integrated project presentation poorna madan pgfmg - 3
TRANSCRIPT
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