Kala Entertainments Limited: Online DVD Rental

Company
LOGO
Kala Entertainments Limited
Online DVD Rental
www.kaladvd.co.uk
www.company.com
Company
LOGO
Company Profile
• Kala Entertainments Limited (KEL) is

found and managed by Mr Kannan
Rasappan
• Started to trade on 14 Apr 2005
• Proven business model
• £70,000 new investment for expanding
the business
• Mission to grow customer base to
8,000 at the end of Year1
www.kaladvd.co.uk
www.company.com
Company
LOGO
How our service works?

www.kaladvd.co.uk
www.company.com
Company
LOGO
Membership Packages
• One Star
– Rent one DVD cyclic
– £9.99/m
• Two Star
– Rent two DVDs cyclic
– £14.99/m
• Three Star
– Rent three DVDs cyclic
– £19.99/m
• Pay As You Go
– £2.99/DVD
www.kaladvd.co.uk
www.company.com
Company
LOGO
Business To Date
• Personal Investment = £17,000

• Bank Loan = £15,000
• Paid Customers = 245
• Free Trial Customers = 50
• Marketing: Telesales & referrals
• Employees:
– Managing Director
– One Full-time Telesales cum Warehouse
Assistant
www.kaladvd.co.uk
www.company.com
Company
LOGO
The Opportunity
• 2.5 million South Asian population in UK

• BOLLYWOOD – second largest film industry
• No well organised film/DVD distribution
channel at present in UK
• 8,000 Customers at the end of Year1 is
highly feasible
• Helps people to rent DVDs at affordable rates
& by convenient means
• Welcoming response during Cold-calls sales
campaign
www.kaladvd.co.uk
www.company.com
Company
LOGO
The Competition
1) Cine Bazaar Ltd

• Costly rental
• At legal risk for distributing uncensored films in UK
market
2) EROS International Limited

• Basically a distributor of Bollywood films
• rents DVD only on “PAY PER VIEW” basis for £2.99
• doesn’t rent films of other distributors
www.kaladvd.co.uk
www.company.com
Company
LOGO
The Competition
Our Advantages
• We entertain both internet & non-internet users
• Customers manage their film list through Internet,
Post and Telephone
• Dedicated customer support – Call Centre is to provide
service from 19 Sep 2005
• Competitive rental prices
• Hollywood films to be added soon
• Good collection of Hindi & Tamil language films
• Prompt service through integration of technology
– CRM (Customer Relationship Management)
– Fuzzy Logic (Intelligent renting procedures)
www.kaladvd.co.uk
www.company.com
Company
LOGO
Future Developments
• Successfully outsource support & sales to Call

Centre
• Addition of Hollywood titles to our collection
• Starting DVD sales
• Acquire license from distributors to video stream
films on the internet
• Video stream famous TV serials with suitable
licenses
• Publishing South Asian Magazines on the internet
VISION
“ To be market leader in distributing Bollywood
Entertainments Media Worldwide “
www.kaladvd.co.uk
www.company.com
Company
LOGO
Financial Projections
• Breakeven at the end of month 10

• Profits 25%
• Turnover in Year1 = 0.4 Million
P&L Year 1
Gross Margin 287,000
PBT 149,000
Cash flow 212,000
www.kaladvd.co.uk
www.company.com
Company
LOGO
The Management
Kannan Rasappan Background

- Engineering Graduate from Cranfield University
- Has done extensive research on DVD rentals since Aug 2004
- Business plan as viewed by him can be realised with the help
of new investment
1) Management Team
- Kannan Rasappan & the Business Angel
- Contribute to top level decision making
- The business process is technologically driven
2) Warehouse Team
- Manager & 3-4 assistants
3) Sales & Support Team
- Manager & 4-5 agents
www.kaladvd.co.uk
www.company.com
Company
LOGO
The Investment
• New Investment = £70,000

• Spending
– Marketing Campaign
• Strong marketing campaign in London
Underground & Bus
• 35% South Asian live in Greater London
• Adverts in prominent Asian TV channels
• Internet Marketing in Asian focused web sites
– Hollywood Titles Addition
• Limited collection of 2,500 titles
– Warehousing Infrastructure
• Sophisticated Software
• Warehouse
• Equity Share = 30%
www.kaladvd.co.uk
www.company.com
Company
LOGO
Exit Routes
• At the end of Year 3, KEL has mission to grow

customer base to 30,000
• Value of KalaDVD at the end of Year3
– Subscription Based Valuation Model
Customers = 30,000
Av. Subscription fee = £12.00
Av. Subscription period = 24 months
Valuation = 30,000 * 12 * 24 = £ 8.64 Million
• Kannan Rasappan to be given option to BUY BACK

Shares at the end of Year3 from the Business Angel
www.kaladvd.co.uk
www.company.com
Company
LOGO
Thanks Everyone
Detailed Business Plan is

Available
www.kaladvd.co.uk
www.company.com

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Company

Kala Entertainments Limited

Online DVD Rental

• Kala Entertainments Limited (KEL) is

• Personal Investment = £17,000

• 2.5 million South Asian population in UK

1) Cine Bazaar Ltd

2) EROS International Limited

• Successfully outsource support & sales to Call

• Breakeven at the end of month 10

Kannan Rasappan Background

• New Investment = £70,000

• At the end of Year 3, KEL has mission to grow

Valuation = 30,000 * 12 * 24 = £ 8.64 Million

• Kannan Rasappan to be given option to BUY BACK

Detailed Business Plan is

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