2. Introduction
The proposed business plan is that of an education and research institute to be named The
Learning Tree education and research institute. It is a private company ownership by Excel
International with principal shareholders mentioned. The capital requirement will be roughly INR
100 crores. It is very much evident that in India there is no primary academic institution and no
research institutes at the level of schooling itself. There are various impediments of Indian
education systemthat are talked about but never acted upon. This business plan seeks to be a
revolution in the field of education as its purpose is not to impart just a theoretical knowledge but
a practical one. This school is affiliated and adopted by Harvard University and aims at education
that recognizes individual’s talents and promotes children in the field of interest.
This is highlighted in the motto of school “Be the best, strive to learn and make your field an art. ”
Name of the Business: Excel International
Address: Near Rajhans Circle
Airport Road
Pune-422002
Nature of Business: Education and Research Institute
Statement of Confidentiality:
The contents of this business plan and any attachments are confidential and are intended solely for
addressee. The information may also be legally privileged. This transmission is sent in trust, for the
sole purpose of delivery to the intended recipient. If you have received this transmission in error,
any use, reproduction or dissemination of this transmission is strictly prohibited. If you are not the
intended recipient, please immediately notify the sender by reply e-mail or phone and delete this
message and its attachments, if any.
3. EExxeeccuuttiivvee SSuummmmaarryy
OrganizationalPlan: The following organizational plan has been proposed
Form of ownership: A Private Limited Company
Authority of principal owners: The principal owners will have the absolute ownership and decision
right when it comes to election of any sub body to be incorporated. The owners reserve the right
to expand or shrink the existing board with a consensus of 2/3 majority. However the founder
directors are not covered under this criterion. The founder directors are also given veto powers for
decisions they deem unfit on reasonable basis. However in case of a veto power conflict the
decision rights will be reserved by the first signatory being the primary Founder.
4. Roles and Responsibilities of members of organization:-
Responsibility of board:
It will be one of the primary responsibilities of the board to provide the organization with the
required infrastructure and competent staff. Besides this the board is required to meet once each
month to review the progress of the institution. Furthermore it is hereby mandatory for every
board member to devote the time as may be required for the betterment of the institute. The
board shall appoint the director, principal and the various department heads with the consult of
whom further members of the institute shall be appointed.
Responsibility of the Director and faculties:
Director and the faculties will have the primary role in running of the enterprise. They are hereby
brought to a notice that children of the institute shall be given the utmost priority and the
grievances of every child should be catered to. For the purpose of both psychological and mental
development each department head will be provided with an assistant and a counselor who shall
act as a single window mentor for every child in the institute.
Responsibility of children:
Children in this institute are given primary importance. They however must obey the rules of
discipline. They will respect and obey the code of conduct that will be given to them on admission.
All children are notified that any attempt of bullying or any other misconduct with respect to ethics
of this institute will be dealt strictly. Any child proved violating the standards of this institute will
be liable to get expelled immediately.
Responsibility of parents/Guardians:
We at this institute try to imbibe in children various aspects of life. We believe that our children
will be the pioneers in their respective field and will hold the standards for others to follow. This
begins however with their learning at home. We aim to teach children to be empathetic and
sensitive to the needs of not only their immediate family but the entire world. Parents are
therefore requested to cooperate in their development. It will be the responsibility and right of
every parent to review the performance of their ward and consult the respective faculty for there
development. Parents are however advised and requested to not force any field on their children.
This is tailor made institute for every child on their interests and aptitude.
7. IInndduussttrryy AAnnaallyyssiiss
The Indian education industry is poised for growth. This sector is changing rapidly with more
private players entering the field. The government is also taking many measures to improve the
quality of education in India.
Fifty percent of India's population is the youth. This means that the Indian education sector is huge
with a population of 1.13 billion. India has around 367 universities, 18,000 colleges, about half a
million teachers, and 11 million pupils. The private education industry is estimated to be between
20,000–25,000 crores. There are about 1,500 management institutes, 3,500 engineering institutes,
and 1,200 medical colleges in the country.
