Business Proposal Nishanjali Pvt Ltd

8/4/2019 Business Proposal Nishanjali Pvt Ltd

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ISHAN INSTITUTE OF MANAGEMENT AND TECHNOLOGY

Business Proposal R eport on

NISHANJALI PRIVATE LIMITED´

A business proposal report submitted to IIMT, Greater Noida as a partial

f ulf illment of f ull time Post Graduate

Diploma in Management

(HUMAN RESOURCE MANAGEMENT)

SUBMITTED TO: SUBMITTED BY:

Dr. D.K. Garg, ANJALI JAYADEV

Chairman, (HRR 3035) and

IIMT, Greater Noida NISHA JAI N

( HRR 3023)

ISHAN INSTITUTE OF MANAGEMENT AND TECHNOLOGY

1A, Knowledge Park-I, Greater Noida, Distt: G.B. NAGAR (U.P.)

Website: www.ishanfamily.com, Email: [email protected]



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ACKNOWLEDGEMENT

³ Inspir ation leads to Dedication, Dedication leads to Accom plishment, Accom plishment

leads to Acknowledgement´. The satisfaction that accom plishes the successful com pletion of any wor k is when we say

thank you to the peo ple who made it possible, whose constant encour agement and guidance

has been a sour ce of inspir ation thr oughout the pre par ation of Business Pr o posal.

We would lik e to dedicate this wor k to our revered institute IIMT, Greater Noida where we

are getting the ex posure towar ds shaping our selves to become future business manager.

I ex press my sincere gr atitude to honor able Dr. D.K. GARG (Chairman) of IIMT, Greater

Noida f or their suppor t and guidance on the gr ound of which I have acquired a new field of

knowledge.

We tak e the o ppor tunity to ex press our hear tiest gr atitude to our respective faculty lecturer s,

parents and f r iends who have been constantly helping me in successful com pletion of the

pr oject.

Fir st of all we would thank Dr. D.K Garg, Chairman, Ishan Institute of Management and

Technology, f or giving us this o ppor tunity to acquaint us with the ideas of setting up a

business. In this business pr o posal, we have chosen ³ Nishan jali Tea house Pr ivate

Limited´.

The study has indeed helped me to ex plore more knowledgeable avenues related to my

Business and we are sure it will help in my future.



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DECLAR ATIO N

The ³Business Proposal R eport on Nishan jali Pr ivate Limited´ is the or iginal wor k done by

An jali Jayadev (HRR-3035) and Nisha Jain (HRR-3023). This is the pr o per ty of the Institute and

use of this re por t without pr ior permission of the Institute will be considered illegal and actionable.

Signature Signature

(An jali Jayadev) ( Nisha Jain)

Enr:- HRR -3035 Enr :- HRR-3023



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PURPOSE OF STUDY

The wor ld ar ound us is so com petitive where we have to im plement all our theoretical as well

as pr actical skills and knowledge. And as a management student, our aim is to star t a business

or manage a business in which we can astutely and successfully tak e all the business decisions

managing the nitty-gr itty of it. And f or the survival in this cut-thr oat com petition, the

per f ection in each and ever y aspect is ver y much required. You cannot move ahead in any

business without the basic insight of it.

The pur pose of this business pr o posal is to lear n how to im plement and

use theoretical knowledge by pr actically doing it in the real business wor ld.

Main pur pose of this business pr o posal can be listed down as below.-

Lear ning to im plement all the manager ial skills and qualities.

Correlating the theoretical knowledge with pr actical one.

Lear ning to manage the whole task and delegating the author ity in a fully fledged

manner.

Im pr oving thinking and analytical power.



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TABLE OF CONTENTS

S.No. Particulars Page No.

1. EXECUTIVE SUMMAR Y 6

2. LOGO AND ITS DESCR IPTIO N 7

3. MOTO, MISSIO N AND OBJECTIVE 8

4. COMPANY I NTR ODUCTIO N 9-18

5. MAR KET ANALYSIS 19-22

6. SWOT ANALYSIS 23-24

7. MAR KETI NG AND SALES STR ATEGY 25-27

8. MANAGEME NT SUMMAR Y 28

. PER SO NNEL PLAN 28

. FI NANCIAL PLAN AND ANALYSIS 28-31

. CO NCLUSIO N 32

Executive Summary



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Nishan jali is a new tear oom in Dar jeeling, the Queen of Hill Stations. Nishan jali Teahouse is

a newly established sho p managed by its owner s Nisha Jain and An jali Jayadev. Nisha Jainhas 3 year s of tr aining as a her balist and she is currently tr aining to be a nutr itionist and has

also wor k ed as a teatender in Assam; her knowledge of the health benefits of tea will help our mar k eting and sales eff or ts. An jali Jayadev has five year s of ex per ience managing a

successful boutique coff eehouse in Munnar, Ker ala.

Nishan jali will off er a full r ange of teas (hot and iced), as well as pastr ies, premium

chocolates, tea accessor ies, and loose teas f or taking home or giving as gifts. Nisha Jain is a

master tea tender, and An jali Jayadev has been lear ning pr o per brewing techniques f r om her

f or the last f our months. We will tr ain all of our tea tender s in the pr o per stor age, brewing,

and serving of each kind of tea.

In 2003, wor ld pr oduction was 3.21 million tonnes annually and by 2008, wor ld tea

pr oduction reached over 4.73 million tonnes. While at the time of Inde pendence only 79Million K ilogr ams or about 31% of total pr oduction of 255 Million K ilogr ams of tea was

retained f or inter nal consum ption, in 2008 as much as 802 Million K ilogr ams or about 82% of

total pr oduction of 981 Million K ilogr ams of tea went f or domestic consum ption. Such a

massive increase in domestic consum ption has been due to increase in po pulation, greater

ur banisation, increase in income and standar d of living etc.

In Dar jeeling, one can find ar ound 1,00,000 tour ists per year in all seasons. We ex pect to

easily gener ate sales to existing committed tea dr ink er s, who will immediately recognize the

quality of our pr oducts and services. Mar k eting to the much larger local gr oups who are not

yet familiar with premium teas will em phasize our atmosphere (cosy, intimate, luxur ious), our

prestige-value (high pr ices, the so phistication of having a favour ite "exotic" tea type), and our wide arr ay of potential gifts (gift bask ets, chocolates, loose teas and tea accessor ies). Sales to

tour ists de pend on a highly-visible location, association with the quaint charm of Dar jeeling, and pr omotional eff or ts in coo per ation with other local businesses.

