EXECUTIVE SUMMARY

Hospitality industry is one of the fast growing industry with an expected growth of 15- 20 % annually. Goa is the second most preferred destination for FTA (Foreign Tourist Arrivals) and DTU (Domestic Travel Unit).

VISION: To be the preferred hotel brand committed in rendering creative & personalized touch to our guest MISSION: Treat everyone they wish to be treated, who are looking for a premium, exclusive lifestyle offering that reflects their personalities and attitudes. and remain true to our heritage CREDO: Passion for perfection

Keys to Success: Unique experience and one of its kind in INDIA

COMPANY SUMMARY
Company Ownership: Privately owned by 3 partners and Le Meridien is the silent partner and profit are divided equally amongst 4 of us. Company Locations: Le Meridien Resort & Spa:

We are situated on PALOLEM BEACH SOUTH GOA

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Prof. Pooja Thorat

 Total area 18814 sq.mt (including beach) Price paid Rs 11,28,84,000/-

START-UP PLAN:
WHAT WE HAVE IN STORE

RESORT: Over the water bungalows: Weve special designed over the water bungalows masterminded by the award winning British designer and architect RICHARD HYWEL EVANS. We have 20 rooms. SPA: Underwater Spa: Specially designed under water spa for consumers who are looking for a premium, exclusive lifestyle offering that reflects their personalities and attitudes. We have 8 cubicles for private spa treatment. Restaurant: Open beach restaurant 20 tables Indoor Pavilion restaurant 30 tables Water sports : Exclusively for the guests staying at the LE MERIEDIN RESORT. We have 2 yatch and 5 Jet Skis and 30 boats.

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MARKETING STRATEGY
SEGMENTATION & TARGETING Target Customers Foreigners , celebrities Neo Riches, Aristocrats,

Targeting around 800 customers per year

Segmentation:

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PROMOTION:

Pull strategy It refers attracting customers, since it is one of its own kind, were applying pull strategy. Word of mouth & covert advertisement in movies By providing quality services, we expect word of mouth technique will work for us. We will also have covert advertisement in movies. Multi layered selling for yearly membership for Spa We will be offering special discounts to the members who will bring in new customers for us. Sampling of the products used We will provide small units of the products that we use during spa treatments to our customers who wish to buy them. Special offer to couples for Spa Couples going through spa treatment will be offered special packages. Travel alliance We have alliances with reputed travel companies like Kuoni, Kesari and ThomasCook.

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Lucky Draw There will be lucky draws held annually for our customers, we will be providing free resort package for 3 night and 4 days.

Brochures circulated along with flight tickets when people are travelling to Goa. Water sports facilities exclusively for guest staying at the resort

Recreation facilities We have facilities for outdoor games like volley-ball, badminton and virtual cricket. We have a unique blend of THAI TECHNIQUES & AYURVEDIC MASSAGE FROM KERALA to REJUVENATE you.

We have a separate relaxation pod where posttreatment guests can chill out on an over-sized day bed

Cars & Bikes available on rent We provide vehicles to our exclusive guests for their conveyance also to make them feel comfortable, pleasant and making them feel privileged to be our guests. We are ECO-FRIENDLY We dont emit any pollutants in the environment or either beneath waters.

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PRICING:

RESORT: Rs.40000 per day (inclusive of breakfast , lunch , dinner) for couples. Rs. 18000/- per day for children above 6 years.

SPA: Services starts from 7000-50000. It includes head spa, foot spa, body spa, full body treatment, manicure, pedicure etc.

WATER SPORTS: Rs.1000 per person for 4 rides.

COMPETITION:
As of now there is no competition as it is one of its own kind. Value added services: 1. Membership for the spa
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2. Online booking 3. Discount on bulk booking 4. Arrange wedding ceremonies and parties (We have tie-up with the leading Event Management company)

SWOT ANALYSIS
STRENGTH i) One of its kind Were only one of its kind, means till now theres no such spa or resort built with such theme in India. ii) Gives you unique experience Being one of its kind, we promise to render an absolute exclusive treatment to our all guests, which will definitely make them feel privileged residing with us. iii)Private beach Our resort acquires private beach, and bungalows built over it, that really makes our guests feel pleasant and joy with sheer pleasure on such a wide coastal stretch. WEAKNESS

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i) Geographical limitation We are only rendering our exclusive services in Goa, and not in any other city. ii) Limited target Our target is very much confined i.e. ; its only for neo-riches, aristocrats and for the upper creamy layer. OPPORTUNITY i) New horizon This kind of venture will really provide a new and absolutely different horizon to service industry. THREAT i) No threat - Since its only one of its kind in the country, so as for now, theres no kind of threat.

LEGAL ISSUES:

Purchased land The land is purchased, and henceforth license has been fetched from the legal bodies concerned for the same. Purchased license required for hospitality - All the formal duties were performed for rendering hospitality services. Partnership deed Since, this venture is initiated by three prime partners and one franchisee renderer,

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therefore partnership contract has been signed amongst all of us.

Franchise contract Le-Meridien being the franchiser, we have signed the Partnership Deed.

