Project Report: Establishing a Copier

Printing Business

Prepared by CA Pavan Goud Alagani

Date: 20th May 2024

Table of Contents
1. PROJECT AT A GLANCE ......................................................................................................................... 3
2. Executive Summary .............................................................................................................................. 4
3. Business overview ................................................................................................................................ 5
3.1 Business Description .................................................................................................................... 5
3.2 Vision and Mission ...................................................................................................................... 7
4. Market Analysis .................................................................................................................................... 8
5. Services Offered ................................................................................................................................. 10
6. Financial Plan ...................................................................................................................................... 12
6.1 Balance sheet ............................................................................................................................. 12
6.2 Profit and Loss Statement .......................................................................................................... 13
6.3 Ratios .......................................................................................................................................... 14
6.4 Repayment schedule .................................................................................................................. 14
7. Risk Analysis ....................................................................................................................................... 15
7.1 Market Risks ............................................................................................................................... 15
7.2 Operational Risks ....................................................................................................................... 15
7.3 Financial Risks............................................................................................................................. 16
8. Conclusion .......................................................................................................................................... 17
 1. PROJECT AT A GLANCE

1. Name of the Entrepreneur : Chippa Srisailam

2. Constitution (Legal Status) : SOLE PROPRIETOR

3. Unit Address : 2-1-332/3, shop no 3 opposite, Nallakunta,

Hyderabad

4. Product and By Product : Document Services (Photocopying, Printing,

Scanning, Binding, Lamination)

5. Name of the Business : SRI SAI XEROX

6. Cost of Project : ₹13.00 Lakhs

7. Means of Finance: : Term Loan: ₹10.00 Lakhs

Own Capital: ₹3.00 Lakhs

8. Debt Service Coverage Ratio : 2.97

9. Pay Back Period : 5 Years

10. Project Implementation Period : 1-2 Months

11. Break Even Point : 29%

12. Employment : 2 Persons

13. Power Requirement : 5 KWH

14. Major Raw Materials : Paper, Ink, Toner, Binding Materials

15. Estimated Annual Turnover (Max Capacity) : ₹30.00 Lakhs

 2. Executive Summary

The copier printing business venture aims to capitalize on the growing demand for printing
services in the local area. With an initial investment of 10 lakhs, the business endeavors to
provide high-quality printing solutions to cater to the diverse needs of businesses, educational
institutions, and individuals.

Market Opportunity:

Market research indicates a consistent demand for printing services driven by various factors
including businesses requiring marketing materials, students needing project submissions, and
individuals seeking personalized prints for events and occasions. This demand presents a
lucrative opportunity for the copier printing business to establish a strong presence and capture
a significant market share.

Business Objectives:

The primary objective of the copier printing business is to provide efficient, affordable, and
high-quality printing solutions while ensuring utmost customer satisfaction. By focusing on
delivering superior service, maintaining competitive pricing, and adapting to evolving customer
needs, the business aims to build long-term relationships with clients and foster brand loyalty.

Strategies and Differentiation:

To differentiate itself in the competitive landscape, the business will prioritize aspects such as:

 Quality: Ensuring top-notch print quality and attention to detail in every job.
 Service: Offering personalized assistance and quick turnaround times to meet urgent
printing requirements.
 Innovation: Staying abreast of technological advancements in the printing industry to
offer cutting-edge solutions.
 Customer Experience: Providing a seamless and hassle-free experience from order
placement to delivery, backed by exceptional customer service.

