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8/7/2019 A BUSINESS PLAN (1)
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A BUSINESS PLAN
Of
SUPER SPORTS..
make winning a habit
SUBMITTED TO:
Mr.Sonu Dua
Lect. LSM
SUBMITTED BY:
OUR TEAM
Name Roll No.
1.Vivek 51
2.Nisha Garg 523.Aashiq Aziz 53
4.Isha Sikand 54
5.Mohd.Sajad 55
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PREFACE
Every study needs an application to analyze the problem , and thus working on its improvement
is needed.The application of ideas and concepts provides an opportunity to a student to
demonstrate skills and competence required.
Our Business Plan is SUPER SPORTS
Industry : Sports
The business plan helps us to devote our skills to set up the business and to work upon it and
look to suggest the alternative solutions. Further on evaluating it using theoretical and analytical
approach , it helps us to see into ourselves for our strenghts and weaknesses.
We tried our level best to prepare this business plan without any contamination. Every effort
has been made to offer the accuracy .
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TABLE OF CONTENTS
S.NO. TITLE PAGE NO
1. INTRODUCTION 52. EXECUTIVE SUMMARY 63. VARIOUS PLANS FOR OUR BUSINESS 74. FINANCIAL PLAN 85.
OPERATIONS PLAN 1
3
6. HUMAN RESOURCE PLAN 157. MARKETING PLAN 198. CONCLUSION 26
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EXECUTIVE SUMMARY
Super Sports is a new venture that is related with the sports industry. As we already know that
Sports like Cricket , Hockey and others are very popular in India , particularly in Punjab . Punjab
is the main hub for sports . Cities like Jalandhar are very popular in sports industry.
We , therefore , after analyzing whole market of Jalandhar, with some research there as well,
came to know that still there is lot of market in jalandhar that needs to be explored.
We started with the analysis like situation analysis.
In situation analysis we have taken three Cs:
1. Company2. Customers3. Competitors
Business concept
Our business works on the concept of uniqueness in sports .Our quality of wood and finishing
touch are our advantages.
Goals
y Short term To have a sustainable market share and to capture the untapped market. Thisis our first goal that we are working upon, because in Punjab there are already many local
and national players in the market. And to attain the same the first strategy is to launch
our SS-Passion product in the market in bulk than the other one and the ratio could be
4:1. This is due to the reason the professional players will not easily accept the brands
until it has a good image. That is why we are launching bats for the habitual at the initial
stage.
y Long term - build an image of a strong player in the market. This is our long term goaland can be achieved if we got a good image of our brands in the market. This could only
be done after our first gone is achieved. We have designed lot strategies to achieve that
level and would be discussed in promotions part.
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yCapacity
Our capacity is 30000 units. It includes both finished and semi finished goods. We are
producing 22000 units. Out of these units 6000 units are finished and 16000 units are
semi finished goods.
Sales
Our sales will depend upon the performance of Indian team the best they play best would
will be sales. It is always expected that whenever Indian team goes through a series all the sports
business persons are very concerned with the game. So the main reason behind our expectations
is that the coming world cup is going to held in our subcontinent. It will impact a lot of our
business and I hope it would be positive.
Political & regulatory environment
y We are using willow for our products, so there would be great danger for our business ifgovernment frames trees protection policies.
y Other environmental protection organizations like WWF is also working onenvironmental protection and could prove as a threat to our business.
After all this , we will start our business with our financing plan , how we have managed this
capital and then the discussion various phenomena.
VARIOUS PLANS OF THE START UP
There are actually various plans through which we can start our business and managed it nicely.
