Jstar Healthcare Private Limited-20

7/30/2019 Jstar Healthcare Private Limited-20

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PROJECT REPORTPROJECT REPORTPROJECT REPORTPROJECT REPORT

JSTAR- HEALTHCARE

For the People

By the People

To the People


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Confidentiality Agreement

The undersigned reader acknowledges that the information provided by _______________ inthis business plan is confidential; therefore, reader agrees not to disclose it without the expresswritten permission of _______________.

It is acknowledged by reader that information to be furnished in this business plan is in allrespects confidential in nature, other than information which is in the public domain throughother means and that any disclosure or use of same by reader, may cause serious harm ordamage to _______________.

Upon request, this document is to be immediately returned to _______________.

___________________

Signature

___________________Name (typed or printed)

___________________Date

This is a business plan. It does not imply an offering of securities.


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Table of Contents

1.0 Executive Summary .................................................................................................................... 1

1.1 Objectives.................................................................................................................................... 1

1.2 Mission.......................................................................................................................................... 2

1.3 Keys to Success ........................................................................................................................ 22.0 Company Summary..................................................................................................................... 2

2.1 Company Ownership ............................................................................................................... 3

2.2 Start-up Summary ................................................................................................................... 3

3.0 Products ........................................................................................................................................... 44.0 Market Analysis Summary ........................................................................................................ 4

4.1 Market Segmentation ............................................................................................................. 5

4.2 Target Market Segment Strategy ...................................................................................... 5

5.0 Strategy and Implementation Summary..................................................... 55.1 Competitive Edge ..................................................................................................................... 5

5.2 Marketing Strategy .................................................................................................................. 6

5.3 Sales Strategy ........................................................................................................................... 66.0 Management Summary.............................................................................................................. 8

7.1 Start-up Funding .................................................................................................................... 10

7.3 Break-even Analysis.............................................................................................................. 11

7.5 Projected Cash Flow .............................................................................................................. 15

7.6 Projected Balance Sheet...................................................................................................... 167.7 Business Ratio ...18

7.8 Fund Flow Statement...19


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Jstar Healthcare Private Limited

1.0 Executive Summary

The Company is intending to manufacture Non Alcoholic Energy Drink under the Brand name of

MARS - 180 non alcoholic energy drink. as an instant energy booster health drink and painkilling Plasters used for fighting against pain and fractures. The said product will be procuredfrom overseas ( Malaysia & Germany ). This will be imported in bulk reprocessed packed in

India.

The Non Alcoholic Energy Drinks will be manufactured in INDIA an indigenous product will bepenetrated through Distributors & Channel partners all over south India.

The Plasters will be ethically promoted through Doctors ( General Practitioners, Orthopaedics

and Gynaecologists and will be distributed through pharmaceutical distributors all overKarnataka, Tamil Nadu, Andhra Pradesh and Kerala.

The product will be exclusively imported by the Company and the Company is getting intocontract with the exporter for supply exclusively for the Company and not to others in India.

1.1 Objectives

The process of importing Energy Drink is incurring huge hidden expenses with customs, PHO &th G t A th iti hi h i t t ili th fit d t ll t


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to ensure the reach of the product to mass segment and its future penetration of the productsat an economical prices tag.

JSTAR Healthcare private Limited will import these semi-raw products from overseas sourcing

from Asian and European markets.

1.2 Mission

JSTAR will indigenously manufacture Healthcare range of products such as Health drinks, Non Alcoholicenergy drinks and importing pain killing plasters, Pain Killer Oils, pain killing Ointment to ensure the reach ofthe product to mass segment and its future penetration of the products at an economical prices tag.

To become a premier eye care provider by extending quality healthcare services to the next generation.

1.3 Keys to Success

There are five generally accepted keys to success in the our industry:1. Wide range of products

2. Superior quality raw materials

3. Reliable delivery network

4. Competitive prices

5. Customer focused approach6. No burden of Customs to Customers.

2.0 Company Summary

In leading a team from front achieving 100 % sales and heading a profit orientation in

managing Sales team motivating creating innovate Ideas in achieving the sales target.

