kunal

Table of Contents

Sr.No.Sub-No.

Particulars Page No.

1.0 Project at a Glance 4

1.1 Executive Summary 5

2.0 Introduction 6

3.0 Objectives 7

4.0 Review of Literature

4.1Present and projected market size, for each segment

8-15

4.2 Future Market 16-19

5.0 Methodology 20

6.0 Primary Research 21-28

7.0 Secondary Research

7.1 Segmentation of e-tailing 29-32

7.2 Target group 33-34

7.3 Details of Existing Players 35-55

7.4 Summary of all the Existing Players 56-61

7.5 Government Policies 62

7.6 Important Tie-ups 63-66

7.7Alternate technologies / processes available, their advantages / disadvantages and cost / benefit analysis

67

7.8Technology trends - likely scenario in next 5-10 years

67

7.9Technical challenges if any and steps suggested to manage these challenges

67-68

8.0 Marketing Mix

8.1 Market Segmentation 69

8.2 4 Ps 70

8.3 Marketing channel 71-76

8.4 Promotion 77-82

9.0 Manufacturing / Service delivery: 83-84

10.0 Product order cycle flowchart 85-86 11.0 Various Departments 87-89 12.0 Finance:

12.1 Cost of project 90 12.2 Means of finance 90

12.3Working capital calculations, arrangements from banks or other sources

90

12.4 Cost of production & profitability statement 90 12.5 BEP Calculations 90

13.0 Risks involved:

Note on significant risks in the project like (a)Technology (b) Market dynamics (c) Financial tie up or currency fluctuations (d) Raw material linkages or price volatility (e) Retention of exceptionally skilled manpower (f) government policies etc.

91-92

14.0 Implementation:14.1 Evolution of an E-Commerce Startup 93-9414.2 Critical areas/hurdles in implementation 94

15.0 Key success factors & challenges:15.1 SWOT analysis 9515.2 Key success factors 9515.3 Key challenges and proposed action plan 9615.4 Key Findings 9615.5 Conclusion 97

16.0 Data sources / references: 97-9817.0 Annexures: 99

1 Demand & Supply Projections 100

2Details of key Competing Products/Services

101

3 Detailed cost of project – Land, site 102

ii

development, Electrical installations, Infrastructure, Utilities, Margin for working capital.)

4 Furniture & Fixture and Electrical Installations 103

5 Preliminary & Pre-Operative Expenses 1046 Sales Projections 1057 Means of Finance 106

8 Important Raw Material and other Input 107

9 & 10 Packaging Materials and Utilities 108

11 Manpower required / Employment Generated 109

12 Overheads 11013 Profitability 11114 Working capital Requirements 11215 Cash Flow Projections 113

16 Projected balance Sheet 114

17 Break Even Point 115

18 List of Ecommerce players by category 116-117

19DSP- Comparison Sheet

118

20 Comparison Sheet Based On Cash on Delivery 11921 Comparison Sheet ( return charges etc) 119

22Comparison Sheet (Turnaround Time)

120

iii

17.0 Annexure

i

Demand and Supply Projections

ii

(Annexure 1)

Sr.No. Particulars UOM Year: 2011

Year: 2012

Year: 2013

Year: 2014

Year: 2015

Year: 2016

A Demand

sub-total Crore 550 1007 1841 3370 6170 11270

B Existing SupplySupplier: Myntra Crore 140 196 274 384 538 753Supplier: Fashion and you 130 195 283 410 594 862Supplier: Inkfruit 23 32 39 46 56 67Supplier: Yepme 34 51 69 93 125 169Supplier: others 223 446 892 1784 3568 7136sub-total Crore 550 920 1557 2717 4881 8987

C Demand - Supply = Gap Crore 0 86.8 284.36 652.537 1288.573 2282.881Less : Supply from your proposed unitNet Gap (potential for expansion) Crore 0 86.8 284.36 652.537 1288.573 2282.881

b) Socio economic criteria:

Segment: Apparel and Accessories Crore550 1007 1841 3370 6170 11270

iii

Details of key Competing Products/Services

As on Value1 Fashionandyou Apparels, Accessories, Perfumes, Home Décor Gurgaon 2011 130 22%2 Myntra Apparels, Accessories, Footwear Banglore 2011 140 24%3 Inkfruit Apparels and Accessories (M& F) Mumbai 2011 30 7%4 Yepme Apparels and Accessories (M) Gurgaon 2011 125 20%5 Zovi Apparels and Accessories (M & F) Banglore 2011 Not Available

Turnover Sr.No. Brand Producer/Provider - Name & Address Area of operation Market share

iv

(Annexure 2)

Capital Cost of the Project

Sr.No. ParticularsProject Cost (` in lacs)

Additions during subsequent years

Year-1 Year-2 Year-3 Year-4 Year-5

1 Land & site development: 0.002 Buildings 0.003 Plan & Machinery / equipments 0.001 Infrastructure 0.002 Furniture 0.99 2.42 1.8 2.78 33 Electrical Installations 1.66 3.5 3 4.5 54 Other Assets 0.85 2.19 3.1 4.5 75 Preliminary & Preoperative

Expenses2.05

6 Margin for working capital (@ 30%)

6.52

TOTAL 12.07 8.11 7.90 11.78 15.00

Note

There is no requirement for land and site development and for building infrastructure as the head office and warehouse would be taken on rent.