We have no direct com petitor s in our area. The local Teasho ps cannot com pete with our

upscale appr oach, andwe

h

ave a tie-up with

the nearest

h

otel, Sh

angr i-la.

The owner s are investing 10 lak hs of their own money into the business. Nishan jali Teahouse is seeking an additional 5 year loan of Rs 21, 98,150 to fund our star t-up costs.

LOGO OF THE COMPANY



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MEANING

N : NEW IDEAS

A : DESIRE O REA E PEAK; ON INUOUS GROW

V : OPENNESS O E NEWER

S AR : E DESIRE O BE NUMBER ONE

RED OLOUR : AGGRESSIVENESS

BLUE OLOUR : FLEXIBILI Y

Motto of the omp n

Treati g every i ivi al customer as a very special and meeting their requirements to the

best possi ble satisf action is the motto of this generation. We will carryf or ward the goodwill

of QUALITY & TASTE fur ther f ollowing the f ootste ps of our elder s and constantly

im pr ovising the service, quality and taste of our pr oducts.



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Mission

³Our goal is to pr ovide the finest premium teas and chocolates to residents of the Dar jeeling ina relaxed and fun atmosphere.´

Objectives

y To o per ate a successful tea sho p along with giving of premium chocolates in Dar jeeling,

em ploying one to two em ployees the fir st year.

y To o btain a minimum of 200 regular customer s in the Nishan jali Teahouse in the fir st

year of o per ation.

y Achieve fir st year sales of Rs 97,12,250.

y To pr oduce a reasonable net pr ofit by the end of the thir d year of o per ation.

K eys to Success

1. Ex per ienced Owner s or Manager s: An jali Jayadev and Nisha Jain have year s of

ex per ience in this and related industr ies. 2. Pr oduct Quality: We sell only the finest whole-leaf loose teas, pastr ies, and chocolates.

3. Excellent Customer Service: Each customer will be treated as would an honoured guestin our homes.

4. No direct com petition: We are the only teahouse in 20 miles.

5. Enough wor king capital to survive the fir st year as we build a customer base.

6. Br oad cr oss-seasonal off er ings: In addition to hot teas, we off er iced teas, chocolates, and

gift bask ets to cover seasonal var iations in customer demand.

COMPANY INTRODUCTION

Nishan jali Teahouse is a star t-up business on a well-tr affick ed street in Dar jeeling. Our

pr imar y f ocus is in the over 50 kinds of loose tea we off er, including black teas, green teas, her bal teas (infusions), and flavoured teas (black or green tea plus other flavour s). We

serve our teas hot and iced, and sell loose teas by the ounce. In addition, we sell

premium chocolates and gift bask ets, and off er daily pastr ies to accom pany tea or der s.



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After water, tea is the most widely consumed bever age in the wor ld. It has a cooling, slightly

bitter, astr ingent flavour which many en joy There are at least six var ieties of

tea: white, yellow, green, oolong, black , and pu-er h of which the most commonly f ound onthe mar k et are white, green, oolong, and black . All teas are made f r om the same species of

plant, though diff erent var ieties may be used, and the leaves are pr ocessed diff erently, and, in

the case of fine white tea, gr own diff erently

Tea is tr aditionally classified based on the techniques with which it is pr oduced and

pr ocessed.

White tea: Wilted and unoxidized

Yellow tea: Unwilted and unoxidized, but allowed to yellow

Green tea: Unwilted and unoxidized

Oolong: Wilted, br uised, and par tially oxidized

Black tea: Wilted, sometimes cr ushed, and fully oxidized

Post-f ermented tea: Green tea that has been allowed to f erment/com post

The tr aditional method of making a cup of tea is to place loose tea leaves, either directly, or in

a tea infuser, into a tea pot or teacup and pour hot water over the leaves. After a couple of

minutes the leaves are usually removed again, either by removing the infuser, or by str aining

the tea while serving.

Most green teas should be allowed to stee p f or about two minutes, although some types of tea

require as much as ten, and other s as little as thir ty seconds. The strength of the tea should be

var ied by changing the amount of tea leaves used, not by changing the stee ping time.

Pu-er h tea is also called Pu'er tea. Pu-er h teas require boiling water f or infusion. Some pref er

to quickly r inse pu-er h f or sever al seconds with boiling water to remove tea dust which

accumulates f r om the aging pr ocess. Infuse pu-er h at the boiling point (100 °C or 212 °F), and

allow to stee p f or 30 seconds or up to five minutes.



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Much flavour ing is added to var ieties of tea dur ing pr ocessing. Among the best known are

Chinese Jasmine tea, with jasmine oil or flower s, the spices in Indian Masala chai and Ear l

Grey tea, which contains oil of bergamot. A great r ange of moder n flavour s have been added

to these tr aditional ones. In easter n India peo ple also dr ink lemon tea or lemon masala tea.

Lemon tea sim ply contains hot tea with lemon juice and sugar. Masala lemon tea contains hot

tea with r oasted cumin seed powder, lemon juice, black salt and sugar which gives it tangy,

spicy taste.

Other po pular additives to tea by the tea-brewer or dr ink er include sugar, liquid honey or a

solid Honey Dr o p, lemon (tr aditional in Russia and Italy), f r uit jams, and mint. In China

sweetening tea was tr aditionally regar ded as a f eminine pr actice. In colder regions such

as Mongolia, Tibet and Ne pal, butter is added to pr ovide necessar y calor ies. Tibetan butter tea

contains r ock salt and dre (yak) butter, which is then chur ned vigor ously in a cylindr ical

vessel closely resem bling a butter chur n. The same may be said f or salt tea, which is

consumed in some cultures in theHindu K ush region of nor ther n Pakistan.

Our com pany distr ibutes tea bags also. Tea leaves are pack ed into a small envelo pe (usually

com posed of paper ) known as a tea bag. The use of tea bags is easy and convenient, making tea bags po pular f or many peo ple today. However, the tea used in tea bags has an industr y

name² it is called fannings or "dust" and is the waste pr oduct pr oduced f r om the sor ting of

higher quality loose leaf tea, although this cer tainly is not tr ue f or all br ands of tea, especially

in the case of many specialty, high quality teas now available in bag f orm. It is commonly

held among tea aficionados that this method pr ovides an inf er ior taste and ex per ience. The

paper used f or the bag can also be tasted by many, which can detr act f r om the tea's flavor.

