AYU SPA

PRELIMNARY PROJECT REPORT

Submitted by:Sharan S Hremath Shraddha M Shraddha A Shivu Patil Sharanbasavraj

Executive Summary AYU Spa aims to be the premier spa in the region, Deshpande Nagar Hubli. Through a unique combination of offered services, we will quickly gain market share. AYU Spa will met. Services AYU Spa offers a wide variety of mind and body healing services. The spa business is devoted to providing holistic methods of massage, body work, and energy work. This is all done in a relaxing, serene setting. Location AYU Spa has chosen Hubli as their city for the business venture. Hubli has consistently over the last few years been 1 of the fastest growing place in Karnataka. Hubli has one of the most educated populations that loosely correlates to earning potential, or at least indicates a higher average household income. Additionally, the downtown area has undergone a recent renovation that has attracted a lot of new businesses as well as become a hot urban area. provide customers with a relaxing, rejuvenating atmosphere where all of their mind and body needs can be

General information
Name of the Entrepreneur: Shiv Das Date of Birth: 14/11/1986 Age 24 Project: Spa Location: HUBLI Type of organization: Sole Proprietorship Name of the firm: Ayu spa Address DESHPANDE NAGAR HUBLI

Educational qualification
Qualification Institute Major subject Year of passing

S.S.C or Below Degree/Diploma BBA Others

KLEs CBA

Marketing

2006/07

Work experience (past and present) Organization Deccan Pearls, Bangalore Position Manager Nature of work Day to Day Functioning Duration 2 years

Details of proposed project report

Annual income: Cash in hand: 7,50,000 Land and building: rented

Equipments

S NO. 1 2 3 4 5 6 7 Total

Description

Quantity required

Price

Total value

Name and address of suppliers ABC CDE FGH IJK LMN OPQ Zyu

Jacuzzi Spa equipments Spa pool Generator Computers Lcd Ancillary

1 2 2 1 2 2 1

45,000 4,00,000 45000 60,000 22,000 40000 400000

45,000 8,00,000 90000 60,000 44,000 80000 400000 15,19,000

Service procedure: Service program

Timings:10:00 am 10:00 pm Capacity of Spa:5000 sq feet

Revenue calculation
S.No Items
Per head * no of customers/year

Sales Revenue

Total

1 2 3 4 5 6

Pedicure Manicure skin treatments body scrubbing removing Massage Total

175*275*12 150*250*12 10*600*12 15*225*12

577500 450000 72000 40500 1188000 216000

577500 450000 72000 40500 1188000 216000 25,44,000

Facials and Hair 220*450*12 10*1800*12

Utilities S.No Particulars 1 Electricity 2 Others TOTAL Amount 1,44,000 1,00,000 2,44,000

Man power S.no Particulars No Total wages &salary(per year) 1 2 3 Skilled Semi-skilled Unskilled Total 8 5 3 16 5000*8*12 2500*5*12 1800*3*12 480000 150000 64000 6,94,000 Total

Preliminary Expenses: S.No Particulars Registration fees 1 Miscellaneous expense 2 Spa set up and training to the employees 3
Total

Amount 50,000 20,000 2,00,000 2,70,000

As per the market survey The Market

These days going to such Spas have become a fashion statement for many of the people. Its a place which many would prefer to go to such place because in this type of they find a mixture of ayurvedic medicines and blend of modern machines to relax their nerves. Our main target market would be all those people who are very conscious of their health. Where in around 45 % to 55 % of Indians feel stressed out because of their busy schedule. So we have a huge target market to make an impact on them. This type of spa is one of its kind in the city which is been structured by keeping the peoples interest into consideration so that it becomes a sure shot success. The main target of the business would compromise both the genders and between the age group of 30-55. The major costomers f rour business would be those peope who are very uch caring about their health(HEALTH CONSICIOUS) so it becomes our pririty to understand the needs of these peop-le and cater as per their wish and well being, we are ought find new solutions to make an impact on these peoplea and thus we can finalyy decide the saes revenue ofthe company , an we are sure of the business aking a huge and tremendous business in the long run and thus finalize the future aplans of the comapany ,and make sure that all the strategies are been adopted in the rightfull aorder and we are very confident about being role player an basic instinct in the city.

Competitors: Deccan pearls vlcc Talwarkar health care has been a tremendous business in the city and we are confident all their customers have a same following of health consicious and these people are likely @ be our future prospective customers in the coming days. Gold Gym

Target / selected area of operation 1 deshpande nagar Hubli USP: Cost of the project
Fixed capital

S.No Particulars 1 Land/Building 2 Machinery/Equipment 3 Furniture & Fixtures Total Working capital requirement S.no 1 2 3 Particulars Spa equipments One month expenses Selling and distribution Amount 1,48,834 78,166 1,00,000

Amount 1,44,000 15,19,000 4,00,000 20,63,000

Amount

3,27,000

Total cost of the project

S.No 1 2 3

Particulars Fixed C capital Working Capital Preliminary Expenses TOTAL

Amount 20,63,000 3,27,000 2,70,000 26,60,000

Means of finance

S.No 1 2 3

Particulars Term Loan (SBI) (70%) Own Investment (30%) TOTAL

Amount 21,28,000 5,32,000 26,60,000

Term loans Year 1 2 3 4 5 Principal 4,25,600 4,25,600 4,25,600 4,25,600 4,25,600 12% interest 12 12 12 12 12 Installment 255360 204288 153216 102144 51072 o/s 17,02,400 1276800 851200 425600 0

Profitability projection for 5 years

year 1

S.no

Particulars 1 Sales revenue

Amount

Amount

year2 year3 amoun amoun Amount t amount t 26775 28113 2550000 00 75 1367100 1312416

Less

Cost of service Equipments Manpower Rent Interest Principal Selling and distribution Utilities

1519000 694000 144000 255360 425600 100000 244000

694000 144000
204288

694000 144000
153216

425600
105000 256200

425600
110250 269010

3381960

304376 4

305431 2

Gross loss Less Taxes Net loss

831960

99835.2
931795.2

51868 8 62242. 56 45644 5.4

29711 7 35654 26146 3

year4 year5 amoun amoun Amount t Amount t 29519 309954 44 1 1181174 1063057

694000 144000
102144

694000 144000
51072

425600
99225 242109

425600
104186.3 254214.5

2888252. 4

2736129.6 6

gross profit less tax net profit

63691. 35 7642.9 62 56048. 39

363411 .3 43609. 35 319801 .9

BEP calculation :

Sales revenue - Variable cost UtilitiesSelling DistributionContribution BEP analysis PV Ration = contribution / sales *100 PV Ratio = 22,00,000/2544000*100 = 86.47 BEP (SALES) BEP (sales) = 25,44,000/86.47=29,420 2,44,000 1,00,000

25,44,000

3,44,000 22,00,000

The BEP in years for the business will meet in the beginning of the 4th year.