Group 2| PGPBA Batch 2018-20

Capstone Project By-

Aditya Karpe- IGTCMU27PG009
Ajinkya Shewale- IGTCMU27PG013
Prajakta Sontakke- IGTCMU27PG053

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 Acknowledgements
We would like to express our gratitude towards everyone who supported us throughout the course of this
Capstone project. This project would not have been completed without the kind support and help of may
individuals; we are truly grateful and would like to extend our sincere thanks to them.

We thank Mr. Sagar Narsian and Mr. Shuaib Fakhi who guided us throught the course of the project. We
thank all the faculty members at Indo German Training Center for the lessons they taught which enabled us
to execute this project. We thank the staff members who readily helped us.

We would like to extend our gratitude towards Mr. Yatin Sawant- Joint Commissioner Excise Department,
Fort, Mumbai, for taking out valuable time from his busy schedule to clarify inky all our queries and
shedding light on the legal aspect of the project. We thank Mr. Ambarish (IGTC Alumni) for giving us
valuable insights on similar business. It really helped us shape our project.

We learnt a lot during the course of this project and the support from all these individuals further motivated
us to do better. We are extremely grateful.

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Contents
1. Introduction ........................................................................................................................................... 4
2. Executive Summary ................................................................................................................................ 5
3. Product Description ............................................................................................................................... 6
4. Industry Analysis .................................................................................................................................... 7
4.1: Indian Alcohol Industry ....................................................................................................................... 7
4.2: Competition ........................................................................................................................................ 9
4.3: PESTEL Analysis ................................................................................................................................. 10
4.4: Five Forces Analysis........................................................................................................................... 11
4.5: Demand Estimation ........................................................................................................................... 14
5. Marketing Plan..................................................................................................................................... 16
5.1: Defining 4P’s ..................................................................................................................................... 16
5.2: Segmentation, Targeting and Positioning .......................................................................................... 20
5.3: CBBE Model ...................................................................................................................................... 24
6. Land and Location ................................................................................................................................ 25
7. Manufacturing Process and Layout ...................................................................................................... 26
7.1: Factory and Office Layout.................................................................................................................. 26
7.3: Process flow and Production ............................................................................................................. 28
8. Projected Cost...................................................................................................................................... 30
9. Projected P&L ...................................................................................................................................... 30
10. DCF and Profitability ............................................................................................................................ 31
Annexure 1- Licenses ............................................................................................................................... 32
Annexure 2- Assets .................................................................................................................................. 32
Annexure 3- Sales .................................................................................................................................... 34
Annexure 4- RM cost................................................................................................................................ 34
Annexure 5- Employee Expense ............................................................................................................... 37
Annexure 6- Admin Expense .................................................................................................................... 38
Annexure 7- Utilities ................................................................................................................................ 39
Annexure 8- Transport Cost ..................................................................................................................... 40
Annexure 9- Marketing Cost .................................................................................................................... 42
Annexure 10- Net Working Capital ........................................................................................................... 42
Annexure 11- Organizational Chart .......................................................................................................... 43

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1. Introduction

To be a consumer today is a glorious thing. Innovation is everywhere and the abundance of choice has never
been so plentiful. For brands, however, staying top of mind and in shoppers’ baskets amid this proliferation
of choice has never been more challenging. And looking across consumer packaged goods (CPG) categories,
few could be considered as jam-packed with competition as the alcoholic beverage category.

While price is likely the most well-established purchase driver across the CPG space, convenience often runs
a close second. And from a retail perspective, it’s an attribute that’s boosting sales in categories that
previously weren’t very convenient.

Think about your favorite martini, or perhaps a particular variation of the Mojito. To get one—and a good
one—you’ve traditionally had to rely on a good mixologist. But RTD cocktails will help you give the benefits
that the beer drinkers have enjoyed since decades- the convenience of a can and the portability and
availability too. Newer alternative packaging—cans, boxes; Tetra Pak, etc.—are playing a role as well, as
they provide for more convenient and portable options.

In India, we don’t have much competition for this particular category as most people prefer drinking
cocktails at bar or restaurants as it is time-consuming and requires skills to prepare at home.

Consumers want to enjoy the cocktail experience do not wish to keep the ingredients at home and go
through the process of making a fine cocktail, ready to drink alcoholic beverages provides conveniences of
already blended cocktail and offers products at a fraction of price of cocktails available in bars, clubs and
other recreational places.

Consumers are looking for convenience, and ready-to-drink cocktails provide consumers with something
they’ve historically had to be at a bar or restaurant to enjoy. Across the board, however, the common bond
for success is standing out from the crowd and meeting changing consumer needs.

Tipsy Tales via their product line of RTD canned cocktails is looking to provide just this and fill in the gap
between the consumer requirements and market options. We have conducted primary as well as secondary
research to determine the estimated demand and the preferences of people regarding the type of drink,
flavor etc.

We spoke to multiple bars and restaurants and other industry experts to know the demand for cocktails
including Joint Commissioner of Excise Department of Mumbai. We have conceived these variants of Tipsy
Tales through insights from multiple people and sound research.

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2. Executive Summary

The idea for this concept came through one of our personal experiences when at a house party after that
guy who makes the best cocktails left. The people still at the party were clueless as to what to do and had to
go back to the same old beer can. This has happened a lot of times when we have no option other than
visiting a restaurant or a bar in order to get a good cocktail. In today’s times dressing up, braving the traffic,
making reservations, etc. is just too much effort. And the worst part is that after you visit the restaurant
either the cocktail is not available or the bartender is different or the blend is just not right. Disappointing
right!

We at Tipsy Tales have curated just the right solution to solve this problem. We have designed a range of
cocktail variants which are packed in cans. Yes you can just enjoy this anywhere, at home, social events,
parties, etc. We promise you that the blend curated is close to perfect as the best mixologists have designed
the blend. The ingredients used in the cocktail are premium and safe. Our in-house RnD experts approve
each batch after testing it and only then it goes for selling.

Tipsy Tales has designed a state of the art manufacturing facility to concoct these cocktails. At each step
quality is taken care of. Our supply chain ensures that our cocktails reach you. Our entire staff is driven to
work towards making a product that pleases your taste buds.

We also encourage responsible drinking and abide by the laws of the land. We have installed a Wastewater
treatment plant in the facility to do our bit for the environment.

We promise you that each of your social meet will have a tale to tell.

So Happy Tipsying!!!

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3. Product Description

As the name suggests Ready to drink (RTD) cocktails are premixed cocktails which have alcohol content
ranging from 3% to 30%. RTD’s are widely popular owing to the convenience the product provides. One does
not need to procure and store any ingredients, look up a great cocktail recipe online, use measuring cups
etc. to accurately measure and pour the required quantity of the ingredient, ensure consistency in the taste
of each drink, even feel the intimidation while preparing a batch for a large crowd or rely on that one good
friend to prepare the cocktail. An RTD cocktail would eliminate each of these issues at once. The added
benefits are of course portability, lower alcohol content, standard taste, etc. Further details are pertaining
to the product are explained in the product category of the 4P’s.

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4. Industry Analysis

4.1: Indian Alcohol Industry

The Indian liquor industry is one of the most vibrant in the world. The array of liquor sold in India is dazzling
and demand for the same is growing among affluent Indians. India is one of the top markets for higher
consumption and growing rapidly. Rapid increase in urban population, sizable middle-class population with
rising spending power, and a sound economy are certain significant reasons behind an increase in
consumption of alcohol in India.

The Indian consumer has come of age and is being moving towards international liquor brands which want
to do their best to deserve his respect. Indian consumer has travelled abroad, seen the best, experienced
the best, and want to enjoy the best in the company of friends. Among the young generation, drinking often
is a prerequisite to socialising and networking.

The experience-driven consumer purchases a beverage that is in the premium and deluxe segment. People
in this demographic are usually younger than those in the former segment many being in their 20's and are
employed in prestigious jobs or are college students from relatively well-off backgrounds. They regularly
experiment by consuming different brands and hence are not completely won over by a single brand. Such
consumers are also open to consuming brands they have not tried before and they can be won over by new
brands when brands offer better value such as attractive packaging, superior blend, a better consumer
experience, and other high-value offerings. Many new brands have gained traction in this segment because
consumers in this segment prefer such new brands and because they are open to experimentation.