Because fannings and dust are a lower quality of the tea to begin with, the tea f ound in tea

bags is less finicky when it comes to brewing time and tem per ature.

Compressed Tea, Canned Tea and Instant Tea are also served at Nishanjali Teahouse.



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Tea var ieites are also given in gift packages to tour ists mainly such as Castleton Moonlight,

Tur zum Organic, Dooter iah White Delight, Thur bo Clonal and Namr ing Clonal.

And in or der to attr act the customer s the tables are so arr anged with colour ful napkins and

Mugs so that they would f eel the place to be home.

Alongwith this chocolates that too premium chocolates are also served which tour ists love the most such as Ten Minutes Tr uffles, Vintage Chocolates and WOW Chocolates and manyother s.

Other than this, gift bask ets are also given to tour ists f or packing the teabags etc. in or der to

avoid huge tax r ates.

Pastr ies are also pr ovided which br ings in a mouthwater ing f eeling among the customer s.



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Gif t

Gif t Bask ets are also pr ovided alongwith the var iety of Tea which are 52 in num ber f or pack ing pur poses and attracting the customer s mainly tour ists.

About Darjeeli

Dar jeeling lovingly called µthe Queen of hill station¶ never ceases to beck on those who are enamoured of the Himalayas with its celestial char m. Its beauty changes in tune with the

changes in the seasons. Dar jeeling, k nown as the queen of the Himalayas is situated in the Nor thern Par t of the Indian state of West Bengal. The

city is located in the Siwalik R ange of the lesser

Himalayas and is f amous f or its tea industry. The city

is also f amous f or the Dar jeeling Himalayan R ailways

which is one among the UNESCO Wor ld Her itage

List.

There are a lar ge num ber of tour ist destinations in

Dar jeeling mak ing this place a wonder ful holidaying ex per ience. Tour ist placesinindia.com off er s you

com plete guidance on all that you want to k now a bout

Dar jeeling. To the east, a dull orange sun emer ged

painting the sk y with br illiant str ok es of magenta, gold, orange and fuchsia. The snow ca pped

Everest, K a br u, K anchen junga, Jannu and other peaks slowly emer ge f r om slum ber to star t a

new day.

As the f og lif ts in the slowly penetrating sun, the town gradually comes alive. Amidst brewing

of tea, the sing song Gor k hali which is the local dialect, r ises and f alls lik e music.

There are a lar ge num ber of Star, Her itage and Budget hotels which pr ovide wonder ful

accommodation f acilities in the city. The most im por tant among them include the Windamere

Hotel, Hotel Ivanhoe, For tune Hotel Central, Himalayan R esor t, Sinclair s,Anand Palace and

Bellevue Hotel to name a f ew.

The city has also a very good transpor tation networ k with Bagdogra being the nearest air por t

and New Jal paigur i being the nearest railway station. National Highway No. 55 passes

thr ough the city connecting Dar jeeling with other par ts of the Country.

Tour ist placesinindia.com is an international travel site and a re pository of useful inf or mation

a bout Dar jeeling and on other related inf or mation a bout the city.



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Com pany Owner ship

As a Pr ivate Limited Liability Com pany in Dar jeeling, owner ship of Nishan jali Teahouse isidentified as belonging to its manager s. These par tner s, Nisha Jain and An jali Jayadev, each

contr ol 50% of the business.

An jali Jayadev has five year s of ex per ience managing a successful boutique coff eehouse in a

similar locale in Munnar, Ker ala. Her love and knowledge of teas will mak e the tr ansition to owning and r unning a teahouse a natur al ste p. Nisha Jain has 3 year s of tr aining as a her balistand wor k ed f or 4 year s as a tea tender in Assam. She is currently tr aining to be a nutr itionist;

her knowledge of the health benefits of tea will help our mar k eting and sales eff or ts.

Start-up Summary

Equipment and Inventor y will mak e up 75% of star t-up requirements. Leasehold

im pr ovements and gener al ex penses com pr ise the remaining 25%. The owner s are

contr ibuting Rs 10, 00,000 of investment to the business, each contr ibuting Rs 5 lak h. We

need a total of Rs 31, 98,150, and are seeking a long-term loan of Rs 21, 98,150 f r om Bank of

Bar oda; we plan to pay this loan back in full within 5 year s, at a 14.25% interest r ate.

Long-term Assets, Rs 6,90,400

y R ef r iger ated Chocolate Case: Rs 1,75,000

y Tea Racks: Rs 1,15,000

y Coff ee Mak er: Rs. 45,400

y Hot Water and Steam machine: Rs 55,000

y Dishwasher: Rs. 1,50,000

y Other Har dware & A ppliances: Rs. 1,50,000

Shor t-term Assets, Rs 3,30,250

y Coff ee Gr inder: Rs 28,200

y Iced Tea Shak er s: Rs 27,050

y Fur niture: Rs. 2,75,000

Ex pensed Supplies, Rs 60,000



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Star t up R equirements:

Star t up Ex penses:

Legal R s 37,000

Stationery R s 40,000

Br ochures R s 10,000

Insurance R s 25,000

R ent R s 1,50,000

Leashold Im pr ovements R s 5,00,000

Star t up Supplies R s 60,000

Dishes, Teacups, Tea pots R s 1,00,000

Other R s 5,000

Total Star t up Ex penses R s 9,27,500

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

Expenses Assets Investment Loan

Amount(in Rs.)

Amount(in Rs.)



