ENTREPRENEURSHIP PROJECT REPORT

ON COFFEE@CAFE SHOP
In partial fulfillment of the requirements for the degree of BACHELOR OF TECHNOLOGY BIJU PATTNAIK UNIVERSITY OF TECHNOLOGY, ORISSA DEPARTMENT OF MECHANICAL ENGINEERING
BALASORE COLLEGE OF ENGINEERING AND TECHNOLOGY

BALASORE

Submitted by:
PRADEEP KUMAR 8th Semester, B.TECH Regd.No:0801225283

Balasore College of Engineering & Technology

BALASORE COLLEGE OF ENGINEERING AND TECHNOLOGY

SERGARH, BALASORE-756060, ORISSA PH.-(06782)236045, 236041, FAX-(06782)236610
[Approved by AICTE, recognized by Govt. of Orissa and affiliated to BPUT]

CERTIFICATE
This is to certify that the ENTREPRENEURSHIP PROJECT entitled COFFEE@CAFE SHOP presented by Mr. PRADEEP KUMAR bearing Regd no.-0801225283, in 8th semester of his, is a bonafide work of his own, and submitted in partial fulfillment of the requirement for award of bachelors degree in Information Technology.

Submitted to: Mr. S.K. Chatterjee H.O.D, Mechanical Engineering

ACKNOWLEDGEMENT

I take this opportunity to express my hearty thanks to all those who individually as well as collectively helped me in the successful completion of this report. I am thankful to Mr. S.K CHATTERJEE, H.O.D., of department of Mechanical Engineering, and also thankful to all the faculties of Mechanical Engineering of Balasore College of Engineering and Technology for having supported me to carry out this entrepreneurship report and for their constant advice. I also acknowledge the continuous encouragement rendered by my friends.

PRADEEP KUMAR Regd. No.:0801225283 Sem. : 8th Branch: Mechanical Engineering

ABSTRACT
An internet caf or cybercaf is a place where one can use a computer with Internet access, most for a fee, usually per hour or minute; sometimes one can have unmetered access with a pass for a day or month, etc. It may serve as a regular caf as well, with food and drinks being served. Internet cafs are located worldwide, and many people use them when traveling to access webmail and instant messaging services to keep in touch with family and friends. Apart from travelers, in many developing countries Internet cafs are the primary form of Internet access for citizens as a shared-access model is more affordable than personal ownership of equipment. A variation on the Internet caf business model is the LAN gaming center, used for multiplayer gaming. These cafs have several computer stations connected to a LAN. The connected computers are custom-assembled for game play, supporting popular multiplayer games. This is reducing the need for video arcades and arcade games, many of which are being closed down or merged into Internet cafs. The use of Internet cafs for multiplayer gaming is particularly popular in certain areas of

Asia like China, Taiwan, South Korea and The Philippines. There are also Internet kiosks, Internet access points in public places like public libraries, airport halls, sometimes just for brief use while standing. Many hotels, resorts, and cruise ships offer Internet access for the convenience of their guests; this can take various forms, such as in-room wireless access, or a web browser that uses the in-room television set for its display (usually in this case the hotel provides a wireless keyboard on the assumption that the guest will use it from the bed), or computer(s) that guests can use, either in the lobby or in a business center. As with telephone service, in the US most mid-price hotels offer Internet access from a computer in the lobby to registered guests without charging an additional fee, while fancier hotels are more likely to charge for the use of a computer in their "business center."

TABLE OF CONTENT
ABSTRACT................................................................................................................... 1. GENERAL INFORMATION................................................................................... 2. ENTREPRENUER PROFILE................................................................................... 3. TYPE OF THE PRODUCT / SERVICES................................................................ 3.1 Type of the Project.............................................................................................. 3.2 Product / Services Description............................................................................ 3.3 Major Consumers................................................................................................ 4. MARKET POTENTIAL........................................................................................... 4.1 Present Demand and Supply of the Product:...................................................... 4.2 Competition......................................................................................................... 4.3 Target Clients....................................................................................................... 4.4 Marketing Strategy..............................................................................................