Possessing a high level management position as National Sales Manager lead a team of 12

Regional sales Manager 3 Zonal Managers and 40 Sales representative leading from front inachieving the organizational objectives.

Having good 10 years exposure in +\ Industry gained confidence and contacts of General

Practitioners, Orthopedicians, Pediatricians & Gynecologists.

In 2006 joined Atrimed Pharmaceuticals Pvt Limited as G M Sales & Marketing assigned for

Export Market exporting Ayurvedic products to Singapore, Malaysia, South African markets

setting up market segments to develop the sales overseas.

bl h d d b f


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2.1 Company Ownership

JstarHealthcare Private Limited is incorporated as a Private limited liability company, in thestate of Karnataka and its registered office is in Viveknagar, Bangalore. The Company

shareholders are founders , Mr. Jyotheshwar Sharavana and Mrs.Thulasi Rani Shravana

2.2 Start-up Summary

Amount (in Rs. lacs)

Sl No. Descriptions Energy Drink Pain Relief Plasters Total

1 Land 500 200 700

2 Office equipment 100 50 150

3 Plant & Machinery 125 25 150

4 Building 75 50 125

800 325 1,125

300 100 400

30 15 45

200 100 300

100 50 150

630 265 895

1,430 590 2,020Total A+B

Statutory Regis trations

Brand Ambasador

Marketing

Total B

COST OF THE PROJECT

Total A

Preliminary Expense

Advertisements


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3.0 Products

The company is into 2 verticals which are as follows :

1. Energy Drinks2. Ayurvedic Products

The products in the each verticles is as follows :

In Energy Drinks:

Health drinks

Non Alcoholic Energy Drinks

Diabetic tea

In Ayurvedic products:

Pain Relief plasters

Pain Relief oils

Pain Relief ointments

Derma care product

4.0 Market Analysis Summary

Mr. Jyotheshwar Sharavana standing in the position of Director Marketing has already under

gone talks with around 2,000 doctors and prepared a list of 43,000 doctors in Karnataka.

The overall discussions with his associates he has got some positive assurance of achieving thetargets as mentioned in the financial projections for the Company.

The product will be entering in the market through distribution channels available in the

Company.The product will be made available in all leading medical stores and will be sold against

prescription only. Hence the product will be promoted to all the doctors and will bring theawareness about the speciality and usefulness about the product.

Already with the contacts available with the promoter some doctors have been called for and

they are fully satisfied about the project and have promised their co-operation in the promotion


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The ED has maintained a extensive track record in with all dealers and suppliers ofPharmaceutical, Ayurvedic & Healthcare products.

ED has undergone a complete study on the customer behaviour pattern and their state of mind

for the Pharmaceutical, Ayurvedic & Healthcare products. He has done undergone study of

various types of diseases disturbing the man kind and has got extensive contacts of most ofdoctors, council members of medical institutes.

Looking at the growth in the Pharmaceutical industry products and with is contacts all over theglobe has come out with some products which are used as plasters for fractures. Evaluating the

proposal it has been found the product is unique in the market and very competitive than othertraditional methods being followed in India to fight against fractures.

4.1 Market Segmentation

The products are targeted to Mass public and market penetration is to be explored in all thesegments

4.2 Target Market Segment Strategy

The Energy Drinks has maintained a extensive track record in with all dealers and suppliers ofPharmaceutical, Ayurvedic & Healthcare products.

ED has undergone a complete study on the customer behaviour pattern and their state of mind

for the Pharmaceutical, Ayurvedic & Healthcare products. He has done undergone study ofvarious types of diseases disturbing the man kind and has got extensive contacts of most ofdoctors, council members of medical institutes.

Looking at the growth in the Pharmaceutical industry products and with is contacts all over theglobe has come out with some products which are used as plasters for fractures. Evaluating the

proposal it has been found the product is unique in the market and very competitive than othertraditional methods being followed in India to fight against fractures.

5.0 Strategy and Implementation Summary

5.1 Competitive Edge

The manufacturing & Packing unit is setting up at Dharmapuri Palacode Tamil Nadu and willbe marketed & distributed from this destination to all over India.


