This action might not be possible to undo. Are you sure you want to continue?
Submitted to: Prof. Deeksha Kumar
Anisha Mukkerjee-08BS0000343 Bhawna Gambhir-08BS0000750 Parul Vij - 08BS0002181 Piyush Jain-08BS0002211 Surbhi Ahuja-08BS0003489
We express our profound indebtedness and sincere thank to our faculty Prof DEEKSHA KUMAR for giving us the opportunity of carrying out this project and also for the continuous help and support we received from her during the project. We would also like to thank all the persons who cooperated with us and provided us with the necessary details and information without which the completion of the project wouldn‟t have been possible.
Packaging. Nearly 95% of surveyed individuals endorsed having a choice of different themes within a restaurant. ITC's diversified status originates from its corporate strategy aimed at creating multiple drivers of growth anchored on its time-tested core competencies: unmatched distribution reach. Paperboards & Specialty Papers. Hotels. The themes has been finalized by carrying out a primary research using questionnaires and surveys . Branded Apparel. It has a diversified presence in Cigarettes. Stationery. Having established a niche for itself in the Hotel Industry. effective supply chain management and acknowledged service skills in hoteliering. superior brand-building capabilities. Safety Matches and other FMCG products. Packaged Foods & Confectionery. Personal Care. ITC has planned to enter into new segment of a Theme Restaurant by the name of “Season Theme Restaurant”. The themes finalized for the restaurant so as to cater to the varied interest of our target audience are as follows: SNOWY WINTERS RAIN AND LUSH GREENERY GOLDEN SUN AND BEACH . Agri-Business.ABSTRACT ITC is one of India's foremost private sector companies with a market capitalization of nearly US $ 14 billion and a turnover of over US $ 5 billion. Information Technology.
ITC-Welcomgroup has set new standards of ain the hotel industry touching new dimensions in Accommodation. business leaders and other distinguished guests from all across the world. . ITC-Welcomgroup pioneered the holistic concept of „branded accommodation‟ in the hospitality industry. ITC‟s commitment to delivering globally bench marked services. by segmenting. customizing and branding hotel services like „ITC One‟. ITC Hotels have had the privilege of hosting world leaders. Inspired by the vision to promote India's rich tourism heritage and also contribute to the nation's then scarce foreign exchange earnings. Since then ITC-Welcomgroup has emerged as one of India's premier hospitality chains offering hotels. A leader in the premium hospitality segment. gives it a unique and distinct identity. ITC's hotels business set about to create a unique value proposition that would redefine the fine art of hospitality. embedded in a culture deeply rooted in India‟s rich tradition of hospitality. ITC has strategically customized its hotels and appropriately categorized them to fulfill the service and budgetary needs of travelers.‟ Each of these caters to the specialized needs of the global business traveler with unmatched quality and a range of custom made services.Background ITC's foray into the hotels business began in 1975. With over 100 hotels in more than 80 destinations and four brand propositions spanning Luxury to Five-Star and Budget to Heritage. Environment and Guest Safety. Cuisine. the „Luxury Collection‟. Heads of State. ITC has an exclusive tie-up with global partner Starwood for its top of the line premium brand. „Towers‟ and the „Executive Club. It was the first to launch the idea of „A Hotel within a Hotel‟. resorts and palaces.
. and the third is WelcomeHeritage Naukuchiatal Resort. a launch of a specialty restaurant „Za-aiqa‟.Recent launches In its hospitality segment ITC has launched the following recently: Fortune Select Dasve. Karnataka. Bhopal. WelcomHeritage Hotels brought into its fold 3 new properties. Fortune Select Manohar opened in Hyderabad. second the Sirsi Haveli near Jaipur. full-service hotel offering a range of services to business and leisure travellers. The first is the Shivavilas Palace at Sandur. It is a contemporary. „Za-aiqa‟ at WelcomHeritage Noor-us-Sabah Palace. tailored to give the best of services to the discerning business traveller. offering customers vintage Nawabi. tandoori cuisines of the North West Frontier and culinary delights of the Dum Pukht cuisine of Awadh. The hotel is fully equipped to handle all requirements of guests and make their stay truly memorable. The Fortune chain added to its properties with the launch of Fortune Select JP Cosmos in the heart of Bengaluru city. The hotel offers an excellent range of guest facilities. 30 kilometres from Nainital. It embodies modern architecture and the unique aura of Hyderabad in its essence. opened in Lavasa on the rolling green hillside of Dasve village. robust. on the shores of the Naukuchiatal Lake. adding to its array of more than 60 properties across 19 states in India.
. Hong KongHewitt Associates in partnership with Wall Street Journal. in the category „Companies /Organisations/Institutions who share our vision and through their policies and practices demonstrate their belief in equal rights and gainful employment for persons with disabilities‟. at ITC Maurya.2008 by the Restaurant magazine. organised by The Express Group. Bukhara. ITC Welcomgroup won the NCPEDP Shell Helen Keller Award 2008.Recent Awards ITC Welcomgroup adjudged the Best Employer in Asia in the hospitality sector by the global Human Resources consulting and outsourcing firm. The Best Premium Hotel Brand to ITC Hotels at the sixth edition of the annual Galileo Express Travel World Awards. National Tourism Award for ITC Grand Central for the best private public enterprise providing facilities for physically challenged guests at the hotel. Best City Spa Award for Kaya Kalp at ITC Mughal at the Tatler Spa Awards in London. was declared the Best Indian Restaurant in Asia .
The socioeconomic classification (SEC) groups urban Indian households on the basis of education and occupation of the chief wage earner (CWE: the person who contributes the most to the household expenses) of the household into five segments (SEC A. with a growth rate of 30%. Analysts say food is a major driving force in the retail sector. the food and beverages segment is worth Rs 8. Less than half are graduates or post graduates (45%). The other half comprises mainly of industrialist/businessmen or shop owners. considering the huge potential of food service sector in India. SEC D and SEC E households in that order). And contrary to belief that fashion is the largest segment in organized retail. 29% are shopkeepers while 10% are industrialist/businessmen. These shall be a premium segment restaurants catering to SEC A and SEC B category. The CWEs of nearly half the SEC A households work in executive positions. Almost all of them are either graduates or post graduates. This classification is more stable than one based on income alone and being reflective of lifestyle is more relevant to the examination of consumption behavior. SEC C. .97 lakh crore.Project background “Seasons Theme restaurant” is an independent chain of restaurants to be opened by ITC. CWEs of SEC B households are primarily employed at clerical or supervisory levels (46%). while 13% have had some college education. SEC B. 38% are educated till the 10th or 12th grade.
"Hungry Zone". with an increase of 26. cuisine and décor are gaining acceptance.9% to the food service industry annually (2007) and contributed 7. . says Babita Jayaram. each customer of this new segment gives a billing of Rs 2500 to Rs 3000 per visit. Marketing Vice President of BJN group.” A sixty-seater joint at Colaba.6% to GDP of India in 2007. Considering the opportunities in the food service market ITC would like to capitalize on it to strengthen its position in the hospitality segment. themerestaurants with out-of-the box offering in terms of ambience. While industrialists and celebrities are known to frequent premium theme joints and restaurants. a Japanese joint says. SEGMENT ANALYIS With more and more diners yearning for a break from the urban bustle. slowly a new breed of consumers has started developing a liking for theme restaurants. “Industrialists like Ness Wadia and Anju Taraporewalla are regulars with the frequency of visit being as high as five to six times a month. business head of Tetsuma. They also like to spend a lot of money and flaunt their act of visiting our joint. a well-researched decor and overall ambience that enhances the eating experience. "Eating out is no longer just about food but involves the entire experience of enjoying it". Good cuisine is a must and if blended with a good theme. a leading player running a popular chain of theme restaurants in the country.2% from 2007. On an average. the entrepreneur behind the food portal. Samir Chhabria. A number of restaurants differentiated on basis of themes and nature of cuisines are getting more popular. However. there is little reason for these players not to hope to see a full table. says Priyanka. a new segment of people has started spending time at our joint. Tetsuma is a Japanese restaurant at Colaba.INDUSTRY ANALYSIS: Food service industry in India has a huge potential and is expected to grow to $8 billion in 2012. Cafes and restaurants segment contributes 21.
