Amulya Multi Cuisine Restaurant

Amulya Pvt. Limited

Sec B Group 5 Ujwal Shenoy Ashley Varghese Shreekara Holla M S Pramodh M S Suraj Kumar Vignesh Nayak

EXECUTIVE SUMMARY & INTRODUCTION

BUSINESS PLAN
Introduction:
Amulya Multi Cuisine Restaurant is an innovative start-up of Amulya Pvt. Limited. Amulya Multi Cuisine Restaurant started as a floating restaurant on Malpe Beach. Amulya Multi Cuisine Restaurant expects to catch the interest of the residents of Udupi, Mangalore & also the tourists for different parts of the world. Amulya Multi Cuisine Restaurant is registered under Department of Tourism, Government of Karnataka and Karnataka State Tourism Development Corporation Ltd (KSTDC) to attract the tourists from different places who visits St. Marys island in Malpe Beach. Amulya Multi Cuisine Restaurant provides broad variety of drinks, food and entertainment facilities to its customer base. Amulya Multi Cuisine Restaurant aims to offer its services at a competitive price to meet the demand of the middle-to higher-income local market area residents, students and tourists who visits Udupi, Mangalore, Kundapura, Manipal etc.

Company Profile:
Amulya Multi Cuisine Restaurant a venture of Amulya Pvt. Limited started by the group 6 budding entrepreneurs who are specialised in their own areas. The promoters of Amulya Multi Cuisine Restaurant (Amulya Pvt. Limited) invested rupees thirty lakhs as initial investment in the ration given below: Mr. Ujwal Shenoy (` 10,00,000/-) Mr. Shreekara Holla (` 7,00,000/-) Mr. Pramodh Gowda (` 5,00,000/-) Mr. Vignesh Nayak (` 3,00,000/-) Mr. Suraj Kumar (` 2,50,000/-) Ms. Ashley Varghese (` 2,50,000/-)

To help these entrepreneurs, venture capitalists, banks & financial institutions came forward and provided financial support. Amulya Multi Cuisine Restaurant is situated on the waters of Malpe Beach, Udupi District. It is a place which attracts people for its natural beauty. Udupi district in Karnataka district attracts tourists from different parts of the world for its famous places such as temples, picnic spots. It also attracts students because the educational town of India, Manipal is situated in this district itself. Amulya Multi Cuisine Restaurant is committed to an excellent customer service which is not only goal but also the soul of the venture. Mission Amulya Multi Cuisine Restaurant aims to offer high quality food and beverage with entertainment at a competitive price to satisfy the needs of the middle to higher income people who are Local residents, students and tourists from different parts of the world. Keys to success of Amulya Multi Cuisine Restaurant will include: Providing the quality service with personal customer care Competitive pricing Personalization Our policies Our main policy is to serve the customer by striving to understand the needs of the customer. We at Amulya Multi Cuisine Restaurant (Amulya Pvt. Limited) completely believe that only by identifying the needs of the customer we can serve our customers with a smile. We are also Eco-friendly in terms of waste water management, we does not bring any harm to the marine habitats. Every activity which we do is under the purview of policies led down by the authority. We also make sure that we are binding to the law of the land. We practice using of eco-friendly products in the company, reduced paper usage, only using reused plastic for packaging and also make others to follow the same. This is because we believe that when we live in an environment we need to take care of it otherwise it will not be able to take care of us.

Operational Plan

Operations Plan An exclusive menu will be designed which suits the tastes of all the people who would be visiting our or their own food place (food palace). Hours of Operation The restaurant will be open all the 7 days a week. Service will begin at 6:00 AM in the morning and end at 12:30 AM at the night. Daily operations Systems & Controls A big emphasis is being placed on extensive research into the quality and integrity of our products. They will constantly be tested for our own high standards of freshness and purity. Food costs and inventory control will be handled by our computer system and checked daily by management. Food Production All food items will be prepared on the premises. The kitchen will be designed for high standards of sanitary efficiency and cleaned daily. Food will be made mostly to order and stored in large coolers in the basement. The meals will be pre-prepared upon arrival to the location of the event. All hot meals will be kept hot and the cold meals will be kept cold. Our Chefs are well equipped, trained and also trained to meet the expectation of the customers. The try to prepare good food in very minimal time because our team believe in Time is Precious concept and we value our customers time. Customer service We would be providing a personalized customer service. Our managers & waiters will be friendly with the customers (partners) and our chefs prepare food according to the tastes of the needs of the customer Suppliers We are also committed to our suppliers. As our business belongs to cash & carry business, we do not default to our suppliers.