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5.2 Marketing Strategy

The ED has maintained a extensive track record in with all dealers and suppliers ofPharmaceutical, Ayurvedic & Healthcare products.

ED has undergone a complete study on the customer behaviour pattern and their state of mindfor the Pharmaceutical, Ayurvedic & Healthcare products. He has done undergone study of

various types of diseases disturbing the man kind and has got extensive contacts of most ofdoctors, council members of medical institutes.

Looking at the growth in the Pharmaceutical industry products and with is contacts all over theglobe has come out with some products which are used as plasters for fractures. Evaluating

the proposal it has been found the product is unique in the market and very competitive thanother traditional methods being followed in India to fight against fractures.

5.3 Sales Strategy

For energy drinks the company is going to increase the sales in stage wise basis which is in line

with the production capacity and number of shifts of manufacturing.

The sale price to the wholesale distributor will be at 65 inclusive of CST and CENVAT. Thebreakup of invoice of single unit is as follows :

Product Qty Rate Amount

EnergyDrink 1 56.72 56.72

Excise @ 12.36% 12.36% 7

Total 63.72


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Also the Gross margin breakup for Energy Drink is as follows :

Energy Drink Breakup of Gross Margin

Details Amount in Rs.

Raw Material 19.5

Labour 4.25

Power 3

Packing 4

CENVAT 7

Total Cost 37.75

Sale price to Distributer Excluding CST 63.73

Gross Margin per unit 25.98


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5.3.1 Sales Forecast

Revenue 2013-14 2014-15 2015-16 2016-17 2017-18

Energy drink 17,62,00,704 35,24,01,408 52,86,02,112 70,48,02,816 88,10,03,520

Plaster 21,60,00,000 28,08,00,000 36,50,40,000 47,45,52,000 61,69,17,600

Turnover 63,74,21,904 1,02,50,48,808 1,44,47,92,212 1,90,62,87,066 2,42,20,58,805

-

50,00,00,000

1,00,00,00,000

1,50,00,00,000

2,00,00,00,000

2,50,00,00,000

3,00,00,00,000

3,50,00,00,000

4,00,00,00,000

Turnover

Plaster

Energy drink

6.0 Management Summary

Profile - Jyotheshvar Sharavana

A B.com /PG in sales and marketing from Mumbai. Started sales carrier in the 1985 as salesrepresentative for a proprietary organization for a period of 2 years.

Worked with M/s. HLL as Merchandising representative for period of 3 years at Chennai HeadQuarters from 16 .01.1987 31.12.1989


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Profile : Mrs.Thulasi Rani Shravana

A B.A. Graduate started professional career with Ross Murarka Finance Limited - Mumbai asSecretary and Manager administration heading Bangalore Branch motivating / Co-ordinating

team of admin staff, sales representative, liasioning with Public limited companies andcorporate sectors. Served the organization for more than 10 years. 1987 1997

Worked with Manipal Heart Foundation heading as secretary in assisting OT department from1999 2006

Established as entrepreneur in forming a Company in the name of INDOTECH MICRONDEVICES. Importing Hospitality range of products Since 2008.


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7.0 Financial Plan

7.1 Start-up Funding

Amount (in Rs. lacs)

Sl No. Descriptions Energy Drink Pain Relief Plasters Total

1 Land 500 200 700

2 Office equipment 100 50 150

3 Plant & Machinery 125 25 150

4 Building 75 50 125

800 325 1,125

300 100 400

30 15 45

200 100 300

100 50 150

630 265 895

1,430 590 2,020Total A+B

Statutory Registrations

Brand Ambasador

Marketing

Total B

COST OF THE PROJECT

Total A

Preliminary Expense

Advertisements

The Preliminary Expenses are provided seperately as these will be amortised in 3 years as theirbenifits are assumed to be for over period of 3 years.

The Advertisment cost is arrived at cost incurred for making a TV commercial and having 10min prime airtime on popular TV channel in south India.


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4. The tax computed is as per the Income Tax rate of 30.90% applicable for AY 2013-14.The same rate is taken for arriving at tax liability for all the projected years.

