P2 H Solutions Pvt. Ltd Company Business Plan 1

P2H Solutions Private Limited
Company Overview

Mumbai, India based company P2H Solutions Pvt. Ltd. promotes and manages its
F&B Retail venture under the brand name Cafe H&W, Share The Secrets, nestled
in Mumbai. With a tagline of ‘share the secrets’, this cozy cafe offers you the perfect
ambience to chit-chat and relax over refreshments. The cafe has invested majorly in
the R&D of food products and has introduced all new tasting branded food items on
their menu. Besides tea and coffee, the cafe serves vegetarian and non-vegetarian
sandwiches, rolls and desserts. The cafe has been designed as a unique one stop
experience over ecstatic coffee, finger licking fast food, with amazing ambiance and
thumping music.

Mumbai, India | Call:+91 7666127215 / 9324322704 | cafehnw@gmail.com

COFFEE IS WHERE YOUR STORY BEGINS…

 Brand name : Café H&W Our Outlet Models -
 Brand line : Share The
Secrets 1. Independent outlets
Registered
2. Food Courts.
 Brainchild of Mr. Arvind Singh 14
members
3. Quick Service
and Ms. Nidhi Shrivastava
Restaurants
 Incorporated in January 2011 4. Drive Aways
Counseling
5. Online done 1
 An integrated F&B retail session Ordering
venture that runs 6. Mobile Cafe
7. MediaNet – Fully
 Chain of Food Joints Marriages Digital
integrated 5
facilitated system for
Signage
 Café lounges
cafe to promote today’s
menu.
Core team 6

Currently, P2H is in the expansion stage and it seeks expansion capital from
©SENTINEL Consultants
investors.

A VISION GETS DEVELOPED…

©P2H Solutions Private Limited

According to a report by Technopak
Analysis, the market size of the food
service sector is estimated to be $8.1
billion by 2013 and $9.6 billion by 2018. It
is growing @ 5-6% per annum. Our Café H&W is a
market research suggests the following comprehensive
platform for the
shortcomings in the existing café culture: hospitality industry
a) Frozen food concept, not going down developed ground up
too well with customers. to bring two key
b) Limited Menu choices. reforms in the
c) Due to centralized supply, limited stock hospitality space – a.
Fresh Food in Café
availability. Culture b. Food
d) Poor hospitality. Quality of star hotels
in casual
environment of Café.

Objectives
The P2H Solutions has established three firm objectives it wishes to
achieve in the next Five years:

a. 150 Café Outlets, Lounges, Kiosks & Drive-Thrus across Asia &
Middle – East.
b. Gross Margin of 45% or more.
c. Net After-tax Profit above 15% of Sales.

Mission
The P2H Solutions Mission is three-fold, with each being as integral
to our success as the next.
Product Mission - Provide customers the finest quality food &
beverage in the most efficient time.
Social Mission – Contribute to the growth & development of the
societies.
Economic Mission - Operate and grow at a profitable rate through
sound economic decisions.

There are four keys to success in this business, three of which are
virtually the same as any food service business. It is our fourth key--
the Freshly Made Food in Café Environment--that will give us that
extra visibility in the public eye.

The greatest locations - visibility, high traffic pattern, convenient
access.

The best products - freshest coffee beans, food products, cleanest
equipment, premium serving containers, consistent flavor.

The friendliest staff - cheerful, skilled, professional, articulate.

The finest reputation - word-of-mouth advertising & promotions.

Café market
 Estimated at USD150mn

 >1200 cafes sprung across India in the
last decade
 Growing @ 40 per cent over the last
five years
Key Drivers:
 Industry estimates scope for additional
 Favorable demographics:
5000 outlets
>50per cent below 25yrs
 Café Coffee Day is the market leader in
 Higher disposable income
terms of revenues and retail footprint
(source: Coffee Board of India)  Changing values and
lifestyles
Online  Service standards/Value-for-
shopping money proposition
 Estimated at USD2bn
 Convenience and increase in
 Current online shopper base: 34.5mn internet usage
(was 28mn in 2010)

 Diverse market with many players spells
high competition

KEY COMPETITORS
 Café Coffee Day
The P2H Solutions considers itself to be a
 Barista player in the retail coffee house industry.
However, it knows it's primary competition will
 Costa Coffee come from three sources:
•Established brands such as Café Coffee
 Subway
Day, Barista, Costa Coffee, Starbucks and
 McDonalds Subway.

