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Fri, 10/14/2022 - 16:08
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BERKLEE COLLEGE OF MUSIC
Culminating Experience - OUTCOME PAPER
ROHIN BACHWANI
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https://www.musicplus.in/indian-music-industry-grow-15-5-2023-kpmg/
https://www.ifpi.org/downloads/GMR2018.pdf
1 USD = 70 INR // 1 Euro = 80 INR
1
Index
1.
Executive Summary
2.
Company Overview
3.
4.
5.
6.
a.
Name/Brands
b.
Core Activity
Corporate Identity
a.
Mission Statement
b.
Values/Mantra
c.
Visual Identity
d.
Communication
Business Environment & Customer
a.
Value proposition
b.
Pricing Policy
c.
Marketing Positioning
d.
Customer Segmentation
e.
Customer Data
Environment Analysis
a.
Major Trends
b.
Market Size
c.
Business Competition
d.
Swot Analysis
Financial Projections
a.
Required Capital
b.
Pro-Forma Balance Sheet
c.
Pro-Forma Income Statement
d.
Pro-Forma Cash Statement
e.
Cash Burn Rate
7.
Risks
8.
Implementation Plan
9.
Appendix
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https://www.musicplus.in/indian-music-industry-grow-15-5-2023-kpmg/
https://www.ifpi.org/downloads/GMR2018.pdf
1 USD = 70 INR // 1 Euro = 80 INR
2
1. Executive Summary
The following business plan outlines the details of a start-up called ROBACH. This is
a limited liability company that provides musical artist with all the necessary tools
like management, booking agency and a record label to successfully penetrate the
music market, specifically India. We aim to globalize the Indian music community
through cross collaborations between Indian and western artists.
Unlike other artist management agencies, we handpick artists who are open to the
idea of collaborations. We further aim to focus on the management and development
of the Indian artists by providing artists with all tools required to be successful.
The ultimate aim is to export talented musicians in India to the world and allow
western producers to enter the rapidly growing market through cross collaborations.
ROBACH has the potential to grow not only globally but also expand further into
other management industries. Although, the market is competitive, we believe that
ROBACH’s values and beliefs along with precision in data analysis and finding right
trends in both markets, will allow it to compete and become a threat to the already
existing artist management companies and indie record labels. Below is a detailed
plan of the company environment, market analysis, financial projections and plan of
actions for ROBACH LLC.
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https://www.musicplus.in/indian-music-industry-grow-15-5-2023-kpmg/
https://www.ifpi.org/downloads/GMR2018.pdf
1 USD = 70 INR // 1 Euro = 80 INR
3
2. Company Overview
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Name/Brands
Legal Name:
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ROBACH, LLC
Brands:
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ROBACH – The Management Company
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ROBACH - The Booking agency
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BACHBEATS - The Record Label
The umbrella name of the company is ROBACH. All brands will fall under this name
i.e. The Booking Agency, The Management Company, and The Record Label. The
management division will be launched first and once we have signed 2-3 artists. The
Record label will be formed to release collaborations with western producers which
will eventually lead to the formation of the booking agency when the artist is ready to
begin touring.
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Sector
NAIC Code 2741, Services, Not Elsewhere Classified
Example of a company (Only Much Louder India)
Since ROBACH will offer multiple services like Artist Management, Record
Production, Consulting Services and Music Publishing it is the best umbrella term to
classify the company
1.
2.
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https://www.musicplus.in/indian-music-industry-grow-15-5-2023-kpmg/
https://www.ifpi.org/downloads/GMR2018.pdf
1 USD = 70 INR // 1 Euro = 80 INR
4
•
Legal form
Limited Liability Company
In order to remove personal liability and ensure that the company will be able to live
longer than the owner (me), ROBACH will be registered as an LLC.
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State of registration
ROBACH will be registered in my home state of Maharashtra, Mumbai, INDIA.
Since I live in Mumbai, it will be better to register my company in the same city.
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Core Activity/Competitive Advantage
At ROBACH we aim to globalize the Indian music community through cross
collaborations between Indian and western artists. Our goal is to find western
electronic music producers and get them in the studio with best of local/upcoming
talent in India, to create a fusion between western and regional music with dominating
Indian flavours. Once the record is ready we aim to release the track either on the inhouse record label BachBeats or license the records to other labels which would help
with a worldwide release. We further aim to focus on the management and
development of the Indian artists by providing artists with all tools required to be
successful. We will even focus on finding artists shows in the local and international
market by pitching them to festival and clubs.
Unlike other artist management agencies, we handpick artists who are open to the
idea of collaborations with western producers. Using our knowledge in data analytics
1.
2.
3.
https://www.musicplus.in/indian-music-industry-grow-15-5-2023-kpmg/
https://www.ifpi.org/downloads/GMR2018.pdf
1 USD = 70 INR // 1 Euro = 80 INR
5
we find current trends in the Indian and western market, we provide all the research to
the artists before they get into the studio to produce tracks based on a strategy.
We help bridge the gap between India and rest of the world through cross
collaborations, we aim to globalize the Indian music industry. We aim to break Indian
artists worldwide through this concept.
We are one stop for everything from producing a track, to marketing and promotions
of the record, to management and bookings for the artist. The artists just need to focus
on making a record and the rest is taken care by the company.
India is growing rapidly and with 25% of the world population living there we believe
many western producers will like to enter this fast growing market but our unware
about how to go about it, we help bridge this gap through finding the right
collaborations and bring an idea to reality
3. Corporate Identity
•
Main Stakeholders
The main stake holders are music producers, singers, songwriters, artist & label Managers,
administrative staff, equipment suppliers, music consumers, record labels, publishers, and
booking agents. In order for this business to work, I will need to have connections with many
parties and have several clients. Some of the artist collaborations and cross pollination
examples in the past which could act as guidance and point of reference to the company are
as follows
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https://www.musicplus.in/indian-music-industry-grow-15-5-2023-kpmg/
https://www.ifpi.org/downloads/GMR2018.pdf
1 USD = 70 INR // 1 Euro = 80 INR
6
1. Marshmellow and Pritam – Biba (https://www.youtube.com/watch?v=UhYRlI_bpJQ)
2. KSHMR ft. Sonu Nigam – Underwater
(https://www.youtube.com/watch?v=AnKvKo7VJqk)
3. Guru Randhwa ft. Pitbull – Slowly Slowly
(https://www.youtube.com/watch?v=hGsVLXnFgbA)
4. Arjun Vagale and Ramiro Lopez start a cross pollinized record label
(https://www.discogs.com/label/191540-Odd-Recordings)
People/Networks to Hustle: Saavn, Spotify India, T- series, Anna agency, OML, Stem,
Gaana, Bandwagon Recording studios, Anjunadeep, Involved group, Connected artists,
Represent management.
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Mission Statement
Our mission (The Company): Bridging the gap between Indian artists and rest of the
world through cross collaborations, we aim to produce records with a fusion of Indian
and western music which caters to both the markets. We research and analyse data to
find current trends in both the markets and produce a track based on a strategy.
Unlike other record labels, we handpick artists who are open to the idea of
collaborations with western producers. Using Data we find current trends in the
Indian and western market, we provide all the research to the artists before they get
into the studio to produce tracks based on a strategy.
1.
2.
3.
https://www.musicplus.in/indian-music-industry-grow-15-5-2023-kpmg/
https://www.ifpi.org/downloads/GMR2018.pdf
1 USD = 70 INR // 1 Euro = 80 INR
7
We further manage and develop the artist to provide all the tools required by the
artists to be successful, ones the artist has a few solid releases we prepare the artist for
touring and manage his bookings as well.
The ultimate aim is to globalize the Indian music community, export talented
musicians in India to the world and allow western producers to enter the rapaidly
growing market through cross collaborations.
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Values/Mantra
The core values that I would like to promote in ROBACH are:
Family is everything
Treat people with respect independent of their status or disagreement with you
Fear and failure are nothing more than rest stops on the road to success.
Contribute effectively outside of your specialty
Empower others, make leaders
Seek what is best for the company rather than best for yourself or your group
Be optimistic and enthusiastic about the progress
Inspire the world to try
Be the change you wish to see
Collaborate
Be Involved
Artist commitment
Our Mantra: Bridging the Gap
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https://www.musicplus.in/indian-music-industry-grow-15-5-2023-kpmg/
https://www.ifpi.org/downloads/GMR2018.pdf
1 USD = 70 INR // 1 Euro = 80 INR
8
We will bridge the gap between India and rest of the world through cross
collaborations between the artists and export Indian artists to the world by managing,
developing and providing them with all the tools required to be a worldwide success
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Visual Identity
Bridge the Gap between India and rest of the world. We aim to globalize the Indian
music community through cross collaborations between Indian and Western artists.
The company works on analysing trends in both the markets and find the right match
between the two artists and eventually get both the artists into the studio.
The company’s identity is to create quality music by finding young talented Indian
artists who are open to the idea of collaborations with western producers. We aim to
cater to both the markets through cross collaborations.
We help Indian artists realize they have a meaning and worth and help them find their
path to purpose and execute on it, We also help western producers enter into the
rapidly growing market and provide all the tools needed for them to be successful.
The brands visual identity is bespoke, exchange, affiliation, bold and confident.
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https://www.musicplus.in/indian-music-industry-grow-15-5-2023-kpmg/
https://www.ifpi.org/downloads/GMR2018.pdf
1 USD = 70 INR // 1 Euro = 80 INR
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Logos(s)
Main Logo
The Agency
The Record label
Colours
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https://www.musicplus.in/indian-music-industry-grow-15-5-2023-kpmg/
https://www.ifpi.org/downloads/GMR2018.pdf
1 USD = 70 INR // 1 Euro = 80 INR
10
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Primary: Black (#00000); White (#ffffff)
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Primary Logo Font: Serif
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Website Text: Sans Serif
Fonts
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Communication
The form of communication will be through the company’s website and social media
channels
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Printed:
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Business Cards
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Printed USB cards
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Stickers
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T-shirts
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Customized phone hand holders
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Caps
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Phone Card holders
Digital:
o Social Media
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Instagram - @ROHBACH
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Twitter - @ROHBACH
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Facebook - @ROHBACH
o Social Media (Record Label)
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https://www.musicplus.in/indian-music-industry-grow-15-5-2023-kpmg/
https://www.ifpi.org/downloads/GMR2018.pdf
1 USD = 70 INR // 1 Euro = 80 INR
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§
Instagram - @BachBeats
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Twitter - @Bachbeats
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Facebook - @BachBeats
o Website : www.robach.com
3. Business Environment/Customer
•
Value Proposition
We help bridge the gap between India and rest of the world through cross collaborations, we
handpick Indian artists who are open to the idea of collaborations with western producers.
Using our knowledge in data analytics we find current trends in both the markets and provide
all research to the artists before they get into the studio. We are one stop for everything from
producing a track, to marketing and promotions of the record, to management and bookings
for the artist. The artists just need to focus on making a record and the rest is taken care by the
company.
Value to Artists (Pains and Gains):
Cross collaborations help artists tap into each other’s market which gives them access to a
newer set of audiences, India is growing rapidly and with 25% of the world population living
here we believe many western producers will like to enter this rapidly growing market but are
unaware about how to go about it, We believe India has many unique artists and their music
could be heard around the world but not having any cultural resemblance many labels do not
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3.
https://www.musicplus.in/indian-music-industry-grow-15-5-2023-kpmg/
https://www.ifpi.org/downloads/GMR2018.pdf
1 USD = 70 INR // 1 Euro = 80 INR
12
tend to sign these artists or import their music. However, through cross collaborations and
finding artists of the right calibre we can overcome this barrier and globalize Indian music
industry and take Indian artists to the world.
