Indian Tablet Market-Financial Projections

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Financial Projections
The Indian tablet market is expected to grow at a Compounded Annual Growth Rate (CAGR) of 40% over the next 5 years, a new study has said.  Tablet sales in India reached 475,000 units during 2011, said Cyber Media Research. In the developing world, and especially in India, a country where one billion people have a monthly income less than $200, every rupee matters. India has 900 million cell phone subscriptions, but in a country where smart phones are rare, 95% of Indians have no computing device. 

We are setting up a new plant which will be functional from end of the year 2012, we will raise the additional capital through IPO and this will further increases production capacity exponentially. Sticking to our core competency i.e.., delivering high featured tablet at low price, we will try to maximize the market share.

Budget Planning for the year 2012-13
1. Estimated Number of units sold = 20000
2. Whole sale price = Rs 7999
3. Base unit cost = Rs 4000
4. Gross sales (1*2) = Rs 159.9 million
5. Cost of goods sold (1*3) =Rs 80 million
6. Gross margin (4-5) = Rs 79.9 million

Expenses
1. Advertising = Rs 80 million
2. Sales promotion = Rs 20 million
3. R&D costs = Rs 100 million
4. Customer service = Rs 10 million
5. Sales force salary = Rs 20 million
Total expenses = Rs 230 million
Net Profit or Loss = Gross margin – Total Expenses
= (Rs 150.1 million) [ Loss]

Budget Planning for the year 2013-14
7. Estimated Number of units sold = 28000 [CAGR = 40% ] 8. Whole sale price = Rs 7999
9. Base unit cost =4000
10. Gross sales (1*2) = Rs 223.7 million
11. Cost of goods sold (1*3) = Rs 112 million
12. Gross margin (4-5) = Rs 111.7 million

Expenses
6. Advertising = Rs 50 million
7. Sales promotion = Rs 20 million
8. R&D costs = Rs 80 million
9. Customer service = Rs 10 million
10....
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