The Indian education sector can broadly be classified as such:
1. K-12 and HEI: The term K-12 stands for kindergarten plus 12 years of schooling. Children
enter kindergarten at age 3 and after spending two years in kindergarten, continue on to 12
years of schooling before he/she is ready for higher education. The higher education
institutes (HEIs) then take over providing undergraduate, graduate and vocational level
university education.
2. Public education and private education: The Government of India allocates a percentage of
its annual budget to the education sector and operates educational institutes. More than
90% of the government’s spend on public education flows into K-12 level education. In
addition to government-run public schools, private investment in the education sector is
seen traditionally in the form of not-for-profit trusts that operate private educational
institutes.
3. Formal and non-formal education: The formal education system in India broadly comprises
the K-12 and HEI level education, which falls under the purview of the Ministry of Human
Resource Development (HRD). The non-formal education segment includes pre-schools
(1.5-3 years), coaching classes, multimedia/IT to schools and colleges, vocational training
and the books market.
Status of education in India
The typical Indian classroom was once characterized by students sitting through hour-long
teacher monologues. Now, technology is making life easier for both students and
educators. Schools are increasingly adopting digital teaching solutions to engage with a
generation of pupils well-versed with the likes of PlayStations and iPads, and trying to make
the classroom environment more inclusive and participatory
Smartclass from Educomp Solutions, one of the first Indian companies in this space.
Smartclass is essentially a digital content library of curriculum-mapped, multimedia-rich, 3D
content. It also enables teachers to quickly assess how much of a particular lesson students
have been able to assimilate during the class. Once a topic is covered, the teacher gives the
class a set of questions on a large screen. Each student then answers via a personal
answering device or the smart assessment system. The teacher gets the scores right away
8. and based on that, she repeats parts of the lesson that the students don’t appear to have
grasped.
Last week, the Annual Status of Education Report (ASER) published by the non-profit
Pratham Education Foundation reported some disturbing findings about the state of
education in rural India, which still accounts for a little under 70% of India’s population of
1.2 billion. The findings essentially told us two things. The good news is that enrolment in
elementary education is almost 100%. The bad news is that the education outcomes, as
measured by abilities in reading, writing and doing maths, have deteriorated among
children between the ages of six and 14. The bottom line is that India has a crisis of
learning. This obviously has grave implications for the future of an economy that was
looking to harvest its demographic dividend, leave alone the circumstances of a social crisis
being created by generating an army of semi-literate people unable to take advantage of
the new economy.
Year-wise growth of students enrolment in India
20.3 million students were enrolled in India during FY12.
University mix in India
There has been a significant increase in the share of the private universities as part of total
universities from 5 per cent in 2008-09 to 19 per cent in 2011-12.
9.
10. MMaarrkkeettiinngg PPllaann::
Marketing Newspaper cm page rate/sq cm Circulation cost
Education Times 20x20 any page 1850 740000
(Mumbai + Pune + Nagpur + Ahmedabad +
Baroda)
Hindu 20x20 front page 805 315350 322000
(Andhra Pradesh)
The Indian Express 20x20 back page 909252 506000
(Delhi & Kolkata) 1568000
Marketing Radio Pune per 10 sec reach frequency no. of hrs days length cost
My FM 500 420000 4/hr 6/day 5/week 30sec 90000
Radio City 400 434000 4/hr 6/day 5/week 30sec 72000
Radio Mirchi 700 719000 4/hr 6/day 5/week 30sec 126000
Radio One 350 396000 4/hr 6/day 5/week 30sec 63000
Red FM 350 395000 4/hr 6/day 5/week 30sec 63000
Total 414000
11. AAsssseessssmmeenntt ooff rriisskk
In the process of identifying the major roadblock the foremost is that of capital. Ours being an
entirely new enterprise, chances of getting capital is not that bright at face. Therefore in a scenario
where we are unable to get the required capital we have a contingency plan where we will be
shifting the construction and reducing the amenities to be given. We however plan to retain our
concept and faculties which is the unique selling point. The detail contingency plan has also been
hereafter given in financials. SWOT analysis for further details has been provided on the next page.
