setting up first cruise line company

1 | P a g e www.majesticcruiseline.com [email protected]

Project Report

Setting up

First Cruise Line Company in the Indian Sub-Continent

Prepared by: Devesh Khanna

+91 98115 33366 / [email protected]

The logo is merely a representation. Final logo is to be drawn in conjunction with the marketing agency.


Confidentiality Agreement

The reader acknowledges that the information provided by Devesh Khanna in

this Project Report cum Business Plan is confidential and that the reader agrees

not to disclose any information or reproduce any information given in this

report.

It is acknowledged by reader that information furnished in this Project Report

cum Business Plan is in all respects confidential in nature, other than

information which is in the public domain through other means and that any

disclosure or use of same by reader, may cause serious harm or damage to

Devesh Khanna. For any such deed, Devesh Khanna reserves the right to a legal

recourse.

Upon request, all copies of this document are to be immediately returned to

Devesh Khanna or destroyed.


S.No. Sections of the Project Report Page from Page to

1 Executive Summary 5 6

2 Company Objectives 7 7

3 Mission & Vision 8 8

4 Keys to Success 9 11

5 Start-Up Costs & Funding 12 14

6 Company Ownership 15 15

7 Products & Services 16 17

8 The Market 18 25

9 Strategy 26 38

10 Management 39 42

11 Financials 43 53

12 Investor Considerations 54 56

13 Disclaimer 57 57

14 Company Summary 58 59

15 Start Up Summary 60 61

16 Start Up Funding 61 61

17 Company Ownership 62 62

18 Additional Information 63 65

19 Business Model 66 67

20 Competitive Landscape 68 68

21 Market Analysis Summary 69 69

22 Target Market Segmentation Summary 70 70

23 SWOT Analysis 71 71

24 Competitive Edge 72 72

25 Sales Strategy 72 72

26 Sales Forecasting 73 75

27 Milestones 76 76

28 Marketing Strategy 77 77

29 Pricing Strategy 78 78

30 Sourcing Strategy 79 79

31 Location & Facil ities 80 80

32 People Summary 81 81

33 Covid Preparedness 82 82


Precursor to the Project Report

Cruising is defined on Google as:

“The action of sailing about in an area without a precise destination,

especially for pleasure.”

Cambridge Dictionary defines Cruising as:

“The activity of going on a journey on a large ship for pleasure, during which

you visit several places.”

Wikipedia defines a Cruise Ship as:

Cruise ships are large passenger ships used mainly for vacationing. Unlike

ocean liners, which are used for transport, they typically embark on round-

trip voyages to various ports-of-call, where passengers may go on tours

known as "shore excursions".

The above 3 statements define the essence of this business.

No hotel, resort or vacation spot can duplicate the ambience and the number of facilities which a

cruise ship can offer, all while being in the middle of an ocean. A sea-vacation is considered as a far

more exciting, more relaxing, more value-for-money and far more memorable than any other

holiday. A few elements which set it apart are that there is no requirement of checking-in and

checking-out when visiting various destinations, there is no requirement of travel to distant places

for using various elements or facilities, all meals are included in the ticket price, and the overall cost

of a cruise holiday comes out to be more economical than any other holiday.

Anyone who has ever been on a cruise once will swear by the fact that there is no better holiday.

Beyond a holiday, the corporate houses are now realizing the value of holding conferences and

events on a cruise ship. The cost, the convenience and the overall control is unparalleled.


Executive Summary

This business plan will show how an investment of $200 Mn can yield a business with a valuation of $2 Bn in 6 years, with an asset base in excess of $500 Mn and a cumulative Gross Operating Profit of ~$150 Mn, all of this while maintaining adequate levels of liquidity.

The purpose of this plan is to secure a funding of $200 Mn from an investor or a financial institution. The funding can be secured in terms of a debt or equity, although the preference is for equity and the formation of the plan is according to an equity infusion.

Majestic Cruises is still in ideation stage, although every aspect of this project is deliberated over and ready to go. It is the brainchild of a few common minded people from various hospitality segments and has been framed keeping in mind the current markets, market conditions, business flow and return on investments.

Cruising, globally, is a $46 Bn industry with 79 companies in play. Asia accounts for 4% of this business and the Indian sub-continent is the most nascent market of all. Cruising, unlike the counterparts in hotels and airlines, is extremely profitable and is addictive with a high repeat client base. FY 2019, Royal Caribbean has declared revenues of $11 Bn and a GOP of $5 Bn. Carnival Cruises in 2019 have declared a revenue of $21 Bn and a GOP of $8 Bn. Most popular brands like Costa Cruises, Princess Cruises, P&O Cruises, AIDA Cruises, Silver Seas, Azamara, TUI Cruises, Celebrity Cruises, etc. are owned by both these large organizations.

As an option, Cruising is the most advanced offering anyone can have as this is one spot which can take in large numbers, offers a complete vacation for the discerning, a perfect venue for Corporate Houses and Organizations and an ideal setting for large events, parties and weddings. It is often compared with a large resort city floating from one place to another, offering sightseeing without the hassle of checking-in & out.

Majestic Cruises have found a niche segment and a virgin market, which is yearning for an option like this. The Indian sub-continent has had some tryst with cruises in the past and has shown a great affinity towards this mode of entertainment. Currently, there are no home-ported cruise lines in the entire belt stretching from Middle East, going past India, and Sri Lanka, and right up to Phuket. Not only is this a large coastline, but it is also dotted with many exotic locales and is home to one of the fastest growing vacation markets in the world, with money to spare. Majestic Cruises aims to capitalize on this gap in the market, establish itself before anyone else steps in, and create a brand with 5 ships in 5 years across this region.

Majestic Cruises will have a Unique-Stand as a product, an offering which is captured from the best cruise lines in the world and will have a global sales and marketing network. It will be technologically the most advanced cruise lines in the world, and will be going into markets, which have capacity and aspiration and are yet untapped by any other cruise company in the world. As the name suggests, Majestic Cruise lines will be offering grandeur at a premium level and affordable pricing packages.


Executive Summary

Investment Portfolio Projection

Business Portfolio

Existing World Business

Objective

22% 27% 29% 34% 36% -

37% 37% 42% 43% 37%

-460% -10% 9% 14%

-48% 18% 25% 27% 32%GOP %age

P&L %age

89% 89%Avg. Occupancy 80% 80%

2,000

92% 92% 86%

2,000 12000

83% 84% 86%

Ship Capacity 1,500+700 2,000 2,000 2,000 2,000

Cash Flow

$69

$544

Total

$4,446

$2,791

$1,655

$115 $410 $544$57 -$45 $65 -$6 $73 $81

1 1

$200 $200

1

$240

2 1 1 1

$436

$1,219

$400

$100 $100 $110

$31 $28 $32 $40 $45 $52 $60

$8 $6 $13

-$35 -$10 $18 $45 $92 $152 $211

$85 $125

$558

Details

Ship Revenue

Ship Expenses

GOP

Expenses

Profit / Loss

Dividends $27

-$4 $19 $50 $85 $138 $204 $271

$8 $8

$315

2026 2027 2028

Investments

Cost of Ships

No. of Ships

$8 $103 $203 $428

$11 $84 $153 $231 $290 $352 $464

$150

$34 $41 $166

2022 2023 2029 2030

$646

$494

2024

$556 $735 $957 $1,141

$399

$80

$330 $415

$20

$910

8

2025

Business Worldover RCL CCL

Top Line $46,000 $11 $21

GOP - $5 $8

GOP% 25% 45% 38%

Occu.% 102% 108% 107%

2019 Financials; Amounts in USD, Million


Primary Objectives:

1. Establish a Home-Cruise brand in the Indian Sub-Continent and Middle East, while

ensuring an 70%-80% occupancy on the first 2 cruise ships for profitable operations.

2. Create a strong technology base and a worldwide sales network, with a very lean

team, through to next 10 years.

3. A premium cruising experience with international styling and Indian hospitality, at

affordable prices.

4. To create the elegance of Royal Caribbean and the fun of Carnival Cruises and be

the first choice for vacations, parties, events, corporate meetings, and weddings.

Secondary Objectives:

1. Ensure the company is ripe for a Nasdaq listing in 4 years with a fleet of 3 ships in 3

to 4 years, profitable operation, and high visibility.

2. Ensure the company’s valuation closes near the $2 Bn mark in 6 years, with a fleet

of 5 ships and cruises home-ported at Dubai, Mumbai, Colombo, Singapore, and

Chennai.

3. To make the Indian sub-continent as the secondary hub of worldwide cruising.


Mission and Vision

Majestic Cruises mission is to offer a unique cruising experience to worldwide customers at

affordable prices and return great value for money.

Our international styling coupled with Indian hospitality and a worldwide cuisine offering

will be suitable for people from anywhere in the world. Our facilities and product offering

will be enticing for a large spectrum of people and companies, for a variety of reasons. We

will create a benchmark of short cruising holidays while offer a great technology platform

for travel agents, tour operators, corporate houses, and direct clients, to make this as easy

as airline ticketing and as attractive as designing a dream holiday. There will be end-to-end

services which include airline ticketing, hotel reservations, and pre & post tours for a

complete experience.

The Vision is to establish a multi-billion-dollar, profitable cruise company in the Indian sub-

continent with 5 ships in 5 years and develop a premium cruise experience offering an

international styling with Indian hospitality, selling to worldwide customers.

