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
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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
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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
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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
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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
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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
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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
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Thanks Everyone

Detailed Business Plan is

Available

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