Financial Viability:

The initial investment of 13 lakhs will be allocated strategically towards procuring state-of-the-
art copier machines, securing a prime commercial space, purchasing necessary consumables,
and implementing targeted marketing campaigns. Financial projections indicate a positive
trajectory, with anticipated sales of 15 lakhs in the first year and a projected profit of 3 lakhs.
The business aims to achieve break-even within the first six months of operation, with a robust
ROI of approximately 30% in the inaugural year.
 3. Business overview
3.1 Business Description

Overview

Sri Sai Xerox is a newly established printing solutions provider located in the vibrant
neighborhood of Nallakunta, Hyderabad. Founded by Chippa Srisailam the business aims to
address the growing demand for high-quality photocopying and printing services in the area.
With a focus on excellence, convenience, and affordability, Sri Sai Xerox endeavors to become
the go-to destination for individuals, students, businesses, and educational institutions seeking
reliable printing solutions.

Core Services

Sri Sai Xerox offers a comprehensive range of printing services to meet diverse customer needs:

 Photocopying: Providing both black & white and color photocopying services with fast
turnaround times and exceptional quality.
 Printing: Offering high-quality printing services for documents, flyers, brochures,
posters, presentations, and more, utilizing advanced printing technology for crisp and
vibrant output.
 Scanning: Efficient and accurate scanning services for documents and photos,
converting hard copies into digital formats for easy storage and sharing.
 Binding and Lamination: Professional finishing services, including binding and
lamination, to enhance the durability and presentation of documents, reports, and
presentations.
 Stationery Sales: A curated selection of stationery items, including notebooks, pens,
folders, and other office essentials, catering to the needs of students and professionals.

Unique Value Proposition

What sets Sri Sai Xerox apart from its competitors is its unwavering commitment to:

 Quality: Delivering superior printing solutions with attention to detail and precision,
ensuring customer satisfaction with every job.
 Convenience: Located in the heart of Nallakunta, Sri Sai Xerox offers easy accessibility
and a convenient location for customers, whether for quick walk-in services or
scheduled appointments.
 Affordability: Providing competitive pricing without compromising on quality, making
printing services accessible to a wide range of customers, including students, small
businesses, and individuals.
  Customer Service: Focusing on exceptional customer service, Sri Sai Xerox strives to
build lasting relationships with its customers by understanding their needs and
delivering personalized solutions.

Growth Strategy

With a strong foundation built on quality, convenience, and customer satisfaction, Sri Sai Xerox
aims to expand its presence and reach new heights of success. The business plans to achieve
this through:

 Continuous Improvement: Investing in state-of-the-art equipment and technology

upgrades to enhance efficiency, productivity, and quality of service.
 Strategic Marketing: Implementing targeted marketing campaigns and promotional
activities to increase brand awareness, attract new customers, and retain existing ones.
 Diversification: Exploring opportunities to diversify its service offerings, such as graphic
design services, digital printing, and large-format printing, to meet evolving customer
demands.
 Community Engagement: Engaging with the local community through sponsorships,
partnerships, and participation in events to foster goodwill, build brand loyalty, and
contribute to the community's growth and development.

Commitment to Sustainability

Sri Sai Xerox is committed to operating in an environmentally responsible manner by:

 Promoting the use of eco-friendly paper and ink options to minimize environmental
impact.
 Implementing recycling programs for paper waste and consumables to reduce waste
and promote sustainability.
 Educating customers about sustainable printing practices and encouraging them to opt
for digital formats whenever possible to conserve resources and reduce carbon
footprint.

Vision for the Future

As Sri Sai Xerox looks to the future, it envisions becoming a trusted partner for all printing
needs, known for its reliability, innovation, and commitment to excellence. By staying true to its
core values and continuously adapting to meet the changing needs of its customers and the
industry, Sri Sai Xerox aims to achieve long-term success and become a pillar of the Nallakunta
community.
3.2 Vision and Mission

Vision

At Sri Sai Xerox, our vision is to become the leading printing solutions provider in Nallakunta,
Hyderabad, renowned for our commitment to excellence, innovation, and customer
satisfaction. We aspire to set the standard for quality and reliability in the printing industry,
empowering individuals, businesses, and institutions to bring their ideas to life through our
cutting-edge services and personalized solutions.