Our values will be critical to our success, which underlie our vision & mission:

Performance Excellence: Responsible ownership always seeking to meet or exceed

expectations.

Teamwork: We act as a team, committed to each other, and bound by trust and loyalty.

Integrity: We treat one another, and all our stakeholders with dignity and respect. Honesty,

ethical behaviour, and integrity are fundamental characteristics of our business conduct.


Keys to Success

Our keys to success are:

1. Product: Elements: The product must be a premium level cruise ship, suitable to a large spectrum of clients, backed up by world class service. Only this will ensure a repeat client base and a word-of-mouth spread.

Inclusions: The product must have some typical and some atypical cruise offerings:

a. Typical Cruise Offerings:

• Cabins: A mix of room types with inside, ocean view, balcony, suites, and deluxe cabins.

• Food: A well-stocked and large food court offering round-the-clock food, backed up by paid fine dining experience restaurants.

• Drinks: A world-class selection of wines and spirits, with a comprehensive menu of cocktails and snacks.

• Entertainment: Theatre, international shows, show lounges, night club, swimming pool, sun deck.

• Casino: Various game tables backed up with a selection of slot machines.

• Shopping: Duty-free shopping experience offering a selection of products like cosmetics, perfumes, liquor, and electronics.

b. Atypical Cruise Offerings:

• Activities: Cricket nets, gaming zone, rock climbing, water slides / park.

• Quick buys: Wide array of vending machines for tea/coffee, drinks, utilities, and daily needs.

• Large screen movie theatre.

2. Important attention to the market level detailing:

• Most cruise ships are originally built for American and European markets; thus, they lack some essentials for this part of the world. These will be addressed. Example: Hand faucets in the washroom, type of electrical point given in each cabin compatible to equipment here.

• There are certain things which are a strong expectation by this market, which may not matter elsewhere in the world. Example: Good quality latest television sets is a must in every cabin. Strong air conditioning, not required by Americans or Europeans, is a prerequisite for a belief in luxury in India & South-East Asia.

3. Technology: A great Ecommerce website amalgamated with a luxury offering with dreamscapes, backed by a host of analytical tools and ML/AI. A world-class reservation system, capable of handling a range of promotions and price points ensuring a fantastic revenue management. An overall shell which enables various levels of agents, including GSA & PSA relationships, with comprehensive MIS,


accounting, and reporting. An end-to-end system, which requires negligible manual intervention.

4. Service Quality: A lavish “Indian hospitality” level service quality backing up the product at every level. There will be a cruise-level service offering and an upgrade version for the higher cabin categories, along with additional services on paid basis.

5. Business location: Where and how we home port the cruise ships, is going to be a very important factor in the success of this company. The locations must be easy access for people to come and go, as well as be important enough for them to visit. The locations or destinations that we visit, must be enticing enough to add to the charm of the cruising and ultimately be a compelling reason for a person to buy. Our operations have to be based out of a convenient location which makes business sense.

a. Main Cruise Ports: i. The main cruise ports are going to be Mumbai and Dubai for the first

2 ships. Mumbai is the hub of travel in India and has good accessibility from every part the country. Mumbai is also the largest port in the country. Dubai is the centre point for the entire Middle East for a holiday and eventually, for cruising. Dubai also gives us a great base for the entire Middle East, that includes Kuwait, Bahrain, Qatar, Abu Dhabi, and Oman. Being in Dubai, we will also have reach to clients from Saudi Arabia.

ii. We are going to position the third ship at Sri Lanka. Sri Lanka is a weekend destination for most of South India, and at the same time, has become a favoured destination for global luxury travellers.

iii. Our fourth port is going to be Singapore, which is already recognised as a gateway for cruising, and we will position ourselves with the competition after building a brand.

iv. Hopefully in five years we would have built a cruising culture in India. Thus, our fifth port will be Chennai catering to the entire East Indian belt touching Bangladesh & Myanmar.

b. Visited destinations: We will be an international cruise company primarily offering international cruises, with very few cruises which are domestic in nature. Thus, we will avoid taxation associated with domestic tourism in any country.

i. The ship which is home ported in Mumbai will be visiting Lakshadweep, Maldives, Cochin, Colombo & Goa.

ii. From Dubai, we will be visiting Bahrain, Kuwait, Oman, Yas Islands and Doha.

iii. The ship based in Colombo will be visiting Galle, Hambantota, Trincomalee, Jaffna & Maldives.

iv. The ship and Singapore will be catering to a large spectrum of destinations which include Thailand, Malaysia, Vietnam & Indonesia.


v. The East India cruiser will be looking at visiting Port Blair, Jaffna, Trincomalee, Vizag, Kolkata, Puri & Chittagong.

c. Operating Office: i. While the company will be head quartered in Dubai, the operating

office will be based in Gurgaon, India. The decision to create a base office in Gurgaon is based on many factors which include availability of economical and large spaces, easy accessibility, the base of bureaucracy, vicinity to the airport, technology hub of the world and availability of quality manpower.

ii. Have several sales offices based in India which include Mumbai, and a host of cities in South, East, West & North of India. Besides this, we will also have our own representatives in London, Dubai, and Singapore. For the rest of world locations (US, Europe, Australia, Russia, Middle East, Asia & Africa), we will have a General Sales Agent relationship with prominent tour operators, based on productivity linked fee.

6. Sales & Marketing: Our focus and sales and marketing will be 80% towards digital and the balance spread between ATL & BTL.

a. Our target market is 65% India & GCC, 10% Russia, 10% South East Asia and the balance coming from the rest of the world. Our marketing expenses will also be spread accordingly.

b. A primary focus would be on travel agents and tour operators, with a secondary focus on the institutions and corporate houses.

c. Our sales teams would be focused on reaching out to the travel fraternity.

d. The sales and be backed up by a call centre which will cater to the travel agents and direct customers.

e. The primary driver off our bookings will be the reservation platform embedded on the website and our On-board revenues will be driven by the mobile app.

f. Our marketing approach will be B2C2B. Our successful will be defined by our ability to reach out as far and as quickly as possible.

Our Sales numbers are given in USD, Millions

and will rise exponentially because of a few

factors put together, like addition of new

ships, focused marketing, repeat client base

and reach to newer markets.


Start-Up Costs & Funding

This project is asset heavy and thus requires a large investment just to start up. The initial fund requirement includes a purchase of 2 ships, dry-docking them and refurbishing them, and then sustaining the company across the first 3 years. The cost of Technology, Marketing, People, Offices, and the initial stocking is included in this fund requirement.

Buying a brand-new ship requires a lot of money and 7 to 10 years of waiting. Despite having a lot of ship making berths across the world, there is no availability to make a good, new ship before 2027. Given that it takes around 3 years to build a new ship, the earliest you can expect to have a new ship is by 2030. The cost of a new ship would be in the range of $600 Mn to $1 Bn. Therefore, most smaller cruise companies end up buying second-hand ships for their cruise business. Once properly refurbished, these ships become as good as new and can last you for 15 to 20 years. During normal times, a good ship would cost anywhere between $100 Mn to $200 Mn. Apart from the cost, availability of ships is always an issue. And once you have purchased a ship, the delivery can take anywhere between 12-15 months. It will take another 6 to 8 months to redesign and the refurbish the ship. It takes around 2-3 years before you can set sail.

The Covid times bring a very big advantage with them. Not only are the ships available at half the cost, and the ships are also readily available. Our launch to sail time is reduced to one year. The investment requirement has come down from a minimum of $600 Mn to $200 Mn. We are estimating that 2 ships will be ready with our desired product at $100 Mn ($70 Mn + $30 Mn, 1,800 & 600-seater). The cost of technology will be another $20 Mn. We will spend almost $30 Mn in marketing in the first 2 years. The balance will be used to run the ship and our operations till we achieve an operational break-even.

Our investor would be offered a 70% stake in the company with an investment of $200 Mn. This money would take the company from inception to the point of listing. The CEO and core team would be given a 15% stake in the company, whereas the balance 15% would be reserved for future funding or to be let off during the listing process, called “Option Shares”.

The cash flow statement demonstrates how, with a bare minimum additional investment of $200 Mn, we manage to increase the fleet from the 2 ships to 5 ships, remain operationally profitable and comfortable on cash flow in 5 to 6 years.

Our cash flow statement depicts our ability to generate profits, maintain adequate liquidity, have surplus cash for unforeseen events and manage our business with stress on marketing and technology.

From an investment perspective, the financial analysis in this project report would be able to assure the investor of substantially returns on the initial investment done by him. The investor will have an option for a complete exit after the first four to five years.

Another possible and plausible avenue at the end of three or four years, is that one of the larger cruise companies will partially or completely buy us out.


