PROJECT REPORT

FOR F. L. ON SHOP & F. L. OFF SHOP

BY

Shri Rahul Kumar Burnwal

SITUATED AT :
ASANSOL, MOUZA : ASANSOL
WEST BENGAL

JUNE-2013

Page 50 of 11
 ►PROJECT AT GLANCE

 NAME OF THE CONCERNS : M/S RAHUL KUMAR BURNWAL.

 ADDRESS : OFFICE ,
32, samiran Road, Asansol
Burdwan, West Bengal

SHOP ADDRESS,
Asansol, Mouza : Asansol
Burdwan, West Bengal

 CONSTITUTION : Proprietorship.

 NAME OF THE PROPRIETOR : Sri Rahul Kumar Burnwal.

 NATURE OF ACTIVITY : F. L. On Shop and F.L. Off Shop.

 PROJECT COSt :

COST OF PROJECT Rs.in Lacs

Term
Sl. Broad Heads of Expenditure Cost Margin Margin Loan
Rs.in
No.   Lacs % Amount Amount
1 Land & Land Development 0.00 100.00% 0.00 0.00
2 Civil Construction & Shed 25.00 40.00% 10.00 15.00
3 Plant & Machinery 0.00 25.00% 0.00 0.00
4 Miscellaneous Fixed Assets 25.75 25.00% 10.30 15.45
HARD COST PROJECT 50.75
5 Contingencies 0.00 100.00% 0.00 0.00
6 Preliminery & Pre-operative Exp. 3.00 100.00% 0.00 0.00
7 Margin for working capital 10.50 100.00% 10.50 0.00
SOFT COST OF PROJECT 13.50
   
TOTAL COST OF PROJECT 64.25   33.80 30.45

 MEANS OF FINANCE :
 MEANS OF FINANCE
    Rs.in Lacs
1 Proprietors Capital 34.25
2 Unsecured Loan 0.00
OWN CONTRIBUTION 34.25
   
Term Loan From Banks / Financial
3 Institution 30.00
OUTSIDER CONTRIBUTION 30.00
 
TOTAL MEANS OF FINANCE 64.25

INDICATORS
1 Debt-Equity Ratio 0.88
2 % of Internal Accruals 53%
3 % Of Debt Fund 47%
 NO. OF WORKING DAYS : 300 Days .

 TERM LOAN : Rs. 30.00 Lakhs.

 PURPOSE OF TERM LOAN : For construction of Shop and godown.

 WORKING CAPITAL : 33.00 Lakhs

 MORATORIUM PERIOD : 2 months from the date of operation.

 REPAYMENT OF TERM LOAN : 60 equal monthly installments.

 DEBT SERVICE COVERAGE RATIO : 6.77

► INTRODUCTION

Shri Rahul Kumar Burnwal son of Shri Bijay Kumar Burnwal aged about 24 years is a graduate
and is engaged in the business of general order supply from last three years. He belongs to a
old business family of Asansol and his father is a prominent business personality in Asansol.
Shri Rahul Kumar Burnwal is planning to set up a Foreign Liquor On Shop and Foreign
Liquor Off Shop at Asansol and has applied for License to open such shop with the West
Bengal State Excise Department which is the authority to issue such license.

Shri Rahul Kumar Burnwal has taken on lease land of approximate area of 5 Cottah and 6
Satak from Bajrang Highrise Private Limited with a small building constructed on it. Existing
structure is proposed to be modified/altered as per the sanctioned plan and approved plan of
the Excise department for issue of license.

Foreign Liquor On Shop is proposed to be built up over a total area of 2200 Sq. ft. with a Bar
counter.

Foreign Liquor Off Shop will be provided with a shop counter for selling of liquor.

Separate godowns will be constructed for both the On Shop and OFF Shop.

► ABOUT PROPRIETOR

NAME : SRI RAHUL KUMAR BURNWAL

FATHER’S NAME : Sri Bijay Kumar Burnwal
ADDRESS : 32, Samiran Roy Road, Asansol
Dist: Burdwan.
AGE : 24 Years
QUALIFICATION : Graduate
► ABOUT THE PRODUCTS

Wine & Beer

Wine
The average per capita consumption of wine is 4.6 ml, a little less than contents of a medicinal
syringe per person. Ten years ago, the market for wines did not exist. But by the next two
years, it could rise to as much as 7 ml. Domestic cheap wines constitute 150,000 cases per
annum, domestic wines of international standard (produced by Sula, Grover) comprise
160,000 cases, wines imported in bulk and bottled here constitute 15,000 cases and imported
wines comprise 50,000 cases. Wines have grown at 22% annually. The potential for wine sales
in India is considered to be very large. The super premium segment with wines retailing for Rs
550 to 650 accounts for 12,500 cases with premium wines (price Rs 300/450) being a 50,000
case market. With an annual growth of about 30% since 1997, the wine market is showing a
healthy upswing. Indage commands 75% of the market, while the balance is shared by Sula
Vineyards and Grover Vineyards.  Chateau Indage is introducing a white wine, Rhine Pride.
About 50,000 bottles of Rhine Pride are expected to be sold in one year.  This is the result of a
joint venture between Chateau Indage and the German partners, Peter Meters, Bernakastel. It
is a two-way joint venture:  bulk bottling of the Indian wine produced by Indage will be sold
under the brand name Angoori in Germany and Rine Pride will be bottled and sold by
Chateau in India.

The UB group is now trying to strongly position McDowell in the wine market. It has a
presence in the wine market through its alliance with the Italian wine maker, Bosca. The $100
million Sogrape group, owner of Mateus Rose - the largest branded wine in the world with
sales of over one mn cases a year, is holding talks with the United Breweries group for a
possible tie-up.

