1. Chulha A Case Discussion

2. National Entrepreneurship Network Context Typical situation you will face in your campus Students have an idea and either A) feel strongly about it but don’t know how to go about it OR B) have already done some research work and come to you to vet the idea

3. National Entrepreneurship Network Words of Caution for students If you are fundamentally in a lousy business, you will not get very far irrespective of the efforts and the talent. No matter how talented you are and how much capital you have, if you have not given your idea a rigorous, critical examination before starting out, you could be heading for a disaster. When you buy a car, you take it for a test ride. Why not do the same for your idea?

4. National Entrepreneurship Network The Case Chulha is a case of two techies who recognized an opportunity in a problem faced by themselves – unappetizing canteen food.

5. Is Chulha a viable business? National Entrepreneurship Network Based on the opportunity evaluation framework you have been introduced to and with the help of the checklist, evaluate if Chulha is a viable business.

6. Case Analysis National Entrepreneurship Network Market –Have the customers been clearly identified? –Is there a definite customer problem being solved? –Will the customers avail this tiffin service at this price? –Is the size of the target market substantial? –Is there enough potential for growth?

7. Case Analysis National Entrepreneurship Network Industry –Are you able to understand how this product is going to be delivered to target customers? –Are there substitutes for this product? –Is there anyone else already doing it? –Will it be difficult for others to replicate this business? –Does the business employ superior organisational processes, capabilities or resources that others would have difficulty in duplicating or imitating?

8. Industry Statistics National Entrepreneurship Network Food products are the biggest consumption category in India, with spending on food accounting for nearly 21% of GDP and 31% share of the consumer’s wallet India’s food industry is estimated at over USD182 billion, accounting for about two-thirds of the total retail sector CAGR of 6.4% from 2004-08 Expected to reach $300 billion by 2015 Largely unorganised industry [Source: India Food Report 2008]

9. National Entrepreneurship Network Case Analysis Team –Do the entrepreneurs have the skills to execute the idea? –Do they have a network that can benefit the business?

10. National Entrepreneurship Network Case Analysis Risk and Reward –Is it a highly risky business proposition? –Is the business profitable? Substantiate with calculations.

11. National Entrepreneurship Network Did you do your Math? Assumed monthly income for an IT professional20000 x 2 persons40000 VegNon-vegTotal Selling price of tiffin354580 Cost price of tiffin152035 Profit per tiffin set202545 Assuming 50 sets each of veg and non-veg sold per day (Total 100 sets) Total profit per day2250 Total profit per month (22 days)49500

12. National Entrepreneurship Network Chulha is a real business www.chulha.co.in

13. National Entrepreneurship Network Where is Chulha today? Started in April 2007 They have now expanded their operations, servicing more than 15 locations in Bangalore. They offer full Tiffin's as well as mini Tiffin's (both vegetarian and non-vegetarian), providing a non- standardised menu of variety of cuisines. They cater to corporate, PG accommodations, individual customers and private parties. Delivering Mouth-watering & Healthy Food to people in need of the same

14. National Entrepreneurship Network Key Learning's Asking the right questions while evaluating the opportunity Assessing the three main domains Market, Industry, Team Quick back of the envelope calculation.

15. National Entrepreneurship Network NEN Resources All materials used in this session are available in the NEN CD Kick-Starting the Entrepreneurial Campus under Inside the Classroom – section “Entrepreneurship Concepts”, subsection “How to evaluate opportunities”