5. PRODUCTION SCHEDULE................................................................................... 5.1 No. of Working Days per Annum....................................................................... 5.2 No. of Working Shifts (8hrs) per Day................................................................. 5.3 Installed Capacity (annual).................................................................................. 6. DETAILS OF THE PROPOSED PROJECT............................................................ 6.1 Land and Building............................................................................................... 6.2 Machineries / Equipments................................................................................... 6.3 Misc. Fixed Assets............................................................................................... 6.4 Preliminary and Pre-Operative Expenses............................................................ 6.5 Sales Revenue (Annual)...................................................................................... 6.6 Raw Material (Monthly Requirement)................................................................ 6.7 Utilities Annually............................................................................................. 6.8 Man Power (Salaries/Wages)- Monthly.............................................................. 6.9 Repairs and Maintenance- Monthly.................................................................... 6.10 Selling and Distribution Expenses Monthly.................................................. 6.11 Administrative Expenses Monthly................................................................. 6.12 Depreciation....................................................................................................... 7. WORKING CAPITAL.............................................................................................. 8. TOTAL COST OF THE PROJECT.......................................................................... 9. MEANS OF FINANCE............................................................................................. 10. COST OF PRODUCTION.14 11. PROFITABILITY PROJECTIONS........................................................................ 12. BREAK EVEN POINT........................................................................................... 13. PROFITABILITY RATIO.16 14. RATE OF INVESTMENT..16 15(A) LIST OF SUPPLIERS OF MACHINERIES...................................................... 15(B). LIST OF SUPPLIERS OF RAW MATERIALS..17 15(C). BANK AND BRANCHES HAVING FINANCIAL OPERATION 17 16. CONCLUSION..18

1. GENERAL INFORMATION
NAME OF THE FIRM PROJECT LOCATION TYPE OF ORGANISATION ADDRESS : COFFEE@CAFE SHOP : COFFEE@CAFE : Bhubaneswar : Partnership : Infocity Patia,Bhubaneswar Orissa-760002 NAME OF THE ENTREPRENEURS : Pradeep Kumar

BIRTH DATE

: 02.03.1990

2. ENTREPRENUER PROFILE

1. Name : Pradeep Kumar Educational Qualification: Bachelor of Technology Technical Skills: AUTOCAD , CATIA.

3. TYPE OF THE PRODUCT / SERVICES

3.1 Type of the Project Internet cafe 3.2 Product / Services Description The project aims at developing a new dimension in the building up of internet par lour along with different services like espresso coffee and snacks which will attract more customers than a mere internet shop. 3.3 Major Consumers There are no age groups specified. Our major consumers will be people who after being tired from their hectic work schedule come to this cozy little place to relax with a cup of coffee along with their work done in the internet.

4. MARKET POTENTIAL
4.1 Present Demand and Supply of the Product: Java Net will provide its customers with full access to the Internet and common computer software and hardware. Some of the Internet and computing services available to Java Net customers are listed below: Access to external POP3 email accounts. Customers can sign up for a Java Net email account. This account will be managed by Java Net servers and accessible from computer systems outside the Java Net network. FTP, Telnet, Gopher, and other popular Internet utilities will be available. Access to Netscape or Internet Explorer browser. Access to laser and color printing. Access to popular software applications like Adobe Photo Shop and Microsoft Word.

JavaNet will also provide its customers with access to introductory Internet and email classes. These classes will be held in the afternoon and late in the evening. By providing these classes, JavaNet will build a client base familiar with its services. The computers, Internet access, and classes wouldn't mean half as much if taken out of the environment JavaNet will provide. Good coffee, specialty drinks, bakery goods, and a comfortable environment will provide JavaNet customers with a home away from home. A place to enjoy the benefits of computing in a comfortable and well-kept environment. 4.2 Competition Currently there are Internet shops with usually provide the common broadband services but our enterprise serves the customers with the facility of JAVA NET which gives an environment for internet as well as computing services

4.3 Target Clients Our main target client belongs to the age group of 18-60. However anybody who has to spend this free time at a place which will sooth his mind and body. 4.4 Marketing Strategy The Marketing Strategy will be advertising the product in the media through the various advertisements telecasted in different channels, in print media and advertisement on the internet.