5. The Direct Labour charges ar as per the current market wages aplicable which is around

Rs. 7,500 per month per labour. As there are more orders the company will hire staff to

utilise the maximum possible machine capacity.6. The inventory holding is assumed to be optimal at 30 days holding

7. The Term Loan to the company is at 16% p.a interest payable at every quarter andthere is a Board Resolution passed by the board member to the effect.

8. There is competiton and inflation expected in future year which will affect the grossmargin and net profit

9. The Receivable are taken at 2 months of Sales10.The payable are taken at 2 months of cost of goods sold.

7.3 Break-even Analysis

Description Amount in Rs. Lacs

Term Loan 2020

Cash Net Profit after Interest and Tax adding back Depreciation :

Year 1 443

Year 2 1086

Year 3 1742

Total 3271

Break-even for project is 2 years and 45 days


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7.4 Projected Profit and Loss

Profit and Loss statement of Energy Drink Segment:

Details 2013-14 2014-15 2015-16 2016-17 2017-18

Energy Drinks units 27,64,800 55,29,600 82,94,400 1,10,59,200 1,38,24,000

Sale 17,62,00,704 35,24,01,408 52,86,02,112 70,48,02,816 88,10,03,520

COS 10,43,71,200 20,87,42,400 31,31,13,600 41,74,84,800 52,18,56,000

Margin 7,18,29,504 14,36,59,008 21,54,88,512 28,73,18,016 35,91,47,520

Cost of Manufacturing

Telephone & Communicat ion 1,00,000 1,10,000 1,21,000 1,33,100 1,46,410

Manpower 24,80,000 26,04,000 27,34,200 28,70,910 30,14,456Consultancy & Regulatories 6,00,000 6,60,000 7,26,000 7,98,600 8,78,460

Transportation 35,24,014 70,48,028 1,05,72,042 1,40,96,056 1,76,20,070

Factory Maintenance 6,00,000 6,30,000 6,61,500 6,94,575 7,30,000

Operating Cost 73,04,014 1,10,52,028 1,48,14,742 1,85,93,241 2,23,89,396

Net Profit of division 6,45,25,490 13,26,06,980 20,06,73,770 26,87,24,775 33,67,58,124


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Profit and Loss statement of Pain Relief Plasters Segment:

Details 2013-14 2014-15 2015-16 2016-17 2017-18

Ayurvedic Products 90,00,000 1,17,00,000 1,52,10,000 1,97,73,000 2,57,04,900

Sale 21,60,00,000 28,08,00,000 36,50,40,000 47,45,52,000 61,69,17,600

COS 14,08,50,000 18,31,05,000 23,80,36,500 30,94,47,450 40,22,81,685

Margin 7,51,50,000 9,76,95,000 12,70,03,500 16,51,04,550 21,46,35,915

Cost of Manufacturing

Communication 50,000 55,000 60,500 66,550 73,205

Manpower 74,40,000 78,12,000 82,02,600 94,32,990 1,08,47,939

Consultancy & Regulatories 6,00,000 6,60,000 7,26,000 8,34,900 9,60,135

Transportation 43,20,000 56,16,000 73,00,800 83,95,920 96,55,308

Factory Maintenance 6,00,000 6,30,000 6,61,500 7,60,725 8,74,834

Operating Cost 1,30,10,000 1,47,73,000 1,69,51,400 1,94,91,085 2,24,11,420

Net Profit before Depreciation

and Amortisation 6,21,40,000 8,29,22,000 11,00,52,100 14,56,13,465 19,22,24,495

Consolidated Profit and Loss :

Details 2013-14 2014-15 2015-16 2016-17 2017-18

Energy Drink 6,45,25,490 13,26,06,980 20,06,73,770 26,87,24,775 33,67,58,124

Pain Refief Plasters 6,21,40,000 8,29,22,000 11,00,52,100 14,56,13,465 19,22,24,495

