TOURISM

Introduction to Tourism & Hotel Industry

Tourism is the basic and most desirable human activity deserving the praise and

encouragement of all people and governments transportation them there, housing

feeding and entertaining them upon arrival and returning them to their homes.

A quarter of century ago, pleasure travel was limited for wealthy and

privileged. In India, locations with hat springs or mineral water strongly

recommended for therapeutic value by the early medical profession. Since it is

mainly the rich and the powerful that could seek such advice and follow it.

During the period about the year 1000AD no one traveled for pleasure. Man

traveled to fight in wars or on pilgrimage such holy places as Canterbury or

St.James of composted. Travel facilities were bare minimum from the end of 16 th

century, some growth in private travel took place initially for educational purpose

lived in other places, The scale and mobility introduced by the rail road transformed

tourism from a small business. Catering to the elite into the start of a mass market,

where consumers found a growing and complex number of option.

Thomas cook was the first professional and travel agent in the world, in

1841; he hired a special train to carry 570 passengers on a trip from Leicester to

London and back. This was the first publicly excursion tourism the world. Along

with the railways Trans Atlantic travel become possible in sailing ships running you

schedule around 1820. In 1840, Sir Samuel Canard ran the first regular steaming

service, which later became the canard line for many years. To satisfy the speed in

travel desire of the 20th century, another new contraption called motorcar appeared

on the scene.

The greatest changes after the Second World War was increased mobility.
The development of the jet engines made it possible to fly large number of people,

great distance at high speed. The improvements in air transport not only encouraged

greater Trans continental travel also mere instrumental in explosion of

intercontinental travel in 1960’s and 1970's.

Beginning of the twentieth century started a large movement of travelers to various

sports, around the world, which gave a big boost to tourism. Since the early 1950’s

international tourism has again started growing rapidly particularly after the

liberalization of foreign exchange and travel restrictions introduced in the years

following world war II. Since the beginning of the 1960’s world tourism, as

measured by the international tourist arrivals, has grown at rate of over 6% per year.

In the 60’s the annual rate of growth for tourism was even better and averaged 9%.

Between 1970 and 1980 it became down to 5.6% because of announcement of Arab

countries in 1973 to increase prices of oil. A marginal decline was registered in

1982. The total world tourist arrives reached all time high at 415 million in 1990.

The rate of expansion was not uniform but the percentage of tourist expenditure was

always higher than the percentage of increase.

Hotel Industry and Tourism

Hotels have been important element in the economy of many countries. The

enormous increase in the tourism of the 20 th century has caused the hotel business to

out grow national bound wire and become global in character. Hotels are directly

linked to and are integrals part of many other economic activities. In

Particular the relationship between tourism and hotels in very crucial in a proper

understanding of the role of hotels in the process of economic development of a

country. Hotel said “No hotels no Tourism” in two ways. Between hotel and tourism
can be expressed.

01.Hotel industry provides the basic ingredients of the total supply of tourism

sector.

02.Bulk of business demand of hotel industry comes from tourism.

Thus hotel industry pays a very pivotal role in tourism and has a

tremendous potentiality for earning foreign exchanges, yielding tax revenues,

providing employment and promoting ancillary industries, linked with it.

HOTEL INDUSTRY IN INDIA

Unlike the west, the Indian hotel industry evolved itself as snail pave. The real

beginning was made in 1900’s. As per the Indian hotel Industry, is

concerned there are basically four group of hotel, namely:

 The Ashoka Group - Indian Tourism Development Corporation

 The Welcome Group - Indian Tobacco Company

 The Taj Group Of Hotels - Tata Groups Limited

 Oberoi Group Of Hotels - East India Company Limited

ITDC was establish in 1966. As autonomies public sector Corporation, ITDC

was entrusted with the task of helping development and infrastructure with in India’s

tourist destination. Over 6000 rooms are scattered throughout India and it runs tax-
free shop in New Delhi, duty free shops at major internationals Indian Airports like

Delhi, Bombay, Chennai, Calcutta, etc.

ITC and Welcome groups has 22 hotels resort center in business center

interest across India and it offers visitors the widest spread of any private sector hotel

chain in the country. Welcome group has marketing and reservation agreement with

Sheratons for its three hotels in New Delhi. Agra and Chennai, which have added

Sheratons name to their own.

Tourism In India

India’s glorious tradition and rich cultural heritage are linked with the

development of tourism. Its magnificent monument attracts large number of visitors

from all over the world. Besides, its culture heritage, India also occupies a unique

geographical position. India has exceptionally varied climate ranging from extreme

cold in high attitudes to the hot summer in the plains. The wealth of culture tradition

extending over thousands of years, the natural surroundings, the architectural master

pieces, the music, dance, paintings, customs and languages all these go to make

India a tourist paradise. Few countries in the world provide such varied interest to

visitor. History has been equally generous in bequeathing treasure of moments.

The world famous Ajanta and Ellora.

In the words of Mark Twain India is “the one country under the sun

that is endowed with an imperishable interest for alien price and alien peasant, for

lettered and ignorant, wise and fool, rich and poor, bonded and free and a land that

all man desire to have seen and having seen once by even a glimpse would not give
that glimpse for the shows of all the globe combined”.

With the opening of the various land and sea routes, the early

travelers came to India from distant lands in search of knowledge, adventure, trade

and commerce. Travelers have been visiting India mostly in search of fortune.

India is the second most populated and sixth largest country in the

world lying in the Northern Hemisphere. It is spread over an area of 38,87,000 sq.

km and stretches from 8.5 to 37.6 northern latitudes and 68.72 to 97.22 longitude

and it’s spanning over 5,000 years of history has much offer to the tourism world.

Tourism needs variety and India with its vast dimension and

diversity offers to every class of visitors something not found elsewhere, from snake

charmer to the eternal snow capped of Himalayas and from folk dances to big game

hills. Tourism is travel, relaxation, a holiday and exposure of other culture India has

Fantastically rich and varied tourist paradise which have least of almost everything

but manage to get more tourist than India.

Growth of Tourism In India:

International tourism to India has a phenomenal growth since

independence and better than India increased from 18,829 in 1950 to 13,29,950 in

1990. The growth has not uniform. The Indo-Pak war in 1971 brought the traffic to

a start still it improved again after the war till flare up in Iran followed by

international recession, which reduced tourism growth to mere 2.2% in 1979.During

the 80’s the growth coverage was 3 to 5%. In 1986, the foreign tourist arrival was

1.33 million and it reached to 1.4 million by 1989. The number of tourists who

Visited India in 1992 were 1.67 millions excluding the nations of Pakistan and

Bangladesh registering a decline of about 5% over 1989.

 India received 3% of the world “tourists in 1992. 80% of number on to

receive the largest tourist in the world. Millions of tourists do not visit India because

of non-availability of facilities, which they enjoy in Europe and other developed

countries.

Foreign Tourist Arrivals in India

Month 2005 2006 2007 % %

(2005/06) (2006/07)
January 386260 444753 15.5
February 389081 428325 10.9
March 367068 407446 11.0
April 260825 325449 24.7
May 229172 262860 14.7
June 258822 286257 10.6
July 292345 331227 13.3
August 292345 331227 13.3
September 257184 281102 9.3
October 347757 394009 13.3
November 423837 472155 11.4
December 479411 547488 14.2
Total 3918610 4429915 13.0

Foreign Exchange Earning During 2005/06/07 Years Respectively

Year In Crores % In US %

(Rs.) Change ($) Change

2005 9982.68 2285.53
2006 11593.7 16.1 2616.24 14.5

2
2007 13302.1 14.7 3071.34 17.4

1
Estimated Arrivals of Tourists

Year No. In Millions Foreign Exchange

2001 6520100 1330.37
2002 7025000 1662.96
2003 8179250 2078.70
2004 9333500 2494.44
2005 10487756 2910.18
2006 11067200 3210.41
2007 11646650 3680.11
2008 12326100 4099.99

Chapter 2

Objective, Scope, Methodology and Limitations

Objective

• To analyze the existing hotels in Mumbai and to assess the

market feasibility of the hotel.

• To estimate the demand for a new five star hotel.

• To decide the location and technical aspects of a new hotel.

• To estimate the manpower requirement of the proposed hotel.

 Scope

The survey was conducted to study about the existing Five start hotels in

Mumbai city also to study about the facilities the clientele would require as such the

facilities like banquet, conference halls, business centre and so on. To know which

types of clientele the hotel is concentrating on for example business class, travellers,

tourists etc. This survey covers good and important Five star hotels in Mumbai city

and their features, for example:

• The type of clientele

• The type of facilities

• The tariff structure

• The occupancy

• And also Unique Selling Proposition (USP) of individual hotels

METHODOLOGY ADOPTED FOR STUDY

The methodology adopted is shown diagrammatically below:

Collection and review of

existing data regarding Field Survey

Tourism and hotel industry Operations

Macro level analysis Evaluation of existing

of data market conditions

Forecast of future development

 Tourism infrastructure

Demand Analysis

Feasibility Design

Location Hotel Design Pricing Strategy Promotional Strategy

Details and relevant data pertaining to the study were obtained through two

kinds of sources – Primary and Secondary.

PRIMARY DATA

This data is obtained directly with the help of questionnaires discussed with

the concerned people during the field work. This is collected first hand during the job

training, personal interviews and interaction with the stuff. A structured questionnaire

designed for the purpose securing first hand information for existing hotels is

furnished in the annexure.

SECONDARY DATA
 Necessary data was obtained from various published sources like books,

journals, newspapers, brochures, leaflets and magazines collected during the survey.

Also data published by the Chamber of Commerce was quite useful.

LIMITATIONS

The following are the limitations of the study conducted:

 The financial aspect was not included under the scope of the study.

 Due to time constraints, a few hotels were selected on a sample basis to secure

the information of the existing hotels.

 About 50% of hoteliers were found to be reluctant to provide sufficient

information, especially those related to sales and profit.

 The government officials non co – operative in extending reliable and accurate

data.

 The findings of this study have relevance to the time frame when the study
was conducted.
 Methodology

1. The study is based upon primary and secondary data

a. Primary data

Obtained by surveying the hotels in Mumbai city

b. Secondary data

i. Obtained by referring books and information obtained from the

faculty guide

c. To analyze the existing market situation within the help of a few

derived formulas
 CHAPTAR - 3

PROFILE OF PLACE

“MAHARASHTRA”

The name Maharashtra means the 'The Great State' or 'Great

Nation'. The name is said to have been originated probably from ‘rathi’, which

means 'Chariot driver', referring to drivers and builders of chariots who were known

as 'maharathis' or 'Fighting Force'. Maharashtra gets its name aptly, because it is the

largest states in India, both in terms of area as well as population. Maharashtra

spans 308000 km² with a population over 78,937,000 and the state language being

Marathi.

Geographic profile

Located in the north centre of Peninsular India, with a command of the

Arabian Sea through its port of Mumbai, Maharashtra has a remarkable physical

homogeneity, enforced by its underlying geology. The Sahyadri Range is the

physical backbone of Maharashtra. Rising on an average to an elevation of 1000m.

It falls in steep cliffs, to the Konkan on the west. Eastwards, the hill country falls in

steps through a transitional area known as Mawal to the plateau level. The Konkan,

lying between the Arabian Sea and the Sahyadri Range is narrow coastal lowland,

barely 50 km. wide. Though mostly below 200 m., it is far from being a plain

country. Highly dissected and broken, the Konkan alternates between narrow, steep-

sided valleys and low laterite plateaux. The Satpudas, hills along the northern

border, and the Bhamragad-Chiroli-Gaikhuri Ranges on the eastern border form

physical barriers preventing easy movement, but also serve as natural limits to the

state.

Except around Mumbai, and along the eastern limits, the State of Maharashtra

presents a monotonously uniform, flat-topped skyline. The state area, barring the

extreme eastern Vidarbha region, parts of Kolhapur and Sindhudurg, is practically

co-terminus with the Deccan Traps. The State of Maharashtra has rivers such as the

Krishna, Bhima, Godavari, Tapi-Purna and Wardha-Wainganga River. The state

enjoys a tropical monsoon climate; the hot scorching summer from March onwards

yields to the rainy monsoon in early June. The rich green cover of the monsoon

season persists during the mild winter that follows through an unpleasant October

transition, but turns into a dusty, barren brown as the summer sets in again. The

seasonal rains from the western sea-clouds are very heavy and the rainfall is over

400 cm., on the Sahyadrian crests. The Konkan on the windward side is also

endowed with heavy rainfall, declining northwards. East of the Sahyadri, the rainfall

diminishes to a meagre 70 cm. in the western plateau districts, with Solapur-

Ahmednagar lying in the heart of the dry zone. The rains increase slightly, later in

the season, eastwards in the Marathwada and Vidarbha regions.

Forests comprising only 17% of the state area covers the eastern region and the

Sahyadri Range, while open scrub jungle dots the plateaux. The soils of

Maharashtra are residual, derived from the underlying basalts. In the semi-dry

plateau, the regur (black-cotton soil) is clayey, rich in iron, but poor in nitrogen and

organic matter; it is moisture-retentive. Where redeposit along the river valleys,

those kali soils are deeper and heavier, better suited for Rabi crops. Farther away,
with a better mixture of lime, the morand soils form the ideal Kharif zone. The

higher plateau areas have pather soils, which contain more gravel. In the rainy

Konkan, and the Sahyadri Range, the same basalts give rise to the brick-red laterites

productive under a forest-cover, but readily stripped into a sterile varkas when the

vegetation is removed. By and large, soils of Maharashtra are shallow and

somewhat poor

Water is the most precious natural resource of the state, greatly in

the demand, and most unevenly distributed. A large number of villages lack

drinking water, especially during the summer months, even in the wet Konkan.

Barely 11% of the net sown area is irrigated. Perched water tables in the basalt

aquifers have contributed to increased well irrigation, which accounts for

approximately 55% of the irrigable water. The granitic-gneissic terrain in the

eastern hilly area of Vidarbha accounts for all tank irrigation. Tube-wells in the

Tapi-Purna alluvium and shallow wells in the coastal sands are the other main

sources of water.