Plant and machinery is also not required at least for five years. As the researcher have made a model where you will get all our products done on the job-work basis.

Furniture & Fixture and Electrical Installations

v

(Annexure 3)

(Annexure 4)

Sr.No.

Item detailsQuantity required

Value (`)/UOMTotal value

for full quantity (Rs. In lacs)

Basic / FOB price

Total (Rs. In lacs)

(A) Furniture & Fixtures1 Chairs 8 2,000 0.02 0.162 Tables 3 2,500 0.03 0.083 Desk 2 15,000 0.15 0.304 Racks to keep stock 4 7,500 0.08 0.305 Corrugated boxes 700 22 0.00 0.156 0.00 0.007 0.00 0.00

sub-total 0.99(B) Electrical Installations

1 Air conditioner 1 22,000 0.22 0.222 Computers 7 15,000 0.15 1.053 Printer 1 9,000 0.09 0.094 Other elecricals 1 30,000 0.30 0.305 0.00 0.006 0.00 0.007 0.00 0.00

sub-total 1.66(C) Other Assets

1 ERP software 1 25,000 0.25 0.252 Bar code scanner 1 3,500 0.04 0.043 Bar code printer 1 6,500 0.07 0.074 Deposit to open a gateway account (N.R) 1 40,000 0.40 0.405 Deposit to open a courier gateway(N.R) 2 5,000 0.05 0.106 0.00 0.007 0.00 0.008 0.00 0.009 0.00 0.00

10 0.00 0.00sub-total 0.85

TOTAL 3.50

Preliminary & Pre-Operative Expenses

vi

(Annexure 5)

PJ

Sr.No. Particulars Basis of calculations or assumptions

Amount ( ̀in lacs)

(A) Administrative Expenses1 Salary 1 Designers (1 month salary) 20,000.002 Travelling & conveyance For more research and meeting

people30,000.00

3 Legal expenses incl. company formation 25,000.00

(B) Sales & Marketing1 Pre-launch publicity / advt PR and others 100,000.002 Promotional material printing/publishing

(C) Financial1 Interest on term loans2 Interest on other borrowings

(D) Trial production 1 Material Checking fabric, getting products

of competitors25,000.00

2 Consumables 5,000.003 Utilities4 Others

Total 2.05

Preliminary & Pre-operative expenses (incurred before commencement of

commercial production)

vii

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Year 1 Year 2 Year 3 Year 4 Year 5 Year 1 Year 2 Year 3 Year 4 Year 5

