Note: THIS BOOK IS AVAILABLE IN PHOTOSTAT VERSION ONLY.
Making a choice of the right project is a difficult decision for an entrepreneur and is an imperative decision. For the reason that rest of the challenges for setting up a business is based on the type of the field and fund to invest. Some of the major fields to invest are hospitality, medical, entertainment, ware housing and real estate projects. The hospitality industry consists of broad category of fields within the service industry that includes lodging, restaurants, and additional fields within the tourism industry. Going forward, on a long term basis we would look at raising funds from strategic investors and financial institution. Medical sector in India features a universal health care system run by the constituent states and territories of India. The constitution charges every state with raising of the level of nutrition and the standard of living of its people and the improvement of public health as among its primary duties. Due to the progressive nature of the medical sector in India, several foreign companies are intending to invest in the country. Entertainment industry in India comprises of film industry and television industry. The Indian entertainment industry is among the fastest growing sectors in the country. In the past two decades entertainment industry in India has witnessed explosive growth. Real estate development, or property development, is a multifaceted business, encompassing activities that range from the renovation and re lease of existing buildings to the purchase of raw land and the sale of improved land or parcels to others. Real estate development is different from construction, although many developers also construct. Its economic transformation over the past decade has pushed up real GDP growth to an average of 6% per annum. Therefore these sectors are worlds one of the most imperative sectors which is growing enormously.
The major contents of this book are guidelines on equipment application to various construction operations, requirement of equipment for some typical construction works, multi storey commercial complex along with residential and deluxe flats for foreign tourists and revolving restaurant on the top, commercial markets, motel/small hotels with banquets halls, restaurants and catering facility, three star hotels etc.
Investment opportunities in the book contains guidelines on equipments applications of various construction operations, requirement of equipments for typical construction works material and products requirements, directory of material and equipments suppliers along with 15 very useful project profiles.
Guidelines on Equipment Application to Various Construction Operations
Requirement of Equipment for Some Typical Construction Works
Materials and Products
- Acoustic And Thermal Insulation
- Adhesives and Sealants
- Air Conditioning
- Aluminium Alloys
- Asbestos Cement
- Construction Chemicals
- Construction Equipments
- Doors, Windows and Accessories
- Environment Friendly and Energy Saving Equipment
- Fibre Reinforced Plastic Products
- Fire Protection and Safety
- Floors and Floor Finishes
- Gypsum and Lime
- Plaster of Paris
- Kitchen, Bathroom and Sanitaryware
- Lifts, Conveyors and Escalators
- Paints and Coatings
- Polymers and Plastics
- Precast/Prefabricated Products
- Roofing Systems
- Steel Alloys
- Walls, Partitions and Facades
- Water Supply System
- Wood and Reconstituted Wood
1. Banquet Hall
2. Fast Food Restaurant/Parlour
3. Hotel Industry (Five Star)
4. Holiday Resort
5. Multi-Storey Commercial Complex Along with Residential and Deluxe Flats for Foreign Tourists and Revolving Restaurant on the Top
6. Commercial Markets
7. Motel/Small Hotels with Banquets Halls, Restaurants and Catering Facility
8. Three Star Hotel
9. Nursing Homes
11. Medical College
12. Engineering College
14. Cinema Hall
15. Cold Storage
MOTEL/SMALL HOTEL WITH BANQUET HALL, RESTAURANT AND CATERING FACILITY
The world tourism is the largest single industry of international trade today with increase in educational discretionary income and in leisure and paid holidays. The phenomenal growth of tourism can be judged from the fact that the world spent 360 million dollars on tourism in 1977 as compared to 300 million dollars on armaments.
Mass tourism started in Europe in the late 19th century, but today it is a world wide reality. During last 30/40 years the period which witnessed the arrival of jet global international tourist arrival increased from more 25 million in 1950 to a staggering 213 million in 1975. This worked out on annual average growth rate of 11 percent.
If the some growth rate is maintained through year 2000 A.D. then the affluent and newly affluent the first time travellers and those with time to spare, would begin to move in such numbers at international airports that there are grave doubts whether the industry could cope with them at all.
Present annual growth rate would result in 2,000 million people on the move by the year 2000 A.D. the combined present population of China, India, U.S.S.R., Indonesia, Japan, Brazil, and the U.S.A. Even if the rate slows down to half nearly 6% or so there would still be 1300 million tourists in transit somewhere.
Such a magnitude of increase is accompanied by pressure for facilities for increased numbers. Viewed thus motels become on integral part of tourism infrastructure of any country. As on expert rightly says, "They are indeed the foundation upon which this country is built, yet there is probably no other business taken so much for granted or which appears to an outsider to be so easy to run as the hotel business.