History

Shahaji's son, Shivaji, born at the Shivneri fort on February 19, 1630, was the

creator of the Maratha nation. He united the Maratha chiefs from Maval, Konkan

and Desh regions and carved out a small kingdom by defeating the alien powers. He

stabilised the state with effective civil and military administration and adopted a

policy of religious tolerance to accommodate all religions and sects in his state. He

was the first Maratha Chhatrapati (ruler) to start the Raj Shaka (royal era) and issue
the gold coin, shivarai hon - on the occasion of his coronation (1674). His premature

death at the age of 50 (April 5, 1680) created a vacuum.

Shivaji's son, Sambhaji (1657-1689), during his short reign of nine years, in addition

to domestic feuds, was confronted with the Siddis, the Portuguese and the Mughals.

His cold-blooded murder (1689) by the Mughals inspired a wave of patriotism in the

Maratha region, and the Marathas, under the leadership of his brother, Rajaram

(1670-1700), waged a War of Independence against the imperial army of

Aurangazeb who, until his death (1707), struggled in vain to eradicate Maratha

power.

Historians regard Bajirao I the founder of Greater Maharashtra, because it was

under his reign that Maharashtra became the centre of Indian politics. During his

short career, he established Marathi supremacy in the Deccan and political

hegemony in the North. His son, Balaji (1740-1761) succeeded him and expanded

the Maratha borders to Attack (Punjab). The Peshwas thus became the de facto

rulers of Maharashtra, and Pune became the centre of Maratha politics. The tragic

disaster of the Marathas at Panipat (1761) at the hands of the Afghan ruler, Abdali,

temporarily weakened their power but did not destroy it. Madhavrao I (1761-1772),

a noble Peshwa, restored Maratha prestige by defeating the enemies and introducing

efficient administration. His premature death was a great destabiliser of Maratha

power. Grant Duff says, "The plains of Panipat were not more fatal to the Maratha

Empire than the early end of this excellent prince."

The domestic feuds that ensued led to the murder of the next Peshwa leader,

Narayanrao (1773), whose posthumous child, Madhavrao II (1773-1795), managed

the affairs of state with the help of the Barbhai council, of which Nana Phadnis and
Mahadji Shinde were prominent members. Power thus shifted from the Peshwas to

the Karbharis (managers). The English gradually began to intrude into Maratha

territory. They were humbled in 1781, but the last Peshwa, Bajirao II (1795-1818)

succumbed, and surrendered power in 1818. Mountstuart Elphinstone, the liquidator

of Maratha power, then created a Maratha state at Satara by installing Pratap Singh

(1793-1847), a descendant of Shahu, on the throne as Raja to win the sympathies of

the Marathas. He was deposed in 1839, and his brother Shahaji became Raja. The

state lapsed to the English in 1849. Thus the hegemony of the Marathas-who had

dominated the political scene of Indian history for over two centuries-came to an

end.

Land of Maharashtra

Maharashtra means the land of Marathi speaking people. The

word Maharashtra has been derived from Maharashtri, an old form of Prakrit. It is

located in the north center of Peninsular India. Maharashtra is surrounded by the

Arabian Sea in the west and by Gujarat and Madhya Pradesh on the north. Madhya

Pradesh also encircles it in the east and by Karnataka and Andhra Pradesh on the

south.

Maharashtra's physical features are quite homogeneous. But a plateau dominates the

landscape of this state. The western side of this plateau rises up to form the Sahyadri

Range and it declines gently towards the east and southeast. The major rivers and

their master tributaries, into alternating broad-river valleys, have carved the plateau.

They have also formed the Ahmednagar, Buldana, and Yavatmal plateaux.
Geographical Features

The Sahyadri Range is the highlight of the landscape of Maharashtra. This range is

the physical backbone of the state. The average height of the range is around

1000m. Near the Konkan, the range falls to a steep cliff, on the west. There is a

transitional area towards the east, where the hill country falls in steps. This area is

known as Mawal to the plateau level.

The region between the Arabian Sea and the Sahyadri Range is called the Konkan. It

is narrow coastal lowland, hardly 50 km. wide. The average height of Konkan is

mostly below 200 m. The landscape here is very uneven. Konkan alternates between

narrow, steep-sided valleys and low laterite plateaux.

The Satpuda hills are covered with dense forests. These hill forests are the major

feature of Maharashtra. It is situated along the northern border of the state. The

Satpuda hills and the Bhamragad-Chiroli-Gaikhuri Ranges on the eastern border of

the state form physical barriers preventing easy movement and also form the natural

border of the state.

Geology and Topography

The landscape of the state is quite uniform and monotonous, except the areas

around Mumbai and along the eastern limits of Maharashtra. The geological

structure of the state has given way to its topography. The Deccan trap meets the

state area, except for the extreme eastern Vidarbha region and parts of Kolhapur and

Sindhudurg. Around 60 to 90 yeas ago, the basic lava coming out of the fissures

formed the basalt area. These are now found in the form of massive, well-jointed

steel gray cliff due to the variation in their composition and structure. The cliffs are
found facing the alternate structural beaches of vesicular amygdaloid lava and ash

layers. All these features contribute to the pyramid-shaped hills and crest-level

plateau or mesas.

The rivers of state, Krishna, Bhima, Godavari, Tapi-Purna and Wardha-Wainganga

have divided it into broad, open river valleys and alternating plateaux, that helps in

the formation of the Sahyadri hills. The waterfalls of the Konkan are hardly a 100

km. long, rushing down as roaring streams. These streams flow in deeply

established valleys that end up as tidal estuaries.

Climate

Maharashtra experiences tropical monsoon climate. The state faces extremely hot

summers from March onwards till the starting of the rainy season in early June. The

lush greenery is the result of monsoon season, which persists during the following

mild winters. The state enjoys mild winters and but the season changing month of

October is very unpleasant.

The Sahyadri hills receive a heavy rainfall of 400 cm due to the seasonal rains from

the western sea-clouds. The Konkan region is also receives torrential rainfall. At the

eastern side of the Sahyadri, the rainfall diminishes with the area receiving just 70

cm. of rainfall. The Solapur-Ahmednagar lies in the heart of the dry zone. But later

in the season, the rainfall increases towards the eastwards in the Marathwada and

Vidarbha regions. The unpredictable monsoon, some times results in short spells of

rainy weather, long dry breaks, floods and droughts making life a little difficult

here.
Flora And Fauna

The flora and fauna of Maharashtra is quite diverse. The varied climate and

topography has resulted in rich vegetation and a good animal population. The land

of Maharashtra has arid desert, tropical rain forest and mountain range with a height

of 4000 feet. 17 % of Maharashtra's land is covered with thick virgin forests. The

forests found here is mainly evergreen deciduous type. Majority of the forests are in

the eastern and Sahyadri regions of the state. Maharashtra has five national parks,

three game reserves, and 24 wildlife/bird sanctuaries. Here many different kinds of

animals are found like tigers, panthers, bison, deer and antelopes, wild boars, bears

and blue bull.

Tourism place of Maharashtra

Ajanta & Ellora Caves

One of the most outstanding specimens of ancient Indian heritage is the

Ajanta & Ellora group of caves. Maharashtra state treasures this mesmerizing caves,

which were accidentally discovered in the 19th century by the British. Ellora houses

34 cave while Ajanta houses 29 caves. Each cave depicting a tale from the Jatakas

or depicting stories of Buddhism, Jainism and Hinduism.

Elephanta Caves

The Elephanta Island is known for its great cave shrine, excavated in the 6th

century. The island lies 10 km northeast to Apollo Bunder or Gateway of India. The

island, which was known as Gharapuri earlier, is the glorious abode of Lord Shiva.

This is land was renamed, Elephanta by the Portuguese who landed here, after the
majestic carved elephant on this island

Murud Janjira

Sea Forts like the Siddi fort of Murud Janjira and Jaigad near

Ganpatipule, the famous pilgrimage place belongs to the Maratha period. Many

other prominent forts of the Maratha period still exist- Panhala, Purandhar where

Baji Prabhu laid down his life holding back the forces of Siddi Johar at a narrow

pass, since christened Pavankhind, and Lohagad

Lonavala and Khandala

On the way to Pune from Mumbai come the two pleasant hill

stations of Maharashtra, Lonavala and Khandala. Set at a height of 625 m they are

located on the western slopes of the Sahyadri mountain range. The two hill stations

are 5 kms apart. Fascinating panoramic beauty adorns these places. Khandala being

the smaller of the two is relatively calmer. The lush greenery of the mountains

especially during the monsoons and the misty paths attract tourist like honeybees

here. The silver waterfalls amidst the lush greenery are extremely magical.

Lonavala's bazaar is filled with surprises. The beauty of this place is a refreshing

experience

Bassein Fort

Located just 55 kms. (A 90 min. journey) away from Bombay, is Bassein,

one of the most important sea forts of Maharashtra? The last bastion of the first sea-

faring foreign power in India, the Portuguese. Built by Bahadur Shah -Sultan of

Gujarat from 1526-1537, it was initially one of a chain of forts intended to guard the
coasts against the Portuguese and pirates. The Portuguese however captured it and

remodelled the fort, building a citadel inside

Raigad

Raigad also known, as Durgadeshwar is the lord of all the 360 odd forts in the state

of Maharashtra. Now you may wonder why is Raigad the king of all forts - but there

is a very good reason behind Raigad being crowned thus. It is because Chhatrapati

Shivaji Maharaj, who roused the patriotic fervour by his guru mantra, Hindavi

Swaraj, which later became his war cry, chose this fort as his capital. The fort was

originally named Raigiri. It was renamed Raigad by Shivaji who was coronated on

June 6, 1674

Matheran

This place was discovered in 1850 and due to its greenery & shade it was

immediately taken as the nearest hill station from Mumbai. Matheran is sightly

above the plains so it is cool and provides respite from the heat of Mumbai. The

place provides very nice views of the near by places, particularly on a clear day one

can even see Mumbai from the Hart point. Though the local population of Matheran

is very less but the visitors pour at this place frequently. Matheran has maintained

the tranquility and peace by banning any kind of motor vehicle. The best season to

visit this place is between Novembers to June but the place is worth visiting any

time of the year. During the monsoon the trails become very dirty and the place

virtually shuts down season to visit this place is between Novembers to June but the

place is worth visiting any time of the year. During the monsoon the trails become

very dirty and the place virtually shuts down.

Panchagani

Situated at an altitude of 1334 mts it lies just 38 m below Mahabaleshwar.

It gets name from the 5 hills around it. The way to Panchgani from Mahabaleshwar,

which is 18 kms, is absolutely spectacular. The Krishna River that meanders

through the farms, ravines and hamlets on one side and the coastal plains on the

other side has a mesmeric charm. Panchgani has been a retreat for a long time. It

displays architecture of Old British building. Parsi houses and the boarding school

which would be almost a century old.

Sinhagad Fort

Sinhagad is one of the important Maratha forts having a colourful history

linked with it. A history that echoes with the bravery of the Maratha conquest of

Kondana fort by Tanaji Malasure. Today. 24 kms. South-west of Pune, battle-

scarred, it rises intimidating, amidst the Bhuleshwar range

PROFILE OF “MUMBAI”
 Ancient History of Mumbai

Ancient yet modern, fabulously rich yet achingly poor.

The city of Bombay originally consisted of seven islands, namely Colaba,

Mazagaon, Old Woman's Island, Wadala, Mahim, Parel, and Matunga-Sion. This

group of islands, which have since been joined together by a series of reclamations,

formed part of the kingdom of Ashoka, the famous Emperor of India.

After his death, these islands passed into the hands of various Hindu rulers until

1343. In that year, the Mohammedans of Gujerat took possession and the Kings of

that province of India ruled for the next two centuries. The only vestige (mark) of

their dominion over these islands that remains today is the mosque at Mahim.

In 1534 the Portuguese, who already possessed many important trading centers on

the western coast, such as Panjim, Daman, and Diu, took Bombay by force of arms

from the Mohammedans. This led to the establishment of numerous churches, which

were constructed in areas where the majority of people were Roman Catholics.

There used to be two areas in Bombay called "Portuguese Church". However, only

one church with Portuguese-style facade still remains; it is the St. Andrew's church

at Bandra. The Portuguese also fortified their possession by building forts at Sion,

Mahim, Bandra, and Bassien, which, although in disrepair, can still be seen. They

named their new possession as "Bom Baia" which in Portuguese means "Good

Bay".

A hundred and twenty-eight years later the islands were given to the English King

Charles II in dowry on his marriage to Portuguese Princess Catherine of Braganza in

1662. In the year 1668 the islands were acquired by the English East India Company

on lease from the crown for an annual sum of 10 pounds in gold; so little did the

British value these islands at that time. The Company, which was operating from

Surat, was in search for another deeper water port so that larger vessels could dock,

and found the islands of Bombay suitable for development. The shifting of the East

India Company's headquarters to Bombay in 1687 led to the eclipse of Surat as a

principal trading center. The British corrupted the Portuguese name "Bom Baia" to

"Bombay". The Kolis used to call the islands "Mumba" after Mumbadevi, the Hindu

deity to whom a temple is dedicated at Babulnath near Chowpatty's sandy beaches.

The first Parsi to arrive in Bombay was Dorabji Nanabhoy Patel in 1640. The Parsis,

originally from Iran, migrated to India about 900 years ago. This they did to save

their religion, Zoroastrianism, from invading Arabs who proselytized Islam.

However, in 1689-90, when a severe plague had struck down most of the

Europeans, the Siddi Chief of Janjira made several attempts to re-possess the islands

by force, but the son of the former, a trader named Rustomji Dorabji Patel (1667-

1763), successfully warded off the attacks on behalf of the British with the help of

the 'Kolis', the original fisher-folk inhabitants of these islands. The remnants of the

Koli settlements can still be seen at Backbay reclamation, Mahim, Bandra, Khar,

Bassien and Madh Island.

Sir George Oxenden became the first British Governor of the islands, and was

succeeded later by Mr. Gerald Aungier who made Bombay more populous by

attracting Gujerati traders, Parsi ship-builders, and Muslim and Hindu

manufacturers from the mainland. He fortified defenses by constructing the Bombay

Castle (the Fort, since then vanished except for a small portion of the wall) and
provided stability by constituting courts of law.

