Complaints regarding
maintenance can be registered on ERP.
Mess food will be having a choice between 3 vegetables. Students can select any one vegetable, the
vegetable with highest votes will be in that particular day’s menu. The complaint regarding food can
be registered on ERP. Entire food menu of every day would be displayed on ERP.
Students can book TV room, Football ground, Cricket ground etc on ERP.
Number of staff and workers to maintain the hostel is more than the other hostels.
Separate block of 1000 capacity for girls, Guest rooms provided with a capacity of 5 numbers
A small air conditioned library with a seating capacity of 20 people in each blocks (4 blocks in total),
a Stationary shop, a canteen and gymnasium, Cab service and convenience store are the added
services
Risk
Huge amount of capital would be invested in building the hostel and the returns on the capital will be slow
in nature.
Finance:
On an average 1 lakhs is the contribution from every student for Hostel. A hostel of 4000 students
will contribute to a revenue to 1*4000 =4000 Lakhs = 40 crores per year.
The average net profit margin calculated from other hostel mess is 10%. This amounts to 4 crores per year.
The building cost of hostel is 20 crores (as proposed by one of the contractor), which gives us the ROI of 5
years on this investment.
Project Definition:
Business objective
The basic goal of our start up is to provide accommodation to the students and tap the market opportunities
which are going to arise in near future. We are required to provide services to the students which are very
much different to which are currently provided by the other hostels in IIT Kgp. The use of IT is the most
important in establishing services for students of current and future generation. Speed and comfort is what
people look mostly while selecting a hostel.
Scope
The hostel service would be available for Post-graduation students OF IIT Kgp system only. One block out of
four is reserved for girls. The hostel is equipped with Wi-Fi facility.
Design Processes and Scenarios
The ERP package will be containing different modules such as Finance, Material Management, Quality
Management, Operation, Sales and Marketing, Human Resource etc.
Mail sent to these students stating the information of the Narendra Modi hostel.
The salient features of the hostel to be included as a brochure in the mail. A link
to register to avail this hostel service also to be mentioned.
Students receive the mail. Hostel registration link is continuously open. Students
can register and book the available rooms.
Students register using the link. They enter their name, email id, contact no,
mess preference, veg-nonveg preference, state, city. A visual display of vacant
room is available. Data of room partner and students living in surroundings is
also visible.
Students selects any of this if they Other food menu also displayed
want something different/special to under paid category on the ERP
eat. portal
Vegetable Biryani
(1 portion)
Fried Vegetables
(100 grams)
(Prepared on site
item)
Onion (50 grams) Tomato (50 grams)
(Procured Item)
(Procured Item)
Potato (50
gms) Salt and Pepper (10 grams) Spices (10 grams)
(Procured (Procured Item)
(Procured Item)
Item)
Breakfast
(per plate)
Chicken Curry
(1 portion)
Chicken (100 gms) Oil (10 ml) Curry Paste (200 grams)
(Procured Item)
(Procured Item) (Prepared on site item)