Total Profit 12,66,65,490 21,55,28,980 31,07,25,870 41,43,38,240 52,89,82,619

Depreciation 50,00,000 43,87,500 38,53,125 33,86,531 29,78,789

Statutor registration & Com 45,00,000 - - - -

Marketing 2,83,33,333 2,83,33,333 2,83,33,333 2,83,33,333 2,83,33,333

Interest 3,20,00,000 3,20,00,000 3,20,00,000

Total A 6,98,33,333 6,47,20,833 6,41,86,458 3,17,19,864 3,13,12,122

Net Profit before Tax 5,68,32,157 15,08,08,147 24,65,39,412 38,26,18,375 49,76,70,497


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7.5 Projected Cash Flow

Description 2013-14 2014-15 2015-16 2016-17 2017-18

Net Profit 3,92,71,021 10,42,08,430 17,03,58,734 26,43,89,297 34,38,90,313

Depreciation 50,00,000 43,87,500 38,53,125 33,86,531 29,78,789

Cash Profit 4,42,71,021 10,85,95,930 17,42,11,859 26,77,75,829 34,68,69,102

Changes in Working Capital

Advances & Prepayment (10,00,000) - - (20,00,00,000) -

Accounts Receivables (7,71,09,836) (2,84,23,732) (4,34,06,784) (4,76,18,784) (5,30,94,384)

Inventory (4,08,70,200) (2,44,37,700) (2,65,50,450) (2,92,97,025) (3,28,67,573)

Accounts payables and a 2,04,35,100 1,22,18,850 1,32,75,225 1,46,48,513 1,64,33,786

Creditors for Exp 16,92,835 4,59,251 4,95,093 5,26,515 5,59,707

Provisons 1,75,61,136 2,90,38,581 2,95,80,961 4,20,48,400 3,55,51,106

Net Change in Working C (7,92,90,965) (1,11,44,750) (2,66,05,955) (21,96,92,381) (3,34,17,357)

Cash Flow from Operatin (3,50,19,944) 9,74,51,180 14,76,05,904 4,80,83,448 31,34,51,745

Cash Flow from Investing Activites

Purchase of Fixed (16,91,66,666) 2,83,33,333 2,83,33,333 - -

Cash Flow from Finance Activites

Capital Introduced 1,00,00,000 - - - -

Term Loan 20,20,00,000 - (20,20,00,000) - -

Loan from Director - - - - -Dividend paid - - - - -

Repayment - Princi - - - - -

Term Deposits - - - - -

Net Cash Flow during the 78,13,390 12,57,84,513 (2,60,60,763) 4,80,83,448 31,34,51,745

Opening Cash & Bank Ba - 78,13,390 13,35,97,902 10,75,37,139 15,56,20,587

Cash & Bank at the end

of the year 78,13,390 13,35,97,902 10,75,37,139 15,56,20,587 46,90,72,332


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-

10,00,00,000

20,00,00,000

30,00,00,00040,00,00,000

50,00,00,000

60,00,00,000

70,00,00,000

Cash Flow from Operating Activites

Cash Flow from Operating

Activites

7.6 Projected Balance Sheet

Liabilities 2013-14 2014-15 2015-16 2016-17 2017-18

Share Capital

Paid up Capital 1,00,00,000 1,00,00,000 1,00,00,000 1,00,00,000 1,00,00,000

Reserves & Surplus 3,92,71,021 14,34,79,451 31,38,38,185 57,82,27,482 92,21,17,795

Term Loan 20,20,00,000 20,20,00,000 - - -

Current Liabilites

Tax Provision 1,75,61,136 4,65,99,717 7,61,80,678 11,82,29,078 15,37,80,184

Creditors for Exp 16,92,835 21,52,086 26,47,179 31,73,694 37,33,401

Sundry Creditors (Trad 2,04,35,100 3,26,53,950 4,59,29,175 6,05,77,688 7,70,11,474

Total 29,09,60,091 43,68,85,203 44,85,95,216 77,02,07,941 1,16,66,42,854Assets

Cash on hand 5,00,000 15,00,000 15,00,000 15,00,000 15,00,000

Cash at Bank 73,13,390 13,20,97,902 10,60,37,139 15,41,20,587 46,75,72,332

Fixed Assets

Tangible 10,75,00,000 10,31,12,500 9,92,59,375 9,58,72,844 9,28,94,055

Non- tangable 5,66,66,666 2,83,33,333 - - -


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7.7 Business Ratio2013-14 2014-15 2015-16 2016-17