Between 1822 and 1838, cattle from the congested fort area used to graze freely at

the Camp Maidan (now called Azad Maidan), an open ground opposite the Victoria

Terminus. In 1838, the British rulers introduced a 'grazing fee’, which several cattle-

owners could not afford. Therefore, Sir Jamshedji Jeejeebhoy spent Rs. 20,000 from

his own purse for purchasing some grassland near the seafront at Thakurdwar and

saw that the starving cattle grazed without a fee in that area. In time the area became

to be known as "Charni" meaning grazing. When a railway station on the BB&CI

railway was constructed there it was called Charni Road.

Seth Modi Hirji Vachha built the Zoroastrian Towers of Silence on Malabar hill in

1672. The Zoroastrians believe in venerating the earth, fire, and water and hence

they prefer to expose their dead to the elements and flesh-eating birds within the

confines of the Towers of Silence. Seth Vachha also built the first fire-temple in the

same year opposite his residence at Modikhana within the British fort. Both of the

structures can still be seen today although they have been expanded and

strengthened.

The inroads of the sea at Worli, Mahim, and Mahalaxmi turned the ground between

the islands into swamps making Bombay an extremely unhealthy place at that time.

Many commuters going to the Fort by boat between islands lost their lives when

there was a storm during the monsoons (July to September). During the next 40

years much was done to improve matters. Reclamation work to stop the breeches at

Mahalaxmi and Worli were undertaken. The Hornby Vellard was completed in

1784, during the Governorship of Mr. Hornby. In 1803 Bombay was connected with

Salsette by a causeway at Sion. The island of Colaba was joined to Bombay in 1838
by a causeway now called Colaba Causeway and the Causeway connecting Mahim

and Bandra was completed in 1845 at the total cost of Rs.1, 57,000 donated entirely

by Lady Avabai Jamsetjee Jeejeebhoy, wife of the first baronet Sir Jamsetjee

Jeejeebhoy with a stipulation that no toll would be charged to citizens for its use by

the government. Initially the cost was estimated at Rs.100, 000 but as the work

commenced in 1842 the cost escalated. When the initial sum was exhausted and

work about to stop Lady Jeejeebhoy once again dipped in to her personal purse with

a second donation to the treasury of Rs.57, 000.

Sir Robert Grant (1779-1838) governed Bombay from 1835 to 1838 and was

responsible for the construction of a number of roads between Bombay and the

hinterland. The Thana and Colaba Causeways were built during his tenure as well as

the Grant Medical College attached to the Sir Jamshedji Jeejeebhoy (J.J.) Group of

hospitals.

On Saturday 16th of April, 1853 a 21-mile long railway line, the first in India,

between Bombay's Victoria Terminus and Thana was opened. The Great Indian

Peninsular (GIP) and the Bombay Baroda and Central India (BB&CI) Railway were

started in 1860 and a regular service of steamers on the west coast was commenced

in 1869. Also during this period Bombay enjoyed great economic wealth. Raw

cotton from Gujerat was shipped to Lancashire in England through Bombay port,

and after being spun and woven into cloth, returned to be sold in the Indian market.

The outbreak of the American Civil War in 1861 increased the demand for cotton in

the West and several personal fortunes were made during this period from the

resulting trade. The opening of the Suez Canal in 1869 brought the West closer to
Bombay, and as the city became more prosperous; many schemes were launched for

reclaiming additional land and building more roads and wharves. Bombay began to

attract fortune hunters by the hundreds and the population had swelled from 13,726

in 1780 to 644,405 in 1872, in a little less than a hundred years. By 1906 the

population of Bombay was to become 977,822.

In 1858, following the First War of Independence (the British called it the "Sepoy

Mutiny") of 1857 in which the Rani of Jhansi and her infant son strapped on her

back were killed, the East India Company was accused of mismanagement and the

islands reverted to the British Crown. In 1862 Sir Baartle Frere was appointed

Governor, an office that he held until 1867. By 1862 the town had spread over the

lands reclaimed through constructions of causeways and it is from this date we have

the rise of the modern city of Bombay. In 1864 a fountain was to be erected in his

honour at the Victoria Gardens by the Agri-Horticultural Society of Western India.

Somehow, the plans were changed at the last moment and the fountain, named after

the Greek goddess Flora, was placed in the centre of the city on what used be known

as Hornby Road. Unfortunately, no plaque was placed on the fountain to

commemorate the name of Governor in whose memory it was supposed to have

been erected.

Around 1860 the piped water supply from Tulsi and Vehar lakes (and later Tansa)

was inaugurated. One reform, which met with much superstitious opposition, before

it was implemented, was the sealing and banning the use of water from open wells

and tanks that bred mosquitoes. A good drainage system was also constructed at the

same time. However, several decades later, the same wells were to serve Bombay by
providing non-potable water to supplement the same from the lakes. This was true

especially during those years when the monsoons failed to provide sufficient water

in the catchment areas of the lakes. However, well water is now used all over the

city to supplement the water received from the lakes.

The later half of the 19th century was also to see a feverish construction of buildings

in Bombay, many of which such as, the Victoria Terminus, the General Post Office,

Municipal Corporation, the Prince of Wales Museum, Rajabai Tower and Bombay

University, Elphinstone College and the Cawasji Jehangir Hall, the Crawford

Market, the Old Secretariat (Old Customs House) and the Public Works Department

(PWD) Building, still stand today as major landmarks. The Gateway of India was

built to commemorate the visit of king George V and Queen Mary for the Darbar at

Delhi in 1911.

The docks at Bombay are a monument of the industry, enterprise and integrity of the

Wadia family, which moved in from Surat at the instigation of the British. In 1870

the Bombay Port Trust was formed. In 1872, Jamshedji Wadia, a master ship-

builder constructed the "Cornwalis", a frigate of 50 guns, for the East India

Company, a success which led to several orders from the British Navy. In all the

Wadias, between 1735-1863 built 170 war vessels for the Company, 34 man-of-war

for the British Navy, 87 merchant vessels for private firms, and three vessels for the

Queen of Muscat at Bombay docks.

The Princess Dock was built in the year 1885 and the Victoria Dock and the

Mereweather Dry Docks in 1891. Alexandra Dock was completed in 1914. The

closing years of the 19th Century were tragic for Bombay as the bubonic plague
caused great destruction of human life once more. One significant result of the

plague was the creation of the City Improvement Trust, which in later years

encouraged the development of the suburbs for residential purposes to remove the

congestion in the city.

As Bombay's superintendent of police in 1885, Charles Forjett was a favourite of

the Indian people. Many wept openly when he returned to England. He sacked

British constables who unduly harassed the locals and cracked down on the Parsi

mafia, which was involved in the liquor business in the Falkland Road area, which

included the famous "Play House" which the locals corrupted to "pillhouse". The

"Pillhouse" area would acquire notoriety in later years as the infamous "cages" area

housing Bombay's infamous red-light district.

Lord Sandhurst governed Bombay between 1895 and 1900 and it was during his

tenure that the Act was passed which constituted the City Improvement Trust,

which, among other things, built the Sandhurst Road in 1910 and handed it over to

the municipality. The Sandhurst Road railway station (upper level) was built in

1921.

As a result of a mysterious fire which started in one of its holds, on a very hot

summer's day on Friday April 14, 1944, the ship "Fort Stikine" (7420 tons) blew up

in the Bombay docks. At the time the ship was about to unload a lethal combination

of cargo of dried fish and cotton bales (loaded from Karachi), timber, gunpowder,

ammunition, and gold bars from London (the latter to stabilize the Indian Rupee,

which was sagging due to the Second World War and fear of invasion from Japan).

The gold bullion was valued at approx. two million Pounds Sterling at that time.
Nobody is certain as to how the fire started but the two explosions, which followed,

were so loud that windows rattled and/or shattered as far away as Dadar, a distance

of 8 miles. The destruction in the docks and surrounding area was immense and

several hundred-dock workers were killed instantly. A majority of brave men of the

Bombay Fire Brigade, who answered the call to duty immediately after the first

blast, lost their lives in the second explosion (a monument has been erected in the

docks in their honour). The population of the city was panic stricken as rumours

spread rapidly that the explosions signaled the commencement of hostilities by the

Japanese on the same style as the surprise attack on Pearl Harbour in the Hawaiian

Islands in December 1941.

The Japanese were in fact nowhere near Bombay since they were engaged in

fighting a losing battle with the British army in Burma at that time. Nevertheless,

the Bombay Central (BB&CI) and Victoria Terminus (GIP) stations were packed to

capacity with terrorized people fleeing the city in whichever train they could board

for their villages with all belongings they could carry. At the time of the explosion,

one of the gold bars crashed through the roof of the third floor apartment of a Parsi

named D.C. Motivala more than a mile from the docks. He promptly returned the

gold bar to the authorities. Almost all of the other gold bars were subsequently

recovered from different parts of the city; the last ones to be found were hauled up

from the bottom of the sea in the docks. However, during normal dredging

operations carried out periodically to maintain the depth of the docking bays one or

two gold bars were found intact sporadically as late as the 1970s and returned to the

British government. The government took full responsibility for the disaster and

monetary compensation was paid to citizens who made a claim for loss or damage
to property.

The Port Trust Railway from Ballard Pier to Wadala was opened in 1915. Along this

railway were built grain and fuel oil depots. The kerosene oil installations were

developed at Sewri and for petrol at Wadala. In the same year the first overhead

transmission lines of the Tata Power Company were erected, and in 1927 the first

electric locomotives manufactured by Metropolitan Vickers of England were put

into service for passenger trains up to Poona and Igatpuri on the GIP railway and

later electric multiple unit (EMUs) commuter trains ran up to Virar on the BB&CI

railway and up to Karjat and Kasara of the GIP railway. During the Second World

War these EMUs were joined together to form long trains, which carried troops and

small arms and ammunition to and from Bombay to the hinterland.

The Fort (downtown) area in Bombay derives its name from the fact that the area

fell within the former walled city, of which only a small fragment survives as part of

the eastern boundary wall of the St. George's Hospital. In 1813 there were 10,801

persons living in the fort, 5,464, or nearly 50%, of them Parsis. With the growth of

the city more people came from the Fort to such suburbs as Byculla, Parel, Malabar

Hill, and Mazagaon. European sports clubs for cricket and other games came in to

existence early in the 19th Century. The Bombay Gymkhana was formed in 1875

exclusively for Europeans. Other communities followed this example, and various

Parsi, Muslim, and Hindu gymkhanas were started nearby with fierce sports

competitions among them being organized on a communal basis. This was opposed

by several secular minded persons, such as the late A.F.S. Talyarkhan, and sports

teams based on community, especially cricket teams, came to an end gradually after

independence from British rule in 1947.

The historic session of the All India Congress Committee began on the 7th of

August 1942. Its venue was the Gowalia Tank Maidan, where the congress was born

in 1885. It was at this session that the "Quit India" call was given by Mahatma

Gandhi and other Indian National Congress leaders. The British arrested the Indian

leaders soon afterwards but the momentum of the Quit India movement could not be

stopped and led to the final withdrawal of the British on 15 August 1947. The last

British troops on Indian soil left for England through the archway of the Gateway of

India on that day. They bade farewell from where they had entered 282 years before.

The people of Bombay, in a gesture of generosity wished them bon voyage,

forgetting the bitter memories of the fight for independence. Today the maidan from

where the call to "Quit India" was given is called the "August Kranti Maidan".

After independence the Congress party led by Jawaharlal Nehru at the Center was

swept to power in most of the Indian States, which were constituted on the basis of

language spoken by the majority of its people. The Bombay State included the city

as its seat of government. In 1960 the state of Bombay was split into Maharashtra

and Gujarat states again on linguistic basis, the former retaining Bombay city as its

capital. The Congress party continued to administer Maharashtra until 1994 when it

was replaced by the Shiv Sena-Bharatiya Janata Party (BJP) coalition.

With the success of the back-bay reclamation scheme in the late 1960s and early

1970s Nariman Point became the hub of the business activity. Several offices

shifted from the Ballard Estate to Nariman Point, which ultimately became one of

the most expensive real estate in the world as high demand pushed prices to
astronomical limits. Nariman Point is named after K.F. Nariman, president of the

Bombay Provincial Congress Committee and former mayor of Bombay. Churchgate

Street was also renamed as Veer Nariman Road after independence.

The Stock Exchange at Bombay was established in 1875 as "The Native Share and

Stockbrokers Association" which has evolved over the decades in to its present

status as the premier Stock Exchange in India. It is one of the oldest in Asia having

preceded even the Tokyo Stock Exchange, which was founded in 1878. In the early

days the business was conducted under the shade of a banyan tree in front of the

town hall. The tree can still be seen in the Horniman Circle Park. In 1850 the

Companies Act was passed and that heralded the commencement of the joint stock

companies in India. The American Civil War of 1860 helped Indians to establish

brokerage houses in Bombay. The leading broker at the time, Premchand Roychand,

assisted in framing conventions, ground rules and procedures for trading which are

respected even now. He was the first Indian broker who could speak and write in

fluent English. The exchange was established with 318 members with a fee of Re.

1/-. This fee has gradually increased over the years and today it is an over a crore.

In January 1899, James M. MaClean, M.P, inaugurated the Brokers’ Hall. After the

First World War the Bombay Stock Exchange (BSE) was housed in an old building

near the Town Hall. In 1928, the present plot of land was acquired surrounded by

Dalal Street, Bombay Samachar Marg, and Hammam Street. A building was

constructed in 1930 and occupied in December of that year.

In 1995 the operations and dealings of the BSE were fully computerized and thus

the famous out-cry system of share trading was replaced by screen based trading as

in other modern stock exchanges around the world. Today Bombay is the financial

and business capital of India. The BSE is housed in the 28-storied Phiroze
Jeejeebhoy Towers in the same place where the old building once stood. Sir Phiroze

Jamshedji Jeejeebhoy was the Chairman of the Exchange from 1966 till his death in

1980. The building has been named after him since its construction commenced

during his Chairmanship and was completed just as he passed away.

