Costs and Revenue associated with plant

Year1 Year2
Total cost
Baddi 115 15.75
Ankleshwar 127 17.90
Nagpur 109.5 15.25
Transport 111 146.30
Revenue
Revenue 180 275
EBT/PBT -282.5 79.8
Payback -282.5 -202.7
NPV -245.65 -185.31
Total value at To (Tzero) year
We have taken risk free rate as 15% to bring down net profit to
We assumed that all investment and revenue generation happens a
All costs are in 100000 INR and All weight are in 100 Tonnes
e associated with plant
Year3 Year4 Year5

16.61 17.60 18.75

18.94 20.13 21.49
16.11 17.10 18.25
182.71 238.25 304.53

400 600 775

165.63 306.92 411.98
-37.07 269.85 681.83
-76.41 99.07 303.90
ero) year 303.90
5% to bring down net profit to To value
and revenue generation happens at T1
R and All weight are in 100 Tonnes
 Costs associated with plant
Place Setup Cost (One time) Opp cost (recurring per year)
Baddi 100 10
Ankleshwar 110 11
Nagpur 95 9.5
305 30.5
Maintainance Cost
Place Year1 Year2 Year3 Year4 Year5
Baddi 5.00 5.75 6.61 7.60 8.75
Ankleshwar 6.00 6.90 7.94 9.13 10.49
Nagpur 5.00 5.75 6.61 7.60 8.75
16.00 18.40 21.16 24.33 27.98

Demand forcast(growing @15% per year)

Year1 11 12 9 10 8
Year2 12.65 13.80 10.35 11.50 9.20
Year3 14.55 15.87 11.90 13.23 10.58
Year4 16.73 18.25 13.69 15.21 12.17
Year5 19.24 20.99 15.74 17.49 13.99
Below are Rounded off values of demand forecasted above
Year1 11 12 9 10 8
Year2 13 14 11 12 10
Year3 15 16 12 14 11
Year4 17 19 14 16 13
Year5 20 21 16 18 14

All costs are in 100000 INR and All weight are in 100 Tonnes
 Transportation and Raw Material cost Year 5
Transportation and Raw Material cost (Train)
Delhi Mumbai Kolkata Bangalore Chennai
Baddi 4.39 2.93 9999 5.86 1.46
Ankleshwar 2.93 11.71 7.32 4.39 5.86
Nagpur 5.86 7.32 8.78 7.32 7.32

Quantiy Supplied to different cities from 3 Plants

Delhi Mumbai Kolkata Bangalore Chennai Supply Capacity
Baddi 0 21 0 0 9 30 30
Ankleshwar 20 0 0 18 0 38 40
Nagpur 0 0 16 0 5 21 30
Demand Met 20 21 16 18 14
Real Demand 20 21 16 18 14
Total Transportation cost Year 5 304.5328

All costs are in 100000 INR and All weight are in 100 Tonn
aterial cost Year 5
Transportation and Raw Material cost (Road)
Delhi Mumbai Kolkata Bangalore Chennai
Baddi 7.32 5.86 9999 9999 5.86
Ankleshwar 5.86 8.78 10.25 8.78 4.39
Nagpur 9999 8.78 4.39 9999 4.39

Minimum cost matrix to different location from all 3 plants

Delhi Mumbai Kolkata Bangalore Chennai
Baddi 4.39 2.93 9999 5.86 1.46
Ankleshwar 2.93 8.78 7.32 4.39 4.39
Nagpur 5.86 7.32 4.39 7.32 4.39

weight are in 100 Tonnes

 Transportation and Raw Material cost Year 4
Transportation and Raw Material cost (Train)
Delhi Mumbai Kolkata Bangalore Chennai
Baddi 3.99 2.66 9999 5.32 1.33
Ankleshwar 2.66 10.65 6.66 3.99 5.32
Nagpur 5.32 6.66 7.99 6.66 6.66

Quantiy Supplied to different cities from 3 Plants

Delhi Mumbai Kolkata Bangalore Chennai Supply Capacity
Baddi 0 19 0 0 11 30 30
Ankleshwar 17 0 0 16 2 35 40
Nagpur 0 0 14 0 0 14 30
Demand Met 17 19 14 16 13
Real Demand 17 19 14 16 13
Total Transportation cost Year 4 238.249

All costs are in 100000 INR and All weight are in 100 Tonn
aterial cost Year 4
Transportation and Raw Material cost (Road)
Delhi Mumbai Kolkata Bangalore Chennai
Baddi 6.655 5.324 9999 9999 5.324
Ankleshwar 5.324 7.986 9.317 7.986 3.993
Nagpur 9999 7.986 3.993 9999 3.993

