Group 1

• Chetan Mishra- K027

• Smit Talati- K051
• Hriday Vora- K053
• Dhairya Vyas-K054
• Nishit Desai-K059
• Ayush Rathore- K068
 Introduction
• Company Name - BEERLO
• Product – BEER with 0 sugar 0 calories
• Servings – 330 ml & 650ml
• Location – Mumbai
• Target Market – those who are intended toward healthy drinking and
sports activities
 Kingfisher
⮚ Kingfisher products:
• Beer
• whiskey
• vodka
• Zingaro
• UB Export
• London Pilsner
• Kalyani Black Label
• Bullet
• Peacock Cider
• Bintang Beer
• Pearl River Beer
• also in airlines: kingfisher airlines

⮚ Having operation in almost in every part of the world but mainly operates in UK France Spain Russia India
⮚ Revenue Generated : 50 billion INR
 Heineken
⮚ Heineken have its own subsidiaries which bring out different products such as:
• Whiskey
• Brandy
• Vodka
• Mixed drink
• Liqueur
• Tequila
• Gin
• Beer
⮚ Heineken was the major sponsor of UEFA Champions League and Rugby World Cup; major
sponsorship of Rugby Union had begun in Wales with the Welsh Premier Division competition
⮚ Heineken owns over 125 breweries in more than 70 countries
⮚ Total revenue generated: 1.4 billion INR
 Bira 91
⮚ Bira 91 variants
• Bira 91 White (a low bitterness wheat beer with alcohol content of 4%).
• Bira 91 Blonde (an extra hoppy craft lager).
• Bira 91 Light (a low-calorie lunchtime lager).
• Bira 91 Strong (a high intensity wheat beer with a higher percentage of alcohol content at 7%).
• The Bira 91 Indian Pale Ale (the first IPA brewed and bottled in India).
• Light and Strong.

⮚ Bira 91 available
• India, USA, UK, and Singapore, Hong Kong, Thailand, and UAE.

⮚ Revenue generated 2018-2019

• 1,883.13 (Rs. In Millions)
 DIAGEO
⮚ Diageo variants
• Whiskey
• Brandy
• Vodka
• Mixed drink
• Liqueur
• Tequila
• Gin
• Beer

⮚ Diageo available
• It operates in 180 country across five region North America, Europe, Asia Pacific, Africa, Latin
America, Caribbean.

⮚ Revenue generated 2019-2020

• 11.752 billion pounds
 Comparison

PRICE OF BEER ALCOHOL CONTENT

500 8
450 7
400 6
350 5
300 4
250 3
200 2
150 1
100 0

91
ER
LO

EN

EO
50

RA
SH
ER

EK

G
IA
FI

BI
BE

N
0

D
EI
G
IN
BEERLO KINGFISHER HEINEKEN BIRA 91 DIAGEO

H
K
PRICE (650ML) PRICE (330ML) ALCOHOL %
Target Market
Financial Statements Projections
Cost Sheet per Unit
Total Cost Sheet
Breakeven quantity, DOL and DFL
Income Statement
Balance Sheet
Cash Flow
 NPV
Cash inflow
Cash inflow after
Subtracting after subtracting Adding Cash inflow Final Cash
Year Cash in flow Depreciation subtraction Tax(18%) tax Depreciation after adding flow at 4.88%

1 50000000 2160000 47840000 8611200 39228800 2160000 41388800 43408573.44

2 60000000 2160000 57840000 10411200 47428800 2160000 49588800 54546759.63

3 70000000 2160000 67840000 12211200 55628800 2160000 57788800 66668657.88

4 80000000 2160000 77840000 14011200 63828800 2160000 65988800 79843753.57

5 90000000 2160000 87840000 15811200 72028800 2160000 74188800 94145971.18

338613715.7

NPV = 338613715.7-168731850
= 169881865.7
 Return on equity =

Cost of Debt (Kd )=

=0
Cost of Equity
Most startup businesses have insufficient free cash flow to consider paying dividends in the early stages of growth, and
therefore the investor will seek their return by aiming to sell their shares when the business is disposed of.
In these circumstances, the cost of equity can be simplified by using the compound annual growth rate (CAGR)
formula,
which can be stated as follows:
When using this formula the variables have the following meanings.
PV = Present value = Equity investment
FV = Future value = Value of investment at disposal
i = CAGR = Cost of equity
n = Number of years to disposal

Assuming that Beerlo is seeking to raise 22 Cr in return for 20% of its equity. It’s financial projections show
that at the end of 2 years, the business has grown and is estimated to be 121 Cr, with 10% growth.

PV = Equity investment = 22,00,00,000

FV = Value of investment = 20% x 121,00,00,000 = 24,20,00,000
n = Number of years = 2
Cost of equity = (FV / PV)(1 / n) - 1
Cost of equity = (24,20,00,000 / 22,00,00,000 )(1 / 2) - 1 = 0.0488= 4.88%

WACC= Ke = 4.88
Since Kd is zero
 REFERENCES
• https://dyvmwwyqozzzb.cloudfront.net/main/financials.pdf
• https://www.diageo.com/en/investors/reporting-centre/
• https://en.wikipedia.org/wiki/Heineken_brands
• https://www.theheinekencompany.com/age-gate/583
• https://www.kingfisher.com/content/dam/kingfisher/Corporate/Documents/I
nvestors/Annual-Reports/KF054-Book-LR-200625.pdf.downloadasset.pdf
• https://www.kingfisher.com/en/who-we-are/our-markets.html