5. PRODUCTION SCHEDULE
5.1 No. of Working Days per Annum The shop will remain open for all days except on Sunday, national & local holidays. No. of Working Days per Annum = 360 days 5.2 No. of Working Shifts (8hrs) per Day Since it is a business shop , so the working shift from 10.00 am to 9 pm . There will be a lunch time of 1hour from 1PM to 2PM.There will be no night shift. 5.3 Installed Capacity (annual) For the initial stage we are planning to set up this kind of shop mostly in those places where software companies, engineering colleges are set up. This would prove to be click because the shop remains attractive to the younger generation of people. Mostly the college going student would prefer to spend their free time in a air conditioned place enjoying with a sip of coffee or snacks just by paying a mere amount .

6. DETAILS OF THE PROPOSED PROJECT

JavaNet will invest in high-speed computers to provide its customers with a fast and efficient connection to the Internet. The computers will be reliable and fun to work with. JavaNet will continue to upgrade and modify the systems to stay current with communications technology. One of the main attractions associated with Internet cafes, is the state of the art equipment available for use. 6.1 Land and Building
Sr. No. 1. Particular Land Area Required NA Total Value(P.A.) NA Remarks NA

2.

Building rent)

(on 20000sqFt Total:

Rs. 1,75,000 Rs. 3,60,000

Rental charge is nearly Rs. 15,000 per month

6.2 Machineries / Equipments

Sr. No. 1. 2. 3. 4. Total Description Air conditioner Coffee machine Microwave Oven Desktops Nos. Required 3 1 1 15 Rate(Rs.) 15,000 7000 11,000 20,000 Total Value(Rs.) 45,000 7,000 11,000 3,00,000 3,63,000

6.3 Misc. Fixed Assets

Sr. No. 1. Description Furniture Nos. Required Table (12) Chairs (15) Racks (100) 2. 3. 4. 5. 6. Total: Inverter Stabilizer printer Broadband connection Lan connection 1 1 1 2 20 Rate(Rs.) 500 400 1000 7,000 15,000 3000 3000 200 Total Value(Rs.) 6,000 6,000 1,00,000 7,000 15,000 3000 6,000 4,000 1,47,000

Total Fixed Assets: (6.1+6.2+6.3) 3,60,000+3,63,000+1,47,000=Rs. 8,70,000.

6.4 Preliminary and Pre-Operative Expenses
Sr. No. 1. Particulars Interest implementation 2. 3. Establishment Expenses Start-Up Expenses Misc. expenses Total 1,10,000 1,60,000 36,000 Amount (Rs.) during 14,000 Remarks

6.5 Sales Revenue (Annual) The sales revenue of the business depends on the number of customers it has dealt with in a day.
Year (2009) 1. 2. Total Internet Coffee and snacks Items No.of customers/year 35,000 25,000 Rates per unit (Rs) 40 40 Sales realization(Rs) 14,00,000 10,00,000 24,00,000

6.6 Raw Material (Monthly Requirement)

Sr. No. 1. 2. 3. Total Items Coffee cups Quantity(per month) and 4000 100 1500 Rate(Rs.) 0.50 15 10 Total Value(Rs.) 2,000 1,500 15,000 18,500

plastic plates. Decoratives Snacks

6.7 Utilities Annually

Sr. No. 1. 2. 3. 4. Total Particulars Power/Electricity Water Coffee blender machine Any other item Annual Expenditure(Rs) 1,5000 10,000 20,000 40,000 2,20,000 Remarks

6.8 Man Power (Salaries/Wages)- Monthly

Sr. No 1. 2. 3. Semi Skilled Accounts Unskilled Total 2 1 1 4 Particulars No. Wages/Salaries per Month per worker (Rs.) 3,000 NA 1,500 6,000 NA 1,500 7,500 Monthly Expenses (Rs.)

