INTEGRATED PROJECT PRESENTATION

POORNA MADANPGFMG - 3

• To pick up a brand and study about it in details

• Give a business proposal and explain how it will work

•What are the strategies that it will have to follow in order to penetrate better in the market

• To show the entire planning of the project from scratch to how it will be launched

OBJECTIVE

THE CONCEPT

• To introduce the brand ZARA HOME in India

• Bring fashion into the homes of the people and change the meaning of home décor

• Take the brand ZARA to another level

• RATIONALE

THE MARKET:

• The furnishing market in India is booming

• Expected to touch 20,000 crores by 2012

• Has an average growth of 12%

• Contributes 4% to the GDP

• Provides employment to 15 million people

• It is the bed and bath segment that dominates the genre taking up two thirds of the furnishing segment.

• The shift in the industry toward branded products has become more pronounced in the recent past (exposure to international brands)

THE BRAND

• Zara is now a well established brand in India, benefit for zara home

• People trust the brand, loyal

• Zara home is doing good in the International market

• Since 2003, 293 stores in 28 countries and still expanding

n.(http://www.india-reports.com/summary/documents/wp-home-furnishing-051108.pdf

http://www.chillibreeze.com/articles_various/furnishing-textiles.asp

PROJECT NAME: Getting zara home to India (Brand extension) PROJECT MANAGER/TEAM MEMBERS: Poorna Madan

OPPORTUNITY: • Huge market of furnishing in India, expected to reach 20,000 crore by 2012•Introducing a new concept of Fashionable home decor• Zara is already an established brand in India and doesn’t need any efforts to make people aware about the brand• Zara home is doing well in other countries, it has 293 stores in 28 countriesPROJECT GOAL: To bring Zara home to

India and creating awareness about the new line of home decor. OBJECTIVES:

• To study the furnishing market before establishing the brand in India• To study the market and understand the potential customers • Then accordingly deciding on the strategies to be used• To establish its name in the home furnishing market just like it has established itself in the clothing line

SUCCESS CRITERIA:• Meeting potential customers• Meeting people who have visited zara home abroad• Introducing the concept of fashionable home decor and taking the furnishing market to another level ASSUMPTION: The name is so well accepted in India

because of its clothing lines that people will try its home decor products tooRISKS :Existing brands in the market

OBSTACLES:No store in India in order to understand its functioning in details

PROJECT SCOPING FORM

RESEARCH METHODOLOGY

RESEARCH OBJECTIVE 1: To study the brand Zara in details and understand its strategies and workingRESEARCH DESIGN: Exploratory and DescriptiveDATA COLLECTION METHOD: Primary (from stores, work staff), Secondary (internet, articles, essays)RESEARCH OBJECTIVE 2: To study the furnishing market and do the market analysisRESEARCH DESIGN: ExploratoryDATA COLLECTION METHOD: SecondaryRESEARCH OBJECTIVE 3: To understand what people think of the brand ZARA.RESEARCH DESIGN: DescriptiveDATA COLLECTION METHOD: Primary (Brand audit)SAMPLE DESIGN: Sample units: Women Sample size: 15 Sample technique: JudgementalRESEARCH OBJECTIVE 4: To understand the customers of home furnishing products and what they think of ZARA HOME coming to IndiaRESEARCH DESIGN: DescriptiveDATA COLLECTION METHOD: Primary (Questionnaire)SAMPLE DESIGN:Sample units: Women between the age of 25 - 45Sample size: 50Sample technique: JudgementalRESEARCH OBJECTIVE 5: To study about Zara Home and its working strategies in other countriesRESEARCH DESIGN: ExploratoryDATA COLLECTION METHOD: Secondary

WEAKNESS They play with limited colors Indian culture demands bright colors too

OPPORTUNITIES Booming market in India Increase in demand of branded goods (exposure to international brands)

THREATS Another fashion brand with same concept No acceptance

SWOT

SWOT ANALYSIS

INDITEX (PARENT COMPANY)• Inditex - large Spanish corporation, the world's largest fashion group

• Headquarters – Arteixo, in the province of A Coruña, Galicia, north western Spain.