During 19th century, the word (hotel) was synonymous with a private mansion in a city or a town hall. The place which was usually to let out to travellers, was taken (knowingly) as inn, and the keeper in accordance with the existing laws of the land, was obliged to provide shelter and food to those willing to pay price. Large hotels with 500 or 1000 rooms having spacious lobbies, conference rooms, number of restaurants serving different tastes, swimming pools and health clubs are comparatively a recent phenomenon.
BRIEF HISTORY OF MOTEL INDUSTRY
The word Motel is used for any unit providing lodging, boarding facilities on purely commercial basis. So this include variety of units providing services at different levels. As far as approved hotels are concerned, according to Department of Tourism there are 565 hotels with 36,369 rooms.
India is a large country with huge population. The spread of industrial growth and trade make involved people to go from one place to another. The number of people moving for relaxation and sight seeing have also increased.
- Emphasis in organised sector is increasing.
- Middle income group is expanding.
- Importance of leisure tourism is increasing.
- The use of hotel is increasing against Dharmashala etc.
- The transport facilities and tourist agencies are increasing.
- Due to rapid industrial expansion and geographic diversification number of business tourist etc. are also increasing.
MOTEL INDUSTRY IN EASTERN INDIA
Over in latest several years tourist traffic in the eastern region has slowly but steadily declined. The reasons are obvious, the inaccessibility of foreigners to several regions in the northeast which is raddled with political instability the appalling indifference on state government to the needs of tourism industry and lack of good accommodation. Consequently the hotel industry is flattering and large groups are hesitant to investing this region.
MOTEL INDUSTRY IN SOUTH
India as a tourist destination has been for centuries known as the home of the Taj Mahal one of the seven wonders of the world. This perhaps has largely been responsible for the tourists bias of equality the pair and diversified culture and either of the subcontinent to be that of Taj Mahal of the north only. As a consequence of this the majority of the flow of tourists had been, until recently, mostly limited to under taking of the golden tringle - Delhi, Agra, Jaipur. Apart from this Mumbai as the business, commercial capital of India had its own share of the tourists, because of this hotel industry was first to develop in the North.
Refer IS : 6074-1971 code for functional requirement of hotels, restaurants and other food service establishments.
The motel industry in India is inseparably linked with the industrial growth, foreign tourists inflow, growth in the per capita income and also the increasing urbanisation.
Tourism has become an important source of foreign exchange for India. From about Rs.283 crores during 1977 the tourism industry has gone up to as high as Rs. 680 crores during 1982. Of this nearly fifty per cent of the earning its importance.
In the establishment at Hotel, Location is the most important fact as if would finally decide the occupancy and the entire viability of the project. In this respect the number of places in India which offer scope for development of hotels. Such places can be classified in three categories as under:
- Industrial and Commercial towns.
- Hill resorts and sea resorts.
- Pilgrimage Centres.
MARKET POSITION PRESENT & FUTURE SCOPE
The growth in the tourists visiting India is invariably linked up with the structure of facility the number of scenery and historic places and the general condition in the country.
The hotel business in India has done pretty well all these years so much that it has acquired an international reputation. This can be judged from the fact that more countries are seeking Indian collaboration in Hotel business.
Some measures have, however, been taken to provide interest free loans and low interest terms loans are being provided to hotel business by the leading financial and industrial institution] States Governments are also given fully financial help and subsidy to hotel industry.
MANUFACTURING PROCESS OF FOODS
The preparation of food products is an immense industry able to encompass a home-operated business as well as factories and super markets. The advantage of undertaking this aspect of business lies in its accessibility familiarity. No doubt you have most of the equipment necessary in your own kitchen e.g. oven, refrigeration, freezer, large utensils measuring and weighing devices, thermometer etc. Anything that you don't have already can be obtained easily and inexpensively. Thus, your investment is minimal.
For those of you who are not to leave the home, this type of business can be the beginning of an independent income your spouse's favourite dish can be the key to your fortune.
The marketing of food products is relatively easy beginning with friends, relatives, and neighbours, and extending to small retail establishments and local enterprises.
LIST OF SUPPLIERS
M/s. Aggarwal Hardware Works (P) Ltd.,
3-A, Shakespeare Sarani,
Calcutta - 700 071.
M/s. Bombay Building Materials Trading Co.,
73, Nagindas Master Road,
Mumbai - 400 001.
M/s. Supra Enterprises,
32/33, Nehru Place,
New Delhi - 110 019.
M/s. E.T.D. Parry Ltd.,
Chennai - 600 001.
M/s. Metro Malleafle Mfrs. Pvt. Ltd.,
S.J. Park Road,
Bangalore 560 002.
M/s. Ambika Metal Industries,
21/6, Sector 15-C,
Chandigarh - 160 016.
AIR CONDITIONING REFRIGERATION/AIR COOLERS/AIR CURTAINS ICE CUBERS/COOLING TOWERS
M/s. Capital Refrigeration Company Pvt. Ltd.,
203, Swastik Bhawan,
New Delhi -110 008.
