project on tea table

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- 3 The Tea Table Page 1

A Business report on T -3

The Tea Table

Submitted to Christ College (Autonomous) in partial fulfillment of the requirement for the

award of the Degree of Bachelor of Commerce ( Professional ) Bangalore University during the

year 2009-2010

Submitted By:

Kunal Kothari ( 07D0808)

Philip Cyriac ( 07D0814 )

Rohit Sanganeria ( 07D0817 )

Sumit Gupta ( 07D0820 )

Praveen Mishra ( 07D0838 )

Under the guidance of

Mr. Elangovan

Department of Professional Studies

Christ College (Autonomous)

Bangalore - 560029

2009-2010
http://www.teleshoppe.com/campus/college/images/collegeimages/1610821052ChristC


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Certificate of the Guide

This is to certify that the project titled ABusiness Plan on a Tea Lounge T - 3 is an original

study conducted by Rohit Sanganeria 07D0817

Kunal Kothari 07D0808

Sumit Gupta 07D0820

Praveen Mishra 07D0838

Philip Cyriac 07D0814

of 6th

Semester B.COM (Prof.), under my guidance

Place: Bangalore ______________________

Date: January , 2010 ELANGOVAN

(Project Guide)


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Acknowledgement

We would like to express our profound gratitude to all those who have been instrumental in

the preparation of this project report. An Experience is the catchword for anyone to acquire

knowledge, which we think has been accomplished successfully during the completion of this

project.

We express our sincere thanks to Dr. Fr. Thomas C. Mathew, Principal of Christ College and Mr.

Biju Toms, Head of Department, Professional Studies for their encouragement and support.

When you know where you are going, tell others, they might have directions for getting

there We are deeply grateful to Mr. Elangovan, Faculty, Department of Professional Studies,

Christ College, for the cooperation extended by him to conduct this study, advising us on the

project report and furnishing the required information.

We would like to thank Mr. Pasha for his extended support and guidance, for sharing his views

and thoughts and lending his ideas for the successful completion of this project.

Lastly we would like to thank our parents and friends for their constant help and support.

____________________ ____________________


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Declaration

This is to certify that the project titled A Business Plan on a Tea Lounge T3, The Tea Table is

the record of independent research work carried on by Rohit Sanganeria, Praveen Mishra,

Sumit Gupta, Philip Cyriac and Kunal Kothari .

This has not been previously submitted for the award of any diploma or degree to any

university or institution.

Place: Bangalore ______________________

Date: January 2010 , Coordinator

(B.COM (Prof.)


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Table of Contents

CONTENTS PAGE NO.

Chapter 1 05

Introduction

Chapter 2 12

Executive summary

Chapter 3 15

Feasibility study

Chapter 4 33

Marketing

Chapter 5 54

Finance

Chapter 6 67

Human Resource Management

Chapter 7 91

Production and operations

Chapter 8 104

Executive Plan

Bibliography 106


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CHAPTER 1

INTRODUCTION


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Small Scale Industry

A small-scale industry has been defined as those units that have investment in plant and

machinery of up to Rs 1 crore.

The following requirements are to be complied with by an industrial undertaking to be

graded as Small Scale Industrial undertaking w.e.f. 21.12.1999

An industrial undertaking in which the investment in fixed assets in plant andmachinery whether held on ownership terms on lease or on hire purchase does not

exceed Rs 10 million.

(Subject to the condition that the unit is not owned, controlled or subsidiary of any

other industrial undertaking)

Medium Scale Industry

A medium-scale industry is one with investment in plant and machinery of Rs 1 crore to Rs

10 crore.

The following requirements are to be complied with by an industrial undertaking to be

graded as Small Scale Industrial undertaking w.e.f. 21.12.1999

An industrial undertaking in which the investment in fixed assets in plant andmachinery whether held on ownership terms on lease or on hire purchase does not

exceed Rs 100 million and is not less than 10 million.

(Subject to the condition that the unit is not owned, controlled or subsidiary of any

other industrial undertaking)


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Role of Small & Medium scale enterprises

A leading, industrially advanced developing country, India has large, medium and small

industrial units of production in almost all branches of the industry. Since the time of the

independence in 1947, a significant feature of the Indian economy has been the rapid growth

of the small industry sector. The small industry sector and medium industry sector is

considered to have a major role in the Indian economy due to its 70 percent share in the

national industrial output along with an 80 percent share in industrial employment and nearly

35 percent share in exports .SSEs and MSEs are usually distinguished from the large-scale

industries on the basis of size, capital resources and labour force in the units.

However, there is a clear distinction between the traditional and modern small

industries. The traditional industries include khadi and handloom, village industries,

handicrafts, sericulture, coir, etc. Modern industries manufacture a wide variety of goods

from simple items to sophisticated items such as television sets, electronics control system,

various engineering products, particularly as ancillaries to large industries. The traditional

industries are highly labour-intensive, while the modern industries use highly sophisticated

machinery and equipment.

According to the Seventh Five Year Plan, the growth of the SSIs and MSIs has been

constrained by various factors ``including technological obsolescence, inadequate and

irregular supply of raw materials, lack of organized market channels, imperfect knowledge of

market conditions, unorganized nature of operations, inadequate availability of credit,

constraint of infrastructure facilities including power etc. and deficient managerial and

technical skills.''


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Introduction to the Industry

India comes under the spotlight as it is a hospitality market of great appeal and notable

growth. Known in reputation for cultural tourism; the great Indian temple circuit, health

tourism and adventure, it is an exciting and emerging place for both investors, managers

and guests alike.

According to research carried out by the Federation of Hotel and Rest T - 3nt Industries in

India (FHRAI) there are approximately 500,000 rest- T - 3nts in India in the organized sector.

International and domestic multi-unit rest - 3nt groups are expected to drive the expansion

in the restaurant industry in India.

Increasing urbanization and rising disposable incomes mean that Indian consumers are able

to spend more on food. However, only 2.4 percent of their food expenditure is actually

spent in hotels and rest - 3nts (including on premises and take-out sales).

In terms of culinary trends, there is the popularity of health foods, use of fresh and

authentic ingredients, expansion of quick service, acceptance of new fusion concepts, rest-T

- 3nts with a focus on entertainment, and ethnic and regional cuisine rest-T - 3nts and

establishing of the chef entrepreneur.

To increase sales volume, multinational restaurant chains made a downward price revision,

added more spicy items in their menus to satisfy Indian taste buds and now offer more

vegetarian toppings. This led to a dramatic improvement in their performance.


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Initial Investment

Rs. 20,00,000 (twenty lacs Only)

Capital Rs. 1500000 (3, 00, 000 * 5 partners) Bank Loan Rs. 5, 00, 000


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CHAPTER 2

EXECUTIVE SUMMARY


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Venture Profile

T - 3 - The Lounge is the Total Tea Concept offering consumers a wide variety of tea,

coffee, hot and cold beverages, deserts, pastries and other variations of tea.

The concept was conceived in response to the spiraling demand for high quality tea and

beverages as an alternative to coffee in the IT city of Bangalore.

Tea is no longer boring as there is something for everyone and every occasion. Our primary

focus is on 40 varieties of tea such as black tea, green tea, white tea, herbal tea, Chinese

tea, diet tea etc.

We have created an environment where the consumption of tea is an experience in itself.

Luxurious, cozy and sensual are feelings that best describe a visit to the T - 3 The tea and

coffee Lounge.

Our First Lounge is scheduled to open at Hosur Road, Bangalore by April 2010 and

thereafter we will be expanding ourselves to a chain of 4 lounges. A public survey has been

conducted by us. The response has been phenomenal. The varieties of tea provided by us

would be new and exclusive in the market and the environment would be pleasurable to

relax in is what they expect of the Lounge.

KEYS TO SUCCESS

Experienced Owners/Managers Product Quality. We sell only the finest whole-leaf loose teas. Excellent Customer Service. Each customer will be treated as an honoured guest in

our homes.