Price point led consumers are very price-sensitive and, unlike brand-name led consumers and experience led
consumers, display no brand loyalty. Members in this segment regularly close their workday by consuming
liquor and have incomes that are far lower than those of people who consume branded liquor and
experience led consumers. Many such consumers fall in the lower middle class and many are also daily
laborers. They don’t have any brand loyalty and will easily switch from one brand to another as long as doing
so saves them money.

In understanding consumers in these segments sit’s crucial to remember that consumers are not a
permanent part of anyone segment. In reality, as incomes grow, consumers who were motivated to
purchase liquor only because of its low price grow to be motivated by experience and at even higher income
levels become driven to purchase liquor because of the brand under which it is sold. New trends also reveal
that younger consumers of liquor are less conscious of price and become experience led consumers directly,
thereby skipping the stage where consumers are driven only by price. Trends also indicate that young
consumers, who earlier may have preferred to drink beer or vodka, today are just as likely to consume
whiskey.

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The Indian alcohol industry is segmented into IMFL (Indian made foreign liquor), IMIL (Indian made Indian
liquor), Wine, Beer and imported alcohol. Imported alcohol has a share of around 0.8% in the Indian market.
The heavy import duty and taxes levied to raise the price of imported alcohol to a large extent. Alcohol is
exempted from the taxation scheme of GST.

The Indian alcohol market is growing at a CAGR of 8.8% and it is expected to reach 16.8 billion liters of
consumption by the year 2022. The popularity of wine and vodka is increasing at a remarkable CAGR of
21.8% and 22.8% respectively. India is the largest consumer of whiskey in the world and it constitutes about
60% of the IMFL market.

Though India is one of the largest consumers of alcohol in the world owing to its huge population, the per
capita alcohol consumption of India is very low as compared to the Western countries. The per capita
consumption of alcohol per week for the year 2016 was estimated at 147.3 ml and it is expected to grow at
a CAGR of 7.5% to 227.1 ml according to our estimates.

The states of Andhra Pradesh, Telangana, Kerala, Karnataka, Sikkim Haryana and Himachal Pradesh are
amongst the largest consumers of alcohol in India. The most popular channel of alcohol sale in India is liquor
stores as alcohol consumption is primarily an outdoor activity and supermarkets and malls are present only
in the tier I and tier II cities of India.

The trends and pattern of alcohol consumption are changing in the country. With the increasing acceptance
of women consuming alcohol, the growing popularity of wine and high demand for expensive liquor, the
market scenario seems to be very optimistic in the near future. We conducted a consumer research study
for the alcohol market with around 1,000 respondents from the cities of Delhi, Chandigarh, Mumbai, Pune,
Hyderabad, Kolkata and Bangalore.

Indirect competition: Indirect competitors for Cocktails are alcohol consumed at home and alcohol and
cocktails consumed at Bars and restaurants at large. These alcohols contain majorly Whiskey, Beer, Vodka,
Gin, Scotch, wine, Brandy etc.

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Below Graph gives shows the consumption pattern for Indian consumers for at-home vs out of home
consumption of alcohols.

4.2: Competition

Direct Competition:

Major Direct competitors to our product is Breezer and Rio(wine-based spritzer).

Bacardi Breezer is fruit-based alcohol with close to 10 flavors are available in India. Alcohol content in
Breezer is less when compared to normal cocktails but it is one the successfully retailed product in this
segment. Breezer is known in the market for a very long time and well-established product with a set of
regular customers. % of alcohol content in Breezer is about 5%.

Rio Italian brand Presented India’s very own range of wine spritzers. These fizzy refreshing coolers have wine
infused with club soda and a dash of fruit in three exciting flavors. A Rio Spritzer is perfect for turning down
the heat and turning on the fun! It comes with three flavors in India and growing its consumption through
retail outlets. % of alcohol content in spritzer is about 4%.

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 4.3: PESTEL Analysis

PESTEL analysis of Indian Alcohol Industry, November 2019

Factors Explanation Impact on Industry Implication on Tipsy Tales

Political

Frequent misue of alcohol during

elections to influence voters and poor
1. Lack of regulation We will have to take
quality production leading to alcohol
poisoning stringent quality
measures throught the
value chain
Dry days during festivals, elections,
2. Decleration of dry days specific days and declared on short
notice can impact business
Ecomomical

The proposal of a product

The disposable income of the people
which is not seen before
1. Increase in disposable is increasing and with that their ability
in the market will be
income & willingness to try out new things and
received positively given
experiences.
the scenario.
Social
There is an increase in number of
Be the right product they
people consuming alcohol and even in
1. Celebration of various require to celebrate
the type of alchol consumed.
occasions these occassions at the
Apart form this, the way in which
right price
alcohol is consumed is also changing
The new generation is open to new
Set up a basket of
things and seeks experiences. The
2. Demand for variety product as per the
cocktail culture is rising not just in
requirments
India but all through out the world.
Legal
This will hamper the
The alcohol laws in India are strict and
1. The laws are strict and profit percentage as the
are subject ot heavy taxation in almost
taxation heavy selling price has to be
every state
controlled
Securing permissions,
Lot of grey area, corruptions regarding cost of licenses and other
2. Bureaucratic Involvement
licenses and permissions regularites will cause
hindrance

The PESTEL analysis shows us that the industry is favorable. The legal aspect has to be looked after and
carefully evaluated

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4.4: Five Forces Analysis

1. Threat of new entrant: Barriers to entry

Forces Explanation Power

Supply-side There are no packaged cocktail provider present in India but players Moderate
economies of like Breezer, Rio and also indirect competitors such as Liquor
scale providers are largely available

Demand-side Cocktail consumption is also increasing with increase in alcohol High

benefits of consumption in India
scale

Customer Switching cost is low as consumers can easily switch to other liquor High
switching cost providers but for cocktails it is high

Capital Campaign expenses for alcoholic beverages to produce is very high. High
Requirements

Incumbency Breezer and Rio being International Players have very strong Low
advantages foothold in Indian Market

Unequal Access Pushing a new product from existing distribution markets are very High
to distribution difficult and would have to provide higher margins
channels

Restrictive Alcohol business is strongly dominated by Government policies and High

Government regulations
Policy

Barriers to entry for a cocktail business in the Indian landscape is HIGH. Therefore, the Threat of a
New Entrant is Low.

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2. Power of Suppliers – Alcohol Manufacturers, Flavors, packaging

Forces Explanation Power

Concentration of Suppliers are not entirely concentrated but 55% alcohol business Moderate
suppliers is dominated by only 5-6 major players.

Are suppliers Each state government has a lot of restrictions on the production High
dependent on of alcohol and related beverages and therefore large pool of
Government for supplier is dependent on government.
supply control

Switching Costs Switching cost is relatively low as there are many manufacturers Moderate
available for alcohol as well as flavors.

Power of Suppliers for Indian cocktail Industry is MODERATE.

3. Power of Buyers – End consumers

Forces Explanation Power

Number of As per the WHO report, 30% of Indians consume alcohol, out of High
buyers which 4-13% are daily consumers

Switching Costs Consumers have very low switching costs for straight-up drinks Moderate
but for cocktails, it is very high

Buyer’s Choice Though switching cost is low but when compared to cocktail, a High
higher price means premium brand

Power of Buyers of Indian cocktails is High.

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 4. Rivalry Among Existing Competitors

Forces Explanation Power

Size, power, There are only two direct competitors Breezer and Rio but they Moderate
number of operate in low concentrated alcohol business. In Indirect
competitors competition such as whiskey, vodka etc. market is dominated by
5-6 major players which contributes to 55% of market share.

Industry growth Cocktail culture is growing in India with also continuous increase Low
in alcohol consumption.

Exit Barriers Exit barriers are low for Alcohol providers Moderate

Reading Signals Alcohol providers read market tapping by other players and Low
change in consumer requirements and continuously changing
product offerings.

Rivalry among existing competitors in Indian cocktail industry is low

5. Threat of substitutes

Forces Explanation Power

Performance of There are a lot of substitutes available in the market like High
the substitute nonalcoholic beverages, liquor like beer, whiskey, wine, rum,
product breezers etc. These provide similar convenience and satisfy the
same core need.

Cost of change Cost of change is low as most of these fall in an affordable range. High

Threat of substitutes for Indian cocktail industry is High

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 4.5: Demand Estimation

Alcohol consumption in India is slated to grow. The alcohol industry is growing at a CAGR of 7%. The Per
capita annual consumption of alcohol in India is about 5.1 L. Below are the details of alcohol consumption in
liters in major Indian cities.