History of Mumbai

The city of Bombay originally consisted of seven islands called Colaba,

Mazagaon, Old Woman's Island, Wadala, Mahim, Parel, and Matunga-Sion. This

group of islands has been joined together by a series of reclamations. In 1534 the

Portuguese took Bombay by force of arms from the Mohammedans. This led to the

establishment of numerous churches, which were constructed in areas where the

majority of people were Roman Catholics. Only one church with Portuguese-style

facade still remains i.e. St. Andrew's church at Bandra. They named their new

possession as "Bom Baia" which in Portuguese means "Good Bay".

Later the islands were given to the English King Charles II in dowry on his marriage

to Portuguese Princess Catherine of Braganza in 1662. In the year 1668 the English

East India Company on lease from the crown acquired the islands for an annual sum

of 10 pounds in gold. The British corrupted the Portuguese name "Bom Baia" to

"Bombay". Seth Modi Hirji Vachha built the Zoroastrian Towers of Silence on

Malabar hill in 1672. Sir Robert Grant governed Bombay from 1835 to 1838 and

was responsible for the construction of a number of roads between Bombay and the

hinterland. The Thana and Colaba Causeways were built during his tenure as well as

the Grant Medical College.

On Saturday 16th of April, 1853 a 21-mile long railway line, the first in India,
between Bombay's Victoria Terminus and Thana was opened. The Great Indian

Peninsular and the Bombay Baroda and Central India Railway were started in 1860

and a regular service of steamers on the west coast was commenced in 1869. In

1858, following the First War of Independence of 1857, the East India Company

was accused of mismanagement and the islandsreverted to the British Crown. The

later half of the 19th century was also to see a feverish construction of buildings in

Bombay, many of which such as, the Victoria Terminus, the General Post Office,

Municipal Corporation, the Prince of Wales Museum, Rajabai Tower and Bombay

University, Elphinstone College and the Cawasji Jehangir Hall, the Crawford

Market, the Old Secretariat (Old Customs House) and the Public Works Department

(PWD) Building, still stand today as major landmarks. The Gateway of India was

was built to commemorate the visit of king George V and Queen Mary for the

Darbar at Delhi in 1911.

Lord Sandhurst governed Bombay between 1895 and 1900 and it was during his

tenure that the Act was passed which constituted the City Improvement Trust,

which, among other things, built the Sandhurst Road in 1910 and handed it over to

the municipality. The Sandhurst Road railway station (upper level) was built in

1921. The Bombay Gymkhana was formed in 1875 exclusively for Europeans.

Other communities followed this example, and various Parsi, Muslim, and Hindu

gymkhanas were started nearby with fierce sports competitions among them being

organized on a communal basis.

The historic session of the All India Congress Committee began on the 7th of

August 1942. Its venue was the Gowalia Tank Maidan, where the congress was born
in 1885. It was at this session that the "Quit India" call was given by Mahatma

Gandhi and other Indian National Congress leaders. The last British troops on

Indian soil left for England through the archway of the Gateway of India on that

day.

After independence the Congress party led by Jawaharlal Nehru at the Center was

swept to power in most of the Indian States, which were constituted on the basis of

language spoken by the majority of its people. The Bombay State included the city

as its seat of government. In 1960 the state of Bombay was split into Maharashtra

and Gujarat states again on linguistic basis, the former retaining Bombay city as its

capital.

Today Bombay (Mumbai) is the financial and business capital of India. In 1858 the

administration of the country was taken over by the Queen of England, Queen

Victoria, from the East India Company. A viceroy was appointed to rule India in the

name of the Queen.Bombay came under the direct rule of the British in 1861. The

first railway line in India was started between Bombay (VT) and Thane in 1861. In

1864, modern water supply was started in Bombay (Mumbai) and in 1885, Bombay

was lit with gas.

Mahatma Gandhi joining Indian Politics in 1920 was a turning point in the political

destiny of India, which led to the Independence of India from the British rule.

Bombay (Mumbai) had an important role to play in this event.

Geographical Profile of Mumbai

Mumbai spans over 437.77 sq kms in Area having a population of

16 million. Mumbai is located at 0 Altitude i.e. at sea level. It lies between Latitude
- 18º 53' North, Longitude - 72º 50' East. Mumbai has a Warm and humid Climate

throughout the year and the Average Temperature being Day - 35º C, Night - 25º C.

Mumbai enjoys its monsoon showers from June to September with the annual

rainfall being 216 cms

Mumbai earlier was made of seven islands, which are today called Colaba, Mahim,

Mazgaon, Parel, Worli, Girgaum and Dongri.

The people of Mumbai are commonly referred to as Mumbaikars and the languages

that are mostly spoken are Marathi. English, Hindi, Gujarati. The Transportation

here is one of the Best with Public Transport Local trains (western, central,

harbour), buses, taxis and autos covering the whole of Mumbai

Climate of mumbai

Most of the year, Mumbai's climate is warm and humid. Between November and

February, the skies are clear, and the temperature is cooler. From March the

temperature becomes warm and humid till mid June, the beginning of monsoon.

During monsoon there are torrential rains, sometimes causing the flooding of major

roads and streets of Mumbai. The average rainfall, which is brought by the

southwest monsoon winds in Mumbai, is 180 cms. Monsoon ends by the end of

September. October is comparatively hot and humid.

Mumbai Climate – Bombay's Weather

Heat, dust and sweat. That's the worst one can get, when it comes to Mumbai's

weather. Being a coastal city, its balmy sea breeze keeps it sultry (humid) and

warm, with the climate remaining more or less stable throughout the year.
SUMMER

the summer months (March till mid-June) are a combo of high temperatures and

humidity, which can be quite an experience for those not accustomed to it. A

marginal drop in the temperatures passes for winter in Mumbai, with the

temperature ranging from 1 7 degrees to 30 on an average throughout the year.

MONSOON

The much-romanticized season of Mumbai, the 'monsoon' starts somewhere

in June and normally lasts till Naryail Pumima or the 'Coconut Day' (usually mid-

August, although normally the rains persist till mid-September) the day when the

locals pray and make offerings to the- Lord of Rains or Varun. The down pour starts

somewhere mid-June and Mumbai has its fair share of rainfall (an average of 200

cm of rains)-than be anything but romantic for those looking for an active holiday.

For people who love windswept seafronts and promenades, it would be the ideal

time to visit Mumbai although movement is highly restricted and the weather could

be a damper if you are not used to extremely sultry weathe

Mumbai- A Melting Pot

The total population of Mumbai is about 10 millions. It is still growing. Mumbai

provides umpteen opportunities to realize one's dreams. Hence, people from all over

India, belonging to different cultures come here to realize their dreams. Mumbai has

become the melting pot of all Indian cultures. This is the reason Mumbai has a truly

cosmopolitan population bustling with activity. Its film industry "Bollywood" also

draws a number of youths with tinsel dreams to Mumbai. Being a major financial
center, People from all over the world come here for business opportunities. This

has made Mumbai a major International city.

Culture of Mumbai

Mumbai or Bombay has always been a multicultural and multi ethnic society. Its

culture is a potpourri of Maharashtrian, Gujarati, Parsi and Islamic elements.

Whether it is the Siddhi Vinayak Temple or the Parsi Tower of Silence or Haji Ali,

all of them co-exist in this metropolis. Though in the recent past, the Shiv Sena has

tried to give Mumbai a very Marathi identity, most still consider this the land of

opportunity, particularly to be immortalized on celluloid.

Choc-a-bloc with avenues of entertainment, from a stroll down Marine Drive to the

chaos of Chowpatty, from shopping at Colaba Causeway and Linking Road to

sipping coffee at the Apollo Bar at the Taj Mahal Hotel or having a cup of tea at the

Irani tea stalls, Mumbai is as diverse as you can get. From the bungalows of Pali

Hill to the chawls of Dharavi, the rich and the not so rich live together in this city

not wrongly known as mini India

Population:

The population of Mumbai is 13 million. The population of India is 1,014,003,817.

Location:

Mumbai is located in India. 19 00 N, 72 50 E. India is located in Southern Asia,

bordering the Arabian Sea and the Bay of Bengal, between Burma and Pakistan.

The climate of India tends to be tropical monsoon. The averages for Mumbai are:

Min.: 61 F (Jan) Max. 79 F (Jun)

Local Time:
The local time of Mumbai is Greenwhich Mountain Time +5:30, which are 13 hours

and 30 minutes ahead of Los Angeles.

Capital of India:

The capital of India is New Delhi.

National Day of India:

Anniversary of the Proclamation of the Republic, 26 January (1950)

Flag of India:

The flag of India has three equal horizontal bands of orange (top), white, and green

with a blue chakra (24-spoked wheel) centered in the white band; similar to the flag

of Niger, which has a small orange disk centered in the white band.

Currency:

The currency of India is one Indian rupee (Rs).

Place in and around Mumbai

Bombay, today known as Mumbai, is a modern commercial city and so

Cosmopolitan in its appearance and habits that the visitor feels at home immediately

on arrival. Bombay is the capital of Maharashtra and gateway to this beguiling sub-

continent. The word Bombay (Mumbai) is derived from Mumbadevi, the patron

goddess of the Koli fisherfolk, and the oldest inhabitants of Bombay. The name
Bombay, in its final form, dates back to the 18th century. Bombay was a cluster of

seven islands called Heptanasia by Ptolemy in 150 A.D. Geologicaly; Bombay forms

a part of peninsular India, which is considered to be the oldest part of the country.

Coming by sea or air, the visitor cannot help but notice Bombay's lovely natural

setting - far-away blue outlines of Western Ghats, the calm sea, dotted with

picturesque fishing boats with white sails and palm fringed beaches. In contrast, on

the outskirts, is smoke rising from a thousand suburban mill chimneys - a reminder

that Bombay is the largest commericial city in India and second only in size to

Calcutta

The rains in Bombay, which are torrential at times, last from June to August

(Monsoon Season). The two months - May and October - which come immediately

before and after the monsoon are inclined to be humid and sticky. The period from

November to March is extremely pleasant, light woollens being sometimes necessary

in December and January.

A good deal of Bombay's local color derives from the mixed nature of its population.

Apart from the local inhabitants (Maharshtrians, Gujaratis, Parsis, Goans, Kannadis,

and Tamils), there are thousands from other parts of India who come here to make a

living. The different customs, languages, and even the food eaten can make a

fascinating study

Hanging Gardens

The Hanging Gardens The way up to Malabar Hill from Marine

Drive is by Walkeshwar Road and Ridge Road, where the sea recedes further and
further until, from the top of the Sir Pherozshah Mehta Gardens and the adjoining

Kamala Nehru Park (popularly known as the "the Hanging Gardens") the visitor has a

panoramic view of Bombay - the bay, the imposing buildings standing out against the

skyline, the colorful Chaupati Beach immediately below, and the faint hills in the

distance. At night, the twinkling lights of Marine Drive have been aptly described as

"the Queen's Necklace." Near these gardens are the Parsi Towers of Silence, (not open

to visitors) where the dead are exposed to elements.

Priyadarshini Park

Priyadarshini Park A rocky wasteland near the sea has been

reclaimed and transformed into a large park, which can only be described as a feast

for the eyes, amidst the concrete jungle of Malabar Hill. It lies to the west of Napean

Sea Road. Besides acting as a lung for the city, it has a large track for joggers, several

tennis courts, a fully equipped gym, and a health club

Mahalaksmi

Mahalaksmi Proceeding down Malabar and Cumballa Hills, one comes to the

Mahalakhmi Temple, where there are always crowds and the sound of gongs as

devotees offer prayers to the Goddess of Wealth and Plenty - Mahalaksmi. Nearby is

the Mahalaksmi Race-course, where race meetings are held on weekends and public

holidays in the cool weather and some of India's most important races are run. To the

left, off another fine road by the sea known as Hornby Vellard, is a 500-year old

Muslim shrine, the Hajji Ali's Tomb, built on a rocky prominence surrounded by the
sea. The pathway leading to it is under water at high tide.

Haji Ali

Honoring the Muslim saint Haji Ali this mosque was built in the middle of the

sea with only a narrow path leading to it giving it an ethereal look. As per the Muslim

traditions separate praying rooms for ladies and gents are provided here to pay their

respects. It is set 500 yards into the sea and can be reached only in low tide. The Haji

Ali mausoleum has an offshore location, opposite the Mahalakshmi racecourse.

During high tide, the connecting causeway is submerged in water giving the

impression that the mosque and tomb are floating out at sea in splendid isolation. This

is The Haji Ali Dargah, the floating tomb of a wealthy Mohammedan merchant who

renounced his worldly ways before embarking on a pilgrimage to Mecca

Nehru Planetarium and Science Center:

Situated at Worli, the planetarium offers the sky observations and

astronomical shows and the science centre is an inter-active museum, where children

can get exposure to the world of science

Rani Jijamata Udyan (Rani Bagh)

Rani Jijamata Udyan (Rani Bagh) also known as Victoria Gardens In the heart
of the city are the Victoria Gardens, laid out in 1861. Here is Bombay's Zoo. Also,

situated in the Gardens is the Victoria and Albert Museum, mainly of industrial and

agricultural interest. It is open on all days except Mondays and certain holidays. In the

grounds to the east of the museum is the giant staute of an elephant, brought

originally from the Elephanta Caves.

Crawford Market

Crawford Market Crawford Market, also known as Jyotiba Phule Market,

situated at the junction of Dadabhoy Naoroji Road and Carnac Road was built in

1871. The main section is a covered market where vegetables, fruit, fish, meat, and

poultry, flowers, and provisions are sold. The market is in the center of a whole

network of lanes where the shopper can pick up almost anything

Chor Bazaar

Chor Bazaar Literally means "Thieve's Market". It is located near Bhendi

Bazaar. The adventurer buyer may come across curios and quaint collector's items and

may even chance upon a genuine antique.

Victoria Terminus

Victoria Terminus now renamed as Chhatrapati Shivaji Terminus Proceeding

down Dadabhoy Naoroji Road towards Flora Fountain one passes two imposing

buildings. On the right is the Municipal Building and on the left is Victoria Terminus

(popularly referred to as VT), headquarters of the Central Railway. F.W. Stevens

designed it in Italian Gothic style. The 1st train to steam out of Bombay was from

here to Thane in 1853.