Capacity Utilization / Growth projection % -->>

0% 0% 0% 0% 0%

1 Graphic tees (M & F) 350 65.71% 5,500 10,000 18,000 25,000 35,000 19.25 35.00 63.00 87.50 122.50

2 Baisc tees with side pocket (M&F) 249 61.85% 3,000 5,000 9,000 13,500 15,000 7.47 12.45 22.41 33.62 37.35

3 Premium graphic tees (M & F) 399 64.91% 3,000 5,500 13,000 18,000 25,000 11.97 21.95 51.87 71.82 99.75

4 Plain logo collared tees (M &F) 449 55.46% 3,000 6,000 10,000 16,000 22,000 13.47 26.94 44.90 71.84 98.78

5 Striped collar tees (M) 499 53.91% 4,500 9,000 14,000 20,000 27,000 22.46 44.91 69.86 99.80 134.73

6 Graphic colloar tees (M &F) 499 54.91% 1,500 3,000 5,500 8,500 13,000 7.49 14.97 27.45 42.42 64.87

7 Boxer shorts (M & F) 299 69.90% 3,500 6,000 9,000 12,500 15,000 10.47 17.94 26.91 37.38 44.85

8 Cotton Pyjamas (M&F) 499 71.94% 4,000 8,000 13,000 18,000 25,000 19.96 39.92 64.87 89.82 124.75

9 Funky socks ( Pair of three) 249 71.89% 0 3,000 5,500 10,000 14,500 0.00 7.47 13.70 24.90 36.11

10 Plain Graphic sleevelees (M) 399 72.43% 0 2,500 4,000 7,000 10,000 0.00 9.98 15.96 27.93 39.90

11 Sleeveless with hoodie (M) 499 70.94% 0 6,000 13,000 21,000 30,000 0.00 29.94 64.87 104.79 149.70

12 Flipflops (M & F) 399 69.92% 0 6,000 14,000 22,000 32,000 0.00 23.94 55.86 87.78 127.68

13 Full sleeves graphic tees (M) 599 67.45% 0 4,000 8,500 13,000 20,000 0.00 23.96 50.92 77.87 119.80

14 Checks Shorts 549 54.46% 0 0 5,000 10,000 15,500 0.00 0.00 27.45 54.90 85.10

15 Laptop skin 299 63.21% 0 0 7,500 16,000 25,000 0.00 0.00 22.43 47.84 74.75

16 Scarves for (M & F) 299 74.92% 0 0 5,000 8,000 12,000 0.00 0.00 14.95 23.92 35.88

17 Chex/ Striped shirts 799 56.20% 0 0 7,000 11,000 18,000 0.00 0.00 55.93 87.89 143.82

18 Cotton pullovers (M) 799 59.95% 0 0 4,000 5,500 8,000 0.00 0.00 31.96 43.95 63.92

20 Hoodies (M& F) 899 52.17% 0 0 7,500 11,000 13,000 0.00 0.00 67.43 98.89 116.87

21 Zippers (M &F) 899 58.84% 0 0 0 8,000 10,000 0.00 0.00 0.00 71.92 89.90

22 Graphic shirts 799 59.95% 0 0 0 7,000 10,000 0.00 0.00 0.00 55.93 79.90

23 I-phone covers 249 65.86% 0 0 0 5,000 12,000 0.00 0.00 0.00 12.45 29.88

24 Belts ( Casuals for M and F) 399 72.43% 0 0 0 8,000 65,000 0.00 0.00 0.00 31.92 259.35

25 Wallets (M & F) 399 64.91% 0 0 0 5,000 9,000 0.00 0.00 0.00 19.95 35.91

26 laces 199 72.36% 0 0 0 4,000 7,500 0.00 0.00 0.00 7.96 14.93

27 Off shoulder tees ( F) 499 65.93% 0 0 0 4,500 6,000 0.00 0.00 0.00 22.46 29.94

28 Others ( M,F and accessories) (High) 1199 56.63% 0 75,000 0.00 899.25

Total 28,000 74,000 172,500 307,500 569,500 112.53 309.36 792.71 1437.43 3160.16

Quantity sold Sales Revenue ( ̀in lacs)

Sales Projections / Capacity Utilization during first 5 yearsMargin % on Sa le Price in

case of Reta i l ing bus iness

Sr.No. Product name / Service Description Unit Rate ( )̀

viii

(Annexure 6)

Means of Finance

KJ Means of FinanceSr.No. Source Amount (`

in lacs)% of total

1 Own / Family savings 12.07 100%

2 Term Loans from Banks 0%

3 Borrowings from friends / relatives 0%

4 Trade deposits / Advances 0%

5 Other sources 0%

6 Subsidy 0%

Total 12.07 100%

ix

(Annexure 7)

Important Raw Material and other Inputs

KJ

Sr.No. Particulars UOM Rate in ̀

Year-1 Year-2 Year-3 Year-4 Year-5 Year-1 Year-2 Year-3 Year-4 Year-51 Raw Materials

Graphic tees (M & F) 1 120 5,500 10,000 18,000 25,000 35,000 6.60 12.00 21.60 30.00 42.00Baisc tees with side pocket (M&F) 1 95 3,000 5,000 9,000 13,500 15,000 2.85 4.75 8.55 12.83 14.25Premium graphic tees (M & F) 1 140 3,000 5,500 13,000 18,000 25,000 4.20 7.70 18.20 25.20 35.00Plain logo collared tees (M &F) 1 200 3,000 6,000 10,000 16,000 22,000 6.00 12.00 20.00 32.00 44.00Striped collar tees (M) 1 230 4,500 9,000 14,000 20,000 27,000 10.35 20.70 32.20 46.00 62.10Graphic colloar tees (M &F) 1 225 1,500 3,000 5,500 8,500 13,000 3.38 6.75 12.38 19.13 29.25Boxer shorts (M & F) 1 90 3,500 6,000 9,000 12,500 15,000 3.15 5.40 8.10 11.25 13.50Cotton Pyjamas (M&F) 1 140 4,000 8,000 13,000 18,000 25,000 5.60 11.20 18.20 25.20 35.00Funky socks ( Pair of three) 1 70 0 3,000 5,500 10,000 14,500 0.00 2.10 3.85 7.00 10.15Plain Graphic sleevelees (M) 1 110 0 2,500 4,000 7,000 10,000 0.00 2.75 4.40 7.70 11.00Sleeveless with hoodie (M) 1 145 0 6,000 13,000 21,000 30,000 0.00 8.70 18.85 30.45 43.50Flipflops (M & F) 1 120 0 6,000 14,000 22,000 32,000 0.00 7.20 16.80 26.40 38.40Full sleeves graphic tees (M) 1 195 0 4,000 8,500 13,000 20,000 0.00 7.80 16.58 25.35 39.00Checks Shorts 1 250 0 0 5,000 10,000 15,500 0.00 0.00 12.50 25.00 38.75Laptop skin 1 110 0 0 7,500 16,000 25,000 0.00 0.00 8.25 17.60 27.50Scarves for (M & F) 1 75 0 0 5,000 8,000 12,000 0.00 0.00 3.75 6.00 9.00Chex/ Striped shirts 1 350 0 0 7,000 11,000 18,000 0.00 0.00 24.50 38.50 63.00Cotton pullovers (M) 1 320 0 0 4,000 5,500 8,000 0.00 0.00 12.80 17.60 25.60Hoodies (M& F) 1 430 0 0 7,500 11,000 13,000 0.00 0.00 32.25 47.30 55.90Zippers (M &F) 1 370 0 0 0 8,000 10,000 0.00 0.00 0.00 29.60 37.00Graphic shirts 1 320 0 0 0 7,000 10,000 0.00 0.00 0.00 22.40 32.00I-phone covers 1 85 0 0 0 5,000 12,000 0.00 0.00 0.00 4.25 10.20Belts ( Casuals for M and F) 1 110 0 0 0 8,000 65,000 0.00 0.00 0.00 8.80 71.50Wallets (M & F) 1 140 0 0 0 5,000 9,000 0.00 0.00 0.00 7.00 12.60 laces 1 55 0 0 0 4,000 7,500 0.00 0.00 0.00 2.20 4.13Off shoulder tees ( F) 1 170 0 0 0 4,500 6,000 0.00 0.00 0.00 7.65 10.20Others ( M,F and accessories) (High) 1 520 0 0 0 0 75,000 0.00 0.00 0.00 0.00 390.00