 Starbucks •Locally owned and operated cafes.

•Fast
Two things will make P2H Solutions standfood chains andits competitors:
out from all convenience stores.

1. The P2H Solutions will be providing products in the most convenient and efficient way available--
either at one of the two-sided Drive-thru shops, or at one of the Mobile Cafes. This separates
P2H from the competition in that its customers won't need to find a parking place, wait in a long
line, jockey for a seat, and clean up the mess left by a previous patron. P2H customers can drive
or walk up, order their food & beverage, receive and pay for it, and drive off.
2. The second differentiator is P2H Solutions' focus on bringing two key reforms in the hospitality
space – a. Fresh Food in Café Culture b. Food Quality of star hotels in casual environment of
Café.

The P2H Solutions provides its patrons the finest, freshly prepared
food along with hot and cold beverages, specializing in varieties of
sandwiches, rolls, desserts, specialty coffees and custom blended
teas. In addition, P2H keeps developing and adds seasonal and new
product choices to its menu.

P2H Solutions provides its customers the ability to custom order a
coffee beverage that will be blended to their exact specifications.
Each of P2H's Baristas will be trained in the fine art of brewing,
blending, and serving the highest quality hot and cold beverages as
well as fine preparation and presentation of food with exceptional
attention to detail.
Besides coffees, P2H Solutions will offer teas, varieties of sandwich,
rolls, desserts, frozen coffee beverages, seasonal specialty drinks,
pastries, and other baked goods. Through the website and certain
locations, P2H will market premium items such as coffee mugs, T-
shirts and sweatshirts, ball caps, and more such merchandize.

Nearly Sixteen years ago, a trend towards more unique coffees
began to develop in India. People began to have coffee tastings.
Then espresso bars began to appear and, inevitably, along came
Café Coffee Day ... the quintessential bastion of the upwardly
professional who wanted to take control over how their beverage
would taste and smell.

Lately, we've seen the introduction of beverage dispensers at
convenience stores that spit out overly-sweet, poorly blended
cappuccinos in flavors such as French vanilla or mocha, and
consumers are paying as much as $3.00 for these sub-standard
beverages.

The market is primed for the introduction of a company that offers a
superior quality, specially blended product in a convenient
environment at a price that is competitive to the leading coffee
houses.

P2H will focus on two market segments : Youngsters & Corporate. To
access both of these markets, P2H has two different delivery
systems. For the youngsters, P2H has the coffee house outlets and
kiosks. For the corporate, P2H has the Mobile Cafe.

Youngsters are defined as any one or more individuals in the age
group of 16-45 years and also include working professionals. This
market segment also covers the families.

Corporate Consumers would include those who are tethered to a
campus environment, or in a restricted entry environment that does
not allow free movement to and from. Examples would include
corporate campuses where the time constraints are involved, but
regarding meetings and project deadlines, and special events--such
as carnivals, fairs or festivals--where there is an admission price to
enter the gate, but exiting would mean another admission fee, or
where refreshments are an integral part of the festivities.

The cafe experience comes from the Italian origins of espresso. The
customer comes in to a beautifully decorated facility, surrounded by
wondrous aromas and finds himself involved in a sensory experience
that, more often than not, masks an average product at a premium
price. However, the proliferation of cafes in India proves the viability
of the market. It is a duplication of the same delivery process as
currently exists in Europe.

Market Needs
Our market is made up of consumers who have busy schedules, a
desire for quality, and disposable income. As much as they would like
the opportunity to sit in an upscale coffee house and sip a uniquely
blended coffee beverage and read the morning paper, they don't have
the time. However, they still have the desire for the uniquely blended
beverage & freshly prepared food as they hurry through their busy
lives.

Execution of the business plan depends on important assumptions, most of
which are shown in the following table. The key underlying assumptions
are:

1. P2H assumes a slow-growth economy, without major recession.

2. P2H assumes of course that there are no unforeseen changes in public
health perceptions of its products.

3. P2H assumes access to equity capital and financing sufficient to
maintain its financial plan.

©P2H Solutions Pvt. Ltd.

1. Mobile Cafes 1. Valued Image
2. Consistent Menu 2. Greater Product Selection
3. Community Benefit 3. More Substantial Customer Service
4. Quality Product 4. Selection
5. Supply Discounts 5. Higher Product Quality

P2H knows that once it has entered the market and established a presence, others will
try to follow. However, P2H believes that the corporate missions and even the
organizational design will be imitated, but never duplicated. P2H will constantly
evaluate its products, locations, service, and corporate missions to ensure that it
remains a leader in the specialty food & beverage industry.