• Runs over more than 5,000 stores worldwide

• BRANDS - Zara, Zara home, Massimo Dutti, Bershka, Oysho, Pull and Bear, Stradivarius, Tempe and Uterqüe, and also a low cost brand Lefties

• 2008 – Took over GAP

INDITEX BY 2011:• On April 20, 2011 - first Zara flagship in Australia• Made its presence in 5 continents, 78 countries• Full-year sales growth of 13% to Euro 12.53 billion• Net worth – US$31 Million http://www.inditex.com/en/who_we_are/our_grouphttp://www.retailangle.com/companynewslisting.asp?company_name=Zara&display_name=Zara)

BRAND VISION

• To be in tune with the customers and provide them with what they wish• To continuously increase its number of stores and have it’s presence everywhere• Expand itself online

BRAND MISSION

ZARA contribute to the sustainable development of society and that of the environment with which we interacts

Short lead time = more fashionable clothesLower quantities = scarce supplyMore styles = more choice and more chances of hitting it right.

BRAND PHILOSPHY

ZARA• Founded in 1975 by Amancio Ortega• Flagship store of Inditex• Strategy of Fast fashion• Unusual strategy of 0 advertising• 1980 – international expansion with Portugal• 1989 – U.S.A• 1990 - FRANCE

ZARA NOW : 2011• 1557 STORES IN 73 COUNTRIES, STILL COUNTING

• 44th most valuable global brands released by brand consultancy Interbrand, Leaving behinh high end fashion brands like HERMES, BURBERRY

• Zara - valued at USD 8,065 million (EUR 6,056.5 million) 8% higher than the previous year

http://thirdeyesight.in/articles/ImagesFashion_Zara_Part_I.pdf

http://www.interbrand.com/en/Default.aspxhttp://www.inditex.com/en/press/other_news/extend/00000887

FOLLOWS TRHEE TYPES OF STRATEGIES:

• COMPANY OWNED – MAXIMUM STORES

• FRANCHISING:– SMALL AND RISKY COUNTRIESEg: Andorra, Iceland, Poland, and the Middle Eastern countries

• JOINT VENTURE – LARGER, IMPORTANT MARKETS, BARRIER IN DIRECT ENTRYEg: Germany, Japan, India

MARKET ENTRY STRATEGY

MARKET ENTRY IN INDIA:JOINT VENTURE WITH TRENT LIMITEDFDI REGULATION – 49% HOLD WITH THE LOCAL RETAILER

REF. HAVARD CASE STUDY

• Launched first store – May 29, 2010, Select city walk (Saket), 18,000 sq. ft

• Within 1 WEEK – Promenade and Palladium mall Mumbai

• Joint venture with Trent Limited

• City walk - Highest one day sale recorded by an international retailer (90 lakh)

• Monthly sales of 4-5 crore at every store

• 2011 – 6 stores

ZARA INDIA

http://www.thirdeyesight.in/articles/zara_pitch.htm

Woman collection:•Coats•Blazers•Dresses•Skirts•Trousers•Jeans•Knitwear•Shirts•T-shirts•Shoes•Handbags•Accessories

TRF collection:•Coats•Jackets•Dresses• Skirts•Trousers•Jeans•Knitwear•Shirts•T-shirts•Shoes•Handbags•Accessories

Man •Coats and trench coats•Jackets •Blazers•Suits•Knitwear•Shirts•T- shirts•Trousers•Jeans•Basics•Shoes•Bags•Accessories•Home wear

KIDS•Girls ( 2- 14 years)•Boys (2-14 years)•Baby girl (3- 36 months)• Mini (0-9 months)

STRATEGY: NEW PRODUCTS – 10 DAYS12,000 DESIGNS EVERY YEARARTIFICIAL SCARCITY OF PRODUCTS = INCREASE IN SALES

PRODUCTS

PRICE

The woman collection starts at Rs. 990 and goes up to 12,990 in case of overcoats and jackets

Zara's scarcity climate allows the company to sell more items at full price

The man collection : Starts at Rs. 990 and goes up to Rs 11,990

The TRF Collection:Starts at Rs. 250 (Ganjees) and goes up to Rs, 5,690

The kids collection starts at Rs. 450 and goes up to Rs. 3,690

PLACE

DELHI – 3 STORES• Select citywalk, Saket• DLF Promenade, Vasant Kunj• Pacific Mall, Tagore Garden

MUMBAI – 1 STORE• Palladium commercial centre

PUNE – 1 STORE• Pheonix market city

BANGALORE – 1 STORE• Whitefield ( 3RD November 2011)

STRATEGY:Inditex for Zara opens stores and outlets that provide the Zara experience at high profile locations to set the image of the brand as being trendy, hip, high fashion and accessible

PROMOTIONStrategy of 0 advertisingSpends only .3% of its sales on promotion and advertising

PUBLIC RELATION TOOLS: • Stores• Launch event – RED CARPET • Catalogues, look books, campaigns (website) • Facebook• Style shoots

PERSONAL SELLING:• Newsletters

BELOW THE LINE ACTIVITY:• Cash back

THE BRAND ‘ZARA’

What comes to your mind when you hear the brand name ZARA?