All other onshore expenses summary

Ship revenue summary

Summary of expenses on technology

Marketing expenses summary

$69 $80 $436

Team Size 130 158 175 209

Total Expenses $31 $28 $32 $40 $45 $52 $60

188 188 197 203 203 209

$3 $4 $18

Salaries $4 $7 $8 $10 $11 $12 $14 $15 $16 $97

Office & Admin. $1 $1 $1 $2 $2 $2 $2

$27 $32 $38 $46 $225

Technology $13 $7 $8

$13 $13 $15 $19 $22

$96$9 $10 $11 $12 $13 $14

Marketing

2026 2027 2028 2029 2030 TotalOther Expenses 2022 2023 2024 2025

2,968,272 3,573,718 4,087,707 4,405,727130,176 887,888 1,530,322 2,137,214 2,549,794

6,363,091610,633 728,513 848,078 1,021,062

8,788 10,423 11,190 12,723 7,330

Total Pax 37,193 253,682 437,235

Total Pax Days 22,270,818

1,167,916 1,258,779

92% 92% 86%

Pax Per Day 1,419 3,093 4,843 6,513 6,980

15,407

Occupancy %age 80% 80% 83% 84% 86% 89% 89%

1,613 1,825 1,978 2,349 2,555 2,708

2024 2025

$352 $464 $558 $646 $2,791

Days of Operation 245 883 1,251

$957 $1,141 $4,446

Ship Expenses $11 $84 $153 $231 $290

2026

$1,655

Ship Revenue $8 $103 $203 $315 $428 $556 $735

$85 $138 $204 $271 $399 $494

2027 2028 2029 2030 Total

Ship GOP -$4 $19 $50

Total Ships 2022 2023

2022 2023 2024 2025 2026 2027 2028 2029 2030 Total

$6 $1 $1 $1 $1 $2 $2 $2 $2 $19

$5 $3 $4 $4 $4 $5 $5 $6 $6 $42

$2 $1 $1 $1 $1 $2 $2 $2 $2 $14

$0 $0 $0 $0 $0 $0 $0 $0 $1 $3

$0 $0 $0 $0 $1 $0 $0 $0 $0 $4

$1 $1 $1 $2 $2 $2 $2 $2 $3 $14

$13 $7 $8 $9 $10 $11 $12 $13 $14 $96

On Board

Others

Ttl Cost

Website

CRM

Maintenance

Tech

Reservation

2022 2023 2024 2025 2026 2027 2028 2029 2030 Total

$10 $10 $11 $13 $15 $18 $21 $25 $30 $153

$0 $0 $0 $0 $0 $0 $0 $0 $0 $2

$1 $1 $1 $2 $2 $2 $3 $3 $4 $19

$0 $1 $1 $1 $1 $2 $2 $2 $3 $15

$1 $1 $1 $1 $2 $2 $2 $3 $3 $16

$1 $0 $0 $2 $2 $2 $3 $3 $4 $17

$0 $0 $0 $0 $0 $1 $1 $1 $1 $5

$13 $13 $15 $19 $22 $27 $32 $38 $46 $225Ttl Cost

Query Cost

Travel Dom/Intnl

Launch-1

Col latera l

Marketing

Agency

PR Agency

Trade Shows


Other expenses summary

Investment advantage for current times

Comparison of Assets, Operations and Other Expenses in 3 years

Comparison Metric Covid Times Pre-Covid

Investment In Millions $200 $600

Establishment Time In Years 2 5

Breakeven In Years 3 7


Company Ownership

Majestic Cruises is partly a unique company and partly a continuation of a successful business model operating around the globe. This will be a new company formed in any free-business zone in UAE.

Majestic Cruises will remain a privately held company till we decide to list or sell out. The company then be managed by a board which is headed by the founder, Devesh Khanna, along with a few of his core team members. The investor would be invited to participate in all strategic meetings. The investor will also be a participant in the listing and sell-out decision and other such major decisions.

There will be a share holding pattern in place, given in the section covering the investor’s interests. The core team will form part of the board of this company. The company may also explore getting a few non-executive board members in an advisory capacity on a paid or honorary basis.

The shareholding pattern being offered is to the investor is depicted below:

Preferred Cl-A Common Cl-A Common Cl-B Total Shares Common Cl-A Common Cl-B Total Shares Common Cl-A Common Cl-B Total Shares

Total Shares 28,600,000 20,000,000 2,860,000 5,740,000 28,600,000 2,860,000 25,740,000 28,600,000 5,720,000 61,480,000 67,200,000

Value/Share ($) $10 $10 $10 $10 $10 $35 $35 $35 $25 $25 $25

Total Value $286,000,000 $200,000,000 $28,600,000 $57,400,000 $286,000,000 $100,100,000 $900,900,000 $1,001,000,000 $143,000,000 $1,537,000,000 $1,680,000,000

%age va lue 100% 70% 10% 20% 100% 10% 90% 100% 9% 91% 100%

Voting Rights - - 1 : 15 1 : 1 - 1 : 15 1 : 1 - 1 : 15 1 : 1 -

Total Voting %age - 0.0% 88.2% 11.8% 100.0% 62.5% 37.5% 100% 58.3% 41.7% 100%

Founder's Shares 28,600,000 2,860,000 2,860,000 2,860,000 2,860,000 5,720,000 5,720,000

Share Value ($) $286,000,000 $28,600,000 $28,600,000 $100,100,000 $100,100,000 $143,000,000 $143,000,000

%age va lue 100% 10% 10% 10% 10% 9% 9%

Voting Rights - 88.2% 88.2% 62.5% 62.5% 58.3% 58.3%

Employee's Shares - 1,430,000 1,430,000 1,430,000 1,430,000 2,860,000 2,860,000

Share Value ($) - $14,300,000 $14,300,000 $50,050,000 $50,050,000 $71,500,000 $71,500,000

%age va lue - 5% 5% 5% 5% 4% 4%

Voting Rights - 2.9% 2.9% 2.1% 2.1% 1.9% 1.9%

Investor's Shares - 20,000,000 20,000,000 20,000,000 20,000,000 40,000,000 40,000,000

Share Value ($) - $200,000,000 $200,000,000 $700,000,000 $700,000,000 1,000,000,000 $1,000,000,000

%age holding - 70% 70% 70% 70% 60% 60%

Voting Rights - 0% 0.0% 29% 0.0% 27.2% 0.0%

Option Shares - 4,310,000 4,310,000 4,310,000 4,310,000 18,620,000 18,620,000

Share Value ($) - $43,100,000 $43,100,000 $150,850,000 $150,850,000 $465,500,000 $465,500,000

%age va lue - 15% 15% 15% 15% 28% 28%

Voting Rights - 8.9% 8.9% 6.3% 6.3% 12.6% 12.6%

Shareholding Pattern for Majestic Cruise Line

Shareholder

Details

Pre-

InvestmentPost Investment (FY 2021) Projection (FY 2024) - at IPO Stage Projection (FY 2027) - Post Listing


Products & Services

Majestic cruises will be offering the following services, which are included in the ticket fare:

• Stay for the duration of the cruise in the booked category of cabin.

• Anytime meals at the food court.

• Access to entertainment options like the theatre show, DJ parties, etc.

• Access to entertainment facilities like swimming pool, sun deck, movie screen, etc. Majestic cruises will offer the following services, on additional payment:

• Any food in any fine dining restaurant.

• Any soft drinks or alcoholic drinks.

• Wi Fi connectivity and access to the business centre.

• Shore excursions

• Spa treatments.

• Paid activities like Martini classes, Housie games, etc.

• Pre-Cruise and Post-Cruise excursions and stay, with and without flights.

• Airport transfers, meet and greet services, etc.

• On-board shopping.

• Casino and sports / gaming facilities.

• Private venues or private shows. Majestic cruises will have various options to buy add-ons, either pre-cruise or on-board:

• Packages for drinks, Wi Fi connectivity, shore excursions, spa, and paid activities.

• Packages for Pre-Cruise and Post-Cruise excursions.

• Weddings and party packages.

• Conferencing and Corporate Event packages.

• Airport transfers, meet and greet services, etc.

• On-board shopping offers and discounts. Majestic cruises will also have the following options on offer:

• Branding and advertising options.

• Private venues and private shows on hire.

• Options for product display and vending machines.

Majestic cruises offering will be further enhanced with unique elements:

• Cricket Nets

• 3-D art gallery

• 3-D manifestations throughout the ship

• Other elements depending on ship capability: Sky diving, North Pole, Roller Coaster, Water Theme Park, Video Gaming Zone, Indoor Theme Park.


The Entertainment: A very important, however curtailed with other cruise lines, is the entertainment offering of a cruise ship. Ships are famous for the kind and level of entertainment that is offered, and the big ones are now picking up the top names from across the globe to perform on their ships. All this is manoeuvred towards a theatre show in the evening on the ship.

In our case, our primary target segment is from India and Middle East, and culturally, these populations are very different from the rest of the world. They like to keep busy; holiday means a lot of activities and they relish inbeing engaged. Thus, the entertainment on board Majestic Cruise Line ships will be far more than a theatre show in the evening. It will comprise of stand-up comedians, magicians, impromptu dance troupes, flash mobs, etc. And all of these will have to be spread through the day so there are no moments when the ship is dull and lifeless. Our target segment does not relish too much rest and definitely does not want to lay down on the sundeck. As long as we keep them busy, they will be delighted.

This segment will have a deep impact on the overall NPS and word-of-mouth marketing of our brand name and our company.

The Head Quarters: Often ignored in the entire diaspora of everything else on board the ships, the head quarter will play a very important role in establishing the brand and creating an initial impact amongst the targeted travel trade fraternity. There are also functional elements, which will be unique to this part of the world. The headquarter will be a stand-alone building with its own parking and lawns. It will have to be sufficient for 200 people, while also ensuring there are other facilities inside as well, which include, but are not limited to:

• Stay: Given that a lot of us will be working till late and staying overnight, coupled with the fact that we will have frequent visitors from overseas who may be staff, partners, vendors or agents, getting a hotel for them to stay is not only inconvenient, but also time consuming and expensive. The HQ will have 8 to 10 well-furnished rooms for this purpose.