We further aim to focus on the management and development of the Indian artists by providing
artists with all tools required to be successful. Unlike other artist management agencies, we
handpick artists who are open to the idea of collaborations with western producers. Having a
good team is the difference between a successful and unsuccessful career. We would connect
artists with our network that we trust and have a strong relationship with that would provide
significant value to the artist both in the short term as well as the long term. We will also focus
on finding artists shows in the local and international market by pitching them to festival and
clubs.
Using Data, we find current trends in the Indian and western market, we provide all the research
to the artists before they get into the studio to produce tracks based on a strategy. The artist’s
work to create a fusion between western and regional music with dominating Indian flavors.
Once the record is ready we aim to release the track either on the in-house record label
BachBeats or license the records to other labels which would help with a worldwide release.
The initial cost of renting the studios, making the records, marketing the records, paying
producer advances, marketing, publishing and distribution is going to be taken care by the
record label in return for owning the masters of track by the company, depending on the deal
with the respective artists and producers.
The company has three divisions which helps the artist grow rapidly in his career, in-house
record label, a management company and a booking agency. The above-mentioned services
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https://www.musicplus.in/indian-music-industry-grow-15-5-2023-kpmg/
https://www.ifpi.org/downloads/GMR2018.pdf
1 USD = 70 INR // 1 Euro = 80 INR
13
and products are the main source of gains delivered to the artists, however they also act as
pain relievers.
The main pains that we relieve can be best summarized in 3 categories:
The fears and emotional obstacles associated by Indian artists performing outside their home
territory, that can be possible when artists have a fan base outside their home country which is
possible to achieve through cross collaborations between Indian and western artists.
Export of Indian music is possible through the inhouse label which will help the artists get a
wider reach in terms of their audience. This includes the intense competitive environment and
flood of artists also trying to get their music heard by western labels.
The initial cost of renting the studios, making the records, marketing the records, paying
producer advances, marketing, publishing and distribution is going to be taken care by the
record label, most of the artists are unable to make these investment commitments but we take
the risk of producing record backed by our data strategy and help artists achieve their dreams
•
Pricing Policy
ROBACH management - We will take 10-15% of artist net income for managing the artist and
delivering all the tools required for the artist to be successful, the percentage varies depending
if the artist is in his early carrier stage or already a successful name
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https://www.musicplus.in/indian-music-industry-grow-15-5-2023-kpmg/
https://www.ifpi.org/downloads/GMR2018.pdf
1 USD = 70 INR // 1 Euro = 80 INR
14
ROBACH agency - The revenue model of the booking agency is based on commission
percentage from the artist performance fee roughly 10-12%. If the artist is managed by the
company we could work a bundle deal for management and booking agency of 20% or more
BachBeats - The initial cost of renting the studios, making the records, marketing the records,
paying producer advances, marketing, publishing and distribution is going to be taken care by
the record label in return for owning the masters of track by the company, depending on the
deal with the respective artists and producers. We could even look at licensing deal with the
artist, where the label owns the master rights up to 10 years. The deal could even be a
combination of royalty split and flat fee, it completely depends upon the artist
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Market Positioning
The below strategy clock (figure 1) illustrates how we map our offer in comparison to others
in the market place. In relation to both our substitutes and our direct competitors, we are a
combination of a low price and disruptive offering. We disrupt the business models of our
substitutes (labels and management agencies) by offering a combination of their core offerings
and bridge the gap between India and rest of the world through cross collaboration.
We are low price in comparison to competitors like Azadi Records, Soupherb Records, and
differentiated in quality from direct competitors like Represent Management. This puts us in a
slightly different position on the clock depending on the competitor, but overall, our aim is to
globalize the Indian music community, export talented musicians in India to the world and
allow western producers to enter the rapidly growing market through cross collaborations.
1.
2.
3.
https://www.musicplus.in/indian-music-industry-grow-15-5-2023-kpmg/
https://www.ifpi.org/downloads/GMR2018.pdf
1 USD = 70 INR // 1 Euro = 80 INR
15
Figure 1
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Customer Segmentation
Our target buyer can best be described as unsigned emerging Indian artists or successful artists
who are looking for collaborations with western producers and are willing to export their music
outside India. The following are key areas in segmenting these customers:
Demographic/Geographic: He/she is an Indian artist and is willing to collaborate with western
producers to export their music outside India, In case of the western artist, he/she is willing to
collaborate with the Indian artists and is willing to produce a record with dominating Indian
flavours which would help the western artist make relevance in the Indian market. This is
somewhat of a requirement.
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https://www.musicplus.in/indian-music-industry-grow-15-5-2023-kpmg/
https://www.ifpi.org/downloads/GMR2018.pdf
1 USD = 70 INR // 1 Euro = 80 INR
16
Economic: Although this is a very common area for customer segmentation, it is not for
ROBACH. We do not have any preference over artists’ level of income. We are looking for
talented artists who may be just starting of their career or already successful in the scene. We
are appealing to artists of almost any economic class, as long as they are talented and passionate
about achieving their dreams.
Psychographic: Socio-economically, they are considered “skilled workers” (good musicians).
We want to target talented musicians that have the most potential for commercial success. We
want the artist to be open minded and to collaborate amongst each other to create fusion,
experimental music which shows the cross collaborations effort and gives the audience
something fresh that they haven’t heard before
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Customer Data
We are currently in the process of surveying our potential customers. Questionnaire for the
survey are below
Questionnaire for Western artist
1. Would you ever collaborate with an artist based in India?
2. Do you consider India as important market for your music/genre?
3. Would you like to start a label with an Indian artist?
4. Do you think your tracks combined with Indian vocals could cater to the Indian
market?
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https://www.musicplus.in/indian-music-industry-grow-15-5-2023-kpmg/
https://www.ifpi.org/downloads/GMR2018.pdf
1 USD = 70 INR // 1 Euro = 80 INR
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5. Are you signed to record label?
Questionnaire for Indian artists
1. Would you ever collaborate with an artist based outside India?
2. Would you like to start a label with artists outside India?
3. Would you like to play shows outside India? (If he/she is a performing artist)
4. Do you think your tracks combined with pop/western beats could be exported
outside India?
5. Are you signed to record label?
4. Business Environment
4.1 Major Trends
India is a developing and upcoming market, with 25% of the world’s population living in India.
Digital Service Providers have understood that the importance of this rapidly growing market.
“As per reports if just 1% of its Indian users started paying for YouTube Music, that’s nearly
2.5 million new subscribers. Paid subscribers provide a stable source of revenue for the DSP’s
but unfortunately, In India, less than 1 per cent of the subscribers are paid users and nearly 14
per cent subscribers are bundled users; the remaining 85 per cent of users are on free
subscription.1 The habit of paying for music among Indian consumers is very new and most of
them don’t believe in ever paying for music till the time YouTube exists.
I personally feel with Spotify launching in India less than a month ago, gives Indian artists a
platform for their music to be heard all around the world. It is the right time for a company like
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https://www.musicplus.in/indian-music-industry-grow-15-5-2023-kpmg/
https://www.ifpi.org/downloads/GMR2018.pdf
1 USD = 70 INR // 1 Euro = 80 INR
18
ROBACH to start which will allow western producers to collaborate with Indian artists and
enter into the rapidly growing market. Artists have recently started making money from
streaming and its self-explanatory that India is going to be majority source of Income for the
artists.
Main Macro Trend Threats:
1. Indian artists are not appreciated in the west due to lack of cultural resemblances
2. The existence of piracy: Piracy is always a threat to reducing the value of the music
industry and thus our potential revenues
Industry Trend Opportunities:
1. Labels signing fewer artists and taking less risks
2. Launch of major DSP’s such as Spotify
3. Major Festivals such as Tomorrowland, Elrow, Ultra music festival, Don’t let Daddy
Know doing big festivals in India
4. Lack of Indie labels in India
5. DIY artists can upload their music to Spotify and achieve a worldwide reach without
going through the major labels
6. More revenue streams in the music industry for artists to take advantage of (such as
streaming services, YouTube partnerships, festivals, Kickstarter campaigns, branding
opportunities, and more
7. More supply of artists and access to music, creating an oversaturation of talent in the
market, causing many good artists to "slip through the cracks" unnoticed by fans and
labels.
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https://www.musicplus.in/indian-music-industry-grow-15-5-2023-kpmg/
https://www.ifpi.org/downloads/GMR2018.pdf
1 USD = 70 INR // 1 Euro = 80 INR
19
8. Labels are taking less risk by signing artists who are more already established, and
signing fewer and fewer artists.
Industry Trend Threats:
1. Lack of appreciation for fusion and experimental music, people think of artists as
brands and its sometimes difficult from drive the audience from mainstream music to
experimental and fusion
2. Herd mentality is very common amongst the India music consumers and most of the
audience are passive music listeners and are not enthusiastic to find new music
3. YouTube generates 40% of Indian labels digital revenue and habit of paying for music
among the Indian audience is very new.
4.2 Market Size:
Our market is comprised of all musicians in and outside India who are willing to collaborate
with each other:
1
“According to the KPMG (Klynveld Peat Marwick Goerdeler)’s Indian Media and
Entertainment Report 2018, the size of the Indian music industry in 2018 is reported as ₹14.4
billion which is 14.7% more when compared to the size of the industry in 2017”1.
2
” Streaming revenues grew by 38.2% and increased at a strong rate in most markets, including
India (60.8%) as per IFPI report.”2
Value Chain Analysis: Robach helps globalize the Indian Music Industry and take Indian artists
to the world. Robach adds value to artists management, artist development, booking agencies,
Indie labels. This involves companies that help artists and creatives effectively use a high level
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https://www.musicplus.in/indian-music-industry-grow-15-5-2023-kpmg/
https://www.ifpi.org/downloads/GMR2018.pdf
1 USD = 70 INR // 1 Euro = 80 INR
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of effort, skill, and resources in order to create better products and services that entertain and
satisfy consumers.
Suppliers: Artists are the primary suppliers and provide the “raw materials” (in the form of
music, albums, talent, potential, career ambition, etc.) to our company and we find the right
match for collaborations and help export the music outside India and allow western artists to
enter into India. They are the main external supply source.
4.3 Business Competition
After analysing the marketplace of our target customer segments, we found that the highest
priorities for them in terms of product offering are
1) Cross Collaborations is a must between artists
2) We are one stop for everything (Record label, artist management agency, booking
agents)
3) We use data to find current trends in markets and provide artists with all research before
they get into the studio
Taking that information into account, we were able to build a competitive landscape with
both our substitute competition and our direct competition
(outlined in figure 2)
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3.
https://www.musicplus.in/indian-music-industry-grow-15-5-2023-kpmg/
https://www.ifpi.org/downloads/GMR2018.pdf
1 USD = 70 INR // 1 Euro = 80 INR
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4.4 Swot Analysis
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https://www.musicplus.in/indian-music-industry-grow-15-5-2023-kpmg/
https://www.ifpi.org/downloads/GMR2018.pdf
1 USD = 70 INR // 1 Euro = 80 INR
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5. Financial Projections
3
“Please note since the company will be registered in Mumbai, India all the financial
projections have been made in the local Indian currency (Rupees). Kindly check the footnotes
for conversion rates in Us dollar and Euro”3
•
Required Capital
Outlined below is the projected required capital for the first 12 months of starting ROBACH.