Fast fashion, innovation, value for money, huge store, its logo, bright colours at the trf section, puffed sleeves t-shirts

What do you feel of others who wear Zara?

Experimental, brand conscious, well dressed, trendy, updated with fashion

What do you feel of yourself when you wear Zara?

Stylish, confident, happy, content, comfortable, chic, exclusive, fresh

What other brands are you aware of which are like Zara?

Nothing beats Zara, Forever 21, Vero moda, Mango, Promod

How do you compare the brand Zara with other brands?

Not fast but fastest fashion, Variety, price, availability of colours, quality

ZARA BY IT’S FOLLOWERS

PERSONALITY

FASHIONABLE, FRESH,

CHIC, TASTEFUL

CULTURE

EUROPEAN, SUSTAINABLE, FAST FASHION

PHYSIQUE

INNOVATIVE, TRENDSETTER, MAGNETIC, THE LOGO, THE STORE

RELATIONSHIP

DEPENDENT ON THE BRAND, GOOD QUALITY, AFFORDABLE PRICE

SELF IMAGE

CONFIDENT, STYLISH

CONTENT

REFLECTION

UPDATED, TRENDY, EXPERIMENTAL, ONE OF THEM

PICTURE OF RECIPIENT

EXTERNALIZATION

INTERNALIZATION

BRAND IDENTITY PRISM

KAPFERER’S BRAND IDENTITY PRISM

PICTURE OF SENDER

I LOVE ZARA: MEMORIES AND THOUGHTS“MY TRIP TO A MALL IS INCOMPLETE IF I DON’T VISIT ZARA”

“I LOVE ZARA SOO MUCH THAT IF IT WAS A MAN I WOULD HAVE MARRIED HIM, LOL!!”

“ I DEPEND ON ZARA , IF I HAVE TO GO SOMEWHERE AND NEED SOMETHING TO WEAR I KNOW I WILL FIND SOMETHING AT ZARA”

“I CAN NEVER FORGET MY 21ST BIRTHDAY DRESS THAT I GOT FROM ZARA 2 YEARS BACK, I LOVE IT!!”

“MY BOYFRIEND GIFTED ME 2 DRESSES FROM HIS FIRST SALARY, THE DRESSES ARE VERY PRECIOUS TO ME“

FUNCTIONAL BENEFITS: EASY ACCESS TO LATEST FASHION AT AN AFFORDABLE PRICE

EMOTIONAL BENEFITS: WEARING THE LATEST FASHION, HAVING THE BEST OF CLOTHES , CONTENT

SELF EXPRESSIVE BENEFITS: STYLISH, EXCLUSIVE

VALUE PROPOSITION

• Youngest commercial format by Inditex

• Created in 2003

• Part of Zara

• Most of its products are textiles: bed, table and bathroom linens

• Brings Fast fashion to home furnishing

• Has 295 stores in around 30 countries

ZARA HOME

PRODUCTS TO BE LAUNCHED

BEDROOM BATHROOM

TABLEWARELIVING ROOM

HOMEWARE BODY AND BATH

MERCHANDISE MIX

• Solid coloured bed linen, plain quilts, pillow sets, basic rugs

• Coloured basic towels, bathmats, soap dishes• Basic coloured table cloths, napkins, glasses,

cutlery

BASIC

• Printed and self bed linen, decorative quilts, printed or stripped rugs

• Bathroom sets• Dinner sets, stemmed glasses, coffee spoons, salad

tossers• Frames, mirrors, vases, lamps

FASHION BASIC

• Animal print bed sheets and rugs, carved cutlery, placemats, napkin rings, tablemats

FASHION MERCHAND

ISE

BEDROOM: Rs. 950 – Rs. 15,000 (for some specific quilts)

DINNERWARE: Rs. 900 – Rs. 8000 (dinner sets)

LIVINGROOM: Rs. 900 – Rs. 18,000 (some rugs)