” He adds that with items like puppet shows for children. Himani Modi owns its franchise in India and runs a franchise outlet in Delhi. This explains the gradual increase in the number of theme restaurants like Village. an international sports bar chain based out of Australia. which definitely goes up on weekends. Director. Offering a variety of vegetarian cuisine like Gujrati. The fact that all cricket matches are shown on LCD screens also is an added attraction for the visitors. Modi also says that foreign clients also contribute to as much as 30 per cent of the annual turnover. Machan and Rudey‟s Forest Café. On an average. mehendi artists for women folk and sing-and-dance opportunities. all provided by traditionally clad staff in an environment that‟s given the look and feel of a village. “We started with „Village‟ on 15th August last year in Kandivli and from then till date. the daily billing is as high as Rs 75000 to Rs 1 lakh. Corporate clients like Siemens. As suburban life gets more hectic. In the suburbs too. National Geographic etc also use the venue for throwing corporate parties. Kambala Hospitality Pvt Ltd. “We have five floors in all. with good sports décor and graphics on walls and mirrors. which runs the Village theme restaurant tells HT. consumers are looking for more than just the pure vanilla experience at restaurants.Another example is Barcode. this makes for a wholesome experience. Marwari and Punjabi specialities. At an average ticket price of Rs 300. we have seen three more „Village‟ restaurants at Ghatkopar. Thane and Vashi. Amar Jog. Marketing and Business Development.” Modi says that on an average. in addition to masala milk. this works out to a business of Rs 120000 daily. . chaay-in-kullads as well as ganne ka ras. the Village outlet attracts as many as 400 consumers daily while weekends see double the number of consumers. Speaking to Hindustan Times. theme restaurants are becoming more and more popular. she says.
soon opening in Vashi called „Umrao Jaan‟. Jan 07. Jun 18. 2009.Indian Express. “Theme restaurants are the flavour of the season” – Hindustan times. Chowpatty. 2008 Food Service Industry in India – Data monitor – Publication September 2008 . which will boast of Lucknowi specialties and North Indian food.the spirit of Mumbai is also coming up soon at Raghuleela Mall. Source – “Theme restaurants cash in on concepts to sell”. Jog has bigger plans.Happy with the thumping business of Village. “We intend to take the Village concept soon to Dubai and the UK market.” Jog informs that there is another upcoming theme concept. In addition. The Dubai venture should take off in 2008 itself.
200 – Rs. ITC's theme restaurant menu is priced at a upper and midtier level. 1. Although the restaurant industry as a whole has seen growth in 2008/2009.MARKET AND DEMAND ANALYSIS Instead of building a business around a preconceived concept. and other options to improve the dining experience are also factors in customer decisions. but our findings indicate that the décor. In addition ITC would have an extended Appetizer selection priced between Rs. TV cooking shows and imported goods offers ample evidence that India. The restaurant will have three segments with the themes of snowy winters.500. Again. customers are demanding value for their dining rupee. variety is the underlying element for this concept. The introductory restaurant would be an epitome of the name of the unit “Seasons Theme Restaurant”. Our customers want the option to choose what satisfies their desires. ITC has taken all these factors in consideration for the design of this theme restaurant. lighting. bar. . Our research results do not identify any single ethnic style of restaurant as desired. Reasonable Prices: This was no surprise given the economic tide. The proliferation of international cookbooks. is currently on an international tasting spree. as a whole. allowing budget dining in a full-service restaurant. golden sun and the beach. and rains and lush greenery Menu Variety: Ethnic restaurants are increasing in the NCR region. The Dining Experience: Customer satisfaction with food and service has been and continues to be of utmost importance. but rather suggest that incorporating strong multi-ethnic influences in the menu selection will be popular. Our market analysis identified the following key drivers as areas of opportunity to service ITC's theme restaurant customers: Theme Selection: Nearly 95% of our surveyed focus group endorsed having a choice of different themes within a restaurant. food magazines. ITC's Theme Restaurant concept is built to offer different-themes within a restaurant. we conducted market research and built a concept around our consumers.
as people would be free to choose from any theme according to their requirements. As Delhi is a Cosmopolitan City with people from varied backgrounds having different lifestyle. a well-researched decor and overall ambience that enhances the eating experience. there is little reason for these players not to hope to see a full table.The first step involved in the project analysis is to estimate the potential size of the market for the proposed project. we tried to find out the answers to various questions like: a) Who will be the main customers? b) What will be the total current demand of the theme restaurant? c) What facilities would be required by the customers? d) What are the prices they will be ready to pay? e) What is the current strategy followed by other restaurant owners? For primary data we conducted a questionnaire survey on the sample of 50 people in order to find the answers to the questions specified above. a theme restaurant would be a ideal hangout place for people to de-stress themselves from their everyday routine. ITC‟s proposed theme restaurant would be a complete experience in itself. Good cuisine is a must and if blended with a good theme. For market analysis of the resorts and hotels. . In this case we are planning to construct a theme restaurant in the NCR region. So we did the analysis in various stages: Firstly we find out whether there was any requirement of the theme restaurant.
The Proposed Theme Restaurant is coming up with following facilities: No. The new townships being developed by reputed builders in the nearby area will also be an added advantage.The Destination Customer . of Themes Theme 1 Theme 2 Theme 3 : : : : 3 Snowy winters Rains And Lush Greenery Golden Sun And The Beach .Conclusion of the survey: After the survey we came to the following conclusion that our proposed theme restaurant will not only target business tourist but will also cater to the need of a vast market of Downtown Working Couples .High-End Singles and the Tourists.
141 68. Market Analysis Year 1 Potential Customers Business Person Downtown Working Couples Tourists The Destination Customer High-end Singles Total Growth 18% 9.914 2. It has defined the following groups as targeted segments that contribute to our growth projections: The Business Person Downtown Working Couples The Destination Customer High-End Singles Tourists These particular market segments are 25-50 years old.168 7.215 3.925 10.411 4.645 18.724 4.991 55.815 63.982 7.054 8.510 18.47% 13% 7.896 8. foodwise.593 22.944 66.527 20. These are the types of people who frequently visit other restaurants and bars in the area.818 4.95% 32% 17.688 12.311 7.Market Segmentation ITC's Theme Restaurant & Lounge intends to cater to a wide customer base. ITC want everyone to feel welcome and entertained. and will embrace our international fusion cuisine. and comfortable restaurant options.097 21. They are likely to spend more on experiences they perceive as unique.039 Year 2 Year 3 Year 4 Year 5 CAGR 4.348 11. They are also the most open to trying something new.23% 5.499 4.565 21.74% 29% 5. cosmopolitan. trendy. have disposable income.348 19.76% .673 6.47% 8% 4.140 16. and sophisticated. and are seeking upscale.223 11.950 57.76% 15.
they want to relax and use the money they are making (or is expensed by their company). using marketing to draw customers from outside the main city limits. and lounge. food and tips. These are the individuals that pride themselves on socializing and dining at the premier locations The Image Seekers. entertainment and events. excellent service and engaging clientele will confirm the feeling of being in "the in place" in NCR. A large percentage of the tourist population are vacationing singles. This is especially true for the tourist population that visit for sporting and social events . . romantic. and consumers often look only in their own neighborhoods for restaurant options. here to socialize and be entertained.Target Market Segment Strategy The Business Person: They work hard all day and often stay overnight in a strange city. ITC's will be a destination dining locale. These young Midtown couples are generally very successful working professionals.they are not interested in family establishments. will be a destination restaurant. Downtown Working Couples: The restaurant will have an intimate. They spend the most on drinks. They have disposable income. away from the kids. ITC will break these habits. striking decor. High-end Singles: We will attract them with our electic atmosphere and layout. The Destination Customer: NCR is a very 'sectioned' city. Our international menu. In most cases they are budgeting to eat out on a regular basis. Afterward." ITC's will be the best date location in town. They need a competent establishment that helps impress clients and prospects. Tourists: New Delhi being the capital of India attracts many vacationers during the summer months of May through September. ITC's will be especially appealing to married suburban couples indulging themselves with a "date night" downtown. as they don't have the time to prepare food nightly. with its attractive atmosphere. and will spend quite a bit on such outings. enticing adult atmosphere that suggests "date. ITC's cosmopolitan flair and comfortable atmosphere will be perfect for sophisticated business people. international menu. whether they live in and around NCR or are here for work. Our Destination Clients tend to be new suburbanites that miss the excitement of the inner city.
