Rural Urban Population

75% 25%
1,125,000,000 375,000,000 1,500,000,000

Particulars Middle Class Rich Class Final Calc.

TAM 40% 35%
Population 150,000,000 131,250,000 281,250,000
Family 25,000,000 21,875,000 46,875,000
SAM 12% 15%
Population 18,000,000 19,687,500
Family 3,000,000 3,281,250 6,281,250
SOM 5% 7%
Population 900,000 1,378,125
Family 150,000 229,688 379,688
 1500000000
Rural Urban
65% 35%
975000000 525000000 1500000000

BPL Middle Class Rich Class

15.00% 50.00% 35%
78750000 262500000 183750000 525000000
 The total cost of project is estimated as below:
Sr. No Component Particulars Cost (Rs.Lakhs)
1 Building 600 sq. mtrs @ 8000 4800000.00
2 Other Asset Chair, Table, Almirah 500000.00
3 Packaging Expense - 100000.00
4 Contingencies - 50000.00
5 WC Margin (1 Year) - 10.00

Means of Finance
Partner's Contribution 2500000
Bank Loan 3000000

Raw Material Calculation

Particulars Duration Estimated Cost
Packaging 1 Month 50000
Working Expenses 1 Month 30000
Supply 1 Month 50000
Receivables 1 Month 400000
Payables 1 Month 150000

Manpower Requirements
Designation Number of pax. Salary
Labour (Packaging) 10 6000
Supervisor 1 10000
Storekeeper 1 8000
Total 12 24000
 Assumptions (Per year) Per unit
Revenues ₹ 1,000.00

Variable cost
Raw Material ₹ 15.00
Packaging Material ₹ 30.00
Transportation ₹ 20.00
Total Raw material
Salary 24000
Working Expense ₹ 30.00
Packaging Expense ₹ 50.00
Corporate Insurance ₹ 2.00
Advertisement ₹ 120,000.00
Total
Fixed Cost
Furnitures and fixtures
Interest On Loan 10%
Total fixed cost

Total
profit
Profit %
Year 1 Year 2 Year 3 Year 4 Year 5
₹ 15,187,500.00 ₹ 16,706,250.00 ₹ 20,047,500.00 ₹ 24,057,000.00 ₹ 28,868,400.00

₹ 1,500,000.00 ₹ 1,650,000.00 ₹ 1,650,000.00 ₹ 1,815,000.00 ₹ 1,815,000.00

₹ 3,000,000.00 ₹ 3,300,000.00 ₹ 3,300,000.00 ₹ 3,630,000.00 ₹ 3,630,000.00
₹ 2,000,000.00 ₹ 2,200,000.00 ₹ 2,200,000.00 ₹ 2,420,000.00 ₹ 2,420,000.00
₹ 6,500,000.00 ₹ 7,150,000.00 ₹ 7,150,000.00 ₹ 7,865,000.00 ₹ 7,865,000.00
₹ 288,000.00 ₹ 26,400.00 ₹ 316,800.00 ₹ 29,040.00 ₹ 348,480.00
₹ 3,000,000.00 ₹ 3,300,000.00 ₹ 3,630,000.00 ₹ 3,993,000.00 ₹ 4,392,300.00
₹ 5,000,000.00 ₹ 5,500,000.00 ₹ 6,050,000.00 ₹ 6,655,000.00 ₹ 7,320,500.00
₹ 200,000.00 ₹ 220,000.00 ₹ 242,000.00 ₹ 266,200.00 ₹ 292,820.00
₹ 120,000.00 ₹ 132,000.00 ₹ 132,000.00 ₹ 145,200.00 ₹ 145,200.00
₹ 8,608,000.00 ₹ 9,178,400.00 ₹ 10,370,800.00 ₹ 10,096,240.00 ₹ 11,407,880.00