Mission

Our mission at Sri Sai Xerox is to deliver exceptional printing services that exceed customer
expectations and empower them to achieve their goals. We are dedicated to providing
innovative, reliable, and affordable printing solutions tailored to meet the unique needs of each
customer. Through a combination of advanced technology, skilled craftsmanship, and
unparalleled customer service, we strive to make printing easy, convenient, and accessible to
all, thereby enhancing the success and satisfaction of our valued customers.
 4. Market Analysis

Target Market

Our target market encompasses a diverse range of customers in Nallakunta, Hyderabad,

including:

 Students: From nearby schools, colleges, and coaching centers who require
photocopying and printing services for study materials, projects, and assignments.
 Local Businesses: Small and medium-sized enterprises (SMEs) in the area needing
printing services for marketing materials, business documents, and presentations.
 Educational Institutions: Schools, colleges, and training institutes seeking bulk
photocopying and printing services for exams, administrative tasks, and educational
materials.
 Government Offices: Local government agencies requiring documentation services for
administrative purposes and official communications.
 General Public: Individuals in the community needing printing services for personal
documents, resumes, invitations, and other miscellaneous needs.

Market Need

The market demand for photocopying and printing services in Nallakunta arises from various
factors:

 Educational Requirements: Students and educational institutions require photocopying

and printing services for study materials, assignments, exams, and administrative tasks.
 Business Documentation: Local businesses need printing services for marketing
materials, business documents, reports, presentations, and other administrative
purposes.
 Administrative Needs: Government offices and agencies require photocopying and
printing services for official communications, documentation, and record-keeping.
 Personal Use: Individuals in the community require printing services for personal
documents, resumes, invitations, event posters, and other miscellaneous printing
needs.
Market Trends

Several trends shape the photocopying and printing industry in Nallakunta:

 Digital Transformation: Despite the increasing digitization of documents, there remains

a consistent demand for physical copies for legal, educational, and formal
documentation purposes.
 Customization: There is a growing demand for customized printing services, including
personalized stationery, branded business materials, and customized study aids.
 Quick Turnaround: Customers increasingly value services that offer fast and efficient
turnaround times, emphasizing the importance of modern, high-speed equipment and
streamlined service processes.

Competitive Landscape

The competitive landscape in Nallakunta includes:

 Local Copy Shops: Small independent copy shops offering personalized services and
catering to the immediate needs of the community.
 Large Retail Chains: Chain stores offering a wide range of printing services, including
photocopying, printing, scanning, and binding, often at competitive prices.
 Online Printing Services: Digital platforms offering convenient online ordering and
delivery options for printing services, appealing to customers seeking quick and hassle-
free solutions.

SWOT Analysis

Strengths:

 Quality Service: Focus on delivering high-quality printing solutions tailored to meet

customer needs.
 Convenience: Prime location in Nallakunta, offering easy accessibility and convenience
for customers.
 Customer Focus: Personalized service and attention to customer needs, fostering strong
customer relationships.

Weaknesses:

 Limited Scale: As a new business, limited resources and capacity may impact the ability
to handle large volumes of orders initially.
 Brand Awareness: Building brand recognition and establishing a reputation in a
competitive market may take time and effort.
Opportunities:

 Market Growth: Growing demand for printing services in educational, business, and
personal sectors presents opportunities for expansion and increased market share.
 Diversification: Opportunity to expand service offerings, such as graphic design, digital
printing, and promotional products, to meet evolving customer needs.

Threats:

 Competition: Intense competition from existing copy shops, retail chains, and online
printing services may pose a challenge to market penetration and profitability.
 Technological Advances: Rapid advancements in printing technology may require
frequent upgrades to equipment and software to remain competitive.

5. Services Offered

Photocopying

Our photocopying services are available in both black & white and color options, utilizing state-
of-the-art equipment to ensure crisp, clear, and accurate reproductions of documents, images,
and graphics. Whether it's a single page or bulk copies, we guarantee fast and efficient service
to meet urgent deadlines and customer requirements. Our photocopying services cater to a
wide range of needs, including study materials, business documents, presentations, legal
documents, and more.