Flora Fountain

Flora Fountain Down the Veer Nariman Road, one comes to Flora Fountain, also

known as Hutatma Chowk, the very hub of Bombay's busy life, which is at the

junction of Mahatma Gandhi Road, Dadabhoy Naoroji Road and Veer Nariman Road.

Within a radius of two miles of the Fountain are some of the most interesting

institutions and building of Bombay - the University, the old Secretariat, and the

famous Gateway of India. Near the fountain is the building of the High Court, the

highest court of law in the State, which was completed in 1879 and is in the Venetian

Gothic style characteristic of all Bombay's public buildings put up in the 19th century.

It has two pinnacles with the statues of Justice and Mercy. Across the road, on Veer

Nariman Road, is the Central Telegraph Office. Turning left (down a shady avenue

adjoining a sports field known as the Oval) one comes to the old Secretariat. Built in

1874, it is in the same style of architecture as the High Court.

Rajabai Tower

Adjoining the University, its architecture a mixture of Gothic and 15th

century French style. The Rajabai Tower gives a fine view of the city. A gujarati

businessman Premchand Roychand constructed this in the honour of his mother.

Prince of Wales Museum

To the left, a number of small parallel roads near the University lead to

Wellington Fountain, named after the Duke of Wellington, who came to Bombay in

1801 as a junior officer during his early military career. Here is one of the greates

attractions of Bombay, the Prince of Wales Museum, built is the Indo-Saracenic style

of architecture and having an imposing dome modelled on the architectural styles of

Western India of the 15th and 16th centuries. The museum has important Art, Natural

History, and Archaeological Sections besides smaller sections devoted to other

specialized subjects. It is open daily, except on Mondays from 10 am to 6 pm.

Jehangir Art Gallery

In the grounds of the Museum is the modern Jehangir Art Gallery, completed in

1952. It is frequently used for art and photographic exhibitions, where the visitor can

get an idea of modern Indian painting and sculpture. Just outside the entrance, at the

junction of Rampart Row and Mahatma Gandhi Road is one of the finest statues in

Bombay, an equestrian statue of King Edward VII, by Boehm

Gateway of India

Past the Council Hall and towards the sea is one of Bombay's main hotel

areas at the extreme end of which is a wide open space known as Apollo Bunder. The

Gateway of India, erected to commemorate the landing of King George V and Queen

Mary in 1911, dominates this. It consists of a central hall with great archways, and

side halls, which can accommodate, 600 people. The design, by the English architect

Witted, is based on the 16th century Gujarat style.

Juhu Beach

In Bombay's northern suburbs, well served by buses and trains, are big

middle class residential localitis as well as the main industrial area. Beyond lie the

picnic spots of Bombay, which provide a welcome break in a crowded program of

sight seeing in the city. Of these, the most popular is Juhu, 13 miles from Bombay,

approachable by rail (station Santa Cruz) or road. It has fine, palm-fringed beach ideal

for bathing. Because of its proximity to the international and domestic airports (Sahar

and Santa Cruz), Juhu has some of the famous five-star hotels like Sun N Sand, and

Holiday Inn.

Beyond are the attractive beaches of Marve and Manori, approximately 19 miles from

Bombay. Manori is approached by ferry boat, available a few miles from Marve. Both

are pleasant for bathing. Marve boasts of a 5-star resort hotel for a weekend retreat.

On the way is Madh Beach, another favorite picnic spot. Trombay, a picturesque

fishing village 16 miles from Bombay, has some fine scenery. Here is situated India's

largest atomic plant.

Powai and Vihar Lakes

 Within easy reach of Bombay by car are several picturesque lakes. Powai

Lake, 25 miles from Bombay, is a quiet stretch of water by the side of a motor road. It

can be approached via King's Circle, Sion, and Kurla. or through Santa Cruz and

Andheri. Lake Powai is smaller lake of the two, and is situated a little west of the

campus of Indian Institute of Technology (IIT), one of the premier institutions of

science and technology in India.

Vihar Lake, a mile away, is less secluded, as it is one of the sources of Bombay's

water supply. The lake, incidentally, is infested with crocodiles, which often bask in

the sun.

Aarey Milk Colony

The Aarey Milk Colony, situated in a part 20 miles from Bombay on the

main Ghodbunder Road, is one of the most modern milk colonies in the world. Aarey

is of interest, because of its natural beauty, to all besides the dairy expert and cows.

There is an observation pavillion on a hill near the entrance to the colony from where

one can survey an enchanting landscape, the main feature being the fine gardens laid

out over nearly 4000 acres of parkland. A favorite spot for holiday excursions, there

are all amenities for picnic parties. The colony's canteen serves snacks and fresh milk

from the dairy.

Sanjay Gandhi National Park

Sanjay Gandhi National Park at Borivli, off the Western Express

Highway, covers an extensive area of 5000 acres and is equipped with a number of

beautiful picnic cottages, and is an ideal place for restful relaxation. The showpiece of
the park is the Smriti Mandir, built high up on a hill in the pattern of a modern

Buddhist pavillion, which commands a panoramic view of the park lying below.

Another attraction here is the lion safari

A small trip of four miles brings the visitor to the famous Kanheri Caves - which are

believed to have been excavated between the 2nd and 9th centuries, by Buddhist

monks. These are about 100 in number and Cave Nos. 3, 10, 35, and 56 are of

considerable interest.

Chowpati Beach

Chowpati Beach is located between Marine Drive and Malabar Hill.

It occupies a special place in the life of Bombay, being the venue of mass political

meetings during the freedom struggle. Spectacular immersion of Ganesh idols takes

the place here on the 10th day of Ganesh Festival (around first week of September).

Taraporewala Aquarium

Taraporewala Aquarium on Marine Drive has a good collection of sea and

fresh water fish and other marine life. It is open on all days except Mondays

The Stock Exchange, Mumbai

Mumbai being the business and financial capital of India, the new Stock

Exchange Building (officially known as JeeJeeBhoy Tower), is the hub centre of

business activities.

Throughout the weekdays, people from all over keep in touch with the highs and lows

of the BSE Sensex, which is made up of 30 scrips from various sectors of the

economy?

The Rajabai Tower

The 260 feet high Rajabai Clock Tower, named after the mother of a 19th

century stockbroker, who contributed towards its construction; is part of the Mumbai

University complex.

Under the clock tower is the magnificent University Library, with what are

undoubtedly some of the most exquisite stained glass windows in Asia. These have

recently been treated by British conservationists and restored to their pristine glory.

The Vidhan Sabha Building

The Vidhan Sabha building is the seat of Maharashtra Government.

The "Jelly-Mould" shaped cupola houses the Assembly Hall and the tall tower has

offices of various ministries.

This is included to represent the fact that Mumbai is the capital of Maharashtra state.
Jain temple

Built in marble in 1904, the shrine is dedicated to Adinath, the first

Tirthankara or apostle. The walls of the temple are adorned with colourful paintings

depicting various incidents in the lives of the 24 tirthankaras of the Jain religion. On

the first floor is a special shrine dedicated to Parsvanath carved out of black marble&

the ceiling shows the different planets as personified in Hindu mythology. Inside,

frescoes depict various events in the lives of the 24 Jain apostles or Tirthankaras;

upstairs, a black marble shrine is beautifully decorated with celestial personifications

of the planets, painted onto the ceiling. The place is usually filled with worshippers,

mostly Jain stockbrokers who walk barefoot to the temple every morning, and white-

robed monks who have renounced everything save for their begging bowls

Mani Bhavan,

Mani Bhavan, the building where Mahatama Gandhi stayed during his

frequent visits to Bombay has been turned into a museum. It was the home of a

diamond merchent and Indian National Congress member Revashankar Jhaveri.

Gandhi's simple room remains untouched and contains his charkha (spinning wheel)

and charpoy (rope bed). It is said that this is where the Mahatama first learnt how to
 use the spinning wheel. There is a library of Gandhian literature and a cabinet marked

'books read by Gandhi'. The rest of the museum is devoted to photographic exhibits,

framed letters and 3-D tableaux of key events in Gandhi's life

Chapter 4

Demand Quantification

Name of the Rooms Occupancy% Business Tourist% Other%

hotel %
Grand Hyatt 350 65 55 26 19
Intercontine 280 68 44 32 24

ntal The
Grand
Leela Palace 250 72 52 26 22
Radisson 240 80 25 55 20
Total 1120 235 176 179 85

Total # of Rooms 1120

Average # of Rooms = --------------------- = ----- = 280
Total # of Hotels 4

Average Clientele

a) Business = 55+44+52+25 210

----------------- = ----- = 44%
4 4

b) Tourists = 32+26+26+55 139

------------------ = ---- = 34.75%
4 4

24+22+19+20 85
c) Other = ------------- = ---- = 21.25%
4 4

Estimation of Demand Supply GAP

Y = (w - BEP) x N/100

Where: N = Total no of Rooms

W = Weighted Average Occupancy

W = (N¹) (O¹) + (N²) (O²) + (N³) (O³)

---------------------------------------
N¹ + N² + N³

BEP (Occupancy %) =

Estimation of Demand Supply GAP

Y = (w - BEP) X N/100

[(22750 + 19040 + 18000 +19200) – 61]

Y= ----------------------------------
 1120
Y = (70.52 – 61) x11.2

Y = 106.62

Number of rooms that can be established without making a likely cost

Y 106.62
------ x 100 = --------- x 100 = 174.79
BEP 61

= Approximately 175 Rooms

Chapter 5

Target Market and Recommended Market Mix

1. Target Market

Proposed Target Market

After studying the condition of other hotels in Mumbai, which are of

various star categories, we see that they can cater to:

• Business Clients

• Tourist Clients

• Others

Thus from above study majority are business class people. Therefore,
the target proposed hotels will be mainly to attracted business class people and

also we have to keep in mind for the tourist and other category like people

who come for medical purpose etc.

In the proposed five star hotel it will concentrate on the business class

clientele and so it should be budget hotel so as business clientele feel worth to

stay and enjoy facilities paid for and enjoy the standard of the hotel and hotel

facilities for paid and can enjoy the standard of the hotel facilities as business

centre, travel. money exchange and other facilities provided by the hotel.

Similarly the tourist and other group can also enjoy leisure at moderate prices,

extra facilities advantages and other packages.

Target of Clientele

There is rapid growth of business to tourist in India. However, since

entrepreneur and the technology giant, Texas Instruments and discovered its

potential as a high tech city in the early 1980’s, and so such a major

technology boom. It is now home to more than 200 high tech companies

including home-grown giants.And the other way it is also planning to establish

biotechnology like IT in near future consequently. Thus from all aspects we

are targeting business class people and considering tourists and clientele so

our target of clientele will be:

• Business

• Tourist

• Others

There is a rapid growth of tourist in India as well as in the Mumbai.

Increase of tourism in Mumbai is due to the increased foreign and domestic

investment in Mumbai (especially in the fabrication, electrical, equipments,

units).

Mumbai is fast growing big business men, financial and technical

collaborations, raw materials dealers and suppliers are coming to Mumbai and

require accommodation facilities in the city. Due to the increase in the

business sector in Mumbai there is need of opening a business hotel which can

move the stay of these persons easier, luxuries and comfortable.

The proposed Hotel “Delhi Capital” will be situated at Delhi-Jaipur

Highway. There is a lot of scope to get permanent business, as at presently it

is limelight due to International Airport. There is also more reasons to get

more business is due to lack of hotels in that particular area finally due to

these reasons the hotel will get good business.

From Airport 1/2 Km

Railway Station 15 Km

Bus Station 2 Km

Unique selling promotion – by this term we refer to the service, which

is unique and is given only in the proposed hotel compared to the survey.

The analysis for an additional hotel in Delhi reveals that a new five star

hotel has a market. Hence it is proposed to establish a new five star named

“Hotel Chopra Continental”. By market mix we mean putting forward the

detailed plan of the hotel proposed. It involves important functions:

• Price

• Place

• Product

• Promotion

• Physical Evidence
 • Process

Price

By price we mean the tariff. The proposed hotel will be charging tariff

according to the number of facilities provided in the rooms. The tariff for

different rooms will be as following:

Types of rooms Tariff

Single Rooms 100
Double Rooms 40
Suites 21
Total 161

Place

The proposed hotel “Chopra Continental” is going to be constructed

Sahar International Airport Road Mumbai. Complete Activity to attract

tourist’s factor and head queries.

Product

• 100 Single Rooms

• 40 Double Rooms

• 21 Suites

The Annex rooms are for budget travelers. They can be sold on double

or triple occupancy as it has a sofa cum bed to people to find the normal tariff

quite high. Each room is centrally air conditioned with attached bath.

Decorated in its own distinct style each room is designed to create unique

tapestry of gorgeous color and design. Some of the other common facilities
 provided in the rooms:

• 24 hour hot and cold water

• Colour television with multiple variety of channels

• Channel music

• Wall to wall carpeting

• Room service

• A mini bar

• Laundry service

• 24 hour local, national and international direct dial facility fax

machine available on request

• A port for connection of laptops

Apart from all this complimentary fresh fruits and cookies are kept in the

rooms.

Promotion

It is very important factor in the successful running hotel. The hotel would be

promoted through inaugural functions where all people and journalists would be

invited various food festivals can be held in the hotel. Thus the promotion of the

hotel would be done in the most favourable manner.

• Meeting and Conference Rooms

• Mini Conference Hall

• Business Centre

• Banquet

• Health Club and Beauty Parlour

• Sports Centre
 • Travel Desk

• Health Lounge

Business Centre

The business centre provides guests with the opportunity to use photocopying,

fax, telex, e-mail, Internet and secretarial facilities. The business centre has 5

computers, which are connected to the World Wide Web enabling guests to log on

easily on to the net. Each console is situated in separate units enabling users to do

their work privately.

Banquets

Outdoor private parties can be easily catered for. Parties can be held on the

lawns or by the poolside. Conference halls can also be leased for private parties on

request. Te sheer beauty of the natural setting will ensure a truly memorable

experience.

Health Club and Beauty Parlour

The health club offers guest with a steam room, Jacuzzi, gymnasium and

massaging facilities. The body workshop are ultra modern gymnasium employs a

fitness instruction and helpers who assist in operating the work out machines. The

employees at the massage section are trained at herbal and ayurvedic massaging. A

unique feature is that yoga classes are held.

