Yi)INTRODUCTION

NAME: MSN Real Estate

Address of Business: First Office will be located at Framjee Chambers,
Flora Fountain, since it happens to be a crucial business area downtown
Name of Principals: Ms Neha Soningra Mr !aran "oshi#
Nature Of Business MSN Real Estate $MSN% is a &omba'(based real
estate compan' that will offer benchmar)ed rental units for the societ'#
MSN*s units will balance safet', cutting edge features, and a positi+e
atmosphere for all tenants# ,hese rentals will be pro+ided with unmatched
le+els of customer ser+ice and attention#
!tatement Of "inancin#
,he total start(up e-penses include legal, stationer', architect, brochures,
consultants, insurance, rent, construction, e-pensed e.uipment, etc# Start(
up assets re.uired include short(term assets $truc), cell phone, etc#%, and
initial cash to handle the architect and contractor fees prior to
opening# /dditional cash is needed to pa' all 0oning fees and
go+ernmental regulations#
1ong(term asset purchases and the assumption of long(term liabilities are
anticipated#
,he details are included in the following:
1
!tart$up Re%uirements
Start(up E-penses
1egal 234444
/rchitect Fees 524444
Stationer' etc 62744
&rochures 52444
Consultants 524444
8nsurance 34444
Rent 567444
Construction 342744
E-pensed E.uipment 294444
Other 94444
,otal Start(up E-penses 53, :2,444 Rs
Start(up /ssets
Cash Re.uired ;:,44,444
Other Current /ssets 9,24,444
1ong(term /ssets 93,44,444
,otal /ssets 5,23,24,444
Total Re%uirements 5,9:,32,444
!tatement of Confidentialit& Of Report'
8nformation, data and drawings embodied in this business plan are strictl'
confidential and are supplied on the understanding that the' will be held
confidentiall' and not disclosed to third parties without the prior written
consent of Ms Neha Soningra# 8t is ac)nowledged b' reader that
information to be furnished in this &usiness <lan is in all respects
confidential in nature, other than information which is in the public domain
through other means and that an' disclosure or use b' same of reader ma'
cause serious harm or damage to MSN# =pon Re.uest, this document is
to be immediatel' returned to Ms# Neha Soningra#
2
ii) E(ECUTI)E !UMMARY'
MSN Real Estate is an enterprise that is in+ol+ed in numerous aspects of
the industr'# <rimar' e-perience and e-pertise is in the de+elopment of
high(.ualit', lower cost li+ing for students and professionals see)ing the
most up(to(date technologicall' ad+anced li+ing en+ironment# /n area of
intense training and attention is the importance of strong customer ser+ice#
,he first propert' purchased b' the compan' is a 94(unit apartment
building on the corner of Churchgate opposite O+al >rounds and 8t is
relati+el' close to the =ni+ersit' Colleges, so will be easil' rented to
capacit' nine months out of the 'ear# For the remaining three months, the
price of rent will be reduced and we will aim to remain at :4? capacit'#
Mission
MSN Real Estate pro+ides high(.ualit', comfortable rental units in South
&omba' and other areas of &omba'# MSN*s apartment units offer state(of(
the(art li+ing conditions reflecti+e of the rapid ad+ancements in tec*nolo#&
and a growing need for .ualit' housing# Our compan' is dedicated to a
hassle free li+ing en+ironment in which our tenants can enjo' all of the
benefits of safe, attracti+e, and in+iting units# =nli)e man' other realt'
companies that are solel' concerned with turning profits, our primar'
objecti+e at MSN is to maintain the highest le+el of customer satisfaction
that is achie+able# ,enant safet', happiness, and comfort are our main
goals# MSN maintains competiti+e mar)et prices, while wor)ing toward
e-panding the number of units owned, and increasing total profits earned#
@ithin the compan' we will stri+e to wor) as a cohesi+e, harmonious unit
focused on e-emplif'ing our mission# Aust as customer satisfaction is an
intricate part of MSN*s success, so is emplo'ee satisfaction# ,hat is wh'
the founders of MSN Real Estate belie+e that emplo'ee satisfaction will
ma)e the compan' a success and will be the )e' to their longe+it'#
8nitial focus will be to bu' and de+elop e-isting apartment comple-es# @e
will modif' and remodel the ac.uired real estate so as to meet MSN
standards and increase long(term assets and income# Bousing units will
predominantl' be located in the =ni+ersit' neighborhood targeting both
students and professionals# MSN fosters the ideals of the importance of
tenant needs along with health' and understanding relationships and a
professional commitment to satisfaction#
3
+e&s to !uccess
5# Safe, .ualit' housing that pro+ides state(of(the(art amenities at
competiti+e prices#
2# Maintaining open communication between MSN and its customers in
order to ensure the highest le+el of customer satisfaction and long lasting
reputation within the communit'#
6# ,o continue to e-pand the number of units owned and maintained,
while also increasing the le+el of profits for both MSN and its in+estors#
Compan& O,ners*ip
MSN Real Estate will be created as a 1imited 1iabilit' Corporation based in
Mumbai# 8t will be owned b' its principal in+estors, Neha Soningra !aran
"oshi# Neha is the acting CEO and holds a 94? sta)e in the compan'#
!aran is the acting CFO and holds a 94? share of the compan' as well#
,he other 24? is held b' silent in+estors#
Compan& -ocations and "acilities
MSN head.uarters will be established in /(.ualit' office space in the
downtown area of Flora Fountain, &omba'# ,his will be the heart of our
compan', with satellite locations in >rant Road and "adar, Mumbai# @e
are also installing an in(house 8nternet ser+er and 29(hour answering
ser+ice so that all customer or business communications are dealt with in
an e-pedient and fluid manner# @ithin an' li+ing de+elopment with more
than 62 units a representati+e of the compan' will be located#
,he compan' is currentl' in the final stages of purchasing its first building,
a 94(unit apartment building on the corner of Churchgate opposite O+al