No direct competition. We are the only teahouse in Bangalore. Enough working capital to survive the first year as we build a customer base. Broad cross-seasonal offerings. In addition to hot teas, we offer iced teas, coffees,

snacks and gift baskets to cover seasonal variations in customer demand


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A CUP OF INNOVATION

While the tea industry seems placid on the surface, innovation is bubbling across the

industry. Tea is returning as the beverage of choice of a growing population. The range of

choice now includes green, herbal, flavored and iced tea, besides black tea. It has moved on

from being a static commodity to one where menus are designed with matching teas just

like wine, and tea sommeliers describe the origin and unique merits of the seasonal

manufacture period of the tea.

Tea is now looked at as a lifestyle product. It now includes exotic formulations. For example,

green tea with honey, lemon and ginseng is a mentally soothing Tetley offering, just one of

the many innovative blends that it has in its range.

SUPPLEMENTS

Since our focus is mainly on tea but in order to satisfy the coffee lovers we wouldalso provide selected varieties of coffee which are highly popular like cappuccino,

caf latte, espresso, caf mocha etc.

In addition to these we will also have munchies like sandwiches, burgers, puffs rollsetc.

Tea paraphernaliaTea paraphernalia includes specialty teapots, tea balls, decorative tea tins, "art of

tea" books, and various small, seasonal, non-food, tea-related items.

Gift BasketsWe offer a selection of pre-made gift baskets, and will work with customers to

create custom baskets for any occasion.


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CHAPTER 3

____________

FEASIBILITY STUDY AND SUMMARY


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SWOT ANALYSIS

Strengths:

Customer responsive organization Attracting tea lovers as well as

coffee lovers under a single roof.

Wide variety of tea preparation. Unwind with a game of pool, comics

and magazines.

Cool, relaxed and pleasantatmosphere.

Internal and external systemsdesigned to meet and exceed ever

growing customer requirements.

Weaknesses:

T - 3 isnew business competingagainst established brand names with

many outlets.

To significantly build sales, we mustnot just find new customers - we

must take customers away from

existing stores.

Low budget for advertisement in thefirst year though we will be expandin

slowly .

Opportunity:

Very fast growing market Tea - 2ND largest consumed beverage

after water.

Centers to relax and refresh is needof the hour.

Grab the market of tea where veryless competitors in term of varieties

of tea can be found

Threats:

The strong brand name of majorcompetitor Caf Coffee Day,

Mocha, Qwikees etc.

Customer requirements on servicedeliverables constantly pushes them

to perform better which at times may

boomerang.

Failure of the business whereinvarious organizational problems may

be the prime factor.


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Entrepreneurs SWOT

STRENGTHS

Sufficient knowledge in the field ofBusiness Management.

Determined, motivated and hard workers. Hailing from a Business family.

WEAKNESSES

Inadequate practical experience in thebusiness industry.

No experience in managing staff.

OPPORTUNITIES

Budding Entrepreneurs. Creativity and more business opportunities

in the future.

THREATS

Inadequate Financial Support. Customers wanting to go with existing

brands rather than try something new.


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Methods of Research

The market research methods that the researcher will use, will determine if T - 3 will be

feasible or not. Methods will consist of both secondary and primary research.

Secondary Research

Secondary research refers to data collected from books or text written by an expert on a

subject. Secondary data will be collected from the Bangalore Development Agency as well as

the internet and previously conducted similar surveys. Information to be collected includes

supporting academic peer reviewed articles from the Internet as well as secure on line

libraries as well as articles from books on all subjects affiliated with this study. As concerns

statistical data, the researcher aims to consult the Bangalore, development and Statistical

agencies.

Primary Research

Primary Research is defined as information or data collected from the natural world. In

view of primary research to be conducted, a multi-method observational approach will be

undertaken under the view of a preliminary pilot study to determine if the lounge could be

feasible in the proposed area and whether or not it will be appealing to the lounge target

markets. As part of the primary research the researcher plans to conduct a survey on the

concept of the tea Lounge theme and also form a semi structured interview with the owners

of Cafes, rest -T - 3nts, ice cream parlors concerning the nature, concept and overall feel of a

tea Lounge.


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Competitor analysis

Competitor analysis is an assessment of the strengths and weaknesses of current and

potential competitors. This analysis provides both an offensive and defensive strategic

context through which to identify opportunities and threats.

Competitor analysis is an essential component of planning a business strategy, which is

essential for all the firms to conduct this type of analysis systematically enough. Enterprises

operate on what is called informal impressions, conjectures, and intuition gained through

the tidbits of information about competitors every manager continually receives. As a

result, various competitive blind spots are ignored.

Our competitors may be caf coffee day, Mocha , qwikees , vayu lounge, various other

lounges, soul caf, local chai stalls etc. All these being well established brands and possess

the main threat as our competitors. Many of them design their strategy to attract customers

by making them enjoy loud music or by keeping very eye catchy colour themes but we

believe in attracting customers to our lounge by giving them plethora of varieties of tea

along with soothing ambience, slow and soothing and warm music and at very much

competitive or low prices.
http://en.wikipedia.org/wiki/Competitorhttp://en.wikipedia.org/wiki/Competitor


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Present and future scenario of the business

Tea is a beverage which is very much liked by everyone from 8 years old kids to 70

years old people. Presently with umpteen varieties of tea coupled with tasteful coffee and

delicious snacks and pocket friendly prices our concept of tea lounge which is very different

and new in its own kind would surely attract all the tea enthusiasts along with youths who

keep searching for new addas for hangouts. It may be a little difficult in the initial days to

attract the expected number of people but our explicit marketing strategies will surely help

us serve target consumers in very short period of time. We are sure that the service

provided by us will definitely force people to suggest name of our lounge to their friends,

family and relatives and this word to mouth advertisement along with our marketing

strategies will make its own way for enhancing the popularity of our lounge in near future

and coming years.

At present people at Bangaloreans are in search of places which may be a new

adda or hangout designed to be cool, neither a kiosk nor a parlour, with an ambiance that is

warm, friendly, unpretentious and fun. The initiative aims to bridge the gap between the

low end functional tea shops and high end aspirational joints. We are targeting the youth

and middle aged employees; creating a point of convergence for an increasing number of

out and about people, where they can just be themselves and enjoy a cup of tea or coffee

along with snacks of different kinds.

Regarding the future scenario we have estimated the business to be satisfactory as

we are going to open a series of outlets in many places of Bangalore. We are going to be a

tough competitor for the big brand names, such as CCD, Mocha, Qwikees etc. We

have an estimate to increase our sales by 40% in the second year. To bring the lounge in the

limelight our publicity and advertisement will increase considerably in the upcoming years.

Thus we wont leave any stones unturned to progress and take our business to greater

heights.


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A FEW TEA MYTHS AND FACTS

TEA MYTHS

Most people do not consume tea as a morning ritual as they do with coffee. Tea is consumed in the afternoon and before bed. People drink tea only in cold weather making the business seasonal. Tea is closely associated with the image of old ladies, china cups and dollies.

TEA FACTS.

Tea is growing in popularity and more people are drinking tea in the mornings as asubstitute for coffee.

Tea is being consumed throughout the day; its milder caffeine effect allows formultiple cups without the "jitters."

Today's tea drinkers do not limit their purchases to one season, but drink tea all yearlong.

Tea has become the drink of choice for today's baby boomer, and tea's health effectsare giving tea a more active, youthful, and healthy image.


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The Questionnaire Production, Technical and Marketing Analysis

Sample Size 50

Keeping a sample size of 50, the following questionnaire was framed to help analyze the

Marketing, Production and Technical feasibility of our venture. The response and feedback

was overwhelming, making us confident that a successful venture was in the making.

Following is the specimen of the questionnaire that was given to 50 people in the city of

Bangalore comprising of teachers, students, housewives, professionals and others.

Name: __________________________________

Age: _________________

Sex: M/F

Profession/Occupation: _________________________________

1. Are you a tea drinker?

Yes No Occasionally

2. How often do you drink tea in a day?

3. Do you drink tea at home or outside?

4. How much do you spend on tea each month on outings?

Once Twice Thrice More than thrice

Home Outside Office All place

Below 500 500 1000 More than 1000


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5. What do you think will be the normal price of tea in a tea shop?(in rs.)

6. Do you think is it good or healthy to drink tea?

7. Can you go a day without drinking tea?

8. What is the purpose of drinking tea?

Time pass Relief Stress buster

9. Would you prefer going to a tea shop rather than drinking it at chai stalls?

10.What do you think about a Lounge being exclusively dedicated to tea along with

other beverages?