• Lounge: A restaurant visit not only involves logistics but is also not able to provide space for private and confidential conversations. An intimate lounge for entertainment of partners, vendors, officials, etc. will be built in-house.

• Terrace Garden: Or something similar will be built to host parties, which will cater to travel agents and tour operators on a regular basis.

• Training room: Fitted with a large screen and sound system, a training room is a must for the agents and the staff members.

• Control Room: Manned 24 X 7, this room will house large screens which are always in touch with the vessels at sea and has access to the several cameras on board the ships.


The Market

The market and the market segments for the business are wide-spread and thus make the business very viable and easy on the take. Following is the spread of our markets and market segments against each market.

The Markets & segmentation:

Market – India: India currently has shown a growth of double-digit growth in the past few years. FY 2017 – 16%; FY 2018 – 28%; FY 2019 – 56%. The growth in 2019 is primarily due to the presence of Jalesh Cruise Lines, which started off in April 2019 and was able to garner a quick support of the travel agent fraternity across the country. Although this was a low 3-star product, the aspiration for a cruise and the fascination of a cruise holiday, along with some clever sales strategies made it popular despite being cash strapped and lack of apparent marketing.

The popular European research firm, Bain & Company, who is a close partner to many top cruise & hospitality brands in the world, conducted a research in India on the prospective market size. The summarized version of that report clearly states India has more than 5 million people (not families) who are cruise aspirants and can afford a premium level cruise. They caution against a 3-star or 5-star cruise line and believe a 4-star level, calling themselves premium, is the best bet in this part of the world. Several valuable insights are available through this research.

On another angle of market strength, there are 3 key segments in India, and their pain points:

1. Domestic Tourists: Total Number: 1.8 Bn Affluent Class: 100 Mn 2. Outbound Tourists: Total Number: 25 Mn Short Haul: 20 Mn 3. Inbound Tourists: Total Number: 10 Mn Non-BagPackers:0.8 Mn

The reason for a widespread market is

for a few reasons:

• Remove dependency on any market.

• Be ready for expansion to various

parts of the world by having a world-

wide sales network.

• Have a varied & differential AP

(Advance Purchase) window.

• Allow for the brand to become

internationally acknowledged.


Domestic Tourists – The affluent class:

• The choice is limited to a few destinations like:

o Kashmir: Closed 2 quarters in a year due to local disturbances, volatile and has very limited inventory in terms of air seats and hotels.

o Kerala: Closed 2 quarters in a year due to rains and extreme heat, very limited inventory in terms of air seats and hotels, poor infrastructure and a trip requires a lot of traveling within the state. In the 4th quarter, when weather is good to travel, domestic travel requirements clash with inbound travel and the prices become steep.

o Goa: Oversold for the past 20 years and has lost most of its charm as a holiday destination. Still popular for cheaper hotels, beaches, and Casino.

o Rajasthan: Is feasible for travel only in Quarter 1 & 4, barring which it is very hot. Infrastructure is great to travel the entire state. However, these 2 quarters again clash for domestic & inbound tourists and subsequently the prices for travel are high. The state has nothing to offer beyond a history and culture.

o North-East India: Is plagued by infrequent flights and local level trade unions. Thus, the travel is very expensive with no great value for money.

• There are smaller towns and hill stations, which are over-used and offer no value in terms of entertainment or sightseeing, except for being a getaway. These also form a 3-4-night stay and are overall expensive considering land travel is generally by personal car.

• There are no locations in India, which can offer a complete entertainment or large infrastructure set-up at one place. There are no good quality theme parks or vacation spots which can offer experiences on dining, entertainment, and activities. Besides a holiday, there are other niche segments which yearn for such infrastructure and facilities:

o Weddings: Indian weddings are estimated to a $5 Bn industry. An

average wedding comprises of 200 people. Current trends and increasing demands are for out-of-city locations, theme weddings and destination weddings. Given the current infrastructure in most resort locations in the country, this is always a challenge.


o Corporate Events: The corporate houses like FMCG, Banking, Infrastructure, Clothing, Manufacturing, Real Estate, Medical, etc. have found the magical combination of rewarding their dealers and retailers through trips basis productivity schemes. Some of these events are very large an involve thousands of people traveling together. India has a lack of infrastructure to hold such events and overseas trips are often plagued with high costs and visa issues.

o Parties and Occasions: It is very trendy to celebrate life and various occasions in the middle class, upper middle class and the rich population. Be it the first birthday or 16th or 40th or a wedding anniversary or a graduation ceremony, there is a huge demand on destinations being able to hold such parties for a select or large group of people, and there is always demand for a new destination.

o Closed group travel: Be it family outings, or school reunions, or just a bunch of colleagues traveling together, there is a need for getting away with an all-inclusive holiday which provides ample activities to keep everyone engaged, while providing privacy for gatherings.

• In the domestic market, while Tier 1 cities or metros are the major targets, Tier 2 & 3 are the ones which will require a lot of attention, brand building and tour operator dependence. These are the cities where people are aspirational for newer experiences, no matter what the cost and there is a herd mentality. While the sales team presence will be in metros, frequent travel to the tier 2 and 3 cities will be done and roadshows organized, both B2B & B2C to create brand awareness.

Outbound Tourists: India has approximately 25 Mn people who travel overseas.

o Short Haul Destinations: Of this number of 25 Mn, more than 20 Mn travel to short haul destinations like Thailand, Malaysia, Singapore & Dubai. Some with a little more money to spare venture as far out as Hong Kong and Turkey. Most of these destinations offer a limited scope for repeat travel and a lot of time is spent commuting to and fro.

o A cruise competes very well with such destinations, as it offers a

one-time check-in for the entire duration of a holiday and everything else is within a walking distance. There is no dearth of activities on a cruise ship and the newness factor remains for a long time.


o A cruise also offers an all-inclusive vacation which includes stay, meals, and entertainment. Drinks are generally cheaper than on land, and there is a huge array of activities which can keep one occupied throughout course of the stay.

o Planning a short break with a 5-hour flight means about 10 hours or more just to reach a hotel. Some places involve traveling to 2 or more cities to explore the destination properly.

o Corporate MICE: Meetings, Incentives, Conferences and Events are

generally referred to as MICE. Approximately 5 Mn people travelled on MICE requirements to short haul destinations FY 2019.

o A typical MICE will involve extensive pre-event travel by the

corporate executives to see the hotels, restaurants, and entertainment options in a particular destination. This involves spending precious time and money.

o For any large movement, the group will often have to be split between different hotels, which make logistics a big challenge. A lot of on-ground coordinators are required to manage the spread.

o Good restaurants will often take up people in batches, which means a razor-sharp planning to ensure which coaches will reach the restaurant at what time and when will they leave. Any delays on this front will cause dis-sat with the people due to non-availability of meals or stale food.

o People must be managed arriving from various parts of the country into one destination, through immigration, flight arrival times and visa processes.

o On ground activities in terms of entertainment are limited and every corporate has various issues on how to keep people busy during the day.

o The gala dinner or gala night with drinks and dance are often the worse as people wander off in the cities and can get into trouble.

Inbound Tourists: India has an influx of 10 Mn tourist every year and the number is growing steadily.

o Tour Operators: There is a limited set of Inbound Tour Operators who bring in large numbers in terms of series. They have their own set of challenges: o Lack of infrastructure to handle very large groups.


o Limited set of offerings which they have been harnessing year after year.

o Lack of international standard when it comes to product in most places.

o No international style staycation option available.

o Destination Options: India as a country has not uncovered or launched a new destination in the last 2 decades. Thus, the marketing campaigns have nothing exotic or new to offer. There are places like Lakshadweep and Andamans, which are sensational in terms of their appeal, which cannot be marketed due to lack of destination reach and inventory available.

The major segments which will be targeted in India are

Domestic Tourist Short Break Tourists Adventure Enthusiasts

Short Haul Tourist Corporate MICE Family Groups

Cruise Aspirants Weddings Gamblers

Luxury Aspirants Events and Parties Inbound Tourists

Market – GCC:

Middle East as a market is a very important one, and again has no home-ported cruise lines. Dubai gets around 15 Mn passengers every year and they all automatically become a target for our cruise ships. Besides the inbound market in Dubai, there is local population and people from surrounding countries who will be prospective customers for our company. Domestic Tourists – The UAE population:

• The exposure of cruising to the local population of UAE is very high. They are used to seeing large cruise liners dock at their ports and the fascination is high.

• There is a limited option of destinations for short breaks.

• A large population comprises of Expats comings from various parts of the world, where cruising is well understood and is aspirational.

Inbound Tourists in UAE:

o UAE has 15 Mn people who visit the country every year. Their pride is on a very high repeat rate of tourists coming in. Their effort is to increase the length of stay by offering new experiences.

o The repeat tourists base is constantly looking for newer experiences to explore during the trip to Dubai. Neighbouring countries add to the attraction but are often bound by issues like travel times, visa, etc.