Projection Projection Projection Projection

1 Net Sales 39,22,00,704 63,32,01,408 89,36,42,112 1,17,93,54,816

2 P B I L D T 9,38,32,157 18,71,95,647 28,23,92,537 38,60,04,907

3 P B T 5,68,32,157 15,08,08,147 24,65,39,412 38,26,18,375

4 P A T 3,92,71,021 10,42,08,430 17,03,58,734 26,43,89,2975 Net Cash Accruals 4,42,71,021 10,85,95,930 17,42,11,859 26,77,75,829

6 P B I L D T/ Net Sales (%) 23.92% 29.56% 31.60% 32.73%

7 PAT/ Net Sales (%) 10.01% 16.46% 19.06% 22.42%

8 Dividend/PAT (%)

9 Gross Block 11,25,00,000 10,75,00,000 10,31,12,500 9,92,59,375

10 Net Block 10,75,00,000 10,31,12,500 9,92,59,375 9,58,72,844

11 Paid up Capital 1,00,00,000 1,00,00,000 1,00,00,000 1,00,00,000

12 Tangible Networth (TNW) (73,95,645) 12,51,46,118 24,15,670 24,82,283

13 Group Invetsments - - - -

14 Adjusted T N W (73,95,645) 12,51,46,118 24,15,670 24,82,283

15 L T D / T N W (27.31) 1.61 - -

16 D F S / T N W - - - -

17 T O L / T N W -32.68 2.26 51.64 73.31

18 Current Assets 12,67,93,425 30,54,39,370 34,93,35,841 67,43,35,098

19 Current Liabilities 3,96,89,071 8,14,05,753 12,47,57,032 18,19,80,459

20 Net Working Capital 8,71,04,355 22,40,33,618 22,45,78,810 49,23,54,638

21 Current Ratio 3.19 3.75 2.80 3.71

Other Indicators

22 R O C E (%) 45.65% 55.88% 86.01% 65.05%

23 Interest Coverage Ratio 2.93 5.85 8.82 #DIV/0!

24 5.85 8.82 #DIV/0!DSCR

For year ended / ending

September 30,

S. No


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7.8 Fund Flow Statement

Amounts in Rs.

Next Year

Projections Projections Projections Projections

Year 2014-15 2015-16 2016-17 2017-18

1. SOURCES

a. Net Profit 10,42,08,430 17,03,58,734 26,43,89,297 34,38,90,313b. Depreciation (6,12,500) (5,34,375) (4,66,594) (4,07,742)

c. Increase in Capital - - - -

d. Increase in Term Liabilities

(including Public Deposits) - - -

e. Decrease in

i. Fixed Assets 50,00,000 43,87,500 38,53,125 33,86,531

ii. Other non-current Assets 2,83,33,333 2,83,33,333

f. Others - 0 -

g. TOTAL 13,69,29,263 20,25,45,192 26,77,75,829 34,68,69,102

2. USES

a. Net loss

b. Decrease in Term Liabilities

(including Public Deposits) 20,20,00,000

c. Increase in

i. Fixed Assets

ii. Other non-current Assets - -d. Dividend Payments - - - -

e. Others 0

f. TOTAL 0 20,20,00,000 - -

3. Long Term Surplus (+) / Deficit (-) [1-2] 13,69,29,263 5,45,192 26,77,75,829 34,68,69,102

4. Increase/decrease in current assets

* (as per details given below) 17,86,45,945 4,38,96,471 32,49,99,257 39,94,13,702

5. Increase/decrease in current liabilities

other than bank borrowings 4,17,16,682 4,33,51,279 5,72,23,428 5,25,44,600

6. Increase/decrease in working capital gap 13,69,29,263 5,45,192 26,77,75,829 34,68,69,102

7. Net Surplus / Deficit (-) [3-6] - (0) - 0

8. Increase/decrease in bank borrowings - - - -

9. Increase/decrease in NET SALES 24,10,00,704 26,04,40,704 28,57,12,704 31,85,66,304

Appendix


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