All menu items are competitively priced for the area. It will focus on establishing a strong identity in our community with a grand opening. Therefore. 5. 6. the execution of the concept is the most critical element of its plan. As an exciting and eclectic restaurant. It will keep its standards high and execute the concept flawlessly. trainee and featured chef Chef/Management Stock Incentive Program. While STR is not striving to be the lowest-priced restaurant. 7. 3. so that word-of-mouth will be its main marketing force. it will be the talk of the town. The owners' thorough understandings of opening and running a restaurant An extraordinary contemporary restaurant design International menu with featured menu changes every 4 months Unique. Competitive Edge STR's competitive edges are: 1. Incentive and Retention program .The Next step involved in the project analysis is to decide the Marketing Strategy for the proposed project Strategy and Implementation: ITC‟s STR intend to succeed by giving people a combination of excellent and interesting food in an environment that appeals to a wide and varied group of successful adults. 2. it is aiming to offer exceptional food at reasonable prices for the premium restaurant diner. Employee Training. 3-Tiered spatial layout Chef Co-op program to allow new entrants. 4. It will direct all of its tactics and programs toward the goal of explaining who it is and what it does. STR will create an appealing and entertaining environment with unbeatable quality at an exceptional price. Its main focus in marketing thereafter will be to increase customer awareness in the surrounding communities.
newsletters and public announcements. Our periodic customer surveys and weekly menu item sales evaluations will help us to understand what advertising is working and what is not. Our goal is to understand our customer.In addition to standard advertising practices. Consumers will be encouraged to visit our website to be greeted with a flash media intro that highlights the restaurant. past happenings. This will also be effective for inclusion in press kits. Establish contact with editorial staff for the purpose of being included in entertainment "round-ups"--product comparisons in dining publications and the local papers.Marketing Strategy STR Restaurant & Lounge's Marketing strategy will be to promote our electric food. Produce a complete STR Restaurant history and menu offering piece to be used as the primary public relations tool for all target media editorial contact. basically. Publicity Strategy: ITC will focus on the following publicity strategies: Develop a sustained public relations effort. Marketing initiatives will concentrate on the following: Promotional Campaign: The best way to reach our potential customers is to develop an intense advertising campaign promoting our STR concept . we will gain considerable recognition through newspapers. upcoming attractions and our dynamic menu. keeping key editors abreast of all new promotions. and exciting concepts to draw in the local repeat customers. and redirect advertising as effectively as possible. who we are reaching. Develop a regular and consistent package update program for the major target media. measure the success of our direct marketing and media activities. with ongoing contact between key editors and top-level personnel at local dining publications. . and menu introductions. superior service.
Our most important tactic will be word-of-mouth/inrestaurant marketing. in order to better our community. Word-of-mouth/In-Restaurant Marketing Restaurant Night: Every first Monday of the quarter. Public Relations Marketing. Live Entertainment parties Special Events Valentine's Day Wine tasting weekends New Year's Eve party . we will invite the most influential reporters and editors from all local publications to STR Restaurant in order to evaluate our menu. we will employ three different marketing tactics to increase customer awareness of STR: In-Restaurant Marketing. chefs and staff to get together to discuss the market and food trends. Marketing Program In line with our Marketing strategy. and give something back. A perfect night for the local area's restaurant owners. and over the first 6 months of operations. we will have a special evening for restaurant people. This will be by far the cheapest and most effective of our marketing programs. Wait Area Marketing: Wait staff will service appetizers to customers waiting to be seated or on the wait list. the restaurant will offer a monthly dating night. Monthly Dating Connection: With the increasing appeal of Internet and speed dating. and Media Marketing. In addition to food and beverages. Editorial Visitation: Leading up to the Grand Opening. customers can choose from an array of dating packages up for auction. Community: ITC will look for key opportunities to pair with local community development organizations and radio stations to interface with our customers. and atmosphere.Press Release/Grand Opening: STR Restaurant will release a series of press releases on the Grand opening. service. We will continually look for local community programs in which we can participate.
distinct billboard ads will advertise the launch of the Restaurant. Restaurant and Special Events Website: We have contracted with local design teams to deliver a high-quality. HT City food guide & India Todayare two media companies we will utilize for media relations. Media Relations: Several media relations teams will be utilized to market the Restaurant. .Media Marketing Newspaper campaign: A very targeted media campaign to obtain featured articles about the restaurant in their Living. Both companies have an insightful presence and connection with our target market. Entertainment and Dining segments. constantly updated website. Billboard Advertisement: One month prior to the opening. Notices of all live entertainment segments and special features will be posted to local newspapers' calendar announcements. navigable.
and are unable to maintain the initial quality customers expect on return visits. decreasing word of mouth advertising and leading to poor revenues. with excellent customer service. Our sales strategies must take the next step and encourage customers to become repeat customers. or they spend all of their efforts at opening. and immediately addressing any problems Interacting with our customers personally. or quality discourages customers from returning. Our marketing strategies are designed to get critics and initial customers into our doors. New restaurants often make one of two mistakes: they are unprepared or underprepared for opening. whether on their first visit or their hundredth. and keeping favorites on the menu as we rotate seasonal foods and specials . service. They can accomplish this by: Hiring employees who genuinely enjoy their jobs and appreciate STR's unique offerings Continually assessing the quality of all aspects mentioned above. and atmosphere. speed.Sales Strategy Our strategy is simple: we intend to succeed by giving our customers a combination of delicious and interesting food in an appealing environment. and to tell all their friends and acquaintances about the great experiences they just had at STR. speed. STR's sales strategy requires consistently high quality food. so they know that their feedback goes directly to the owners Evaluating food choices for popularity. and initial poor service.
Then they did some simple math: fifteen tables of four means at capacity they would be serving 60 meals. and the 7:30-8:00 crowd as the second serving. Lunches are 60 times Rs. with matching beverages.000.000. They decided that an average lunch would be Rs. 2. At capacity STR would sell 60 lunch and 120 dinners in a day. Dinners are 120 times Rs.800. Meals take about an hour at lunch. which comes to 60.360.1000 of food and Rs. when it‟s at full capacity. And that an average dinner would be Rs. STR figured they would have one servicing of lunch and two of dinner.000. or Rs. They can do a simple calculation to figure a good day‟s sales: 1.2000 plus 120 times Rs. ITC‟s new restaurant STR as discussed earlier would have three themes decided that it would be able to seat fifteen tables of four people each as a starting point.Sales Forecast ITC is looking at forecasting sales for its new theme restaurant. when it‟s at full capacity.240.ITEM NUMBER 15 4 60 1 2 1 2 60 60 120 120 Lunches Dinners Beverages at capacity Lunches Dinners Units Lunch Lunch Bevarage Dinners Dinner Beverage .2000 food and Rs. which comes to Rs. or Rs.000 plus 48.1000. An absolutely full dinner service in a day would be 120 dinners.120.000 plus Rs. roughly calculating the 5-5:30 crowds as the first serving.000.1000 plus 60 times Rs. So an absolutely full lunch service in a day would be 60 lunches. 108.1000 beverage. ITEM Tables Seats per table Meals at capacity per serving Servings SUB. and about two hours at dinner.800 of beverage.