Printing

We offer professional printing services for a variety of purposes, including documents, flyers,
brochures, posters, presentations, and promotional materials. Using advanced printing
technology and high-quality materials, we ensure vibrant colors, sharp images, and professional
finishes for all printing projects. Whether it's a small print run or large-scale production, we can
handle orders of any size with precision and efficiency, delivering exceptional results that
exceed customer expectations.

Scanning

Our scanning services enable customers to digitize their documents, photos, and artwork with
ease and accuracy. We utilize high-resolution scanners to capture intricate details and maintain
the integrity of the original materials, ensuring optimal clarity and quality in digital format.
Whether it's archiving important documents, creating digital backups, or sharing digital copies
electronically, our scanning services provide a convenient and reliable solution for preserving
and sharing information.

Binding and Lamination

For professional presentation and durability, we offer binding and lamination services to
enhance the appearance and longevity of documents, reports, presentations, and projects. Our
binding options include comb binding, spiral binding, and thermal binding, providing a secure
and polished finish for documents of all sizes. Additionally, our lamination services offer
protection against wear, tear, and moisture damage, ensuring that documents remain pristine
and professional-looking for extended periods.

Stationery Sales

In addition to our printing services, we also offer a selection of stationery items for the
convenience of our customers. Our stationery sales include notebooks, pens, pencils, folders,
binders, and other office essentials, catering to the needs of students, professionals, and
businesses. With a focus on quality, functionality, and affordability, our stationery products
complement our printing services, providing customers with everything they need to stay
organized and productive.
 6. Financial Plan
6.1 Balance sheet

Balance sheet of M/s.SRI SAI XEROX as on year ending

PARTICULARS Year ended Year ended Year ended Year ended Year ended
31-03-2025 31-03-2026 31-03-2027 31-03-2028 31-03-2029
I EQUITY & LIABILITIES
SHAREHOLDER'S
1 FUNDS:
a. Share Capital 3,00,000 3,00,000 3,00,000 3,00,000 3,00,000
b
. Reserves & Surplus 3,07,036 3,73,236 4,46,056 5,26,158 6,14,270
NON-CURRENT
2 LIABILITIES:
a. Long Term Borrowings 8,37,731 6,58,472 4,60,441 2,41,674 -
Deferred Tax Liabilities
c. (Net) - - -
3 CURRENT LIABILITIES:
a. Short Term Borrowings

TOTAL 14,44,767 13,31,708 12,06,497 10,67,832 9,14,270

II ASSETS:
1 NON- CURRENT ASSETS
a. Fixed Assets 10,03,000 9,03,000 8,03,000 7,03,000 6,03,000
(i) Tangible Assets
b Long Term Loans &
. Advances - - - -

2 CURRENT ASSETS
Inventories 3,41,767 3,08,708 2,58,497 1,90,332 1,13,070
Trade Receivables
Cash & Cash Equivalents 1,00,000 1,20,000 1,45,000 1,74,500 1,98,200
Short Term Loans &
Advances - - -

TOTAL 14,44,767 13,31,708 12,06,497 10,67,832 9,14,270

6.2 Profit and Loss Statement

Profit and Loss statement for the projected financial years

Year
PARTICULARS Year ended Year ended Year ended Year ended ended
31-03-2025 31-03-2026 31-03-2027 31-03-2028 31-03-2029
Revenue From Operations 12,50,000 13,75,000 15,12,500 16,63,750 18,30,125
Other Income

Total Revenue (I+II) 12,50,000 13,75,000 15,12,500 16,63,750 18,30,125

EXPENSES:
Cost of Material Consumed 1,20,000 1,32,000 1,45,200 1,59,720 1,75,692
Salaries 3,60,000 3,96,000 4,35,600 4,79,160 5,27,076
Utilities 36,000 39,600 43,560 47,916 52,708
Rent 72,000 79,200 87,120 95,832 1,05,415
Depreciation 1,00,000 1,00,000 1,00,000 1,00,000 1,00,000
EMI 2,54,964 2,54,964 2,54,964 2,54,964 2,54,964