These plans are:
1.Financial Plan
2.Marketing plan
3.Human resourse Plan
4.Operations plan
Let them discuss one by one
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Financial Plan
Project Income Statement by MonthSUPER SPORTS
NOV DEC JAN FEB MAR APR MAY JUN JULY AUG SEPT OCT
SALES 282000 309200 332000 363800 392000 397400 412300 482000 559000 579300 584700 590000
COST OFGOODS
115500 128100 136500 150150 161700 164850 172725 199500 236250 247275 250425 262500
9$5,$%/(
(;319500 20800 22750 24700 26650 26650 26975 32500 35750 36075 36075 32500
.P14
7000 160300 17
2750 188950
203
6502
059002
12
6002
500002
870002
959502
98200
295000
SALARIES& WAGES
84500 84400 85000 84700 84000 84650 85150 84300 84700 84000 84400 76000
RENT 22000 22000 22000 22000 22000 22000 22000 22000 22000 22000 22000 22000
INSURNCE 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000
INTEREST 18750 18750 18750 18750 18750 18750 18750 18750 18750 18750 18750 18750
DEP. 4400 4400 4400 4400 4400 4400 4400 4400 4400 4400 4400 4400
MISC.EXP 8000 8500 7800 10500 8300 9000 9600 10700 10500 9300 11000 11300
NETPROFIT
7350 20250 32800 46600 64200 65100 70700 107850 144650 155500 155650 160550
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Projected Cash Flow Statement First Year by MonthSuper sports
Nov Dec Jan Feb Mar Apr May Jun July Aug Sept Oct
TotalItem
ESTCASH
RECEIPTS
Cash Sales1500
016700
18000 19000
18500
19200
20000
20500
21300
21800
22000
212000
Collectionsfrom CR
accounts2820
00294200
315300
3458
003730
003789
003931
004620
00
5385
00
5580
00
5629
0045037
00
TOTALCASHRECEIPTS 0
297000
310900
333300
364800
391500
398100
413100
482500
559800
579800
584900
4715700
CASH PAID
OUT
Purchases(merchandise)
250000
285000
280000
310000
310000
314500
324000
332000
380000
422550
2983050
Gross wages(exactwithdrawal) 84500 84400 85000 84700 84000
84650
85150
84300
84700
84000
84400
76000
945360
Rent 22000 22000 22000 22000 220002200
02200
02200
02200
02200
02200
02200
026400
0
Misc exp 8000 8500 7800 10500 8300 9000 960010700
10500 9300
11000
11300
114500
Insurance 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000 24000
TOTALCASH PAIDOUT(Disburseme
nts
11650
0
11690
0
36680
0
40420
0
39695
0
4276
50
4287
50
4335
00
4432
00
44930
0
4994
00
5338
50
43309
10CashPosition(end ofmonth)=cash flow
-116500
180100
-55900 -70900
-32150
-36150
-30650
-20400
39300
110500
80400
51050
384790
12-month Projected Income Statement Explanation
SalesOur sales will depend upon the performance of Indian team the best they play best would will be
sales. It is always expected that whenever Indian team goes through a series all the sportsbusiness persons are very concerned with the game. So the main reason behind our expectations
is that the coming world cup is going to held in our subcontinent. It will impact a lot of ourbusiness and I hope it would be positive.
.
Capacity
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Our capacity is 30000 units. It includes both finished and semi finished goods. We areproducing 22000 units. Out of these units 6000 units are finished and 16000 units are semi
finished goods.
Sales, Price, and COGS Breakdown
Price
costof
good
margi
n
Capacity
"
yearly
salesSales
monthly
Yearly
COGS
COGS
monthl
yFinished
units 490 305 155 6000 2695000 224583 1677500 139791Semi
finishedunits 180 122 58 16000 2880000 240000 1952000 162667
Cost of Goods Sold
Cost of goods include wood price and machinery charges in case of semi finished goods and in
case of finished goods it includes later and other polishing charges and sticker prices etc.
Operating Expenses
Salaries and wagesWe have 15 employees out of which 6 are skilled and rest are semi skilled or un skilled the
former gets 8000 per month and late gets 4000 per month
Miscellaneous expensesThese expenses include electrical charges, telephone, fuel and carriage etc. it also includes
travelling expenses.
Advertising:we have investment some amount at the initial stage in promotional strategies which will be
amortized @ 5% from the next year.