6.9 Repairs and Maintenance- Monthly

Sr. No. 1. 2. 3. Total Computer and Electronic goods Hardware Maintenance Office maintenances 5,000 8,000 1,000 14,000 Particulars Amount(Rs)

6.10 Selling and Distribution Expenses Monthly

Sr. No 1. 2. 3. Total Particulars Publicity Expenses Traveling Middle men Commission Amount(Rs) 8,000 7,000 5,000 20,000 Remarks

6.11 Administrative Expenses Monthly

Sr. No 1. 2. 3. Total Particulars Stationery & Printing Post/Telephone/Telegrams Advertising Expenses Amount(Rs) 1,000 6,000 5,000 12,000 Remarks

6.12 Depreciation
Sr. no.

Type of Asset Machinery Equipments Buildings Miscellaneous assets

Costof Asset 3,63,000 1,80,000 fixed 1,47,000

Depreciation(WDV) 10% 5% 20%

Amount 36,300 9,000 29,400 74,700

1. 2. 3. Total

7. WORKING CAPITAL
Working Capital (one month) / One Cycle Sr. No. 1. 2. 3. 4. 5. 6. Total ITEM Raw-Material Salary/Labor Administrative expenses Repairs and Maintenance exp Selling and distribution expenses Utilities Amount(Rs.) 18,500 7,500 12,000 14,000 20,000 18,333 90,333

8. TOTAL COST OF THE PROJECT

Sr. No. 1. Particulars Fixed Capital (Total of item No.6.1,6.2,6.3) 2. Working Capital margin pm x 3 (Total of item No. 7.1) 3. Preliminary & Pre-operative Expenses (Total of item No. 6.4) Total 13,00,999 1,60,000 2,70,999 Total Value(Rs.) 8,70,000

9. MEANS OF FINANCE
Sr. No. 1. 2. Particulars Own Investment Working Capital Loan Total Amount (Rs.) 5,40,015 7,60,984 13,00,999 Remarks

10. COST OF PRODUCTION

1. 2. 3.

Working capital (pm) x 12 Depreciation Interest per annum on total investment (15%) Total

10,83,996 74,700 1,95,150 13,53,846

11. PROFITABILITY PROJECTIONS Gross Profit = Turnover Cost of production

= Rs (24,00,000 13,53,846) = Rs 10,46,154

Income Tax = 30% of Gross Profit

= 0.30 x 10,46,154 = Rs 3,13,846

Net Profit = Gross Profit Income Tax

= Rs(10,46,154 3,13,846) = Rs 7,32,308 Total Fixed Cost = Total Depreciation +Total Interest+40% of salary and other contingent expenses and utilities. =74,700+1,95,150+0.40x(2,20,000+1,68,000+2,40, 000+1,44,000+90,000) =Rs 6,14,650

12. BREAK EVEN POINT

Break Even Point = Fixed Cost x 100

Fixed Cost + Net Profit = 614650 X 100 614650 + 732308 = 45.63

13. PROFITABILITY RATIO

Profitability = Net Profit x 100 Turnover
= 732308 x 100

2400000 = 30.5%

14. RATE OF RETURN ON INVESTMENT

R = Net Profit x 100 Total Investment = 732308 x 100 1300999 = 56.3%

15(A). LIST OF SUPPLIERS OF MACHINERIES

Sai infotech , Bhubaneswar. Nigam computers , cuttack.

BSNL Headoffice , Bhubaneswar.

15(B). LIST OF SUPPLIERS OF RAW MATERIALS

Capital grocery shop , Bhubaneswar. Big bazaar , Bhubaneswar. Reliance fresh , Bhubaneswar.

15(c). BANK AND BRANCHES HAVING FINANCIAL OPERATIONS

State Bank Of India , Patia Branch , Bhubaneswar. Union Bank Of India , Patia Branch,Bhubaneswar.

Date: entrepreneur 23/04/2012

Signature of the PRADEEP KUMAR

16. CONCLUSION
By using this universal charger we need not to wait at one place. More over one charger is sufficient for number of electronic gadgets. So the clumsy wire is not required. The charger will charge the device at range of 50 meters. It is a cost effective component and a user effective device. It has no negative effects on health and environment.