HOMEWEAR: Rs. 900 – Rs. 3000

BATH AND BODY LINE: Rs. 250 – Rs. 1500

BATHROOM: Rs. 450 – Rs. 3000

The pricing would be similar to that in DUBAI. (REFERED)The products would be between the range of Rs. 500 – Rs. 20,000

PRICE

Zara already has a very strong name, benefit for Zara Home

PUBLIC RELATION:• CATALOGUE, LOOKBOOK, CAMPAIGNS• FACEBOOK – Creating a Zara home India page, posting about its opening on the Zara clothing page• EVENT: Red carpet event in the store, only by invitation done by propaganda events INAUGRATION BY TWINKLE KHANNA• HOME STYLIYST

PROMOTION

• Cash back• Delivery• Coupons at Zara clothing• Gift Vouchers:i) Rs. 10,000 gift card for Rs.7500ii) Rs. 12,500 gift card for 15,000

COST OF THE EVENT

INVITATION : A CARD IN A BOX : Rs. 300 per cardCATALOGUE: Rs. 250 per catalogueCANDLE: Rs. 100 per piece TOTAL COST = 650 per pieceINVITES = 350 ApproxTotal cost = Rs. 2,27,500

EVENT:ORGANIZED BY PROPAGANDA EVENTSF&B = Rs. 2500 per person Total cost = Rs.2500*350 = Rs. 8,75,000 approx DÉCOR, EVENT AND ORGANIZATION FEE :Rs.2,00,000PLUS THE FEE FOR CALLING TWINLE KHANNA = Rs. 10,00,000Total cost = Rs. 20,75,000

TOTAL COST : Rs. 23,02,500 approx

JANUARY FEBRUARY MARCH APRIL MAY JUNE

EVENT GIFT VOUCHERS

GIFT VOUCHERSSTYLE SHOOTS

COUPONS STYLE SHOOTS

--------

STYLE SHOOTS

FREE DELIVERY FREE DELIVERY FREE DELIVERY FREE DELIVERY FREE DELIVERY FREE DELIVERY

CASH BACK ON PURCHASE

CASH BACK ON PURCHASE

CASH BACK ON PURCHASE

CASH BACK ON PURCHASE

CASH BACK ON PURCHASE

CASH BACK ON PURCHASE

ONLINE PROMOTIONS

ONLINE PROMOTIONS

ONLINE PROMOTIONS

ONLINE PROMOTIONS

ONLINE PROMOTION

ONLINE PROMOTION

HOME STYLIST HOME STYLIST HOME STYLIST HOME STYLIST HOME STYLIST HOME STYLIST

JULY AUGUST SEPTEMBER OCTOBER NOVEMBER DECEMBER

---------- ----------

COUPONS --------- COUPONS COUPONS

FREE DELIVERY FREE DELIVERY FREE DELIVERY FREE DELIVERY FREE DELIVERY FREE DELIVERY

CASH BACK ON PURCHASE

CASH BACK ON PURCHASE

CASH BACK ON PURCHASE

CASH BACK ON PURCHASE

CASH BACK ON PURCHASE

CASH BACK ON PURCHASE

ONLINE PROMOTIONS

ONLINE PROMOTIONS

ONLINE PROMOTIONS

ONLINE PROMOTIONS

ONLINE PROMOTION

ONLINE PROMOTION

HOME STYLIST HOME STYLIST HOME STYLIST HOME STYLIST HOME STYLIST HOME STYLIST

INTEGRATED MARKETING COMMUNICATION TABLE

1st STORE, Year 1• SELECT CITYWALK, Saket• Exclusive Store in Delhi• AREA: 8000 Sq. Ft• RENT: 500 Rs per sq ft.• INTERIORS: 2000 Sq. Ft

PLACE 2nd STORE, Year 2Palladium mall, MUMBAIAREA: 8000 sq. ft approxRENT: 300 sq. ftINTERIORS: 2000 Sq. ft

CONSUMER PROFILE

TARGETING

DEMOGRAPHICS:

AGE: 25 Years – 35 years

INCOME: UPPER MIDDLE CLASS

OCCUPATION: WORKING WIVES, YOUNG ENTERPRENEURS

GEOGRAPHICS: South Delhi – Vasant Vihar and Saket. Nearby areas of Select Citywalk.

PSYCHOGRAPHICS: Home lovers, fashionable.