Legal
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We to give pay Rs 30000 for license fee and this amount is included in preliminary expenses and
we will write off these expenses over a period of 10 years.
Rent
This includes rent of outlet and the land that we have taken on lease for manufacturing purpose.
We are paying a total amount of Rs 264000 under this head.
Cash Flow Projection Explanation
Cash In From SalesWe are selling goods mostly on credit because our new entry but instead of this we are able to
get near about 5% of sales in cash. Our debtors collection period is 2 months we receiving the
remaining amount in the next month.
.
Other Expenses
Expenses are paid in the month they are incurred that means there is no outstanding balance in
expenses.
Break Even AnalysisIf we take into consideration, cost of machinery and other preliminary expenses then our break
even sales are Rs635000
Sources and Applications of FundsCapital contribution by owners Rs 2000000
Loan provide by bank Rs 1800000
Machinery and equipments Rs 530000
Preliminary expenses Rs140000
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Projected balance sheet of Super sports
Liabilities AssetsRs
Capital2000000Loan1800000
Creditors
513000
total
4313000
Machinery
530000Equipments260000
Stock
1700000Debtors
590000Cash
1093000Preliminary expenses @5% written off
140000
total
4313000
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Operational Plans
Locations & Facilities: We are starting our business in Kashmir and Jalandhar. In Kashmir
we will have manufacturing unit because easy availability of raw material and labour. As
Kashmir is famous its wood work so there is skilled labour for our sports products. And also
there is easy availability of raw material (woods).
In Kashmir we need 2 kannal of land. We will arrange this land on lease of Rs.50,000 yearly for
5 years.In Jalandhar we will have a outlet in sports market football chowk . This will also be onlease of Rs.84,000 per year.
Description Location Lease/Owned Lease /Rent
Manufacturing Unit Kashmir Lease Rs.50,000 per year
Outlet Jalandhar Lease Rs.84,000 per year
Operating Methods/Procedures : We are adopting a U shaped process for
manufacturing.Raw material
Wood: wood will be purchased from Kashmir where we have our manufacturing
unit.
1. Types of wood:y Willowy Populary Breny Kikkar2. Glue
3. Polish
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4. Sticker
5. Sandpaper
6. Machinery
y Sawmill -2 machinesy Demoy Generator
7. PestisidesLabour we need:
Total number of workers: 15
10 people at the initial stage
5 people after21 days of start of process
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PRODUCTIONPROCESS:
Firstly we have wood in the form of raw material. Then it will go for shaping in the sawmill a
machine to provide shape and will be handle by the skilled labour. 1 unit of product will take
approximately4
minutes to shape & size. In one day if we work for 8 hours we can produce 120
units at 1 machine. As we have 2 machines we can produce 240 units in a day. Still this we have
semi finished goods. Here will be inspection to check the size and right shape of the product.
After this pesticides will be given and semi finished goods will be dry for a particular time this
time depends upon the initial condition of raw material. After this process, process of rubbing,
handling jointing & polishing will be done. At this stage again an inception will be done
regarding polishing of the product. After passing by inspector stickering & packaging will be
done. This will be our finished good.
We can safe around 5000 units as inventory as semi finished goods so initially to produce 5000
units it will take around 21 days so at the very beginning we need only skilled labour and
inspector.
Raw material
Shaping & Size
Semi finished
goods
pestisiding and
drying semi
finished goods
Rubbing
Handlingjointing Polishing
Stickering &
Packing
Finished Good
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HUMAN RESOURCE PLAN
The establishment of a high motivation human resource program can result in important benefits
to a firm. In the first place and most obviously, such a program allows for the creation of a
positive work environment in which employee morale, job satisfaction, and productivity can be
maximized. Also, a good human resources program will enable a firm to attract the best available
employees, create a positive work milieu, and build cooperation and teamwork among the
various groups in the company.