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Star t-up Assets

Cash R equired Rs 7,50,000

Star t-up Inventor y Rs 5,00,000

Other Current Assets Rs 3,30,250

Long-term Assets Rs 6,90,400

Total Assets Rs 22,70,650

Total R equirements Rs 31,98,150

Star t-up Funding

Star t-up Ex penses to Fund Rs 9,27,500

Star t-up Assets to Fund Rs 22,70,650

Total Funding R equired Rs 31,98,150

Assets:

Non-cash Assets f r om Star t-up Rs 15,20,650

Cash R equirements f r om Star t-up Rs 7,50,000

Additional Cash Raised Rs 0

Cash Balance on Star ting Date Rs 7,50,000

Total Assets Rs 22,70,650

Liabilities and Capital

Liabilities



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Current Borr owing Rs 0

Long-term Liabilities R S 21,98,150

Accounts Payable (Outstanding Bills) Rs 0

Other Current Liabilities (interest-f ree) R S 0

Total Liabilities R S 21,98,150

Capital

Planned Investement

Owner s Rs 10,00,000

Other Rs 0

Additional Investment R equirement Rs 0

Total Planned Investment Rs 10,00,000

Loss at Star t-up (Star t-up Ex penses): (Rs 9,27,500)

Total Capital (Rs 72,500)

Total Capital and Liabilities (Rs 22,70,650)

Total Funding (Rs 31,981,50)

Products a d Services

Nishan jali Teahouse will specialize in premium teas, fine chocolates, and gift bask ets. Our

full "teahouse" ex per ience is com plemented by an assor tment of loose teas, premium



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chocolates, tea accessor ies and gif t bask ets, all suita ble as souvenir sand gif ts f or our tour ist

customer s. Our goal is to be a destination store f or visitor s and a resour ce f or locals seek ing

gif ts, new ex per iences, and k nowledge of tea.

52 k inds of tea

Our tea-tender s will k now the best brewing tem perature and time f or each of the 52 k inds of

teas we off er. These include straight black teas such as Assam, Ceylon, Dar jeeling and K eemun, blends lik e Chai, Ear l Grey, and our own creations, lik e " New Ta jmahal Garden

Par ty," a Ceylon or Vanilla or Jasmine blend. We will also off er a range of green teas.

Nishan jali Teahouse's no-caff eine her bal infusions range f r om f lavoured r ooi bus to f r uit

blends and medicinal brews (chamomile, ginseng, etc.).

All of these teas are availa ble hot, iced, or loose f or customer s to tak e home and brew at their leisure.

1) Pastr ies

To com plement our beverages, we will off er a small selection of f reshly- bak ed pastr ies f r om a local bak ery. Our alliance with this bak ery allows us to off er

high-quality bak ed goods at a reasona ble pr ice, in exchange f or co-adver tising.

These items are not intended as a sta ple of our overall pr of it str ucture, but hel p

us to create the whole-service f eeling of a real teahouse, without investing in

cooks, bak er s, or k itchen equi pment.

2) Chocolates

In k ee ping with our upscale, indulgent f eeling, we will sell premium

chocolates such as Ten Minute Tr uff les, WOW, as well as envir onmentally-

f r iendly ones lik e Dago ba and vegan chocolates. We will off er a limited

selection of tr uff les and di pped chocolates (lik e chocolate covered cherr ies,

orange peel, and candied ginger), and a wider array of loose bar s and chocolate

gif t bask ets.

3) Coff ee

We are a teahouse; we f ocus on tea. We brew only one k ind of coff ee daily, to

satisf y those accom panying tr ue tea lover s on their visits to our store.

4) Tea para phernalia

Tea para phernalia includes specialty tea pots, tea balls, decorative tea tins, "ar t of tea" books, and var ious small, seasonal, non-f oods, tea-related items.

5) Gif t Bask ets

We off er a selection of pre-made gif t bask ets, and will wor k with customer s to create custom bask ets f or any occasion. Our tea tins come in a range of si es

and designs, and we will k ee p at least f ive colour s of bask ets and liner s in stock at all times.



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MARKET ANALYSIS SUMMARY

The Tea Mar k et



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The tea industr y in India is about 172 year s old. It occupies an im por tant place and plays a

ver y useful par t in the national economy. While at the time of Inde pendence only 79 MillionK ilogr ams or about 31% of total pr oduction of 255 Million K ilogr ams of tea was retained f or

inter nal consum ption, in 2008 as much as 802 Million K ilogr ams or about 82% of total pr oduction of 981 Million K ilogr ams of tea went f or domestic consum ption. Such a massive

increase in domestic consum ption has been due to increase in po pulation, greater

ur banisation, increase in income and standar d of living etc. Indian tea ex por t has been anim por tant f oreign exchange ear ner f or the countr y. There was an inherent gr owth in ex por tear nings f r om tea over the year s. Till 70s¶, UK was the ma jor buyer of Indian tea Since 80s¶

USSR became the largest buyer of Indian tea due to existence of the tr ade agreement between

India and er stwhile USSR .

Tea is an essential item of domestic consum ption and is the ma jor bever age in India. Tea is

also considered as the cheapest bever age amongst the bever ages available in India. Tea

Industr y pr ovides gainful direct em ployment to more than a million wor k er s mainly dr awn

f r om the back war d and socially weak er section of the society. It is also a substantial f oreign

exchange ear ner and pr ovides sizeable amount of revenue to the State and Centr al Exchequer.

The total tur nover of the Indian tea industr y is in the vicinity of Rs.9000 Cr ores. Presently,

Indian tea industr y is having

� 1692 registered Tea Manufacturer s,

� 2200 registered Tea Ex por ter s, � 5848 num ber of registered tea buyer s,

� Nine tea Auction centres.

S purred by studies touting tea's health eff ects, and increasing familiar ity with Asian and South

Asian cuisine and its tea customs, ever y consumer has been tur ning towar ds tea as a more

or iginal, more "natur al" aff or dable luxur y. In addition, the cultur al connection of tea has made

tea knowledge, including the choice of a favour ite teahouse, a mar k of so phistication among

all the classes of peo ple.

The ma jor com petitive countr ies in tea in the wor ld are Sr i Lanka, Kenya, China andIndonesia. China is the ma jor pr oducer of green tea while Sr i Lanka and Indonesia are

pr oducing mainly or thodox var ieties of tea. Kenya is basically a CTC tea pr oducing countr y. While India is facing com petition f r om Sr i Lanka and Indonesia with regar d to ex por t of

or thodox teas and f r om China with regar d to green tea ex por t, it is facing com petition f r om

Kenya and f r om other Af r ican countr ies in ex por ting CTC teas.

The Chocolate Mar k et

Premium chocolate re presents a fast-gr owing and dynamic mar k et in many par ts of the wor ld,

with glo bal sales having r isen by over 18% within the last year. Sales and consumer

awareness are both gr owing f or a var iety of reasons - these include wider availability of

premium chocolate at the retail level and high levels of new pr oduct activity. Premium

chocolates such as Vintage Chocolates, Ten minute Tr uffles, WOW etc are pref erred

thr oughout India.

