INTRODUCTION
Every occasion in India is deemed to be celebrated in a grand style including birthday parties, festivals, especially marriages. These occasions sometimes can last for 2 weeks or even more. To make the arrangements to accommodate the guests invited for these celebrations, tents and decoration materials are required. Hence, tent houses in India are very profitable since tents are rented throughout the year to make these celebrations special. Tenting service-based enterprises provide a good business opportunity for aspiring entrepreneurs, especially in rural areas.
MARKET POTENTIAL
With the increasing income of the population in India, more people are spending on parties and festivities, particularly weddings, and as a result, the demand for tent houses is growing and will continue to expand in the coming years as the population grows (1.5 billion by 2030). Renting tents for small events has been a popular trend in both urban and rural India, resulting in a favorable environment for tent house enterprises in the country. With a total value of INR 3500 billion, India’s wedding decorating business is the world’s second-largest and is growing at a CAGR of 30%.
FUNDING SOURCE
Under the “Work 4 Progress” programme of the Development Alternatives Group, such enterprises have been financed by HDFC Bank, Canara Bank, Sankalp Swashakti Mahila Mandal, and Sakhi Saheli Tejaswini Mahasang (Cluster Level Federations), with an average loan size of INR 90,000.
BUSINESS ECONOMICS
FIXED CAPITAL (One Time Expenditure)
| EQUIPMENT & OTHER FIXED ASSETS | AMOUNT (in INR) |
| Tent House | 1,20,000 |
| Power Generator | 36,000 |
| Plastic chair (50 chairs @ INR 800/chair) | 40,000 |
| Lights (30 units @ INR 400/unit) | 12,000 |
| Extension board (5 units @ INR 1,400/unit) | 7,000 |
| Cushions (60 units @ INR 100/unit) | 6,000 |
| 8×20 sq ft Carpet (4 units @ INR 5,000/unit) | 20,000 |
| 5×150 sq ft Green Carpets (5 units @ INR 2,000/unit) | 10,000 |
| Fans (10 units @ INR 855/unit) | 8,550 |
| TOTAL | 2,59,550 |
WORKING CAPITAL (for a 2-month cycle)
| RAW MATERIAL & CONSUMABLES | AMOUNT (in INR) |
| 350m Ropes (45 pieces @ INR 150/unit) | 6,750 |
| STAFF AND LABOUR | AMOUNT (in INR) |
| Entrepreneur’s Salary (@ INR 10,000/month) | 30,000 |
| Five Part-time Workers (@INR 4,000/month) | 60,000 |
| UTILITIES | AMOUNT (in INR) |
| Electric Bill | 1,500 |
| Water | 600 |
| Fuel | 3,000 |
| Repair and maintenance | 6,000 |
| TOTAL | 1,07,850 |
FINANCIAL SUMMARY (Annual)
| FINANCIALS | AMOUNT (in INR) |
| Fixed Cost | 78,200 |
| Working Capital (for each cycle of 2 months duration) | 1,35,500 |
| Total Enterprise Cost | 2,13,700 |
| Annual Revenue | 8,35,800 |
| Total Expenditure (annual working capital) | 8,13,000 |
| Enterprise Profit | 22,800 |
| Payback Period (in months) | 41 |
BASIC ASSUMPTIONS
- Working days: 25 days per month (8 hours shift)
- Enterprise is operational throughout the year
- Loan not taken into account
- Revenue break-up for the cycle is as follows
| Products | Quantity | Selling Price/Product | Amount(in INR) |
| (in INR) | Amount | 500 | 50,000 |
| (in INR) | 30 | 2,000 | 60,000 |
| Car and Tube Tyre Replacement | 48 | 800 | 38,400 |
| Truck Tube Tyre Replacement | 12 | 1,200 | 14,400 |
| Puncture patch | 200 | 30 | 6,000 |
| Car Servicing | 40 | 1000 | 40,000 |
| Custom Repair Jobs (consultationand man hours, not including specialorders for parts) | 80 | 500 | 40,000 |
| Air Refilling | 100 | 5 | 500 |
Note: All figures mentioned are indicative and for reference purpose only. Development Alternatives Group bears no liability for accuracy. For any further information, please contact Development Alternatives on +91-11-2654-4100 or +91-11-2654-4200.
Star Entrepreneur
Mukesh Kushwaha always wanted to start his own business since he graduated. He attended ILO certified “Start Your Business” training, and set up his tenting service enterprise in 2018. With a micro loan of INR 30,000, he expanded his service portfolio by adding DJ service for marriages and other functions. Through the enterprise, Mukesh:
- Earns a monthly income of INR 28,000
- Employs 6 persons from his village
- Provides tenting services in 5 villages