0.00 0.00 0.00 0.00 0.00Sub-total 28,000 74,000 172,500 307,500 569,500 42.13 109.05 293.75 532.40 1,204.53

2 ConsumablesCourier charges (COD for below 500 gms)

1100 14000 37000 86250 153750 284750

14.00 31.45 64.69 107.63 179.39

Courier charges (Non-COD for below 500 gms)

160 14000 37000 86250 153750 284750

8.40 17.76 33.64 50.74 93.97

Courier charges (COD for above 500 gms)

1 155 75,000 0.00 0.00 0.00 0.00 0.00

Courier charges (Non-COD for above 500 gms)

1 120 75,000 0.00 0.00 0.00 0.00 90.00

Payment Gateways 1 14,000 37,000 86,250 153,750 284,750 1.74 3.87 7.92 10.67 20.700.00 0.00 0.00 0.00 0.000.00 0.00 0.00 0.00 0.00

Sub-total 24.14 53.08 106.25 169.03 384.06TOTAL 66.27 162.13 400.00 701.43 1,588.59

Annual requirements (Quantity) Value ( ̀in lacs)

Important Raw Material and other Inputs

x

(Annexure 8)

Packing Material

Sr.No. Item name UOM Rate in

Year-1 Year-2 Year-3 Year-4 Year-5 Year-1 Year-2 Year-3 Year-4 Year-5

1Secondary packaging for products below 500 grams) 1 12 28000 74000 172500 307,500 494500 3.36 8.88 20.70 36.90 59.34

2Secondary packaging for products below 500 grams) 1 22 75,000 0.00 0.00 0.00 0.00 16.50Total 3.36 8.88 20.70 36.90 75.84

Annual requirements (Quantity) Value ( ̀in lacs)

Utilities

Sr.No. Particulars UOMRate in `


1 Electricity Kwh 7.00 3,500 10,000 17,500 28,000 50,000 0.25 0.70 1.23 1.96 3.50

2 Others 0.00 0.00 0.00 0.00 0.00

TOTAL 0.25 0.70 1.23 1.96 3.50

Annual Requirement (Quantity) Cost / year in ̀Lacs

xi

(Annexure 9)

(Annexure 10)

Manpower required / Employment Generated

AABABAABABBD

Sr.No. Category PositionMonthly

salary/employee ( )̀


(A)1 Marketing function Owner salary 1 1 1 1 1 0.00 0.00 2.40 4.80 7.20

Owner salary (Kunal Jain 1 1 1 1 1 0.00 0.00 2.40 4.80 7.20

Sourcing Manager 32,000 1 1 1 1 0.00 0.96 3.84 3.84 3.84

Assisstants for managing sourcing

14,000 2 2 3 4 0.00 2.52 3.36 5.04 6.72

Accessories head 35,000 1 1 1 0.00 0.00 2.10 4.20 4.20

Business development (Packaging & Accessories)

16,000 1 1 1 0.00 0.00 1.92 1.92 1.92

Designer Head 60,000 1 1 1 0.00 0.00 2.40 7.20 7.20

Assisstant designer head 32,000 1 1 1 1 0.00 3.84 3.84 3.84 3.84

Support saff for designer 20,000 1 2 3 4 5 2.40 3.60 7.20 9.60 12.00

Advertiser planner 35,000 1 1 1 2 1.40 4.20 4.20 8.40

Marketing head 32,000 1 1 1 0.00 0.00 3.84 3.84 3.84

Social media team 13,000 2 2 3 3 0.00 3.12 3.12 4.68 4.68

Warehouse manager 20,000 1 1 1 0.00 0.00 1.80 2.40 2.40

Logistics manager 35,000 1 1 1 0.00 0.00 1.05 4.20 4.20

sub-total of marketing function

2.40 15.44 43.47 64.56 77.64

2 Administrative Function

Customer Delight manager

27,000 1 1 1 0.00 0.00 1.62 3.24 3.24

Customer Delight support staff

12,500 1 2 3 5 7 0.75 3.00 4.50 7.50 10.50

Finance Head 45,000 1 1 1 1.35 5.40 5.40Accounting Head 30,000 1 1 1 1 0.00 1.80 3.60 3.60 3.60

