Team Dronacharya Presents Business Idea & Model of Niche segment, Eco-Friendly Self Help Concept Hostel for

NRI Students.

ft. per sq. Full occupancy from year one itself. 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. fun.Assumptions and Justifications y Survey with students & local public shows the need of similar kind of y y y y y y y y residential apartments for various reasons like: privacy. Considering high rate of interest at 18% for VC Fund & 7% for F & F loans. Ground floor + three floor = four floors. Survey shows land rate is 2000 Rs. Government permits only four floors. . 200 students per annum on an average. freedom. etc. Expected profits to be 15%.

.Team y Abhinav Jain (Marketing & Sales) y Praveen G (Finance & Revenue) y V C funding will appoint one member for our company. (Management Expert) y We are looking for a technical person from civil or architect background.

.Funds y 5 crore self funding y 10 crore venture capital funds at 18% interest rate. y 5 crore family and friends loan at 7%.

0000000 3. (Rs.0000000 20.) .0000000 2. Particulars Sources: Self Funds Family & Friends Fund Venture Capital Total Applications: Land & Building Supportive Infrastructure Furniture Investment (F.0000000 3.0000000 5.0000000 5.0000000 2.0000000 Amt.D. in Bank) Working Capital 10.0000000 10.Fund Flow Statement.

00000 11.000 25.) Number of students Monthly Rent (Rs.Type and size of room Type of room Size of room (Sq.00000 30.) Single sharing Double sharing Triple sharing Four sharing Total 150 600 1200 1500 1 2 3 4 15.000 44.25000 9. ft.) Total Monthly Rent (Rs.00000 .75000 6.000 36.000 3.

Fully furnished eco friendly rooms. . indoor games and vehicle parking. Swimming pool. Veg & Non Veg mess for Break fast and dinner. Wi Fi internet connection round the clock. Self billing Laundry. y Limited time lodging for parents within same premises on y y y y y y advance booking. saloon and provisional store.Services available in hostel y Natural light availability. Medical expert availability round the clock for emergencies. Gym.

will be used. y Two plots of 10.000 Sq. . rain water harvesting and reuse.Operations Feasibility y Number of rooms 25*4 = 100 y Eco friendly system will be adopted for light during day time. solar and wind energy system for electricity. 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. Ft.

Human Resource Feasibility a) b) c) d) e) f) Operations Management Infrastructure Management Finance Management Marketing and Sales Management Human Resource Management Technical Management (15 staff) (5 staff) (3 staff) (2 staff) (2 staff ) (2 Staff) .

y y y y y railway station and bus stop. . Tie-ups with student consulting agency. 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.Marketing Feasibility y Hoarding and banners in & around the nearest airport. Publicity.

Expected profit is 15% The lodging provided to the parents of students will be an extra source of revenue for the business. y y y y (30.12 : 1 .00000 Monthly Rent * 12 Months) Estimated pay back is 5 Years.60crore. The benefit cost ratio would be 1. 3.Finance Feasibility y Estimated revenue in a year is Rs.

893 0.507 0.00.82.000 3.60.60.15.000 2.60.96.00.60.60.60.00.797 0.60.04.567 0.000 3.404 0.00.00.24.00.000 3.92.000) 3.60.48.635 0.000 3.28.00.000 0.00.00.00.00.000 1.00.000 3.000 DF @ 12% 1.000 1.45.92.00.24. Net present value calculation of the project.000 3.The life span of the project is expected to be 10 years.000 (18.00.000 20.000 1.00.53.28.000) 3.29.000 2.322 Amount after discounting (18.000 3.000 2.52.000 3.00.28.712 0.60.00.452 0.000 .21.32.000 1.86.44.000 1. Year 0 1 2 3 4 5 6 7 8 9 10 Total cash inflow Total cash outflow Net present value Cash Flows (18.60.000 3.60.56.00.000 2.361 0.000) 2.

. y Political factor and competitors could be an strong threat to the business.Macro Economic Factors y Manipal as an education hub gives good opportunities to earn from services to students. y Developing market of education and awareness towards eco system will gain great profit as well as good will in long run. y Already established services do not provide exclusive and ´eco-friendlyµ residential apartments which gives an opportunity for our business.

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