We are setting up a Sports Infrastructure. We will be using sport to campaign for girls’ education and public health. Funding required for land & infrastructure setup.
1. Project / Services: Setting up a Sports Complex near Kolkata to conduct competitive sports for school students and contribute integrated development of millions of students.
2. Target market: Over 320 schools in Kolkata have no way to conduct competitive sports (e.g. Annual Sports). On the contrary, students and their parents always aspire to avail such a facility and there is a great demand for this to help develop overall personality of a student.
3. Revenue generation model: Schools will be charged participation fees. It is expected that initially 200 schools will be able to use the facilities round the year contributing revenue of over $ 320 thousands. The earnings will increase in future years by conducting other activities at national level as well.
4. Project justification:
(a) Indian Education Scenario: Present education makes students feel more stressed on mental development and completely rejects physical activities resulting weak body and poor physique. Something is urgently needed to help pull out students out of the doldrums. The situation is particularly grim for girls and under privileged students.
(b) Direct Benefit: Over 320 school students in Kolkata have no way to take part in sports, where they can compete with their peers.
(c) Indirect Benefit: Impact on public health.
5. Progress on the project: So far, land measuring 40,000 square meters near Kolkata has been identified. Recently retired sports instructors from Indian Army been shortlisted and ready for recruitment. Other personnel like bus drivers, ground maintenance staffs, security etc. have been identified. Most of the personnel will be army retried in the age bracket of 35-40 years.
6. Project timelines & Key milestones:
Start: Tue 02 Jun 2014
----- After 12 months-----
Milestone 1: (Mon 01 Jun 2015) - Land purchased, Conversion, & ground preparation completed
-----After 6 months ------
Milestone 2: (Tue 01 Dec 2015)- Infrastructure completed & Man-power Recruited
-----After 6 months ------
Finish: Mon 01Jun 2016
7. Funding needs: Offering to investors: Payback period, ROI etc..
The fund amount shall be used for the following:-
(a) Land and Infrastructure 1st Stage (12 months)
(i) $1.60 million: Purchase of 10 acres of land @ $.16 million per acre
(ii) $0.30 million: For construction of periphery wall, living ccommodation, preparation of ground and remuneration of minimum essential staff.
Sub Total: $1.90 million
(b) 2nd Stage (This fund will be required on completion of 1st stage- 12 months)
(i) $0.30 million: Purchase of eight buses for transportation of students from school to venue and back.
(ii) $1.00 million: Remuneration of staffs and other administrative expenses for two
Sub Total: $1.30 million
Grand Total: $1.90 million +$ 1.30 million+ $ 0.16 (5 % unforeseen) = $3.36 million
(a) Competitive advantage:
Sports infrastructure to conduct sports event for schools students’ in mass in Kolkata is non-existence, except for a very few residential schools at the outskirts of Kolkata, who have their own play grounds. There is no direct or an indirect competitor is in existence at present.
(b) How are you better or different from the competitors?
There is no competitor in the market as on today.
(c) Is your advantage sustainable? Can your success be repeated by the competitors?
Importance of Sports Education is gaining in popularity among students, parents and in now a part of school curriculum. Sports facilities are non-existence in Kolkata schools, not even have a small ground forgetting any sports facilities. High cost and non-availability of land in Kolkata will prevent schools or any organization to build up any such facility. Therefore, repeating this initiative by any competitor will be a remote possibility.
1. What is your opportunity? (in terms of current and future market gaps and demand) ?
(a) The innovative project plans to provide sports facilities of international standards at the door step of over 300 schools in Kolkata. The focus will be in active participation of all students where they compete with their peers. It will impact lifelong learning and contribute to holistic development where students learn key values such as: honesty, teamwork, fair play, respect for themselves and others and adherence to rules.
(b) At present there is no such sports facility in existence in Kolkata. Students need to participate in organized sports and an organization to capture the admiration and trust to motivate them to perform at a higher level not only in sports, but also in their own lives. Demand for sports will only grow in years to come.
2. How are you going to make money out of it ?
It is visualized that initially 200 schools will make use of the facility for 300 days in a year. (Remaining days will be required for maintenance, leaving examination days for students and other administrative requirements). On an average for participation fees of $2000 for each school the total income in first year will be $400000. At least additional 50 schools will participate in the subsequent years, resulting increased revenues as shown in the Table in Financial forecast above.
3. Do you have that other market players are making money from similar opportunities?
This is an innovative project and no other player in existence today.
4. What is your experience in this particular business area?
(a) I have served in Indian Army as a commissioned officer and now a Registrar in a premier management institute in India. I also possess PhD (in management) and an M.Tech from Indian Institute of Technology, Chennai.
(b) In addition I am a sports enthusiastic and have played most of the outdoor games during my service in military and also prior to while studying in residential a school and college.
(c) I was staff officer (training) in Military College (MCTE, Mhow) and was in-charge of sports activities and was associated on various projects during my carrier in military.
5. I therefore request for financial help to avail this business opportunity and also fulfill a social need.
1. How many rounds of financing you envisage?
2. Use of financing (What is the funding needed for?):
Funding is required for purchase of land, building up infrastructure, preparation of ground and payment of salary to staff till the end of 2nd year. The project will commence earning revenue from 3rd year onwards when the facilities could be offered for use.
3. What is your reason to sell/ finance?
The Project will need a very large sum of investment. Nearly 90% of investment will be used in capital investment for purchase of land, procuring a fleet of transport which are unavoidable. The location of the project need to be in a closer vicinity of Kolkata, so that turn around distance could be practical for students to take part in sports events which need to be conducted on the same day. Due to high cost of land financial support is necessary. As the pressure on land is increasing day-by-day the project need to commence soon to acquire land, which has already been identified.
Debt investment is requested. The overall loan amount will be $3.36 million, to be provided in two installments i.e. $1.90 million at the beginning and $1.46 million after 12 months. The payback period will be 10 years at 15% interest per annum.