H R Plan

HR Plan We will be recruiting a team consisting 32 members. The 32 members include 2 managers who will be responsible to manage Amulya Multi Cuisine Restaurant. The other 30 members include: 2 Executive chefs 5 Assistant Chefs 3 Executive Waiters (2 in Restaurant & 1 in Bar) 9 Waiters for the restaurant 4 Waiters for the bar 7 Cleaning staff

Selection Process The selection procedure for the managers and executive chefs are as follows: The managers & Executive chefs will be screened on the basis of their experience in the field. Our group expects a minimum experience of 5 to 7 years. Screening of applicants based on their qualifications A technical interview and a personal interview will be conducted. The chefs will be asked to prepare certain dishes in addition to test their practical knowledge. The selection procedure for waiters and cleaning staff are as follows: A personal interview will be conducted to select the waiters and cleaning staff. The waiters will be tested on their communications skills as we are targeting at many foreigners and customers from various parts of the country. Compensation Package Employee Salary Manager 20,000.00 Executive Chefs 18,000.00 Assistant Chefs 14,000.00 Executive Waiters 10,000.00 Waiters 7,000.00 Cleaning staff 5,000.00 The salary will be increased according to the policy of employment. Announcement of other fringe benefit is in the hands of employer.

Marketing Plan

Marketing Plan Market Potential: Central hub for tourism in the Southern States of India. Consists variety of tourists spots like picnic spots, temples or beach. Potential customers are expected to be the tourists and people residing in the nearby places. Weekdays Footfalls is less when compared to Weekend footfalls and the people visiting on vacations. Products and Offerings: The products offered under Amulya Multi Cuisine Restaurant are: Breakfast South Indian, North Indian, Italian & Western Lunch (Both Vegetarian & Non-Vegetarian) South Indian, North Indian, Chinese, Italian, Western & Continental Snacks Indian, Chinese & Italian Beverages All the brands available in India & also brands from International market. Party Hall Banquet Hall & Corporate Meeting Hall 7 Ps: PRODUCT: Amulya Multi Cuisine Restaurant is the product in which variety food & beverages are offered. The main product is Quality food according to the requirements of the customers PLACE: Malpe Beach, Udupi District, Karnataka is the place of operation because Malpe beach is famous for its natural beauty and attracts tourists & also others regularly to visit. PRICING: The pricing differs in accordance with the food taken by the customers. Competitive pricing is the policy of our Restaurant. Quality of Food & Service offered determines the price. Pricing is done in accordance to attract the middle income & higher income people who are from different parts of the world.

PROMOTION: Tie-ups with all the major Tours and Travel agents in Karnataka. Registered under Department of Tourism, Government of Karnataka, Karnataka State Tourism Department Corporation Limited (KSTDC) and also trying to register under Department of Tourism, Government of India. Advertising would be the means of promotion to mass media. Advertising is done through local Newspapers, Magazines, National Newspapers, Radio & other electronic Medias. Special discounts on special festivals and group entry is offered to attract people. Bulk booking & reservation offers will be given. Corporate offers will be there to have a corporate meeting in the halls of our restaurant. PHYSICAL EVIDENCE: Word of mouth and public experience of our services & food. Creating goodwill in the society through quality food & service. PEOPLE: Our team of employees is our main part of people. The personalized service provided by these people will create new Customers and we can create values out of it. PROCESS: Set of inter regulated Activity. The inter regulated activity is routine in nature. The production of quality food is the main process. STP Analysis: Segmenting: Segmenting is done on the basis of Income of the individuals. The facilities of the restaurant are mainly segmented towards middle & higher income people. Targeting: We focus on providing quality food & services to our customers whom we considered as premium. The service is targeted towards all the age group without any barrier as food is an essential need for every individual. The income based targeting is done only because to attract the tourists. The service is provided to anyone who can afford our competitive pricing. Positioning: Experience the ultimate feast of luxury is the base idea of our service. We are positioning our service mainly as a quality food & service for all who can afford to pay. This service is mainly positioned as middle & premium or higher income group facility.

SWOT Analysis: Strength: Well-equipped Management Skill possessed by the promoters. The funds from different sources. Committed employees New and variety of experience in the restaurant Competitive Pricing & Economical cost for Quality foods Tie-up with travel agents & Govt. agencies Locational advantage as a tourist spot

Weakness: Lack of labour force Lack of knowledge about industry Absence of brand recognition New player in the market

Opportunity: Greater market potential Too many tourists visiting every year Lack of Multi Cuisine in the place Growing Tourist Spot Broadening of National Highway makes people to visit regularly

Threat: Entry barriers most number of legal formalities Future threat from environmentalists Existing competition Rising cost of raw materials