) Unit Prices Number Price (in Rs) Lunch 60 1000 Lunch Bevarage 60 800 Dinners 120 2000 Dinner Beverage 120 1000 AVERAGE Lunch 60000 Lunch Beverage 48000 Dinner 240000 Dinner Beverage 120000 TOTAL Sun 60000 48000 240000 120000 468000 Mon Tues-Thurs Fri 35000 120000 45000 28000 96000 36000 110000 420000 240000 55000 210000 120000 228000 846000 456000 Sat 60000 48000 240000 120000 468000 Total 320000 256000 1250000 625000 2466000 Sales TECHNICAL ANALYSIS: LOCATION .Projected Demand throughout the week: Projected demand throughout the week UNITS Lunch Lunch Beverage Dinner Dinner Beverage Averages Sun Mon Tues-Thurs 60 60 35 40 60 60 35 40 120 120 55 70 120 120 55 70 Fri 45 45 120 120 Sat 60 60 120 120 week 320 320 625 625 month 3840 3840 7500 7500 Projected figures of Sales weekly: Projected figures of weekly sales (In value Rs.
The clubbing culture in sector 52 in particular and Gurgaon at large helped us secure this location. Easy availability of land. This is one of the busiest roads of India and more than five lakhs vehicles pass through this road on a single day. sector 54. Although this presents an obvious challenge in terms of market share. the state government hopes to complete a world class Golden Triangle City Centre (GTCC) in Sector 29 with as many as four skyscrapers higher than Taipei 101. rail and road. clubs. And moreover it is the only themed restaurant in Delhi/NCR Region Companies like TCS. strong potential. malls. The location can be highlighted as under: The themed restaurants will cater to the upper segment of the society. Gurgaon being a hub of restaurants. spas & salons is a prime location for such lifestyle options There are many sports clubs like basketball club.GE Capital. The fast growing population with increasing purchasing power is yet another reason for zeroing on the location RESTAURANT LOCATION ON MAP .HCL. We are expected a good number of corporate clients Gurgaon is connected to all major cities by air. hotels. nightlife centers. football club squash club and many more. parking facilities .The location for the themed restaurant has been finalized as on Gurgaon Faridabad road. There are over two dozen restaurants in the vicinity of the area that sell food at similar prices. badminton club. By 2010. it also indicates the presence of a large. Unitech limited and many more have their units in gurgaon.low traffic congestion.
LAND Average cost Rs 4.600 per square foot .
Land Basic cost Stamp duty Other costs @15% Total cost of land 3200 square foot Rs 147 lacs Rs 3. 22.58 lacs Rs 173.43 lacs BUILDING AND CIVIL WORK .54 lacs Rs.
G. sewerage. @ Rs. 140 42 6 Floor inlays. 300 60 9 Special walls cladding with special treatment 5000 sq. ft. internal roads. railings & car porch 281.F. @ Rs. drains.NO PARTICULARS OF BUILDING AREA AND RATE COST (Rs. @ Rs. @ Rs. Lacs) In 1 Cost of construction of Building including structure at basement.lite metal frame with toughened Glass/ poly carbonate 1800 sq. ft. @ Rs. @ Rs 65 16. @Rs 25 1.75 3 False Gypsum ceiling with Paint 25000 sq. 1000 50 .300 cost 6 7 Walls punnings & paints 106000 sq.S. special treatment with laying 2000 sq.5 8 Wall cladding . ft. ft.25 4 Sky. @ Rs. 25 26.8 5 Floor stone with laying cost 30000 sq.Windows 20000 sq. ft. ft. ft. ft. 600 10. Boundary walls.44 2 Ceiling with paint 7000 sq.
yards 15 TOTAL 509. 510.00 EQUIPMENTS .10 Landscaping 10000 sq.74 Say Rs.
15 Eco.do --.Water Solutions. Delhi . Delhi 6 Generator set 62.5 KVA 2 4.75 13. Delhi 3 Reverse Osmosis Plant of 500 LPH 2.85 5. NAME OF MACHINE & NO. Tube well Works. Delhi 2 DMF & Softening plant 1. Lacs) in 1 Central air conditioning system for the Restaurant with specifications 81. 8 Solar water heating system 1 5.9 25.C.48 Eco.Water Solutions.The detailed lists of the equipments required are given below: S.84 K. Delhi 5 Rain water harvesting system 2.. 7 Transformer 1.95 9.85 Hitek Solutions.1 Eco.95 12. RATE COST NAME OF SUPPLIER EQUIPMENT (Rs.5 -..NO.9 Kushal Meerut 125 KVA 250 KVA 2 2 6.. Delhi 4 Sewage Treatment Plant 12.27 Kushal Meerut Engineers Inc.93 Blue Star Ltd.Water Solutions.do -Engineers Inc.
S. panels & earthing 14 Special themes Snow making machine& snow liquid Humidity control system Showers 15 3 3 Vishal (Cool) India Pvt Ltd Prabhat Door Win Industries equipments for various 24 FM Engineers Dry ice making machines S. New Delhi 12 Fire .3 Apex Elevators. 25.25 Somya Delhi pyrotex services. New Delhi 10 Kitchen Equipments 25.station.Fighting system 18. Haryana Sub. Haryana 11 Security system 8.0 TOTAL 299.0 Kobra India Security System. 13 Electrical Wiring.9 Indigeneous Passenger lift 2 9.65 19.0 Sukam Power system ltd. Foundry Chemical Industries Private Limited 15 Garbage Shoots 1.27 .8 SL Industries. Cabling.
97 GRAND TOTAL a) 311.Add Sales Tax. 4% 11.24 . Unloading etc. Installing. Freight. Loading.
Guest room & service table 5.NO. @ Rs.wooden & metal 40. moods. tasks & Effects 20.00 5 External lightings Facade. Landscape & Security 15.00 4 Internal lightings general . PARTICULARS COST Rs. Marble & Metal 8. ft. Sensors & Timers 10.00 3 Fabrics .00 7 Landscape feature Wooden.00 6 Lighting automation Dimming System.00 2 Fixed woodwork paneling/ cornes/finishes 5000 sq.in Lacs 1 Loose furniture. S.00 . Uniforms. 400 20.FURNITURE AND FIXTURES .Curtains.
Ft. @ Rs.wooden boxing with glass wool 7800sq.10 9 Acoustics. 129.8 Landscape furniture wooden & metal 2.36 TOTAL Say Rs.46 129.50 . 120 9.
50 16. in Lacs) (Rs.L.40 48.) (Rs.38 252288 6.POWER The estimates of the power are given below: Particulars Total Power Requirement Total Units required at installed capacity Load Factor N.P.P.00 1051200 0.78 (Rs. (70%) Rate per Unit Cost of power through H.Set Units (30%) Cost per unit by G. (A) G.80 588672 5.) (Rs.50 32. in Lacs) (Rs.N. in Lacs) KW . Set (B) Total(A+B) Proposed 150. Set Cost of power through G.V.D.
No. 1 2 3 4 5 6 7 8 9 Indirect/Administrative General Manager Manager Front Office Manager Account Manager Accountant Receptionist Head Security Guard Operator Security Guards Total(A) 1 1 3 1 1 3 1 1 3 13 25000 15000 7500 7500 4000 4000 5000 3000 3000 25000 15000 22500 7500 4000 12000 5000 3000 9000 95000 B. Salary/ month Total Salary A. 1 2 3 Direct/Operations House Keeping Incharge Head Chef Assistant Chef 1 3 12 25000 20000 10000 25000 60000 120000 .MAN POWER The total man power requirement of the restaurant will be 90 persons who will get direct employment. Particulars No. Their detailed salaries and wages pattern is given below: Sr.