Mar k et Size



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Locals

According to the 2001 census, the Dar jeeling ur ban agglomeration, with an area of

12.77 k m2

(4.93 sq mi) has a po pulation of 109,163, while the munici pal area has a po pulation

of 1, 07,530.

Dar jeeling has seen a signif icant gr owth in its po pulation, with its average gr owth rate being

47% between 1991 and 2001. The total po pulation of Dar jeeling is 1,609,172 and there isgr owth of 23.54 since 1991.

Tour ists

India¶s per f or mance in tour ism sector has been quite im pressive.Dur ing the per iod 2002 to

2009, India witnessed an increase in theForeign Tour ist Arr ivals (FTAs) f r om 2.38 million to

5.11 million.

Foreign Exchange Earnings (FEEs) f r om tour ism increased f r om R s. 15,064 cr ore in 2002 to R s. 54,960 cr ore in 2009. The gr owth rate in earnings in 2009 vis-a-vis 2008 was 8.3 per cent.

Thus, we estimate a potential mar k et of atleast 1,00,000 tour ists annually f or our business.

Mar k et Segmentation

While we antici pate a split between locals and tour ists, all mem ber s of our tar get mar k et are between the ages of 25 and 60, and have a moderate to si a ble disposa ble income.

Market Analysis:



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Potential

Customer s

Gr owth Year 1 Year 2 Year 3

Local R esidents 5% 10,000 10,500 11,025

Tour ists 3% 1,00,000 1,03,000 1,06,090

Total 3.19% 1,10,000 1,13,500 1,17,115

Target Mar k et Segment Str ategy

Nishan jali Teahouse will pr ovide the local upper -middle-class community with a place to

socialize, indulge themselves with fine teas and pastr ies, and find unique chocolates and tea

f or gifts. For tour ists, Nishan jali Teahouse will be a destination sto p in their tour of the town,

whether as a break f r om sho pping, a warm-up visit after skiing, or a place to buy unique gifts

mainly tea var ieties which they would not get in any other near by place in Dar jeeling well

pack ed as souvenir s of their holiday.

These customer s will be glad to pay the pr ice premium f or our pr oducts in exchange f or the high quality, great taste, and sense of prestige they receive and want to buy "only the best.

Service Business Analysis

The tea mar k et is not a relatively new conce pt as Dar jeeling is known f or its tea. At

Nishan jali, var iety is seen as it just doesn¶t off er tea but also lots of var ieties in tea,

chocolates, gift bask ets etc. None of these o ptions is geared towar d the tea dr ink er, and none

of them off er the convenience or upscale f eeling, let alone knowledgeable service, available at Nishan jali Teahouse.

Wor d of mouth, visibility, and year -r ound tour ist appeal are ver y im por tant f or a teahouse's

success in areas lik e Dar jeeling which is famous f or tea.

Tea Myths

y Most peo ple do not consume tea as a mor ning r itual as they do with coff ee.

y Tea is consumed in the after noon and bef ore bed. y Peo ple dr ink tea only dur ing cold weather, making the business seasonal.

y Tea is associated solely with the image of old ladies, china cups.

Tea Facts

y Tea is gr owing in po pular ity and more peo ple are dr inking tea in the mor nings as a

substitute f or coff ee. y Tea is being consumed thr oughout the day; its milder caff eine eff ect allows f or multiple

cups without the " jitter s."

y Today's tea dr ink er s do not limit their pur chases to one season, but dr ink tea all year

long. y Tea has become the dr ink of choice f or today's baby boomer, and tea's health eff ects are

giving tea a more active, youthful, and healthy image.



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Premium Chocolate Sales

In Nishan jali Teamar k et, the premium and near -premium chocolate mar k et is made up of three ma jor com petitor s.

1. Premium. Premium chocolate boutiques have a small networ k of dealer s or com pany

owned outlets thr oughout the countr y that are chosen based on the high image of the outlet. Some outlets re present the manufacturer exclusively; other s carr y multiple high

end chocolates. Nishan jali Teahouse off er s only premium chocolates.

Str ategy and Im plementation Summar y

We will com bine heavy pr int adver tising with special events and targeted pr omotions to

intr oduce Dar jeeling's residents and tour ists to Nishan jali Teahouse, and to premium teas in

gener al. R e peat sales de pend on consistently high quality pr oducts and service. We will thus

tr ain ever y par t-time tea tender in the pr o per stor age, brewing, and serving of our 52 kinds of

tea.

Our teas and chocolates are off ered at a pr ice premium that discour ages customer s seeking

cheap, low-quality goods. This not only enhances the f eeling of prestige customer s get when

patr onizing our teahouse, but also ensures that customer s will have similar ex pectations of

service and quality, based on their socio-economic class. The status and so phistication

indicated by suggesting an outing to Nishan jali, or a gift bask et with our logo on it, will soon

become valuable in themselves.

SWOT ANALYSIS Com petitive Edge



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Key Com petitive Strengths

y An jali Jayadev's ex per ience managing a successful boutique coff eehouse in a

similar locale. y Nisha Jain¶s f our year s of ex per ience as a tea tender, and 3 year s of tr aining as an

her balist.

y We are the only full-scale teahouse within 20 miles. y We have arr anged com petitive distr ibution contr acts with high-end tea gr ower s ar ound

the wor ld.

y We are the only retailer off er ing such a wide arr ay of premium chocolates east of the

r iver.

y Our inter ior design will give Nishan jali Teahouse an intimate, cosy, comf or table, and

chic f eeling, without reminding customer s of doilies and lace.

y We are committed to pr oviding only high-quality pr oducts and services.

Com petitive Weaknesses

Our pr imar y weakness is that we are a new business com peting against established chains, f or customer s who may not know how great our pr oducts are. To significantly build sales, we

must not just find new customer s - we must tak e customer s away f r om existing stores andf r om their coff ee-dr inking habits. We can accom plish this only by off er ing a super ior

selection of teas and chocolates, and f ocusing on high-quality service and full service deliver y.

Com petition and Buying Patter ns

In the gourmet teahouse industr y, com petition de pends on quality of teas, knowledgeable tea

tender s, and cultivation and education of a loyal customer base. Consumer s used to Lipton

teabags and other low-quality, tea-dust off er ings in gr ocer y stores are amazed at t

he r ange of tastes, textures, and f r agr ances f r om real, high quality tea. Off er them a good cup, and they

will usually retur n f or the rest of their lives. However, getting them to enter your store in the

fir st place can be a ma jor challenge.