There are eight basic elements in establishing a high motivation human resource program: (1)
survey employee attitudes on a regular basis; (2) show an individualized concern for employee
satisfaction; (3) communicate regularly and forthrightly with workers concerning company
progress and direction; (4) treat all employees in a fair but firm manner; (5) maintain wages,
salaries, and fringe benefits at competitive levels; (6) attempt to gain the allegiance of the natural
leaders in the work force and channel them into management positions or employee
organizations such as the suggestion committee or employee activity group; and (7) keep the
work environment as clean and modern as the budget will allow; and (8) avoid hiring workers
who do not have the qualifications to perform the work they are employed to do.
Effective communication within management and between management and employees is very
important in building employee morale and high productivity. We being the initiator and at the
top management will hold regular meetings with line management to discuss company thinking
on employee matters and get from these men and women the problems they are having in the
working sphere..Our employees will also be informed as to the progress of the firm and what
direction it proposes to take in the future
REQUIREMENT OF LABOR
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Total number of workers required will be 15.These workers are further classified into skilled and
semi skilled workers which will be hired on the basis of the qualification and experience. The
skilled workers will be provided the job of proroviding shapes to the raw material and the
packaging and labeling work will be done by the semi skilled workers. There will be one
inspector as well whose work will be to check the quality of not only the goods produced but
also the quality of the raw materials and as well as the production process.
Number of skilled labor= 9
Number of semi skilled labor=5
Inspector= 1
SALARIES
The first step in setting up an equitable wage/salary and benefit plan should be the review of
wage, salary, and benefit levels for competitiveness in the market and for internal consistency.
This should be followed by the drawing up of job descriptions and job specifications, the
evaluation of positions, the taking of wage and salary surveys, the setting of new job rates whererequired, and the establishing of a wage/salary payment plan which relates output to merit
increases and provides for wage/salary progressions which employees consider equitable.
Salary given to the skilled workers will be 8000 per month.
Salary given to the semi skilled workers will be 3000-4000 per month.
Salary given to the inspector will be 7000 per month.
INCENTIVES
Employees will be provided with various incentives which are as follows:
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Overtime-Under this the workers will be paid more on the basis of their time spend on their
work.
For skilled workers the overtime pay will be rs 40 per hour
For semi skilled workers the overtime pay will be rs 20 per hour
The workers will also be given healthy working environment and medical facilities as well
because they have to spend their time on different machines.
Facility of group insurance will also be given
Some additional programs which build employee morale, motivation, and loyalty are the
following:
Company newsletter
Employee electronic bulletin boards
Partial or complete subsidization of cost of production worker work clothes
Reasonable wash-up time for production workers
Company sponsored employee discount purchase plan
Employee activity committee to organize dances, dinners and sports leagues
Service award program
Choosing employees at random for awards, such as free baseball tickets, paid dinners, etc.
Annual company picnic
Program in which workers represent company at charitable events at holiday times
Annual open discussions between employees and top management - small groups meet with
President and Human Resources Director to discuss employee relations subjects and company
progress
Company sports program partial or full subsidizing of cost of golf, bowling and baseball
leagues and uniforms
Scholarship awards to children of workers
Company paid lunches when work groups surpass long standing output records
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Suggestion system - with or without cash awards
Keeping employees productive and satisfied with their work is not a difficult matter. The key to
success is building an awareness of the problems which create employee discontent and low
productivity, establishing a human resources program to counteract them, and operating the
program as an integral part of general business operations.
MARKETING PLAN
SITUATIONAL ANALYSIS
In situation analysis we have taken three Cs:4
.
Company
5. Customers6. Competitors1) Company
Company - SS-Sports.
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Product line- we are manufacturing two variants of cricket bats
a) Ss- professional ( a fine quality willow made)b) Ss passion ( medium quality willow made)
Technology and experience
We are using traditional form of bat manufacturing i.e. handmade with simple tools of crafting.
The reason is that a bat manufacturing is a very crucial task to perform and it can effectively be
done through hands so that its quality can be maintained. A machine made bat is not so much
good in comparison to it, moreover the other factor of choosing this method of manufacturing is
that manufacturing through labour requires a nominal investment as only the cost factor is the
wood and the salaries to them.