₹ 450,000.00 ₹ 450,000.00 ₹ 450,000.00 ₹ 450,000.00 ₹ 450,000.00

₹ 475,740.00 ₹ 475,740.00 ₹ 475,740.00 ₹ 475,740.00 ₹ 475,740.00
₹ 925,740.00 ₹ 925,740.00 ₹ 925,740.00 ₹ 925,740.00 ₹ 925,740.00

₹ 16,033,740.00 ₹ 17,254,140.00 ₹ 18,446,540.00 ₹ 18,886,980.00 ₹ 20,198,620.00

-₹ 846,240.00 -₹ 547,890.00 ₹ 1,600,960.00 ₹ 5,170,020.00 ₹ 8,669,780.00
-6% -3% 8% 21% 30%
 Pessimistic Approach
-10%
Assumptions (Per year) Per unit Year 1
Revenues ₹ 1,000.00 ₹ 12,909,375.00

Variable cost
Raw Material ₹ 15.00 ₹ 1,500,000.00
Packaging Material ₹ 30.00 ₹ 3,000,000.00
Transportation ₹ 20.00 ₹ 2,000,000.00
Total Raw material ₹ 6,500,000.00
Salary 24000 ₹ 288,000.00
Working Expense ₹ 30.00 ₹ 3,000,000.00
Finished goods ₹ 35.00 ₹ 3,500,000.00
P&P EXPENSE ₹ 50.00 ₹ 5,000,000.00
Corporate Insurance ₹ 2.00 ₹ 200,000.00
Advertisement ₹ 120,000.00 ₹ 120,000.00
Total ₹ 12,108,000.00
Fixed Cost
Furnitures and fixtures ₹ 450,000.00
Interest On Loan 10% ₹ 475,740.00
Total fixed cost ₹ 925,740.00

Total ₹ 19,533,740.00
profit -₹ 6,624,365.00
Profit % -51%
 Optimistic Approach

Assumptions (Per year) Per unit

Revenues ₹ 1,000.00

Variable cost
Raw Material ₹ 15.00
Packaging Material ₹ 30.00
Transportation ₹ 20.00
Total Raw material
Salary 24000
Working Expense ₹ 30.00
Finished goods ₹ 35.00
P&P EXPENSE ₹ 50.00
Corporate Insurance ₹ 2.00
Advertisement ₹ 120,000.00
Total
Fixed Cost
Furnitures and fixtures
Interest On Loan 10%
Total fixed cost

Total
profit
Profit %
 Realistic Approach
10%
Year 1 Assumptions (Per year)
₹ 21,262,500.00 Revenues

Variable cost
₹ 1,500,000.00 Raw Material
₹ 3,000,000.00 Packaging Material
₹ 2,000,000.00 Transportation
₹ 6,500,000.00 Total Raw material
₹ 288,000.00 Salary
₹ 3,000,000.00 Working Expense
₹ 3,500,000.00 Finished goods
₹ 5,000,000.00 P&P EXPENSE
₹ 200,000.00 Corporate Insurance
₹ 120,000.00 Advertisement
₹ 12,108,000.00 Total
Fixed Cost
₹ 450,000.00 Furnitures and fixtures
₹ 475,740.00 Interest On Loan
₹ 925,740.00 Total fixed cost

₹ 19,533,740.00 Total
₹ 1,728,760.00 profit
8% Profit %
Per unit Year 1
₹ 1,000.00 ₹ 14,428,125.00

₹ 15.00 ₹ 1,500,000.00
₹ 30.00 ₹ 3,000,000.00
₹ 20.00 ₹ 2,000,000.00
₹ 6,500,000.00
24000 ₹ 288,000.00
₹ 30.00 ₹ 3,000,000.00
₹ 35.00 ₹ 3,500,000.00
₹ 50.00 ₹ 5,000,000.00
₹ 2.00 ₹ 200,000.00
₹ 120,000.00 ₹ 120,000.00
₹ 12,108,000.00

₹ 450,000.00
10% ₹ 475,740.00
₹ 925,740.00

₹ 19,533,740.00
-₹ 5,105,615.00
-35%