Our potential customer s var y in knowledge of tea, and are seeking a wide r ange of

ex per iences and pr oducts.

Tea Dr ink er s:

Tea dr ink er s are looking f or a pleasant, relaxing place in which to indulge their love of tea,

share it with f r iends, and lear n more about tea var ieties, cultivation, and health pr o per ties.

Committed tea dr ink er s will always choose quality over pr ice or convenience, seeking out the

f reshest whole-leaf and tippy var ietals in the area. Our challenge with these consumer s is

getting out the wor d that we are here, and holding events to showcase our quality.

Tour ists:

Tour ists var y widely in their reasons f or visiting Dar jeeling, but they gener ally share a

so phisticated ur ban palate,a moder ately high disposable income, and a desire to "discover "

quaint local charm. They are seeking high-quality f oods, bever ages, gifts, and service. While

here, they much pref er local, small-scale businesses to larger chains, but want to be assured of

quality. Our challenge with tour ists is being visible enough to be noticed, without losing our

local charm. Once such a visitor has tr ied our teahouse, they will definitely want to retur n.



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Other Potential Customer s:

y New Tea Dr ink er s (who have never tr ied good tea)

y Health-Food Afficionados

MAR KETI NG A ND SA LE S STR ATEGY

Our mar k eting str ategy needs to accom plish two things:

1) To mak e potential customer s aware of Nishan jali Teahouse's o pening and location;



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2) To educate potential customer s as to what a teahouse is, and why it is so wonder ful.

Clear ly, with committed tea dr ink er s, the fir st will suffice. However, f or the rest of our target

mar k et, we must str ategically define our selves as the answer to the many diff erent things each

gr oup is seeking. The mar k eting budget will not exceed 3% of our gr oss annual sales.

Tea Dr ink er s

y Adver tisements in the "entree" and f ood sections of all local paper s within a 30 miles

r adius.

y Ads in the local newspaper namely Dar jeeling Times.

Socializer s

A ppeal to their sense of prestige and good taste. Within the local mar k et, we will initiallytarget women looking f or an intimate social gather ing space. A cosy chat over a cup of tea is

just r ight f or exchanging gossip, planning outings, or sim ply relaxing and pam per ing oneself .

y Adver tise thr ough religious organisations and women's organizations. y

Monthly "Tea Tasting" par ty with a diff erent theme each month.

Tour ists

y Walk-ins: In mild weather (S pr ing thr ough Autumn), our best chances are to increase the

visibility of our store to encour age visits f r om tour ists str olling thr ough downtown. The

storef r ont design (in our highly visible location) will include our name and logo, and we will place standing signs pointing towar ds our store at both near by inter sections. Our

menu, pr ices, and hour s will be posted in the windows at all times. y Destination Visitor s: We will place ads in the pr ogr ams of all plays, o per as, and other

cultur al events in Dar jeeling thr oughout the year, billing our selves as a "mini-getaway"f r om the pace of ur ban lif e. We will pr ovide br ochures in ever y local histor ical site,

visitor 's centre, and state par k inf ormation booth.

Alliances with local Inns: Each guest staying at a local inn such as Shangr i-La Hotel willreceive a coupon f or a half-pr ice pot of tea at Nishan jali Teahouse, along with a br ochure.

Sales Str ategy

Because Nishan jali Teahouse is a new entity, we under stand that we will have to pr ove our

com pany's wor th to upscale tea and chocolate buyer s in or der to ear n their respect and

business. Our Sales Forecast de pends on establishing a loyal customer base who visits our

teahouse at least once ever y month; we ex pect a f ew committed tea dr inking "regular s" who

will come in more than once a week . In or der to achieve this kind of re peat business, ever ycustomer, whether on the fir st visit or their hundredth, will be treated gr aciously and with

respect.

Par t of our mission is to educate our customer s about tea and tea brewing; however, this mustonly be done in a respectful fashion. Our knowledge is a resour ce, and must never be used to

mak e a customer f eel uncomf or table or ignor ant.

Tea Pr ofile



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In addition to our extensive menu descr ibing all 52 teas, Nishan jali Teahouse has develo ped a

"Tea Pr ofile" car d f or new tea dr ink er s, or customer s looking to br oaden their tea ex per ience. These car ds include questions about taste pref erences which will help our tea tender s guide

the customer to a tea they will en joy. Our teas var y widely in taste, ar oma, smokiness, f r uit, and pungency, and ver y f ew peo ple will en joy them all equally. A customer who finds his or

her per sonal tastes met is much more lik ely to be a re peat customer than one who

sim ply or der s a po pular tea.

³Tea Tasting Plates´

Ever y week we will off er a diff erent selection of our teas as a "tasting:" 4 to 5 small cups of

diff erent teas, labelled and descr ibed, with appr o pr iate pastr y accom paniments. These plates

will allow customer s to tr y new kinds of tea without committing to a full pot. These tastings

will be pr iced at 1 1/2 times the pr ice of a regular pot.

Sales Forecast

We ex pect sales to star t off conservatively and increaseextensively dur ing the Chr istmas,

Valentine's Day, Easter and Mother 's Day holidays, Durga Pooja, Diwali, and New Year.

Nishan jali teahouse ex pects aver age sales of just over Rs 4,62,500 per month f or the fir st

year, as we build name recognition and status in the community. In the second and thir d year

we look to see increased sales of r oughly 10% per year, as we gain a larger per centage of the

mar k et share and increase our customer base beyond Dar jeeling and into the connecting

towns.

Pr icing

y Hot Tea: We off er two sizes of sit-down hot tea: small pots, at Rs 20 each, and large pots, at Rs 45 each (f or two peo ple). For customer s wishing to tak e tea with them, we off er a

flat r ate of Rs 30 f or a 73ml. y Iced Tea: Iced Teas are served in 355 ml. or 473ml. cups, at Rs 75 to Rs 125,

respectively.

y Pastr ies: Our pastr y pr ices r ange f r om Rs 30 f or a lavender -lemon sugar cookie to Rs 75

f or a slice of cak e. Pr ices de pend on our daily cost of such items f r om the local bak er y,

and should be only Rs 10 to Rs 12 higher than the pr ice of that item sold in the bak er y

itself .

y Chocolates: Chocolate pr ices var y widely, f r omRs 30 to Rs 1200.

y Gift Bask ets: Gift bask ets star t at Rs 500, and can r ange up to Rs 7,500 f or the largest

chocolate and tea selection com binations at holidays. We ex pect the aver age gift bask etsale will be about Rs 1250.