We have the labour force that has the experience of over3 years in this industry. As discussed
earlier that the experience is the main requirement to have an quality product, that is why we
divided the whole process of manufacturing into different steps and the work is allotted as per
this criteria among the semi-skilled and skilled labour.
Goals
y Short term To have a sustainable market share and to capture the untapped market. Thisis our first goal that we are working upon, because in Punjab there are already many local
and national players in the market. And to attain the same the first strategy is to launch
our SS-Passion product in the market in bulk than the other one and the ratio could be
4:1. This is due to the reason the professional players will not easily accept the brands
until it has a good image. That is why we are launching bats for the habitual at the initial
stage.
y Long term - build an image of a strong player in the market. This is our long term goaland can be achieved if we got a good image of our brands in the market. This could only
be done after our first gone is achieved. We have designed lot strategies to achieve that
level and would be discussed in promotions part.
2) Customers
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Market size- we are currently focusing on Punjab and further to go for whole north region. This
is due to the factor as we have a little amount to contribute on promotional activities, and the
production is less in the initial stages.
Market segment we are segmenting the market on behavioural variable i.e. product end use.
The cricket is the No. 1 game in India. It is sometimes called as religion. Because of the fact
that India has largest number of fans. The school and college students especially play it as to pass
the time and to satisfy the need of entertaining themselves. The other group is of youths who
plays cricket as career and profession, in national, state or district levels.
Ss-Professional- for those who play as their career.
Ss- Passion for those who play as hobby.
3) Competitors.Here if we look at the sports industry then cricket has various competitors like football,
volleyball, badminton and tennis. But if we talk about the cricket only our competitors are local
sports goods manufacturers as well as national brands of cricket bats.
Strengths of competitors
1) Products in the market from long period: They have got a plus point of a long termpresence in the market as everybody knows them and have developed loyalty among their
customers.
2) Knowledge about customer needs: They know but people actually demand as they knowit through customer grievances and regular feedback.
3) Sponsorship taken of various cricket tournaments: They have already signed variouscontracts of sponsorships over a number of years with many upcoming events.
4) Tie-ups with various schools and colleges: Colleges also organise many tournaments likeinter-college or intra-college tournaments so many brands already have tied-up with
them.
Weaknesses of competitors
1) More intermidiatories from manufacturer to customers: There are many intermidiatoriesbetween the manufactures and the ultimate consumers in case of the present competitors.
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2) Low quality of wood used: They generally use substitute for willow and is not so stableand efficient for playing.
3) Low quality: Manufacturing by machines results to poor quality. They manufacturesmainly by using machines, this could result in poor quality of bats
4) Generally heavy: As they use substitute for willow, the other wood is generally heavierand the final product is of more weight.
PEST ANALYSIS
Political & regulatory environment
y We are using willow for our products, so there would be great danger for our business ifgovernment frames trees protection policies.
y Other environmental protection organizations like WWF is also working onenvironmental protection and could prove as a threat to our business.
Economic environment
y Increasing rates of diesel put to more cost: we are sending goods from Kashmir to jammuthrough trucks and later on by trains. As petroleum rates are increasing day by day so it
could result in more cost to us and would force us to decrease our profit margin or to
increase the price of products.
y Octoi and other charges: If Punjab govt. would increase the octroi and taxes then it willincrease our cost of transportation.
y Cost of living and inflation could force us to increase our products price: The demandrise in prices would result us to increase the salaries of workers and employees them
ultimately to write off we have to increase the prices.
Social/Cultural environment
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y Very busy time table: In a busy schedule there is less time for games. In fast moving lifenobody has enough time to entertain him by playing. Also the people who really like to
play cricket could not even find an hour to play.
y Changes trends of playing: the people are finding other ways e.g. switching from outdoorto indoor games as relatively less cost is there and also can be played involving every
member of family.
y Decreasing land for playing in cities: As the trend is changing and the open spaces arebeing filled by buildings so that is why people are finding other forms of playing.
