Coffee! Kaapi!

Kaapi! Kaapi! Kappi…! Kaapi…! chai!

Chai…
Chai…
Kaapi! Ciggy…! Ciggy…! Kaapi!
Chai…
Kaapi…! Kaapi! Coffee!
Kappi…! Chai… Kaapi! Kaapi…!
chai! chai! Kaapi!
Chai Chai…!!!
Ciggy…! Coffee!
Kappi! Chai… chai!
Kaapi…!
Chai… Ciggy…!
Ciggy…! Chai…!!! chai! Ciggy…! Chai…
Kaapi…! chai!
Chai…!!!
Chai… Kaapi…! Ciggy…! Coffee!
Kappi…! Ciggy…!
Chai… Kaapi! Chai…
Chai… Kaapi…! Kaapi!
Ciggy…! chai!
Chai…!!!
Chai…!!! Kappi…!
Kaapi!
Kaapi…! Ciggy…! Kaapi!
Ciggy…! Chai…!!! chai!
Chai…
Chai…!!! chai! chai!
chai!
chai! Chai…
Kaapi!
Chai… Chai… Coffee! Kaapi!
 INDEX

Objective of the study.

History of ‘Taj’ Velachery.

The business.

Strategies.

Cash Flow.

Future Plans.

Observations.

Suggestions.

Exhibits.
 Study Objective

To understand the business model and the
cash flow a tea stall generates.

To appreciate the difficulties a stall owner
goes through in generating revenue and to
maintain cash flow.

To venture into the possibilities of micro
financing the stall.

To suggest ways to enhance his cash flows.
 ‘Taj’
Taj’ Velachery

Christened by CBS-ites 2009-10.

Established in 2006.

Had another shop near Velachery railway
station.

Main proprietor – Mr. Unnikrishnan.

Number of employees – 7.

The only tea stall which operates 24x7 in
Velachery area.

A local goon’s shop, rented on a daily basis.
Mr. Unnikrishnan. – Proprietor.

Mr.Shaji – Second in charge.

 The Business
Products offered:

Beverages –
Item Rate/Serving (Rs.)

Tea 5

Coffee 6

Milk 5

Horlicks/Boost 10

Packaged water 1.50

Butter Milk 3
 The Business contd…
contd…

Eatables –
Item Rate/Piece (Rs.)
Biscuits (3 Varieties) 2 to 5
Piece Cake 5
‘Murukku’ 1
Peanut Sweets 1
Banana 2
Samosa 5
Bajji’s 5
Bun 2.50
 The Business contd…
contd…

Intoxicant’s –
Item Rate/Packet (Rs.)
Cigarette’s 20 to 25
Beedi 4 to 8
Paan Masala’s 1 to 8

Other Items –
Item Rate/Piece(Rs.)
Candies (4 verities) 0.50
Mouth Freshener’s 1 to 3
 Strategies

No excess stock.
o Anticipates stock movement.
o Goods delivered on order.

Customer is God.
o Hearty smile.
o Small talks.
o Inquiry on preferred food items.

High Dependency on TCS and CBS.
o Track the holiday’s.
o Track the shift timings.

New good introduction.
o Samples for a week.
 KSF’s

Service.

Friendly personality.

Awareness of the environment.
External factors

The road
widening has hit
the business badly.

The machine is
parked where his
stall was before.

Uncertainty
over re-location.
 Cash Flow

Expenses – Goods.
o Daily buying.
o Stocks re-filled everyday at 9 AM.
o On the spot payment.
o No credits.
o No default payments.
 Cash Flow contd…
contd…

Other Expenses –
Item Expense (Rs.)
Rent (Daily) 500.
Gas cylinder (2 nos.) – 3 days. 1400.
Wages etc. (daily for 7 people) 1500.
Police (min. Monthly) – 10,000.
Bribe*.
Chennai Corporation 100.
(cleanliness) – Bribe*.
Political party goon’s 500 – 1000.
(monthly)*
*Tea/Coffee, Cigarettes, Paan Masala… extra.
 Cash Flow contd…
contd…

Earnings –

Turnover – approx Rs.18,000/day.*

Rs.3000/- profits, after all expenses.

Excel Sheet

*Highly depended on the daily customer turnover.

 Accounts

All entries made here
 Future Plans

No plans of expansion. Too much to handle
already.

Relocation depends on TCS and their plans.

If TCS relocates, then plans to move to
Velachery railway station area.
 Observations

The business model –
o Debt / Credit free.
o Less goods stocked.

Loans –
o Local money lender.
o Lending rate – Rs.100/- on Rs.1000/-
for 100 days.
 Works out to be – approx 36% per
annum.
o Credit period flexible. Thanks to his
good relationship.
 Observations contd…
contd…

Wages –
o Wages form a major portion of his expenses,
invariably affecting the profits.
o Generous person, gives work to the needy.
o Eg: A destitute person comes everyday
morning and evening to clean the premises.
He gets a tea/snack or cash for lunch!
o I too got an offer - the post of accounts
manager! ☺
o From a socialistic angle – “What a Man!!!”
 Suggestions

Replicable business model.

Stop making Samosa, Bajji etc…
o Cost too high.
o High wastage.
o Outsourcing suggested.
• Items made by self help
groups etc…

Expenses for gas cylinder humongous.

Replace gas cylinder.

Refer Excel sheet
 Some interesting facts

Milk used for 24 hours – 30 to 35 liters.

Milk water ratio (Tea) – 1litre : 1.5 liters.
(Other stores – 1 : 2.5 – 3)

Cigarette sales for 24 hours – (Gold Flakes
Kings)
• Minimum 140 to 150 packets.
(Rs.45 per pack)
Exhibits
 It’s tea time….!
THANK YOU. Benoy Paul Jose.
Chennai Business School.
BFS.033.