>rounds# ,he price of this building is Rs 5#69crores# ,he compan'
will ma)e a down pa'ment 5crores and spend an additional 3,42,744 on
reno+ation#
8n Cear 2 the compan' will purchase its second facilit'# 8t is currentl' in
discussions with the owners of a 24(unit apartment building in @orli# 8t is
difficult to predict changes in the building +alues o+er the long term, but it is
estimated that we will be able to purchase this building for 55crores#
4
iii) INDU!TRY ANA-Y!I!
MSN Real Estate*s main consumer base will be primaril' students who will
benefit from the apartment*s unparalleled le+el of .ualit', location, and
technological amenities# @e will also be mar)eting to local area
professionals and recent graduates, along with facult' and staff at the
=ni+ersit'# ,hese customers will be loo)ing for safe, high(.ualit'
en+ironments that can foster the t'pe of atmosphere needed for scholastic
and professional success#
Mar.et !e#mentation
5# MSN*s largest mar)et segment in the South &omba' area will be
students of the local uni+ersities# ,hese students will be the most li)el' to
desire the technological amenities that our compan' offers# @e e-pect this
to be the largest growing segment with a growth rate of about ;?#
2# 1ocal professionals are another large segment# ,he' will be attracted
to the units because of the same technological needs, but will also be
attracted to the comfortable, well maintained li+ing en+ironment# MSN
offers units that pro+ide a .ualit' DhubD between college graduation and
home ownership# @e e-pect this segment to grow at a rate of about 9?
with a more fre.uent turn o+er#
6# 1ocal uni+ersit' facult' and staff represent the third and smallest
identifiable segment, but contain the second highest growth rate# <ro-imit'
and .ualit' will entice this segment which we e-pect to grow at a rate of 7?
5
Tar#et Mar.et !e#ment !trate#&
@e belie+e that our unparalleled le+el of .ualit' and technological
amenities put MSN into a niche of its own# ,his will be the focal point of all
our mar)eting and ad+ertising efforts# ,hese segments are also easil'
reached through local newspapers and publications, as well fre.uent open
house displa's#
8t is essential for MSN patrons to understand that their needs are our
priorit'#
Mar.et Trends
,his industr' is constantl' e+ol+ing and lea+ing man' infle-ible companies
stagnant# One of the major trends is the need to adapt to technological
ad+ancements as well as maintaining the o+erall appearance and condition
of the comple-es#
/nother important trend is adapting to higher densit' housing in smaller
areas due to urban growth boundaries, etc# MSN is dedicated to following
these trends while maintaining the le+el of comfortable li+abilit' that sets us
apart from our competitors#
Mar.et /ro,t*
,he mar)et for high .ualit', reasonabl' priced apartment units has been
growing at a rate of :#;? since 5EE:#
,he &omba' mar)et is e-periencing rapid emplo'ment growth that is
fueling demand for apartments, but not man' new units are emerging# Not
onl' is MSN pioneering this particular niche of affordable .ualit' li+ing, but
it is capitali0ing on the strength of the current economic growth in &omba'#
Mar.et Needs
Each of our targets needs the .ualit', con+enience, ser+ice, safet', comfort
and technological amenities that can onl' be found at our li+ing comple-es#
5# ,he student segment needs a .uiet safe atmosphere that fosters a
.ualit' learning en+ironment# ,he' also need the con+enience of location
and on(site amenities#
2# ,he professional segment needs a li+ing en+ironment that separates
them from the nois', dirt' incon+enience of a+erage apartment li+ing# Most
professionals are on their wa' to home ownership or mo+ement to a larger
cit', so the' need housing that will let them feel li)e the' are getting the
.ualit' that the' need#
6# ,he facult'Fstaff segment also has similar needs# ,he' need to feel
separation from the noise and un)ept conditions of most near(campus
housing# /long with the students, the' also need a place to feel safe and
one that fosters con+enience#
6
i0)Description Of )enture
1e ,ill focus on pro0idin# *i#*$%ualit& li0in# in con0enient locations
,it* a ,ide customer 2ase' It is also important t*at ,e remain at
t*e upper ec*elon in t*e %ualit& ran#e ,*en compared to
competitors' 1e can onl& functionalit& and appearance of M!N
properties' 1e ,ill *a0e an updated 1e2 site for an&one
interested in t*e properties'
@e start with a critical competiti+e edge: there are +er' few apartment units
that offer the same le+el of .ualit' and technological amenities as MSN
properties# @e also ha+e a +er' high regard for customer ser+iceG
something that is unparalleled in this industr'# MSN belie+es it is essential
that the customer feels heFshe is being treated with the utmost care and
urgenc'# /ll staff and personnel go through a training program that teaches
man' of the s)ills needed for successful client relations and customer
ser+ice#
Competiti0e Ed#e
@e start with a critical competiti+e edge: there are +er' few apartment units
that offer the same le+el of .ualit' and technological amenities as MSN
properties# @e also ha+e a +er' high regard for customer ser+iceG
something that is unparalleled in this industr'# MSN belie+es it is essential
that the customer feels heFshe is being treated with the utmost care and
urgenc'# /ll staff and personnel go through a training program that teaches
man' of the s)ills needed for successful client relations and customer
ser+ice#
)) PRODUCTION P-AN
For people who desire high(.ualit' li+ing with all the technological
amenities a+ailable, onl' MSN real estate properties will be able to fulfill
their needs and desires at an affordable price# =nli)e most other propert'
management companies, MSN is committed to guaranteeing customers full
satisfaction, with 29(hour on(staff ser+ice, li+e answering ser+ice, and a
website that handles all complaints instantl'#
,he ser+ices can be a+ailed and procured of b' all residents of &omba' b'