Rampur DistillerieS has distribution tie-up with Ernest & Gallo the company
envisaged importing ten of the foreign company's popular wine brands including Carlo Rossi,
Turning Leaf, Wine Cellars and Gallo of Sonoma Country. Moet-Hennessy, the makers of
Champagnes and Cognacs, set-up a subsidiary in India in anticipation of the lifting of
quantitative restrictions from April 2001. The arm called Moet-Hennessy India is a subsidiary. 
Its champagnes include the famous Dom Perignon, and others like Moet and Chandon,
Mercier and Ruinart. Major Cognac brands include Hennessy.  Moet Hennessey's market
share is in the region of 30% of the champagnes market.      Wine specialist, Astoria of
Italy, was planning to enter into India and to introduce seven wine variants, such as Fragound
Rosso, Cold Lemon Wine and Blanco, which include table and sparkling wines.

Beer
Presently, some 36 units are manufacturing beer in India with an estimated output of 670 mn
litres. The market for beer in India was about 65 mn cases of 12 bottles each and was  slated to
touch 90 mn cases in 2002-03.   In consumption, India holds the 29th position with the annual
consumption growing by 8% per year. Per capita consumption of beer is as low as half-a-litre
as against 128 litres in Germany, 129 litres in New Zealand and 116 litres in Denmark. Even
China has a per capita consumption of 20 litres.
The Indian beer industry has shifted towards the strong beer segment. The ratio in mild-strong
beer has shifted from 66:34 in 1993-94 to 45:55.  In the mild beer, segment, Kingfisher, Golden
Eagle and Royal Challenge are the main brands.  In the strong beer segments   Haywards
5000, Haywards 2000, Knockout, Khajuraho are dominant.  In the standard segment of over 55
mn cases, United Breweries has the lion's share.

Major brands of Mysore Breweries include Knockout, Bengal Premium, Pals Premium, and
Seven Stars. It has two breweries in Aurangabad and Bangalore, with a total capacity of
450,000 hl. Mysore Breweries was to set up its third brewery in Andhra Pradesh, the fastest
growing beer market.  Mysore Breweries and Singapore-based subsidiary of Heineken NV,
Asia-Pacific Breweries, which manufactures the popular Tiger brand, are exploring the
chances of setting up of a joint venture.  Dutch-based Heineken NV is the world's second
largest international brewing group with production from more than 110 breweries
spread over 50 countries. Heineken's three international brands, Heineken, Amstel and
Murphy's, are the most popular brands. Its regional brands include, Cruzcampo, "33" Export,
Moretti, Zywiec and Tiger, the largest regional brands in Asia. The brand portfolio comprises
a total of over 80 brands.
Global majors, Stroh Brewing Co of the US and Henninger Brau AG of Germany, have already
launched their products. Others like Fosters Brewing group of Australia, South African
Breweries have either set up subsidiaries or have gone in for tie-ups.

Haake Beck, entered India through a technical tie-up between Brauerei Beck of Germany and
Indian Him Neel Breweries, through a 0.15 mn hectolitre plant at Himachal Pradesh ( at an
investment of  Rs 550 mn).  Haake Beck is sold in non-returnable, lightweight, takeaway 650
ml and 330 ml glass bottles, an innovation where recycled bottles has been the norm.
UB’s two beer brands, Kingfisher and Kalyani Black Label, enjoy one-third of the market.
Kingfisher alone commands 18% of the market.   Shaw Wallace, Mohan Meakin and   Mysore
Breweries also enjoy a significant market presence.

Australian Beer Company Foster’s launching of premium lager beer in India is targeting 15%
growth in sales. Recently the company launched Amberro in India. Foster's premium lager
mild claims to enjoy good market shares in several states. Foster India has evinced interest
in introducing Foster's other international brands including Crown Lager, Foster's Ice,
Subzero, Carlton Cold and Victoria Bitter.   Foster’s had set up a brewery at Aurangabad.
Shaw Wallace has a presence of 40% in the strong beer and premium beer segments with
Haywards 5000 and Haywards 2000 being the market leaders in their respective segments. It
has plans to launch its beer in the US market under the brand name Kohinoor. SWC had
earlier launched its beer, Lal Toofan, in the United Kingdom in 1993. The brand enjoyed a
remarkable success and has since been extended to other markets like France. The company
has a bagful of beer brands, which include Royal Challenge.

 Beer Demand: Past & Future

Year Kls
1990-91 201
1991-92 208
 1992-93 224
1993-94 305
1994-95 272
1995-96 362
1996-97 391
1997-98 422
1998-99 456
1999-00 493
2000-01 528
2001-02 565
2002-03 632
2003-04 676
2004-05 723
2005-06 770
2006-07 820
2007-08 875
2008-09 930
2009-10 985
2014-15 1320
 
Market Structure
Market Segmentation
Segment Share (%)
North 12
East 2
West 37
South 49
Standard Beer 45
Strong Beer 54

Leading Brands
Kingfisher, Heywards 2000, Heywards 5000, Kalyani Black Label, Kalyani Strong, Golden
Eagle, Black Knight, Pelican, London Diet, Thunderbolt, Kaiser, Pilsner, Haake Beek, Lal
Toofan, Castle Beer, Hi-Five.

Market Growth Rates

1990-91 - 1996-97 11.70%
1996-97 - 2001-02 7.60%
2001-02 - 2006-07 7.70%
2004-05 - 2009-10 6.40%
 2009-10 - 2014-15 6.00%

Lead Players & Alliances

United Breweries, Carlsberg Denmark, Kingfisher Properties, Skol Brew, Mohan Breweries &
Dist, Mohan Meakins, Shaw Wallace, Associated Breweries, Mount Shivalik, Inertia Inds,
Winsome Brew, Heminger Brau Ger, Fosters India, Lilasons
► PROJECT DETAILS