4 5 6 7 8 9 10 11 12 13 14 F & B Manager Security Incharge Electrician Guide/Trainer Plumber Helpers Store Keeper Sweeper Driver Gardener Waiter Total(B) 1 1 1 2 1 10 1 6 4 10 24 77 7500 5000 5000 4000 4000 3500 3500 3500 3500 3000 3000 7500 5000 5000 8000 4000 35000 3500 21000 14000 30000 72000 4100000 505000 Total Wages .
ENVIRONMENTAL ASPECTS ITC constantly endeavors to minimize the direct and indirect environmental impact of its business operations. Requirement Under Noise Control Ordinance There shall be no Excessive levels of noise. Reuse and Recycle‟ The proposed restaurant consist of 3 themes namely : SNOWY WINTERS RAIN AND LUSH GREENERY GOLDEN SUN AND BEACH ENVIRONMENTAL ANALYSIS Environmental repairs and maintenance is a tedious job which was needed to be conducted on a large scale so as to practice the principles of conservation i. The launch of the new theme restaurant by STR will work on the similar lines of ITC group with their guiding principle of „Reduce. Requirement Under Waste and Water pollution Control Ordinance Public sewers of sufficient capacity are available to collect the effluent discharges from the restaurant and adequate space and facilities for waste storage and pick up available. 2. from ventilating systems & refrigeration Units. to create a safe. . 3. ITC group is actively committed to environmental protection and so is its subsidiary STR Pvt. harmonious and ecologically balanced environment for our hotel guests and employees.e. Not only does it ensure serious and concerted efforts to conserve natural resources but. ENVIRONMENTAL REQUIREMENTS for our venture are listed below: 1. the Company also strives to enrich the environment. wherever possible. Requirement Under Air Pollution Control Ordinance There shall be no visible fume emission from the kitchen exhaust and no Odour nuisance to the nearby sensitive receptors.. Ltd.
e. ii. 2. For the lawns outside. Artificial Rain Water Management: Rain Water Harvesting System is used so as to ensure zero discharge into municipal drainage. Premises are provided with proper flushed toilets. v. Health i. Given that the roofs and side walls of a building account for 47 per cent of heat gain in a building. Energy & Atmosphere 1. iii. No manholes are located in the proposed kitchen. ii. 2. Use of solar photo voltaic for emergency lighting would be done so as to save on generators. iii. Premise is laid on with mains water supply. toilets and seating accommodation. . For water saving the focus will be on zero discharge i.SALIENT FEATURES SO AS TO COMPLY WITH ENVIRONMENTAL REQUIREMENTS : 1. Water Efficiency i. Light Pollution Reduction: Minimum exterior lighting will be used to limit night sky pollution. Innovative Waste Water Technologies like Fluidized Aerobic Bioreactors (FAB) sewage treatment plant will be used so as to save on the loss of water. Premises are capable of providing an independent and separate ventilating system to the kitchen. Use of green material would be done to reduce heat gain from rooftop / building envelope with high performance glazing and proper insulation material . food preparation room and scullery. all water will be recycled through a sewage treatment plan. the heat-deflecting paint means that the air-conditioning can run at a comparatively higher temperature . ii. 4. 3. the plants have been chosen for not being water intensive. “High albedo paint” deflects heat back into the atmosphere. iv. Sustainable Site i. Heat Island Effect: More than 75% of the terrace will be insulated and coated with the reflective high albedo roof paint. Premises are provided with a proper drainage system.
5. why the staff needs to support the program. A solar hot water system and solar concentrator would be installed for kitchen. 7. Cooking stoves in restaurant kitchens are designed in such a way that no excessive air pollutant emissions are generated when in use. why those actions are important. 8. Designated area is provided so as other customers do not get affected by the smoke. Environment Tobacco Smoke Control: Designated smoking area will be provided at convenient locations with separate exhausts. Low Emitting Materials: Low VOC levels of adhesives / sealants would be used for carpets /composite woods / paints. Indoor Environmental Quality 1. 6. as well as encouraging staff to take their own green actions would be promoted and any ideas towards the green movement would be supported by STR. CO2 Monitoring: Sensors at various locations are planned to monitor CO2 levels. Educating Employees Educating employees about the environmental actions the property takes. Food Quality All the requirements of Food Safety Act are adhered to for ensuring that food is safe for human consumption. 4. and no sale of food that is contaminated or otherwise unfit for human consumption will be fulfilled. 2. .3.
the means of Financing is decided.00 104.the interest on term loan during the construction period of 6 months at the rate of 12% is Rs 49. .00 80. This is excluded while calculating contingencies. The preoperative expenses incurred up to the point of time the plant and machinery are ready for use are capitalised by apportioning them to depreciable fixed assets in proportion to their book values.On the basis of this. Cost Of The Project Land Site Development Building Machinery Furniture & Interiors Other Fixed Assets Pre-operative Expenses Preliminary Expenses Provision for Contingency Margin Money for Working Capital Total Project Cost (Rs.00 15.58 lacs.COST OF THE PROJECT It is the first step in conducting financial analysis and it is very important as it decides the initial investment that the project need to be carried on.30 281.43 228.36 Here the following assuptions have been considered after the technical analysis: Average cost of land = Rs 4600 per sq ft of land Here land required = 3200 sq ft Total land cost( basic cost + other costs) =Rs173.86 1.59 4.43 lacs Through technical analysis all components of the the cost of the project can be calculated. In lacs) 173.50 50.378.44 311.24 129.
14 31.30 0 281.00 0 30.95 5.59 lacs(excluding margin money for working capital and interest during construction period).50 0 50.00 0 15. Escalation may arise due to minor changes in the specifications of the buildings. Site Development Buildings Machinery Furnitures & Interiors Other Fixed Assets Preliminary Expenses Pre-operaticeEXpense(Excluding Interest) Total Contingency Provision Firm Costs Non-Firm Costs 0 228.59 Thus the total provision of the contingencies would be Rs 104.04 104. contingency provision is made on the basis of project implementation scheldule.12 12. The preliminary expences incurred is about 1% of the total project cost and therefore can be written off over the ten years entirely. .00 1. plant and machinery which result in the increase of costs.83 28.42 Escalation @ 10% 22.50 3.44 0 311.Over and above the escalation under various items of cost on the basis of latest avaliable rate of inflation.24 0 129.
57) +salaries (35.14 0.79 88.37 19.Raw Materials (9.78 1.52) = 88.5 1 1 75 75 75 Particulars Utilities Salary Raw Materials perishable nonperishable cash requirement Here the cash required to be held by the unit for day to day expenses is estimated to be Operating cost (181.57) .5 75 41.66) +administrative overheads (10) –depreciation (129.14 .95 12.WORKING CAPITAL REQUIREMENT Usage at utilization 100 % capacity Bank Finance Requirements(months) % 2 75 48.
464 1.958 15.744 5.116 0.736 0.175 5.233 16.245 0.329 1.567 6.540 0.829 1.488 3.588 1.343 0.863 Utilities Salary Raw Materials perishable nonperishable cash requirement Total Particulars Working Capital Utilities Salary Raw Materials perishable nonperishable cash requirement Total 2nd yr 90% operating capacity Working Capital Gap 5.793 3.113 4.367 1.348 1.611 20.371 1.595 Particulars Working Capital Utilities Salary Raw Materials perishable nonperishable cash requirement Total 3rd yr 95% operating capacity Working Capital Gap 5.446 Margin Money 1.982 0.911 4.724 4.931 1.243 19.978 21.122 0.392 1.051 4.457 0.149 7.350 1.183 3.114 0.653 5.402 6.Working Capital = Heads * Usage * (Requirement In months/12) Particulars 1st year 85% operating capacity Working Capital Working Capital Gap Margin Money 6.180 0.490 1.438 1.728 1.110 0.739 .451 5.719 0.304 Margin Money 1.682 14.561 4.317 4.484 6.435 7.