Other GCC countries: There is a world of opportunity in the GCC region. Considering this is one of the richest belts in the world, cruising is easily affordable and is very


aspirational. The Government of Saudi Arabia has recently helped place a ship on its shores just to promote the cruising culture. The middle east culture is very close to the Indian culture in terms of attire, clothing, and cultural nuances. They also value hospitality levels and are willing to pay for higher levels of service and quality food / stay.

o Saudi Arabia: Have a quick drive to Bahrain via their causeway and can

experience a cruise from the port of Bahrain. Also do frequent visits to Dubai for a short break or holiday owing to the open availability of liquor and night clubs.

o Kuwait: One of the richest countries in the region and looks at Dubai as a good holiday spot for a short break.

o Bahrain / Oman: Very affluent local populations, assisted by the large inbound.

The major segments which will be targeted in GCC are

Domestic Tourist Short Break Tourists Short Haul Tourists

Cruise Aspirants Corporate MICE Family Groups

Events and Parties Weddings Gamblers

Market – Russia:

Russia, comprising of all major countries from the former USSR, is a very large market, although our expectation from this market is not very high in the first half decade of operations. Russia is a large land-locked mass and people have a fascination for water and for cruising. Russians throng the beaches of Goa, Pattaya and Phuket, and are avid travellers. The Russians have an affinity for Indians, love the Indian food & culture and are fun-loving people. We just must tap into the tour operators which promote Middle East, India, and Sri Lanka. Being an all-inclusive holiday, a cruise works great for the Russian travellers as they often buy a one-price package when they travel. The major segments which will be targeted in Russia are

Short Haul Tourist Cruise Aspirants Family Groups

Long Stays Events & Parties Gamblers

Market – US, Europe & Australia:

These 3 markets will have a great business opportunity for this project. There are various segments which are being targeted in these markets.

Indian Diaspora: There are a few emotions that play with the Indian Diaspora. First off is their home country having developed an international class of


cruising, which they are fully exposed to in their resident countries. Secondly, when they come to India, the general itinerary revolves around first exploring a bit of the country with the family, and then going to their home state to meet up with relatives. The Cruise Enthusiasts: People who have experienced cruising across the world, are always open to new routes, ships, and experiences. The inbound traffic: Which flows into India, Sri Lanka, Middle East, or Singapore. International Events: Large international events like Surgeon’s conference, or World Travel Mart, or similar are always on the look-out for new venues and newer destinations. India has managed to construct the Aerocity, New Delhi and the Hyderabad Convention Centre in view of such events. However, they are unable to take these events due to lack of a 360-degree infrastructure as is required by such conferences. The ships can easily take it and are the perfect venues for such events.

Expat Families: India, Middle East & Singapore are home to numerous Expats and consulate staff staying away from home.

The major segments which will be targeted here are

Indian Diaspora Cruise Enthusiasts Inbound Traffic

International Event Hosts Expat Families -

Market – South-East Asia:

This market is important not only from taking a cruise from Singapore, but also for traveling to India or Sri Lanka to board a cruise ship. Various countries in this part of the world have a large population of people who aspire for cruising and can afford one. Vietnam, Indonesia, Malaysia, Singapore, Hong Kong & China (Mainland) being the major ones. From Singapore, they will have an option for a competitive cruise ship, which is very different from the ones they are used to seeing. The hospitality levels will be a class apart and the pricing will be at par or competitive. The major segments which will be targeted in SEA are

Short Haul Tourist Cruise Aspirants Family Groups

Long Stays Events & Parties Gamblers

How does the market spread help us?

• The organized sector markets, like Europe, US & Australia, plan well in advance and have a long Advance Purchase window. They are also well-aware of advance buying


being at lower prices. Thus, the booking from these markets is going to be almost a year in advance, which will help us fill the base of the ship for each sailing.

• The organized sector markets also place a lot of value on the shore excursions and are willing to pre-buy shore excursions, fearing the “sold-out” syndrome on any such excursion.

• Lastly, the organized sector market is our primary client for longer pre and post tour excursions. Given are 2 examples which will clarify how pre & post tours are big revenue generators:

o Post tour in Mumbai for the Golden Triangle: This includes a flight from

Mumbai to Delhi, stay for 3 nights in Jaipur & Agra, and a tour of Delhi, Agra, & Jaipur with visits to the Taj Mahal, Red Fort in Jaipur, and Red Fort in Delhi. People on this tour will be taken directly from the ship to the airport in Mumbai and placed on a flight to Delhi. As a company, we run a fixed departure with 2 or 3 coaches thus our pricing is great, and we generate a good profitability on this tour.

o Post tour in Colombo: On the cruise from Cochin to Colombo, we will offer a 4 or 5-night Sri Lanka post tour, in which we manage the accommodation, travel and sightseeing for the passengers in Sri Lanka to places like Kandy, Bentota, etc. and drop them back at Colombo.

• The Middle East market is plush with money and a lot of people just come to

destinations which offer Casino. Casino-backed packages, which run for a year, will be popular in this region.

• Casino based packages will also be very popular with the SEA markets.

• The spread of our marketing on a global basis also paves way for the future of the company.

o We are expecting this region to overflow with demand by the end of 5 years.

o However, if for some reason, the demand does not come up as expected, our global marketing reach will enable us to quickly position future vessels in other parts of the world, like the Mediterranean & the Australia-New Zealand sector.

o As we will have a ready brand standing in these markets. It will be very easy

to spruce up our offices, or GSA relationships, and position one or more vessels for local level sailings.


Strategy The strategy for this business will be a cascade model, which flows into creating ancillary support institutions that add on to the vision of the cruise line. As this is a strategy for the cruise company, a short note on the overall business strategy is given at the end of this document.

Vision & Values: Both are already detailed above. This is the guiding factor for the strategy document for the business. While our vision will tell us where to go, our values will define how we behave during the journey, as an organization and as individuals.

Focus Areas: o Focus Area-1: Brand building with Direct Clients, Travel Agents & Corporate Houses. o Focus Area-2: Product at premium level with all elements as given under Product. o Focus Area-3: Aggressive sales tactics to drive numbers.

Objective: The objectives are detailed above in the Objectives section. However, to reiterate:

o Get a minimum of 80% occupancy on sailings at good prices for the first few years; make this a profitable and self-sustaining operation.

o Have a very strong technology base with use of AI/ML to drive numbers, while having a lean team.

o Create a unique marketable product which is aspirational for a worldwide audience. o Follow the business plan path on numbers & ready for a Nasdaq listing in 3-4 years. o Have a valuation of $2 Bn with minimum 5 ships in 5-6 years.

Vision

Values Values Values

Focus Area Focus Area Focus Area

Objective

KPI Project


KPI: Will be built with a number driven approach for every aspect of the business, and the business itself will have a KPI of its own with time-bound benchmarks on milestones. Milestones will be on revenue numbers, profitability numbers, occupancy numbers, ancillary sales, and on-board sales numbers, etc. encompassing every element of the business & financial plan.

Projects: This is the key factor detailing what we are going to do. The project is around various elements, and each element is separately detailed without timelines:

The Organization structure: o Given that this company will be based out of a free-business zone like Dubai,

the complete organization structure must be drawn before we go ahead with any spends or policy decisions:

o Dubai: Will be the primary company where all the funds are required. This will be the technical operating base of the company.

o Bahamas: Is the registration point for the vessels. Can be managed through a lawyer in Bahamas against a fee without opening an office there physically.

o India: On paper, there will be a separate company in India, which acts as a GSA for the Dubai company, and is offered override commissions and / or marketing funds for sustenance and promoting the cruise company in India. The India unit will have branch offices in various parts of the country with a few people stationed as required.

o In reality, the complete operations base will be in India, and everyone will operate out of India itself.

o The Central team, marketing, operations, technology, and finance teams will be on the foreign company payroll. The sales team and some bit of finance will be on the India company payroll.

o There will also be 5-8 people positioned outside of India for sales and management. These will on the payroll of the GSA we appoint in those countries and the GSA will be compensated by a monthly retainer.

o Singapore & Dubai: Initially, 2 people each will be there to push the local markets and local regions for sales. They will also be responsible to manage the Embarkation and Debarkation when the vessels are in those ports. Eventually we will have one vessel stationed in each of those ports. Eventually, we will hire a few more people in these 2 regions to take care of our business.

o London: 1 person stationed at the GSA office, looking after our interests and marketing us throughout Britain and Europe. UK is the highest generator of inbound traffic to India with a large density of Non-Resident Indians.


The Money Flow and Taxation:

o International cruising does not attract any taxes from the local authorities. Local cruising or domestic cruising may or may not attract taxation from the local governments. Thus, the planning has been done in such a way that we retain our international cruise style and avoid taxation as much as possible.

o Mumbai: The first ship will make Mumbai as it base, while still being a foreign vessel visiting India. This will be a 1,500 to 2,000-seater ship.

o International Cruising:

▪ Cruises originating from Mumbai & Cochin will be touching Maldives & Colombo, apart from the local ports of Lakshadweep, Cochin and Goa. This will ensure no local level taxes are levied on the passengers or the ship. People or their representative agents will pay directly to the foreign entity and thus, there will be no GST applicable.

▪ During the monsoon months of June to mid-September, the vessel will be positioned in Singapore or Dubai or East Sri Lanka, as a home port and carry-on cruising from there. This will build up the brand in those markets, avoid the monsoon period in India and make way for the positioning of other ships in this region.

