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Vinayaka Cafetaria & Cool Bar

The proposed project is a cafeteria to be opened in January 2016 in Chundale, Wayanad district. It will be located in a rented shop and serve beverages like tea, coffee, juices as well as snacks using automatic vending machines. The total cost is Rs. 14.28 lakh, with Rs. 6.5 lakh taken as a term loan at 14.5% interest over 5 years. The promoter, Mr. N. Ravi, will manage the cafeteria employing workers. Being located on a tourist route, the cafeteria aims to serve travelers stopping for refreshments. Financial projections show good profits and adequate cash flow to repay the loan and provide a return.

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82 views2 pages

Vinayaka Cafetaria & Cool Bar

The proposed project is a cafeteria to be opened in January 2016 in Chundale, Wayanad district. It will be located in a rented shop and serve beverages like tea, coffee, juices as well as snacks using automatic vending machines. The total cost is Rs. 14.28 lakh, with Rs. 6.5 lakh taken as a term loan at 14.5% interest over 5 years. The promoter, Mr. N. Ravi, will manage the cafeteria employing workers. Being located on a tourist route, the cafeteria aims to serve travelers stopping for refreshments. Financial projections show good profits and adequate cash flow to repay the loan and provide a return.

Uploaded by

rahaconsultationservices
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOC, PDF, TXT or read online on Scribd
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M/s VINAYAKA CAFETERIA

CHUNDALE P.O, WAYANAD DISTRICT


PROJECT REPORT
1. INTRODUCTION
The proposed project is a cafeteria at Chundale scheduled to be opened in
January, 2016. This unit will be functioning in a rented shop room with door No.
III/ 292, Chundale P.O., Wayanad district, Pin - 673 123. The cafeteria will be
functioned with automatic vending coffee / tea vending machines and semi automatic
equipments. Varieties of tea, coffee, ice creams, snacks, fruit juices and packaged
drinks will be served at the Cafeteria. In addition to these, spices, coffee powder and
tea dusts in packets also will be sold. The Cafeteria will be managed by the
promoter himself. Workers are engaged for making coffee, tea, snacks and fresh
fruit juices. The overall cost of the project is Rs. 14,28,133/-. Towards the
investment in machinery and equipments, it is proposed to avail a term loan of Rs.
6,50,000 /- and a working capital loan of Rs.3,00,00/-. The margin money towards
the project will be contributed by the promoter. The term loan will be repaid in 5
years. The loan will be serviced with interest @14.50 % p.a.

2. PROMOTER
The promoter of the unit is Mr. N. Ravi, aged 33 years, S/o. Nanjan, residing at Sree
Lakshimi Nivas, No.2., Perumthatta, Chundale P.O., Wayanad district, Pin – 673
123. He belongs to the scheduled caste community - Hindu Adikarnataka. He is
having sound technical and managerial skills. He will be self employed as the
manager of the unit.
3. SCOPE OF THE PROJECT
Wayanad is fast emerging as an important tourist location of Kerala. The nature,
location and weather in Wayanad are ideal for the development of tourism. The
number of tourists visiting Wayanad has been steadily increasing over the last decade.
The proposed cafeteria is located at in prime plot at Chundale town, which is the
junction of the Calicut -Ooty Highway and Calicut Mysore Highway. The main
customers of the cafeteria are the floating tourists travelling along these Highways.
As Cafeteria is located on the main tourist route of Wayanad, there will be
customers for the unit throughout the year. Tourists passing by can stop at this
junction and refresh themselves with fresh fruit juices, branded cool drinks, ice
creams, coffee, tea and snacks. Different varieties of tea such as masala tea, dhum
tea, vanilla tea, lemon tea, green tea, ginger tea, etc., will be the varieties of tea
served at the Cafeteria. Likewise native coffee, spiced coffee, instant coffee, etc.,
are the varieties of coffee that will be served to the customers' choice. Vanilla,
strawberry, butterscotch, etc., are the ice cream varieties. Varieties of snacks and
bakery will also be available here. Besides these, spices like pepper, cardamom,
honey, coffee powder, green tea, ctc tea, orthodox tea, etc., that are produced in
Wayanad will be sold in packets to the tourists visiting the cafeteria. All these
products are locally available. The income from sale of spices, coffee powder, tea
dust, etc., will augment the income from the Cafeteria, contributing to the cash flow
towards the repayment of loan together with interest and a handsome return to the
promoter.

The Profitability Statement shows good profits and the Cash Flow Statement depicts
enough cash accruals towards the servicing of the loan and a reasonable return to the
promoter. The Debt Service Coverage Ratio ( DSCR ) is in a comfortable position for
all the first five years of operation. Hence the project is financially viable.

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