11.What are the flavors of tea that you like?

Masala Lemon Normal Others

10 30 50 50 and above

Yes No

Yes No

Yes No

Excellent Good Average Bad


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12. In which container would like to have your tea?

13.Which of the following places do you visit the most?

14.Whom would you visit the place with?

15.If opened, how often would you the place?

Anything which you would like to be included in the tea Lounge?

Your Valuable Suggestions

Date: Place:

Kulhar(clay glass) Cup Disposable glass

Caf Coffee Day Barista Mocha Other

Friends Family Colleagues Other

Often Occasionally Rarely Never


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The above pie chart shows how much people spend weekly on their outings,

hangouts, fun and leisure. Weekend enjoyment may be of many kinds as if going to

movies or hanging out at coffee bar etc.

The data depicts that around 4% people spend more than 2000 per week on their

outing, people spending around 500-1000 constitute 32 % along with people

spending below Rs 500 and more than Rs 1000 per weekend.

500-1000

32%

1000-2000

32%

Below 50032%

Above 2000

4%

Weekly Spending On Outings


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The above bars depict the most famous hangouts of people. Ccd/barista basically soothes

the customers with beverages (hot and cold), pastries etc where as mocha basically deal in

serving of snacks and tobacco contained fruit hookah, qwikees also provides snacks along

with hot and cold beverages and normally the tea stalls that are present do not provide

healthy environment as well as lack in providing good quality tea.

In T3, we provide wide variety of delicious tea along with mouth watering snacks and

other cold and hot beverage, which is provided in a very soothing aroma which will please

the mind of our guests. Hence knowing peoples preferences will help us design our

strategies in lines with our competitors.

Therefore we will have to keep a close eye on the activities and behavior of our competitors

to frame better strategies.

0

5

10

15

20

25

Ccd/Barista Mocha Qwikees Tea Stalls

Competitors Structure


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Concept feasibility

After the study of concept feasibility, it is found that 15 % people believed the concept to be

excellent where as 20% people graded the project to be as good whereas 10% believed the project

to be average and many of people were of the view that they cannot comment about the feasibility

of project. The people of Bangalore are enthusiastic about coming up of such a project which makes

us confident about the feasibility of our venture.

0 5 10 15 20 25

cant say

average

good

excellent


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When asked If opened how frequently they would visit T3-the tea table 14 out of 50

people said often, 26 said occasionally and 10 said rarely. Statistically speaking 80% would

visit the place somewhat regularly. Having said this, the daily headcounts would rather

sufficient to meet our expected level of sales.

0 5 10 15 20 25 30

Never

Rarely

Occasionly

Often

Frequency Of Visits


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The survey shows that majority of visitors will be accompanied with friends and also a major part

would constitute of those office going people who need tea break and want to freshen up their

minds. We expect people would just drive in as they are returning from office so that can have a cup

of tea of their taste and they would be soothed after the light ambience with books and slow music

of their choice after the hectic work schedule.

40%

20%

28%

12%

Kind Of Crowd

Friends

Family

working individuals

Others


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Marketing Feasibility:

The target consumers of the restaurant will be students, local residents, day time shoppers

and businessmen. The reasons for these selections are the high volume of Schools and

Universities in the area as well as the malls like forum, @home itself and nearby businesses.

T - 3 firstly aims to grab the attention of the youth of Bangalore who is more inclined

towards new ideas and concepts, and that of the young adult population between the ages

of 29 to 40. This age group tends to be regarded as a market demanding a wider diversity in

forms of entertainment and Cuisine and also tends to have the highest disposable income as

well as the largest propensity of eating out.

From the food marketing perspective, as well as concentrating on the female segment as a

driving force, the management aims to develop a healthier menu and tasteful to the palette

of men and women alike. Customer segmentation will be further explained using

Geographic, Demographic Psychographic and lifestyle models.

The Research study and the survey have bought us to the conclusion that our Target

Segment would comprise mainly of teenagers and females between the age group of 10 to

40.

We would use different advertisement media like Teasers at PVR and Inox, newspaper ads,

pamphlets, and promotional discount coupons. Campus visits and Road shows will also be

kept as an open option.

Keeping in mind the anticipation of the people and the innovative concept of our venture,

marketing wont be much of a problem for us.


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Production Feasibility:

Customer Value refers to the consumers assessment of the products overall capacity to

satisfy his or her needs

Having already defined the concept and our target market, T-3 sets to capture the market

as a unique concept and the first Tea Lounge in Bangalore. In addition, the establishment

will follow a concept of a completely tea oriented menu. This fusion of international and our

own recipes will be more greatly adaptable, giving customers a variety of tastes to choose

from. The lounge also intends to provide a healthy quick service take out, for lunch and

dinner increasing the total market share, supporting the shop clerk and business target

market in the area.

Production as we anticipate initially will cause little problems due to the low level of funds.

But once the project is complete and thrown open to the public, things would smoothenwith time.

According to the survey, production would mainly be in lines with the customer

preferences. Our major production will comprise of deserts, followed by snacks, beverages

and teas for sale.

Production is the most important part of our project as the overall success of the venture

rests on the success of production. Failing of production would mean a bad name in the

market and loss of customers. Conversely if the production flourishes, not only would the

tea shop get a good name, international recognition, higher profits and quick market share

will also become an effortless undertaking.


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Technical Feasibility:

As a result of a various survey done in Bangalore, it was found to hold the highest quality of

life in India in accordance to 5 categories:

living conditions economic dynamism culture/health/social environment environment/traffic Politics/institutions.

This will do nothing but increase the cantons growth and encourage domestic travel, giving

way to new opportunities for a unique lounge concept such as T-3.

According to behavioral segmentation, secure consumers together based on their

knowledge, attitude, use or respond to a product. The female target segment has different

behavioral criteria in their dining habits. The addition of children to our customer base at

this age frame, impacts on guests dining patterns and selection criteria. Factors of location

and distance have thus been heavily taken into consideration supporting the decision to

select the city centre as the ideal location for our establishment. This particular age group,

students and young adults is price sensitive due to housing and family oriented expenses.

The aforementioned supports the researchers decision of being a casual mid priced lounge.

It is therefore concluded that our proposed lounge will satisfy the characteristics of the

above groups.


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CHAPTER 3

MARKETING


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THE LOGO :


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STP ANALYSIS

SEGMENTATION:T - 3 will provide the local upper-middle-class community with aplace to socialize, indulge themselves with fine tea-coffee as well as snacks. Our

target regular customers are aged between 18-30yrs. We also expect customers in

age group of 35-60yrs to visit us often.

TARGETING: T - 3 is targeting the upper-middle-class corporate officials and collegestudents with a place to socialize, indulge themselves with fine tea, coffee as well as

snacks. We are targeting them as they are our potential regular customers with good

spending power.

POSITIONING: Keeping our target customers in mind T - 3 is positioned inKORMANGALA in the vicinity of large no. of corporate offices, popular mall Forum,

bringing walk-in traffic. Kormangala also has high concentration of college students

and is close to Christ University.


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7 Ps of Marketing

PRODUCT: A wide variety of teas is the specialty of T - 3. We also have coffee, pastriesand snack. While customers are sipping on their tea, coffee, they can also feast on our

wide collection of comic books like Calvin and Hobbes, Tin-Tin or magazines on gadgets,

automobiles, entertainment world, etc. The aroma of tea and coffee will be like bliss to

their mind and soul.

PRICE: The pricing strategy adopted by T - 3 is Pricing based cost, i.e. product is pricedwhat target customers would be willing to pay. Coffee products will be priced 10-15%

lower than CCDs pricing. Tea products would carry a small premium on their price.Charges for Pool-table will be 25% higher than market pricing. Comics and magazines

can be read for free.

PLACE: T - 3 is strategically placed in KORMANGALA in the vicinity of large no. ofcorporate offices, popular mall Forum, and bringing walk-in traffic. Kormangala also

has high concentration of college students and is close to Christ University.