Base Year Plant Setup Year Op. Yr 1 Op. Yr 2 Op. Yr 3 Op. Yr 4 Op. Yr 5
Consumption (Ltrs)
2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25
Mumbai City and Suburbs 99,400,800 106,358,856 113,803,976 121,770,254 130,294,172 139,414,764 149,173,798
Pune 63,838,000 68,306,660 73,088,126 78,204,295 83,678,596 89,536,097 95,803,624
Bangalore 42,993,000 46,002,510 49,222,686 52,668,274 56,355,053 60,299,907 64,520,900
Delhi, Gurgaon 101,372,700 108,468,789 116,061,604 124,185,917 132,878,931 142,180,456 152,133,088
Hyderabad 34,731,000 37,162,170 39,763,522 42,546,968 45,525,256 48,712,024 52,121,866
Chennai 36,159,000 38,690,130 41,398,439 44,296,330 47,397,073 50,714,868 54,264,909
Kolkata 22,950,000 24,556,500 26,275,455 28,114,737 30,082,768 32,188,562 34,441,762

Tipsy Tales aims at capturing the market share in these cities with respect to the below stated percentages
and its conversion to liters of cocktail.
Operating Yr 1 Operating Yr 2 Operating Yr 3 Operating Yr 4 Operating Yr 5
Target Market (%)
2020-21 2021-22 2022-23 2023-24 2024-25
Mumbai City & Suburbs 0.50% 1.00% 1.20% 1.50% 1.70%
Pune 0% 0.50% 0.70% 1.00% 1.20%
Bangalore 0% 0.25% 0.50% 0.75% 1.00%
Delhi, Gurgaon 0% 0.25% 0.50% 0.75% 1.00%
Hyderabad 0% 0% 0.25% 0.50% 1.00%
Chennai 0% 0% 0.25% 0.50% 1.00%
Kolkata 0% 0% 0.20% 0.40% 0.70%

Operating Yr 1 Operating Yr 2 Operating Yr 3 Operating Yr 4 Operating Yr 5

Target Market (Ltrs)
2020-21 2021-22 2022-23 2023-24 2024-25
Mumbai City & Suburbs 569,020 1,217,703 1,563,530 2,091,221 2,535,955
Pune - 391,021 585,750 895,361 1,149,643
Bangalore - 131,671 281,775 452,249 645,209
Delhi, Gurgaon - 310,465 664,395 1,066,353 1,521,331
Hyderabad - - 113,813 243,560 521,219
Chennai - - 118,493 253,574 542,649
Kolkata - - 60,166 128,754 241,092

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The standard cocktail can manufactured by Tipsy Tales can hold 330ml of liquid. Thus the above target
market capacity has been converted to demand in terms of number of cans.

Operating Yr 1 Operating Yr 2 Operating Yr 3 Operating Yr 4 Operating Yr 5

Demand (No. of Cans)
2020-21 2021-22 2022-23 2023-24 2024-25
Mumbai City & Suburbs 1,724,303 3,690,008 4,737,970 6,337,035 7,684,711
Pune - 1,184,914 1,775,001 2,713,215 3,483,768
Bangalore - 399,002 853,864 1,370,452 1,955,179
Delhi, Gurgaon - 940,802 2,013,317 3,231,374 4,610,094
Hyderabad - - 344,888 738,061 1,579,450
Chennai - - 359,069 768,407 1,644,391
Kolkata - - 182,320 390,164 730,583
Total 1,724,303 6,214,726 10,266,429 15,548,709 21,688,176

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5. Marketing Plan

5.1: Defining 4P’s

Product:
Quality: The cocktails are going to be made and packed completely on automatic machines and there will be
no human intervention in the process. The ingredients used are of high quality and the mixture is developed
with the help of top mixologist. This ensures the elimination of inconsistency that presents itself as a
problem from bar to bar, pub to pub etc. All the cocktails present unmatched price to quality index
anywhere in the market.

Design: In this case, the design refers to the composition of the drinks. The drinks will be made with the help
of expert mixologist and has the right mixture of ingredients in each drink. The external designing i.e. the
name of the cocktail, the can design will be to match the image of a cool new drink.

Cocktail Variants
Ingredients (ml)
Cosmopolitan Vodka Martini Pineapple Mojito Rum & Cola Old Fashioned
Mixers
Lime Juice 48 18
Cranberry Juice 94
Orange essence 47

Pineapple juice 110

Soda 124 110
Cola 220
Sugar Water 172
Angostura bitters 29
Spirits
Vodka 141 165
Rum 110 92
Whiskey 129
Wine 41
Total 330 330 330 330 330

Brand name: The name suggested is TIPSY TALES, which was to grab the attention of the consumers and the
Tagline read “YOUR KINDA DRINK”. The name and the tagline were to grab the attention of millennials and
Generation Z which will form a large part of the consumer base. The name is not only catchy to these
segments of the markets but to every consumer as well. The name of the brand suggests that we want to
create memories with you and be a part of those crazy memories read Tales of yours.

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Size: As per the demand, the standard pack size is of 330 ml. This is to be at par with the competing
products from other categories like that of Breezers and pints of beers. The can design and shape will be
ergonomic and it will be an easy to carry product which will ascertain a kind of cool factor as well to it.

Features: The primary feature i.e. the USP of the drink is that it is a ready to drink cocktail and ideally
requires no addition of any other external ingredient. These drinks will be made from premium ingredients
and will taste the same no matter which can you choose a particular drink.

The drinks are mainly Cranberry and Lime and lemon-based as that was the preference that we received
from the survey that we conducted. The drinks are fairly uncomplicated and not intimidating for any kind of
consumer.

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The survey suggested that people preferred Sweet and fruity cocktails and hence the emphasis was made on
development of those cocktails and the cocktails which are the most known have been chosen in order to
ease the acceptance of the product in the market.

Warranties and Guarantees: The product shelf life is of about 3-4 months and that is going to be clearly
mentioned on the product as well.

Packaging: The packaging will be attractive and will have a good visual appeal to the product. The quality of
the product will be portrayed via the packaging as well giving the cans a certain premium look and
customization of cans as per the flavors. The standard pack size will be a 6 pack which is the industry
standard. Although, loose cans will be sold by breaking off the 6 pack. The carton will consist of 48 cans in
one box will be how the product be transported to the dealers.

Price:
List Price: Currently, the only source of Cocktails for people at mass are Restaurants and pubs and other
events and to some extent cocktails that are made at home. These cocktails on an average have a starting
price of Rs. 300 and can range as high as Rs. 1000 plus depending upon the place and occasion. Tipsy Tales
presents an extremely valuable proposition where the minimum cost of a cocktail is as low as Rs. 160 and
the highest is Rs. 190.

Discounts: The trade discounts that are given in the industry are around 10% on the dealer level and the
retailer level as well. The discounts that will be offered by Tipsy Tales will be 15% on the dealer and retailer
level which will give dealers and retailers the necessary push to promote the product from their end.

Credit terms and Payment period: The credit terms are applicable to the dealers and retailers and are the
same as that of the industry standard. The credit terms generally range from 8-15 days and the payment
terms are payment in full.

Promotion:
There will be aggressive promotion of the cocktails as these products are products that represent cultural
change and the initiation of that change will depend upon the image the brand is able to create.

Advertising: Since, this is an alcoholic product, hence TV advertising can’t be done. The advertising will be
done via YouTube, Instagram and events. There will be a short video made that will be put on YouTube and
Instagram as well. The retail shops will have posters of the brands and cocktails attracting the consumers.

There are over the counter mini-fridges with Tipsy Tales Branding and display of products in every retail
shop. The Instagram and YouTube influencers will be used to promote the product in their posts and videos
as well.

Sales Promotion: The promotional discount will be given to the sellers and the promotion via events and
YouTube celebrities will be done.

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Social Media Marketing: Huge emphasis on social media marketing will be given as it will be only available
media platform to promote the products. A digital marketing firm called the whatisdigitalmarketing.com is
given the contract of handling the social media handles and promotions on social media. Everything from
CPK, CPM will be handled by these guys. YouTube and Instagram marketing will be a big chunk of the social
media promotions.
Facebook Marketing: We are going to provide Business Info, About, Company Overview, Story, Contact Info,
Office Address. Facebook marketing could help with inducing trials and brand recognition and recall. We
would also encourage customers to use our hashtag when they post photos with our product.
Posts:
 3 - 5 Daily posts: This includes images, blog posts etc. We would follow the 1 to 7 rule where you should
promote your business once in every 7 posts.
 3 Blogs per week: By providing cocktail articles for our website and asking others to contribute, we can
increase customer awareness and link it to our website to increase traffic.
 We would run various campaigns and make it trending with the hashtags such as #DrinkDifferent
#YourKindaDrink #TipsyTales etc.