▪ In international cruising, while people are required to carry their passports and follow immigration procedure from the port of embarkation and debarkation, the destinations visited do not require for them to have a visa prior to landing. A cruise visa is issued in most instances, against the passport, and the guest can take a shore excursion basis this cruise visa.

o Domestic Cruising: This will be done to ensure there is coverage to

non-passport holders and to cover events and opportunities which may not consider international cruising. This will be less than 10% of the overall business.

▪ Under this head, the vessel is converted to a domestic vessel on a temporary basis by the port itself, against a set of paperwork and a small fee, payable to the port.

▪ The India company will take the vessel on charter basis, for a fixed charter fee from the foreign entity for this period, sell it as a domestic cruise, and collect money themselves in the Indian entity. They must apply the complete GST (18%) on each sale and deposit the same with the Government.

▪ The vessel on its own, will have to declare all provisions, including fuel, while being converted to a domestic vessel. At the end of the domestic run, the vessel will have to declare all


provisions again and the consumption of each element will be the basis of taxes charged by the Indian Government on the provisions.

o Dubai: The 2nd vessel will be home ported in Dubai as a foreign vessel. The

ship will be a smaller version, and we are looking at a 600 to 800-seater for this region, with all facilities as that of a large cruiser.

o Both the ships will be launched at the same time in Dubai.

o For primary vendors, the company will work on an out-sourced model as much as possible. All primary vendors, like the marketing agency, the software providers, call centre, etc. will be contracted directly by the Dubai entity and paid directly from there for all invoices raised, along with taxes, as applicable.

o As there are multiple currencies which will be applicable for various countries, the base currency for operations will always be in USD and every other currency will be an offset basis the day’s exchange rate.

The Vessels: Purchase of the vessels will be a key factor.

o Connecting with various operators by showing proof of funds, negotiating for ships. Purchase of 2 ships must be done one after the other.

o Inspection: Physical inspection may or may not be possible in today’s world. Most of the ships will be in poor condition with mildew, thus, we will have to rely primarily on the technical report provided by the ship companies, and then consulted with our technical partners. Post this, the technical partners will do a complete assessment of the shortlisted vessel(s) and submit a report.

o Design: Various design elements will have to be drawn out once the vessels are finalized, to match the product we aim to deliver. The designing will be done basis the blueprints and the technical report provided. After the designing is done, another technical report will be drawn out to match the final design.

o Dry Docking & Refurbishment: Basis the completed technical report, a few shipyards have to be contacted for an estimate on the dry docking and changes to the ship’s structure, with timelines. This can be done in conjunction with the designer or as a stand-alone exercise. Refurbishment elements will have to be procured from various vendors across the world with delivery at the desired and finalized shipyard.

o Testing & Certification: The vessel(s) will have to be tested in the waters on dry runs to obtain certification and to ensure everything is working as desired.


The Technology: o 3 types of technology are required for the complete operations. One is the

website, the second is the reservation platform and the third are the on-board systems. Basis the condition of the systems on board, we may or may not have to alter the ship navigation and safety management systems. However, the on-board guest interaction system will have to be in conjunction with the reservation system.

o The website is a complete one, which entails the provisions of an e-commerce website, amalgamated with a luxury story-telling website and the reservation system. A lot of analytical tools will be put in place as we want to be able to funnel each customer right to the booking and figure out where is it failing. The website is also a place where travel agents and tour operators and / or corporate houses will have their login, thus layering of each login will be important. Complete MIS tools, with account statements, wallet and customer relationship management will have to be built into the website. The CRM will not only be for us, but also for the agents as well to manage their customers.

o The reservation systems cannot be built in-house. It is a massive task which can take years. Instead, there are several systems available in the market which can be looked at. All of them are different from one another, which doing the basic job very well. A thorough run-through of each system will be required, post which we will select one, and then policies and business plans have to be discussed with the software company to be able to implement this system into our website. The implementation of such systems can often cost anywhere between 3 to 6 months. The systems must be equipped with every policy and process that we want to define.

o The on-board ship management systems will be basis what are already there, and we will try to retain as much of them as possible. However, the guest interaction system, which controls the guest reservations, point of sales, shore excursions, etc. will have to be purchased. This will be in sync with the reservation system to ensure both speak to each other properly.

Marketing: One of the most critical elements of this entire business, marketing will be managed with one of the top marketing agencies to build a brand and to drive business. The basis of the contract will be a pitch from these agencies following a briefing session, and cost. Marketing will be done to decide the logo, the brand essentials, the core messaging, the names of the vessels, the names of each of the venues on board the ships, etc. The focus of marketing efforts will be as follows, and this will be post taking out the expenses for elements like brand ambassador, travel, launch expenses, etc.


o Marketing will be done basis the story line and basis the market segments that we are targeting. It will also be spread across the world basis the market segmentation done above. A marketing agency not only brings in a pool of talent which is ready to go on day-1, there are specific analytical tools which each of the large agencies have developed over a period of time, which save us the time and hassle of building one in-house. A good marketing agency also brings along a set of alliances which become possible as we start working, as those are varied clients.

o A lot of marketing will also be done to the on-board clients for purchase & use of various on-board elements like Casino, Spa, Shore Excursions, Activities, and Premium Shows. Sales of future cruises are also a big part of the marketing effort on-board.

o A lot of generic content will be created in-house by the agency like video snippets, text, etc. which will be used on our digital channels, website and for our email connect marketing.

o An interactive module will be working with the customers before or after their booking, which will talk to them basis their requirements, and keep pushing for essential information, important steps to be taken (like check-in, meal requirements) and timelines or other purchases / upgrades.

o A very important part of the marketing efforts which is often underrated, is the PR agency. A high-quality PR agency is required to work in tandem with the marketing efforts. A PR agency helps push our important news elements and articles to the requisite publications. Very importantly, in today’s world, they are the ones responsible for taking care of any negative media or publicity, specially concerning any of the digital channels. A small negative new item can easily be viral to have a large impact on the overall sales efforts.

o One core message that our marketing will carry is the education of market on what a cruise holiday entails, and what are the various things why cruise

Digital will include Website,

roadblocks, FB, LI, TW, IG. It will

also include the complete set of

TTL marketing.

ATL will include Television, News Papers

and Journals

BTL will include Road Shows,

Familiarisation trips, collateral,

giveaways, etc.


is better than any other holiday and how does it compare to all the other holidays they have done. Cruising is a new phenomenon in this part of the world, and an education series will be very important to ensure our success.

o Library: A library will be created for all our collateral, free-to-use snippets and advertisements and our education series and product showcase videos for the travel fraternity to use and distribute as they like.

o The Digital marketing roadmap: We will be using every element available on the digital marketing platform, to ensure a 360-degree coverage and deeper reach into the targeted segment.

The Marketing Strategy will be comprising of 3 key elements:

Maximizing Reach & Impact Brand Launch Campaign • High Impact Display Inventory • Influencer marketing • Social – Facebook & LinkedIn & YT • Search, Programmatic

Sustenance Campaign – Brand Interest

‘Brand Campaigns + Tactical Promotions’ • Display (GDN & Programmatic) • Search • Social – Facebook & LinkedIn, OTT • Digital Radio, Native, SEO & Content

Relationship Building – Driving Acquisitions

‘Tactical Promotions’ • Search, Re-targeting – Programmatic • Social –Conversion on FB & LinkedIn • Web Notification, Newsletter • Email & SMS Marketing • SEO & Content; Call Centre Solution


Sales: Sales will be conducted in the traditional way, backed up by technology, to the travel fraternity and corporate houses. There are primarily two kinds of selling that will happen:

• Intermediatory Selling • Direct to Customer Selling

Both these kinds of sales will have various elements and some segregation is shown below for a better understanding of how sales will be split.

The target will remain to achieve

20% sales through direct

channels and direct

customers.

However, the initial sales will be

almost 100% from travel

agents & tour operators only.

The call centre, often taken to be

a reservation centre in context

to cruise lines, will act more of

an information and problem-

solving centre for us in the

very beginning.

Eventually, as the B2C business

grows, this will also act as a

reservation centre

A lot of cruise lines show a large

chunk of their revenues

flowing in from Casino, Liquor

& Shore Excursions.

These will be a part of our sales

strategy and the overall kitty of

our revenue. Sales for these

will be onshore & on-board.