000 210.000 228.000 256.000 28.000 48.000 468.4 Means Of Financing Term Loans @ 12% Promotors Total Project Cost 827 551 1378.000 320.000 1.6 0.000 48.MEANS OF FINANCING Here the project is proposed to be funded through promotor‟s contribution (40%) and term loan from banks (60%).000 110.000 55.000 120.000 441.000 420. Here rate of interest on the loan is 12 % from IDBI.274.000 240.000 60.000 1250000 625.000 120.000 96. the estimated sales are: SALES ESTIMATION TUESDAYTHURSDAY Total week per SUNDAY MONDAY FRIDAY SATURDAY LUNCH LUNCH BEVERAGE DINNER DINNER BEVERAGE TOTAL per day(in Rs) TOTAL annually in lacs Total Annual Revenue 60. % 0.52 1.000 36.000 846.000 120.000 120.000 35.000 468.000 240.000 240.36 ESTIMATION OF REVENUE EXPENSES AND PROFITS As already mentioned in the Demand Analysis.274.52 .000 45.
The Raw Materials have been calculated by taking into account its two components: Perishable items Non perishable items . 90% in the sesond year and 95 % in the third year.341 46. Repairs and maintainance as well as administration overheads have been taken as rough estimates.95 Power.341 46.41 56.341 46.341 46. labor.COST OF PRODUCTION Cost of production includes Raw materials. Fuel and Gas as well as Salaries have been calculated in the Technical Analysis.44 50.6 1.85 43.95 IX 0.85 41.902 46.95 VI 0.76 39.13 48. Cost of Production Years Operational Utilization I 0. fuel.02 1.341 46.341 46.463 43. Here capacity utilaization has been assumed to be 85% in the first year.95 VII 0.6 1.341 46.5 1. gas Repairs and Maintenance(in lacs) 41.86 53.95 V 0.94 46.6 1.9 III 0.85 II 0.95 VIII 0.6 Salary Administrative Expense 41.66 37.6 1.6 1.08 10 12 14 14 14 14 14 14 14 14 Estmated Power.95 IV 0.95 X 0. utilities and administration overheads.95 35.341 1.6 1.6 1.
05 4.48 .37 40880 40150 51100 43800 29200 306600 365000 233600 383250 120450 365000 19.89 32.nos. Apportionment Table for Pre-op Expenses and Contingencies Fixed Assets Value Proportion Pre-op Expense Contingencies Building 509.nos.Raw materials average cost (in Rs per lt. kg.74 0.bottle) 6 15 4 5 annual consumption 2190 5475 1460 1825 cost year per 19710 355875 277400 584000 12.31 24.kgs.13 10.51 40.29 Machinery 311.54 Furnitures & Interiors 129.79 28 22 35 3 40 42 1000 320 350 330 50 4 5 4 40 2 20 1 2 3 1 20 1460 1825 1460 14600 730 7300 365 730 1095 365 7300 PROVISION FOR DEPRECIATION Here provision for depreciation is made by the Written Down Value method as per the rates given in the Income Tax Act.00 5.36 13.23 Total 1000.54 Other Fixed Assets 50.76 53. Preoperative expences during the construction period and contingencies are allocated to the fixed assets in proportion to their values before providing depreciation.5 0.bottle) perishable Milk vegetables red meat white meat Total non perishable rice wheat flour eggs others alcoholic drinks beer wine vodka/gin/ rum whisky others non alcoholic drinks Total 9 65 190 320 Daily consumption (lt.0 0.24 0.
7 320.0 279.3 138.7 .3 13.0 48.2 703.1 920.6 59.43 V 173.0 233.3 28.5 35.9 35.9 595.8 11.3 38.7 320.5 356.0 15.4 5.2 4.3 2.7 91.3 66.5 25.5 183.2 12.1 81.1 39.0 839.5 Other Fixed Assets Opening Balance Less:Depreciation@10% Closing Balance 59.1 28.3 105.6 Furnitue & Interiors Opening Balance Less:Depreciation@10% Closing Balance 153.8 31.6 9.3 72.9 259.5 8.5 31.0 35.1 90.1 645.43 IV 173.1 13.4 1011.43 II 173.9 320.4 54.3 242.2 64.1 48.9 1228.0 45.5 81.5 Machinery Opening Balance Less:Depreciation@13% Closing Balance 368.9 20.8 1113.1 396.3 53.1 138.5 22.2 767.1 139.4 15.4 73.0 121.3 920.9 159.2 44.9 22.2 1113.0 57.0 4.8 242.3 20.9 645.4 111.3 839.6 90.4 7.7 23.7 183.9 53.4 543.1 767.4 210.5 31.9 320.5 2.1 288.3 5.43 III 173.9 440.0 396.9 50.7 105.43 Building Opening Balance Less:Depreciation@10% Closing Balance 603.8 288.0 595.Depreciation Schedule(Written Down Value Basis) Years I Land 173.9 23.8 60.43 VI 173.43 IX 173.0 6.8 139.5 3.5 129.3 489.9 53.2 43.9 3.8 124.8 111.9 38.7 47.2 5.2 124.0 703.2 100.4 59.0 36.2 211.4 1011.2 27.3 81.8 102.9 115.6 356.3 48.1 489.6 211.4 543.8 28.4 91.0 66.9 26.6 100.7 279.1 18.2 73.43 X 173.9 233.43 VII 173.9 159.7 Total Opening Balance Less:Depreciation Closing Balance 1358.3 549.9 32.2 440.9 2.1 121.8 25.0 3.9 259.43 VIII 173.6 1228.8 43.7 41.6 10.
34 136.82 662 82.70 496 63.30 10 16.96 0.00 16.20 248 82.85 0.96 0.65 96.42 Year 1 2 3 4 5 6 7 8 9 10 INTEREST ON BANK BORROWINGS This is the amount that is calculated on the working capital gap to pay back the bank at the rate of 12%.70 331 43.30 1.97 496 82.30 1.70 579 73.35 83 82.19 155.86 15.30 1.30 1.30 1.96 0 2 14.00 16.96 0.59 3 15.59 14.00 16.96 0.00 16.30 7 16.72 86.30 1. Interest on bank borrowings@12% 1 Opening Balance Repayment Increase Closing Balance Interest @12% 14.45 1.00 16.96 0.86 16.30 6 16.75 0. Repayment and Interest Schedule of Term Loan Opening Balance Amount Repaid Closing Balance Interest @12% Total Repayment 827 82.12 165.96 0.27 165 82.42 126.70 662 83.INTEREST SCHEDULE Interest has to be paid at the rate of 12% for the next ten years.30 1.04 175.49 116.70 165 23.30 1.27 145.70 744 93.30 9 16.74 744 82.30 8 16. Below is the repayment schedlue.00 16.45 4 16.59 1.96 0.70 414 53.70 0 3.30 .30 5 16.70 248 33.70 83 13.00 16.57 106.12 331 82.89 579 82.04 414 82.
50 1.36 102.02 1.16 515.50 944.45 220.87 570.50 558.14 Taxable Profits 390.65 .18 905.10 1.61 72.50 814.50 64.50 840.94 879.47 863.63 277.07 929.87 1.13 1.50 786.31 1.89 244.80 167.15 57.34 765.53 265.94 252.50 45.27 648.08 1.50 885.33 604.17 1.50 736.79 970.95 236.52 550.76 619.47 129.14 259.60 50.64 840.42 81.17 1.43 588.66 957.TAXABLE INCOME Tax payable income Calculations 1 Gross taxable Profit Profit as per profitability statement Less:Depreciation under WDV basis Less:Preliminary expenses written off Total Deductions 2 3 4 5 6 7 8 9 10 689.42 923.57 115.40 1.87 633.47 914.48 194.53 91.09 897.79 646.79 271.79 454.
