Shubh Labh (Roll No 35,38,59)

8/14/2019 Shubh Labh (Roll No 35,38,59)

1/21

LAUNCHING OF A NEW PRODUCT IN THEMARKET


2/21

t h e p o o j a s h o p ... i n a bo x


3/21

NEED

Poojas classified into festival and occasionbased.

Common as well as specific Pooja Samagri.

Search and buying process for PoojaSamagri.Problems related to quality and availability

at one shopConsumer purchases the best quality

irrespective of price.Need for convenience and assurance of

the quality of Pooja items.


4/21

BUSINESS CONCEPT

Pooja Shop in a Box

Product:

Branded Pooja Kits available at Supermarkets

Target Market Hindu Households visiting Super Markets/ Malls / Hyper Markets Corporates, Home and Car Loans companies, Real Estate

Developers

NRIs

Business:Assembling, Packaging, Marketing & Distribution of the Pooja Kits


5/21

CURRENT MARKET SCENARIO

Unorganized market

2 major national brands MANGALDEEP and CYCLE

agarbatti brands.

Locally assembled kits available for some poojas

Nightangle company has recently launched Meditation

Kit under a brand Vedic Cosmos

Decorated Pooja Thalis available online


6/21

MARKET SIZE ESTIMATION

28 Urban Cities =10 Cr

Hindus (80%), Households= 2 Cr

Visit Supermarkets (25%) =50 lacs

Target Households (50%) =25 lacs

Converted 1st Yr (5%) =1.25 lacs


7/21

Our projections for corporates from the first year

operations are

(Lacs)

Home Loans 0.5

Car Loans 0.15

Corporate gifts 0.6

Total 1.25


8/21

MARKETING PLAN-PRODUCT

10 Pooja Kits classified into Festival based and

Occasion based Kits.

Customized packaging for different regions

Booklet of Pooja rituals and significance to be include

Our Products would not include Examples

Perishable ItemsFlowers, MangoLeaf

Expensive Metallic Items Gold, Silver

Disproportionately large volumeitems 1 Kg of rice

Food Coconut


9/21

PRODUCT

Ganpati Pooja

Diwali Pooja

Karva Chouth

Satyanarayan Pooja

Griha Pravesh Pooja

Vaastu Shanti Pooja

Thread Ceremony Pooja

Naming Ceremony

New Pooja Ghar

Shop opening Pooja


10/21

PRODUCT SHUBH DIWALI

List of Items2. Deepak

3. Idols (Lakshmiji and Ganeshji)

4. Ganga Jal

5. Honey

6. Ittar

7. Moli

8. Brass vessel

9. Miniature Coconut10. Dhoop

11. Sindoor

12. Mishri

13. Maachis

14. Kapoor

15. Loung-Elaichi

16. Akshat Roli

17. Kesar18. Rui Batti

19. Haldi

20. Supari

21. Agarbatti

22. Hawan Powder

23. Pooja Booklets

24. Red cloth


11/21

MARKETING PLAN

Price

Price range from Rs 180 400

Satyanarayan Pooja, Ganpati Pooja Lower End New Shop Opening, Griha Pravesh Upper End


12/21

MARKETING PLAN

Place

Supermarket/Dept Stores would be the main

selling points

Distributed by existing distribution channels

Pundits would be alternate channels of

distribution

ISKCON , Art Of Living

Selling points in places like West Vrindavan

(US)


13/21

MARKETING PLAN

Promotion

Known Sales Period Boon for promotion

Shop-N-Shop concept during the festival time

Pandit religious meet Mythology Quiz, KnowledgeExchange

Sponsoring Bhajan Nights

Promotion in Channels like Aastha and Sanskaar.

Advertisements in community directories Marwari,

Gujarati, Punjabi

Corporate Gifts

Cross promotion through Pooja Kits


14/21

EXPORT POTENTIAL

1.1 million Hindus in US

0.7 million Hindus in UK


15/21

Estimates of Financials

Sales Projections

Target Households 5,000,000.00

Reached Households 2,500,000.00

Year Conversion Packets S.P. to Distributor Amt(Rs)