As you will see, the costs outlined include the essential operating and capital expenses
needed to start the company in Mumbai, India. The team will consist of the CEO, one parttime assistant who will assist in Artist Research (track sales, radio airplay, streaming review,
touring history, top performing markets, etc.), one part time accountant who will help with
providing artists monthly income statements and generating invoices to clients.
Explanation of my Hypothesis
1. Legal and Accounting - The company will hire an accountant on part time basis to send
artists their monthly account statements, send invoices to clients and take note of all the
company expenses to send yearly account statements to the charted accountant who
will file the tax returns at the end of the financial year
2. Advertising - Google Add words and Facebook posts will be boosted depending on
album releases, tours and artist announcements and collaborations. I have taken 1 post
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https://www.musicplus.in/indian-music-industry-grow-15-5-2023-kpmg/
https://www.ifpi.org/downloads/GMR2018.pdf
1 USD = 70 INR // 1 Euro = 80 INR
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per week and allocated a budget of Rs 2,100 approx. per post and a yearly budget of Rs
1,00,000
3. Rent - I will initially be working out of a desk at co sharing work space called WeWork
which will give access to printing, stationery, conference room, electricity, furniture
and more
4.
Business Cards- Out of my past experience, 200 Business cards cost about Rs 1000
with design and printing. I have provided a link of the source above
5.
Initially I will only invest in Chartmetric to gather data to forecast the trend of the
artists and the music industry and will share the login with my personal assistant who
will help me with the following
a. Compile weekly artist updates (pull streaming stats, key highlights, radio airplay,
chart positions)
b. Tracking Reports (pull daily streaming data across platforms to track single)
c. Artist Research (track sales, radio airplay, streaming review, touring history, top
performing markets, etc.)
6. The average salary for an artist manager starts between 20,000 - 50,000 per month. I
have accounted to be in the middle with Rs 40,000 and I will be paying 10,000 to a
personal assistant part time
7. Registration and Trademark - I will be registering a private limited liability company in
India which cost between 14,000-15,000 in India. The one-time cost to purchase a
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https://www.musicplus.in/indian-music-industry-grow-15-5-2023-kpmg/
https://www.ifpi.org/downloads/GMR2018.pdf
1 USD = 70 INR // 1 Euro = 80 INR
24
trademark is between 8,000-10,000. I have double checked these costs with the Charted
Accountant and also provided links for the same. If I choose to register the company
and trademark through the Charted Accountant it will cost me an additional of Rs
10,000
Total Required Capital = Twelve Months of Fixed
Expenses + Asset Purchases + Startup Expenses
Amount
For 12
Explanation
Per Month
Months (RS)
of this
(RS)
Operating
Monthly Fixed Expenses:
Expenses
Accounting Software
(OPEX)
hypothesis
₹
₹
Quickbooks
416.58
4,999.00
Indian
Webiste
Accounting & End of the
₹
₹
Previous
Year Tax Services
10,000.00
1,20,000.00
experiennce
with a CA in
mumbai
Marketing and Advertising
₹
₹
Google
8,333.33
1,00,000.00
adwords and
Facebook
post boost one
per week
1.
2.
3.
https://www.musicplus.in/indian-music-industry-grow-15-5-2023-kpmg/
https://www.ifpi.org/downloads/GMR2018.pdf
1 USD = 70 INR // 1 Euro = 80 INR
25
Rent
₹
₹
We Work
25,000.00
3,00,000.00
Desk in
Mumbai
Supplies/Stationary/Business
₹
₹
Cards/Flyers
1,000.00
12,000.00
Telephone & Utilities
₹
₹
Using my
1,666.67
20,000.00
personal
Inkmonk
number for
business
initially
Internet & Web-Hosting
Electricity
₹
₹
Wix.com
745.00
8,940.00
(India)
₹
₹
Included in
-
-
the WeWork
desk plan
₹
₹
Chartmetric +
4,649.00
55,788.00
Dropbox
Salaries (include owner)
₹
₹
Owner Salary
Payroll Taxes at 12%
50,000.00
6,00,000.00
+ Personal
Subscription for software
Assistant
salary
1.
2.
3.
Monthly Fixed Expenses
₹
Sub-total (I)
1,01,810.58 12,21,727.00
https://www.musicplus.in/indian-music-industry-grow-15-5-2023-kpmg/
https://www.ifpi.org/downloads/GMR2018.pdf
1 USD = 70 INR // 1 Euro = 80 INR
26
₹
Capital
Expenses
Asset Purchases:
(CAPEX)
Software and Apps
Computers
₹
₹
-
-
₹
₹
Using
-
-
personal
Computer
initially
Furniture etc.
₹
₹
Included in
-
-
the WeWork
desk plan
Asset Purchase Sub-Total
₹
(II)
-
Startup Expenses You Pay
Private
Once:
limited
Company cost
Trademark & Business
₹
Registration
25,000.00
Legal and Accounting
₹
Paid to the
Organization Costs
10,000.00
Charted
Trade mark
Accountant
for
registration
1.
2.
3.
https://www.musicplus.in/indian-music-industry-grow-15-5-2023-kpmg/
https://www.ifpi.org/downloads/GMR2018.pdf
1 USD = 70 INR // 1 Euro = 80 INR
27
Licenses and Permits (PRO
₹
₹
Blanket Licenses & Stock
-
-
Startup Expenses You Pay
₹
₹
Once Sub-total (III)
35,000.00
35,000.00
TOTAL EXPENSES
₹
₹
(I+II+III)
1,36,810.58 12,56,727.00
Contingency (10%)
₹
Exchange)
₹
1,50,491.64 13,82,399.70
•
Total Estimated Cash Needed to Start For
₹
12 Months (TOTAL EXPENSES +10%)
13,82,399.70
Daily Cash
₹
Burn rate
3,787.40
Pro-Forma Balance Sheet
The balance sheet outlined below accounts year 1. I will start the company when I have at
least 2 artists ready to sign with company/agency who are interested in cross collaborations
and our well established in India. The artists should at least be generating an income of Rs
4,00,000 each per month before the agency gets them on board. My commission will be 15%
on their net profit. I aim to sign a third artist by the end of 6 months, so by the end of the first
year I have 3 artists (being optimistic). In year 2, I will work towards increasing the artists
1.
2.
3.
https://www.musicplus.in/indian-music-industry-grow-15-5-2023-kpmg/
https://www.ifpi.org/downloads/GMR2018.pdf
1 USD = 70 INR // 1 Euro = 80 INR
28
income to Rs 5,00,000 per month. In year 3, I will aim to get artists at least Rs 6,00,000 per
month and also hope to get a fourth artist signed to company.
“The investment made in the second year is into a record label which is started between
ROBACH LLC and Nicole Casino’s LLC in Los Angeles to promote collaborations between
India and western artists” The start-up financials for the record label will be mentioned at the
end.
Balance Sheet (on DECEMBER 2020)
Year 1
Year 2
Year 3
₹
₹
₹
19,85,609.35
22,47,000.45
44,90,791.55
₹
₹
8,48,400.00
8,48,400.00
ASSETS
1 Current Assets
Investments into N&R
Label
Accounts receivable
₹
-
Inventories
₹
-
Prepaid expenses
₹
-
2 Fixed Assets
1.
2.
3.
https://www.musicplus.in/indian-music-industry-grow-15-5-2023-kpmg/
https://www.ifpi.org/downloads/GMR2018.pdf
1 USD = 70 INR // 1 Euro = 80 INR
29
Building
₹
-
Equipment
₹
-
Accumulated
depreciation
3 Intangibles
₹
₹
-
4 TOTAL ASSETS
₹
₹
₹
19,85,609.35
30,95,400.45
53,39,191.55
₹
₹
₹
14,00,000.00
14,00,000.00
14,00,000.00
LIABILITIES and
OWNER'S EQUITY
5 Current Liabilities
Accounts payable
Accrued expenses
payable
6 Long-term Liabilities
Bank loans
7 Owner's Equity
Investments made into
N&R label
Invested Capital
1.
2.
3.
₹
-
https://www.musicplus.in/indian-music-industry-grow-15-5-2023-kpmg/
https://www.ifpi.org/downloads/GMR2018.pdf
1 USD = 70 INR // 1 Euro = 80 INR
30
₹
₹
₹
earnings
5,85,609.35
16,95,400.45
39,39,191.55
Total Owner's Equity
₹
₹
₹
19,85,609.35
30,95,400.45
53,39,191.55
₹
₹
₹
19,85,609.35
30,95,400.45
53,39,191.55
Accumulated retained
8 TOTAL LIABILITIES
and EQUITY
•
Pro-Forma Income Statement
This income statement is based on the expenses needed to start the company as well as the
following logic for the revenue every year as this business can be considered seasonal:
1st Year (6months) Commission earned - 1,20,000 (60,000 each) 2 Artists
1st Year (Second half) Commission earned - 1,80,000(60,000 each) 3 Artists
2nd Year Commission earned - 2,25,000(75,000 each) 3 Artists
3rd Year Commission earned - 3,60,000(90,000 each) 4 artists
After the first year, we predict that the artists income will increase by 25% every year from
all possible income streams (streaming, live shows and brand endorsements)
Also, I hope to sign one new artist to our rooster every year and I don’t see myself managing
more than 4 artists at ones without getting more employees to the company.
The tax bracket in Mumbai, India is based on slabs depending upon the income made in the
annual year. The slabs are as follows
1.
2.
3.
https://www.musicplus.in/indian-music-industry-grow-15-5-2023-kpmg/
https://www.ifpi.org/downloads/GMR2018.pdf
1 USD = 70 INR // 1 Euro = 80 INR
31
Up to 2,50,000 – 0
2,00,000 – 5,00,000 is 5%
5,00,000 – 10,00,000 is 20%
Above 10,00,000 is 30%
For the first year the income minus 2,50,000 which is the Tax-exempt amount, it fall under
the first slab. The remaining two years we fall under the 30% bracket but I aim to do fiscal
optimization.
Income Statement (As of DECEMBER 2019)
Year 1
Year 2
Year 3
₹
₹
₹
18,60,000.00
27,00,000.00
43,20,000.00
₹
₹
₹
18,60,000.00
27,00,000.00
43,20,000.00
- Administrative
₹
₹
₹
Expense / SG&A
12,56,727.00
12,21,727.00
12,21,727.00
- Depreciation
₹
Expenses
₹
₹
₹
6,03,273.00
14,78,273.00
30,98,273.00
1 Revenue
- Cost of Sales /
COGS
2 GROSS PROFIT
3 OPERATING
PROFIT (EBIT)
1.
2.