To do this. for ITC. The technique used to financially appraise the project is called capital budgeting. Capital budgeting is a required managerial tool. a sound procedure to evaluate. based on the return achieved in FY 08-09. Term loan and working capital loan are charged at 12% p. Tax rate applicable is as follows: o Tax rate @ 30% o Surcharge @10% o Education cess @ 3% o Thus total tax rate being 33. One duty of a financial manager is to choose investments with satisfactory cash flows and rates of return.a for 10 years Market rate of interest as per: o IDBI: 12% p. using economic appraisal or some other decision analysis technique. the case for proceeding with a project or proposal.. reason being IDBI and ITC have long banking relations. o SBI : 13. and select projects is needed.33% Depreciation rates are based on the market prevailing rates: .a. Therefore.a. This procedure is called capital budgeting.Financial Appraisal Project appraisal is a generic term that refers to the process of assessing. payable semiannually o ICICI : 12% p.a. in a structured way. a financial manager must be able to decide whether an investment is worth undertaking and be able to choose intelligently between two or more alternatives. compare.a. payable at equal interest installments Hence cheapest source is IDBI at 12 % p.5% p. UNDERLYING ASSUMPTIONS FOR THE APPRAISAL Return on equity required is 25% approximately. It often involves comparing various options.
67 years. This is a fairly good indicator. "Elsewhere in the world. "Profit margins vary from ." said Marina Smirnova. a $1000 investment which returned $500 per year would have a two year payback period.o Building @ 10% o Machinery @ 13% o Furniture and interiors @ 10% o Other fixed assets @ 10% For the purpose of calculation of cost of land prevailing market rate from property from “Indiaproperty. Each of the restaurants shall have enough vacant space to accommodate 150 people in case of large gatherings required." Shorter payback periods are obviously preferable to longer payback periods (all else being equal). the cost of building a five-star hotel is very different from that of building a three-star one. TECHNIQUES USED: Payback period discounted: Payback period in business and economics refers to the period of time required for the return on an investment to "repay" the sum of the original investment. It intuitively measures how long something takes to "pay for itself.8% Thus payback period calculated as per discounted values: 2. Reinvestment rate is same as the discounting rate. For example.67 years .67 years This implies that the restaurant shall break be able to recover initial investment at the end of the 2. while in India these costs get leveled. The seating at each restaurant shall be 60 seater with tables for two each which could be conveniently joined and disjoined as per the requirement. the head of the Analytical Department at the University of Hotel. as 2. Weighted Average cost of capital as calculated = 14. considering an average payback period applicable in the industry is of 3 years . Travel and Restaurant Businesses association.com” has been used.
20) 1433.15 1629.237.049.84 5.104.382.282.160. the higher a project's internal rate of return.08 827.20) (1.34 427. As such.27 Cash Flows at Cummulated discounted value Cash Flows (1. the more desirable it is to undertake the project. Assuming all other factors are equal among the various projects.36 487.602.hotel to hotel.65 6.06 1669." Payback Period Year 0 1 2 3 4 5 6 7 8 9 10 Cash Flows (1.794.07 635.85 1529.01 1700. but on the average a hotel operating in the high-end segment pays back in six to eight years.37 1650.52 556.08 945.248. and a restaurant in three to four.45 5.99 Internal Rate of return: The discount rate often used in capital budgeting that makes the net present value of all cash flows from a particular project equal to zero.027.99 (133. IRR = 109% .20) 1.21) 1.709.54 1660.86 1690. the project with the highest IRR would probably be considered the best and undertaken first.85 1679.00 2.077.86 725.22 4.28 1. IRR can be used to rank several prospective projects a firm is considering.876.382.78 3.46 1641. This is why this segment is so attractive for investors. Generally speaking.98 6.01 3.382.08 1.
INTERNAL RATE OF RETURN
Year 0 1 2 3 4 5 6 7 8 9 10 Cash Flows (1,382.20) 1433.85 1529.15 1629.46 1641.37 1650.54 1660.06 NPV @ 90% 1669.85 NPV @ 110% 1679.86 1690.01 1700.27
Limitation of IRR in current project: o IRR gives how much return is the project generating, but since the project undertaken does not have a definite time period, thus is not valid enough. o Cash flows used are for 10 years, however if only say 5 years cash flows were to be used, then IRR would have surely been less than 109%. o Thus shorter the period, lower would have been the IRR.
Profitability index: An index that attempts to identify the relationship between the costs and benefits of a proposed project through the use of a ratio.
Year 0 1 2 3 4 5 6 7 8 9 10 Cash Flows (1,382.20) 1433.85 1529.15 1629.46 1641.37 1650.54 1660.06 1669.85 1679.86 1690.01 1700.27 Cash Flows at Cummulated discounted value Cash Flows (1,382.20) (1,382.20) 1,248.99 (133.21) 1,160.28 1,027.08 1,077.00 2,104.08 945.01 3,049.08 827.78 3,876.86 725.22 635.45 556.84 487.98 427.65 4,602.07 5,237.52 5,794.36 6,282.34 6,709.99
Profitability index of 4.85 is a very good indicator of the project. An index above 1 indicates that the project is profitable. Industry average for profitability index varies according to different ventures. There is no standard as such available. But to our understanding, a profitability index of 4.85 is a high index, indicating high profitability associated with the project.
PROJECTION OF FINANCIAL STATEMENTS For projecting the financial condition of the project, forecasts of income, assets and liabilities and cash flows are necessary. Based on the assumptions and estimates the following statements are prepared: Projected Income Statement Projected Cash Flow Statement
67 7618.86 102.63 45.34 Total(B) 1095.55 268.83 943.01 1700.54 1660.75 289.99 Opening Balance 0 -266.85 1679.82 1964.12 12627.16 1167.04 1903.12 12627.838 4326.09 285.87 72.37 982.11 115.19 91.13 Profit before tax & preliminary expenses 689.40 967.46 1641.37 1650.88 1979.91 8 925.60 0.21 Repayment of term loan 82.49 3.688 2696.47 64.81 82.50 997.99 Difference(A-B) -266.00 261.66 860.93 179.47 82.69 0.69 2696.30 5967.27 10948.51 6 7 910.666 7618.94 82.76 51.44 9 938.44 974.15 81.06 1669.06 293.Sources of Fund 1 2 Projected Cash Flow Statement 3 4 5 840.04 279.84 258.53 1949.26 .93 185.36 959.58 82.27 829.48 216.16 1167.207 9278.21 9278.03 82.93 206.70 1994.85 10 951.97 14317.93 171.93 202.65 878.83 Add:Depreciation 130.16 1433.99 16018.56 1763.02 1934.93 191.66 881.93 82.97 14317.93 Income Tax 130.66 Total(A) 894.23 0.64 1888.69 82.09 989.71 234.48 82.266 10948.15 1629.97 82.30 1919.85 1529.32 Increase in Working Capital loan 11.299 5967.86 1690.27 Closing Balance -266.54 274.84 4326.93 211.46 951.07 57.48 Prelimianary/Pre-operative Expenses 95 Increase in working capital3.49 8 Term Loan 829.56 765.26 Application of funds Fixed Assets1000.17 151.65 Total generation of funds19.32 1650.93 197.