One of a kind
Foreign affiliations
Offers research
Opportunities
No international
Requirements
Training and internship
Teaching and brainstorming
By bests in respective fields
Huge capital
requirement
Heavy working capital
Managing faculties
Cross cultural challenges
Increasing demand
More practical approach
Mirror behavior
Parents want bestfor their
Children
Fascination with foreign
Universities
Concept does not
click
Takeover by a
established Institution
Children not ready to
adopt
12. FFiinnaanncciiaall PPllaann
Excel International
FINANCIAL STATEMENT
1 COST OF PROJECT
2 PROJECTED PROFIT AND LOSS ACCOUNTS
3 PROJECTED BALANCE SHEETS
4 PROJECTED CASH FLOW STATEMENT
5 PROJECTED D.S.C.R AND PROFITABILITY STATEMENT
6 SCHEDULES TO P & L & BALANCE SHEETS
7 BREAK EVEN ANALYSIS
8 CMA DATA
9 ANNEXURE
10 DETAILED COST RELATED TO PROJECT
11 MARKETING COSTS
12 CONTINGENCY PLAN
13. Excel International
Cost of the Project:
(Rs. in Crores)
Proposed
Description
Capital
Expenditure
1 Land & site development 16.96
Total (A) 16.96
2 Buildings & Site Development :
3 School Buildings 44.15
Common Hall 1.29
Canteen 1.30
Parking Lot 0.64
Electrification 1.50
Water System 1.20
Basket ball Court 0.18
Athletics track 3.50
Football Field 1.80
Cricket Ground 2.00
Computer Lab 0.19
Doors Windows and Painting 0.48
Equipments 0.50
Labour 11.24
Total (B) 69.97
3 Furnitures 5.00
4 Working capital 3.07
Total C) 8.07
Total Capital Expenditure (A+B+C) 95.00
Prel. & Pre-op. Exps. 5.00
Grand Total 100.00
Means of Finance: Rs.
Equity Share Capital 60.00
Prefrence Share Capital 0.00
Term Loan 40.00
Deposit from Directors / Shareholders 0.00
Total 100.00
14. Excel International
PROJECTED PROFIT AND LOSS ACCOUNT FOR THE YEARS…
(Rs. in Crores)
Years 2016-17 2017-18 2018-19
A INCOME (Refer Page 14)
I School Fees 23.59 29.52 34.13
II Other Income 0.50 0.70 1.00
Total Income 24.09 30.22 35.13
B OPERATIVE EXPENSES
I Salaries (Refer Page 14) 0.96 1.05 1.16
II Administrative Expenses (Refer Page 15) 2.31 2.42 2.54
III Depreciation (Refer Page 16) 6.67 5.97 5.32
TOTAL 9.93 9.44 9.02
C Operating Profit Before Int (A-C) 14.15 20.78 26.11
D Interest on Term Loan 0.74 0.44 0.36
E Operating Profit Before Tax 13.41 20.34 25.75
F Provision for Tax 4.14 6.29 7.96
G Profit After Tax 9.27 14.06 17.79
H Retained Profit 9.27 14.06 17.79
I Balance Transferred From P & L A/C 0.00 9.27 23.32
J Profit Carried to Balance-Sheet 9.27 23.32 41.11
K Depreciation added back 6.67 5.97 5.32
L Net Cash Accruals 15.94 20.02 23.11
15. Excel International
PROJECTED BALANCE SHEET AS ON 31st
March....