Total Expenses 9,42,964 10,01,764 10,66,444 11,37,592 12,15,855

Profit Before Exceptional &

Extraordinary
Items & Tax (III-IV) 3,07,036 3,73,236 4,46,056 5,26,158 6,14,270
Exceptional Items 0 0 0 0

Profit Before Extraordinary 3,07,036 3,73,236 4,46,056 5,26,158 6,14,270

Items And Tax (V-VI)

Extraordinary Items

PROFIT BEFORE TAX (VII-VIII) 3,07,036 3,73,236 4,46,056 5,26,158 6,14,270

TAX EXPENSE:
Current Tax 0 0 0 0
Deferred Tax 0 0 0 0
Income tax for Earlier years .
Profit/ (Loss) For the Period
From 3,07,036 3,73,236 4,46,056 5,26,158 6,14,270

PROFIT (LOSS) FOR THE

PERIOD (XI+XIV) 3,07,036 3,73,236 4,46,056 5,26,158 6,14,270
Earnings Per Equity Share:
1. Basic
2. Diluted 31 37 45 53 61
6.3 Ratios

Particulars 1ST 2ND 3RD 4TH 5TH

YEAR YEAR YEAR YEAR YEAR
DEBT/EQUITY 58% 49% 38% 23% 0%

OP. PROFIT/INCOME 25% 27% 29% 32% 34%

PAT/INCOME 24.56% 27.14% 29.49% 31.62% 33.56%

RETURN ON TOTAL ASSETS 21.25% 28.03% 36.97% 49.27% 67.19%

RONW 50.58% 55.44% 59.79% 63.69% 67.19%

DEBT SERVICE CONVERAGE

(PAT BEFORE INTEREST/ INTEREST) 7.81 5.71 6.12 6.49 6.83

EPS (RS.) 30.70 37.32 44.61 52.62 61.43

COMPOUNDED ANNUAL GROWTH 0.00 15% 16% 16% 17%

RATE

6.4 Repayment schedule

Year Principle Interest EMI Balance

- 10,00,000.00
1.00 1,62,268.00 92,629.00 2,54,964.00 8,37,665.00
2.00 1,79,259.00 75,704.00 2,54,964.00 6,58,405.00
3.00 1,98,030.00 56,931.00 2,54,964.00 4,60,372.00
4.00 2,18,766.00 36,197.00 2,54,964.00 2,41,605.00
5.00 2,41,674.00 13,289.00 2,54,964.00 -
 7. Risk Analysis

7.1 Market Risks

 Competition:

Risk: High competition from other local copy and print shops, as well as from larger,
well-established chains.
Mitigation: Differentiating through superior customer service, competitive pricing, and
offering additional services like binding, lamination, and stationery sales. Building a loyal
customer base through memberships and loyalty programs.

 Market Demand:

Risk: Fluctuations in demand for photocopying and printing services, especially with the
increasing digitization of documents.
Mitigation: Diversifying services to include digital printing, scanning, and other related
services to cater to a broader market. Regular market research to stay updated with
industry trends and customer preferences.

 Technological Advancements:

Risk: Rapid advancements in printing technology may render existing equipment

obsolete.
Mitigation: Staying informed about industry trends and investing in scalable technology
solutions that can be upgraded as needed. Establishing relationships with suppliers for
better trade-in or upgrade options.

 Economic Conditions:

Risk: Economic downturns can lead to reduced spending on non-essential services,

affecting revenue.
Mitigation: Maintaining a reserve fund to manage during economic downturns and
focusing on cost-effective marketing strategies to retain and attract customers even
during tough economic times.