Event Marketing: The presence will be made in all types of bar events in a particular city in every year. We
will be organizing bartending event and even participating and setting up booths in the events that are
already present.

The main attraction will be that we are setting up an event like that of NH7 weekender wherein we will be
inviting celebrities, comedians, bartenders and all other sorts of people and lot of engaging events wherein
there will be heavy promotion of the brand and trial inducing will be conducted. This event will make the
brand visible to the prospective consumers and put the brand on the map.

Word Of Mouth: After running strong successful campaigns and establishing the online presence, the
resultant word of mouth publicity generated will give the necessary traction to the band to hold a grip into
the market. Since the launch will in the city of Mumbai only in the first year, we are hoping for a lot of
publicity via word of mouth in the city itself and then spreading out the future targeted locations.

Public Relations: The public relations will be handled by the promoters of the brand i.e. the CEO and other
top management people. Consistent effort to maintain the positive image of the brand and handling any
irregularities will be actively made.

Place:
Channels: The distribution channels are pretty simplistic but also the key pillars to ensure successful market
adoption of the product. The channel includes distributors and retailers and Pubs/clubs.

Coverage: The target cities for the initial years of the brand are the metro cities I.e., the tier 1 cities of the
country. The first city that will be targeted in Mumbai. The city with its famous lifestyle and population to

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establish the foothold the market. Later on, the target cities will increase over the year but sticking to the
tier 1 criteria

Location: Our Plant and office will be located at Turbhe, Mumbai. In the 1st year of operation we will be
selling our product in Mumbai, 2nd year additionally at Pune, Delhi Gurugram and Bangalore, 3rd year
additionally at Hyderabad, Chennai and Kolkata which would continue for later years

Assortments: There is a standard size of the cans containing 330 ml of liquid. These cans are easy to carry
and have sufficient amount of content to satisfy the purpose. The standard size of the pack will be a 6 pack
but of course, a single unit can also be sold and would be recommended for individual consumption.

Inventory: The inventory of around 2 weeks is kept and can be supplied as and when required. Since this
falls under the category of FMCG the finished goods inventory will be of 10 days.

Transport: The transport will involve transport of the product from factory to distributors in each city. The
transport will take place via 1PL transporters and mostly the supply to all the targeted cities will be made via
these transporters.

5.2: Segmentation, Targeting and Positioning

Segmentation:

The customer segment for Tipsy Tales is niche. This niche segment is drawn from the segment of customers
who consume alcohol at home. We intend to carve out a share for Tipsy Tales from this share of alcohol
consumed at home. Cocktails are generally consumed at bars or restaurants. Our target segment will be
those people who wish to consume these at home without any hassle of getting ready and braving out
through traffic to visit a bar or restaurant. Moreover during house parties, one has to rely on that person
who can mix cocktails well and preparing them in a large batch is also difficult. We intend to target this
niche.

Bases of Segmentation-

Geographic:
 Region- People from Tier 1 cities like Mumbai, Pune, Bangalore, Delhi, Hyderabad, Chennai and Kolkata
 City size- Metro cities with population 4 million and above

Demographic:
 Age- 25 to 60 years
 Gender- Males and Females
 Income- More than Rs.5,00,000

Psychological:
 Need motivation- Comfort, convenience, fear of missing out, being trendy
 Personality- Extrovert, experience seeker, social being,

Page | 20
Use Situation:
 Time- Usually evening and night, during leisure
 Objective- Fun, relaxation, social interaction
 Location- Home, friends home, office
 Benefit- Convenience, Trendy

We have further defined a few personas to identify our product users, and have defined demography,
background, identifiers and use situations for our product

Persona 1

Vinod Menon
Demography Male
Age: 29
Annual Income: 15 lakhs
Residence: Baner, Pune
Background Somaiya College Alumni
Software Developer at Capgemini
Family lives at Chennai
Identifiers Hectic work-life
Popular among colleagues
Lives away from home and seeks social interactions
Seeks new experiences
Frequently attends and hosts parties on weekends
Old Monk loyalist
Use situation Since he is a social being and a frequent party-goer he would
consume the Tipsy Tales- Rum and Coke variant without going
through any hassle of mixing ingredients. He would just pop
open a can and move around in the crowd conversing with as
many people as possible.

Page | 21
Persona 2

Shruti Singh
Demography Female
Age: 25
Annual Income: 8 lakhs
Residence: Andheri, Mumbai
Background Khalsa College Alumni
Media executive at Viacom
Family lives at Chandigarh
Identifiers Has grown up watching Hollywood movies and TV series and
binge watches them
Keeps a track of latest trends
Being in media field she frequently goes out for social events
Mumbai gives her an impression of Manhattan
Visits restaurants, pubs etc. on weekends during happy hours
Use situation While watching her favorite shows she enjoys a can of Tipsy
Tales Cosmopolitan

Persona 3

Mr. Siddharth Reddy

Demography Male
Age: 45
Annual Income: 35 lakhs
Residence: Banjara Hills, Hyderabad
Background IIT Madras Alumni
Ex-Employee of Cisco
Currently setting up his own business regarding Software
Services
Identifiers Hardworking and self-motivated
Extensive social and formal network
Risk-taker
Experimental and open to new ideas
Use situation His startup “ServiTech” received a funding and hence he has
organized a party for his family and friends where he serves the
many variants of Tipsy Tales

Targeting:

The target market selection pattern for Tipsy Tales is Single-segment concentration since we are launching
one of a kind alcoholic beverage in the niche market. Being the 1st mover and cocktail culture driver we
intend to gain complete specialization in our single segment. Gradually we intend to bring in more variety
and expand our product scope in multiple markets.

Page | 22
 Short Term Long Term
M 1- Mumbai M 2- Tier 1 M 3- Major Pan M 1- Mumbai M 2- Tier 1 M 3- Major Pan
Pune cities Indian Cities Pune cities Indian Cities

P 1- Mocktails P 1- Mocktails

P 2- Cocktails P 2- Cocktails

P 3- Liquor P 3- Liquor

Positioning:

As the name indicates Tipsy Tales is a brand which would help you create new stories. We intend to position
the brand from a convenience point of view especially when you want to relax and unwind without much
hassle but with a classic in your hand. The same message is conveyed throughout tagline which states- “
Your Kinda Drink”.

Point of Parity & Point of Difference

POP:
The aspects of the product offering that are largely similar to the offerings of like competitors.
 The RTD cocktails bring a similar proposition that any kind of alcohol gives which is consumed when
unwinding, relaxing, and partying.
 The alcohol content is on par with that of the hard liquor when diluted for the purpose of
consumption.
 The shelf life is also around 9 months giving the product longevity for consumption and sales.
 This drink will serve the purpose of a perfect conversation companion over any kind of social setting.
POD:
The aspects of the product offering that are relatively distinct to the offerings of like competitors.
 Tipsy Tales presents a product that has never been seen before in the Indian market in the context of
exactly what it is and will help usher cocktail culture
 This drink provides higher alcohol content than what Breezers, Beers and other RTD drinks that are
coming up have.
 The price point at which they are available is the cheapest in the market and no other drink comes
close in terms of the value being offered.
 The recipe of the drinks is curated by expert mixologist and the consistency in taste is a main
criterion for the brand.
 The consumption is easy and can be done on the go as well, No addition of any other component
including ice is something that is very unique

Page | 23
5.3: CBBE Model

RESONANCE

Engagement- Pajama
parties, tasting room
Community- Chill tribe
Loyalty- Build through
quality assurance

JUDGEMENT FEELINGS

Quality- Ensuring Relaxation

delivery of the best Convenience
Credibility- Disclosure Fun experiences
of ingredients Trendy
Consideration-Variety Happy
to induce purchase Satisfied

PERFORMANCE IMAGERY

Product design- Variants, recipe User profiles- Working professionals,

curated by experts, blending with people with a wide social circle,
right alcohol concentration people influenced by western culture
Reliability- Long shelf life, right Use situation- Parties, social settings,
ingredients, proper disclosures at home while relaxing, events, etc.
Efficiency- Easy availability Personality- Extrovert, novelty seeker,
Price- At par with similar beverages perfection and consistency

SALIENCE

Category Identification: Color of cans based on variants, tagline communicating a drink for
everyone, quality assurances by complete disclosure, name indicating product offering, etc.
Visibility: Brand campaign through social media, brand events, refrigerators at retail counter

The CBBE model for Tipsy Tales achieved in 4 steps i.e. identification, brand meaning, customer response
and relationship. In each step we have stated methods, actions etc. we intend to take to raise brand equity
amongst our customers.