3.
https://www.musicplus.in/indian-music-industry-grow-15-5-2023-kpmg/
https://www.ifpi.org/downloads/GMR2018.pdf
1 USD = 70 INR // 1 Euro = 80 INR
32
-/+ Dividends and
₹
₹
Interest Income
-
-
- Interest Expense
₹
₹
-
-
₹
₹
₹
6,03,273.00
14,78,273.00
30,98,273.00
₹
₹
₹
17,663.65
3,68,481.90
8,54,481.90
₹
₹
₹
5,85,609.35
11,09,791.10
22,43,791.10
4 PROFIT BEFORE
TAXES
Goods and Services
Tax
Taxes
5 NET PROFIT
•
Pro-Forma Cash Flow Statement
1st Year (6months) Commission earned - 1,20,000 (60,000 each) 2 Artists
1st Year (Second half) Commission earned - 1,80,000(60,000 each) 3 Artists
2nd Year Commission earned - 2,25,000(75,000 each) 3 Artists
3rd Year Commission earned - 3,60,000(90,000 each) 4 artists
Total amount for the 1st year is (6months x 1,20,000) + (1,80,000 x 6months) = 18,60, 000
Total amount for the 2nd year is 12 months x 2,25,000 = 27,00,000
1.
2.
3.
https://www.musicplus.in/indian-music-industry-grow-15-5-2023-kpmg/
https://www.ifpi.org/downloads/GMR2018.pdf
1 USD = 70 INR // 1 Euro = 80 INR
33
Total amount for the 3rd year is 12 months x 3,60,000 = 43,20,000
Investments made into N&R label of 12120 USD which is Rs 8,48,400
The start-up cost of ROBACH of Rupees 35,000 has been removed from the SG&A in the
second and third year as those costs have only been made in the first year.
Cash-Flow Statement (as of DECEMBER 2019)
Year 1
Year 2
Year 3
₹
₹
₹
18,60,000.00
27,00,000.00
43,20,000.00
₹
₹
₹
18,60,000.00
27,00,000.00
43,20,000.00
INFLOW AND
OUTFLOW
1 Funds provided by:
Receipts #1
Rrevenu from gigs
Invested Capital
TOTAL FUNDS IN
2 Funds used for:
Cost of goods
acquired
1.
2.
3.
https://www.musicplus.in/indian-music-industry-grow-15-5-2023-kpmg/
https://www.ifpi.org/downloads/GMR2018.pdf
1 USD = 70 INR // 1 Euro = 80 INR
34
₹
Investments
8,48,400.00
SG&A
₹
₹
₹
12,56,727.00
12,21,727.00
12,21,727.00
₹
₹
₹
17,663.65
3,68,481.90
8,54,481.90
₹
₹
₹
5,85,609.35
2,61,391.10
22,43,791.10
Interest expense
Taxes
Building and
equipemnt
Long-term debt
reduction
Distribution owners
3 NET CHANGE IN
CASH POSITION
(Total Funds In - Total
Funds Out)
CHANGES BY
ACCOUNT
4 Changes in Liquid
Assets
Cash
Investment Portfolios
TOTAL CHANGES
1.
2.
3.
https://www.musicplus.in/indian-music-industry-grow-15-5-2023-kpmg/
https://www.ifpi.org/downloads/GMR2018.pdf
1 USD = 70 INR // 1 Euro = 80 INR
35
5 `NET CHANGE IN
CASH POSITION
₹
₹
₹
19,85,609.35
22,47,000.45
44,90,791.55
(Total Funds In - Total
Funds Out)
•
Cash Burn Rate
This is the projected cash burn rate for the first 12 months of business. As you will see, we
will incur the most costs pre-start up in order to start the business properly.
In addition, we have
Cash-Flow Statement (For the first 6-month)
Pre-Startup
Month 1
Month 2
Month 3
₹
1,20,000.00
₹
1,20,000.00
₹ 14,00,000.00
₹ 14,00,000.00
₹
1,20,000.00
₹
1,20,000.00
₹
₹
1,01,810.58
₹
1,01,810.58
₹
35,000.00
-
₹ 13,65,000.00
₹
₹
-
18,189.42
₹
₹
-
₹
₹
₹
Month 4
1,20,000.00
1,01,810.58
-
18,189.42
₹
18,189.42
₹ 14,01,378.83
₹
14,19,568.25
Month 5
Month 6
Month 7
Month 8
Month 9
Month 10
Month 11
Month 12
Total
₹
1,20,000.00
₹
1,20,000.00
₹
1,80,000.00
₹
1,80,000.00
₹
1,80,000.00
₹
1,80,000.00
₹
1,80,000.00
₹
1,80,000.00
₹
1,80,000.00
₹
1,20,000.00
₹
1,20,000.00
₹
1,80,000.00
₹
1,80,000.00
₹
1,80,000.00
₹
1,80,000.00
₹
1,80,000.00
₹
1,80,000.00
₹
1,80,000.00
₹
1,01,810.58
₹
1,01,810.58
₹
1,01,810.58
₹
1,01,810.58
₹
1,01,810.58
₹
1,01,810.58
₹
1,01,810.58
₹
1,01,810.58
₹
1,01,810.58
₹
₹
-
18,189.42
₹
₹
-
18,189.42
₹
₹
-
78,189.42
₹
₹
-
₹
-
78,189.42
₹
78,189.42
₹ 16,12,325.92
₹
16,90,515.33
₹
₹
-
78,189.42
₹
₹
-
78,189.42
₹
₹
-
78,189.42
₹
₹
-
78,189.42
₹ 14,00,000.00
₹ 13,65,000.00
₹ 13,83,189.42
1.
2.
3.
₹ 14,37,757.67
₹ 14,55,947.08
https://www.musicplus.in/indian-music-industry-grow-15-5-2023-kpmg/
https://www.ifpi.org/downloads/GMR2018.pdf
1 USD = 70 INR // 1 Euro = 80 INR
₹ 15,34,136.50
36
₹ 17,68,704.75
₹ 18,46,894.17
₹ 19,25,083.58
₹ 20,03,273.00
₹
18,60,000.00
₹
12,56,727.00
₹
-
5. Risks
The biggest risk associated with this project is signing artists. Because ROBACH is a
services-based company, we will rely heavily on artist in order to gain revenue to grow the
company. We will need minimum of 2 artists having an average monthly income of 4 lakhs
before we have them signed to the company
While we have projected what we think is realistic for the number of Artists we can acquire
yearly, there is still a risk that we could fall short of our projections. It may be possible we
are not able to increase the artist income by 25% per year
We are confident that we have the ability to attract these artists, also once the Label is started
in the second year we can add more value proposition to the artists and help them reach a
wider audience and increase their annual growth and income
Please check below for Nicole’s and Rohin’s Label financials
PHASE 1
Total Required Capital = Twelve Months of Fixed
Expenses + Asset Purchases + Startup Expenses
Amount
For 12
Per
Months
Month
Monthly Fixed Expenses:
1.
2.
3.
https://www.musicplus.in/indian-music-industry-grow-15-5-2023-kpmg/
https://www.ifpi.org/downloads/GMR2018.pdf
1 USD = 70 INR // 1 Euro = 80 INR
37
Explanation of this
hypothesis
Accounting Software
$7.13
$14.26 Quickbooks website
$8.00
$100.00 Past experience with
(QuickBooks)
Accounting & End of the
Year Tax Services
Marketing and Advertising
Tax accountant
$834.00 $10,000.00 Google AdWords and
Facebook post boost one
per week
Rent
$0.00
$0.00 Working from Home
and not claiming
anything, Maybe later
Operating
we claim 11% of
Expenses
Nicole's home which is
(OPEX)
our working space
Supplies/Stationary/Business
$8.30
$100.00 Vista Print.com
Cards/Flyers
Telephone & Utilities
$0.00
$0.00 Using our personal
numbers initially
Internet & Web-Hosting
2
Electricity
Salaries (include owner)
$0.00
24 Domain cost on Wix
$0.00
$843.30 $10,120.00 Each owner making
Payroll Taxes at 12%
Monthly Fixed Expenses
$5,000 in salary per year
$1,702.73 $20,358.26
Sub-total (I)
Asset Purchases:
1.
2.
3.
https://www.musicplus.in/indian-music-industry-grow-15-5-2023-kpmg/
https://www.ifpi.org/downloads/GMR2018.pdf
1 USD = 70 INR // 1 Euro = 80 INR
38
Software and Apps
240 Splice Website,
Dropbox Storage
Computers
MacBook Air
Refurbished
Furniture etc.
Copier
Asset Purchase Sub-Total
$240.00
(II)
Startup Expenses You Pay
Capital
Once:
Expenses
Trademark & Business
$325.00 smallbusiness.chron.com
(CAPEX)
Registration
Legal and Accounting
$1,113.00 Source: Legal Zoom
Organization Costs
Licenses and Permits (PRO
$0.00
Blanket Licenses & Stock
Exchange)
Startup Expenses You Pay
$1,678.00
Once Sub-total (III)
TOTAL EXPENSES
$22,036.26
(I+II+III)
Contingency (10%)
1.
2.
3.
https://www.musicplus.in/indian-music-industry-grow-15-5-2023-kpmg/
https://www.ifpi.org/downloads/GMR2018.pdf
1 USD = 70 INR // 1 Euro = 80 INR
$24,239.89
39
$839.00
Total Estimated Cash Needed to Start
$24,239.89
$12,119.94
For 12 Months (TOTAL EXPENSES
+10%)
Per company
Daily
$66.41
cash burn
rate
6. Implementation Plan
Below, is a carefully outlined implementation plan that will take in order to successfully launch
the start-up, ROBACH. These steps will include the necessary activities I will need to carry
out in order to have ROBACH operating.
Date of Implementation
Action Step
Explanation
17th Feb 2019
Name
Establish the beginning
Sector Code
stages of the overall idea
Vision and Mission
and concept
encompassing ROBACH
1.
2.
3.
https://www.musicplus.in/indian-music-industry-grow-15-5-2023-kpmg/
https://www.ifpi.org/downloads/GMR2018.pdf
1 USD = 70 INR // 1 Euro = 80 INR
40
21st March 2019
21st April 2019
Value Proposition,
Identifying and stating the
Market Positioning,
aim of ROBACH and its
Pricing Policy
offering
Financial Projections
Financial Projections for
the first three years and
stating the amount of
money required to start
ROBACH
3rd May 2019
Executive Summary,
Summing up the business
Completion of the
plan and stating the
Business plan
Executive summary and
Implementation plan
18th July
Registration of the
company
1.
2.
3.
https://www.musicplus.in/indian-music-industry-grow-15-5-2023-kpmg/
https://www.ifpi.org/downloads/GMR2018.pdf
1 USD = 70 INR // 1 Euro = 80 INR
41
Registering the company
7. Appendix
Below you can see the profitability of ROBACH over the first three years
Below you can see the liquidity of the company over the first three years
Current Assets
₹ 50,00,000.00
₹ 40,00,000.00
₹ 44,90,791.55
₹ 30,00,000.00
₹ 20,00,000.00
₹ 22,47,000.45
₹ 10,00,000.00
₹ 19,85,609.35
₹1
1.
2.
3.
https://www.musicplus.in/indian-music-industry-grow-15-5-2023-kpmg/
https://www.ifpi.org/downloads/GMR2018.pdf
1 USD = 70 INR // 1 Euro = 80 INR
2
42
3
Thank You
1.
2.
3.
https://www.musicplus.in/indian-music-industry-grow-15-5-2023-kpmg/
https://www.ifpi.org/downloads/GMR2018.pdf
1 USD = 70 INR // 1 Euro = 80 INR
43
Culminating Experience - OUTCOME PAPER
ROHIN BACHWANI
1.
2.