Accounting staff 9,000 1 2 2 4 5 0.54 2.16 2.16 4.32 5.40

HR 28,000 1 1 0.00 0.00 0.00 3.36 3.36

3 Other functions Technology head 33,000 1 1 1 1 0.00 1.65 3.96 3.96 3.96

Chief technology officer 60,000 1 1 1 5.40 7.20 7.20

IT support staff ( fronthand and backhand)

20,000 2 5 7 9 12 3.60 4.00 16.80 21.60 28.80

Photographer and editing 20,000 0 1 1 1 2 0.00 2.40 2.40 2.40 4.80

Operations ( day to day order processing)

8,000 1 1 2 3 4 0.48 0.96 1.92 2.88 3.84

Packaging team 5,000 1 1 3 4 6 0.30 0.60 1.80 2.40 3.60

Helpers 4,000 1 1 2 3 0.00 0.48 0.48 0.96 1.44

sub-total of Admin & other functions

5.67 17.05 45.99 68.82 85.14

8.07 32.49 89.46 133.38 162.78

(B)

4 Production function

Operators / workers 0.00 0.00 0.00 0.00 0.00

9 26 42 55 69 8.07 32.49 89.46 133.38 162.78

Annual Wage Bill ( ̀in lacs)

Manpower required / Employment Generated

Sub-total of fixed cost manpower

TOTAL SALARY/WAGES COST

Number of employees

Fixed cost manpower (irrespective of level

Variable cost manpower (varies with level of activity)

xii

(Annexure 11)

Overheads

AABABAABABBD

Sr.No. Particulars

During Yr-1

During Yr-2

During Yr-3

During Yr-4 During Yr-5


(A) Sales & Marketing Overheads1 Support staff 2.40 15.44 43.47 64.56 77.642 Advertisement & Publicity 100,000 220,000 380,000 550,000 1,300,000 12.00 26.40 45.60 66.00 156.003 Travelling by product

development team2,500 6,500 10,000 15,000 20,000 0.30 0.78 1.20 1.80 2.40

4 Recruitment of employees 500 1,000 1,500 1,500 0.00 0.02 0.12 0.18 0.185 0.00 0.00 0.00 0.00 0.006 0.00 0.00 0.00 0.00 0.00

Sub-total of Marketing overheads

14.70 42.64 90.39 132.54 236.22

(B) Administrative Overheads1 Salary of Administrative & misc.

personnel5.67 17.05 45.99 68.82 85.14

2 Head offi ce rent 20,000 20,000 45,000 45,000 75,000 2.40 2.40 5.40 5.40 9.00Warehouse rent 30,000 30,000 80,000 80,000 0.00 3.60 3.60 9.60 9.60

3 Offi ce maintenance 500 500 3,000 3,000 7,000 0.06 0.06 0.36 0.36 0.844 Warehouse maintenance 1,500 1,500 7,500 7,500 0.00 0.18 0.18 0.90 0.905 Telecommunications 2,500 5,000 8,000 15,000 25,000 0.30 0.60 0.96 1.80 3.006 Domain name registration 0.00 0.04 0.04 0.04 0.047 Security seal authentication 1,120 870 870 870 870 0.13 0.10 0.10 0.10 0.108 Gateway maintenance 300 700 1,000 1,400 1,400 0.04 0.08 0.12 0.17 0.179 ERP software maintenance 500 500 500 500 0.00 0.06 0.06 0.06 0.06

10 Internet charges 2,500 7,000 15,000 25,000 25,000 0.30 0.84 1.80 3.00 3.0011 Server charges 3,000 7,500 15,000 15,000 15,000 0.36 0.90 1.80 1.80 1.8012 Other overheads 1,000 3,000 5,500 10,000 15,000 0.12 0.36 0.66 1.20 1.8013 Employees entertainment 1,500 3,500 5,000 7,000 10,000 0.18 0.42 0.60 0.84 1.20

Sub-total of Administrative overheads

9.56 26.70 61.67 94.09 116.65

TOTAL OVERHEADS 24.26 69.33 152.06 226.63 352.87

Monthly expenditure (Rs.) Annual expenditure ( ̀in lacs)Overheads

xiii

(Annexure 12)

AAAAAAAAAAA

Sr.No. ParticularsYear-1 Year-2 Year-3 Year-4 Year-5

A) Gross Revenue (Sales) 112.53 309.36 792.71 1,437.43 3,160.16Less: Variable Expenses

1 Raw Materials 42.13 109.05 293.75 532.40 1,204.532 Consumables 24.14 53.08 106.25 169.03 384.063 Utilities 0.25 0.70 1.23 1.96 3.504 Packing Materials 3.36 8.88 20.70 36.90 75.845 Direct Labour cost 0.00 0.00 0.00 0.00 0.00