Tel : 570 30 76.
M/s. Carrier Aircon Limited,
5, Basant Lok, 2nd Floor,
New Delhi-110 057.
Tel :676 285
M/s. Gas Engineering (Pvt) Ltd.,
37, Naraina Industrial Area,
Phase I, New Delhi -110 028.
Tel : 536 400 / 543 32 67
M/s. Orion Television,
21, Daryaganj, Ansari Road,
New Delhi -2.
Tel : 327 42 78.
M/s. Shanker Brothers,
152, Katra Mashroo,
Tel : 327 91 11.
BUILDING MATERIALS/FITTING (BATH ROOM FITTINGS)
M/s. Kamal Fibre Glass & Sanitary Works,
16/17, College Street,
Calcutta -700 012.
Tel :313 565/322 307.
M/s. Arora Enterprises,
5274, G.B. Road,
Tel : 526 124/527 982/731 078
DETERGENTS/SOAPS/COSMETICS/BRUSHES/BROAMS/VACUUM CLEANERS POLISHES
M/s. Homocol Sales Corporation,
Hs. 36 A, Kailash Colony Market,
New Delhi - 110 048.
Tel : 643 26 21.
M/s. Kailash Brush Factory,
5628, Gandhi Market,
Delhi - 110 006.
Tel: 514 750.
M/s. Mahabir Electric Corporation,
5 A/28, Ansari Road,
New Delhi-110 002.
M/s. New Diamond Electricals,
Old Rohtak Road,
Tel: 533 811.
M/s. Godrej & Boyce Mfg. Co. Pvt. Ltd.,
Sher Shah Suri Marg,
Okhla, New Delhi-110 065.
Tel: 683 03 48/683 07 38.
M/s. Pulary Consultancy RD Unvestments (P) Ltd.,
Post Box 2067, Adyar,
Chennai - 600 020.
Tel: 413 510/416 184.
M/s. Jayco Traders,
C-61, Arjun Nagar (Safdarjung Enclave),
New Delhi -110 029.
M/s. Voltas Limited (Appliances Business Gruop),
19, J.N. Heredia Marg,
Mumbai -400 038.
Tel: 261 81 31.
M/s. Mysore Lamp Works Ltd.,
P.B. No.5551, Old Tumkur Road,
Bangalore -560 055.
Tel: 360 182-6, 366 771-5.
M/s. Bajaj Electrical Limited,
51, M.G. Road,
Mumbai -400 001.
Tel: 204 37 33/204 37 80.
M/s. MAC Decor Pvt. Ltd.,
5, Community Centre,
East of Kailash,
New Delhi -110 065.
Tel: 643 30 67
M/s. Rattan Chand Harjasrai (Moulding) Pvt. Ltd.,
54, Industrial Area,
KITCHEN AID EQUIPMENTS
M/s. Gajanan Canteen Equipments Co.,
A-25, Laghu Udyog Kendra,
I.B. Patel Road,
Mumbai - 400 063.
M/s. Domestic Appliances,
P.B. No. 3330,
New Delhi - 110 014.
M/s. Peeco Enterprise,
8, Wazirpur Indl. Complex,
Delhi - 11052. .PA
M/s. Aru Industries,
533, Poonam Allee High Road,
Chennai - 600 084.
M/s. Shreee Shakti Mfg & Marketing Co.,
11/145, Sastri Road,
Coimbatore - 641 009.
M/s. Shri Raja Lakshmi Industrial Agency,
30/1, S.j. Park Road,
Bangalore - 560 002.
M/s. Ahmedabad Eagle Engineering
Enterprises Pvt. Ltd.,
M/s. Airconditioning Corpn. Pvt. Ltd.,
8/12, New Alipore Road,
Calcutta - 700 053.
M/s. Godrej & Royee Mfg. Co. (P) Ltd.,
Mumbai - 400 001.
M/s. Llyod Sales Corpn.,
15, Pycrofts Garden Road,
Chennai 600 006.
M/s. Bajaj Electricals Ltd.,
45-47, Veer Nariman Road,
Mumbai - 400 001.
M/s. Sansar Fans Industries,
M/s. Micro Moters,
Secunderabad - 3.
M/s. Starch & Allied Industries,
308, Kharckh Bazar,
Mumbai - 9.
9, 5th Block,
Kumara Park West,
Bangalore - 20.