3.
https://www.musicplus.in/indian-music-industry-grow-15-5-2023-kpmg/
https://www.ifpi.org/downloads/GMR2018.pdf
1 USD = 70 INR // 1 Euro = 80 INR
1
Index
1.
Executive Summary
2.
Company Overview
3.
4.
5.
6.
a.
Name/Brands
b.
Core Activity
Corporate Identity
a.
Mission Statement
b.
Values/Mantra
c.
Visual Identity
d.
Communication
Business Environment & Customer
a.
Value proposition
b.
Pricing Policy
c.
Marketing Positioning
d.
Customer Segmentation
e.
Customer Data
Environment Analysis
a.
Major Trends
b.
Market Size
c.
Business Competition
d.
Swot Analysis
Financial Projections
a.
Required Capital
b.
Pro-Forma Balance Sheet
c.
Pro-Forma Income Statement
d.
Pro-Forma Cash Statement
e.
Cash Burn Rate
7.
Risks
8.
Implementation Plan
9.
Appendix
1.
2.
3.
https://www.musicplus.in/indian-music-industry-grow-15-5-2023-kpmg/
https://www.ifpi.org/downloads/GMR2018.pdf
1 USD = 70 INR // 1 Euro = 80 INR
2
1. Executive Summary
The following business plan outlines the details of a start-up called ROBACH. This is
a limited liability company that provides musical artist with all the necessary tools
like management, booking agency and a record label to successfully penetrate the
music market, specifically India. We aim to globalize the Indian music community
through cross collaborations between Indian and western artists.
Unlike other artist management agencies, we handpick artists who are open to the
idea of collaborations. We further aim to focus on the management and development
of the Indian artists by providing artists with all tools required to be successful.
The ultimate aim is to export talented musicians in India to the world and allow
western producers to enter the rapidly growing market through cross collaborations.
ROBACH has the potential to grow not only globally but also expand further into
other management industries. Although, the market is competitive, we believe that
ROBACH’s values and beliefs along with precision in data analysis and finding right
trends in both markets, will allow it to compete and become a threat to the already
existing artist management companies and indie record labels. Below is a detailed
plan of the company environment, market analysis, financial projections and plan of
actions for ROBACH LLC.
1.
2.
3.
https://www.musicplus.in/indian-music-industry-grow-15-5-2023-kpmg/
https://www.ifpi.org/downloads/GMR2018.pdf
1 USD = 70 INR // 1 Euro = 80 INR
3
2. Company Overview
•
Name/Brands
Legal Name:
•
ROBACH, LLC
Brands:
•
ROBACH – The Management Company
•
ROBACH - The Booking agency
•
BACHBEATS - The Record Label
The umbrella name of the company is ROBACH. All brands will fall under this name
i.e. The Booking Agency, The Management Company, and The Record Label. The
management division will be launched first and once we have signed 2-3 artists. The
Record label will be formed to release collaborations with western producers which
will eventually lead to the formation of the booking agency when the artist is ready to
begin touring.
•
Sector
NAIC Code 2741, Services, Not Elsewhere Classified
Example of a company (Only Much Louder India)
Since ROBACH will offer multiple services like Artist Management, Record
Production, Consulting Services and Music Publishing it is the best umbrella term to
classify the company
1.
2.
3.
https://www.musicplus.in/indian-music-industry-grow-15-5-2023-kpmg/
https://www.ifpi.org/downloads/GMR2018.pdf
1 USD = 70 INR // 1 Euro = 80 INR
4
•
Legal form
Limited Liability Company
In order to remove personal liability and ensure that the company will be able to live
longer than the owner (me), ROBACH will be registered as an LLC.
•
State of registration
ROBACH will be registered in my home state of Maharashtra, Mumbai, INDIA.
Since I live in Mumbai, it will be better to register my company in the same city.
•
Core Activity/Competitive Advantage
At ROBACH we aim to globalize the Indian music community through cross
collaborations between Indian and western artists. Our goal is to find western
electronic music producers and get them in the studio with best of local/upcoming
talent in India, to create a fusion between western and regional music with dominating
Indian flavours. Once the record is ready we aim to release the track either on the inhouse record label BachBeats or license the records to other labels which would help
with a worldwide release. We further aim to focus on the management and
development of the Indian artists by providing artists with all tools required to be
successful. We will even focus on finding artists shows in the local and international
market by pitching them to festival and clubs.
Unlike other artist management agencies, we handpick artists who are open to the
idea of collaborations with western producers. Using our knowledge in data analytics
1.
2.
3.
https://www.musicplus.in/indian-music-industry-grow-15-5-2023-kpmg/
https://www.ifpi.org/downloads/GMR2018.pdf
1 USD = 70 INR // 1 Euro = 80 INR
5
we find current trends in the Indian and western market, we provide all the research to
the artists before they get into the studio to produce tracks based on a strategy.
We help bridge the gap between India and rest of the world through cross
collaborations, we aim to globalize the Indian music industry. We aim to break Indian
artists worldwide through this concept.
We are one stop for everything from producing a track, to marketing and promotions
of the record, to management and bookings for the artist. The artists just need to focus
on making a record and the rest is taken care by the company.
India is growing rapidly and with 25% of the world population living there we believe
many western producers will like to enter this fast growing market but our unware
about how to go about it, we help bridge this gap through finding the right
collaborations and bring an idea to reality
3. Corporate Identity
•
Main Stakeholders
The main stake holders are music producers, singers, songwriters, artist & label Managers,
administrative staff, equipment suppliers, music consumers, record labels, publishers, and
booking agents. In order for this business to work, I will need to have connections with many
parties and have several clients. Some of the artist collaborations and cross pollination
examples in the past which could act as guidance and point of reference to the company are
as follows
1.
2.
3.
https://www.musicplus.in/indian-music-industry-grow-15-5-2023-kpmg/
https://www.ifpi.org/downloads/GMR2018.pdf
1 USD = 70 INR // 1 Euro = 80 INR
6
1. Marshmellow and Pritam – Biba (https://www.youtube.com/watch?v=UhYRlI_bpJQ)
2. KSHMR ft. Sonu Nigam – Underwater
(https://www.youtube.com/watch?v=AnKvKo7VJqk)
3. Guru Randhwa ft. Pitbull – Slowly Slowly
(https://www.youtube.com/watch?v=hGsVLXnFgbA)
4. Arjun Vagale and Ramiro Lopez start a cross pollinized record label
(https://www.discogs.com/label/191540-Odd-Recordings)
People/Networks to Hustle: Saavn, Spotify India, T- series, Anna agency, OML, Stem,
Gaana, Bandwagon Recording studios, Anjunadeep, Involved group, Connected artists,
Represent management.
•
Mission Statement
Our mission (The Company): Bridging the gap between Indian artists and rest of the
world through cross collaborations, we aim to produce records with a fusion of Indian
and western music which caters to both the markets. We research and analyse data to
find current trends in both the markets and produce a track based on a strategy.
Unlike other record labels, we handpick artists who are open to the idea of
collaborations with western producers. Using Data we find current trends in the
Indian and western market, we provide all the research to the artists before they get
into the studio to produce tracks based on a strategy.
1.
2.
3.
https://www.musicplus.in/indian-music-industry-grow-15-5-2023-kpmg/
https://www.ifpi.org/downloads/GMR2018.pdf
1 USD = 70 INR // 1 Euro = 80 INR
7
We further manage and develop the artist to provide all the tools required by the
artists to be successful, ones the artist has a few solid releases we prepare the artist for
touring and manage his bookings as well.
The ultimate aim is to globalize the Indian music community, export talented
musicians in India to the world and allow western producers to enter the rapaidly
growing market through cross collaborations.
•
Values/Mantra
The core values that I would like to promote in ROBACH are:
Family is everything
Treat people with respect independent of their status or disagreement with you
Fear and failure are nothing more than rest stops on the road to success.
Contribute effectively outside of your specialty
Empower others, make leaders
Seek what is best for the company rather than best for yourself or your group
Be optimistic and enthusiastic about the progress
Inspire the world to try
Be the change you wish to see
Collaborate
Be Involved
Artist commitment
Our Mantra: Bridging the Gap
1.
2.
3.
https://www.musicplus.in/indian-music-industry-grow-15-5-2023-kpmg/
https://www.ifpi.org/downloads/GMR2018.pdf
1 USD = 70 INR // 1 Euro = 80 INR
8
We will bridge the gap between India and rest of the world through cross
collaborations between the artists and export Indian artists to the world by managing,
developing and providing them with all the tools required to be a worldwide success
•
Visual Identity
Bridge the Gap between India and rest of the world. We aim to globalize the Indian
music community through cross collaborations between Indian and Western artists.
The company works on analysing trends in both the markets and find the right match
between the two artists and eventually get both the artists into the studio.
The company’s identity is to create quality music by finding young talented Indian
artists who are open to the idea of collaborations with western producers. We aim to
cater to both the markets through cross collaborations.
We help Indian artists realize they have a meaning and worth and help them find their
path to purpose and execute on it, We also help western producers enter into the
rapidly growing market and provide all the tools needed for them to be successful.
The brands visual identity is bespoke, exchange, affiliation, bold and confident.
1.
2.
3.
https://www.musicplus.in/indian-music-industry-grow-15-5-2023-kpmg/
https://www.ifpi.org/downloads/GMR2018.pdf
1 USD = 70 INR // 1 Euro = 80 INR
9
Logos(s)
Main Logo
The Agency
The Record label
Colours
1.
2.
3.
https://www.musicplus.in/indian-music-industry-grow-15-5-2023-kpmg/
https://www.ifpi.org/downloads/GMR2018.pdf
1 USD = 70 INR // 1 Euro = 80 INR
10
•
Primary: Black (#00000); White (#ffffff)
•
Primary Logo Font: Serif
•
Website Text: Sans Serif
Fonts
•
Communication
The form of communication will be through the company’s website and social media
channels
-
-
Printed:
•
Business Cards
•
Printed USB cards
•
Stickers
•
T-shirts
•
Customized phone hand holders
•
Caps
•
Phone Card holders
Digital:
o Social Media
§
Instagram - @ROHBACH
§
Twitter - @ROHBACH
§
Facebook - @ROHBACH
o Social Media (Record Label)
1.
2.
3.
https://www.musicplus.in/indian-music-industry-grow-15-5-2023-kpmg/
https://www.ifpi.org/downloads/GMR2018.pdf
1 USD = 70 INR // 1 Euro = 80 INR
11
§
Instagram - @BachBeats
§
Twitter - @Bachbeats
§
Facebook - @BachBeats
o Website : www.robach.com
3. Business Environment/Customer
•
Value Proposition
We help bridge the gap between India and rest of the world through cross collaborations, we
handpick Indian artists who are open to the idea of collaborations with western producers.
Using our knowledge in data analytics we find current trends in both the markets and provide
all research to the artists before they get into the studio. We are one stop for everything from
producing a track, to marketing and promotions of the record, to management and bookings
for the artist. The artists just need to focus on making a record and the rest is taken care by the
company.
Value to Artists (Pains and Gains):
Cross collaborations help artists tap into each other’s market which gives them access to a
newer set of audiences, India is growing rapidly and with 25% of the world population living
here we believe many western producers will like to enter this rapidly growing market but are
unaware about how to go about it, We believe India has many unique artists and their music
could be heard around the world but not having any cultural resemblance many labels do not
1.
2.