Page | 24
6. Land and Location
The location chosen for the plant and office is Turbhe, Navi Mumbai. This location provides multifold
benefits like cheaper land and labor cost as compared to the mainland of Mumbai, the proximity of suppliers
etc. The location is relatively closer to the suppliers of alcohols as well. We will be procuring alcohol from
the distilleries in and near about MMR region.

Our suppliers include:

 Amber Distilleries
 John Distilleries
 United Breweries at Taloja
 Blossom Industries at Daman

The other raw material like perishables which includes the mixers will be procured from local beverage
manufacturers. Moreover the tin cans and other packing material will also be procured locally.

The land will be purchased and we will construct the premises from the ground up, right from construction
of plant and office. The setting up of plant and office would take about 1 year.

The location also provides smooth access to the target market of Mumbai enabling quick response time.
Also we will achieve logistical advantage involved in transporting to Pune which serves as the future market
from the 2nd year of operations.

The cost of land is about Rs. 4258 per sq. feet and the area of land required is around 8200 sq. feet. The
office as well as the plant will be constructed on the land. The fact that the office and plant is in the same
compound would help in better control and monitoring of production although most of the work would be
automated.

Page | 25
7. Manufacturing Process and Layout
7.1: Factory and Office Layout

The entire area is approximately 8000 sq. ft. This houses the factory, the office, storage areas, ETP plant,
cold room, Lab, washrooms etc. The rectangular blue boxes represent the production line and the circular
blue boxes are the storage tank.

Page | 26
Page | 27
7.3: Process flow and Production

Incoming Material
- Spirits are stored in Storage Tanks
•- Other Perishable raw materials are stored in
cold room

•Production Line
•- Raw Material transferred to Mixer & Cans are
placed on shaker table
•- After Mixing it is transferred to can filling
machine

Bar coding and Packaging

- Filled can after capping forwarded to Bar coding
•- After Bar coding a pack of six cans are prepared
with plastic capping

Final Packaging & Storage

- Six packs are then transferred to final packaging in
boxes with 48 cans each
•- These boxes are then transferred to Storage Area.

• Incoming Material from loading and unloading moved to Raw material storage. Spirits are Stored in
Storage Tanks and other Perishable raw materials are stored in cold room. All the spirit tanks are
connected to mixers in the production line. Raw Material transferred to Mixer & Cans is placed on
shaker table.

• After Mixing cocktail is transferred to can filling machine and at the same time cans are rinsed and
rotated on interior can twister. Can are inverted and sprayed with water. It rinses any potential dust

Page | 28
 or particles out of the can. This ensures 100% sanitary filling. At filling station cocktails are filled
from mixers at steady rate preserving the flavor. Cans are filled until the sensor light indication.

• These cans are then moved to lid dispenser. Each can will be placed with a lid and can move forward
to seam station. After rolling on-seam station can will move to exterior cleaning and blow-dried. This
avoids any exterior rusting and contamination. Few samples from each batch goes for quality testing
at lab.

• After exterior cleaning cans moved on production line and lid of six-packs is placed on cans. These
six-pack cans are then moved to a packaging area where 8 six-packs containing 48 cans are placed in
each box. These boxes are packed and then moved to finished goods storage area. From storage
boxes are sent for distribution via distributors.

Production and Capacity:

Working Days 300

Operating Hrs per shift 7
Maximum Shifts per Day 3
Working days per week 6
Operating Yr 1 Operating Yr 2 Operating Yr 3 Operating Yr 4 Operating Yr 5
Particulars
2020-21 2021-22 2022-23 2023-24 2024-25
Machine Capacity (CPH) 1500 1500 1500 3500 3500
Installed Capacity 9,450,000 9,450,000 9,450,000 22,050,000 22,050,000
Machine Running (CPH) 1,100 1,500 1,500 3,500 3,500
No. of Shifts Operated 1 2 3 2 3
Cans Produced (Nos.) 2,310,000 6,300,000 9,450,000 14,700,000 22,050,000
Capacity Utilization 24% 67% 100% 67% 100%
Rejection Rate 5% 5% 4% 3% 3%
Final Output after Rejection 2,194,500 5,985,000 9,072,000 14,259,000 21,388,500
Projected Demand (Nos.) 1,724,303 6,214,726 10,266,429 15,548,709 21,688,176
Excess stock 470,197 - - - -
Unmet Demand (Nos.) - 229,726 1,194,429 1,289,709 299,676

Page | 29
 8. Projected Cost
(All figures are in Rs.)
Year 0 Op. Yr 1 Op. Yr 2 Op. Yr 3 Op. Yr 4 Op. Yr 5
Particulars Annexures
2019-20 2020-21 2021-22 2022-23 2023-24 2024-25
License cost 1 11,500,000
Land 2 29,806,000 - - - - -
Building 2 14,700,000 - - - - -
Plant & Machinery 2 10,232,750 - 523,000 23,000 7,277,000 23,000
Office Equipment 2 1,607,250 - 137,250 411,750 91,500 45,750
Pre-operative Expenses 2,700,000 - - - - -
Contingencies @ 5% 2,817,300 - 33,013 21,738 368,425 3,438
Margin for Working Capital 10 4,924,672
Total 78,287,972 - 693,263 456,488 7,736,925 72,188

9. Projected P&L
(All figures are in Rs.)
Operating Yr 1 Operating Yr 2 Operating Yr 3 Operating Yr 4 Operating Yr 5
Particulars Annexures
2020-21 2021-22 2022-23 2023-24 2024-25
Sales 3 430,122,000 1,173,060,000 1,868,832,000 2,937,354,000 4,619,916,000
Sales Return @ 7% 30,108,540 82,114,200 130,818,240 205,614,780 323,394,120
Net Sales 400,013,460 1,090,945,800 1,738,013,760 2,731,739,220 4,296,521,880
Less:
RM cost 4 143,080,379 370,708,255 528,259,264 739,562,969 965,129,674
Employee Expense 5 12,348,000 16,070,600 22,889,331 26,983,951 33,962,554
Depreciation @ 10% 2,654,000 - 66,025 43,475 736,850
Admin Expense 6 1,030,000 1,141,000 1,257,600 1,355,360 1,459,896
Utilities 7 2,135,312 2,682,803 3,239,274 3,205,395 3,996,390
Channel cost @ 25% 107,530,500 293,265,000 467,208,000 734,338,500 1,154,979,000
Transport 8 913,635 3,996,088 10,230,744 12,500,502 19,404,989
Marketing 9 56,055,000 85,165,000 78,665,000 63,500,000 57,500,000
External warehouse exp. - - 1,800,000 2,160,000 2,592,000
License Renewal Fees 1 135,000 135,000 135,000 135,000
Interest on WC @ 11% 10 1,625,142 5,326,687 8,077,713 11,991,549 17,634,115
Excise Duty (200%) 153,615,000 418,950,000 635,040,000 998,130,000 1,497,195,000
Sales Tax (5%) 21,506,100 58,653,000 93,441,600 146,867,700 230,995,800
Total Cost 502,493,068 1,256,093,433 1,850,309,550 2,740,774,401 3,985,721,268
PBT (102,479,608) (165,147,633) (112,295,790) (9,035,181) 310,800,612
Loss from previous year (102,479,608) (267,627,241) (379,923,031) (388,958,212)
Cumulative PBT (102,479,608) (267,627,241) (379,923,031) (388,958,212) (78,157,600)
Tax @17.10% - - - - -
PAT (102,479,608) (165,147,633) (112,295,790) (9,035,181) 310,800,612

Page | 30
10. DCF and Profitability

(All figures are in Rs.)