Product

Price

Place

PromotionProcess

People

PhysicalEvidence


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PROMOTION: Our initial promotional strategy need would be to make potentialcustomers aware of T - 3 opening and location and products available. Advertisements in

local newspapers like Banglore Times, Pamphlets distribution outside corporate offices,

colleges and clubs. Our highly visible location in the KORMANGLA will bring walk-in

traffic

PEOPLE: T - 3 has a well trained, informed strong workforce which can effectively andefficiently cater to the customers even when the centre is completely occupied. There

are five waiters, three cooks, one cleaner, and a manager. Waiters have been trained in

interpersonal skills, know the products available very well, and explain the customers

effectively if required. Manager takes suggestions and complaints from customers

personally.

PROCESSES: Our customers can walk-in with complete confidence that their order at T -3 will be served to them in max 15 minutes. Most items would be served within 10

minutes. Some beverages need 15 min to be served with best quality. The whole process

of visiting T - 3 will fill customers with a sense of ultimate satisfaction, pleasure and

pampering.

PHYSICAL EVIDENCE: Our interior design will give T - 3 an intimate, cozy, comfortable,and chic feeling, which combined with the effect of delicious beverages and its aroma

will give customers a feeling of bliss.

MARKET ANALYSIS SUMMARY


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The Indian tea market is valued at Rs. 86 billion. The total production of tea wasestimated to be around 878 million kg in 2005 with a growth rate of about 7%.

Tea is considered as a India is one the largest Tea producer in the world. Indian tea isthe finest quality in the world. Tea is being cultivated in the high ranges of North

and South India

The consumption is above 600 Million Kg mark per year. The market consists of bothLeaf Teas and Dust Teas Dust.

Indian consumers have been turning towards tea as a more original, more "natural"affordable luxury The consumption is currently around 600mn kg. The domestic

demand of 600mn kg will rise at 1.5- 2 %.Indian tea in the international market will

remain highly price uncompetitive due to high production cost

Bangalore as such does not have very good tea selling outlets which provides us witha valid and a profitable reason to start the outlet.

The customers will be glad to pay the price readily for our products in exchange forthe high quality, great taste, and sense of prestige they receive.

In fact, higher prices for some items may encourage higher sales - these kinds ofcustomers eagerly accept the idea that higher prices equal higher quality, and want

to buy "only the best," regardless of whether their palate is educated enough to

appreciate the subtle differences.

Unique Selling Proposition (USP)

REDEFINE YOUR TEA CHOICES


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Logic:

T - 3, the first of its kind tea lounge of the city is a total concept tea lounge where you will

find varieties of tea delicacies which you would never even have heard of. The only place for

all varieties of tea, with a view to change the concept of limited tea alternatives.

MARKETING FEASIBILITY

STRATEGIES

Our marketing strategy needs to accomplish following things:

First, to make potential customers aware of T - 3 opening and location;

Second, to educate potential customers as to what a teahouse is, and why it is sowonderful.

Thirdly, to create a strong brand image to lay base for large no. of outlets in future.Clearly, with committed tea drinkers, the first will suffice. However, for the rest of

our target market, we must strategically define ourselves as the answer to the many

different things each group is seeking. Our highly visible location in the KORMANGLA

will encourage walk-in traffic.

The marketing budget will be Rs50000 in first few days of opening

Tea drinkers:

Appeal to their gourmet plates:

Advertisements in Newspapers like Bangalore Times

Pamphlets distribution outsides colleges and corporate offices.


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Michael Porters 5 Force Analysis

Threat of new entrants

Since Bangalore can be considered a favorable market location, it will always attract

competitors of any type of lounges or cafes. This does not only apply to restT - 3nts but also

to in-direct competitors such as, any establishment that targets the disposable income

spent for food. Since T - 3 is a unique concept and it will be the first to enter the market, it

will have a competitive advantage.

Competitive rivalry within the industry

Our rivals may compete aggressively and or sometimes compete in non-price dimensions

such as innovation, marketing, etc. This will once again depend on the following factors:

number of competitors rate of industry growth intermittent industry overcapacity exit barriers diversity of competitors informational complexity and asymmetry fixed cost allocation per value added level of advertising expense

Bargaining power of buyers

Due to the fact that consumers today are more price sensitive, in turn causes them to

expect value for money when dining out. This is a key issue that the restaurant will try to

maintain. This will result however in strong competition for lower prices. This is because our

competition also has to take into account the bargaining power of buyers.


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Threat of substitute products

Similar tea outlets to the Tea lounge, such as Coffee, tea or any other food is a direct threat.

Any cuisine that can substitute our product is regarded as a direct threat.

Bargaining power of Suppliers

Since most of the raw materials will be imported from the other international markets, it is

likely that we will be held hostage by one or two major suppliers. To help the situation, it

is forecasted to search for domestic raw materials, to import products ourselves or look for

a larger base of alternative suppliers. All these factors are to be taken into consideration

during the menu design, on the selection of menu items.


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Product Line

It is a group of products that are related in some way by being alternatives to fulfilling the

same customer need, by being marketed to the same target markets or through the same

distribution network or by being in a common price strategy. A product line is a group of

closely related products which are being able to satisfy a class of need, to be used together,

to be sold to the same customer groups, to be moved through the same distribution

channels or fall within a given price change.

T3s Product Line stands for the following:

Tea Coffee Drinks and Beverages Food and Snacks Deserts

Product Width

Product Width is measured by the number or variety of products manufactured by a single

manufacturer. T - 3 Product Width stands for the following:

Tea

WHITE TEA

White tea is the rarest of all tea types. A specialty of Fujian province on China's east coast, it

was relatively hard to come by outside of China until recently. The name comes from the

almost colourless liquor, and from the silvery hairs found on the buds of the plant. Delicate

in flavour as well as colour, the tea has a subtle, slightly sweet flavour and a mellow creamy

or nutty quality. White tea consists of the whitish buds of the tea plant; lower quality

varieties contain some leaves as well. The buds (and leaves) are naturally dried using either

sun drying or steaming methods. This is the final step in the production process, as white

tea is unfermented.


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GREEN TEA

Green tea makes up approximately ten percent of the worlds tea. The production process,

like that of white tea, starts with withering, followed by pan-frying or steaming to prevent

fermentation. (The two types differ in that white tea has a higher proportion of buds to

leaves.) After steaming and before drying, green tea leaves are rolled to give themthe

desired shape. In China, this consists of eyebrow-shaped or twisted pieces, tight balls, flat

needles, or curled whole leaves. Japanese green tea leaves are shiny green blades with

reddish stalks and stems. Green tea is greenish-yellow in colour, with a grassy, astringent

quality reminiscent of the fresh leaves. Scientific studies have shown that both green and

black teas prevent cavities and gum disease, and increase the bodys antioxidant activity.

OOLONG TEA

Often referred to as the champagne of teas, oolongs are considered to be among the

finest and therefore most expensive - teas in the world. Most oolongs hail from Taiwan; in

China they are also referred to aspouchongs. Oolong tea is semi-fermented, meaning that

it goes through a short period of oxidation (fermentation) that turns the leaves from green

tored-brown. The liquor is pale yellow, with a floral, fruity quality - reminiscent of peaches

and a hint of smoke. Due to the delicacy of the flavour, connoisseurs generally prefer

drinking it without milk, sugar or lemon.

BLACK TEA

Though known to most of the world as black tea, the Chinese call it red tea due to its

characteristic reddish-brown color. Black tea is the most common type of tea worldwide. It

has a broad range of flavors, but is typically heartier and more assertive than green or

oolong teas. It is made by fully fermenting the harvested leaves (for several hours) before

the heating or drying processes occur. This oxidation imparts a dark coloring and triples the

caffeine.

PU-ERH TEA

Pu-erh (or Puer) tea is in a category all its own. Though it could simply be classified as a type

of Chinese black tea, it is differentiated from other black teas by the fact that it isfermented
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not once, but twice. The double oxidation process is followed by a period of maturation,

which is often used to develop a thin layer of mold on the leaves. The mold imparts a

distinctive soil-like flavor that many people find off-putting. For this reason, pu-erh tea is

often consumed for medicinal purposes rather than for pleasure aside from being known

for its strong earthy quality, it is recognized as a powerful digestive aid.

FLAVORED TEA

Tea easily absorbs other aromas and tastes. Thus tea drinkers the world over have long

enhanced their tea with additional flavors, from flowers and oils to herbs and spices.