3.
https://www.musicplus.in/indian-music-industry-grow-15-5-2023-kpmg/
https://www.ifpi.org/downloads/GMR2018.pdf
1 USD = 70 INR // 1 Euro = 80 INR
12
tend to sign these artists or import their music. However, through cross collaborations and
finding artists of the right calibre we can overcome this barrier and globalize Indian music
industry and take Indian artists to the world.
We further aim to focus on the management and development of the Indian artists by providing
artists with all tools required to be successful. Unlike other artist management agencies, we
handpick artists who are open to the idea of collaborations with western producers. Having a
good team is the difference between a successful and unsuccessful career. We would connect
artists with our network that we trust and have a strong relationship with that would provide
significant value to the artist both in the short term as well as the long term. We will also focus
on finding artists shows in the local and international market by pitching them to festival and
clubs.
Using Data, we find current trends in the Indian and western market, we provide all the research
to the artists before they get into the studio to produce tracks based on a strategy. The artist’s
work to create a fusion between western and regional music with dominating Indian flavors.
Once the record is ready we aim to release the track either on the in-house record label
BachBeats or license the records to other labels which would help with a worldwide release.
The initial cost of renting the studios, making the records, marketing the records, paying
producer advances, marketing, publishing and distribution is going to be taken care by the
record label in return for owning the masters of track by the company, depending on the deal
with the respective artists and producers.
The company has three divisions which helps the artist grow rapidly in his career, in-house
record label, a management company and a booking agency. The above-mentioned services
1.
2.
3.
https://www.musicplus.in/indian-music-industry-grow-15-5-2023-kpmg/
https://www.ifpi.org/downloads/GMR2018.pdf
1 USD = 70 INR // 1 Euro = 80 INR
13
and products are the main source of gains delivered to the artists, however they also act as
pain relievers.
The main pains that we relieve can be best summarized in 3 categories:
The fears and emotional obstacles associated by Indian artists performing outside their home
territory, that can be possible when artists have a fan base outside their home country which is
possible to achieve through cross collaborations between Indian and western artists.
Export of Indian music is possible through the inhouse label which will help the artists get a
wider reach in terms of their audience. This includes the intense competitive environment and
flood of artists also trying to get their music heard by western labels.
The initial cost of renting the studios, making the records, marketing the records, paying
producer advances, marketing, publishing and distribution is going to be taken care by the
record label, most of the artists are unable to make these investment commitments but we take
the risk of producing record backed by our data strategy and help artists achieve their dreams
•
Pricing Policy
ROBACH management - We will take 10-15% of artist net income for managing the artist and
delivering all the tools required for the artist to be successful, the percentage varies depending
if the artist is in his early carrier stage or already a successful name
1.
2.
3.
https://www.musicplus.in/indian-music-industry-grow-15-5-2023-kpmg/
https://www.ifpi.org/downloads/GMR2018.pdf
1 USD = 70 INR // 1 Euro = 80 INR
14
ROBACH agency - The revenue model of the booking agency is based on commission
percentage from the artist performance fee roughly 10-12%. If the artist is managed by the
company we could work a bundle deal for management and booking agency of 20% or more
BachBeats - The initial cost of renting the studios, making the records, marketing the records,
paying producer advances, marketing, publishing and distribution is going to be taken care by
the record label in return for owning the masters of track by the company, depending on the
deal with the respective artists and producers. We could even look at licensing deal with the
artist, where the label owns the master rights up to 10 years. The deal could even be a
combination of royalty split and flat fee, it completely depends upon the artist
•
Market Positioning
The below strategy clock (figure 1) illustrates how we map our offer in comparison to others
in the market place. In relation to both our substitutes and our direct competitors, we are a
combination of a low price and disruptive offering. We disrupt the business models of our
substitutes (labels and management agencies) by offering a combination of their core offerings
and bridge the gap between India and rest of the world through cross collaboration.
We are low price in comparison to competitors like Azadi Records, Soupherb Records, and
differentiated in quality from direct competitors like Represent Management. This puts us in a
slightly different position on the clock depending on the competitor, but overall, our aim is to
globalize the Indian music community, export talented musicians in India to the world and
allow western producers to enter the rapidly growing market through cross collaborations.
1.
2.
3.
https://www.musicplus.in/indian-music-industry-grow-15-5-2023-kpmg/
https://www.ifpi.org/downloads/GMR2018.pdf
1 USD = 70 INR // 1 Euro = 80 INR
15
Figure 1
•
Customer Segmentation
Our target buyer can best be described as unsigned emerging Indian artists or successful artists
who are looking for collaborations with western producers and are willing to export their music
outside India. The following are key areas in segmenting these customers:
Demographic/Geographic: He/she is an Indian artist and is willing to collaborate with western
producers to export their music outside India, In case of the western artist, he/she is willing to
collaborate with the Indian artists and is willing to produce a record with dominating Indian
flavours which would help the western artist make relevance in the Indian market. This is
somewhat of a requirement.
1.
2.
3.
https://www.musicplus.in/indian-music-industry-grow-15-5-2023-kpmg/
https://www.ifpi.org/downloads/GMR2018.pdf
1 USD = 70 INR // 1 Euro = 80 INR
16
Economic: Although this is a very common area for customer segmentation, it is not for
ROBACH. We do not have any preference over artists’ level of income. We are looking for
talented artists who may be just starting of their career or already successful in the scene. We
are appealing to artists of almost any economic class, as long as they are talented and passionate
about achieving their dreams.
Psychographic: Socio-economically, they are considered “skilled workers” (good musicians).
We want to target talented musicians that have the most potential for commercial success. We
want the artist to be open minded and to collaborate amongst each other to create fusion,
experimental music which shows the cross collaborations effort and gives the audience
something fresh that they haven’t heard before
•
Customer Data
We are currently in the process of surveying our potential customers. Questionnaire for the
survey are below
Questionnaire for Western artist
1. Would you ever collaborate with an artist based in India?
2. Do you consider India as important market for your music/genre?
3. Would you like to start a label with an Indian artist?
4. Do you think your tracks combined with Indian vocals could cater to the Indian
market?
1.
2.
3.
https://www.musicplus.in/indian-music-industry-grow-15-5-2023-kpmg/
https://www.ifpi.org/downloads/GMR2018.pdf
1 USD = 70 INR // 1 Euro = 80 INR
17
5. Are you signed to record label?
Questionnaire for Indian artists
1. Would you ever collaborate with an artist based outside India?
2. Would you like to start a label with artists outside India?
3. Would you like to play shows outside India? (If he/she is a performing artist)
4. Do you think your tracks combined with pop/western beats could be exported
outside India?
5. Are you signed to record label?
4. Business Environment
4.1 Major Trends
India is a developing and upcoming market, with 25% of the world’s population living in India.
Digital Service Providers have understood that the importance of this rapidly growing market.
“As per reports if just 1% of its Indian users started paying for YouTube Music, that’s nearly
2.5 million new subscribers. Paid subscribers provide a stable source of revenue for the DSP’s
but unfortunately, In India, less than 1 per cent of the subscribers are paid users and nearly 14
per cent subscribers are bundled users; the remaining 85 per cent of users are on free
subscription.1 The habit of paying for music among Indian consumers is very new and most of
them don’t believe in ever paying for music till the time YouTube exists.
I personally feel with Spotify launching in India less than a month ago, gives Indian artists a
platform for their music to be heard all around the world. It is the right time for a company like
1.
2.
3.
https://www.musicplus.in/indian-music-industry-grow-15-5-2023-kpmg/
https://www.ifpi.org/downloads/GMR2018.pdf
1 USD = 70 INR // 1 Euro = 80 INR
18
ROBACH to start which will allow western producers to collaborate with Indian artists and
enter into the rapidly growing market. Artists have recently started making money from
streaming and its self-explanatory that India is going to be majority source of Income for the
artists.
Main Macro Trend Threats:
1. Indian artists are not appreciated in the west due to lack of cultural resemblances
2. The existence of piracy: Piracy is always a threat to reducing the value of the music
industry and thus our potential revenues
Industry Trend Opportunities:
1. Labels signing fewer artists and taking less risks
2. Launch of major DSP’s such as Spotify
3. Major Festivals such as Tomorrowland, Elrow, Ultra music festival, Don’t let Daddy
Know doing big festivals in India
4. Lack of Indie labels in India
5. DIY artists can upload their music to Spotify and achieve a worldwide reach without
going through the major labels
6. More revenue streams in the music industry for artists to take advantage of (such as
streaming services, YouTube partnerships, festivals, Kickstarter campaigns, branding
opportunities, and more
7. More supply of artists and access to music, creating an oversaturation of talent in the
market, causing many good artists to "slip through the cracks" unnoticed by fans and
labels.
1.
2.
3.
https://www.musicplus.in/indian-music-industry-grow-15-5-2023-kpmg/
https://www.ifpi.org/downloads/GMR2018.pdf
1 USD = 70 INR // 1 Euro = 80 INR
19
8. Labels are taking less risk by signing artists who are more already established, and
signing fewer and fewer artists.
Industry Trend Threats:
1. Lack of appreciation for fusion and experimental music, people think of artists as
brands and its sometimes difficult from drive the audience from mainstream music to
experimental and fusion
2. Herd mentality is very common amongst the India music consumers and most of the
audience are passive music listeners and are not enthusiastic to find new music
3. YouTube generates 40% of Indian labels digital revenue and habit of paying for music
among the Indian audience is very new.
4.2 Market Size:
Our market is comprised of all musicians in and outside India who are willing to collaborate
with each other:
1
“According to the KPMG (Klynveld Peat Marwick Goerdeler)’s Indian Media and
Entertainment Report 2018, the size of the Indian music industry in 2018 is reported as ₹14.4
billion which is 14.7% more when compared to the size of the industry in 2017”1.
2
” Streaming revenues grew by 38.2% and increased at a strong rate in most markets, including
India (60.8%) as per IFPI report.”2
Value Chain Analysis: Robach helps globalize the Indian Music Industry and take Indian artists
to the world. Robach adds value to artists management, artist development, booking agencies,
Indie labels. This involves companies that help artists and creatives effectively use a high level
1.
2.
3.
https://www.musicplus.in/indian-music-industry-grow-15-5-2023-kpmg/
https://www.ifpi.org/downloads/GMR2018.pdf
1 USD = 70 INR // 1 Euro = 80 INR
20
of effort, skill, and resources in order to create better products and services that entertain and
satisfy consumers.
Suppliers: Artists are the primary suppliers and provide the “raw materials” (in the form of
music, albums, talent, potential, career ambition, etc.) to our company and we find the right
match for collaborations and help export the music outside India and allow western artists to
enter into India. They are the main external supply source.
4.3 Business Competition
After analysing the marketplace of our target customer segments, we found that the highest
priorities for them in terms of product offering are
1) Cross Collaborations is a must between artists
2) We are one stop for everything (Record label, artist management agency, booking
agents)
3) We use data to find current trends in markets and provide artists with all research before
they get into the studio
Taking that information into account, we were able to build a competitive landscape with
both our substitute competition and our direct competition
(outlined in figure 2)
1.
2.
3.
https://www.musicplus.in/indian-music-industry-grow-15-5-2023-kpmg/
https://www.ifpi.org/downloads/GMR2018.pdf
1 USD = 70 INR // 1 Euro = 80 INR
21
4.4 Swot Analysis
1.
2.