6

Promotional discounts from second year on non moving stock 12.37 31.71 57.50 126.41

7

Promotional discounts in terms of offers, credit points etc. 2.81 7.73 19.82 35.94 79.00Commission to affi liate marketing 0.34 0.93 2.38 4.31 9.48VAT @ 5% on sale 5.36 14.73 37.75 68.45 150.48

8Excise tax on branded garments @ 4.5% 7.17 28.92 57.93 135.46

Total Variable cost 78.38 214.65 542.49 964.42 2,168.76

B)

Contribution (Amount)

34.15 94.71 250.21 473.00 991.40

Contribution (%) 30% 31% 32% 33% 31%

Less: Fixed OverheadsSales & Marketing Overheads 14.70 42.64 90.39 132.54 236.22Administrative/other Overheads 9.56 26.70 61.67 94.09 116.65Preliminary Expenses Written off 0.21 0.21 0.21 0.21 0.21Total overheads 24.47 69.54 152.27 226.84 353.08

C) Profit before Interest, Depreciation & Tax (PBIDT/EBIDT) 9.68 25.17 97.94 246.17 638.32Interest on Term Loans @ 12.00% 0.00 0.00 0.68 1.21 1.86Interest on other borrowings @ 12.00% 0.00 0.00 0.00 0.00 0.00Interest on working capital borrowings @ 14.00% 2.11 8.33 12.83 8.62 0.80Total interest cost 2.11 8.33 13.51 9.83 2.66Depreciation 0.00 0.00 0.00 0.00 0.00

D) Profit before Tax (PBT) 7.57 16.84 84.43 236.34 635.66Income tax @ 34.00% 2.57 5.73 28.71 80.35 216.12Profit after tax (PAT) 5.00 11.12 55.72 155.98 419.54

Proposed Dividend rate (%)Proposed Dividend Amount 0.00 0.00 0.00 0.00 0.00Proposed Dividend Dist. Tax @ 10% 0.00 0.00 0.00 0.00 0.00Total outgo on Dividend

0.00 0.00 0.00 0.00 0.00Retained earnings 5.00 11.12 55.72 155.98 419.54

Final Amount ( ̀in lacs)Profitability

xiv

(Annexure 13)

Working Capital Requirements

Sr.No. ParticularsYear-1 Year-2 Year-3 Year-4 Year-5

UOM Value

1 Raw Materials Days 25 2.89 7.47 20.12 36.47 82.50

2 Packing Materials Days 30 0.28 0.73 1.70 3.03 6.23

3 Work in Process: Days 9 1.63 4.00 9.86 17.30 39.17

4 Finished goods Days 60 18.50 50.85 130.31 236.29 519.48

5 Receivables Days 0 0.00 0.00 0.00 0.00 0.00

6 Utilities Month 1 0.02 0.06 0.10 0.16 0.29

7 Overheads Month 1 2.04 5.79 12.69 18.90 29.42

sub-total 25.35 68.90 174.78 312.15 677.10

Less: Creditors Days 20 3.83 9.41 23.12 40.56 91.39

Net working capital required 21.52 59.49 151.66 271.59 585.70

Norm Amount ( ̀in lacs)

xv

(Annexure 14)

Cash Flow Projections (` in lakhs)

KJ

Sr.No. Particulars Project period


Inflows1 Cash Profit before interest, depreciation

& tax 9.89 25.38 98.15 246.37 638.53

2 Subsidy / Cash grants 0.003 Incentives / benefits not accounted for4 Increase in borrowings:

a) term loans 0.00 0.00 5.68 5.53 8.25 10.50b) working capital 15.07 44.43 92.17 119.92 314.12c) other borrowings 0.00

5 Increase in sundry creditors 0.00 3.83 5.58 13.71 17.45 50.836 Refund of deposits 0.60 0.907 Other income/cash accruals8 Promoter's contributions 12.07 0.00 2.43 2.37 3.53 4.50

sub-total of Inflows 12.07 28.78 83.50 211.93 396.12 1,019.37

Outflows1 Payment of interest:

a) on term loans 0.00 0.00 0.68 1.21 1.86b) on working capital 2.11 8.33 12.83 8.62 0.80c) on other borrowings 0.00 0.00 0.00 0.00 0.00

2 Payment of income tax 2.57 5.73 28.71 80.35 216.123 Payment of dividend 0.00 0.00 0.00 0.00 0.004 Payment of dividend distribution tax 0.00 0.00 0.00 0.00 0.005 Repayment of /reduction in borrowings

a) term loans 0.00 0.00 1.14 2.80 17.51b) working capital 60.00 150.00 370.00c) other borrowings 0.00 0.00 0.00 0.00 0.00

6 Increase in Inventory 23.29 39.76 98.94 131.09 354.30Increase in Sundry Debtors 0.00 0.00 0.00 0.00 0.00

7 Investment in new fixed assets / projects 5.55 0.00 8.11 7.90 11.78 15.00

8 Withdrawals from business

sub-total of outflow 5.55 27.98 61.92 210.20 385.86 975.59

SummaryOpening balance 0.00 6.52 7.33 28.90 30.63 40.89Add: Inflows 12.07 28.78 83.50 211.93 396.12 1,019.37Less: Outflows 5.55 27.98 61.92 210.20 385.86 975.59Closing balance 6.52 7.33 28.90 30.63 40.89 84.67