Years 2014-15 2016-17 2017-18 2018-19
LIABILITIES :
Equity Share Capital 60.00 60.00 60.00 60.00
Profit & Loss A/c 0.00 9.27 23.32 41.11
Shareholders' Fund 60.00 69.27 83.32 101.11
Secured Loans
Term Loan 40.00 39.65 39.05 38.45
Unsecured Loans
Deposits from Directors/Shareholders 0.00 0.00 0.00 0.00
Other Non Current Liabilities(Student
Deposit) 0.00 8.67 11.11 12.70
Current Liabilities
Deposit from Students Refundable 0.00 0.17 0.17 0.17
Other current Liabilities 0.00 0.00 0.01 0.01
Provision for Taxation 0.00 4.14 6.29 7.96
TOTAL LIABILITIES 100.00 121.90 139.94 160.40
A S S E T S
Gross Fixed Assets 40.15 80.69 80.69 80.69
Less : Depreciation 0.00 6.67 12.64 17.96
Net Fixed Assets 40.15 74.02 68.05 62.73
Capital Work in Progress 40.81 0.00 0.00 0.00
Non Current Investments 0.00 43.00 64.50 88.50
Current Assets
Cash & Bank Balance 18.54 0.24 0.60 0.72
Electricity Deposit 0.50 0.50 0.50 0.50
Advance Tax 0.00 4.14 6.29 7.96
Other Current Assets 0.00 0.00 0.00 0.00
Total Current Assets 19.04 4.89 7.39 9.17
TOTAL ASSETS 100.00 121.90 139.94 160.40
Diff. 0.00 0.00 0.00 0.00
C.R. N.A. N.A. N.A. N.A.
TOL / TNW 0.67 0.76 0.68 0.59
D:E 0.67 0.57 0.47 0.38
16. Excel International
A. PROJECTED REVENUE :
PARTICULARS
2016-
17
2017-
18 2017-18
No. Of Students per Year 1,638 2,050 2,370
School Fees Per Month per Student 12,000 12,000 12,000
Months 12 12 12
I
Total Receipts from School
Fees 23.59 29.52 34.13
II Interest from Investments 0.50 0.70 1.00
TOTAL ANNUAL RECEIPTS
(A) 24.09 30.22 35.13
B. OPERATING EXPENSES
I SALARIES AND PAYMENTS TO STAFF
Designation Nos.
Salary
p.m
Total /
Month
Rs. (In Crores)
Teaching Staff (Annexure 1) 63 0.2844000
Caretaker 15 20,000 0.0300000
Acccountant 3 40,000 0.0120000
Peon 24 7,000 0.0168000
Security Guards 10 6,000 0.0060000
Sweepers 12 3,000 0.0036000
Kitchen Staff 15 7,500 0.0112500
Total Monthly Salary 0.0796500
Total Salary for the 1st year 0.9558000
Rise in Salaries in next years 0.1000000
17. II ADMINISTRATIVE EXPENSES
Per Annum
Basis (Amount in Rs.)
Annual (In Crores)
Electricity Power Cost for
Rooms (Bimonthly) 0.5000
(Total rooms-102)
Other Electricity Power Cost (Lumpsum) 0.0072
(Lift, Tubewell & Common Lights etc.)
Bus Service Outsourced
Contract Cost 1.1500
Stationary & Ptg. Expenses 0.0500
Telephone & Postage
Expenses 0.0500
Misc. Office & Administrative
Exps. 0.1500
Advertisement Expenses 0.1982
Repairs & Maintanance 0.0500
(Buildings,Garden,Lift Sports complexs)
Muncipality Tax 0.1500
TOTAL ADMINISTRAIVE EXPENSES 2.3054
Rise in Admin. expenses in next years 0.0500
III Particulars Amount
% rise in
exps.