3.
https://www.musicplus.in/indian-music-industry-grow-15-5-2023-kpmg/
https://www.ifpi.org/downloads/GMR2018.pdf
1 USD = 70 INR // 1 Euro = 80 INR
22
5. Financial Projections
3
“Please note since the company will be registered in Mumbai, India all the financial
projections have been made in the local Indian currency (Rupees). Kindly check the footnotes
for conversion rates in Us dollar and Euro”3
•
Required Capital
Outlined below is the projected required capital for the first 12 months of starting ROBACH.
As you will see, the costs outlined include the essential operating and capital expenses
needed to start the company in Mumbai, India. The team will consist of the CEO, one parttime assistant who will assist in Artist Research (track sales, radio airplay, streaming review,
touring history, top performing markets, etc.), one part time accountant who will help with
providing artists monthly income statements and generating invoices to clients.
Explanation of my Hypothesis
1. Legal and Accounting - The company will hire an accountant on part time basis to send
artists their monthly account statements, send invoices to clients and take note of all the
company expenses to send yearly account statements to the charted accountant who
will file the tax returns at the end of the financial year
2. Advertising - Google Add words and Facebook posts will be boosted depending on
album releases, tours and artist announcements and collaborations. I have taken 1 post
1.
2.
3.
https://www.musicplus.in/indian-music-industry-grow-15-5-2023-kpmg/
https://www.ifpi.org/downloads/GMR2018.pdf
1 USD = 70 INR // 1 Euro = 80 INR
23
per week and allocated a budget of Rs 2,100 approx. per post and a yearly budget of Rs
1,00,000
3. Rent - I will initially be working out of a desk at co sharing work space called WeWork
which will give access to printing, stationery, conference room, electricity, furniture
and more
4.
Business Cards- Out of my past experience, 200 Business cards cost about Rs 1000
with design and printing. I have provided a link of the source above
5.
Initially I will only invest in Chartmetric to gather data to forecast the trend of the
artists and the music industry and will share the login with my personal assistant who
will help me with the following
a. Compile weekly artist updates (pull streaming stats, key highlights, radio airplay,
chart positions)
b. Tracking Reports (pull daily streaming data across platforms to track single)
c. Artist Research (track sales, radio airplay, streaming review, touring history, top
performing markets, etc.)
6. The average salary for an artist manager starts between 20,000 - 50,000 per month. I
have accounted to be in the middle with Rs 40,000 and I will be paying 10,000 to a
personal assistant part time
7. Registration and Trademark - I will be registering a private limited liability company in
India which cost between 14,000-15,000 in India. The one-time cost to purchase a
1.
2.
3.
https://www.musicplus.in/indian-music-industry-grow-15-5-2023-kpmg/
https://www.ifpi.org/downloads/GMR2018.pdf
1 USD = 70 INR // 1 Euro = 80 INR
24
trademark is between 8,000-10,000. I have double checked these costs with the Charted
Accountant and also provided links for the same. If I choose to register the company
and trademark through the Charted Accountant it will cost me an additional of Rs
10,000
Total Required Capital = Twelve Months of Fixed
Expenses + Asset Purchases + Startup Expenses
Amount
For 12
Explanation
Per Month
Months (RS)
of this
(RS)
Operating
Monthly Fixed Expenses:
Expenses
Accounting Software
(OPEX)
hypothesis
₹
₹
Quickbooks
416.58
4,999.00
Indian
Webiste
Accounting & End of the
₹
₹
Previous
Year Tax Services
10,000.00
1,20,000.00
experiennce
with a CA in
mumbai
Marketing and Advertising
₹
₹
8,333.33
1,00,000.00
adwords and
post boost one
per week
1.
2.
3.
https://www.musicplus.in/indian-music-industry-grow-15-5-2023-kpmg/
https://www.ifpi.org/downloads/GMR2018.pdf
1 USD = 70 INR // 1 Euro = 80 INR
25
Rent
₹
₹
We Work
25,000.00
3,00,000.00
Desk in
Mumbai
Supplies/Stationary/Business
₹
₹
Cards/Flyers
1,000.00
12,000.00
Telephone & Utilities
₹
₹
Using my
1,666.67
20,000.00
personal
Inkmonk
number for
business
initially
Internet & Web-Hosting
Electricity
₹
₹
Wix.com
745.00
8,940.00
(India)
₹
₹
Included in
-
-
the WeWork
desk plan
₹
₹
Chartmetric +
4,649.00
55,788.00
Dropbox
Salaries (include owner)
₹
₹
Owner Salary
Payroll Taxes at 12%
50,000.00
6,00,000.00
+ Personal
Subscription for software
Assistant
salary
1.
2.
3.
Monthly Fixed Expenses
₹
Sub-total (I)
1,01,810.58 12,21,727.00
https://www.musicplus.in/indian-music-industry-grow-15-5-2023-kpmg/
https://www.ifpi.org/downloads/GMR2018.pdf
1 USD = 70 INR // 1 Euro = 80 INR
26
₹
Capital
Expenses
Asset Purchases:
(CAPEX)
Software and Apps
Computers
₹
₹
-
-
₹
₹
Using
-
-
personal
Computer
initially
Furniture etc.
₹
₹
Included in
-
-
the WeWork
desk plan
Asset Purchase Sub-Total
₹
(II)
-
Startup Expenses You Pay
Private
Once:
limited
Company cost
Trademark & Business
₹
Registration
25,000.00
Legal and Accounting
₹
Paid to the
Organization Costs
10,000.00
Charted
Trade mark
Accountant
for
registration
1.
2.
3.
https://www.musicplus.in/indian-music-industry-grow-15-5-2023-kpmg/
https://www.ifpi.org/downloads/GMR2018.pdf
1 USD = 70 INR // 1 Euro = 80 INR
27
Licenses and Permits (PRO
₹
₹
Blanket Licenses & Stock
-
-
Startup Expenses You Pay
₹
₹
Once Sub-total (III)
35,000.00
35,000.00
TOTAL EXPENSES
₹
₹
(I+II+III)
1,36,810.58 12,56,727.00
Contingency (10%)
₹
Exchange)
₹
1,50,491.64 13,82,399.70
•
Total Estimated Cash Needed to Start For
₹
12 Months (TOTAL EXPENSES +10%)
13,82,399.70
Daily Cash
₹
Burn rate
3,787.40
Pro-Forma Balance Sheet
The balance sheet outlined below accounts year 1. I will start the company when I have at
least 2 artists ready to sign with company/agency who are interested in cross collaborations
and our well established in India. The artists should at least be generating an income of Rs
4,00,000 each per month before the agency gets them on board. My commission will be 15%
on their net profit. I aim to sign a third artist by the end of 6 months, so by the end of the first
year I have 3 artists (being optimistic). In year 2, I will work towards increasing the artists
1.
2.
3.
https://www.musicplus.in/indian-music-industry-grow-15-5-2023-kpmg/
https://www.ifpi.org/downloads/GMR2018.pdf
1 USD = 70 INR // 1 Euro = 80 INR
28
income to Rs 5,00,000 per month. In year 3, I will aim to get artists at least Rs 6,00,000 per
month and also hope to get a fourth artist signed to company.
“The investment made in the second year is into a record label which is started between
ROBACH LLC and Nicole Casino’s LLC in Los Angeles to promote collaborations between
India and western artists” The start-up financials for the record label will be mentioned at the
end.
Balance Sheet (on DECEMBER 2020)
Year 1
Year 2
Year 3
₹
₹
₹
19,85,609.35
22,47,000.45
44,90,791.55
₹
₹
8,48,400.00
8,48,400.00
ASSETS
1 Current Assets
Investments into N&R
Label
Accounts receivable
₹
-
Inventories
₹
-
Prepaid expenses
₹
-
2 Fixed Assets
1.
2.
3.
https://www.musicplus.in/indian-music-industry-grow-15-5-2023-kpmg/
https://www.ifpi.org/downloads/GMR2018.pdf
1 USD = 70 INR // 1 Euro = 80 INR
29
Building
₹
-
Equipment
₹
-
Accumulated
depreciation
3 Intangibles
₹
₹
-
4 TOTAL ASSETS
₹
₹
₹
19,85,609.35
30,95,400.45
53,39,191.55
₹
₹
₹
14,00,000.00
14,00,000.00
14,00,000.00
LIABILITIES and
OWNER'S EQUITY
5 Current Liabilities
Accounts payable
Accrued expenses
payable
6 Long-term Liabilities
Bank loans
7 Owner's Equity
Investments made into
N&R label
Invested Capital
1.
2.
3.
₹
-
https://www.musicplus.in/indian-music-industry-grow-15-5-2023-kpmg/
https://www.ifpi.org/downloads/GMR2018.pdf
1 USD = 70 INR // 1 Euro = 80 INR
30
₹
₹
₹
earnings
5,85,609.35
16,95,400.45
39,39,191.55
Total Owner's Equity
₹
₹
₹
19,85,609.35
30,95,400.45
53,39,191.55
₹
₹
₹
19,85,609.35
30,95,400.45
53,39,191.55
Accumulated retained
8 TOTAL LIABILITIES
and EQUITY
•
Pro-Forma Income Statement
This income statement is based on the expenses needed to start the company as well as the
following logic for the revenue every year as this business can be considered seasonal:
1st Year (6months) Commission earned - 1,20,000 (60,000 each) 2 Artists
1st Year (Second half) Commission earned - 1,80,000(60,000 each) 3 Artists
2nd Year Commission earned - 2,25,000(75,000 each) 3 Artists
3rd Year Commission earned - 3,60,000(90,000 each) 4 artists
After the first year, we predict that the artists income will increase by 25% every year from
all possible income streams (streaming, live shows and brand endorsements)
Also, I hope to sign one new artist to our rooster every year and I don’t see myself managing
more than 4 artists at ones without getting more employees to the company.
The tax bracket in Mumbai, India is based on slabs depending upon the income made in the
annual year. The slabs are as follows
1.
2.
3.
https://www.musicplus.in/indian-music-industry-grow-15-5-2023-kpmg/
https://www.ifpi.org/downloads/GMR2018.pdf
1 USD = 70 INR // 1 Euro = 80 INR
31
Up to 2,50,000 – 0
2,00,000 – 5,00,000 is 5%
5,00,000 – 10,00,000 is 20%
Above 10,00,000 is 30%
For the first year the income minus 2,50,000 which is the Tax-exempt amount, it fall under
the first slab. The remaining two years we fall under the 30% bracket but I aim to do fiscal
optimization.
Income Statement (As of DECEMBER 2019)
Year 1
Year 2
Year 3
₹
₹
₹
18,60,000.00
27,00,000.00
43,20,000.00
₹
₹
₹
18,60,000.00
27,00,000.00
43,20,000.00
- Administrative
₹
₹
₹
Expense / SG&A
12,56,727.00
12,21,727.00
12,21,727.00
- Depreciation
₹
Expenses
₹
₹
₹
6,03,273.00
14,78,273.00
30,98,273.00
1 Revenue
- Cost of Sales /
COGS
2 GROSS PROFIT
3 OPERATING
PROFIT (EBIT)
1.
2.