Cash Flow Projections ( ̀in lacs)

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(Annexure 15)

KJ

Sr.No. Particulars Project period


Sources of funds1 Share capital / Promoter's capital 12.07 12.07 14.50 16.87 20.41 24.912 Reserves & Surplus:

Opening balance 0.00 5.00 16.11 71.84 227.82Additions/Profit/Loss during the year 0.00 5.00 11.12 55.72 155.98 419.54

Used during the year 0.00 0.00 0.00 0.00 0.00Closing balance 0.00 5.00 16.11 71.84 227.82 647.35

3 Secured Loans:Term Loans: Opening balance 0.00 0.00 0.00 5.68 10.07 15.52

Additions during the year 0.00 0.00 5.68 5.53 8.25 10.50Repaid during the year 0.00 0.00 0.00 1.14 2.80 17.51

Closing balance 0.00 0.00 5.68 10.07 15.52 8.51

Working Capital: Opening Balance 0.00 0.00 15.07 59.49 91.66 61.59

Additions during the year: WC 0.00 15.07 44.43 92.17 119.92 314.12Repaid during the year 0.00 0.00 0.00 60.00 150.00 370.00

Closing balance 0.00 15.07 59.49 91.66 61.59 5.704 Unsecured Loans:

Opening balance 0.00 0.00 0.00 0.00 0.00 0.00Additions during the year 0.00 0.00 0.00 0.00 0.00 0.00

Repaid during the year 0.00 0.00 0.00 0.00 0.00 0.00Closing balance 0.00 0.00 0.00 0.00 0.00 0.00

Total 12.07 32.13 95.79 190.44 325.33 686.47

Applications of funds1 Fixed Assets:

Opening Gross Block 0.00 3.50 3.50 11.61 19.51 30.69Additions during the year 3.50 0.00 8.11 7.90 11.78 15.00

Less: Depreciation during the year 0.00 0.00 0.00 0.00 0.00 0.00Less: Sale/scrap during the year 0.00 0.00 0.00 0.00 0.60 0.90

Net Block 3.50 3.50 11.61 19.51 30.69 44.792 Current Asssets:

Inventories 23.29 63.05 161.99 293.08 647.38Cash & Bank Balance 6.52 7.33 28.90 30.63 40.89 84.67

Sundry Debtors 0.00 0.00 0.00 0.00 0.00Other current assetsGross current assets 6.52 30.62 91.95 192.62 333.97 732.05

Less: Sundry Creditors 0.00 3.83 9.41 23.12 40.56 91.39Net Current Assets 6.52 26.79 82.54 169.50 293.41 640.66

3 Prelim & Preop. Expenses not written off 2.05 1.85 1.64 1.44 1.23 1.034 P&L Account:

Opening balance 0.00 0.00 0.00 0.00 0.00 0.00Additions during the year

Closing balance 0.00 0.00 0.00 0.00 0.00 0.00

Total 12.07 32.13 95.79 190.44 325.33 686.47

Projected Balance Sheet ( ̀in lacs)

xvii

(Annexure 16)

Break-Even Analysis

Sr. No.

Particulars Value

Year-1 Year-2 Year-3 Year-4 Year-51 Sales Realization 121 325 824 1482 3221

2 Variable costs 83 225 566 1,000 2,219

3 Fixed costs incl. interest 26.73 78.40 166.51 236.98 356.39

4 BEP = FC/SR-VC x 100 = 70.05% 78.36% 64.57% 49.13% 35.57%

xviii

(Annexure 17)

List of Ecommerce players by category

1. Gifts, cakes etc. Infibeam.com, Fernsnpetals.com, IndianGiftsPortal.com, Talash.com GlimGifts.com

2. Books Flipkart.com, Landmarkonthenet.com, A1books.co.in

3. Custom designed T-shirt, mug, calendar etc Myntra.com, Zoomin.com, Snapfish.in, Picsquare.com

4. Apparels Pantaloons, Shoppersstop.com, Inkfruit.com, UtsavSarees.com, Globus.com Zovi.com, Yepme.com, Yebhi.com, Chumbak.com, Fetise.com, Shersingh.com, freecultr.com, Myntra.com, Pepperfry.com, etc

5. Sweets and bakery items Mithaimate.com

6. Artwork auction Saffronart.com

7. A-Z items for Babies Hushbabies.com, Firstcry.com, BalGopal.com, Kidloo.comBabyoye.com

8. Movie ticket booking Bookmyshow.com, PVRCinemas.com

9. Online travel ticketing and hotel booking Irctc.co.in, Redbus.in, MakeMyTrip.com, Yatra.com, TripAdvisor.in, ClearTrip.com, Travelguru.com, Expedia.co.in, Ezeego1.co.in, Ixigo.com, TravelMasti.com, Hotels.com