Sports

The sports complex houses the gymnasium, snooker, table tennis, badminton

there is also a provision for tennis as there are two tennis courts and a basketball

court.

Travel Desk

The travel desk is located in the lobby and offers guest a lot of convenient
facilities. Car hire – air-conditioned and non air-conditioned, car vans and buses are

available for hire. Car for evening should be intimated about two hours in advance.

Mumbai sight seeing – the hotel organizes tours of sight seeing must be made

twelve hours in advanced arrangements for packed lunch can be made. The coach

departs from the hotel at 9:30 AM.

Airport transfers – the facility is provided on request booking must be made at

the time of reservation.

The Health Lounge

A unique feature of the “Chopra Continental” is its health lounge. The section

of the complex is provided for patients recovering from illness and health problems.

This helps the patients relax in quiet and beautiful surroundings. The room in this

section is all cottages.

1. Complementary shopping execution

2. Free pick and drop service

3. Secretarial services for travelling businessmen

4. A nurse is available on request 24 hours to assist the patients.

5. Special diets for guests are available in accordance with the medical

report provided by the guest’s dieticians.

6. Facilities for meditation and yoga are provided at the health centre

these sessions can be held in the room on request.

7. All necessary arrangements for first aid are provided in case of any

eventuality.

8. The hotel also provides a facility of doctor on call.

9. Ten cottages are totally sound proofed for this purpose.

10. Fitness instructor for workouts.

 Other Services and Facilities

Room service – is provided 24 hours. The menu card is placed in the

room. Safety Deposit Locker – guest are encouraged to leave their valuables

in the locker and not in the room. This service is provided free.

Laundry Service – Guests are required to put their laundry bag

provided in the room, after filling the necessary slip. Cloths are delivered in

24 hours. Clothes can be given for ironing at any time of the day.

Doctor on call – The doctor is available for consultation from 4:00 to

6:00 pm. However, he or she can be sent for any time of the day and night if

required for medicine please contact reception.

Currency Exchange – Foreign traveller’s checks, currency can be

converted to Indian rupees at the cashiers at the reception. All foreign

nationals are required to settle their bills in foreign currency only.

Housekeeping – Rooms are cleaned once a day however of a guest

requires his or her room to be cleaned again he or she can contact the

housekeeping department.

Newspapers – local and national newspapers, magazines will be

delivered to the room every morning.

Wake-up Call – Guests can call operator at any time for the wake up

calls.

Direct Dialling Facility – Guests can avail the facility of direct

dialling national and international calls from their rooms. Bills are

automatically metered and posted in the main bill.

Unique Facilities at the Pavilion

1. Package rates for businessmen

2. The complimentary shopping executions

3. Free transfers for guest from Bangalore

4. Special section for guest recovering from illness and heart

problem

5. Special diets for guests staying at the health lounge

6. Secretarial service for businessmen

 Chapter 6

Technical Aspects of the Hotel

Technical Details of Project

Name The Chopra Continental

Address Sahar International airport road

Mumbai
Star Category 5 Star
Type of Hotel Business and Airport Hotel
Distance By Air – 1/2 Km

Rail – 15 Km

Road – 5 Km
Size of Hotel Medium
# Of Rooms 161 Rooms
Type of Rooms Single, Double and Suites

Facilities of the Room

• Sports Room

• Coffee Shop

• Banquet Hall

• Business Centre

• Shopping Centre

• In-House Doctor

• Specialty Restaurant

• Bar

• Conference Centre

• Mail Service
 • Travel Desk

• Two Restaurants

o Mughlai (Indian Cuisine)

o Xian (Chinese Cuisine)

o Saif (Bar)

• Banquet Halls

o Dil (350 Pax)

Tariff

Types of rooms Tariff

Single Rooms 100
Double Rooms 40
Suites 21
Total 161

The Hotel Building

Basement
G.M Office 100 Sq. Ft.
Receiving 200 Sq. Ft.
Lockers 300 Sq. Ft.
 Stores 350 Sq. Ft.
Uniform Line Exchange 300 Sq. Ft.
Personnel 100 Sq. Ft.
Staff Cafeteria 1000 Sq. Ft.
Accounts 200 Sq. Ft.
Service Lift 70 Sq. Ft.
Security Office 100 Sq. Ft.
Fire Escape 100 Sq. Ft.
TV & Channel Music 100 Sq. Ft.
Power & Generator 250 Sq. Ft.
Passage Car Parking and Corridor 2200 Sq. Ft.
Total 5370 Sq. Ft.

Ground Floor

Description Sq.Ft.

Front Office 450

Lobby 700

Coffee Shop 750

Conference Halls 1200

Kitchen 1000

Shops 1400

Guest Toilet 700

Bell Desk 120

Travel Desk 60

Guest Safety Locker 100

Guest Stairways 70
Time Office 100

Guest Lift 80

Service Lift 70

Service Stair 30

Compound and Gardens 1500

Health Club 400

Beauty Par lour 250

Banquet Hall 2000

Restaurant 1000

Landscaping 7820

House keeping Pantry 100

Total 20000

First Floor
Service Lift 70 Sq. Ft.
Service Stair 30 Sq. Ft.
Guest Lift 80 Sq. Ft.
Fire Escape 50 Sq. Ft.
HK Pantry 150 Sq. Ft.
Rooms 8000 Sq
Corridor 600 Sq. Ft.
Service Pantry 100 Sq. Ft.
Total 9080 Sq. Ft.

Second Floor
Service Lift 70 Sq. Ft.
Service Stair 30 Sq. Ft.
Guest Lift 80 Sq. Ft.
Fire Escape 50 Sq. Ft.
HK Pantry 150 Sq. Ft.
Rooms 8000 Sq
Corridor 600 Sq. Ft.
Service Pantry 100 Sq. Ft.
Total 9080 Sq. Ft.
Third Floor
Service Lift 70 Sq. Ft.
Service Stair 30 Sq. Ft.
Guest Lift 80 Sq. Ft.
Fire Escape 50 Sq. Ft.
HK Pantry 150 Sq. Ft.
Rooms 8000 Sq
Corridor 600 Sq. Ft.
Service Pantry 100 Sq. Ft.
Total 9080 Sq. Ft.

Fourth Floor
Service Lift 70 Sq. Ft.
Service Stair 30 Sq. Ft.
Guest Lift 80 Sq. Ft.
Fire Escape 50 Sq. Ft.
HK Pantry 150 Sq. Ft.
Rooms 8000 Sq
Corridor 600 Sq. Ft.
Service Pantry 100 Sq. Ft.
Total 9080 Sq. Ft.

Land Area Required 20,000 Sq. Ft.

Total Built Up Area 61690 Sq. Ft.
Covered Land 6000 Sq. Ft.
Open Area 2000 Sq. Ft.
 Chapter 7

Manpower Requirement

The success of any service department to a large extent depends on the

manpower and the productivity and the productivity of its workforce.

Success is personnel management attached specially with good planning.

The shift timing for the personal hotel will be:

Morning Shift 7 AM to 4 PM
Afternoon Shift 3 PM to 11 PM
Night Shift 11 PM to 8 AM
General Shift 9 AM to 6 PM

The manpower of the proposed hotel will be distributed as below.

The number of employees will be around two that of the total number of room

in the hotel.

Administrative
General Manager 1
Personal Assistant to General 1

Manager
Total 2

Front Office
 Front Office Manager 1
Lobby Manager 2
Receptionists 7
Reservation Assistant 4
Bell Captain 4

Bell Boys 10
Cashier 3
Telephone Operator 8
Total 32

Food and Beverage Production

Executive Chef 1
Sous Chef 4
Chef De Partie 20
Commis 40
Total 65

Housekeeping

Executive Housekeeper 1
Asst.housekeeper 1
Houseman’s 30
Desk Supervisor 3
Floor Supervisor 8
Total 43

Food and Beverage Service

F & B Manager 1
Coffee Shop Mahager 1
Captain 5
Stewards 8
Total 15
Indian Restaurant

Restaurant Manager 1
Captains
Chinese Rest 5
Stewards 8
Total
Rest. Manager 14 1

Captains 5

Stewards
Banquet Mgr. 8
Banquet Mgr. 3
Total 14
Captain 8
Stewards 10
Total 21

Bar
Bar Captain 5
Stewards 6
Bar Tender 4
Total 15

Room Service Mgr. 1

R.S.O.T 4

Captain 4

Steward 8

Total 17

Security
Chief Security Officer 2
Securities 14
Door Men 4
Total 20
 Personnel
Personnel Manager 1
Assistants 4
Total 5
Accounts
Accounts Manager 2
Assistant Clerk 8
Total 10

Purchase
Manager 1
Assistants 4
Total 5

Kitchen Stewarding
Executive 1
Supervisor 5
Kit. Stewarding 18
Total 24

Training
Training Mgr. 1
Training Sect. 6
Total 7
Sales and Marketing
Marketing Mgr. 1
Marketing executives 3
Publicity Staff 8
Total 12

Engineering and Mtn.

Chief engineer 2
 Asst. engineer 3

Supervisor 5

Helpers 8

Total 18

Misc.
Storekeeper 3
Pest Control 3
Gardener 4
Carpenter 4
Health Club 4
D.J 2
Grand Total 350

A total number of employees equal to 350.

 Market Mix

CHAPTER – 6

TARGET MARKET & MARKETING MIX

After studying the conditions of the other five star hotels in Mumbai, which are, see
that they cater to
Business 44%
Tourist 34.25%
Others 21%
The above study shows the majority of the clientele are business class people so that
the target of the proposed hotel will be mainly concentrate on the business class
people and we also have to keep in mind business as well as tourist leisure and also
the holiday or other category like people who come for sports, music concert, aero
shows etc. Thus the purposed the five starts will mainly concentrate on business
clientele.

TARGET OF CLIENTELE
There is a rapid growth of business tourist in India particularly and Mumbai, however
since local enterprises and technology come to Mumbai. It is now a town of more
than 250 InfoTech companies including home-grown giants and Ministries.
In marketing planning, we use market information to access situation. We have to
select specific marketing target for each segment on sub division of the market. We
formulate the combination of marketing programming to reach a particular target on
market segment. The combination of these marketing methods on devices is known as
“MARKETING MIX”.
As successful marketing strategy must have a marketing mix, as well as a target
market for which the market mix is prepared. The basic elements on variables that
make up a marketing mix is as follows: -
• Place

• Product

• Price

• Promotion

• People

• Physical Evidence

• Process

These of marketing mix are closely interred related in other ways it is a blend of there.

• PLACE: -
 By place we mean that selection of the best location for the hotel. The location is
considered as one of the most important decisions considering various barometers
connected with choosing of the location a suitable place was finalized. The site for
the construction of the proposed hotel is adjacent to north paradise.
Distance from important places
Bus Stand 5 kms
Airport 1/2 kms
Railway station 15kms
As it is close to the international airport will attract more tourist and business class
people and as many other hotels and malls coming up near the international
airport.

• PRODUCTS: -

From the data collected and analysis it is inferred that a 161 room’s hotel of a five
star category in Mumbai is commercially reliable. The hotel has a very good
prospective.
This is attached to reception counter. It consist of
i. Travel Desk

ii. Handicraft Shop

iii. Florist

iv. Banking Facilities

v. Pastry Shop

vi. Beauty Parlor

Business Center: -
The hotel provides facilities for
i. Fax

ii. Telex

iii. Internet

iv. Xerox

These facilities provide efficient secretarial and other services, which can increase the
number of business clientele.

Lockers: -
This is to help the guest who carry valuables like jewelry, currency, important
document etc to safe ground and prevent theft.

Car Park: -
The car park provided in basement as well as on the site which can accommodate
150-180 cars and 40-50 two wheelers.
F & B Outlets: -
Bar “Saif” 11.30 am 12 pm
Indian Restaurant “Mughali” 11.30 am 12 pm
Chinese Restaurant “Xian” 11.30 am 12 pm
Room Service 24 Hours

Facilities provided in the room: -

All rooms have wall-to-wall carpeting. The furniture like bed, wardrobe, suitcase,
rack, writing table, chair, sofa and refrigerators. All rooms have channel music,
Internet, colour TV, A/C and Telephone.
• PRICE: -

The price of the service is the value attached to it by the service provider that it must
correspond with the perception of value. Price is the exchange value of a product or
service under a number of other names like fees, rent, salary etc. Some time it reflects
the nature of relationship between customer and provider.

• PROMOTION: -

Promotion is a tool of communication use to inform the target market customer about
the goods and service to facilitate the exchange process. It is supporting activity that
includes such things as displays, trade shows, some advertising materials, and trade
promotions, samples.
- Travel Agents

- Food festivals

- Book fairs

- Discounts
 CHAPTER – 7

Conclusion

The tourism industry is the second largest industry in the world and

the rate at which it is growing it will no doubt become the first largest

growing industry. The phenomenal growth of the industry is mainly due to

man’s urge to travel for purposes of business or pleasure. Under developed

and developing countries especially can use their natural resources into a

maximum earning valuable foreign exchange income from tourists which are

to be channelled for infrastructure development and generation of

employment thereby putting these countries on the worthwhile path to

development. Most countries like India have used their limited resources and

benefited from tourism, Mumbai is one city filled with business travellers.

This brings the need to provide quality accommodation.

The proposed hotel caters to the need of business travellers who

frequently visit the industrial belt and for pleasure travellers to view Mumbai

sight seeing. It provides the businessmen with all required facilities. Tourist

can enjoy a peaceful and comfortable stay and those who would like to visit

the main aspects of Mumbai can easily do so. It also provides for people with
 health issues to recuperate themselves with the help of the unique health

facilities provided right in their hotel.

Therefore, to conclude, it is visible that there is a great need of hotels,

which have an added bonus to the establishment.