The organization will be a relatively flat one and there will be a relatively low
headcount in management.

There are three functioning groups within the company: Production, Sales and
Marketing, General and Administrative.

Production involves the staff or Customer Service Specialists, who will be manning the
outlets and Mobile Cafes. Sales and Marketing will handle the promotion and
scheduling of the Cafes. General and Administrative manage the facilities, equipment,
inventory, payroll, and other basic, operational processes.


P2H expects the first year to be rather lean, since there will only be 15 locations, none
of which will be deployed for the entire year. The total headcount by the end of first
year, including management, administrative support, and customer service
(production), will be 50, with a payroll.

The second year, with the addition of 30 outlets, kiosks and mobile cafes, P2H will add
customer service personnel, as well as 2 zonal manager and some additional support
staff at headquarters, including an Inventory Assistant, Equipment Technician, and
administrative support. The headcount will increase by nearly 125% in the second year
to 145, with a proportional increase in payroll of and payroll burden.


The third year will see the most dramatic growth in headcount, due to the addition of
50 outlets including drive thrus, more kiosks and mobile units. In the third year, there
will also be an increase of 180% over the previous year. Total payroll and payroll
burden for the third year will reflect this, as well as the significant increase in the
senior management team, with the addition of a chief financial officer, and a director
of marketing. There will also be 2 more zonal manager, and a corporate events sales
executive. Total personnel will reach 351.

The chief financial officer will be brought on to oversee the increase in numbers of
retail outlets and to manage a dramatically more detailed P&L statement and to
manage the Balance Sheet. The chief executive officer will help us with the
deployment of a Point-of-Sale computerized cash register system that will make
tracking and managing receipts more robust. Ideally, this individual will have a large
amount of point of sale and Internet experience. Specifically, how to tie in POS
systems to the Internet and inventory controls. Also, knowledge in establishing
technology guidelines for the company and franchisees. The director of marketing will
be charged with managing the relationships with advertising agencies, public relations
firms, the media, and our website.

P2H's financial picture is quite promising. Since P2H is operating a cash business,
the initial cost is significantly less than many start-ups these days. The process is
labor intensive and P2H recognizes that a higher level of talent is required. The
financial investment in its employees will be one of the greatest differentiators
between it and P2H's competition. For the purpose of this pro-forma plan, the facilities
and equipment are financed. These items are capital expenditures and will be
available for financing. There will be a minimum of inventory on hand so as to keep
the product fresh and to take advantage of price drops, when and if they should occur.

P2H anticipates the initial combination of investments and long-term financing to carry
it without the need for any additional equity or debt investment, beyond the purchase
of equipment or facilities. This will mean growing a bit more slowly than might be
otherwise possible, but it will be a solid, financially sound growth based on customer
request and product demand.


This company is the brainchild of Mr. Arvind Singh, a hardcore entrepreneur and visionary, coming
with a Retail & hospitality background and Ms. Nidhi Shrivastava, an expert in media and
technology. These two co-own company and have bootstrapped it since inception. Currently, the
core team strength has grown to Six.

Arvind Singh

Managing Director
Post Graduate Diploma in Business Management from NMIMS, Mumbai, India.
Bachelor‟s degree in Arts, Economics & Political Science from renowned college - Uday Pratap
College.
18 years of Retail & Hospitality Industry experience. Has worked within the top management
capacity of the top brands of the Indian & European Packaging Industry. Handled large size
organizations, their complete Indian, Middle East And European Operations as well as
manufacturing units having team of more than 500 people. Also the Honorary member of
Management Committee at IIHM – Indian Institute of Hospitality & Management, Mumbai.
More Details About Him – www.arvindsingh.org
Role @ P2H - Looks after the product marketing, financials, accounting, Strategy and policy
making, operational management & Other management activities.


Nidhi Shrivastava

Director & CEO
Business Administration Graduate from Madurai University, India & Welingkar Management
Institute. First Generation Entrepreneur with more than 6 years of Media, Animation, Film & IT
industry experience. She has established an Animation Film Production company from scratch
and inked various deals with key players of the industry. Also worked with worlds top Hollywood
Visual Effects Company – Rhythm & Hues India for their OSCAR winning project – Golden
Compass and Alvin & The Chipmunks as Lighting Technical Director and CG Lighting Technical
Director on Walt Disney Films.
Role @ P2H - Responsible for strategy, complete technical & infrastructure development,
business partnership acquisitions, Media promotion, corporate communication, marketing
and advertising.