Year Cash Outflow Cash Inflow Net Cash Flow

0 78,287,972 - (78,287,972)

1 14,774,015 (99,825,608) (114,599,623)

2 34,343,679 (165,147,633) (199,491,312)

3 25,465,810 (112,229,765) (137,695,575)

4 43,317,253 (8,991,706) (52,308,959)

5 51,368,239 311,537,462 260,169,223

6 271,755,507 271,755,507

7 258,390,557 258,390,557

8 258,390,557 258,390,557

9 258,390,557 258,390,557

10 418,700,691 418,700,691

NPV $165,742,882.08
IRR 21%

IRR is greater than WACC which is 14%

Page | 31
 Annexure 1- Licenses
(All figures are in Rs.)
Licenses Cost Renewal Fees
Liqor Licence 10,000,000 100,000
MPCB License 1,000,000 15,000
FASSAI 500,000 20,000
Total 11,500,000 135,000

Annexure 2- Assets
Quantity
Measuring
Particulars Capacity Year 0 Op. Yr 1 Op. Yr 2 Op. Yr 3 Op. Yr 4 Op. Yr 5
Unit
2019-20 2020-21 2021-22 2022-23 2023-24 2024-25
Building @ 2100 per sq. ft. 1 - - - - -
Mixologist Consultant 1 - - - - -
Technical Consulatant 1 - - - - -
Land @ Rs.4258 sq. ft. 8,200 sq. ft 1 - - - - -
Laptop 23 - 3 9 2 1
Furniture (Employees) -15000 per head 23 - 3 9 2 1
Furniture (Conference room) 1 - - - - -
AV system 2 - - - - -
CCTV 12 - - - - -
Printer 2 - - - - -
Projector 1 - - - - -
Phone 23 - 3 9 2 1
Coffee Vending Machine 1 - - - - -
Can filling machine 1 @ 1500 CPH 1,500 CPH 1 - - - - -
Can filling machine 2 @ 2000 CPH 2,000 CPH - - - - 1 -
Mixing tank 1 5,000 Ltrs 1 - - - - -
Mixing tank 2 7,000 Ltrs - - - - 1 -
Labelling machine 1 - - - 1 -
Storage Tank 1 -Vodka 5,000 Ltrs 1 - - - 1 -
Storage Tank 2 -Rum 5,000 Ltrs 1 - - - - -
Storage Tank 3 - Whiskey 5,000 Ltrs 1 - - - - -
Storage Tank 4 - Wine 2,000 Ltrs 1 - - - - -
Pumps 3,000 LPH 4 - - - 1 -
Piping 1 - - - - -
Switchboard 1 - - - 1 -
Volume Measuring equipment 1 - - - - -
Accessories (Air Curtain, Insectocutors) 1 - - - - -
Maintenance Material 1 - - - - -
Temperature Controlled Storage (300 sq ft) 1 - - - - -
Sewage Treatment Plant 1 - - - - -
Pallet Jack 2 - 1 1 1 1
Storage Racks 10 - 5 - - -
LED bulb & Tubelight 70 - - - - -
DIGI set 1 - - - - -
Water Cooler 3 - - - - -

Page | 32
(All figures are in Rs.)
Cost
Particulars Year 0 Operating Yr 1 Operating Yr 2 Operating Yr 3 Operating Yr 4 Operating Yr 5
2019-20 2020-21 2021-22 2022-23 2023-24 2024-25
Building @ 2100 per sq. ft. 14,700,000 - - - - -
Mixologist Consultant 2,000,000 - - - - -
Technical Consulatant 700,000 - - - - -
Land @ Rs.4258 sq. ft. 29,806,000 - - - - -
Laptop 690,000 - 90,000 270,000 60,000 30,000
Furniture (Employees) -15000 per head 345,000 - 45,000 135,000 30,000 15,000
Furniture (Conference room) 80,000 - - - - -
AV system 100,000 - - - - -
CCTV 240,000 - - - - -
Printer 100,000 - - - - -
Projector 25,000 - - - - -
Phone 17,250 - 2,250 6,750 1,500 750
Coffee Vending Machine 10,000 - - - - -
Can filling machine 1 @ 1500 CPH 4,000,000 - - - - -
Can filling machine 2 @ 2000 CPH - - - - 6,000,000 -
Mixing tank 1 250,000 - - - - -
Mixing tank 2 - - - - 350,000 -
Labelling machine 300,000 - - - 300,000 -
Storage Tank 1 -Vodka 100,000 - - - 100,000 -
Storage Tank 2 -Rum 100,000 - - - - -
Storage Tank 3 - Whiskey 100,000 - - - - -
Storage Tank 4 - Wine 50,000 - - - - -
Pumps 16,000 - - - 4,000 -
Piping 500,000 - - - - -
Switchboard 500,000 - - - 500,000 -
Volume Measuring equipment 50,000 - - - - -
Accessories (Air Curtain, Insectocutors) 48,000 - - - - -
Maintenance Material 50,000 - - - - -
Temperature Controlled Storage (300 sq ft) 2,000,000 - - - - -
Sewage Treatment Plant 475,000 - - - - -
Pallet Jack 46,000 - 23,000 23,000 23,000 23,000
Storage Racks 1,000,000 - 500,000 - - -
LED bulb & Tubelight 22,750 - - - - -
DIGI set 550,000 - - - - -
Water Cooler 75,000 - - - - -
Total 59,046,000 - 660,250 434,750 7,368,500 68,750

Page | 33
 Annexure 3- Sales
(Sales Revenue in Rs.)
Operating Yr 1 Operating Yr 2 Operating Yr 3 Operating Yr 4 Operating Yr 5
Particulars
2020-21 2021-22 2022-23 2023-24 2024-25
Sales Price
Cosmopolitan 200 200 210 210 220
Vodka Martini 200 200 210 210 220
Pineapple Mojito 200 200 210 210 220
Rum & Cola 180 180 190 190 200
Old Fashioned 200 200 210 210 220
Cans Sold
Cosmopolitan 548,625 1,496,250 2,268,000 3,564,750 5,347,125
Vodka Martini 438,900 1,197,000 1,814,400 2,851,800 4,277,700
Pineapple Mojito 329,175 897,750 1,360,800 2,138,850 3,208,275
Rum & Cola 438,900 1,197,000 1,814,400 2,851,800 4,277,700
Old Fashioned 438,900 1,197,000 1,814,400 2,851,800 4,277,700
Total 2,194,500 5,985,000 9,072,000 14,259,000 21,388,500
Sales Revenue
Cosmopolitan 109,725,000 299,250,000 476,280,000 748,597,500 1,176,367,500
Vodka Martini 87,780,000 239,400,000 381,024,000 598,878,000 941,094,000
Pineapple Mojito 65,835,000 179,550,000 285,768,000 449,158,500 705,820,500
Rum & Cola 79,002,000 215,460,000 344,736,000 541,842,000 855,540,000
Old Fashioned 87,780,000 239,400,000 381,024,000 598,878,000 941,094,000
Total Revenue 430,122,000 1,173,060,000 1,868,832,000 2,937,354,000 4,619,916,000

Annexure 4- RM cost
Operating Yr 1 Operating Yr 2 Operating Yr 3 Operating Yr 4 Operating Yr 5
Particuars
2020-21 2021-22 2022-23 2023-24 2024-25
Cans Produced (Nos) 2,310,000 6,300,000 9,450,000 14,700,000 22,050,000
Breakup of Production in %
Cosmopolitan 25% 25% 25% 25% 25%
Vodka Martini 20% 20% 20% 20% 20%
Pineapple Mojito 15% 15% 15% 15% 15%
Rum & Cola 20% 20% 20% 20% 20%
Old Fashioned 20% 20% 20% 20% 20%
Breakup of Production in nos.
Cosmopolitan 577,500 1,575,000 2,362,500 3,675,000 5,512,500
Vodka Martini 462,000 1,260,000 1,890,000 2,940,000 4,410,000
Pineapple Mojito 346,500 945,000 1,417,500 2,205,000 3,307,500
Rum & Cola 462,000 1,260,000 1,890,000 2,940,000 4,410,000
Old Fashioned 462,000 1,260,000 1,890,000 2,940,000 4,410,000

