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Monthly Expense Breakdown and Market Analysis

This document outlines the expenses, costs, investments, and market potential for a cigarette manufacturing business. It details the monthly costs of goods sold, other expenses like wages, transportation and utilities. It also lists the fixed costs of assets like land, machinery, and office space. The total initial investment is calculated to be over 4.4 billion rupees for 1 year. The market for cigarettes among college students in India is estimated to be over 7 billion rupees yearly. With an expected 10% market share, the yearly and monthly sales projections are over 734 million and 61 million rupees respectively.

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pooniya
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14 views7 pages

Monthly Expense Breakdown and Market Analysis

This document outlines the expenses, costs, investments, and market potential for a cigarette manufacturing business. It details the monthly costs of goods sold, other expenses like wages, transportation and utilities. It also lists the fixed costs of assets like land, machinery, and office space. The total initial investment is calculated to be over 4.4 billion rupees for 1 year. The market for cigarettes among college students in India is estimated to be over 7 billion rupees yearly. With an expected 10% market share, the yearly and monthly sales projections are over 734 million and 61 million rupees respectively.

Uploaded by

pooniya
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd

Expenses

All costs are post tax

Cost of goods sold (Monthly)


Cigarettes
Lighter
Mouth Freshener
Packaging and Assembly

Quanitity
61,209,678.75
6,120,967.88
122,419,357.50
6,120,967.88

Total
Other Montly Expense
Wages and Salary
Transporation
Utility of water and electricity
Misc
Total

Advertisement and Promotion


Activity
Banner
Sponsorships
Outlet Promotion
Total
Fixed Cost
Assembly Plant (in Sq. ft)
Land
Vehicles
Machinery and Equipment
Electricity Installation
Office Space and Other
Installation
Total
Depreciation over period of 10 years
Depreciation per month

Quantity
5000
10
5000

Quantity
5000.00
10000.00
100.00

Cost/Unit (in Rs)


4.20
4.00
0.30
3.80

Cost
11,500,000.00
500,000.00
300,000.00
300,000.00

Total Cost
257,080,650.75
24,483,871.50
36,725,807.25
23,259,677.93

341,550,007.43

Total Cost
11,500,000.00
500,000.00
300,000.00
300,000.00
12,600,000.00

Cost

Total Cost
100.00

Total Initial
Investment

500,000.00

500,000.00

500,000.00

2,000.00

10,000,000.00
11,000,000.00

Cost/Unit (in Rs)


2,000.00
2,000.00
1,000,000.00
55,810,000.00
125,000.00

Total Cost
10,000,000.00
20,000,000.00
100,000,000.00
55,810,000.00
125,000.00

10,000,000.00

10,000,000.00

195,935,000.00

175,935,000.00
14,661,250.00

Total
Investment for
1 year

Requirements per pack


Cigarettes
Lighter
Mouth Freshener
Packaging
Advertisement and promotion cost apportioned to each
Cigarette packet
Montly Expense apportioned to each Cigarette packet
Depreciation apportioned
Total

Fixed Cost+ 3months COGS + 3 months of other monthly


expenses+ Advertisement and promotion

1,269,385,022.28

4,456,735,089.10

Quantity
10
1
20
1

Cost/ Unit (in Rs)


4.20
4.00
0.30
3.80

2.06

1.80
2.40
59.66

Market Estimation
Parameters Used
No. of Colleges in India
No. of students in India
Avg. no. of Students per college
Percentage of Smokers
Per day Consumption
Yearly Market for Cigarettes among
college students in India
Yearly Market Size (By volume)
Monthly Market Size (By Volume)

Data
35,539.00
20,327,000.00
571.00
16-20%
5.57

Sales Expectation
Expected Market Share
Expected yearly sales
Expected Monthly Sales

8%-10%

Vales Used for Calculation


35,539.00
20,327,000.00
571.00
0.18
5.50
7,345,161,450.00
7,345,161,450.00
612,096,787.50

10%
734,516,145.00
61,209,678.75

Description
Cost of Manufacturing
Cost to Distributor
Cost to Wholesaler
Cost to Retailer
Cost to Consumer
Total Revenue
Total investment
Profit
PAT
Total investment
ROI

In Rupee Margin

59.60

86.42

90.74
104.35
120.00

30%
5%
7%
15%

8,814,193,740.00
4,456,735,089.10
4,357,458,650.90
1,307,237,595.27
4,456,735,089.10
0.29

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