As for Ranchi, it has a population of 45L as per the last census taken in 2010. The year is 2020, and the company is looking to open a new footwear production factory. In Ranchi, Foot&Bros and Slipper&Sons are the current market leaders. Foot&Bros have been in business for 40+ years and have a 60% market share. In Ranchi, Slipper&Sons hold a 40% market share. Excess Industries expects to capture 25% of the former and 40% of the latter.
Factory lease (99 years) 99 Cr. Rent 1.5 L/month Electricity 10 units/footwear produced Electricity rate is 15 rupees per unit in Ranchi.
We will be sourcing our raw materials from two locations - nearby Kolkata (50%) and Patna (50%) . We understand that each shoe requires 10m of leather for manufacturing reasons. Wastage will be 10m per shoe.
Profit margin 20% . 

 Analyze and estimate the profitability, revenues and costs of Excess industries from the beginning of 2021 until 2021.

Answer rating: 100% (QA)

To estimate the profitability revenues and costs of Excess Industries in Ranchi we need to calculate the following Production capacity of the factory ... View the full answer