LAND & BUILDING
|1.||Land requirement 311 sq. yard (@Rs. 800/- per sqft)||Rs.||7,46,400.00|
|2.||Covered Area (Basement + 2 1/2 storey) 1620 sq.ft.||Rs.||32,40,000.00|
|3.||Miscellaneous constructions||Rs. ||4,00,000.00|
PLANT & MACHINERY
|1.||Kitchen equipments & appliances||Rs. ||2,50,000.00|
|2.||Furniture and wood work||Rs. ||4,00,000.00|
|3.||Bath rooms fittings and sanitary wares (including 32 geysers)||Rs.||5,00,000.00|
|4.||Telephone & intercomes||Rs. ||1,00,000.00|
|6.||20 Coolers+13 room Air conditioners @ Rs. 2,500/- & Rs. 30,000/- each respectively)||Rs.|| 4,40,000.00|
|7.||20 T.V. (B/W) and 13 Colour||Rs. ||3,00,000.00|
|8.||Matresses, Carpets and Furnishing||Rs. ||2,00,000.00|
|9.||Workshop tools, Machines and other equipments ||Rs.||4,00,000.00|
|10.||Room/Restaurent decoratings||Rs. ||5,00,000.00|
OTHER FIXED ASSETS
|1.||Office equipment, furniture plus other equipment & accessories||Rs.||2,00,000.00|
|2.||Architectural design expenses||Rs. ||3,00,000.00|
|3.||Installation charges, Resgistration chrages ||Rs.||5,00,000.00|
|1. ||Land & Building||Rs.|| 43,86,400.00|
|2.||Plant & Machinery||Rs. ||32,90,000.00|
|3.||Other Fixed Assets||Rs.|| 12,50,000.00|
WORKING CAPITAL REQUIREMENT/MONTH
|1.||Different type of vegetable items||Rs. ||30,000.00|
|2.td]Purchasing of Non-veg Items||Rs. ||60,000.00|
|3.||Purchasing of different type Casset||Rs. ||10,000.00|
|4.||Spray scent||Rs.||5,000.00 |
|5.||Cold Drinks (3000 bottles average)||Rs. ||16,500.00|
|6.||Room cleaning Items||Rs.|| 5,000.00|
|7.||Other misc. expenses||Rs. ||25,000.00|
SALARY & WAGES / MONTH
|1.||Manager (Hotel)||1 No.||Rs. ||10,000.00|
|2.||Workshop Incharge ||1 No.||Rs. ||5,000.00|
|3.||Engineer (Electronics)||1 No.|| Rs.||5,000.00|
|4.||Technician||3 No. ||Rs.||15,000.00|
|5.||Receptionist/Operator||3 No.|| Rs.||12,000.00|
|6.||Clerk||1 No.||Rs.|| ||3,500.00|
|7.||Watchman||2 No.||Rs.|| 5,000.00|
|8.||Cooks||4 No.||Rs.|| 16,000.00|
|9.||Waiters||10 No.||Rs.|| 25,000.00|
|10.||Cleaners, Sweepers etc.||3 No.|| Rs.||6,000.00|
|11.||Store Keeper||2 No.||Rs. ||6,000.00|
|12.||Automobiles machanic||1 No.|| Rs.||4,000.00|
|TOTAL ||Rs.||1,12,500.00 |
|Plus perks @ 20% p.a.||Rs.||22,500.00 |
UTILITIES AND OVERHEADS
|1.||Power Consumption of 1500 Kwatt hrs @ Rs. 4.00 per Kwatt hr.||Rs.||6,000.00|
|2.||Water Consumption of 1000 KLs @ Rs. 2.00 per KL||Rs.||2,000.00|
Total load is 4 Kwatts
TOTAL WORKING CAPITAL/MONTH
|1.||Raw Material||Rs.||1,51,500.00 |
|2.||Salary & Wages||Rs.||1,35,000.00 |
|3.||Utilities & Overheads||Rs.|| 13,000.00|
|1.||Working Capital for 3 months||Rs. ||8,98,500.0|
|2.||Margin Money for W/c Loan||Rs.|| 2,24,625.00|
COST OF PROJECT
|Total Fixed Capital||Rs.||89,26,400.00 |
TOTAL CAPITAL INVESTMENT
|Total Fixed Capital||Rs.||89,26,400.00 |
|Total Working Capital for 3 Months||Rs.|| 8,98,500.00|
|1.||From Rent of 30 rooms @ Rs. 500/- per day (Average)||Rs.||54,00,000.00|
|2.||Vegetarian diet 50 diet/day @ Rs. 40/- per diet||Rs.||7,20,000.00|
|3.||Non-Veg. Diet @ Rs.25/- per diet. 100 Diet/day||Rs.||9,00,000.00|
|4.||Coffee 200 cup per day @ Rs. 8/- per cup ||Rs.||5,76,000.00|
|5.||Other eatables(Snacks & break fast) @ Rs. 15/- per head 50 Nos.||Rs.||2,70,000|
|6.||Cold Drinks 100 Nos. @ Rs. 10/-||Rs. ||3,60,000.00|
|7.||Servicing charge (Automobiles)||Rs. ||15,00,000.00|
RATE OF RETURN = 33.63%
B.E.P. = 51.71%
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