64 0.39 Interest on Working Capital Loan@10% 1.79 1210.34 302.64 Work in progress 0.64 0.341 10.98 50.65 84.5 1.54 1.34 202.36 159.Year Projected Income Statement I II III IV V VI VII VIII Operational Utilization 0.25 404.77 74.50 839.228 19 1.79 381.64 0.06 53.37 135.9 0.93 894.70 185.95 0.39 41.14 33.57 606.93 840.6 81.07 1.09 404.216 0.6 57.07 179.341 10.79 1210.51 64.228 Finished goods 17 18 19 Repairs .Water&Fuel) 41.82 107.228 19 1.90 Total Expenses(E=B+C+D) 393.73 .27 46.40 150.64 1.95 0.54 120.73 63.54 122.49 1.79 1210.14 285.09 300.17 57.51 55.Maintenance & Insurance 1.76 Administrative Overheads 12 10 Marketing Expense 54.95 350.65 102.50 923.50 858.30 73.35 180.228 19 1.95 0.6 64.6 72.02 1.85 14 60.60 860.50 908.54 118.25 46.95 0.15 43.54 116.14 383.21 46.64 0.43 1.40 D Financial Expenses Interest:Term Loan@10% 83.32 189.38 43.11 115.341 10.85 14 60.341 Raw materials 9.33% 130.51 35.19 1.23 Profit(A-E) 689.55 371.79 1210.25 E Preliminary Expenses written off 1.04 315.51 25.73 343.341 10.72 925.84 343.04 394.86 1.47 1.50 893.50 876.87 1.56 Income Tax@33.204 0.50 1.17 Profit after Tax60.902 46.463 43.44 1.32 910.08 151.15 371.69 537.08 10.00 358.56 765.65 556.54 125.64 46.14 23.14 394.85 0.228 19 1.18 C Administrative Expenses Salary 35.73 302.07 1210.94 14 60.00 332.17 197.46 169.35 1.97 591.35 93.17 46.51 45.37 574.52 10.39 2 Retained Profits 260.36 515.33 454.64 0.57 171.341 10.68 191.228 19 1.95 Income Sales(A) 1083.39 764.13 14 60.66 37.48 46.06 Taxable Income 390.67 48.6 Depreciation 130.54 114.51 Total(D) 94.50 Profit before Tax 688.34 1147.86 14 60.79 Operating Cost Utilities(Power.95 0.11 39.44 142.35 Total(C) 99.54 383.64 878.79 1210.15 1.83 Total(B) 199.59 1.6 91.83 369.44 14 60.06 358.
the project is highly recommended. Reinforcing the consciousness in quality. as well as the conclusion of the report: Reinforcing the brand ITC and its values. Such restaurants have high potential demand in metropolitan and tier 1 and 2 cities. the project will certainly be a business of good margin and high development potential Finally the following 7 considerations suggested to the key reference for the projects future development. .Conclusion: Appraisal of the product: The restaurant business segment in food service industry is a highly profitable venture. as it has high profitability index and the discounting payback period is shorter than the industry average. Considering good scope of earnings associated with the project. Thus combining together the various analysis. Factors like o increasing household income at disposal o higher number of working couples o MNC culture o Change in lifestyles The above mentioned factors account for increasing demand and high growth potential in this sector. Finacial appraisal The project is financially viable. Theme restaurants are the upcoming trend in the market and are here to stay for long.
that is of its chefs. Reinforcing the consciousness in service. . especially in comprehending the competitive environment Reinforcing the consciousness in talent. To actively develop new recipes and innovative settings and ambience in the restaurant To constantly master the market trend. where every business effort is centered around serving the customers better than the competitors. To strive for authentication of ISO 9002.
We are expecting a cordial vendor-vendee relationship. DLF Corporate Park DLF Qutab Enclave Phase III Gurgaon . Okhla Industrial Area. New Delhi-110020 Ph:+91-11.NEW DELHI Block 2-A.in sales@ecowater.ECO WATER SOLUTIONS TECHNOLOGIES (P) LTD.ANNEXURE 1 VENDOR Vendors have been selected keeping in mind that the vendor‟s performance satisfies the project needs.BLUE STAR LTD.in ecowatersolution@yahoo. this will ensure low transportation costs of equipments.122 002 (Haryana) Ph: (91) (124) 4094000 Fax: (91) (124) 4094004 2.41024791.co. +91-11.co. Most of the vendors are Delhi based .41024792 Fax:+91-11-41024790 Email : info@ecowater. B-83.co.in . 1.I.. Phase.
34. Chak Bandi Road. New Delhi-110034 Ph : 27348618 Fax : 27345935 4. KUSHAL ENGINEERS INC. Begam Bagh Near Satyam Plaza Meerut . Pitampura.KC TUBEWELL WORKS RU-33.3.250001 Uttar Pradesh India Ph: +91 121 2652604 +91 9897100900 +91 9837035305 Fax +91 121 4007596 5.HITEK SOLUTIONS Shop 7 first floor A-4 C s c Market Paschim Vihar Delhi-110063 .
West End Mall.SUKAM POWER SYSTEM LTD. Fax:-+91-11-28523718. INDUSTRIES.in 9. : +(91)-(11)-41845134 E-mail: elegante@vsnl. K.6. S. Sector 37 Gurgaon 122001 ph: 01244170500 8. New Delhi-110046.APEX ELEVATORS WZ-1656 A.net. DELHI Mr. Mayapuri Industrial Area. kkelegante@yahoo. District Centre. KOBRA INDIA SECURITY SYSTEM Janak Puri. India Ph.Mobile . (M):.co. First Floor.+91-11-28523721. New Delhi. New Delhi (India) Phone. Plot No. Phase-II New Delhi .+91-9891983954 7. Nangal Raya. Delhi 110058 011 25552337 09810055338 . Pahuja (+91-9811144169) F -57. 54. L.:. Udyog Vihar Phase VI.110 064. K. 832.
India Ph: +(91)-(11)-28763690/28763486 Fax: +(91)-(11)-28763690 13. Sector-1. ENGINEERING I-73. TC Jaina Tower -III.PRABHAT DOOR WIN INDUSTRIES 39. India Ph: +(91)-(11)-25224833/25224834 Fax: +(91)-(11)-25226473 . A. North West Avenue. Delhi . India Ph:91-11-27750653 Fax:91-11-27750654 12.110039. Punjabi Bagh. DB-1. Delhi . janak Puri.VISHAL (COOL) INDIA PVT LTD B-17. M. New Delhi. ST No. Local Shopping Center. 9. Bawana Industrial Area.110 026. Delhi . New Delhi. 102.SOMYA PYROTEX SERVICES Block A1.110 005. Anand Parbat Industrial Area. 110058 09811141246 11.F.10.
Jhilmil Industrial Area.S.110 001.14. Road.S. G. Delhi . India Ph: +(91)-(11)-22583963/22583247/22134816 Fax: +(91)-(11)-22592770/22134814 ANNEXURE 2 .T. FOUNDRY CHEMICAL INDUSTRIES PRIVATE LIMITED A-6/3.
No 2.QUESTIONNAIRE Please spare a few moments to answer the questionnaire. More than 6 3. Yes b. Once in 2-3 months e. If given a choice. Your responses will be kept confidential. 1-2 c. Your responses will help us understand your needs better. 5-6 e. Budget Restaurants b. 1. ITC’s theme Restaurant c. Once in 2 weeks c. Once a week b. The reason that influenced your decision for the above choice? . 3-4 d. Do you prefer dining in a theme Restaurant? a. None of the above 4. How many theme Restaurants are you aware of? a. Restaurants in ITC hotel d Others (Please Specify) like Bukhara 6. Once a month d. where will you Dine out of the following choices? a. What is the frequency of your Visit to a Restaurant? a. 0 b. On which of the following parameters you make your decision regarding visit to a new restaurant? (Rank them according to your preference) a) Price d) Brand name b) Ambience e) Food Quality c) Multi-Cuisine f) Multi Theme 5.
winter e. retro 9. bollywood d. How much per person would you like to pay for a meal? Including beverage a. Depends d Never 11) Any other suggestion for a new theme Restaurant? . rainy b.500-1000 c) >1000 d) No limit 10. Many Times c. Agree b. Which theme excites you more from the following list of themes? (Rank them according to your preference) a. How many times would you like to come? a. The company must start a Multi Theme Restaurant with Multi Cuisine and excellent ambience? a. Once b. Less than 500 b.a) b) c) d) e) Price Brand Name Dining Experience Cuisine Other (Please specify) 7. beach c. Disagree 8.
Name: ______________________ City: ______________ Gender: Male / Female Marital status: Married / Single. Occupation : Age: _______ PERSONAL DETAILS (We assure you that your personal details would be kept strictly confidential and would not be disclosed to anyone): THANK YOU FOR YOUR TIME AND VALUABLE INPUT .
This action might not be possible to undo. Are you sure you want to continue?
We've moved you to where you read on your other device.
Get the full title to continue listening from where you left off, or restart the preview.