THE XYZ MULTIPLEX

Where the Excitement BEGINS!!!!!!!!!

 THE XYZ MULTIPLEX
Where the Excitement BEGINS!!!!!!!!!
1. EXECUTIVE SUMMARY

1.1) Prologue
The XYZ multiplex hopes to offer the people of Varanasi a unique blend of ultramodern
luxuries. Situated in the heart of the city, the Xyz shall cater to the popular demand of
Varanasis masses i.e. a place where one can have all the fun which they desire for. We
visualize this place as one where people can meet and hang out, shop for themselves with their
near & dear. They can do business, have a cup of coffee or take an aimless walk & relax. It is
the place where people can feel at home & yet can have international shopping experience,
perhaps a Life style destination for the people of Varanasi.

1.2) Concept & Opportunity

The people at Varanasi are primarily in their 20-40s. Their idea of
chilling out includes the entertainment joints on offer. The average
multiplex-goer belongs to a one-income household & has school going
children. A weekend outing, once or twice a month, means going to the
movies or a mall with the family.
Besides these, the large number of college students in Varanasi
will form a strong income source for the proposed multiplex.
In addition, Varanasi attracts many tourists, in particular foreign
tourists. Broadly, above people shall form the customer base of the
proposed multiplex.

1.3) Service Description

We plan to offer a wide variety of services at the XYZ. These will
include3 cinema halls, a number of branded showrooms like those of
Pantaloon, Titan, Raymonds, Archies , fast-food restaurants like Mc-Donald
& Pizza hut & also a tie up with Crossroads. We also plan to have an outlet
of a Restaurant & showrooms housing electrical and computer items.
A gaming arena covering 6600 sq. ft. area will also be housed in the
same building. For the facility of the customers there shall be 1 ATM, 4
escalators and 2 elevators. The building will be cooled by a central air
conditioning plant.
The total seating capacity of the 3 auditoriums shall be 690. To provide correct viewing
angles each auditorium will feature wall-to-wall stadium style seating & will be equipped with
reclinable seats & cup-holder armrests, plush leather seats in the Royale category will add a
new facet to comfort. Each auditorium will be equipped with Dolby digital/DTS sound
technology, Harkness screens & automated masking. To the consumer it signifies that the
movie is seen & heard at optimum performance levels, just as the filmmaker would have
intended.
The multiplex will also have a generator installed, ensuring customers of uninterrupted fun
even in case of a power failure. It shall be a one stop fun n shop place.

1.4) Market
Varanasi lacks good cinema halls. Since Xyz offers a wide
range of services, it is expected to attract a large number of people
including people from the average income group. The prospective
customers include movie watchers, college students, tourists & those
who want to do some shopping & eat outside. Hence, there exists a
strong customer base.

Young People

Middle class
people
Tourists

Others

LEGEND:

Young people60%

Middle class people25%

Tourists3%

Others12%

Theres a virtual explosion in the number of malls across India

Following figures are ADDITIONS in each year

2004 2005
CITY TOTAL AREA (Sq.
NUMBER OF
TOTAL AREA (Sq.
NUMBER OF
ft.) MALLS ft.) MALLS
Chennai 9,35,000 3 3,50,000 2
Delhi 8,68,000 3 42,70,000 13
Hyderabad 7,80,000 4 6,25,000 4
Kolkata 2,41,000 2 4,80,000 2
Mumbai 10,90,000 7 32,20,000 10
TOTAL 39,14,000 19 89,45,000 31
1.5) Location
The multiplex shall be located in Varanasi, shall be easily accessible & would take at
most 35 minutes to reach from any part of the city.

1.6) Competitive Landscape: Our strengths and weakness

No cinema hall in Varanasi parallels the facilities which shall be provided by Xyz.
Most of the cinema halls do not have comfortable seating arrangement and the
projectors being used are obsolete and provide an inferior quality view. The
only field in which they may compete with us is the price factor. Their ticket
charges are bit less than we shall be charging but comparing the services that
we will be providing, our charges are, perhaps, cheaper.
Varanasi has a few shopping malls to its credit, which offer good
services. However, people visiting these places find only shopping hubs.
The Xyz multiplex, on the other hand, shall have a unique mix of
various entertainment means, viz, gaming parlour, restaurant, etc. in addition
to showrooms of various brands.
Our services will be priced aggressively as well, in order to better compete in the
market.The location, size and appearance of the Xyz multiplex will attract many people into
the complex. What gives us a major edge over present establishments like cinema halls and
shopping malls is that we offer many facilities at the same venue.

1.7) Start-up summary

The start-up costs will primarily include cost of construction and fabrication, electrical
equipments, etc. Funds needed to accomplish goal referenced above will be Rs.11.725 crores.
The company expects to get most of this money through loans and deposits against
booking from prospective clients.
The details are shown in the table below:

Start-up Expenses Summary Table

START-UP REQUIREMENTS AMOUNT (Rs. In Lacs)

START-UP EXPENSES:
Plant and Machinery 239.12
Furniture and Fixture 36.90
Office Equipment 2.00
Pre-Operative Expenses. 22.61
Total Start-Up Expenses 300.63

CURRENT ASSESTS:
Cash balance on starting date 5.00
Other current assets 0.00
Total current assets 5.00
LONG TERM ASSETS
Land 40.00
Building 826.87
Total long term assets 866.87

TOTAL REQUIREMENTS 1172.50

1.8) Financial Projection:

PROJECTED BALANCE SHEET

(Rs. In Lacs)
Sr.No Pro Forma Balance Sheet 2009 2010 2011 2012
ASSETS
A Fixed Assets- Land 40.00 40.00 40.00 40.00
B Building 826.87 744.18 669.76 602.78
C Plant & Machinery 239.12 203.25 172.76 146.85
D Furniture & Fixure 36.90 33.21 29.89 26.90
E Office Equipment 2.00 1.70 1.44 1.22
F Total Fixed Assets(A+B+C+D+E) 1144.89 1022.34 913.85 817.75
G Current Assets: 5.00 291.86 349.76 393.05
Cash & Bank Balance
H Other 0.00 1.10 1.50 2.00
I Pre-Operative Expenses. 22.61 20.35 18.09 15.83
J TOTAL ASSETS(F+G+H) 1172.50 1335.65 1283.20 1228.63
LIABILITIES
K Share Capital 120.00 120.00 120.00 120.00
L Reserve & Surplus 0.00 233.06 400.88 566.51
M Unsecured Loan(Interest Free) 370.50 370.50 320.50 270.50
N Secured Loan 682.00 596.75 426.25 255.75
O Current Liabilities-Provision 0.00 15.34 15.57 15.87
P TOTAL LIABILITIES(I+J+K+L) 1172.50 1335.65 1283.20 1228.63
Q TOTAL LOAN( M+N) 1052.50 967.25 746.75 526.25
R CAPITAL(K+L) 120.00 353.06 520.88 686.51
S DEBT EQUITY RATIO(Q/R) 8.77 2.74 1.43 0.77
1.9) Milestones:

The following table lists important program milestones with estimated duration, start date
& ending date. The milestone schedule indicates our emphasis on pre-launch planning for
implementation.

TASK NAME DURATION START DATE END DATE

Business Plan 2 weeks 26/12/2007 09/01/2008
Plan Review 3 days 10/01/2009 12/01/2009
Presentations 2 to
weeks 17/01/2009 30/01/2009
prospective clients
Short listing clients 3 days 31/01/2009 02/02/2009
Review with clients 3 days 03/02/2009 05/02/2009
Public Input session 1 week 06/02/2009 12/02/2009
Plan Review 3 days 13/02/2009 15/02/2009
Financial 2 weeks
backing 16/02/2009 01/03/2009
presentations
Tender for construction 2 weeks 16/02/2009 01/03/2009
Construction 270 days 06/03/2009 30/11/2009
Tender for all remaining 2 weeks 10/09/2009 23/09/2009
work
Remaining work 3 months 26/09/2009 26/12/2009
Selection of staff members2 months 15/10/2009 15/12/2009
Construction - - 26/12/2009
fabrication ends on
Grand opening on 1 day 01/01/2010 01/01/2010

1.10) Management Team

Our secret of success is redefining success. The management team will have two
members, both MBA qualified, and having work experience of 4 years in industrial sector.
Both have an excellent academic background. They have excellent management skills and
therefore, one can rest assured that under their leadership, the firm will soon carve a niche for
itself in the business world.

1.11) Revenue Generation

Sales are based on the services and amenities provided by the facility. We shall be
giving away our showrooms on a rental basis and we will prepare a list of companies which,
according to us, may be interested in hiring shops at our multiplex. We will contact these
companies directly and brief them about the facilities available. The advantages of the
multiplex shall be explained in detail. Desirous companies will be asked to deposit an advance.
For the sales of cinema halls tickets we will be having three sales counters. The counters will
be computerized with latest facilities installed, so that transaction time per customer is
minimum and customers do not have to stand in long queues.
1.12) Public Input
The following people shall be contacted before designing the final draft:-

a) Potential Partners
The groups that may be involved in bidding for lease space in the facility will be
contacted to ensure that the designers are reasonably aware of their needs & can adjust
program spaces.

b) Prospective customers
We shall contact groups of representatives of elite citizens, students, etc. so that
we have knowledge of their desires and expectations.

1.13) Business loans sought/finance requirement

Pick up any research report and it will tell you that malls-physical
expression of a societys retail desire-are booming. Why the mall rush?
Malls offer 17% return on investment, compared to 11% on office
space and 6% on residential property. The XYZ multiplex shall require
an initial investment of Rs.11.725 crores.
The financing is proposed to be obtained as->

S.no.Investing Agency Money Invested ( in crores)

1 Deposits against booking from prospective clients Rs.3.705
2 Loan from bank Rs.6.82
3 Self Rs.1.2
TOTAL Rs.11.725 crores

The large initial capital investment will facilitate the running of multiplex for year one & will
also allow us to provide the customers with most of the facilities right from the beginning. The
customer base developed, herewith, will allow XYZ multiplex to be self-sufficient in one and
half years, whence we propose to provide more facilities including two restaurants- Trends &
Banjara.
The monthly gross income is expected to cross Rs.70 lakhs by the end of third month of
operation. We expect the break-even to occur one and half years after the multiplex starts
functioning. Hence the investors can expect to get back their money within a period of three
years.
1.14) Highlights
a) Objective
Creation of a unique, upscale, innovative place where
people can have entertainment, do shopping and which acts
as a meeting platform for people.

b) Principles
Provide exceptional service that leaves an
impression.
Consistent entertaining atmosphere & product quality.
Managing internal finances & cash flow to enable upward capital growth

c) Keys to success
There is no multiplex yet in the city, XYZ shall be the first.
One can have fun & can shop at the same place.
Offer services at a competitive price.
Many of the older theaters are badly maintained and lack of
better options has brought a slowdown in people visiting
theaters. Clients are demanding new comfort and style in
entertainment. The XYZ shall work to plug this gap.

Location, accessibility, retail and tenant mix, infrastructure, shopping environment,

entertainment, services, marketing, promotion, and communications.. Perhaps XYZ
has everything to offer.