1 10% 250,000.00 160 40,000,000.00

2 20% 500,000.00 160 80,000,000.003 30% 750,000.00 160 120,000,000.00

Total 240,000,000.00

Cost of the Packet

Cost of Pooja material 50

Accessories 15

Packaging 25

Transportation 10

Total 100

Over Heads

Office rent 250,000

Godown & Factory rent 200,000

Admin Cost 5,399,000

Advertisement Budget 3,200,000

Total 9,049,000

Administration cost

Telephone 60000Electricity 36000

Salesman Traveling 250000

Courier 24000

Misc 24000

Stationary 12000

Directors Traveling 40000

Total 446,000

Salary 4953000

Total 5,399,000


16/21

Preliminary Cost

ROC 10000

IT 10000

Other Registration Charges 30000

Legal Expenses 25000

Total 75000

IT investmentComputer 100000

Printer cum fax 20000

Total 120,000

Furniture

Table/Chair 15000

war drobe 30000

AC 15000

Total 60000

Machinery

Sachet Packing 500000

Shrink Wrap 60000Total 560,000

Salary Per month sal Total

CEO 1 40000 40000

Sales Head 1 30000 30000

Ops/Fin Head 1 30000 30000

Export Head 1 15000 15000

Zonal Manager 4 15000 60000

Salesperson 11 8000 88000

Supervisor 1 10000 10000

Computer Operator(s) 1 36000 36000

Worker 5 6000 30000

Labour(Machine) 4 3000 12000

Labour(Loading) 2 3000 6000

Women Worker 12 2000 24000

TOTAL 44 Monthly Total 381,000

Yearly Total 4,572,000

Bonus (1 Mth) 381,000

Total Salary 4,953,000


17/21

Depreciation Closing Balances

Op Bal Dep Rate-WDV Year1 Year2 Year3

Furniture 60000 13.91% 51654 44469 38283

IT 120000 40% 72000 43200 25920

Machinery 560000 40% 336000 201600 120960

740000 Clos Balance 459654 289269 185163

DepTotal 280346 170385 104106Projected Profit & Loss account

Year Year1 Year2 Year3

Income

Income From Operations 40,000,000 80,000,000 120,000,000

Expenditure

Materials consumed 25,000,000 50000000 75000000

Office rent 250,000 250,000 250,000

Godown/Factory rent 200,000 200,000 200,000

Administrative cost 5,399,000 5,902,600 6,40Advertisement budget (8, 7,6%) 3,200,000 5,600,000 7,200,000

Prelim Exp (write off in 3 yrs) 25,000 25,000 25,000

Cost of Sales 34,049,000 61,952,600 89,056,200

Operating Profit/PBDIT 5,951,000 18,047,400 30,943,800

Depreciation 280,346 170,385 104,106

PBIT 5,670,654 17,877,015 30,839,694

Interest 518,542 544,748 568,150

PBT 5,152,112 17,332,267 30,271,544

Provision For Taxation-35.7% 1,839,304 6,187,619 10,806,941

PAT 3,312,808 11,144,648 19,464,603


18/21

Projected Balance sheet

Assets Year1 Year2 Year3

Fixed Assets 740,000 740,000 740,000Less: Depreciation 280,346 450,731 554,837

Net Fixed Assets 459,654 289,269 185,163

Cash & Bank Balances 3,593,154 11,595,379 20,019,440

Inventory 5,208,333 7,812,500 18,229,167

Debtors 3,333,333 6,666,667 10,000,000

Investments 500,000 500,000 500,000Preliminary Expenses 50,000 25,000 -

TOTAL 13144475 26888815 48933770

Liabilities Year1 Year2 Year3

Capital 3,000,000 3,000,000 3,000,000

Add: Net Profit 3,312,808 11,144,648 19,464,603Reserves & Surpluses - 3,312,808 14,457,456

Creditors 2,083,333 4,166,667 6,250,000

Wkng Capital Loan 1,748,333 2,264,692 2,761,711

Term Loan 3,000,000 3,000,000 3,000,000

TOTAL 13144475 26888815 48933770


19/21

Key Ratios

Salary Costs/ Sales 12.38% 6.19% 4.13%

OPM 14.88% 22.56% 25.79%

NPM 8.28% 13.93% 16.22%

Liquidity Ratio 3.30 4.13 5.41

Quick Ratio 1.94 2.92 3.39

Cash Ratio 0.94 1.80 2.22

D/E 0.48 0.17 0.08

Inventory TO 7.68 10.24 6.58

ROA 25% 41% 40%

ROCE 36% 54% 49%

ROE 52% 64% 53%

Projected Cash Flow Statement

Year1 Year2 Y

Opening Cash Balance 3,593,154 11,595,379

Operating Activities

PAT 11144648 19464603

Increase in Inventory (2,604,167) (10,416,667)

Increase in Debtors (3,333,333) (3,333,333)

Depreciation 170,385 104,106

Increase in Creditors 2,083,333 2,083,333

Prepaid Prelim Exp 25,000 25,000

Financing Activities

Increase in Wkng Cap 516,358 497,019

Investing Activities

Increase in Investments - -

Closing Cash Balance 11,595,379 20,019,440


20/21

RISKS

Risks

Pundits perceiving Kits as a threat to their

profession.

Fluctuating Sales period with even 1 month of nosales during the month of Shravan .

Addressing risk

Making Pooja easier for Pundits.

Scope for additional income by selling Pooja Kits

Concentrated Sales Effort in the festival season and

auspicious days.


21/21

Parting Thought

THANK YOU

Documents

Shubh Labh (Roll No 35,38,59)