contacting the office and get informed according to their re.uirements#
/long with the founding partners others assisting the business will be:
Mr# Ragha+ Aoshi $/dministration Manager%
7
Mr# Aoe Nash $&ro)erage Manager%
Mr# !e+in "as $Bead Contractor $"e+elopment Mgr#%%
)I) OPERATIONA- P-AN
Mana#ement !ummar&
,he initial management team depends on the founders themsel+es, with
bac)(up assistance from the propert' management department of MSN
Real Estate# /s we continue to grow, we will establish satellite offices in all
of our li+ing de+elopments# 8t will also be necessar' to ta)e on additional
help in the mar)eting and R " sectors as growth continues#
Or#ani3ational !tructure
MSN Real Estate depends on an organi0ed di+ision of responsibilities in
order to run an efficient, di+ersified enterprise# Main decisions and
responsibilities will be di+ided between the two top partners# ,he' will focus
on maintaining high .ualit' and a cohesi+e business entit'# ,op di+ision
managers will be gi+en specific responsibilities such as mar)eting, finance,
strategic management, or research and de+elopment#
Mana#ement Team
MSN Real Estate is completel' departmentali0ed# ,he main departments
are finance, mar)eting, management, and research and de+elopment#
!aran "oshi, co(owner of the compan', assumes the responsibilities of the
CFO, while his counterpart, Neha Soningra, will be responsible for the
duties of CEO# ,he compan' will ma)e all decisions in accordance with the
compan' mission# Emplo'ees are delegated tas)s based upon their
specialt'# Mr Aoe Nash would be in charge of all the bro)erage coming in
and the rates of bro)erage and finances# Mr !e+in "as would be the main
incharge of all the construction and site de+elopment for the estates
underta)en#E+er' si- months, the two top partners will assess the results of
these tas)s, and the personalit' of the emplo'ee in+ol+ed, to determine
promotion andFor salar' issues#
Tec*nolo#& Utili3ation
@ith help of online s'stems and constant updating of websites, MNS tries
to aim at getting the competiti+e edge of a global method to please its
customers with constant news re+iews new sites and localities#@ith usage
of ><S and ,rac)er S'stems locations and sites would be found and used
for a more detailed approach#
8
0ii)Mar.etin# Plan
Distri2ution !trate#&
@e will focus on pro+iding high(.ualit' li+ing in con+enient locations with a
wide customer base# 8t is also important that we remain at the upper
echelon in the .ualit' range when compared to competitors# @e can onl'
do this b' organi0ing and implementing a sound plan that will assume
responsibilit' for the functionalit' and appearance of MSN properties# @e
will ha+e an updated @eb site for an'one interested in the properties#
Mar.etin# Pro#rams
Our most important mar)eting program is customer word of mouth# ,he
onl' wa' to trul' )now the .ualit' of our units is through e-perienceG hence
we must maintain the highest le+el of customer satisfaction# Rewards will
be gi+en to clients or customers that refer new clientele to the compan'#
@e confidentl' belie+e that the high le+el of .ualit' that MSN will pro+ide
can attract a strong demand for our units#
/nother incenti+e that we will use is the earl' mo+e(in bonus program#
/n'one that signs their lease before Aune 57th will recei+e a free month as
well as two par)ing spaces# ,his will encourage people to tr' and beat the
rush of people who mo+e in later# 8t will also gi+e the appearance of
increased demand#
Positionin# !tatement
For people who desire high(.ualit' li+ing with all the technological
amenities a+ailable, onl' MSN real estate properties will be able to fulfill
their needs and desires at an affordable price# =nli)e most other propert'
management companies, MSN is committed to guaranteeing customers full
satisfaction, with 29(hour on(staff ser+ice, li+e answering ser+ice, and a
website that handles all complaints instantl'#
Pricin# !trate#&
9
MSN*s pricing will be at the top of what the mar)et will bear# @e are
competing with large firms who ha+e similar comple-es# Our prices will be
competiti+e with these larger firms while maintaining the high le+el of
.ualit' and e-pert management#
<rices +ar' b' unit from 2744(65444 Rs a month# MSN, howe+er, must tr'
to follow mar)et pricing trends in order to maintain a competiti+e
ad+antage#
Promotion !trate#&
MSN*s most successful promotion will come in the form of word of mouth#
Since we will own real estate, we will be highl' +isible to the public# Since
our comple-es will be in the upper echelon of .ualit' and li+abilit', word will
spread through the communit' about our uni.ue appeal#
/long with word of mouth, our most consistent form of promotion will come
from ads in local publications, specificall', The Times, The DNA and The
Mumbai Mirror, as well as smaller maga0ines and circulations# @e will also
be personall' promoting our product within the communit'#
Our sale program will include sales awards for length of lease agreements,
maintaining a full capacit' status, and customer ser+ice awards for those
who best e-emplif' MSN*s commitment to customers# @e will also award
e-isting customers for referring new clientele to the compan'#
!ales "orecast
,he following table and chart gi+es the forecasted earnings for MSN Real
Estate apartment rental units# @e percei+e a gradual increase in the total
number of units o+er the ne-t 'ear# /s time goes on, the monthl' per(unit
rental price will slowl' ascend, coupled b' the decline in cost o+er time,
producing an increased per(unit profit#
From our opening in Aanuar' to Aune, we e-pect that all units will be
completel' rented out# 8n the summer months we anticipate fewer student
tenants, so we ha+e planned on a rent lowering process to entice renters to
sta'# /lso, we will onl' rent on 'earl' leases to ensure that all rented units
remain filled 'ear round# @ith the estimated profits from the pre+ious
months the anne- will be completed in September, adding 59 more units#