10. Airlines portals Goindigo.in, Indian Airlines, Jetlite.com, Flykingfisher.com, Goair.in, Spicejet.com, Jetairways

11. B2C (Multiple products) Ebay.in, India Times, Rediff Shopping, Bigbazar, Homeshop18.com,Shop.zapak.com, Shop.in.com, Tradeus.in, Indiaplaza.in, Egully.com, 20north.com, Timtara.com,YepmeShopping.com, Bigadda.com

12. Rent a movie BigFlix.com, Seventymm.com

13. Footwear Yebhi.com, Metro, Shoes Bata14. Deal a day SnapDeal.com, Dealsandyou.com, Mydala.com, Koovs.com, Grabbon.com, BindaasBargain.com, Taggle.com, SoSasta.com, Dealivore.com, Grako.in, Dealsonline4u.com,

xix

(Annexure 18)

Bagittoday.com, 99labels.com, Fashionandyou.com, Timesdeal.com, Rediff-DealHoJaye, Dealface.com, DealYantra.com, Buzzintown DealsDealsNow (For Corporates)

15. Electronics, Gadgets, Phones Dell.co.in, Ezone, EDigiWorld, BitFang.com, Letsbuy.com, LootSpot.com, Next.co.in, infibeam.com

16. Jewellery Caratlane.com, Suratdiamond.com Ddamas.co.in

17. Lingerie Straps and Strings, Ngal Originals, Victoria’s Secret India

18. Sports Playgroundonline.com Esportsbuy.com

19. Health, Fitness, Beauty, Wellness Health Shoppe, Urbantouch

20. Perfumes Perfume2Order, Beautymart.in, Perfumes Direct

21. Groceries, Vegetables, Fruits AaramShop.com Mandifresh

DSPComparison Sheet

xx

(Annexure 19)

Cost sheet for a product of 500 grams or belowExpress It Blue Dart Aramex Deccan 360 DTDC Indian Postal

Freight chargesBase Price 16.00 29.50 15.00 21.00 15.00 20.00

Intra city Fuel surcharge 2.88 14.00 7.00 7.35 2.25 NA(loacal- till kalyan, Service tax @10.3% 1.94 4.48 2.27 2.92 1.78 2.06blapur and plghar) Total 20.82 47.98 24.27 31.27 19.03 22.06

Base Price 24.00 29.50 28.00 21.00 46.00 40.00Intra region Fuel surcharge 4.32 14.00 7.00 7.35 6.90 NA(western india) Service tax @10.3% 5.10 4.48 3.61 2.92 5.45 4.12

Total 33.42 47.98 38.61 31.27 58.35 44.12

Base Price 35.00 29.50 30.00 22.00 42.00 70.00Metros city Fuel surcharge 6.30 14.00 7.50 7.70 6.30 NA(Banglore,chennai,Hyd Service tax @10.3% 4.25 4.48 3.86 3.06 4.97 7.21rabad,Delhi,Kolkatta) Total 45.55 47.98 41.36 32.76 53.27 77.21

Base Price 35.00 29.50 30.00 24.00 46.00 70.00Fuel surcharge 6.30 14.00 7.50 8.40 6.90 NA

Pan India Service tax @10.3% 4.25 4.48 3.86 3.34 5.45 7.21Total 45.55 47.98 41.36 35.74 58.35 77.21

Comparison Sheet Based On Cash on Delivery

xxi

(Annexure 20)

Cash on Delivery BasisExpress It Blue Dart Aramex Deccan 360 DTDC Indian Postal

Upto Rs 500 35 50 8% of bill NA NA NAUpto Rs. 1000 35 50 7% of bill NA NA NARs 1001 to Rs. 2000 50 50 6% of bill NA NA NARs 2000 and above 2.5% of bill 50 6% of bill NA NA NA

Comparison Sheet (includes the return charges, additional charges and fuel surcharge in 5 %.)

Express It Blue Dart Aramex Deccan 360 DTDC Indian PostalAdd. Charge per 500gm 12,18,30 28 25 21,22,24 21,22,24Return charges 12,18,30 as freight as freight as freight as freight as freightRet. Charges for add. 500 g 10,15,25 as freight as freight as freight as freight as freightFuel surcharge 18% 50% 25% 35% 15% NA

Other Factors ( Additional weight and return charges)

Comparison Sheet (Turnaround Time)

xxii

(Annexure 21)

(Annexure 22)

Express It Blue Dart Aramex Deccan 360 DTDC Indian PostalMumbai 2-3 days 1-2 days 2-4 days NA 2-4 days NADelhi 4-6 days 2-3 days 4-6 days NA 3-5 days NAHyderabad 6-8 days 3-4 days 5-8 days NA 6-8 days NAChennai 6-8 days 3-4 days 5-8 days NA 6-8 days NABanglore 6-8 days 3-4 days 5-8 days NA 6-8 days NAPune 2-4 days 1-2 days 3-5 days NA 2-4 days NA

Turnaround time for the parcels in different regions

xxiii

kunal

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