Page | 34
Tape length (mtrs) 65
Extra Stock (liquid) 1 Extra Stock (PM) 1 Caps as per 6 pack 6
1 Ltr to ml 1,000 1 kg to mg 1,000,000 Cans per Carton 48
Operating Yr 1 Operating Yr 2 Operating Yr 3 Operating Yr 4 Operating Yr 5
Ingredients in ml
2020-21 2021-22 2022-23 2023-24 2024-25
Mixers
Lime Juice 37,838 103,194 154,791 240,786 361,179
Cranberry Juice 56,999 155,453 233,179 362,723 544,084
Orange essence 28,500 77,726 116,589 181,361 272,042
Pineapple juice 40,021 109,148 163,721 254,678 382,016
Soda 100,173 273,200 409,799 637,466 956,198
Cola 106,722 291,060 436,590 679,140 1,018,710
Sugar Water 83,437 227,556 341,334 530,964 796,446
Angostura bitters 14,068 38,367 57,551 89,523 134,285
Spirits
Vodka 165,540 451,474 677,211 1,053,439 1,580,158
Rum 84,650 230,864 346,295 538,682 808,022
Whiskey 62,578 170,667 256,001 398,223 597,335
Wine 19,889 54,243 81,365 126,567 189,851
Total 800,415 2,182,950 3,274,425 5,093,550 7,640,325
Preservatives
Sorbic Acid (kg) 240 655 982 1,528 2,292
Packaging Material (in nos)
Cans 2,541,000 6,930,000 10,395,000 16,170,000 24,255,000
Plastic Caps 423,500 1,155,000 1,732,500 2,695,000 4,042,500
Cartons 52,938 144,375 216,563 336,875 505,313
Packing Tape (mtrs) 896 2,443 3,665 5,701 8,551

Page | 35
 Unit Price in Rs.
Price Reduction 1 0.95 0.95 0.9 0.87
Operating Yr 1 Operating Yr 2 Operating Yr 3 Operating Yr 4 Operating Yr 5
Ingredients
2020-21 2021-22 2022-23 2023-24 2024-25
Mixers
Lime Juice 20 19 18 16 14
Cranberry Juice 62 59 56 50 44
Orange essence 700 665 632 569 495
Pineapple juice 35 33 32 28 25
Soda 5 5 5 4 4
Cola 10 10 9 8 7
Sugar Water 18 17 16 15 13
Angostura bitters 550 523 496 447 389
Spirits
Vodka 200 190 181 162 141
Rum 180 171 162 146 127
Whiskey 550 523 496 447 389
Wine 400 380 361 325 283
Total 2730 2594 2464 2217 1929
Preservatives
Sorbic Acid (kg) 500 475 451 406 353
Packaging Material
Cans 6 6 5 5 4
Plastic Caps 1 0 0 0 0
Cartons 6 6 5 5 4
Packing Tape 20 19 18 16 14

(All figures are in Rs.)

Operating Yr 1 Operating Yr 2 Operating Yr 3 Operating Yr 4 Operating Yr 5
Ingredients
2020-21 2021-22 2022-23 2023-24 2024-25
Mixers
Lime Juice 756,756 1,960,686 2,793,978 3,911,569 5,104,597
Cranberry Juice 3,533,954 9,156,152 13,047,517 18,266,524 23,837,813
Orange essence 19,949,738 51,687,956 73,655,338 103,117,473 134,568,302
Pineapple juice 1,400,726 3,629,154 5,171,545 7,240,163 9,448,413
Soda 500,866 1,297,698 1,849,219 2,588,907 3,378,523
Cola 1,067,220 2,765,070 3,940,225 5,516,315 7,198,791
Sugar Water 1,501,870 3,891,208 5,544,971 7,762,959 10,130,662
Angostura bitters 7,737,345 20,046,758 28,566,629 39,993,281 52,191,232
Spirits
Vodka 33,108,075 85,780,013 122,236,518 171,131,125 223,326,118
Rum 15,236,991 39,477,659 56,255,663 78,757,929 102,779,097
Whiskey 34,417,845 89,173,508 127,072,248 177,901,147 232,160,997
Wine 7,955,640 20,612,340 29,372,585 41,121,618 53,663,712
Total (ingredients) 127,167,025 329,478,200 469,506,435 657,309,009 857,788,257
Preservatives
Sorbic Acid (kg) 120,062 311,070 443,275 620,585 809,864
Packaging Material
Cans 15,246,000 39,501,000 56,288,925 78,804,495 102,839,866
Plastic Caps 211,750 548,625 781,791 1,094,507 1,428,331
Cartons 317,625 822,938 1,172,686 1,641,760 2,142,497
Packing Tape 17,917 46,422 66,152 92,612 120,859
Total RM cost 143,080,379 370,708,255 528,259,264 739,562,969 965,129,674

Page | 36
Annexure 5- Employee Expense

No. of Employees
Employees Operating Yr 1 Operating Yr 2 Operating Yr 3 Operating Yr 4 Operating Yr 5
2020-21 2021-22 2022-23 2023-24 2024-25
CEO 1 1 1 1 1
Operations Head 1 1 1 1 1
Marketing Head 1 1 1 1 1
Finance Head 1 1 1 1 1
Mixologist 1 1 1 1 1
Manufacturing 1 1 1 1 1
Procurement 1 1 2 2 2
Distribution Manager 2 3 4 4 5
Supervisor Mfg 1 2 3 3 3
Logistics 1 1 2 3 3
Warehousing 1 1 2 2 2
Maintainence & Safety 2 2 3 3 3
Market Research 1 1 2 2 2
Marketing Operations 2 3 3 4 4
Accounts 2 2 3 3 3
HR 2 2 3 3 3
IT 1 1 1 1 1
Receptionist 1 1 1 1 1
Helpers & Security
Office Boy 1 2 2 2 2
Security 6 6 6 6 6
Workmen
Measurement and Mixing 2 4 6 6 9
Packing 2 4 6 8 12
Material handling 3 6 9 9 12
Management Staff 23 26 35 37 38
Workmen 7 14 21 23 33
Helpers & Security 7 8 8 8 8
Total Employees 37 48 64 68 79

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 Annual Increment Year 1 Year 2 Year 3 Year 4 Year 5
CEO 1.00 1.15 1.25 1.35 1.45
Dept. Heads 1.00 1.10 1.15 1.20 1.25
Managers 1.00 1.07 1.08 1.09 1.10
Facility Management 1.00 1.05 1.06 1.06 1.07

Annual Salary (Rs.)

Employees Base Salary (Monthly) Operating Yr 1 Operating Yr 2 Operating Yr 3 Operating Yr 4 Operating Yr 5
2020-21 2021-22 2022-23 2023-24 2024-25
CEO 90,000 1,260,000 1,449,000 1,811,250 2,445,188 3,545,522
Operations Head 52,000 728,000 800,800 920,920 1,105,104 1,381,380
Marketing Head 52,000 728,000 800,800 920,920 1,105,104 1,381,380
Finance Head 40,000 560,000 616,000 708,400 850,080 1,062,600
Mixologist 40,000 560,000 616,000 708,400 850,080 1,062,600
Manufacturing 35,000 490,000 524,300 566,244 617,206 678,927
Procurement 30,000 420,000 449,400 970,704 1,058,067 1,163,874
Distribution Manager 28,000 784,000 1,258,320 1,811,981 1,975,059 2,715,706
Supervisor Mfg 25,000 350,000 749,000 1,213,380 1,322,584 1,454,843
Logistics 25,000 350,000 374,500 808,920 1,322,584 1,454,843
Warehousing 25,000 350,000 374,500 808,920 881,723 969,895
Maintainence & Safety 25,000 700,000 749,000 1,213,380 1,322,584 1,454,843
Market Research 25,000 350,000 374,500 808,920 881,723 969,895
Marketing Operations 25,000 700,000 1,123,500 1,213,380 1,763,446 1,939,790
Accounts 22,000 616,000 659,120 1,067,774 1,163,874 1,280,262
HR 22,000 616,000 659,120 1,067,774 1,163,874 1,280,262
IT 18,000 252,000 269,640 291,211 317,420 349,162
Receptionist 15,000 210,000 224,700 242,676 264,517 290,969
Helpers & Security
Office Boy 10,000 140,000 294,000 311,640 330,338 353,462
Security 10,000 840,000 882,000 934,920 991,015 1,060,386
Workmen
Measurement and Mixing 15000 420,000 882,000 1,402,380 1,486,523 2,385,869
Packing 15000 420,000 882,000 1,402,380 1,982,030 3,181,159
Material handling 12000 504,000 1,058,400 1,682,856 1,783,827 2,544,927
Management Staff Management Salary 10,024,000 12,072,200 17,155,155 20,410,217 24,436,751
Workmen Workers Salary 1,344,000 2,822,400 4,487,616 5,252,381 8,111,955
Helpers & Security Helper & Security Salary 980,000 1,176,000 1,246,560 1,321,354 1,413,848
Total Employees Total Expenses 12,348,000 16,070,600 22,889,331 26,983,951 33,962,554