Minimum cost matrix to different location from all 3 plants

Delhi Mumbai Kolkata Bangalore Chennai
Baddi 3.993 2.662 9999 5.324 1.331
Ankleshwar 2.662 7.986 6.655 3.993 3.993
Nagpur 5.324 6.655 3.993 6.655 3.993

weight are in 100 Tonnes

 Transportation and Raw Material cost Year 3
Transportation and Raw Material cost (Train)
Delhi Mumbai Kolkata Bangalore Chennai
Baddi 3.63 2.42 9999 4.84 1.21
Ankleshwar 2.42 9.68 6.05 3.63 4.84
Nagpur 4.84 6.05 7.26 6.05 6.05

Quantiy Supplied to different cities from 3 Plants

Delhi Mumbai Kolkata Bangalore Chennai Supply Capacity
Baddi 0 16 0 0 11 27 30
Ankleshwar 15 0 0 14 0 29 40
Nagpur 0 0 12 0 0 12 30
Demand Met 15 16 12 14 11
Real Demand 15 16 12 14 11
Total Transportation cost Year 3 182.71

All costs are in 100000 INR and All weight are in 100 Tonn
aterial cost Year 3
Transportation and Raw Material cost (Road)
Delhi Mumbai Kolkata Bangalore Chennai
Baddi 6.05 4.84 9999 9999 4.84
Ankleshwar 4.84 7.26 8.47 7.26 3.63
Nagpur 9999 7.26 3.63 9999 3.63

Minimum cost matrix to different location from all 3 plants

Delhi Mumbai Kolkata Bangalore Chennai
Baddi 3.63 2.42 9999 4.84 1.21
Ankleshwar 2.42 7.26 6.05 3.63 3.63
Nagpur 4.84 6.05 3.63 6.05 3.63

weight are in 100 Tonnes

 Transportation and Raw Material cost Year 2
Transportation and Raw Material cost (Train)
Delhi Mumbai Kolkata Bangalore Chennai
Baddi 3.3 2.2 9999 4.4 1.1
Ankleshwar 2.2 8.8 5.5 3.3 4.4
Nagpur 4.4 5.5 6.6 5.5 5.5

Quantiy Supplied to different cities from 3 Plants

Delhi Mumbai Kolkata Bangalore Chennai Supply Capacity
Baddi 0 14 0 0 10 24 30
Ankleshwar 13 0 0 12 0 25 40
Nagpur 0 0 11 0 0 11 30
Demand Met 13 14 11 12 10
Real Demand 13 14 11 12 10
Total Transportation cost Year 2 146.3

All costs are in 100000 INR and All weight are in 100 Tonn
aterial cost Year 2
Transportation and Raw Material cost (Road)
Delhi Mumbai Kolkata Bangalore Chennai
Baddi 5.5 4.4 9999 9999 4.4
Ankleshwar 4.4 6.6 7.7 6.6 3.3
Nagpur 9999 6.6 3.3 9999 3.3

Minimum cost matrix to different location from all 3 plants

Delhi Mumbai Kolkata Bangalore Chennai
Baddi 3.3 2.2 9999 4.4 1.1
Ankleshwar 2.2 6.6 5.5 3.3 3.3
Nagpur 4.4 5.5 3.3 5.5 3.3

weight are in 100 Tonnes

 Transportation and Raw Material cost Year 1
Transportation and Raw Material cost (Train)
Delhi Mumbai Kolkata Bangalore Chennai
Baddi 3 2 99999 4 1
Ankleshwar 2 8 5 3 4
Nagpur 4 5 6 5 5

Quantiy Supplied to different cities from 3 Plants

Delhi Mumbai Kolkata Bangalore Chennai Supply Capacity
Baddi 0 12 0 0 8 20 30
Ankleshwar 11 0 0 10 0 21 40
Nagpur 0 0 9 0 0 9 30
Demand Met 11 12 9 10 8
Real Demand 11 12 9 10 8
Total Transportation cost Year 1 111

All costs are in 100000 INR and All weight are in 100 Tonn
aterial cost Year 1
Transportation and Raw Material cost (Road)
Delhi Mumbai Kolkata Bangalore Chennai
Baddi 5 4 9999 9999 4
Ankleshwar 4 6 7 6 3
Nagpur 9999 6 3 9999 3

Minimum cost matrix to different location from all 3 plants

Delhi Mumbai Kolkata Bangalore Chennai
Baddi 3 2 9999 4 1
Ankleshwar 2 6 5 3 3
Nagpur 4 5 3 5 3

weight are in 100 Tonnes