ANNEXTURE -1

COST OF LAND

Required land = 20000 square feet

Cost of land = Size of land × Rate /square feet
= 30000×3000
= 900 lakhs
Cost of conveyance = 15% of 900
= 135
Cost of development = 10% of 900
= 90
Total cost of land = 900+135+90
= 1125 lakhs

ANNEXTURE -2

BUILDING AND CIVIL WORKS

Cost of Building = Total built up area × Construction rate

persquarefeet
= 61690 × 1825
= 1126.4 lakhs
Electricity = 10 % of Total cost of building
 = 10 % of 1126.4
= 112.6
Draining and plumbing = 5 % of cost of building
= 5 % of 1126.4
Description Rs. In Lakhs = 56.32
Total cost of
Lift 30
building and
Generator 15 Civil works
Transformers 10 =
Vehicles 100
Bore well Filtration plant 10
Dish Washing Machine 10
Boiler 5
Kitchen Equipments 20
Fire Equipments 15
A/C Units 50
Laundry Mach. 20
Water Plant 7
Total 250

1126.4+112.6+56.32
= 1295.32 Lakhs

ANNEXTURE -3

PLANT OF MACHINERY
 ANNEXTURE -4A

FURNITURE AND FIXTURE

Single rooms -100

Items Rate Units Amount

Single Bed 4000 100 400000
Side Table -2 each 500 200 100000
Table Lamps-3 each 250 300 75000
Chair and Writing Table 800 100 8000
Coffee Table 700 100 70000
Seated coffee 800 200 160000
Bar 1000 100 1000000
TV Cabinet 15000 100 1500000
Wardrobe 1500 100 150000
Carpet 2000 100 200000
Water Closet 1000 100 100000
Vanity Counter 2500 100 250000
Luggage rack 500 100 50000
Lamp Shades -2 each 500 100 1100000
Misc. 500 200 1000000
Total 3935000

Double room 40

Particulars Number Rate/Unit Rs. in lakhs

Single Bed 2.8
Double Bed 0.85
Side tables 0.90
Chairs 1.9
Mini Bar 2.3
Wash basin & bath tub 2.3
Carpet (wall to wall) 0.25
Mirror 1.7
TV stand 0.30
Table lamp 23.22
Total
 ANNEXTURE - 4B

Suites Rooms: - 21

Particulars Number Rate/Unit Rs. In lakhs

Double Bed 2.0
Side table 0.4
Chairs 0.75
Sofa set 0.90
Mini Bar 1.8
T.V. Stand 1.3
Carpet 0.5
Mirror 0.30
Table lamp 0.10
Wash basin & bath tub 1.5
Dining table set 0.50
Total 12.70

ANNEXTURE – 4E

Restaurant – 55 PAX Chinese

Particulars Number Rate/Unit Rs. in lakhs

Table 0.40

Chairs 0.65

Side Station 0.05

Television 0.30

Décor 0.70
Total 13.84

ANNEXTURE – 4F

Coffee Shop (70 covers)

Particulars Number Rate/Unit Rs. In lakhs

Tables 0.35

Chairs 0.85

Side Station 0.25

T.V. 0.20

Décor 0.8

Total 2.85
 ANNEXTURE – 4G

BAR (40 Pax)

Particulars Number Rate/Unit Rs. In lakhs

Table 0.10
Chair 0.30
Bar Counter 1.5
T.V. 0.35
Décor 0.90
Side Station 0.8
Bar Stool 0.30
Total You have to see

Banquet Hall (250 pax)

Particulars Number Rate/Unit Rs. In lakhs

Chairs 2.25
Tables 1.8
Stage 1.0
Carpet 1.3
Projector 0.40
Miscellaneous 0.80
Total 20

ANNEXTURE – 4E

Specialty Restaurant – 40 PAX Indian

Particulars Number Rate/Unit Rs. in lakhs

Table 0.75

Chairs 0.90

Side Station 0.07

Television 0.30

Décor 0.65

Total 2.7

TOTAL COST OF FURNITURE & FIXTURE

Particulars Rs. In lakhs

Single Room 39.35

Double Room 23.22

Suite Room 12.7

Specialty restaurant 2.7

Chinese Restaurant 13.84

Bar You have to see

Coffee Shop 2.85

Administration Office 10

Lobby 6.08
 Banquet Hall 20

Business Centre 30.4

Health club 16.8

Total 165.1

ANNEXTURE-5
MISCELLANEOUS FIXED ASSET

Restaurant: - 55 Covers Chineese

Particulars Number Rate/Unit Rs. In lakhs

Table cloth 0.07
Napkins 0.03
Full plate 0.10
Half plate 0.09
Quarter plate 0.05
Soup bowl 0.06
Large knife 0.07
Large fork 0.08
Fish fork 0.07
Glass 0.20
ABC 0.04
Sweet spoon 0.07
Sweet fork 0.07
Soup spoon 0.06
Total 1.06
Par Stock 3*1.06 3.18

Specialty Restaurent: -40 Covers

Particulars Number Rate/Unit Rs. In lakhs

Table cloth 0.07
Napkins 0.02
Full plate 0.1
Half plate 0.08
Large knife 0.06
Large fork 0.06
Fish fork 0.08
Glass 0.25
ABC 0.04
Total 0.825
Par Stock 3*0.825 2.47

Coffee Shop: -70 covers

Particulars Number Rate/Unit Rs. In lakhs

Table cloth 0.07
Napkins 0.03
Tea spoon 0.04
Teacup 0.07
Half plate 0.06
Quarter plate 0.09
Forks 0.02
Glass 0.10
ABC 0.02
Total 0.53
Par Stock 3*0.53 1.59

Banquet Hall: -300 pax

Particulars Number Rate/Unit Rs. In lakhs
Table cloth 0.10
Napkins 0.05
Full plate 0.10
Half plate 0.08
Quarter plate 0.07
Soup bowl 0.10
Large knife 0.06
Large fork 0.06
Fish fork 0.07
Glass 0.25.
Soup bowl 0.10
Sweet spoon 0.08
Sweet fork 0.08
Soup spoon 0.09
Total 1.19
Par Stock 3*1.19 3.57

Bar: -40 Covers

Particulars Number Rate/Unit Rs. In lakhs

Napkins 0.05
Half plate 0.09
Quarter plate 0.08
Glass 0.26
Spoon 0.07
Total 0.55
Par Stock 3*0.55 1.65

Staff cafeteria

Particulars Number Rate/Unit Rs. In lakhs

Plate 0.02
Spoons 0.03
Forks 0.02
Glass 0.05
Knife 0.02
Total 0.14

House Keeping
Particulars Number Rate/Unit Rs. In lakhs
Vaccum cleaner 0.80
Mug 0.02
Mop 0.03
Broom 0.06
Sqeezer 0.09
Duster 0.04
Bucket 0.25
Misc 0.50
Total 1.79

Double Room: -40 nos

Particulars Number Rate/Unit Rs. In lakhs

Bed sheets 0.15
Blanket 0.35
Blanket covers 0.15
Bed cover 0.18
Pillow 0.25
Pillow cover 0.09
Bath towel 0.10
Hand towel 0.80
Face towel 0.70
Bath mat 0.70
Mattress 0.90
Mattress protector 0.40
Total 4.77
Par Stock 3*4.77 14.31

Suite Room: -10 nos

Particulars Number Rate/Unit Rs. In lakhs

Bed sheets 0.03
Blanket 0.06
Blanket covers 0.03
Bed cover 0.02
Pillow 0.03
Pillow cover 0.01
Bath towel 0.02
Hand towel 0.02
Face towel 0.01
Bath mat 0.01
Mattress 0.03
Mattress protector 0.01
Total 0.27
Par Stock 3*0.27 0.81

TOTAL MISCELLANEOUS ASSETS

Particulars Rs. In lakhs

Restaurants 3.18
Specialty Restaurant 2.47
Coffee Shop 1.59
Banquet hall 3.57
Staff cafeteria 0.14
Double room 14.37
Suite room 0.81
House keeping 1.79
Bar 1.65
Total 29.57
 ANNEXTURE – 6

MARGIN OF CONTINGENCY

Particulars Rs. In lakhs

Total Cost of Land 500

Total Cost of Building & Civil Work 576.1
Plant & Machinery 167.7
Furniture & Fixtures 88.8
Miscellaneous 29.57
Total 1362.1
10% of Total Fixed Assets 136.21

ANNEXTURE – 7
SALARIES AND WAGES

Particulars Number Salaries Total

General Manager 1 50000 50000
Secretary 1 8000 8000
FO Manager 1 30000 30000
Receptionist 4 7000 28000
Telephone Operator 2 5500 11000
Bell Captain 3 5000 15000
Bell Boy 4 3500 14000
TelephoneSupervisor 3 8000 24000
Executive Housekeeper 1 35000 35000
Houseman 6 5000 30000
Floor Supervisor 4 10000 40000
Executive Chef 1 65000 65000
Souse Chef 3 30000 90000
Commies 7 7000 49000
Chef de Parties 6 15000 90000
F & B Manager 1 40000 40000
Banquet Manager 2 25000 50000
Captain 6 8000 48000
Stewards 20 5000 100000
Barmen 3 6000 18000
Supervisor 2 8000 16000
Kitchen Supervisor 1 6000 6000
Chief Engineer 1 25000 25000
Supervisor 2 9000 18000
Dishwasher 6 3000 18000
Electrician 4 6000 24000
Accounts Manager 1 12000 12000
Clerk 4 5000 20000
Personal Manager 1 20000 20000
Clerk 3 7500 22500
Security Officer 1 16000 16000
Guards 4 5000 20000
Door Man 2 3000 6000
Sales and Marketing Manager 1 30000 30000
Sales and Marketing Executive 3 15000 45000
Purchase Manager 1 15000 15000
Purchase Assistant 3 6000 18000
Total 119 1166500

7% of staff welfare=1166500*7%
=81655
Total =12.48 lakhs
Salary for one month=12.48
Salary for 3 months=12.48*3=37.44 lakhs
20% benefits on 3 month =7.48 lakhs
Salary Fr one year=12.48*12=149.76 lakhs
 ANNEXTURE – 8

PRE-OPERATION & PRELIMINARY EXPENSES

Particulars Rs. In lakhs

Salaries &Wages for 3 Months 7.48

Loan Processing Application Fee 1.0

Project Report Fee 0.25

Registration &Establishment Fee 1.3

Insurance (2.5% of Building Plant & 20.81

Furniture and Fixtures

Advertisement & Publicity 3.5

Electricity Board 2.0

Telephone 1.9

Water Supply Board 2.2

Margin For Working Capital 17.22

Miscellaneous Expenses 3.2

Total 59.6
ANNEXTURE – 9A
ESTIMATION OF INCOME FROM DOUBLE ROOM (40 ROOMS)

Year Room Tariff % Occupancy Days Total

1st Year 4500 60*40/100=24 365 394.2

2nd Year 4500 65*40/100=26 365 427.05

3rd Year 5500 70*40/100=28 365 562.1

4th Year 6500 75*40/100=30 366 713.7

5th Year 7500 80*40/100=32 365 876.0

ESTIMATION OF INCOME FROM SUITES ROOM (10 ROOMS)

Year Room Tariff % Occupancy Days Total

1st Year 6000 60%=6 365 131.4

2nd Year 6000 65%=7 365 153.3

3rd Year 7000 70%=7 365 178.85

4th Year 8000 75%=8 366 234.24

5th Year 9000 80%=8 365 262.8

TOTAL ESTIMATION OF ROOM SALES

 Particulars 1st Year 2nd Year 3rd Year 4th Year 5th Year
Double 394.2 427.05 562.1 713.7 876.0
Suites 131.4 153.3 178.85 234.24 262.8
Total 525.6 580.35 740.95 947.94 1138.8

ESTIMATION OF INCOME FROM RESTAURANT (55 PAX)

Year No. Of Cover Sold Cover Charges Days Total

1st Year 55%=30 300 365 33.1

2nd Year 60%=33 400 365 48.1

3rd Year 65%=36 500 365 65.2

4th Year 70%=39 600 366 84.5

5th Year 75%=41 700 365 90.3

ESTIMATION OF INCOME FROM BAR (40PAX)

Year No. Of Cover Sold Cover Charges Days Total

1st Year 55% = 22 250 365 20.0

2nd Year 60% = 24 250 365 21.9

3rd Year 65% = 26 350 365 33.2

4th Year 70% = 28 400 366 40.9

5th Year 75% = 30 400 365 43.8

ESTIMATION OF INCOME FROM COFFE SHOP (70 PAX)

 Year No. Of Cover Sold Cover Charges Days Total

1st Year 65% = 46 250 365 41.5

2nd Year 70% = 49 350 365 62.5

3rd Year 75% = 53 450 365 86.2

4th Year 80% = 56 550 366 112.7

5th Year 85% = 60 650 365 141.1

ESTIMATION OF INCOME FROM INHOUSE

Year No. Of Cover Sold Cover Charges Days Total

1st Year 30 300 365 32.8

2nd Year 33 300 365 36.1

3rd Year 35 300 365 38.3

4th Year 38 300 366 41.6

5th Year 40 300 365 43.8

ESTIMATION OF INCOME FROM BANQUET HALL (250 PAX)

Year No. Of Cover Sold Cover Charges Days Total

1st Year 60% = 150 200 365 109.5

2nd Year 65% = 163 300 365 177.9

3rd Year 70% = 175 400 365 255.5

4th Year 75% = 188 500 366 343.1

5th Year 80% = 200 600 365 438.0

ESTIMATION OF INCOME FROM SPECIALTY RESTAURANT (40PAX)

Year No. Of Cover Sold Cover Charges Days Total

 1st Year 65%=26 400 365 37.9

2nd Year 70%=28 500 365 51.1

3rd Year 75%=30 600 365 65.7

4th Year 80%=32 700 366 81.9

5th Year 85%=34 800 365 99.2

ESTIMATION OF INCOME FROM HEALTH CLUB

Year No. Of Cover Sold Cover Charges Days Total

1st Year 30 300 365 32.8

2nd Year 33 350 365 42.1

3rd Year 35 400 365 51.1

4th Year 38 450 366 62.4

5th Year 40 500 365 73.0

TOTAL ESTIMATED F & B SALES

Particulars 1st Year 2nd Year 3rd Year 4th Year 5th Year
Restaurant 33.1 48.1 65.2 84.5 90.3
Coffee Shop 41.5 62.5 86.2 112.7 141.1
Bar 20.0 21.9 33.2 40.9 43.8
Specialty Restaurant 37.9 51,1 65.7 81.9 99.2
Banquet Hall (250 pax) 109.5 177.9 255.5 343.1 438.0
Total 242.0 361.5 505.8 663.1 812.4
ANNEXTURE –10
INTREST ON LONG TERM LOAN
LOAN FROM SBI BANK @ 13%