Flavoring tea is a well-established tradition in China, where, for centuries, people have

brewed tea with onions, orange peel, peach leaves, and berries. The Chinese are also known

for their flower teas - popular varieties include jasmine, orchid, rose, and magnolia.

In many Arabic nations, mint (plus a generous amount of sugar) is the flavoring of choice. In

India, the spicy masala tea is a popular beverage. It is made by boiling black tea with

spices such as cardamom, cinnamon, ginger, cloves, and black or white pepper; milk and

sugar are usually added as well. Beyond herbs and spices, the flavor craze has more recently

spurred manufacturers to produce tea with just aboutevery flavor imaginable, from banana

to toffee pudding.

BLENDS

Blends are the mutts of the tea world, possessing mixed heritages, so to speak, rather than a

single lineage. Tea producers make blends by combining different types of teas, often in

order to achieve flavor consistency from one season to the next. Common blends include

English Breakfast, Earl Grey, Irish Breakfast, andCaravan.

HERBAL INFUSIONS & TISANES

The word tea is often loosely used to describe any beverage made with the leaves of a

plant. But technically speaking, true tea is made from the Camellia sinensis and
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everything else isnt tea at all. Connoisseurs and tea professionals will tell you that all leaf-

derived drinks other than true tea should be referred to as tisanes or herbal infusions.

Tisane (tee-ZAHN) is what many people think of as herbal tea, that is, a drink made by

steeping various herbs, spices, flowers, etc. in boiling water. The term herbal infusion is

pretty much the same thing: a drink made by steeping an herb in hot water. These herbal

drinks are commonly associated with physical and mental health, and are consumed for

their soothing or rejuvenating qualities. They also suit the needs of those who wish toavoid

caffeine. Common herbal beverages are chamomile, peppermint, fennel, rose hip, and

lemon verbena.
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MENU ITEMS

BLACK TEA

Assam Rani Estate Full Leaf

Assam - Taj Mahal CTC

Keemun Congou

Kenyan - Keteada Estate

Nilgiri- Korakundha Estate

Yunnan Dao Ming

GREEN TEA

Cherry Bancha

Genmaicha

Gunpowder Green

Gyokuro

Hojicha Kamakura

Jasmine Dragon Phoenix Pearl

WHITE TEA

Earl White

Mutan White

Jasmine White

Silver Needle

White victory

CHAIS

American ChaiChai spice syrup, combined with your choice of milk (soy, rice,or dairy)

Traditional ChaiChai spices & tea, simmered with your choice of milk (soy,rice, or dairy).

Masala TeaChai spices & tea, brewed as tea. Decaf available.


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OOLONG TEA

Goddess of Mercy

Jasmine Imperial Tung Ting Jade Supreme

Wuyuan Mountian Ruikang

Lively cez

AFRICAN RED BUSH

'Green' Rooibos

Honeybush Rooibos (plain)

Rooibos Chai

Rooibos Chocolate Mint

Rooibos Earl Grey

FRUIT TEA

Bavarian Berries

Summer Peach Strawberry 'Creme'

Litchi punch

Sizzlerz red

Turquish blue

HERBAL TEA

Calming Blend

Calm Your Fury

Cerebro Brain Tonic

Gentlemen's Balance

Lavender Dream

Rosy Calm

Tart & Sassy

Tonsil Tamer


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THE OTHER DRINKS

Coffee O - caf or decaf

Custom Brewed Iced Tea Iced Tea Daily Specials (seasonal)

Local Cider (seasonal)

Hot Cocoa (seasonal)

THE FUSION SNACKS - SANDWICHES

Masala Bread- Cucumber & Cheese

Plain Bread Coleslaw

Masala Bread- with grilled Paneer, Aloo & Chutney

Plain Bread with chutney

Plain bread with cheese

INDIAN SNACKS & DESERTS

Samosa

Kachuri

Dhokla

Aloo Bonda

Veg. Cutlet

Chinese Samosa

DESSERTS

GULAB JAMUN

SIZZLING ICE CREAM

PASTRIES

PUDDING

FRUITS


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TEASERS


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DOES UR MOUTH WATER FOR MORE???


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Print ad


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CHAPTER 4

FINANCE


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START UP EXPENSES

PARTICULARS RsMACHINERY

Coffee Grinder 10000

Refrigerator 15000

Microwave oven 10000

Boiler 40000

Water filter 32000

FURNITURE

Tables 50000

Chairs 15000

Sofas 38000

Decoratives 100000

Storage case 60000

OTHER ITEMS

Desktop 35000

Utensils 44000

Air Condition 100000

Books 25000Battery 100000

LCD 80000

Music System 30000

Marketing 60000

Overhead Expenses 16000

License 20000

Security deposit 600000

Cash in hand 520000

Total 2000000


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DEPRICIATION CHART FOR THE 1ST

YEAR:

MACHINERY

REQUIREDCOST OF MACHINERY

(Rs.)

DEPRICIATION RATE

(%)

DEPRICIATION

(Rs.)

Coffee Grinder10,000

20 2,000

Refrigerator15,000

20 3,000

Microwave oven10,000

20 2,000

Boiler 40,00020 8,000

Water filter32,000

20 6,400

FURNITURE

Tables50,000

15 7,500

Chairs15,000

15 2,250

Sofas

38,00015

5,700

Decoratives1,00,000

15 15,000

Storage case60,000

15 9,000

OTHER ITEMS

Desktop35,000

60 21,000

Utensils44,000

10 4,400

Air Condition1,00,000

20 20,000

Books25,000

25 6,250

Battery1,00,000

15 15,000

LCD80,000

60 48,000

Music System30,000

60 18,000

TOTAL OFDEPRICIATION 784000

1,93,500


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DEPRICIATION CHART FOR THE 2ND

YEAR:

MACHINERY


(Rs.)

DEPRICIATION RATE

(%)

DEPRICIATION

(Rs.)

Coffee Grinder 8,000 20 1,600

Refrigerator 12,000 20 2,400

Microwave oven 8,000 20 1,600

Boiler 32,000 20 6,400

Water filter 25,600 20 5,120

FURNITURE - -

Tables 42,500 15 6,375

Chairs 12,750 15 1,913

Sofas 32,300 15 4,845

Decoratives 85,000 15 12,750

Storage case 51,000 15 7,650

OTHER ITEMS - -

Desktop 14,000 60 8,400

Utensils 39,600 10 3,960

Air Condition 80,000 20 16,000

Books 18,750 25 4,688

Battery 85,000 15 12,750

LCD 32,000 60 19,200

Music System 12,000 60 7,200

TOTAL OFDEPRICIATION

590500 1,22,850


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DEPRICIATION CHART FOR THE 3RD

YEAR

MACHINERY


(Rs.)

DEPRICIATION RATE

(%)

DEPRICIATION

(Rs.)

Coffee Grinder 6,400 20 1,280

Refrigerator 9,600 20 1,920

Microwave oven 6,400 20 1,280

Boiler 25,600 20 5,120

Water filter 20,480 20 4,096

FURNITURE - -

Tables 36,125 15 5,419

Chairs 10,838 15 1,626

Sofas 27,455 15 4,118

Decoratives 72,250 15 10,838

Storage case 43,350 15 6,503

OTHER ITEMS - -

Desktop 5,600 60 3,360

Utensils 35,640 10 3,564

Air Condition 64,000 20 12,800

Books 14,063 25 3,516

Battery 72,250 15 10,838

LCD 12,800 60 7,680

Music System 4,800 60 2,880

TOTAL OFDEPRICIATION

4,67,650 86,836


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CAPACITY

In T - 3 there is seating arrangement for 50, however to give it a comfortable and spacious

look we are considering 40 only. Shops timing will be from 10am to 10pm. However we

consider only 10 effective working hours a day. Working of the shop has been taken as 25

days a month considering 5 days as holidays.

Generally one customer spends 45 minutes for refreshment, we have considered 1hr to

decide our capacity. Hence at 100% capacity utilization, capacity of our shop will be as

under:

In a day ...................... 45*10 = 450

In a month ................... 450*25 = 11250

We presume that in first year 50% our capacity will be utilized. Thereafter it will go up by

20% every year.