TARGETING

DEMOGRAPHICS:

AGE: 25 Years – 35 years

INCOME: UPPER MIDDLE CLASS

OCCUPATION: WORKING WIVES, YOUNG ENTERPRENEURS

GEOGRAPHICS: South Delhi – Vasant Vihar and Saket. Nearby areas of Select Citywalk.

PSYCHOGRAPHICS: Home lovers, fashionable.

SEGMENTINGDEMOGRAPHICS:

AGE: 22 YEARS – 45 YEARS

INCOME: UPPER MIDDLE CLASS – UPPER CLASS

OCCUPATION: WORKING WIVES, YOUNG ENTERPRENEURS, INTERIOR DESIGNERS, HOUSEWIVES.

GEOGRAPHICS: Delhi – Saket, Greater Kailash, Model town, vasant vihar

PSYCHOGRAPHICS: Fashionable, brand conscious, home lovers, calm, peaceful.

SEGMENTINGDEMOGRAPHICS:

AGE: 22 YEARS – 45 YEARS

INCOME: UPPER MIDDLE CLASS – UPPER CLASS

OCCUPATION: WORKING WIVES, YOUNG ENTERPRENEURS, INTERIOR DESIGNERS, HOUSEWIVES.

GEOGRAPHICS: Delhi – Saket, Greater Kailash, Model town, vasant vihar

PSYCHOGRAPHICS: Fashionable, brand conscious, home lovers, calm, peaceful.

“I hope Zara home turns out to be like Zara, good stuff, stylish, something that stands out and affordable”

“I have been to its store in Dubai at the Dubai Mall, they have beautiful stuff. Its classy and different”

“My mom likes what I buy from zara, she likes the brand, I think she would definitely go for Zara Home”

“I love doing decorating my home and if something like zara home enters Delhi, I would be glad”

PEOPLE’S REACTION ON ZARA HOME COMING TO INDIA

WHAT MAKES ZARA HOME DIFFERENT?

Innovation: not to stop but always producing new things based on customer desires and changes in market.

The brand aims to provide its customers with a fashionable home decor line at lower prices, which makes the brand popular

Manufactures products according to the demands of the customers, react instantly

Adds new products to the collection in every 10 – 12 days

POSITIONING

Products Fine tableware,cutlery, glasses, luxuriois bed linen, cushions, pillows, kurtas, bath and skincare products

Price STARTS AT rs. 500 – rs.3,00,000

Place 10 stores. Delhi -3, mumbai – 3, bangalore – 1, hyderabad – 1, Chennai – 1, singapore – 1

Promotion Gift vouchers, personal seller, bride wishlist, delivery

COMPETITOR ANALYSIS

GOOD EARTH

Products Furniture, bed & bath, home accent, tableware, mirror, wall art, lighting and floor covering

Price Rs. 500 – 50,000

Place Dlf place, new delhi

Promotion Newspapers, magazines

PURE

HIGH

PRICELOW

HIGHLY INNOVATIVE

HIGH

GOOD EARTH

ZARA HOME

NO INNOVATIVENESSLOW

PURE

PERCEPTUAL MAPPING

BRAND ELEMENTS – ZARA HOME

NAME – ZARA HOME : SIMPLE, LIKABLE, EASY TO REMEMBER

LOGO : VERY CLEAR, DIRECT, RIGHT SIZE (FIT BOTH THE EYES)

COLOURS -BROWN : Color of earthWHITE - Purity

PACKAGING - PAPER BAGS : ECO - FRIENDLY

STRATEGIES OF ZARA HOME

BUSINESS STRATEGYDIFFERENTIATION:• ADDS FASHION TO HOME DÉCOR• ADDS NEW PRODUCTS IN EVERY 10 DAYS• GOOD QUALITY AT AVERAGE PRICE

MARKET COVERAGE EXCLUSIVE:• TWO STORES – NEW DELHI AND MUMBAU• STRONG CIRCLE OF INFLUENCE• WEEKENDS – PEOPLE FROM DIFFERENT CITIES VISIT• HUB FOR WORK

CHANNEL STRATEGY PULL: • TARGET END CONSUMERS DIRECTLY• CUSTOMERS SEEK THE PRODUCTS

SALES VALUE (YEAR 1)

SALES VALUE= SALES QUANTITY *AVERAGE SELLING PRICE

Monthly sales = 13350*2500= Rs. 3, 33, 75,000

Annual sales = 3, 33, 75,000*12 = Rs. 40, 05, 00,000

SALES VALUE (YEAR 2)