Peer Mohammed Ali Wangde

Executive Director
A senior insurance professional with 30 years of underwriting experience mainly underwriting
property and placement of reinsurance. Having spent major part of his professional life in the
middle east backed by a large client portfolio of world renowned names like Saudi Telecom, King
Abdul Aziz University, Mobily, King Fahad University, Petroloob etc.
Role@ P2H – Heading the administration and facility management.


Vijay Mali

Chief Chef

Acquired BHTMS – Bachelor‟s in Hotel & Tourism Management from Mumbai University with
more than 4 years experience in the kitchen technology and food product research. Having worked
at Ladeki Group of Restaurants, USA, and Curry Leaf Restaurants, Singapore, Vijay has been
exposed to the international hospitality practices and quality. Other than heading the chain of Café
H&W pan India basis, Vijay is also setting new benchmark with the improvements in the quality
and service bringing in international hospitality standards as a whole package.

Santosh Singh

Consultant

Law & Commerce Graduate holding B.com & LLB degree from Mumbai University..
10 years experience of serving large corporates like Heldon, Pillay & Co. as senior legal advisor
and also holds Legal Advisor position with Bombay Mercantile Bank.

Role @ P2H - Mr. Singh is currently on our advisory board and responsible for all legal
aspects.


Target Customers
Utmost care will be taken by the company
at the QA level during the infrastructure Year 3
setup so as to maintain quality and
standards across the chain. And the café
Year 2
services will be promoted by utilizing SEO
and social media marketing techniques
with outdoor advertising, TV broadcasting Year 1
and web promotion being the key drivers.
Users would be sought via advertisements 0 10000 20000 30000 40000 50000
(TV/print), referrals and cross-
promotions, discount schemes, flyers Others - Parents and guardians Teenagers
across target areas. This will be followed Students and faculty Working professionals
by press conferences and media
interviews at regular intervals. The
company will gain an edge over Est.customer base ('000)
competition by following the concept of 120
95.7
freshly prepared food which is not yet 106.3
90 77.6
being provided at other café chain ventures 86.2
and through creation of proprietary recipes 60
70
that could even satiate gourmet clientele
and wide choices on their menu. The 30
company will competitively price its
0
products, albeit maintain the appeal to the
Year 1 Year 2 Year 3 Year 4 Year 5
elite.

 Seeking expansion capital.
 The funds shall be raised in phases.

 The tenure of investment would be 10 years & upwards.


There are three scenarios for the investors and management to recover their
investment--two with significant returns on each dollar invested.
Scenario One:
P2H becomes extremely successful and has requests from other locals for its cafe operations to
be opened in their locality. This opens the door for franchising opportunity. When one looks at the
wealth that has been created by the likes of Cafe Coffee Day, Costa Coffee, Barista, Subway,
McDonald's and Kentucky Fried Chicken, , the value of franchising is a great idea cannot be
dismissed.

Scenario Two:
P2H chooses to become a Public Limited Company by obtaining required capital investment
through an IPO. This is the preferred Exit Strategy of the Investors & the Management Team.

Scenario Three:
By the third year, the growth and support for P2H will have made the news in more than just the
metropolitan area. It can be assumed that competitors will have seen the press and realized the
value proposition in P2H's business plan. This will make P2H an attractive target for buyout. The
company could be purchased by a much larger competitive concern by the end of the third year.
However, any buyout will most likely involve a cash/stock combination. A cash/stock buyout would
be favorable, since the buying company would pay a higher price and the transaction would not
have such severe tax consequences to the sellers.

THANK YOU

“The contents of this document are proprietary and confidential to P2H Solutions Private Limited and may not be
disclosed in whole or in part at any time, to any third party without the prior written consent of
P2H Solutions Private Limited.”

“© 2012 P2H Solutions Private Limited. All rights reserved. The material contained in the whole and any part of
this document belongs to P2H Solutions Private Limited. This work may not be used, sold, transferred, adapted,
abridged, copied or reproduced in whole or in part, in any manner or form, or in any media, without the prior
written consent of P2H Solutions Private Limited.”


P2 H Solutions Pvt. Ltd Company Business Plan 1

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