Technological environment
y Shift to computer based cricket games. Now in the modern technological era thealternative to the outdoor is there. EA CRICKET is a computer based game where an user
can satisfy his hobby of cricket in home or office.
STP Model
Segmentation
We are segmenting the market on behavioural variable i.e. product end use. That how a person
treats the product based on his requirement .it divided the market into two category people:
1) Professional players.2) Habitual and general players.
Cricket is the No. 1 game in India. It is sometimes called as religion. Because of the fact that
India has largest number of fans. The school and college students especially play it as to pass the
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time and to satisfy the need of entertaining themselves. The other group is of youths who plays
cricket as career and profession, in national, state or district levels.
Targeting
We are mainly targeting the people who are playing as an entertainment. Because it has a great
demand of quality but generally at a low price .this group wants the rigid and stable product that
could cost them less. The main reason for targeting this category was to introduce a possible best
thing at a low price. Here the pull strategy will work, as the demand will got higher and higher.
Because we are penetrating our product. And a little promotion will do the rest to increase the
sales. And probably we can increase our rates at later stage.
Positioning
Through our various promotional activities that are mentioned below like sponsorship,
advertisements, hoardings and banners, and especially through the sponsorships of college
cricket tournaments.
FOUR PS OF MARKETING
1)ProductSs Passion (a medium quality willow made) - this is our basic product that we are
going to launch in the low range cricket bat category. This is medium-quality willow
product but comparatively very efficient and long lasting than its competitors products.
It is good featured product than its category due to its light weight and low price.
Moreover it is stable and designed by the skilled labour and not using any kind of
machines and equipments.it is simply for the habitual and general players.
Ss- Professional (a high quality willow made) - this is a superior product and specially
designed for the people who are playing cricket as their career. It is made from the fine
quality willow and would compete the Indian market players like BDM and Fenta. It is
cheaper than its competitors as we are selling them without any intermediatories and due
to these economies we maintained a lower price. It takes about twenty-one days produce
this bat because a lot of steps are required to follow.
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2)Pricea) Ss- Passion (medium quality willow made)- Rs 300. We have initially planned to
launch this product at this range because the other players are there who are playing on
less price.
b) Ss Profession (high quality willow made) - Rs1500. The initial price is little lowerthan the existing competitive rate and would increase as per the demand factor.
3)PlaceManufacturing- Kashmir
Distribution centre- Jalandhar
4)PromotionWe are planning to spend 80 thousands on advertisement and promotional activities.
Advertising Advertisement is very essential for a new company for its emergence because to
generate awareness and to increase the demand. Our advertisement will include print ads,
billboards, brochures, catalogs, posters and banner ads. It would be done near to the school and
college gates. Printed brochures would be distributed in the gathering like college campuses and
bus stations.
Personal Selling We will directly go to school and colleges and meet to sports co-ordinators
there in order to convince them for buying. We would send our marking team to these institutes
and to deal with their sports department in order to get a contract for supply of our products.
Making retailers: We are also planned to increase and expand our distribution through the
shops. We will regularly send are teams to the market to give knowledge about our product and
to place the orders by them.
Sales Promotions
1) Special discount offers for bulk purchase. Discount ranging from 5-15% would beprovided if the lot is big. More is the order more would be the discount.
2) Free T-shirts for Ss- professional bat buyers. This scheme is only for the buyers of theSS-professional bat as to launch in this segment needs lot of offers, and this is one of the
promotional strategies we are following.
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3) Exhibitions at various play grounds and state level stadiums. In Punjab there are manygrounds. Every school and college has their own ground and also many stadiums are
there on district levels. We will treat them as a big platform for are promotions and
demonstrations.
Sponsorship
1) Upcoming institutional events: We are planning to sponsor various cricket tournamentslike the upcoming cricket tournament at LPU. LPU is organising cricket tournament in
the next coming year, we are also in a talk with the university vice-chancellor about this
issue, and it would give us promotion on big level.
2) Organising intra-state cricket tournaments. We are planning to enter with contracts withmany big inter-state events at a quite later time, because it needs a huge amount of money
for promotion.