1ST

Year 50% 225

2ND

Year 60% 270

3RD

Year 80% 360

SALES

As per our survey the customers who comes spends Rs50-100 for their refreshment which

may cover 1 item of snack and either tea or coffee. As our price is based on what customer

would be willing to pay and for premium product, premium price. On an average our cost of

material of beverage as well as snacks will be 20% of our sales price. We are considering our

customers would spend around Rs70 on an average.

Hence sales in 1ST

Year = 225*70*25*12

= 47, 25,000


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Sales Forecast 1st Year 2nd Year 3rd Year

Unit Sales

Tea 18,250.00 24,100.00 33,325.00Other Beverages 20,275.00 27,225.00 38,550.00

Snacks 13,250.00 15,775.00 17,150.00

Deserts 16,625.00 19,350.00 25,800.00

Others 4,145.00 2,750.00 3,850.00

Total Unit Sales 72,545.00 89,200.00 1,18,675.00

Unit Prices (in Rs)

Tea 35.0 40.0 44.5

Other Beverages 75.0 84.0 95.0

Snacks 40.0 43.5 50.0

Deserts 95.0 105.0 116.0

Others 110.0 121.0 135.0

Sales

Tea 6,38,750.0 9,64,000.0 14,82,962.5

Other Beverages 15,20,625.0 22,86,900.0 36,62,250.0

Snacks 5,30,000.0 6,86,212.5 8,57,500.0

Deserts 15,79,375.0 20,31,750.0 29,92,800.0

Others 4,55,950.0 3,32,750.0 5,19,750.0

Total Sales 47,24,700.0 63,01,612.5 95,15,262.5

Direct Unit Costs

Tea 14.0 13.0 12.5

Other Beverages 23.0 22.0 20.8

Snacks 29.0 27.5 26.0

Deserts 38.0 36.5 34.8

Others 47.0 46.0 45.5

Direct Total Cost

Tea 2,55,500.0 3,13,300.0 4,16,562.5

Other Beverages 4,66,325.0 5,98,950.0 7,99,912.5

Snacks 3,84,250.0 4,33,812.5 4,45,900.0

Deserts 6,31,750.0 7,06,275.0 8,96,550.0

Others 1,94,815.0 1,26,500.0 1,75,175.0

Sub Total Direct Cost Of

Sales

19,32,640.0 21,78,837.5 27,34,100.0


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Particulars 1st

Year 2nd

Year 3rd

Year

Sales 47,24,700.00 63,01,612.50 95,15,262.50

Direct Cost of Sales 19,32,640.00 21,78,837.50 27,34,100.00

Other 0 0 0

Total Cost of Sales 19,32,640.00 21,78,837.50 27,34,100.00

Gross Margin 27,92,060.00 41,22,775.00 67,81,162

Expenses:

Wastage 57,979 65,365 82,023

Payroll 11,76,800 12,70,944 13,49,515

Marketing Expenses 6, 00, 000 1, 50, 000 1, 84, 500Rent 7,20,000 7,56,000 7,92,000

Electricity and

Maintenance

5, 40, 000 5, 67, 000 5, 95, 350

Depreciation 1,93,500 1,22,850 86,836

Utilities 62, 000 76, 000 92, 000

Insurance 1, 36, 000 1, 22, 400 1, 10, 160

Total Operating

Expenses

21,48,279 22,15,159 23,10,374

Profit before Interest

and Taxes

6,43,781 19,07,616 44,70,788

Interest on Bank Loan 75,000 37500

Taxes Incurred 187697.73 617138.28 1475360.04

Net Profit 3,81,083 12,52,978 29,95,428

Net Profit/Sales 8.065% 19.88% 31.48%


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Cash Flow 1st

Year 2nd

Year 3rd

YearCash Received:

Cash from OperationsCash Sales

Cash from Receivables

Subtotal from Cash Operations

47,24,700

47,24,700

63,01,612.50

63,01,612.50

95,15,262.50

95,15,262.50

Additional Cash Received

New Current Borrowing

New Other Liabilities (interest-free)

New Long-term Liabilities

New Long-term Liabilities

New Investment Received

Subtotal Cash Received

0

0

0

0

0

47, 24, 700

0

0

0

0

0

63,01,612

0

0

0

0

0

95, 15, 262Expenditures:

Expenditures from Operations

Cash Spending

Payment of Accounts Payable

Subtotal Spent on Operations

71, 000

21, 48, 279

22, 19, 279

1, 10, 000

22, 15, 159

23, 25, 159

1, 40, 000

23, 10, 374

24, 50, 374

Additional Cash Spent

Principal Repayment of Current Borrowing

Other Liabilities Principal Repayment

Long Term Liability Principal Repayment

Purchase of other current AssetsInterest On Loan

Taxes

Subtotal Cash Spent

0

0

2, 50, 000

075, 000

3, 95, 528

29, 39, 807

0

0

2, 50, 000

037, 500

12, 21, 452

35, 46, 611

0

0

0

00

26, 44, 781

50, 95, 155

Net Cash Flow 17, 84, 893 25, 55, 001 44, 20, 107

Cash Balance 23, 04, 893 48, 59, 894 92, 80, 001


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Post Pay-Back Profitability

We have estimated a minimum life of10 years of our project.

Pay Back Period = Investment/Average Annual Cash Flow

= Rs. 20, 00, 000/Rs. 29,20,000

= .70 years

Post Pay-Back Profitability = Annual Cash flow * (Estimated Life Pay Back Period)

= Rs. 29, 20, 000* (10-0.7) years

= Rs. 29, 20, 000 * (9.3) years

\= Rs. 2, 71, 56, 000

The Post Pay-Back Profitability Index Shows that with an Annual Cash Flow of

Rs. 29, 20, 000 the business would generate revenues of Rs. 2, 71, 56, 000 in its estimated

life of 10 years.


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Leverages

Particulars 1st

Year 2nd

Year 3rd

Year

SalesLess: Variable Cost

47,24,700(19,32,640)

63,01,612(21,78,837)

95,15,262(27,34,100)

Contribution

Less: Fixed Cost

Earnings Before Interest & Tax (EBIT)

Less: Interest

Earnings Before Tax (EBT)

Less: Tax (33%)

66,57,340

(25, 11, 800)

41,45,540

75,000

40,70,540

(13,43,278)

84,80,449

(26,31, 444)

58,49,005

37,500

58, 11, 505

(12,21,452)

1,22,49,362

(27,37,765)

95,11,597

95,11,597

(26,44,781)

Earnings After Tax (EAT) 27,27, 262 45,90,053 68,66,816

Type of

Leverage

1st

Year 2nd

Year 3rd

Year

Operating

Leverage

(OL):-Contribution/

EBIT

Financial

Leverage

(FL):-

EBIT/EBT

Combined

Leverage:-

OL * FL

66,57,340/41,45,540

=1.60

41,45,540/40,70,540

=1.01

1.60*1.01

= 1.58

84,80,449/58,49,005

=1.44

58,49,005/58, 11, 505

=1.006

1.44* 1.006

= 1.43

1,22,49,362/95,11,597

=1.28

95,11,597/95,11,597

= 1.00

1.28* 1.00

=1.28


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Annual Fixed Costs

Nature of Cost 1st

Year 2nd

Year 3rd

Year

Rent on Land

Salaries and WagesElectricity and Maintenance

Interest on Bank Loan

7,20,000

11,76, 8005, 40, 000

75,000

7,56, 000

12, 70, 9445, 67, 000

37,500

7,92,900

13, 49, 5155, 95, 350

Total Fixed Costs 25, 11, 800 26,31, 444 27,37,765

Rate of Inflation has been charged at 5% p.a. in case of all fixed overheads

Salary and Wages increase by 8% p.a.