Financial Plan

Financial Plan Amulya Multi Cuisine Restaurant started with an overall capital of ` 2, 30, 00,000 which is composed of owners (Promoters) capital, venture capital, Borrowed funds. The details of which is given below:

Amulya Multi Cuisine Restaurant

Source of Fund Amount Amount Use of Fund Amount Amount

Capital Infusion from Promoters Ujwal Shenoy Shreekara Holla Pramodh Gowda Vignesh Nayak Ashley Varghese Suraj Kumar Venture Capitalists 11% Redeemable Debenture Term Loan @ 15% [Canara Bank] TOTAL 10,00,000 7,00,000 5,00,000 3,00,000 2,50,000 2,50,000

Initial Investment Floating Hut Furniture Motor Vehicle (2) Investments Preliminary Exps 30,00,000 Working Capital 1,00,00,000 Cash 50,00,000 50,00,000 2,30,00,000 TOTAL 2,30,00,000 1,50,00,000 28,00,000 16,00,000 1,94,00,000 5,00,000 20,00,000 10,00,000 1,00,000

Weighted Average Cost of Capital

Amount Share Capital 11% Redeemable Debentures Term Loan Venture Capital TOTAL 30,00,000 50,00,000 50,00,000 1,00,00,000 Proportion (%) 13.04347826 21.73913043 21.73913043 43.47826087 After Tax Cost (%) Weighted Cost 28 03.652173913 11 02.391304348

15 03.260869565 20 08.695652174

2,30,00,000 100

WACC 18

Estimated Financial Statements

Year 1 Estimated P & L Account * Particulars Raw Materials Salary Electricity Fuel Maintenance Insurance Interest Depreciation Preliminary Exps Written Off Tax @ 30% PAT Amount Particulars Amount 5,06,80,650.59 2,95,02,455.41 Sales 36,24,000.00 7,00,000.00 5,00,000.00 1,50,000.00 10,00,000.00 13,00,000.00 21,00,000.00 4,00,000.00 34,21,258.55 79,82,936.62 5,06,80,650.59

5,06,80,650.59

Year 1 - Balance Sheet * Liability Owners Capital Venture Capital 11% redeemable Debenture 15% Term Loan Amount Asset 1,50,00,000.00 28,00,000.00 16,00,000.00 1,94,00,000.00 21,00,000.00 Amount 30,00,000.00 Floating Hut 1,00,00,000.00 Furniture 50,00,000.00 Motor Vehicle 45,00,000.00 Less: Accumulated Depreciation Surplus 79,82,936.62 Investment Current Assets Inventory Cash Preliminary Exps Less: Written Off 3,04,82,936.62 20,00,000.00 4,00,000.00

1,73,00,000.00 7,00,000.00 10,00,000.00 98,62,936.62 20,000.00 16,00,000.00 3,04,82,936.62

* All the values are subject Change. All the values are just estimation.

Year 2 Estimated P & L Account * Particulars Raw Materials Salary Electricity Fuel Maintenance Insurance Interest Depreciation Preliminary Exps Written Off Tax @ 30% PAT Amount Particulars Amount 5,47,35,102.63 3,21,64,571.84 Sales 36,24,000.00 8,26,000.00 5,50,000.00 1,50,000.00 10,00,000.00 12,25,000.00 18,58,000.00 4,00,000.00 38,81,259.24 90,56,271.55 5,47,35,102.63 5,47,35,102.63

Year 2 - Balance Sheet * Liability Owners Capital Venture Capital 11% redeemable Debenture 15% Term Loan Amount Asset 1,35,00,000.00 25,20,000.00 12,80,000.00 1,73,00,000.00 18,58,000.00 Amount 30,00,000.00 Floating Hut 1,00,00,000.00 Furniture 50,00,000.00 40,00,000.00 Motor Vehicle Less: Accumulated Depreciation Current Assets Inventory Cash Preliminary Exps Less: Written Off 3,10,56,271.55 16,00,000.00 4,00,000.00

1,54,42,000.00 10,00,000.00 32,00,000.00 1,01,52,271.55 62,000.00 12,00,000.00 3,10,56,271.55

Surplus

90,56,271.55 Investment

* All the values are subject Change. All the values are just estimation.