10
11
24,00,000
20,00,000
16,00,000
12,00,000
8,00,000
4,00,000
0
(In RUPEES)
Or#ani3ational Plan
Identification Of Principals
<rincipal heads of the organi0ation ha+e been recogni0ed and no partners
ha+e been incorporated at this stage with Ms Neha Soningra as the main
shareholder of the compan'#
Principals include
Ms Neha Soningra Mr# !aran "oshi#
,he founding partners will ta)e limited compensation for the first three
'ears until earnings are substantiated and growth is assured# @e belie+e
this plan is a compromise between fairness and e-pedience and meets the
commitment of our mission statement#
Aut*orit& Of Principals
Onl' the principal holders solel' can ta)e all the critical decisions which
include:
Rates and <rices of Ser+ices
New sites to be engaged with#
Estate <olic'
/ppointmentF "ismal of Staff
/lterations to the business polic'#
E-pansion of &usiness outside the cit'
New &ranches to be opend
Regulation of Standards#
EH=/1 Right o+er all the assets emplo'ed#
EH=/1 Right o+er all the accounts recei+able#
Mana#ement Team Bac.#round'
MSN will be led b' Neha Soningra !aran "oshi# Neha has a bachelorIs
degree in Economics and recei+ed her M&/ from the =ni+ersit' of &er)le'#
Following school, Shawn went to wor) for one of the largest propert'
management companies in the area# !aran brings different s)ills sets to the
compan', coming from a customer ser+ice bac)ground# /t the 'oung age of
5E, !aran had alread' completed a couple of Finance and Mar)eting
courses and went to wor) for 8ON Education# 8n this position !aran
managed 8onIs customer ser+ice department# ,his e-perience pro+ided
!aran with incredible customer attention s)ills that he will le+erage for
MSN#
12
I() Assessment Of Ris.'
,he business of real estate is alwa's a cutting edge ris) one# &ut the
ad+antages alwa's supersede the disad+antages as e+er'bod' wants to
in+est in real estate as thereIs ne+er a chance of no returns# Ris) in+ol+ed
here is that:
No assurance of returns#
No guarantee or securit' of the future
Fluctuations in prices#
Consumer preferences and demands can be +aried
1ong gestation period for reali0ing income#
()"inancial Plan'
13
Estimated Profit 4 -oss Account'
PARTICULARS ACTUAL
SALES(Rs)
"irect Sales 5,42,94,444
$(% /c.uisition of propert'$"8REC,
Costs% 2:,92,444
TOTA- !A-E! 567897:::
-E!!
Expenses:
Mar)etingF<romotion 5449444
"epreciation 6:,::6
8nsurance 966244
Rent ;2E444
Commission 5274444
Total operatin# E;penses 29933:6
Profit Before Interest 4 Ta;
<=7<87>?
5
$(%8nterest 24,29,444
$(%,a- :,E6,444
NET PRO"IT A"TER TA( >67?=7>?5
14