7.2 Operational Risks

 Equipment Failure:

Risk: Downtime due to equipment malfunction or failure, leading to loss of business and
customer dissatisfaction.
 Mitigation: Regular maintenance and servicing of equipment to ensure they are in good
working condition. Keeping backup equipment or establishing a quick repair service
agreement with suppliers.
 Supply Chain Disruptions:

Risk: Disruptions in the supply of essential materials like paper, ink, and toner can halt
operations.
Mitigation: Establishing relationships with multiple suppliers to ensure a steady supply
of materials. Keeping a buffer stock of essential supplies to manage short-term
disruptions.

 Employee Turnover:

Risk: High turnover rates can disrupt operations and lead to loss of institutional
knowledge.
Mitigation: Offering competitive salaries, benefits, and creating a positive work
environment to retain employees. Providing training and development opportunities to
enhance employee satisfaction and loyalty.

 Legal and Regulatory Compliance:

Risk: Non-compliance with local regulations can lead to fines and legal issues.
Mitigation: Staying informed about relevant regulations and ensuring all business
operations comply with legal requirements. Regularly consulting with legal experts to
stay updated.

7.3 Financial Risks

 Cash Flow Management:

Risk: Insufficient cash flow to cover operational expenses, leading to potential business
closure.
Mitigation: Implementing effective cash flow management strategies, such as timely
invoicing and following up on payments. Maintaining a cash reserve for unforeseen
expenses.

 Loan Repayment:

Risk: Inability to meet loan repayment schedules, leading to penalties or increased

interest rates.
Mitigation: Careful financial planning and maintaining a detailed budget to ensure loan
repayments are prioritized. Exploring options for loan restructuring if financial
difficulties arise.

 Interest Rate Fluctuations:

 Risk: Changes in interest rates can increase the cost of borrowing, affecting profitability.
Mitigation: Opting for fixed-rate loans where possible to protect against interest rate
fluctuations. Regularly reviewing loan agreements and refinancing options.

 Credit Risk:

Risk: Risk of customers defaulting on payments, impacting revenue.

Mitigation: Implementing credit checks for larger orders and requiring partial or full
upfront payments for new customers. Offering multiple payment options to make it
easier for customers to pay on time.

8. Conclusion

Sri Sai Xerox, located in Nallakunta, Hyderabad, is poised to become a prominent player in the
local photocopying and printing services market. The business plan outlines a comprehensive
strategy for launching and sustaining the business, covering all critical aspects from market
analysis to financial planning.

Key Highlights:

Business Overview: With a strategic location and a broad range of services including
photocopying, printing, scanning, binding, lamination, and stationery sales, Sri Sai Xerox is well-
positioned to meet the diverse needs of its target market.

Market Analysis: A thorough examination of market needs, trends, and competitive landscape
reveals a significant demand for reliable, high-quality photocopying and printing services in the
area. By leveraging these insights, Sri Sai Xerox can effectively capture market share and build a
loyal customer base.

Financial Plan: Detailed projections indicate a strong financial foundation with planned
expenditures, revenue projections, and profit analysis. The business is supported by a robust
capital structure, including a bank loan under the PMEGP scheme and a manageable interest
payment schedule.

Risk Analysis: Identifying and mitigating potential risks related to market fluctuations,
operational challenges, and financial uncertainties ensures the business is prepared to handle
unexpected challenges and sustain growth.
Future Outlook:

With a clear vision and mission, Sri Sai Xerox is dedicated to delivering high-quality, reliable
services to its customers. The strategic planning and detailed financial projections lay a solid
foundation for sustainable growth and profitability. By continuously adapting to market trends
and customer needs, Sri Sai Xerox is well-equipped to achieve long-term success.

This business plan demonstrates a well-rounded approach to launching and managing Sri Sai
Xerox, emphasizing strategic planning, financial prudence, and proactive risk management.
With committed execution, Sri Sai Xerox can thrive in the competitive market and establish
itself as a trusted provider of photocopying and printing services in Hyderabad.