Total Cost

1st

Year 2nd

Year 3rd

Year

Fixed Cost

Variable Cost or Direct Cost

25,11,800

19,32,640

26,31,444

21,78,837

27,37,765

27,34,100

Total Cost 44,44,440 48,10,281 54,71,865

0

1000000

2000000

3000000

4000000

5000000

6000000

7000000

8000000

9000000

10000000

Year 1 Year 2 Year 3

4872000 4976000 5111730

20590252878988

3990788

Break-up of the Total Cost

Variable Cost

Fixed Cost


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BALANCE SHEET

Assets 1st

Year 2nd

Year 3rd

Year

Current Assets

Cash 18,82,934 36,32,954 69,05,722Other Current Assets - - -

Total Current Assets 18,82,934 36,32,954 69,05,722

Fixed Assets

Machinery 1,07,000 85600 68480

(-) Depreciation (21, 400) (17, 120) (13, 696)

85,250 68,480 54,784

Furniture and Fixtures 2,63,000 2,23,550 1,90,018

(-) Depreciation -39,450 -33,533 -28,503

2,63,000 1,90,018 1,61,515

Other items 11,54,000 10,06,650 8,33,148

(-) Depreciation -2,54,350 -1,73,503 -1,29,034

8,99,650 8,33,148 7,04,113

Refundable Deposit 6,00,000 6,00,000 6,00,000

Total Fixed Assets 18,47,900 16,91,645 15,20,412

Total Assets 37,30,834 53,24,599 84,26,134

Liabilities

Current Liabilities

Accounts Payable 0 0 0

Current Borrowing 0 0 0

Other Current Borrowing 0 0 0

Total Current Liabilities 0 0 0

Long Term Liabilities

Loan 5,00,000 2,50,000 0

Total Liabilities 5,00,000 2,50,000 0

Paid In Capital 15,00,000 15,00,000 15,00,000

Retained Earnings 13,49,751 23,21,621 39,30,706

Earnings 3,81,083 12,52,978 29,95,428

Total Capital 32,30,834 50,74,599 84,26,134

Total Liabilities and

Capital

37,30,834 53,24,599 84,26,134


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CHAPTER - 5

HUMAN RESOURCE


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Organizational Chart

The organizational chart of our T 3 :

Type of Organization: Functional Organization

From the above chart we can see that the administrative department will be the most

important, being responsible for the overall management of the organization. All the

departments will be governed by the administration, which in turn would supervise and

govern the workers.


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Partners

No of Partners 5

Total Contributed Capital Rs. 10, 00, 000

Partner 1

Rohit Sanganeria

Contributed Capital Rs. 2, 00, 000

Partner 2

Sumit Gupta


Partner 3

Philip Cyriac


Partner 4

Kunal Kothatri


Partner 5

Praveen Mishra


Bank Loan Rs. 5, 00, 000


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Departments

Stores Department Production Department 1 Finance Department Marketing Department Human Resource Department Operations Department Administrative Department


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Training Procedure and Implementation

The following methods would be followed be T - 3 to impart knowledge and skills amongst

its work force:

Job Rotation would involve the movement of the trainee from one job to another. The

trainee would receive job knowledge and gain experience from his supervisor or trainer in

each of the different job assignments

Coaching the trainee would be placed under a particular supervisor who functions as a

coach in training the individual. The supervisor would provide feedback to the trainee on his

performance and would offer him some suggestions for improvement

Job Instructions the trainee would be provided with different ways of doing the jobs by his

supervisor. The supervisor related to the step by step working of the trainee would provide

him valuable suggestions for improvement.

Lectures the instructor would organize the material and will give it to the group of trainees

in the form of a talk.

Man Power Planning

The man power planning or Human Resource planning is essentially the process of getting the right

number of qualified people into the right job at the right time. The future manpower needs of an

organization are determined by the manpower planning. We will follow a very simple process of

manpower planning and strives to achieve the best possible workforce. The process followed by T - 3

in its manpower planning is as follows: -

Analyze customer level strategies. Demand & Supply forecasting. Estimating the net human resources requirements. Future deficit and surplus are also paid equal attention. Plan for recruitment, development, and other modifications to adjust to the future changes

and requirements.

Management Structure


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Working Hours and Conditions

90-Day Trial Period

1. A new employee must read and sign all appropriate documents relevant to the position

prior to starting work.

2. New employees will serve a 90-day trial period commencing on the first day of work.

3. New employees will be evaluated a minimum of one time in writing within the 90-day

period.

4. A new employee can be dismissed during their trial period or any time thereafter if

judged to be incapable of meeting T - 3s standards.

5. All employees promoted to new positions will begin a 90-day trial period commencing on

the official promotion date. This period does not have a bearing on the employee's existing

benefits package.

Scheduling

Work schedules may vary by department and are set by department supervisors.

Reporting to Work

1. During regular business hours you may enter through those doors assigned to your

particular security clearance.

2. Hourly employees working off-premises will keep accurate record of their time worked on

an approved Weekly Time Sheet. Employees will turn in the time sheet to their immediate

supervisor for approval at the end of each week.

3. When work is available to allow for an employee to make up hours of work missed, it may

be done with a supervisor's permission. The time must be made up within the same pay

week in which time was missed.


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Health Awareness Food Employee Reporting Agreement

The purpose of this agreement is to ensure that Food Employees notify the Manager when

they experience any of the conditions listed so the Manager can take appropriate steps to

prevent the transmission of food borne illness.

Employee agrees to report to the Manager:

Future Symptoms and Lesions including:

Diarrhea Fever Vomiting Jaundice Sore throat with fever Lesion containing pus on the hand, wrist, or an exposed body part (such as boils and

infected wounds, however small)

Future Medical Diagnosis:

Whenever diagnosed as being ill with Typhoid fever (Salmonella typhl), Shigellosis (Shigella

spp.), Shiga toxin-producing Escherichia coli infection (Escherichia coli 0157:H7), or Hepatitis

A (Hepatitis A virus).

Future High-Risk Conditions:

Exposure to or suspicion of causing any confirmed outbreak of Typhoid fever,Shigellosis, Shiga toxin-producing Escherichia coli infection, or Hepatitis A

A household member diagnosed with Typhoid fever, Shigellosis, illness due to Shigatoxin-producing Escherichia coli infection, or Hepatitis A

A household member attending or working in a setting experiencing a confirmedoutbreak of Typhoid fever, Shigellosis, Shiga toxin-producing Escherichia coli

infection, or Hepatitis A


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Employees have read (or had explained to them) and understand the requirements

concerning responsibilities under the FOOD CODE and this agreement to comply with:

Reporting requirements specified above involving symptoms, diagnoses, and high-risk

conditions specified; work restrictions or exclusions that are imposed upon employees; and

good hygienic practices.

Failure to comply with the terms of this agreement could lead to action by T - 3s or the food

regulatory authority that may jeopardize employment and may involve legal action against

the employee.

Overtime and Absenteeism

Overtime

Overtime is paid to hourly employees for any hours worked in excess of 40 in one pay week

at 1 times the regular rate. Holiday hours or vacation hours are not included in the

overtime calculation.

There is no overtime for exempt salaried personnel.

Absenteeism

1 days for every 250 hours/1 month worked apart from the allotted 10 holidays.

A labor having failed to provide any proof of absence or prior notice shall be liable for a

deduction of 7.5% of the basic pay.


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EMPLOYEE RECOGNITION AND PERFORMANCE APPRAISAL

Coverage:

As a permanent employee of T - 3 one will get an opportunity to avail the following Award:

Employee of the quarter Employee of the year

The method employed by T - 3 for performance appraisal is very unique as they provide an

opportunity to all the employees to show their talents. The measures adopted under Employment

Recognition Schemes and Performance appraisals are of two types:

Bonus and incentives. On the basis of total points each employee gets.

Promotions are common in all the firms companies but T - 3 follows a unique method whereby

employees according to their potentialities try to give their best and avail points. At the end of the

year the employee having the highest no. of points gets the highest incentive and others get the

same according to their points.


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Recruitment process

Recruitment is the development and maintenance of adequate manpower resources. It involves the

creation of a pool of available labor from which the organization can draw, when it needs additional

employees. After analyzing the factors and determining the needs in the workforce Recruitment

process comes into being. T - 3 considers the procurement of employees as one of the major

operative functions because according to them the success and failure of the organization depends

upto a large extent on this stage. Recruitment process requires the sources in the beginning: -

Recruitment Policies and Sources

Our policy is to ensure that the recruitment process is as objective as possible. All

candidates are assessed against the same criteria, and every effort is made to give them an

equal opportunity, regardless of nationality or ethnic origin, gender, disabilities, sexual

orientation, belief or creed, age or economic status or any other form of unjustified

discrimination. All posts have a job description and person specification:

The job description describes the overall role and responsibilities of the post. It isexpected that staff give a 100% commitment necessary to ensure total delivery of

the responsibilities.