General Sales Information: o While Delhi and Mumbai will be primary sales offices and hold counter space

for clients to walk-in, all other offices in India will be satellite offices working out of Workspace sharing offices. A set of team members will be employed in various cities to reach out to travel agents and push for business. They will also engage in training these agents on the reservation systems. Video modules will be developed for working on the reservation system, as a back-up to the training.

o The wholesalers will be connected with, separately, by senior members of the team, to make deals with them and allow them to pick up bulk cabins for retail. All this can be managed by them on our reservation system itself.

o B2B operators will be given a minimum benchmark to operate, and they can then create sub logins of their travel agents on our reservation system itself. They will be able to manage their credit, fund allocation, cabin allocation, etc. all on the system itself.

o Digital links will be created for various modules: o API – Bulk: There are operators like odyssey, who will be given

immediate API access, along with a content dump. These companies are already connected to several OTAs and travel companies and our information will automatically flow through to them.

o API – Retail: There are several operators in India and across the world, who operate online platforms which are used for direct clients.

o Widgets – Generic: Generic widgets with basic modification on the colour, box size, padding and brand marking, etc. will be developed, which travel agents can use as a quick plant on their website. Essentially, a customer clicking on any such widget flows to our website and the agent’s markers are retained for his commission.

o Widgets – White Label: White Label widgets will be created for agents wanting to give the client a perception of staying on their website, while transacting.

o Events: While the basic Corporate MICE can be handled by the sales team,

with the help of the robust reservation system, there are requirements within MICE and for other events like Weddings and Parties which include props, decoration, and a lot of ancillary equipment and provisions. For this, we will be appointing an experienced agent, who will invest in, and furnish all this, as our back-end supplier, while we maintain the front for all such events.

o Our global positioning will be as follows, as a mix of our own offices and GSAs:


India: 10 offices GCC: 5 offices South-East Asia: 5 offices China: 2 offices UK/EU: 7 offices USA: 7 offices S. Africa: 3 offices Russia: 2 offices Operating HQ: India, Gurgaon

Ship Operations: The primary operations on the ship are hotel operations, casino, spa, and shore excursions. The essential operations on the ship are navigation, maintenance, and medical operations. Everyone working on a cruise ship must have a seafarer certification.

o Hotel Operations: Hotel operations include Front office, housekeeping,

kitchens, restaurants, and bars. This is a large segment, which on the people front along involves hiring, certification and training of hundreds of people for each ship and managing their sea farer contracts as per International Maritime Law. Then there is a complete process and procedure on provisions, menus, sticking, preparation, etc.

o There are several niche companies around the world which manage

this job well. The primary negotiation is around the food cost, and then elements like staff salaries, provisions, etc. can be negotiated to arrive at a lumpsum cost or on a per person basis.

o They ensure all your operations as given in the hotel operations section and manage it user your guidance. This is a ready-to-go option basis which we can start operating very quickly, without the pain of hiring, training, and certification.

o An essential part of the earning from on-board sales is liquor sales, which will have to be provisioned while making such a contract.

o Ship maintenance and navigation is also an operation which is best

outsourced to experts. There are a few niche companies across the globe which undertake such work on a contract basis.

o The medical room is basically an extensive medical facility available on board the vessel. This will be run in conjunction with one of the medical companies who specialize in ship operations and manage the entire provisioning and staff allocation directly.

o Port handling: To manage the people coming to the port, handle their immigration and security checks through the proper authorities, ensuring a ship berthing at the desired location and time, ensuring the transportation for provisions, etc. are managed on time in the port and to-from the ship, are all managed best by a port handling agency. Various ports will have a different set of port handling agents and one of them will be contracted for handling our vessels.


o Wi Fi: A ship will require a dedicated bandwidth for its operations and navigation. For this, either a dedicated satellite or a dedicated bandwidth from a satellite provider will be taken. Additionally, some bandwidth is reserved for passengers to use on board during their cruise vacation. Wi FI is often sold to the customers and adds a substantial amount to the on-board revenue.

o Entertainment: The core of a cruising holiday is the entertainment and activities, which run non-stop through the day and night.

o A set of entertainers, essentially live music performers, will be

required to play at various lounges, bars, and places like the atrium.

o A good quality DJ is required for hosting parties on the pool deck and in the night club of the ship.

o A group of performance artists is required to handle the star attraction of every evening, also known as the Broadway show.

o A separate set of artists will be required to manage the day-time activities and performances.

o All such entertainers are essentially contracted companies or individuals, outsourced from an events management company.

o They can also add to revenue when there is a requirement for private performances for various events.

The Launch: The launch of any cruise liner is different from the launch of a ship. Each ship is individually launched to gain mileage and eyeballs.

o Company Launch: There has to be a comprehensive plan to launch the

company in a physical party environment in our key locations, which include Delhi, Mumbai, Colombo, Dubai and Singapore. Each launch will entail inviting the select few travel agents and tour operators, corporate houses, media, Government authorities and VIPs. A sparkling party will set the tone for our brand perception and our product image.

o It will be conducted in quality hotels in all these cities. It will be

showcased as a very exclusive agenda, on invite basis only, and with live entertainment. The entire show will also be used to introduce the brand, the quality and the vision & mission vide AV clippings. The core team introduction and a highlight of the reservation system will be important. Each launch will be followed by an aggressive ATL activity


in these cities, which will be followed up with the sales and marketing flows. Thus, timing of each launch is very important.

o A similar, but toned-down version, will be done in smaller cities in India like Pune, Ahmedabad, Chennai, Bangalore, etc. The invitation will be more open to the travel fraternity and the corporate houses.

o Very important in our highlights to people will be the following elements:

▪ Our brand imaging, premium product, and our market focus. ▪ Our product display with elements of the product showcased

on what the actual ship will look like – our ships will not have completed their makeovers by the time these launch parties go into play.

▪ Our technology strength and what can people expect when they go on a cruise holiday.

▪ A set of our commercials and infomercials which are planned for the city and the various programs that will be run for travel agents, tour operators, wholesalers, B2B operators, and corporate houses.

o Ship Launch: The launch of every vessel is a big deal and involves carrying on

a legacy.

o Naming ceremony: As a tradition with any new vessel or vehicle, while we will conduct our own religious ceremony, the naming ceremony of a vessel is full of grandeur and excitement. A select list of guests are invited to witness the naming ceremony, a god mother is appointed who names and blesses the ship for a safe voyage, and what follows is a series of entertainment programs and ship tours.

▪ This will be followed on by a one-night cruise for the invitees

to enjoy the benefits of cruising.

▪ The ship will put its best foot forward on this evening as this also involves a large media coverage.

o FAM trips: There are 2 kinds of FAM trips which will be conducted

during the launch of the vessel. This is primarily meant for the travel fraternity and the corporate houses to showcase the product and our promise on deliverables.

▪ Primary: This is done for the owners or high designation

holders of large travel companies and corporate houses. This kind of FAM is often done in smaller numbers with a lot of


attention to detail for each person on board experiencing the product.

▪ Secondary: This is done more for the travel agents at large, where junior and counter staff of travel agencies and the corporate houses are invited to almost full capacity and made to experience the vessel.

▪ In both cases, there will be a showcase of our brand, our vessels, and a stress on our technology.

▪ It is a good idea to make them run through a proper itinerary with shore excursions, etc. to allow them to have a complete experience. However, this will depend on when we do our launch and other factors.

o FAM Trips will be an on-going feature, although not at this scale. We

will place benchmarks for travel partners against sales or loyalty points, which will enable them to travel themselves, or allow their staff members to travel for free on the cruise ship. This will enhance experience of the team members and give them motivation to keep selling.


Management

The cruise company will be managed through a set of core team members and all functions of the company will fall under this core team. The management team has been constituted not only by weighing the abilities and experience of the people, but by also keeping in mind things like business continuity, managing multiple portfolios when required, situation handling abilities and market reputation of the people. All of them bring a unique set of experiences and abilities to the table.

The CEO: Devesh Khanna Born and brought up in Delhi, Devesh has travelled extensively across the globe and is at home in most cities and cultures in the world. He has worked with various popular brands and is the key brains behind the set up and operations of this entire project. He has launched several brands and key businesses in his career spanning 25 years and is a consultant and advisor to a lot of small and mid-sized businesses.

Devesh is a Hotel Management graduate from the prestigious Pusa Institute in New Delhi and has gone on to finish an advance management degree with the Rice University, London. He holds numerous certifications in leadership and product courses.

An animal lover, his home consists of an aquarium, bird cage and dog, apart from his family. In his free time, he keeps updating himself on elements of technology and likes to create amateur software and websites.

Devesh has been the Chief Commercial Officer for Jalesh Cruise Line, India’s first cruise line. He has been a director with MakeMyTrip where he nurtured a 100-crore MICE business from scratch, built the holidays business as you see it today and revamped the entire retail and offline network taking it from 12 to 65 offices in a span of 2 years, engorged with technology and highly profitable. He was a key member of Goomo’s success in India, a WireCard enterprise. Devesh has also held key positions with Yatra.com, Thomas Cook and Kuoni. His professional experience spans almost all verticals of the travel trade and he has immense experience in setting up and running overseas offices.

Devesh has very strong affiliations with the travel trade and business bodies. He has a great standing in the worldwide travel networks and is well recognized for his ability to launch businesses from scratch and take them to a multi-million-dollar platform.

The CMO / COS: Preeti Sharma Born in the north of India and brought up in various parts of the country, owing to her family’s military background, Preeti is the marketing brains in this operation. She has worked with a multitude of brands spanning various industries including hospitality, real estate, and marketing. She has several feathers in her cap for popularizing various luxury brands and companies in India.

Preeti holds a master’s in Criminology and Correctional Administration from the coveted Tata Institute of Social Sciences in Mumbai. Apart from her masters, she holds a lot of


certifications in the field of Sales & Marketing, Content Management, Digital and Social Media marketing.

A nature lover, Preeti practises yoga to keep herself fighting fit and handle the pressures of the corporate world. In her free time, she likes connecting with people and helping them with their personal and professional problems. This is what makes her a very effective COS.

Preeti was the Vice President and Chief of Staff for Jalesh Cruise Lines, and one of the most important team leads who enabled the launch of this cruise line company in India. Within this frame, she has assisted with various projects for Zee Esselgroup Network. Before this, she was the VP for marketing & strategy with Gazenia shelters, a real estate company focussed on projects for the armed forces. She was the head of Tourism and Customer Engagement for Lavasa Corporation. She has also held multiple portfolios with Aamby Valley, another luxury project – as Chief Housekeeper and then going to head regional sales for Aamby Valley and Hotel Sahara Star.