Year Loan Amount Interest Installment

1 1012.6 131.6 202.52
2 810.1 105.3 202.52
3 607.6 78.9 202.52
4 405.0 52.7 202.52
5 202.52 26.3 202.52

ANNEXTURE –11
INTREST ON WORKING CAPITAL
INTREST ON WORKING CAPITAL @ 14%

Year Amount In lakhs Intrest

1 11.35 1.6
2 16.27 2.3
3 21.85 3.1
4 28.1 3.9
5 32.2 4.5
 CHAPTER – 1
PROJECT PROFILE

Name of the Proposed Hotel: - Royal Inn

Location: - Bellary road, Hebbal, Bangalore
Category: - Three Star
Types of Ownership: - Private Ltd. Company
Target Market: - Tourist & Business Class
Size of the Hotel Medium
Room Status: - Standard Room (40)
: - Suites Room (10)

Total Room: - 50 rooms

Tariff
Types of Rooms Rate

Standard 4500
Suites 6000

• VAT = 12.5 %

• Luxury Tax = 10 %
 CHAPTER – 2
PROJECT EXPENSES

Particulars Rs. In lakhs

Cost Of Land 500.0
Building & Civil Works 576.1
Plant & Machinery 167.7
Furniture & Fixture – Standard Room 17.7
Furniture & Fixture – Suites Room 10.65
Furniture & Fixture – Specialty Restaurant 2.6
Furniture & Fixture – Restaurant 2.1
Furniture & Fixture – Bar 4.25
Furniture & Fixture – Banquet (250 cover) 7.55
Furniture & Fixture – Administration Office 5.0
Furniture & Fixture – Executive Office 4.2
Furniture & Fixture – Lobby 8.0
Furniture & Fixture – Staff Cafeteria & Staff Locker 6.3
Furniture & Fixture – Health Club 18.0
Furniture & Fixture – Coffee Shop 2.45
Total 1332.6
MISCELLANEOUS FIXED ASSETS

Particulars Rs. In lakhs

Restaurant 3.18
Bar 1.65
Banquet (250 cover) 3.57
Specialty Restaurant 2.47
Guest Room Linen - Standard 14.37
Guest Room Linen - Suites 0.81
Staff Cafeteria 0.14
Housekeeping 1.79
Coffee Shop 1.59
Total 29.57
 CHAPTER – 3
COST OF PROJECT

Particulars Rs. In lakhs

Cost Of Land 500
Building & Civil Works 576.0
Plant & Machinery 167.7
Furniture & Fixture 88.8
Miscellaneous Assets 29.5
Margin & Contingency 136.2
Pre-operation & Preliminary Expenses 59.6
Total 1557.8
(+) Rate of Implementation 98.7
Total 1653.5
 CHAPTER – 4
MEANS OF FINANCE

Loan from SBI Bank

65 % of Cost of Land = 65 % × 1557.8

= 1012.6

Rate of Implementation = 1012.6 × 6.5 % × 3 / 2

= 98.7

Equity = 1653.5 – 1012.6

= 640.9

Share Capital = 580

Promotion Contribution = 40.9
Subsidy = 20
_________
Total 640.9

CHAPTER – 5
DEBT EQUITY RATIO

Debt Equity Ratio = Debt / Equity

= 1012.6/640.9
= 1.57

CHAPTER – 6
ESTIMATION OF INCOME
Items 1st Year 2nd Year 3rd Year 4th Year 5th year

Operating Level 55 % 60 % 65 % 70 % 75 %

Room Sales 525.6 580.3 740.9 947.9 1138.8

F & B Sales 242 361.5 505.8 663.1 812.4

In-house or HK 32.8 36.1 38.3 41.6 43.8

Health Club 32.8 42.1 51.1 62.4 73.0

Total 833.3 1020 1336.1 1715 2068

CHAPTER – 7
ESTIMATION OF EXPENSES

Items 1st Year 2nd Year 3rd Year 4th Year 5th year

Cost of F & B Sales 96.8 146.6 202.3 265.2 324.9

(40 % of F & B Sales)

Electricity 58.3 71.4 93.5 120.1 144.8

(7 % of Total Sales)

Salaries 149.7 149.7 172.1 172.1 197.9

(15 % of increase Every 2 Years)

Administration of Management 33.3 40.8 53.4 68.6 82.7

(4 % of Total Sales)

Advertisement & Publicity 16.6 20.4 26.7 34.3 41.4

(2 % of Total Sales)

Insurance & Legal Expenses 8.3 10.2 13.36 17.15 20.7

(1 % of Total Sales)_

Miscellaneous 33.3 40.8 53.4 68.6 82.7

(4 % of Total Sales)

Total 396.7 477.9 614.8 746.1 895.1

 CHAPTER – 8
WORKING CAPITAL

Year Ratio Raw Material 1:1 A/C receivable Salaries Cash Total
15 days stock 4:1 0:1 Flow in
40% 20 % of Total 1 0:1 Lakhs
Of F & B sales sales Month (In lakhs)
Of 1 month
1st Bank 1.95 9.4 - - 11.35
Owner 1.95 2.3 12.47 0.5 17.22
Total 3.9 11.7 12.47 0.5 28.57

2nd Bank 2.97 13.3 - - 16.27

Owner 2.97 3.3 12.47 0.5 19.24
Total 5.9 16.6 12.47 0.5 35.51

3rd Bank 4.15 17.7 - - 21.85

Owner 4.15 4.4 14.34 0.5 23.39
Total 8.30 22.1 14.34 0.5 45.24

4th Bank 5.4 22.7 - - 28.10

Owner 5.4 5.6 14.34 0.5 25.84
Total 10.8 28.3 14.34 0.5 53.94

5th Bank 6.6 27.6 - - 34.2

Owner 6.6 6.9 16.49 0.5 30.49
Total 13.3 34.5 16.49 0.5 64.69
 CHAPTER – 9
DEPRECIATION SCHEDULE

Year Building & Plant & Furniture & Miscellaneous Total

Civil Works Machinery fixture Fixed Depression
10 % 25 % 15 % Expenditure in lakhs
15 %

V D V D V D V D

1st 576 57.6 167.7 41.92 88.8 13.32 29.5 2.95 115.79

2nd 518.4 51.84 125.78 31.44 75.48 7.54 226.6 2.66 93.48

3rd 466.5 46.6 94.34 23.53 67.94 6.79 23.9 2.39 79.39

4th 419.9 41.9 70.81 17.7 61.15 6.11 21.5 2.15 67.95

5th 377.9 37.7 53.11 13.27 55.04 5.5 19.4 1.94 58.5
 CHAPTER – 10
PROFITABILITY STATEMENT

Particulars 1st 2nd 3rd 4th 5th

Year Year Year Year Year

Operational Profit 436.6 542.1 721.3 968.9 1172.9

(Income – Expenditure)
(-) Interest on long term loan 131.6 105.3 78.9 52.7 26.3
& Interest on working capital 1.6 2.3 3.1 3.9 4.5

(-) Depreciation 115.8 93.5 79.4 67.9 58.5

(-) Preliminary preoperational 11.9 11.9 11.9 11.9 11.9
Expenses
Net Profit before Tax 175.7 329.1 548 832.5 1071.7
(-) Tax – 35 % 61.5 115.2 191.8 291.4 375.1
(-) Surplus - 5 % 3.0 5.8 9.6 14.6 18.8
Profit after Tax 111.2 208.1 346.6 526.5 677.8
(+) Depreciation 115.8 93.5 79.4 67.9 58.5
(+) Preliminary preoperational & 11.9 11.9 11.9 11.9 11.9
operation expenses
Surplus Available 238.9 313.5 437.9 606.3 748.2
(-) Long term loan investment 202.5 202.5 202.5 202.5 202.5
Net cash flow 36.4 111.0 235.4 403.8 545.7
 CHAPTER – 11
RETURN ON INVESTMENT & PAY BACK PERIOD

Return on investment = Net cash flow × 100 / Equity

1st Year = 36.4 × 100 / 640.9
= 5.68

2nd Year = 111 × 100 / 640.9

= 17.32

3rd Year = 235.4 × 100 / 640.9

= 36.73

4th Year = 403.8 × 100 / 640.9

= 63

5th Year = 545.7 × 100 / 640.9

= 85.15

Average
= 41.6
= 100/41.6

= 2.38
Pay back period = Approx 2 Years 4 months
 CHAPTER – 12
FUND FLOW STATEMENT

Source of fund Construction 1st 2nd 3rd 4th 5th

Year Year Year Year Year

Promotion & 40.9

Contribution
Long Term Loan 1012.6
Share Capital 580
Subsidy 20
Gross Profit 175.7 329.1 548 832.5 1071.7
Depreciation 115.8 93.5 79.4 67.9 58.5
Preoperative & 11.9 11.9 11.9 11.9 11.9
preliminary Expenses
Total 1653.5 303.4 434.5 639.3 912.3 1142.1
 CHAPTER – 13
DISPOSAL OF FUND

Source of fund Construction 1st 2nd 3rd 4th 5th

Year Year Year Year Year
Fixed Assets 1362.1
Margin of Contingency 136.2
Preoperative & 98.7
preliminary Expenses
Interest During 56.9
Implementation
Interest on long term loan 131.6 105.3 78.9 52.7 26.3

Interest on working 1.6 2.3 3.1 3.9 4.5

capital
Payment of Long Term 202.5 202.5 202.5 202.5 202.5
Loan
Dividend on Shares 58 58 58 58 58
Total 1653.5 393.7 368.1 342.5 317.1 291.3
 CHAPTER – 14
ASSUMED FOR 3 YEARS OPERATION OCCUPANCY 60 %

Sl No. Particulars Rs. In lakhs

1 Estimated Revenue 1336.1
2 Fixed Cost
Power 40 % 37.4
Salaries & Wages 172.1
Interest on Long Term Loan 78.9
Depreciation 79.4
Advertisement & Publicity 26.7
Administration 53.4
Total 447.9
3 Variable Cost
Raw Material 202.3
Electronic & Power 60 % 56.1
Repair & maintenance 2.0
Interest on working capital 3.1
Miscellaneous 53.4
Total 316.9

• Contribution toward overheads = [Income – Variable Cost]

= 1336.1 – 316.9
= 1019.2
• Break Even Point = [Fixed Cost
/Contribution]* 100

= 447.9× 100 / 1019.2

 = 43.9 %
• Absolute BEP = [BEP × % of Occupancy] / 100

= 43.9 × 65 / 100
= 28.6
• Break Even Term Over = Estimated Revenue ×
absolute Break
Even / % of occupancy

= 1136.1 × 28.6/ 65

= 587.9

CHAPTER – 15
DEBT SERVICE COVERAGE RATIO

Coverage - I 1st Year 2nd Year 3rd Year 4th Year 5th Year

Profit After Tax 111.2 208.1 346.6 526.5 677.8

Depreciation 115.8 93.5 79.4 67.9 58.5

Interest on Long Term Loan 131.6 105.3 78.9 52.7 26.3

Preliminary & preoperational 11.9 11.9 11.9 11.9 11.9

Total 370.5 418.8 516.8 659 774.5

Grand Total 2739.6

Coverage -II 1st Year 2nd Year 3rd Year 4th Year 5th Year

Interest on Long Term Loan 131.6 105.3 78.9 52.7 26.3

Investment on Long Term 202.5 202.5 202.5 202.5 202.5

Loan
Total 334.1 307.8 281.4 255.2 228.8

Grand Total 1407.3

Average OCCR = [Coverage I / Coverage II]

= 2739.6/ 1407.3
= 2.0
CHAPTER – 16
SENSITVITY ANALYSIS

• Change Income for % occupancy = [Total Revenue / Occ.

Rate]

= 6972.4 / 65

= 107.2

• Change in expenditure for 1 % occ. = [Total Expenditure / Occ.

Rate]

= 3130.6 / 65

= 48.16

• Sensitivity Ratio = [Change in income /

Change in

Expenditure]

= 107.2 / 48.16

= 2.2
CHAPTER – 17
COST BENEFIT ANALYSIS

A = Total cost of the project

= 1653.5
B = Total Sales - Total
Expenses

= 6972.4 - 3130.6

= 3841.8

Cost Benefit Analysis = B/A

= 3841.8 / 1653.5

= 2.3

It is more than one rupee as it is Beneficial.

CHAPTER – 18
NETWORK ANALYSIS

Activity Time Duration

Project Result &Document 1 month
Market Feasibility 1 month
Register of Company 1 month
Purchase of Land 20 days
Preparation of Building Plan 1 month
Bank Loan 1 month
Power and Water Connection 1 month
Sanction & Plan 1 month
Construction of Building 19 months
Ordering Plant & Machinery 1 month
Sanitary & Electric Work 1 month
Delivery & Installation & machinery 1 month
Recruitment of Regular Staff 3 months
Furnishing & Interior Staff 1 month
Apply for Bank Over Draft 15 days
Trial sons & com 15 days
Landscaping 1 month
Commercial operation 10 months
 Total Period of Completion 36 months or 3 years

CHAPTER 19

CONCLUSION

Bangalore is the capital of Karnataka. It is the city for the

business people as well as the tourist. The hotel would have 50

rooms. The hotel name is “ROYAL INN” and the project cost is

1653.5 lakhs. The hotel occupancy rate has been assumed 55% for

the first year and 80% for the fifth year. The facilty that would be

provided by the hotel are banquet hall, multicusine restaurant,

specialty restaurant, bar, etc. Thus by keeping in view the

expenditure to estimated income and expense was done .The rate

of depreciation on assets and preliminary and pre – operative

expenditure to be written off per annum have been kept down as

fairly reasonable limits,

The Breakeven point at the third year is 44%, debt service

coverage ratio is 2.0, sensitivity ratio is 2.3 and capital intensity

(cost benefit analysis) is 2.3, which is more than 1 so it is

beneficial.

From the above information got by the calculation it is so

found that the hotel “ROYAL INN” is financially feasible.