The person specification identifies the minimum skills, experience and qualificationsneeded by the post holder to carry out the job effectively.

The Application Form

To be completed in full. It is the first stage of the recruitment process. CVs or other

testimonials will not be considered. The information applicants provide on the application

form will be used for short listing for interview stage.

Name and address

It is important that applicants fill in this section accurately and in full. Any section cannot be

left blank.


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Reference

Applicants must give their present or most recent employer as one of their referees. They

will be asked to provide information on their work performance, sickness, attendance and

disciplinary records. A reference from their current employer or most recent employer will

be required before an offer of employment is made.

If you they studying, they should give their tutor as a referee.

Present and Previous Employment

Starting with your current or last employer list all the employers you have worked for;

provide the job title with responsibilities and the period you worked for them. This

information may be used to assess whether you meet the criteria for the post; check the

dates are correct and are in order.

Education and Training

Give a list of all qualifications they possess and training courses they have attended.

Information may be necessary here to assess whether they meet the criteria for the post;

check that the dates are correct and are in order.


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Additional points to be keptin mind.

Applicant form should be completed in concise, well-organized and positive way (use active

words such as I plan/organize etc).

Applicants should do a rough draft first this avoids mistakes and allows them to organize

our application properly.

Applicants should not submit the same application for all jobs look at the requirements

listed in the person specification for this vacancy.

If they require special facilities at their interview (eg a specialty cook) they should complete

the relevant section of the monitoring form. Every effort will be made to meet their needs.

Short Listing

The criteria in the person specification are used to short list applicants for interview. When

completing the application form they must make sure that they indicate how they meet

these criteria.

The criteria may be tested by interview or practical assessment.

The short list panel will decide on the evidence given in the application form which

applicants best meet the criteria. Not all the applicants who meet the minimum criteria are

guaranteed an interview.

Interview Panels

Interview panels consist of two to five people.

Every effort is made to ensure that members of interview panels are not all from one

gender or racial group.

Interviews last approximately 30 minutes.

All candidates are asked the same core questions, with supplementary questions asked by

panel members as they see fit.

Members of the panel will take notes during the interview.


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Practical Assessment/Teaching Assessment

Practical assessment may be used in the following ways:

To help provide additional information about an applicants knowledge, skills or aptitude.

To provide extra information for the final selection process.

Appointments are not made solely on the basis of practical/teaching assessments.

Applicants are given the opportunity to receive feedback on their performance in

assessments.

Other Conditions of Appointment

The decision of the interview panel is made on the basis of information given during the

recruitment process.

All appointments are subject to the receipt of two satisfactory references, medical clearance

by the Lounges occupational health contractor and a satisfactory police check.

New appointees are subject to 3 months probationary period before the appointment is

confirmed.

Sources of Recruitment

Ads in the Newspaper, Radio, Internet and Television Present Employees

Past Employees Friends Rights of Admission (Walk Ins) Employees Exchanges and Banks


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Complaint Procedures

Complaints will be handled in such a way that they enhance working conditions and provide

resolutions to employee problems. The procedures shall be used without fear of reprisal or

employment security.

Employees are encouraged to discuss with management any and all problems that they may

have in connection with their work. Many times their manager may be unaware of certain

problems, and unless they call them to their attention, they may go by unnoticed and

uncorrected. If the situation is not resolved, the employee may contact the District Manager

or Human Resources Department. Note: They should report any incidents of harassment or

discrimination immediately to their General Manager, the District Manager, or the Human

Resources Department.

They may contact the Human Resources Department for any reason via T - 3s telephone

hotline at 9886933108 or via e-mail [email protected]. Both methods of

communication are confidential.

Resignation

Voluntary resignations should be preceded by at least two working week's notice. A

resignation must be in writing with reasons for leaving. Failure to give adequate notice will

impact future considerations for rehire.

Retired Employees immediate supervisor reserves the right to waive the two-week notice,

grant immediate resignation and acknowledge that adequate notice was given. Vacation

time may not be used as part of the two-week notice.

T - 3 may rehire past employees based on previous performance and work history. Rehired

employees will be considered new employees with respect to seniority and benefits

eligibility.
mailto:[email protected]:[email protected]:[email protected]:[email protected]


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Behaviors That Will Result in Disciplinary Action

Failure to comply with any rules, guidelines, or procedures in this section will result in

disciplinary action. The following is a list of behaviors that may not be included in other

sections. These behaviors, if they occur, will result in disciplinary action. This list is not

exhaustive of the types of behavior that may result in disciplinary action, but rather is

provided as a guide to employees to identify areas of concern to management.

Management retains the right to discipline, including dismissal, for any behavior, whether

related to job performance or otherwise, which adversely affects the reputation or business

activities of our tea shop.

1. Criticizing, condemning, or complaining in a manner that affects employee morale

2. Insubordination - refusal to accept a proper job as instructed by your supervisor or failure

to carry out directives of management

3. Violation of Safety or Security Policies

4. Violation of Sanitation Policies

5. Falsification of tea shop records (this includes applications, time clock edits, and work

records)

6. Violation of Unlawful Harassment Policy


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Leave Grant Policy

1. General Provisions

It is the policy of T - 3 to grant up to 12 weeks of family and medical leave during a 12-

month period to eligible employees, in accordance with the Family and Medical Leave Act of

1993 (FMLA). Any questions regarding this policy should be directed to your manager or to

the Human Resources Department.

2. In order to qualify to take family and medical leave under this policy, the employee

must meet all of the following conditions:

a. The employee must have worked for the tea shop at least 12 months, or 52 weeks. The 12

months or 52 weeks need not have been consecutive. For eligibility purposes, an employee

will be considered to have been employed for an entire week, even if the employee was on

the payroll for only part of a week or if the employee is on leave during the week.

b. The employee must have worked at least 1250 hours during the 12-month period

immediately before the date when the leave would begin.

c. The employee must work in an office or work site where 50 or more employees are

employed within 75 miles of that office or work site.

3. In order to qualify for FMLA leave under this policy, the employee must be taking the

leave for one of the reasons listed below:

a. The birth of a child and in order to care for that childb. The placement of a child for adoption or foster care

c. To care for a spouse, child, or parent with a serious health condition (described below)

d. A serious health condition (described below) of the employee

An employee may take leave because of a serious health condition. A serious health

condition is defined as a condition which requires inpatient care at a hospital, Hospice, or

residential medical care facility or a condition which requires continuing care by a licensed

health care provider, as more fully defined in 29 CFR 825.114.


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Employees with questions about what illnesses are covered under this FMLA policy or under

the tea shop's leave policy are encouraged to consult with the Human Resources

Department.

The tea shop may require an employee to provide a doctor's certification of the serious

health condition. The certification process is outlined in "Certification of a Serious Health

Condition."

All leave designated as FMLA leave must meet all the necessary qualifications.

An eligible employee can take up to 12 weeks of leave under this policy during any 12-

month period. The tea shop will measure the 12-month period as a rolling 12-month period

measured forward from the date an employee uses any leave under this policy. Each time

an employee takes leave, the tea shop will compute the amount of leave the employee has

taken under this policy and subtract it from the 12 weeks of available leave. The balance

remaining is the amount the employee is entitled to take at that time.

If a husband and wife both work for the tea shop, and each wishes to take leave for the

birth of a child, adoption or placement of a child in foster care, or to care for a parent (but

not a parent "in-law") with a serious health condition, the husband and wife may only take a

total of 12 weeks of leave.

Any FMLA Leave taken by any employee will be automatically counted toward the 12-week

yearly maximum.

4. Employee Status and Benefits during Leave

While an employee is on leave, and if the employee is eligible to participate in the Health

Care Benefits, the tea shop will continue the eligible employee's health benefits during the

leave period at the same level and under the same conditions as if the employee had

continued to work.


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If the employee chooses not to return to work for reasons other than a continued serious

health condition, the tea shop will require the employee to reimburse the amount it paid for

the employee's health insurance premium during the leave period.

If an employee is unable to return to work after the 12-weeks FMLA leave and has benefits,

the employee may be eligible for COBRA, in which the employee will be responsible for

paying 102 percent of the premium which includes the employee

Documents

project on tea table