SOURCES OF FUNDS
PARTICULARS Owners Fund (7,00,00,000 each partner) Investment From Le-Meridein AMOUNT 21,00,00,000 21,00,00,000

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Loan From Reliance

Venture

Capital 10,00,00,000

Loan From Bank State Bank Of 13,00,00,000 India TOTAL INVESTMENT 65,00,00,000

Profit Sharing Ratio among the three partners is 1:1:1. As we are the franchisee of Le-Meridein they are investing Rs.21,00,00,000 and they are not involved in the management of the company but they are the silent partner of the company and sharing same profits as of the partners. We are taking loan from the venture capitalist Reliance to fund our business and expect them to invest Rs. 10,00,00,000 and the interest rate is expected to be around 16.50% p.a. We are also taking loan from State bank of India of Rs. 13,00,00,000 and the interest rate is expected to be 15.50% p.a.

APPLICATION OF FUNDS
Particulars Purchasing land and beach
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Amount 11,28,84,0
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Cost of Construction Fixed Expenses (Resort) Fixed Expenses (Spa) Fixed Expenses (Restaurant) Fixed Expenses (Water Sports) Vehicles purchased

00 40,00,00,0 00 38,28,000 13,91,000 7,65,000 80,95,000

5,00,00,00 0 General expenses 1,27,05,00 0 Service charged paid to the architect 2,00,00,00 firm 0 Total 60,96,68, 000

BREAK UP OF ALL FIXED COST

Fixed Expenses Resort Bed and Matress Bed Sheets Pillows Matress (Single) Blankets Wardrobes Dressing Table
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of

Quantity*Ra Amount te 20*40000 800,0 00 60*300 18, 000 200*200 40, 000 20*10000 200,0 00 60*2000 120,0 00 20*30000 600,0 00 20*5000 100,0
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00 Side Table Sofa Set Bathroom Set Total 000 Fixed Expenses of Spa Quantity*R Amount ate Massage Bed 8*10000 80,0 00 Bed Sheets 50*300 15 ,000 Hydro therapy Tubs 4*125000 500,000 Massage Stone Heater 8*10000 80,0 00 Steam and Sauna Bath 1*500000 500,000 Facial Manicure and 8*12000 96,0000 Pedicure Equipment Hot Stone Massage 8*15000 120,000 Equipment Total 13,91,00 0 Fixed Expenses of Resort Indoor 4 Seater 20 Table Indoor 2 Seater 10 Table Outdoor 4 Seater 10 Table Outdoor 4 Seater 10 Table Indoor 120 Chairs
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40*2000 000 20*25000 00 20*100000 00

80, 500,0 2,000,0 4,458,

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Outdoor 100 Chairs Table Cloth 120 pieces Total (Around Off by the Supplier) General Fixed Expenses Art Purchase Camera Security Utensils A/C Lighting Television Total Particulars Salary (Spa) Salary (Restaurant) Salary (Resort) Salary (Water Sport) Power (Overall) Inventory (Spa) Inventory (Restaurant) Inventory (Resort) Maintenance (Cleaning Service hired) Fuel (Water Sports and Vehicles) Interest on Bank loan (15.50%) Interest on loan from venture capitalist (16.50%) Other Administration Expenses Total

7,65,000 Amount 1,00,00,000 2,50,000 5,00,000 4,55,000 10,00,000 5,00,000 1,27,05,000 Amount 61,44,000 1,11,96,000 42,42,000 30,00,000 5,05,80,700 50,57,680 1,04,95,080 47,56,300 12,00,000 8,45,200 2,01,50,000 1,65,00,000 10,00,000 13,51,66,9 60

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EMPLOYEES For Resort: We have 3 shifts of 8 hours each. The employees include: 2 Managers each 2 Assistant Managers each 6 Receptionist 9 Bell Boy 4 Housekeeping 2 Caller (Housekeeping) each 6 Cleaner 3 Security guards 8,00,000 4,00,000 96,000 each 48,000 each 72,000 each 48,000 48,000 each 54,000 each

For Spa and Restaurant we have 2 shifts of 8 hours each. For Spa 2 Receptionist 16 Expertises each 4 Cleaner 96,000 each 3,60,000 48,000 each

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For Restaurant 12 Chefs each 8 Captain each 20 Waiter and Cleaner 2 Security Guards 9 Helpers each 6,00,000 1,92,000 72,000 each 54,000 each 1,20,000

Manager, Assistant Manager and Receptionist for the restaurant and resort are the same. For Water Sports 25 Riders 10 Life Guards 96,000 each 60,000 each

INVENTORY For Spa Product: Bath Salt, Bath Bubble, Bath Bomb, Dead Sea Salt Scrub, Face Scrub, Mud Mask Body
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Wrap, Lotion, Cream, Moist, Shampoo, Hair Moist, Sugar Scrub, Choco, Lotion, Shea Butter Cream, Aroma Therapy Fragrance, Home Fragrance, Massage Oil, Body Oil, Hair Oil, Bar Soap, Oatmeal Soap, Milk Soap, Seawood Lotion. BREAK EVEN ANALYSIS The expected sales of the company for year one is around Rs.21,00,00,000 The sales are expected to grow at 18 to 20 % p.a. And the variable expenses are expected to increase at 5 to 6% as it is the cost apart from fixed expenses and it will not change in the proportion of sales. So, we are expecting to recover our cost i.e. cost after 7 to 8 years and thus entering the profit area.

FUTURE PLAN The companys future plan is to first achieve Break Even and then pay off the debt and make it a debt free company. As it is only located in Goa, after successful establishment of it in Goa we will try to expand and set up franchisee in different part of the world.
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