3.
https://www.musicplus.in/indian-music-industry-grow-15-5-2023-kpmg/
https://www.ifpi.org/downloads/GMR2018.pdf
1 USD = 70 INR // 1 Euro = 80 INR
32
-/+ Dividends and
₹
₹
Interest Income
-
-
- Interest Expense
₹
₹
-
-
₹
₹
₹
6,03,273.00
14,78,273.00
30,98,273.00
₹
₹
₹
17,663.65
3,68,481.90
8,54,481.90
₹
₹
₹
5,85,609.35
11,09,791.10
22,43,791.10
4 PROFIT BEFORE
TAXES
Goods and Services
Tax
Taxes
5 NET PROFIT
•
Pro-Forma Cash Flow Statement
1st Year (6months) Commission earned - 1,20,000 (60,000 each) 2 Artists
1st Year (Second half) Commission earned - 1,80,000(60,000 each) 3 Artists
2nd Year Commission earned - 2,25,000(75,000 each) 3 Artists
3rd Year Commission earned - 3,60,000(90,000 each) 4 artists
Total amount for the 1st year is (6months x 1,20,000) + (1,80,000 x 6months) = 18,60, 000
Total amount for the 2nd year is 12 months x 2,25,000 = 27,00,000
1.
2.
3.
https://www.musicplus.in/indian-music-industry-grow-15-5-2023-kpmg/
https://www.ifpi.org/downloads/GMR2018.pdf
1 USD = 70 INR // 1 Euro = 80 INR
33
Total amount for the 3rd year is 12 months x 3,60,000 = 43,20,000
Investments made into N&R label of 12120 USD which is Rs 8,48,400
The start-up cost of ROBACH of Rupees 35,000 has been removed from the SG&A in the
second and third year as those costs have only been made in the first year.
Cash-Flow Statement (as of DECEMBER 2019)
Year 1
Year 2
Year 3
₹
₹
₹
18,60,000.00
27,00,000.00
43,20,000.00
₹
₹
₹
18,60,000.00
27,00,000.00
43,20,000.00
INFLOW AND
OUTFLOW
1 Funds provided by:
Receipts #1
Rrevenu from gigs
Invested Capital
TOTAL FUNDS IN
2 Funds used for:
Cost of goods
acquired
1.
2.
3.
https://www.musicplus.in/indian-music-industry-grow-15-5-2023-kpmg/
https://www.ifpi.org/downloads/GMR2018.pdf
1 USD = 70 INR // 1 Euro = 80 INR
34
₹
Investments
8,48,400.00
SG&A
₹
₹
₹
12,56,727.00
12,21,727.00
12,21,727.00
₹
₹
₹
17,663.65
3,68,481.90
8,54,481.90
₹
₹
₹
5,85,609.35
2,61,391.10
22,43,791.10
Interest expense
Taxes
Building and
equipemnt
Long-term debt
reduction
Distribution owners
3 NET CHANGE IN
CASH POSITION
(Total Funds In - Total
Funds Out)
CHANGES BY
ACCOUNT
4 Changes in Liquid
Assets
Cash
Investment Portfolios
TOTAL CHANGES
1.
2.
3.
https://www.musicplus.in/indian-music-industry-grow-15-5-2023-kpmg/
https://www.ifpi.org/downloads/GMR2018.pdf
1 USD = 70 INR // 1 Euro = 80 INR
35
5 `NET CHANGE IN
CASH POSITION
₹
₹
₹
19,85,609.35
22,47,000.45
44,90,791.55
(Total Funds In - Total
Funds Out)
•
Cash Burn Rate
This is the projected cash burn rate for the first 12 months of business. As you will see, we
will incur the most costs pre-start up in order to start the business properly.
In addition, we have
Cash-Flow Statement (For the first 6-month)
Pre-Startup
Month 1
Month 2
Month 3
₹
1,20,000.00
₹
1,20,000.00
₹ 14,00,000.00
₹ 14,00,000.00
₹
1,20,000.00
₹
1,20,000.00
₹
₹
1,01,810.58
₹
1,01,810.58
₹
35,000.00
-
₹ 13,65,000.00
₹
₹
-
18,189.42
₹
₹
-
₹
₹
₹
Month 4
1,20,000.00
1,01,810.58
-
18,189.42
₹
18,189.42
₹ 14,01,378.83
₹
14,19,568.25
Month 5
Month 6
Month 7
Month 8
Month 9
Month 10
Month 11
Month 12
Total
₹
1,20,000.00
₹
1,20,000.00
₹
1,80,000.00
₹
1,80,000.00
₹
1,80,000.00
₹
1,80,000.00
₹
1,80,000.00
₹
1,80,000.00
₹
1,80,000.00
₹
1,20,000.00
₹
1,20,000.00
₹
1,80,000.00
₹
1,80,000.00
₹
1,80,000.00
₹
1,80,000.00
₹
1,80,000.00
₹
1,80,000.00
₹
1,80,000.00
₹
1,01,810.58
₹
1,01,810.58
₹
1,01,810.58
₹
1,01,810.58
₹
1,01,810.58
₹
1,01,810.58
₹
1,01,810.58
₹
1,01,810.58
₹
1,01,810.58
₹
₹
-
18,189.42
₹
₹
-
18,189.42
₹
₹
-
78,189.42
₹
₹
-
₹
-
78,189.42
₹
78,189.42
₹ 16,12,325.92
₹
16,90,515.33
₹
₹
-
78,189.42
₹
₹
-
78,189.42
₹
₹
-
78,189.42
₹
₹
-
78,189.42
₹ 14,00,000.00
₹ 13,65,000.00
₹ 13,83,189.42
1.
2.
3.
₹ 14,37,757.67
₹ 14,55,947.08
https://www.musicplus.in/indian-music-industry-grow-15-5-2023-kpmg/
https://www.ifpi.org/downloads/GMR2018.pdf
1 USD = 70 INR // 1 Euro = 80 INR
₹ 15,34,136.50
36
₹ 17,68,704.75
₹ 18,46,894.17
₹ 19,25,083.58
₹ 20,03,273.00
₹
18,60,000.00
₹
12,56,727.00
₹
-
5. Risks
The biggest risk associated with this project is signing artists. Because ROBACH is a
services-based company, we will rely heavily on artist in order to gain revenue to grow the
company. We will need minimum of 2 artists having an average monthly income of 4 lakhs
before we have them signed to the company
While we have projected what we think is realistic for the number of Artists we can acquire
yearly, there is still a risk that we could fall short of our projections. It may be possible we
are not able to increase the artist income by 25% per year
We are confident that we have the ability to attract these artists, also once the Label is started
in the second year we can add more value proposition to the artists and help them reach a
wider audience and increase their annual growth and income
Please check below for Nicole’s and Rohin’s Label financials
PHASE 1
Total Required Capital = Twelve Months of Fixed
Expenses + Asset Purchases + Startup Expenses
Amount
For 12
Per
Months
Month
Monthly Fixed Expenses:
1.
2.
3.
https://www.musicplus.in/indian-music-industry-grow-15-5-2023-kpmg/
https://www.ifpi.org/downloads/GMR2018.pdf
1 USD = 70 INR // 1 Euro = 80 INR
37
Explanation of this
hypothesis
Accounting Software
$7.13
$14.26 Quickbooks website
$8.00
$100.00 Past experience with
(QuickBooks)
Accounting & End of the
Year Tax Services
Marketing and Advertising
Tax accountant
$834.00 $10,000.00 Google AdWords and
Facebook post boost one
per week
Rent
$0.00
$0.00 Working from Home
and not claiming
anything, Maybe later
Operating
we claim 11% of
Expenses
Nicole's home which is
(OPEX)
our working space
Supplies/Stationary/Business
$8.30
$100.00 Vista Print.com
Cards/Flyers
Telephone & Utilities
$0.00
$0.00 Using our personal
numbers initially
Internet & Web-Hosting
2
Electricity
Salaries (include owner)
$0.00
24 Domain cost on Wix
$0.00
$843.30 $10,120.00 Each owner making
Payroll Taxes at 12%
Monthly Fixed Expenses
$5,000 in salary per year
$1,702.73 $20,358.26
Sub-total (I)
Asset Purchases:
1.
2.
3.
https://www.musicplus.in/indian-music-industry-grow-15-5-2023-kpmg/
https://www.ifpi.org/downloads/GMR2018.pdf
1 USD = 70 INR // 1 Euro = 80 INR
38
Software and Apps
240 Splice Website,
Dropbox Storage
Computers
MacBook Air
Refurbished
Furniture etc.
Copier
Asset Purchase Sub-Total
$240.00
(II)
Startup Expenses You Pay
Capital
Once:
Expenses
Trademark & Business
$325.00 smallbusiness.chron.com
(CAPEX)
Registration
Legal and Accounting
$1,113.00 Source: Legal Zoom
Organization Costs
Licenses and Permits (PRO
$0.00
Blanket Licenses & Stock
Exchange)
Startup Expenses You Pay
$1,678.00
Once Sub-total (III)
TOTAL EXPENSES
$22,036.26
(I+II+III)
Contingency (10%)
1.
2.
3.
https://www.musicplus.in/indian-music-industry-grow-15-5-2023-kpmg/
https://www.ifpi.org/downloads/GMR2018.pdf
1 USD = 70 INR // 1 Euro = 80 INR
$24,239.89
39
$839.00
Total Estimated Cash Needed to Start
$24,239.89
$12,119.94
For 12 Months (TOTAL EXPENSES
+10%)
Per company
Daily
$66.41
cash burn
rate
6. Implementation Plan
Below, is a carefully outlined implementation plan that will take in order to successfully launch
the start-up, ROBACH. These steps will include the necessary activities I will need to carry
out in order to have ROBACH operating.
Date of Implementation
Action Step
Explanation
17th Feb 2019
Name
Establish the beginning
Sector Code
stages of the overall idea
Vision and Mission
and concept
encompassing ROBACH
1.
2.
3.
https://www.musicplus.in/indian-music-industry-grow-15-5-2023-kpmg/
https://www.ifpi.org/downloads/GMR2018.pdf
1 USD = 70 INR // 1 Euro = 80 INR
40
21st March 2019
21st April 2019
Value Proposition,
Identifying and stating the
Market Positioning,
aim of ROBACH and its
Pricing Policy
offering
Financial Projections
Financial Projections for
the first three years and
stating the amount of
money required to start
ROBACH
3rd May 2019
Executive Summary,
Summing up the business
Completion of the
plan and stating the
Business plan
Executive summary and
Implementation plan
18th July
Registration of the
company
1.
2.
3.
https://www.musicplus.in/indian-music-industry-grow-15-5-2023-kpmg/
https://www.ifpi.org/downloads/GMR2018.pdf
1 USD = 70 INR // 1 Euro = 80 INR
41
Registering the company
7. Appendix
Below you can see the profitability of ROBACH over the first three years
Below you can see the liquidity of the company over the first three years
Current Assets
₹ 50,00,000.00
₹ 40,00,000.00
₹ 44,90,791.55
₹ 30,00,000.00
₹ 20,00,000.00
₹ 22,47,000.45
₹ 10,00,000.00
₹ 19,85,609.35
₹1
1.
2.
3.
https://www.musicplus.in/indian-music-industry-grow-15-5-2023-kpmg/
https://www.ifpi.org/downloads/GMR2018.pdf
1 USD = 70 INR // 1 Euro = 80 INR
2
42
3
Thank You
1.
2.
3.
https://www.musicplus.in/indian-music-industry-grow-15-5-2023-kpmg/
https://www.ifpi.org/downloads/GMR2018.pdf
1 USD = 70 INR // 1 Euro = 80 INR
43
Media of