Annexure 6- Admin Expense

(All figures below are in Rs.)
Operating Yr 1 Operating Yr 2 Operating Yr 3 Operating Yr 4 Operating Yr 5
Particulars
2020-21 2021-22 2022-23 2023-24 2024-25
Stationery 20,000 25,000 30,000 35,000 40,000
Safety Contract 240,000 264,000 290,400 319,440 351,384
Internet 120,000 132,000 145,200 159,720 175,692
Phone Bill 200,000 220,000 242,000 266,200 292,820
Housekeeping 450,000 500,000 550,000 575,000 600,000
Total 1,030,000 1,141,000 1,257,600 1,355,360 1,459,896

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 Annexure 7- Utilities

Cost in Rs.
Units Per Hr Operating Yr 1 Operating Yr 2 Operating Yr 3 Operating Yr 4 Operating Yr 5
Particulars
1 unit= 1 kWh 2020-21 2021-22 2022-23 2023-24 2024-25
Electricity
Laptop 0.05 19,320 21,840 29,400 31,080 31,920
AV system 0.125 600 600 600 600 600
CCTV 0.006 5,046 5,046 5,046 5,046 5,046
Printer 0.5 2,400 2,400 2,400 2,400 2,400
Projector 0.3 720 720 720 720 720
Phone 0.001 386 437 588 622 638
Coffee Vending Machine 0.8 13,440 13,440 13,440 13,440 13,440
Can filling machine 1 @ 1500 CPH 10 168,000 336,000 504,000 336,000 504,000
Can filling machine 2 @ 2000 CPH 12 - - - 403,200 604,800
Mixing tank 1 5 12,000 24,000 36,000 24,000 36,000
Mixing tank 2 7 - - - 33,600 50,400
Labelling machine 0.05 840 1,680 2,520 3,360 5,040
Pumps 5 48,000 96,000 144,000 120,000 180,000
Switchboard 1 70,080 70,080 70,080 70,080 70,080
Temperature Controlled Storage (300 sq ft) 20 1,401,600 1,401,600 1,401,600 1,401,600 1,401,600
Sewage Treatment Plant 5 96,000 115,200 138,240 165,888 199,066
LED bulb & Tubelight 0.001 1,344 2,688 4,032 2,688 4,032
Water Cooler 0.08 1,536 3,072 4,608 3,072 4,608
Total 1,841,312 2,094,803 2,357,274 2,617,395 3,114,390
Water Ltrs per shift
Water Consumption @ 120 per 1000 ltrs 1500 54,000 108,000 162,000 108,000 162,000
Nitrogen 240,000 480,000 720,000 480,000 720,000
Total 2,135,312 2,682,803 3,239,274 3,205,395 3,996,390

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 Annexure 8- Transport Cost

Operating Yr 1 Operating Yr 2 Operating Yr 3 Operating Yr 4 Operating Yr 5

2020-21 2021-22 2022-23 2023-24 2024-25
Final Production After Rejections 2,194,500 5,985,000 9,072,000 14,259,000 21,388,500
No. of Boxes Produced Per Year 45,719 124,688 189,000 297,063 445,594
No. of Boxes Produced Per week 914 2,494 3,780 5,941 8,912
Boxes Per 19 feet Vehicle 900 900 900 900 900
Boxes Per 14 feet Vehicle(TATA 407 456 456 456 456 456

Distance (kms) Rate (Rs.) Total cost per Truck (Rs.)

237 25.7 6,091
439 28.71 12,604
1218 23.7 28,867
1765 20.44 36,077
1218 21.36 26,016
1736 24.11 41,856
3251 26.17 85,079

Operating Yr 1 Operating Yr 2 Operating Yr 3 Operating Yr 4 Operating Yr 5

2020-21 2021-22 2022-23 2023-24 2024-25
% Sales Year 1 % Sales Year 2 % Sales Year 3 % Sales Year 4 % Sales Year 5
Mumbai City & Suburbs 100% 50% 33% 28% 22%
Pune 0% 25% 19% 19% 16%
Bangalore 0% 13% 14% 14% 13%
Delhi, Gurgaon 0% 13% 14% 14% 13%
Hyderabad 0% 0% 7% 9% 13%
Chennai 0% 0% 7% 9% 13%
Kolkata 0% 0% 6% 7% 9%

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 Operating Yr 1 Operating Yr 2 Operating Yr 3 Operating Yr 4 Operating Yr 5
City
2020-21 2021-22 2022-23 2023-24 2024-25
No. of Boxes per week
Mumbai City & Suburbs 914 1247 1260 1650 1993
Pune 0 623 735 1100 1407
Bangalore 0 312 525 825 1173
Delhi, Gurgaon 0 312 525 825 1173
Hyderabad 0 0 263 550 1173
Chennai 0 0 263 550 1173
Kolkata 0 0 210 440 821
No. of Trucks per week
Mumbai City & Suburbs 3 3 1 2 2
Pune 0 1 1 1 2
Bangalore 0 1 1 1 2
Delhi, Gurgaon 0 1 1 1 2
Hyderabad 0 0 1 1 2
Chennai 0 0 1 1 2
Kolkata 0 0 1 1 1
No. of Trucks per Year
Mumbai City & Suburbs 150 150 50 100 100
Pune 0 68 73 50 100
Bangalore 0 34 50 50 100
Delhi, Gurgaon 0 34 49 50 100
Hyderabad 0 0 49 50 100
Chennai 0 0 49 50 100
Kolkata 0 0 29 54 50
Total Cost per year in Rs.
Mumbai City & Suburbs 913,635 913,635 304,545 609,090 609,090
Pune - 861,898 922,204 630,185 1,260,369
Bangalore - 987,015 1,443,330 1,443,330 2,886,660
Delhi, Gurgaon - 1,233,541 1,759,801 1,803,830 3,607,660
Hyderabad - - 1,269,073 1,300,824 2,601,648
Chennai - - 2,041,731 2,092,814 4,185,629
Kolkata - - 2,490,060 4,620,429 4,253,934
Total Cost per year 913,635 3,996,088 10,230,744 12,500,502 19,404,989

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 Annexure 9- Marketing Cost

(All figures are in Rs.)

Operating Yr 1 Operating Yr 2 Operating Yr 3 Operating Yr 4 Operating Yr 5
Particulars 2020-21 2021-22 2022-23 2023-24 2024-25
Outsourced to
whatisdigitalmarketing.com -
Advanced Plan 1,000,000 1,500,000 1,500,000 1,500,000 1,500,000
Logo Design and other graphics 1,000,000
Bartending Competitions 5,000,000 7,500,000 7,500,000 7,500,000 5,000,000
Bar events and Festivals 20,000,000 30,000,000 20,000,000 10,000,000 5,000,000
Signature Festival 15,000,000 22,500,000 22,500,000 27,500,000 30,000,000
Advertising @ Wine shops 1,000,000 4,000,000 7,000,000 3,500,000 2,000,000
Instagram & Youtube Influencer 10,000,000 15,000,000 15,000,000 10,000,000 10,000,000
Instagram, Snapchat, facebook advertising 1,500,000 2,000,000 2,500,000 2,500,000 3,000,000
Fridges 555,000 1,665,000 1,665,000 - -
Misc. Marketing 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000
Total 56,055,000 85,165,000 78,665,000 63,500,000 57,500,000

Annexure 10- Net Working Capital

(All figures are in Rs.)

Operating Yr 1 Operating Yr 2 Operating Yr 3 Operating Yr 4 Operating Yr 5
Particulars
2020-21 2021-22 2022-23 2023-24 2024-25
Inventory RM (14 Days) 6,677,084 17,299,719 24,652,099 34,512,939 45,039,385
inventory FG (7 days) 3,738,413 9,087,439 12,937,258 17,961,902 23,422,594
Recievables (7 days) 10,036,180 27,371,400 43,606,080 68,538,260 107,798,040
Cash (6 months) 2,585,552 3,315,734 4,564,367 5,257,451 6,569,807
Gross Working Capital 23,037,229 57,074,291 85,759,804 126,270,551 182,829,826
Less: Creditors 3,338,542 8,649,859 12,326,049 17,256,469 22,519,692
Net Working Capital 19,698,687 48,424,432 73,433,754 109,014,082 160,310,133
Margin for NWC (25%) 4,924,672
Bank Borrowing 14,774,015 48,424,432 73,433,754 109,014,082 160,310,133

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Annexure 11- Organizational Chart

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