SALES QUANTITY = 13350 + 12% Growth + 13350

ANNUAL SALES = 28300*2500*12 = Rs 84,90,00,000

SALES PER SQUARE FEET

Year 0

SPF= SALES/SIZE OF THE STORE

Monthly SPF = 3, 33, 75,000/8,000 = Rs. 4170

Annual SP = 40, 05, 00,000/8000 = Rs. 50062

Year 1

Annual SPF = Rs 84,90,00,000/16,000

= Rs. 53065

Preliminary Expenses Rs. (Year 0) Rs. Year 1

Legal Expenses 40,000 -

Brand Launch costs (Marketing) 24,57,500 24,00,000

Other preliminary expenses -

Total 24,97,500 24,00,000

SALES

PRELIMINARY EXPENSESSPF

Initial investment Total (YEAR 0)

Year 1

Total initial investment in fixed assets

1,50,000

1,50,000

Interiors 1,60,00,000

1,50,00,000

Other Fixed Assets 40,000

40,000

Building N.A N.A

Total Fixed Assets 1,61,90,000

1,51,90,000

Pre operative expenses 24,97,500

24,00,000

Working Capital Investment (20% of First year Sales)

8,01,00,000

16,98,00,000

Opportunity cost of existing fixed assets Initial Investments

9,87,87,500

18,73,90,000

Office and Administration Overheads

Monthly

Annually Year 0

Year 1

Rentals (Rent per store*Area *12*Number of Stores)

500*8000 =40,00,000

500*8,000*12*1= 4,80,00,000

300*8000*12+4,80,00,000= 7,68,00,000

Electricity 1 ,75, 000

1,75,000*12 =21,00,000

42,00,000

Salary 2,28,000

27,36,000 54,72,000

Depreciation 5,600

67,2000 41,900+67,200= 1,09,100

Other Office Overheads n.a

n.a n.a

Total 44,08,600

5,29,03,200

8,65,81,100

Selling and Distribution Overheads Advertising and Sales promotion ( .3% of Sales)

1,00,125

12,01,500 25,47,000

Logistics (1% of Sales) 35,000

40.20,000 80,40,000

Other Selling Overheads n.a n.a

Total 1,35,125

52,21,500 1,05,87,000

INITIAL INVESTMENT OVERHEADS

COST SHEET Monthly Annual (Year 1)

Annual (Year 2)

Cost of Finished Goods

73,42,5008,81,10,00

015,56,50,00

0 ( Product Cost * Units Sold) Add Other Direct Costs 0 0 Cost of Goods Sold

73,42,5008,81,10,00

015,56,50,00

0 Add Office & Administration Overheads

Rent 40,00,000 4,80,00,000

7,68,00,000

Electricity 1 75,000

21,00,000

42,00,000

Salary 2,28,000 27,36,000 54,72,000Depreciation 5600 67,200 1,09,100 44,08,

6005,29,03,20

08,65,81,000

Add Selling & Distribution Overheads

Advertising & Sales promotion

1,00,125 12,01,500

25,47,000

Logistics 35,000 40,20,000

80,40,000

Discount (10% of sales) 4,00,50,000

8,49,00,000

4,52,71,500

9,54,87,000

Cost Of Sales 18,62,84,700

33,77,18,000

Add Interest cost 0 0 0 ( Interest Rate * Loan) Total Cost 18,62,84,7

0033,77,18,00

0

PROJECTED INCOME STATEMENT Year 1 Year 2

In Rs. In Rs.

Sales 40,05,00,000

84,90,00,000

Less Cost of Goods Sold : 8,81,10,000

15,56,50,000

Gross Profit 31,23,90,000

69,33,50,000

Less

Office and Administration Overheads 5,29,03,200

8,65,81,000

Selling and Distribution Overheads 4,52,71,500

9,54,87,000

=Operating Profit (EBIT) 21,42,15,300

51,12,82,000

Less Interest on Loan 0 0

Less Preliminary Expenses ( Written Off- 1/5th of preliminary expenses)

24,97,500

24,00,000

EBT 21,17,17,800

50,88,82,000

Less: Income Tax @33.99% 7,59,08,949

17,29,68,991

EAT (NET PROFIT) 13,97,54,920

33,59,13,009

COST SHEETINCOME STATEMENT