Assets

Current Assets:
Cas*
INR
>7::7::7:::
Ot*er Current Assets 57,24,444
Prepaid E;penses 87:<76::
Notes Recei0a2le ?:7>:7:::

Total Current
Assets
Rs
>76<7?<76::

Fixed Assets:

!*ort Term Assets 67=676::


-on# term assets >=7::7:::
-ess
Accumulated
Depreciation =7::7::: >:7::7:::


Total Fixed
Assets Rs >67=676::


Total Assets
INR
>7@87@:7:::


15
ESTIMATED BALANCE SHEET FOR YEAR ENDED 31/3/2011
Liabilities and Capital

Current Liabilities:
Accounts Pa&a2le
INR
67::7:::
!ales Ta;es Pa&a2le =7::7:::

Total Current
Liabilities
INR
57::7:::


-on# Term -oan from ICICI =7::7::7::: =7::7::7:::
Total -IAB-ITIE! =7:57::7:::
Capital:
Paid $ in Capital 67@:7:::
Total Capital =7>=7@:7:::

Total -ia2ilities and Capital
INR
<?7::7:::
16
ABrea. e0en Anal&sisB
!ales >7:=7<:7::: >::'::
C$))aria2le Costs =<7<979@? =?'8>
Contri2ution 5578>7>?5 5@':8
C$) "i;ed Costs =@7<=7:::
D 6>7<87>?5
To find the break even point
Fixed Costs 26,42,000
Contribution % 76.01
When Contribution is 76.01 a!es is 100
When Contribution is 77,"1,1#7 a!es $i!! be %
2642000&76.01'100 ( #4,7),*)*
Eence +reak even sa!es ,a!ue is -s.#4,7),*)* $here $e
$i!! .ake enou/h .one0 to 1over the fixed 1osts on!0.
17
Competiton
Nau.ri'com
Ma#ic2ric.s'com
Sule!"#$%&
18