Year 3 Estimated P & L Account * Particulars Raw Materials Salary Electricity Fuel Maintenance Insurance Interest Depreciation Preliminary Exps Written Off Tax @ 30% PAT Amount Particulars Amount 6,45,87,421.11 3,76,92,894.77 Sales 48,02,400.00 9,49,900.00 6,16,000.00 1,50,000.00 10,00,000.00 11,50,000.00 16,46,600.00 4,00,000.00 48,53,887.90 1,13,25,738.43 6,45,87,421.11 6,45,87,421.11

Year 3 - Balance Sheet * Liability Owners Capital Venture Capital 11% redeemable Debenture 15% Term Loan Amount Asset 1,21,50,000.00 22,68,000.00 10,24,000.00 1,54,42,000.00 16,46,600.00 23,16,066.88 1,61,11,466.88 27,51,673.55 32,00,000.00 96,00,598.00 3,62,000.00 12,00,000.00 4,00,000.00 8,00,000.00 3,28,25,738.43 Amount 30,00,000.00 Floating Hut 1,00,00,000.00 Furniture 50,00,000.00 35,00,000.00 Motor Vehicle Less: Accumulated Depreciation Investment Current Assets Inventory Cash & Bank Preliminary Exps Less: Written Off 3,28,25,738.43

Surplus

1,13,25,738.43 WIP

* All the values are subject Change. All the values are just estimation.

Year 4 Estimated P & L Account * Particulars Raw Materials Salary Electricity Fuel Maintenance Insurance Interest Depreciation Preliminary Exps Written Off Tax @ 30% PAT Amount Particulars Amount 7,42,75,534.27 4,42,45,848.99 Sales 48,02,400.00 10,92,385.00 7,02,240.00 1,50,000.00 10,00,000.00 10,75,000.00 14,61,460.00 4,00,000.00 58,03,860.08 1,35,42,340.20 7,42,75,534.27 7,42,75,534.27

Year 4 - Balance Sheet * Liability Owners Capital Venture Capital 11% redeemable Debenture 15% Term Loan Amount Asset 1,09,35,000.00 20,41,200.00 8,19,200.00 1,37,95,400.00 14,61,460.00 4,15,442.64 1,67,49,382.64 46,41,783.55 34,54,076.00 86,01,098.00 6,96,000.00 8,00,000.00 4,00,000.00 4,00,000.00 3,45,42,340.20 Amount 30,00,000.00 Floating Hut 1,00,00,000.00 Furniture 50,00,000.00 30,00,000.00 Motor Vehicle Less: Accumulated Depreciation Investment Current Assets Inventory Cash & Bank Preliminary Exps Less: Written Off 3,45,42,340.20

Surplus

1,35,42,340.20 WIP

* All the values are subject Change. All the values are just estimation.

Year 5 Estimated P & L Account * Particulars Raw Materials Salary Electricity Fuel Maintainance Insurance Interest Depreciation Preliminary Exps Written Off Tax @ 30% PAT Amount Particulars Amount 8,91,30,641.13 5,40,68,420.71 Sales 52,99,440.00 11,01,124.08 7,72,464.00 1,50,000.00 10,00,000.00 10,00,000.00 12,98,930.00 4,00,000.00 72,12,078.70 1,68,28,183.64 8,91,30,641.13 8,91,30,641.13

Year 5 - Balance Sheet * Liability Owners Capital Venture Capital 11% redeemable Debenture 15% Term Loan Amount Asset 98,41,500.00 18,37,080.00 6,55,360.00 1,23,33,940.00 12,98,930.00 63,62,704.08 1,73,97,714.08 62,66,964.55 33,66,407.00 86,01,098.00 16,96,000.00 4,00,000.00 4,00,000.00 3,73,28,183.64 Amount 30,00,000.00 Floating Hut 1,00,00,000.00 50,00,000.00 Furniture

Motor Vehicle 25,00,000.00 Less: Accumulated Depreciation 1,68,28,183.64 WIP Investment Current Assets Inventory Cash & Bank Preliminary Exps Less: Written Off 3,73,28,183.64

Surplus

* All the values are subject Change. All the values are just estimation.

Decision Criteria

NPV Net Present Value:

PAT 82,62,936.62 93,36,271.55 1,16,05,738.43 1,38,22,340.20 1,71,08,183.64 Depreciation Preliminary TOTAL Cost of Expenses CASH FLOW Capital 21,00,000.00 4,00,000.00 1,07,62,936.62 18 18,58,000.00 16,46,600.00 14,61,460.00 12,98,930.00 4,00,000.00 4,00,000.00 4,00,000.00 4,00,000.00 1,15,94,271.55 1,36,52,338.43 1,56,83,800.20 1,88,07,113.64 18 18 18 18 PVIF 0.847 0.718 0.609 0.516 0.437 PV of Cash Flow 91,16,207.32 83,24,686.97 83,14,274.11 80,92,840.90 82,18,708.66

TOTAL PRESENT VALUE OF CASH FLOW 4,20,66,717.96

NPV = PV of Cash Inflow - PV of Cash outflow PV of Cash Inflow 4,20,66,717.96 PV of Cash outflow 2,30,00,000.00

NPV = 1,90,66,717.96