Total Salary for the 1st year 0.9558 0.1000
Total Administraive Expenses 2.3054 0.0500
CCoonnttiinnggeennccyy PPllaann
Excel International
Cost of the Project:
(Rs. in Crores)
Proposed
18. Description Capital Expenditure
1 Land & site development 16.96
Total (A) 16.96
2 Buildings & Site Development :
3 School Buildings 30.15
Common Hall 1.29
Canteen 1.30
ParkingLot 0.64
Electrification 1.50
Water System 1.20
Basket ball Court 0.18
Athletics track -
Football Feild 1.00
Cricket Ground 1.00
Computer Lab 0.19
Doors Windows and Painting 0.48
Equipments 0.50
Labour 9.36
Total (B) 48.79
3 Furnitures 3.00
4 Working capital -
Total C) 3.00
Total Capital Expenditure (A+B+C) 68.75
5 Prel. & Pre-op. Exps. 1.25
Grand Total 70.00
Means of Finance: Rs.
Equity Share Capital 60.00
Term Loan 10.00
Deposit from Directors / Shareholders 0.00
Total 70.00
19. Excel International
PROJECTED PROFIT AND LOSS ACCOUNT FOR THE YEARS…
(Rs. in Crores)
Years 2015-16 2016-17 2017-18
A INCOME (Refer Page 14)
I School Fees 11.79 14.76 17.06
II Other Income 0.25 0.35 0.50
Total Income 12.04 15.11 17.56
B OPERATIVE EXPENSES
I Salaries (Refer Page 14) 0.48 0.53 0.58
II Administrative Expenses (Refer Page 15) 0.58 0.61 0.64
III Depreciation (Refer Page 16) 3.34 2.98 2.66
TOTAL 4.39 4.12 3.88
C Operating Profit Before Int (A-C) 7.65 10.99 13.69
D Interest on Term Loan 0.12 0.11 0.09
E Operating Profit Before Tax 7.53 10.88 13.60
F Provision for Tax 2.33 3.36 4.20
G Profit After Tax 5.21 7.52 9.40
H Retained Profit 5.12 7.45 9.33
I Balance Transferred From P & L A/C 0.00 5.12 12.57
J Profit Carried to Balance-Sheet 5.12 12.57 21.90
K Depreciation added back 3.34 2.98 2.66
L Net Cash Accruals 8.46 10.43 11.99
20. Excel International
PROJECTED BALANCE SHEET AS ON 31st March....
Years 2013-14 2015-16 2016-17 2017-18
LIABILITIES :
Equity Share Capital 60.00 60.00 60.00 60.00
Profit & Loss A/c 0.00 5.12 12.57 21.90
Shareholders' Fund 60.00 65.12 72.57 81.90
Secured Loans
Term Loan 10.00 9.83 9.65 9.48
Unsecured Loans
Deposits from Directors/Shareholders 0.00 0.00 0.00 0.00
Current Liabilities
Deposit from Students 0.00 4.51 5.64 6.52
Other current Liabilities
Provision for Taxation 0.00 2.33 3.36 4.20
TOTAL LIABILITIES 70.00 81.78 91.22 102.10
A S S E T S
Gross Fixed Assets 38.75 68.75 68.75 68.75
Less : Depreciation 0.00 3.34 2.98 2.66
Net Fixed Assets 38.75 65.41 65.77 66.09
Capital Work in Progress 30.00 0.00 0.00 0.00
Non Current Investments 0.00 10.37 19.59 29.28
Current Assets
Cash & Bank Balance 0.75 3.17 2.00 2.02
Electricity Deposit 0.50 0.50 0.50 0.50
Advance Tax 0.00 2.33 3.36 4.20
Other Current Assets 0.00 0.00 0.00 0.00
Total Current Assets 1.25 5.99 5.86 6.73
TOTAL ASSETS 70.00 81.78 91.22 102.09
Diff. 0.00 0.00 0.00 0.00
C.R. N.A. N.A. N.A. N.A.
TOL / TNW 0.17 0.26 0.26 0.25
D:E 0.17 0.15 0.13 0.12
