Business Development Plan

NASHA DHUKE RETAIL

STORE
Khudra Saman Aba Wholesale Mulya Ma

Sagun Shrestha Karma E xa m N o . : 1 1 2 2 0 4 5 4

Company Profile
Operation history of 30 years+ Departmental Store Sole Proprietorship based business Location: Kopundol-01, Lalitpur Total Investment : NRS. 41,44,000.00

Vision: Make Shopping Cheaper and Easier

SWOT Analysis
Strength
A well established retail outlet large number of loyal customers Good relationship with the suppliers

Weakness
Is limited to only one locality Difficult to rebrand More loan than equity

Good location
Good understanding of the retail industry

Opportunities
Shift in consumer purchasing trend Growing market demand No such retail outlet nearby Less chance of failure Huge potentiality for the expansion

Threats
Threat of new entry The big retail houses in nearby location High competition from small local stores

Marketing Strategy

Products
Current Offerings
Groceries Religious Items(Pooja ko saaman) Beauty and Health Care Baby Care Kitchen stuffs Soft and Hard Drinks

Future Offerings
Vegetable and fruits Toys Stationary items Gas Cylinder of multiple companies Gifts and Celebration Items Ice Cream

Place
Location: Kopundol, Lalitpur

Price
Cost plus Pricing
Competitive Pricing Psychological Pricing

Promotion
Khudra Saman Aba Wholesale Mulya Ma Na Dashain na Tihar Choot aba Sadha Bahar Pamphlets and Banners Printed Bags Arrow Signs in different corners of the locality CSR Programs

Financial Analysis
Capital Structure Equity Long Term Loan Total Capital Ratio 50% 50% NRS. Amount 2,072,000.00 2,072,000.00 4,144,000.00

Capital Structure

50%

50% Equity Loan

Assumptions
Annual Growth Rate:
20% in 1st year 25% then after (including 10% inflation rate)

Though we have calculated the financial year of only 5 year but we aim to recover our NCO in between 5 to 10 years. No any old fixed assets shall be included in the new project of Nasha Dhuku. Working Day: 340 Days. Tax rate is 25%

Contd
40000000 35000000 30000000 25000000 20000000

Sales Forecast

15000000
10000000 5000000 0 Year 1 Year 2 Year 3 Year 4 Year 5

Sales Revenue

COGS

Contd
Net Income
1,800,000.00 1,600,000.00 1,400,000.00 1,200,000.00 1,000,000.00 800,000.00 600,000.00

Year 0
Year 1 Year 2 Year 3 Year 4 Year 5

400,000.00
200,000.00 Year 0 Year 1 Year 2 Year 3 Year 4 Year 5

Contd
Investment Decision :
Pay Back Period (PBP) Net Present Value (NPV) Internal Rate of Return (IRR)

4.33 Years NRs. 2475686 (Positive)

30%

Key Financial Indicators :

Financial Ratios Current Ratio Debt to Equity Ratio Inventory Turnover Ratio Fixed Assets Turnover Net Profit Margin Return On Assets (ROA) Return On Equity (ROE) Year 1 1.21 1.13 9.06 2.65 1% 8% 5% Year 2 1.16 0.99 9.06 3.35 2% 12% 15% Year 3 1.40 0.64 9.06 4.09 3% 17% 26% Year 4 1.53 0.50 9.06 4.52 4% 20% 36% Year 5 1.61 0.38 9.06 4.92 4% 23% 43%

Thank You!