Sales Forecast

Year 1 Year 2 Year 3

Sales

Hot Teas Rs 26,20,000 Rs 31,00,000 Rs 33,00,000

Iced Teas Rs 11,20,000 Rs 12,00,000 Rs 12,75,000



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Pastr ies Rs 7,20,000 Rs 7,50,000 Rs 8,00,000

Chocolate Rs 44,00,000 Rs 46,00,000 Rs 50,00,000

Tea Par apher nalia Rs 1,50,000 Rs 1,60,000 Rs 1,70,000

Gift Bask ets Rs 1,94,750 Rs 2,00,000 Rs 2,10,000

Loose Teas Rs 5,07,500 Rs 5,46,000 Rs 6,55,200

Total Sales Rs 97,12,250 Rs 1,05,56,000 Rs 1,14,10,200

Direct Cost of Sales Year 1 Year 2 Year 3

Hot Teas Rs 7,86,000 Rs 9,30,000 Rs 9,24,000

Iced Teas Rs 3,58,400 Rs 3,84,000 Rs 3,82,500

Pastr ies Rs 4,75,200 Rs 4,95,000 Rs 5,12,000

Chocolate Rs 19,80,000 Rs 20,70,000 Rs 21,50,000

Tea Par apher nalia Rs 75,000 Rs 80,000 Rs 79,800

Gift Bask ets Rs 77,900 Rs 80,000 Rs 79,800

Loose Teas Rs 2,03,000 Rs 2,18,400 Rs 2,49,000

Subtotal Direct Costof Sales

Rs 39,55,500 Rs 42,57,400 Rs 43,80,600

MANAGEME NT SUMMAR Y

We are a small com pany owned and o per ated by An jali Jayadev and Nisha Jain, as a Limited

Liability Cor por ation. An jali Jayadev is the designer and mar k eter of the pr oducts and Nisha

Jain manages the store. As mentioned above, both par tner s have extensive ex per ience in thisand related industr ies, and will be lever aging their knowledge of tea pur chasing, brewing, and



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mar k eting, as well as knowledge of r unning small upscale bever age business, to create

success f or Nishan jali Teahouse.

Our management style reflects the par ticipation of the owner s; we are not ver y hier ar chical,

and encour age all em ployees to lear n as much as possible about all aspects of the business.

The com pany respects its community of co-wor k er s, and will treat all wor k er s well.

Per sonnel Plan

The Per sonnel Plan chr onicles the gr owth of the organization to appr oximately 4 em ployeesin the fir st 3 year s. Future year s may require a f ew additional peo ple besides those

indicated, de pending on the gr owth of the com pany.

Per sonnel Plan

Year 1 Year 2 Year 3

An jali Jayadev Rs 12,00,000 Rs 15,00,000 Rs 17,50,000

Nisha Jain Rs 3,00,000 Rs 6,00,000 Rs 7,00,000

Par t-time tea tender s Rs 6,80,000 Rs 7,00,000 Rs 7,25,000

Total Peo ple 4 4 4

Total Payr oll Rs 21,80,000 Rs 28,00,000 Rs 31,75,000

Financial Plan

Our Financial Plan is based on sound resear ch into similar businesses in similar communities,

and cost estimates o btained f or equipment, rent, and other o per ating ex penses. As an owner -

o per ated business, we have some leeway in ad justing our own com pensation if sales are low in a given month, but our f orecasts are conservative. Our to p financial pr ior ities in the fir st

three year s are re paying our long-term loan, paying our em ployees fair ly, cover ing our

ex penses on time, and gener ating a modest pr ofit.

We have tak en a sho p on rent in Dar jeeling near to Shangr i-la Hotel with 600 sq.ft. We are

o pening this sho p inDar jeeling as it is fir stly a cold place, and tea is an essential bever age

consumed by each and ever y individual. And it is a place where one can find a wide var iety of

teas alongwith pastr ies, gift boxes and chocolates.

We are o pening this sho p because we love tea and we will en joy all the har d wor k we must do

to maintain the business. We do not ex pect to get r ich doing this, but we do anticipate steadily

increasing pr ofits and net wor th as Nishan jali Teahouse becomes well-known and establishes

a loyal clientele.

Com pany ex pansion, while not a necessity, will be an o ption if sales pr ojections are met and

or exceeded. The location we have chosen contains an additional area we can annex f or extr a

seating if and when it becomes necessar y, f or a small additional rental charge.

Important Assumptions



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Tax and interest r ate assum ptions f or this plan are on the f ollowing table. In addition, there

are some non-financial assum ptions guiding our f orecasts.We assume:

y No other teahouses o pening in Dar jeeling in the next year. (A saf e assum ption)

y A continued gr adual increase in the po pulation and socio-economic class of the

Dar jeeling area.

y Continued tour ist interest in our area. y Increasing consumer interest in tea and other "health" f oods. y That premium chocolate will continue to sym bolize luxur y and r omance as gift choices.

Direct Cost of Sales

Direct Cost of Sales Month 1 Month 2 Month 3

Hot Teas Rs 2,25,000 Rs 37,500 Rs 45,000

Iced Teas Rs 40,000 Rs 48,000 Rs 60,800

Pastr ies Rs 39,600 Rs 39,600 Rs 39,600

Chocolate Rs 67,500 Rs 67,500 Rs 67,500

Tea Par apher nalia Rs 6,250 Rs 6,250 Rs 6,250

Gift Bask ets Rs 4,000 Rs 4,400 Rs 4,500Loose Teas Rs 12,000 Rs 10,000 Rs 10,000

Subtotal Direct Cost

of sales

Rs 1,91,850 Rs 2,58,250 Rs 3,46,150

Personnel costs on a monthly basis

Direct cost of Sales Month 1 Month 2 Month3

An jali Jayadev Rs 1,00,000 Rs 1,00,000 Rs 1,00,000

Nisha Jain Rs 25,000 Rs 25,000 Rs 25,000

Par t-time tea-tender s Rs 50,000 Rs 50,000 Rs 50,000

Total Peo ple 3 3 3Total Payr oll Rs 1,75,000 Rs 1,75,000 Rs 1,75,000

General Assumption:

Month 1 Month 2 Month 3

Plan Month 1 2 3

Current Interest Rate 9.50% 9.50% 9.50%

Long-term Interets

Rate

14.25% 14.25% 14.25%

Tax Rate 30% 30% 30%

Other 0 0 0

Pro Forma Prof it and Loss

Month 1 Month 2 Month

Sales Rs 4,62,500 Rs 6,33,500 Rs 8,48,750

Direct cost of sales Rs 1,91,850 Rs 2,58,250 Rs 3,46,150

Other costs of sales Rs 1,91,850 Rs 2,58,250 Rs 3,46,150

Total cost of sales Rs 0 Rs 0 Rs 0

Gr oss margin Rs 1,91,850 Rs 2,58,250 Rs 3,46,150



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Gr oss margin % 58.52% 59.52% 59.22%

Expenses

Payr oll Rs 1,75,000 Rs 1,75,000 Rs 1,75,000

Mar k eting or Pr omotion

Rs 75,000 Rs 15,000 Rs 15,000

De preciation Rs 5,750 Rs 5,750 Rs 5,750R ent Rs 75,000 Rs 75,000 Rs 75,000

Utilities Rs 31,050 Rs 31,050 Rs 31,050

Monthly disposable

Supplies

Rs 5000 Rs 5000 Rs 5000

Insur ance Rs 20,850 Rs 20,850 Rs 20,850

Payr oll taxes Rs 0 Rs 0 Rs 0

Other Rs 0 Rs 0 Rs 0

Total O per ating

Ex penses

Rs 3,87,650 Rs 3,27,650 Rs 3,27,650

Pr ofit Bef ore Interest

and Taxes

Rs 1,11,250 Rs 53,350 Rs 19,800

EBITDA Rs 1,11,250 Rs 53,350 Rs 19,800

Taxes Incurred Rs 41,200 Rs 8,250 Rs 46,550

Net Pr ofit Rs 96,150 Rs 19,250 Rs 1,08,600

Net Pr ofit or Sales -20.79% 3.04% 12.80

Pro Forma Balance Sheet:

Assets Starting

Balances

Month 1 Month 2 Month 3

Current Assets Cash Rs 7,50,000 Rs 9,94,050 Rs 12,21,800 Rs 14,40,700

Inventor y Rs 5,00,000 Rs 3,08,150 Rs 2,84,100 Rs 3,80,750

Other CurrentAssets

Rs 3,30,250 Rs 3,30,250 Rs 3,30,250 Rs 3,30,250

Total current

amounts

Rs 15,80,250 Rs 16,32,450 Rs 18,36,150 Rs 21,51,700

Long term

Assets

Long term

assets

Rs 8,90,400 Rs 6,90,400 Rs 6,90,400 Rs 6,90,400

AccumulatedDe preciation 0 Rs 5,750 Rs 11,500 Rs 17,250

Total Long term

assets

Rs 6,90,400 Rs 6,84,650 Rs 6,78,900 Rs 6,73,150

Total Assets Rs 22,70,650 Rs 23,17,100 Rs 25,15,050 Rs 28,24,850

Liabilities and

Capital

AccountsPayable

0 Rs 1,79,850 Rs 3,95,750 Rs 6,34,200

Current 0 0 0 0



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Borr owing

Other current

liabilities

0 0 0 0

Subtotal current

liabilities

0 Rs 1,79,850 Rs 3,95,750 Rs 6,34,200

Long term

liabilities

Rs 21,98,150 Rs 26,44,400 Rs 26,07,150 Rs 25,69,950

Total liabilities Rs 21,98,150 Rs 28,74,250 Rs 30,02,950 Rs 32,04,150

Paid in capital Rs 10,00,000 Rs 10,00,000 Rs 10,00,000 Rs 10,00,000

R etained

Ear ning

Rs 9,27,500 Rs 9,27,500 Rs 9,27,500 Rs 9,27,500

Ear ning Rs 0 Rs 96,150 Rs 76,900 Rs 31,700

Total Capital Rs 8,94,500 Rs 9,90,650 Rs 9,71,400 Rs 8,62,800

Total Liabilities

and Capital

Rs 22,70,650 Rs 23,17,100 Rs 25,15,050 Rs 28,24,850

Net Wor th Rs 8,94,500 Rs 9,90,650 Rs 9,71,400 Rs 8,62,800

CO NCLUSIO N

In the above business plan what we have seen that if we go f or the im plementation of the

above plan definitely we will be successful because whatever data we have predicted that is

tak en after doing resear ch.

We have selected this business plan because I want to establish a R etail chain. We have

chosen Dar jeeling as the destination f or o pening up our sho p because of the var iety of teas



pr oduced there, the num ber of tour ists coming ever y year and the diver sifying culture f ound

there as well as the love f or tea.

As I have already discussed in my pr oject thatDar jeeling is the Queen of the hill station and a pref erred place f or tour ists there are lots of develo pment o ppor tunities now and in future as

well. There are f ew points to remem ber such as:

y Bef ore investment in machiner y and fur niture we have to ex plore the mar k et ina pr o per manner.

y Bef ore star ting or set up business we have to be careful f or our ex penditure

because there is no limitation of ex penditure.

y We have selected the name under which we are planning to r un our business

that is ³ NISHANJALI PR IVATE LIMITED´.

y Nishan jali Pr ivate Limited will become one of the unique tea house in

Dar jeeling with its wide var iety in tea, gift bask ets, pastr ies and chocolates.

y We have selected the place Gandhi R oad as it has a hotel near by named as

Shangr i-la Hotel, because this is one of the o ppor tunities f or us to get tour ists

to taste the delicacies off ered in our sho p which would not be available there.

y In fact after doing resear ch we came to know this mar k et is ver y famousamong tour ist and localities¶.

At last but not the least I would lik e to thankful f or my business par tner An jali Jayadev because it won¶t be possible to star t this business without the help of her with com plete

suppor t and dedication towar ds the business. We not only ho pe but also sure the one day our business will create a histor y in Dar jeeling.

Business Proposal Nishanjali Pvt Ltd

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