The CBO: Vikramesh Ojha A true hard-working, dedicated, and loyal soldier, Vikramesh is an electronics engineer, who went on to lead large organizations and workspaces in the field of electronics, FMCG, electronics and services. His diverse experience has helped him gain a deep knowledge in consumer behaviour and he is an expert at designing and implementing strategies for customer acquisition and customer retention. Having led several offices and large teams, his capabilities are sharp at managing a wide-spread business portfolio. He is always on the move and his biggest charm is his ability to maintain one-on-one connect with large customers and vendors. He has an uncanny ability to diffuse the tensest situations with his extreme and unusual sense of humour, while keeping a straight face, and his strength lies in getting through issues by finding a solution first and conducting a post-mortem later. He has worked with very big brand names like Reliance and Future Group. A natural conversationist, he gets along with people at all strata of life and is unique in walking through an office and recognizing even the office boys by name. Sales Head: Vibhore Chapre Born in Rajasthan and bought up in Mumbai, Vibhore has stayed in various parts of India owing to his job postings. He has worked with some very important travel brands in the country and managed to make a mark in the industry.

Vibhore is a graduate with several certifications on travel elements. His keenness on educating himself drives him to learn more and more of each product and process, and his instinct on questioning everything and making it in relation to overall numbers, makes him an ideal candidate for this job.


Vibhore loves to take long drives and assist with his wife’s homeopathic medical practise. He loves interacting with people and can keep a large team engaged. His organization skills are meticulous.

Vibhore was the head of FIT business for Thomas Cook. Before that, he grew from his position of manager to handling regional sales for South and West India for MakeMyTrip in a short span of time. He has worked with Orbit, which was once the only brand for conducting trade fair bookings across the world. His job enabled him to travel the world and handle the best & worst of corporate customers.

Operations Head: Nitin Sharma Nitin is born and brought up in Delhi and has all the hallmarks of a great salesperson and a brilliant negotiator. He is known to strike up conversations very quickly and create bonds with the most difficult of customers and vendors.

Being a commerce graduate from Delhi University, Nitin found his calling in travel and more specifically, sales and operations. He has handled everything from FIT travel, hotel, rail & cruise representations, MICE, and events. He is versatile when it comes to managing both sales and operations for any travel related business.

Nitin has a passion for detailing and his passion reflects in the way he conducts his life. This also makes him a brilliant operations person as he plans everything down to the last dot. He loves holding large group conversations and can engage on almost any topic with any set of individuals. He is very popular & respected with the Indian Travel Trade.

He was last working as the Group Account Director for Percept, a well-known company for Corporate Conferences & large events. Before this, he has headed B2B sales for Yatra.com and has worked in key positions in Thomas Cook and SOTC Kuoni. He has briefly tried his hand at being an entrepreneur with a moderate amount of success, which he gave up for his passion in handling large numbers and big groups.

Head of Corporate Affairs: Monu Chaudhary Monu’s roots are in UP though he has always been a part of Delhi. He has handled a variety of portfolios to make him what he is today, a great person to jump into any portfolio in the system. He has been personally trained by Devesh in almost every field there is, related to travel and tourism. Not the kind to shy away from learning, he has often been seen rolling his sleeves up and jumping in the dirt, just to make sure he knows every detail. He is an excellent back-up for any of the portfolios in the system, and a great central control guy.

Monu is a graduate from Delhi University and has kept himself updated by deep diving into technology in his free time. There is no job which cannot be done, and this moto makes him an excellent Man-Friday for every occasion.

He has a passion for fitness and spends whatever time he can spare in ensuring physical fitness. He also loves exploring new destinations and will pick his car to drive down to new locales every few months. He has a penance for handling people and has grown up the ranks in some of the toughest environments. He has managed call centres, run operations, run a


central control team for a large travel and MICE business and is equally capable of handling top shots in large corporate houses, as he is comfortable negotiating with vendors.

His last job was with Goomo, a German WireCard funded company, and has seen multiple portfolios here owing to the start-up environment. He has handled technology implementation, call centre quality & training, operations management, and central control of MICE in his stint here. Before this, Monu has played key roles in companies like Yatra.com and Snapdeal.

Apart from the above, there a few more members of the core team, which are not listed here, as it hampers with their current employment contracts. However, there are experts in various fields, which include technology, hotel operations and management, Revenue Management and the Financial World, for which core team members are already short-listed, spoken to and will be bought on board as the project takes shape.

All these people come from very strong roots and are proficient in their respective job profiles. What makes them invaluable to the business on hand, is their ability to take on additional responsibility and add value to each other’s jobs. This makes for a great business continuity planning, which is essential when building a business of this magnitude. CTO: Tarun Khanna Tarun is currently working as a Director, Technology for one of the largest technology operations in the country. He manages the entire Technology for India for Concentrix, and unofficially also manages smaller portfolios for them, like Philippines. Always found fretting in his office, with 3 or 4 laptops working simultaneously, he started working for Convergys about 18 years ago, which was finally taken over by Concentrix. He was retained, despite a difficult take-over, as a valuable employee.

His fondness for a variety of food and wines, often takes him to the smallest of corners in the city, where he is found enjoying his weekends, once a month, if he can manage to take a holiday. Even then, he sits close to the exit door, in case there is a call. His strength lies in his abilities to lead his teams in a very efficient manner. While strict on work and ethics, his team members swear by him for being their back-up. He is almost OCD’d on following protocols and processes and is almost fanatic about automation of every possible manual process that he can see or observe. He loves hosting parties at home and ensuring everyone is always topped up with food and drinks. His other passion lies in taking long drives up to the hills and settling for a quiet 2 or 3-day break from the madness. Extremely social and extroverted, he can always be found talking on the phone.


Financials

As stated above, the entire financials of the company are being placed in US Dollars. This is being done as there are multiple countries involved in this business, which leads to multiple currencies. Thus, the base currency will be US Dollar and every other currency will be an offset of the daily exchange rate.

The summary of Cash Flow - This is divided into 2 sections:

• Section 1: Operational Cost of the Ship and the Revenue generated by the ship.

• Section 2: GOP from ships, compared to other expenses and ship purchases. Section 1:

2022 2023 2024 2025 2026 2027 2028 2029 2030

$5 $54 $70 $77 $85 $105 $116 $127 $140

$2 $25 $28 $36 $40 $44 $54 $59 $65

$0 $24 $79 $87 $113 $124 $137 $169 $186

$0 $0 $26 $87 $95 $124 $137 $150 $186

$0 $0 $0 $29 $95 $124 $137 $150 $186

$0 $0 $0 $0 $0 $35 $116 $150 $166

$0 $0 $0 $0 $0 $0 $39 $150 $166

$0 $0 $0 $0 $0 $0 $0 $0 $47

$8 $103 $203 $315 $428 $556 $735 $957 $1,141Total $4,446

Ship 5

Ship 6

Ship 7

Ship 8

Total

$778

$352

$919

$806

$722

$467

$355

$47

Revenues

Ship 1

Ship 2

Ship 3

Ship 4

2022 2023 2024 2025 2026 2027 2028 2029 2030

$7 $42 $47 $50 $54 $59 $64 $69 $75

$5 $19 $21 $23 $25 $27 $30 $32 $35

$0 $23 $60 $65 $71 $78 $85 $92 $100

$0 $0 $25 $65 $70 $78 $85 $91 $100

$0 $0 $0 $27 $70 $78 $85 $91 $100

$0 $0 $0 $0 $0 $32 $82 $91 $98

$0 $0 $0 $0 $0 $0 $34 $91 $98

$0 $0 $0 $0 $0 $0 $0 $0 $40

$11 $84 $153 $231 $290 $352 $464 $558 $646 $2,791Total

Expenses Total

Ship 1 $467

Ship 2 $218

Ship 3 $574

Ship 4 $514

Ship 5 $451

Ship 6 $303

Ship 7 $224

Ship 8 $40

2022 2023 2024 2025 2026 2027 2028 2029 2030

-$1 $12 $24 $27 $31 $45 $51 $58 $65

-$2 $6 $7 $13 $14 $16 $24 $27 $30

$0 $1 $19 $22 $42 $46 $53 $77 $86

$0 $0 $1 $22 $25 $46 $53 $59 $86

$0 $0 $0 $2 $25 $46 $53 $59 $86

$0 $0 $0 $0 $0 $3 $33 $59 $67

$0 $0 $0 $0 $0 $0 $4 $59 $67

$0 $0 $0 $0 $0 $0 $0 $0 $7

-$4 $19 $50 $85 $138 $204 $271 $399 $494

$7

$1,655Total

GOP Total

Ship 1

Ship 2

$311

Ship 3

$134

Ship 4

$345

Ship 5

$293

Ship 6

$272

Ship 7

$163

Ship 8

$131


The first 3 ships will lose money in the first month or 2 of sailing, as these will be FREE sailings for the trade, with full expenses in play. This could have been taken as a marketing hit, however, for transparency, we have placed it under Ship GOP. Each Ship is planned for a month-on-month and a year-on-year portfolio for revenue, expenses and GOP, which will be an outcome of the occupancy levels, pricing policies and itineraries, given the varied port charges. The given table may be incoherent to some extent, it showcases the depth of planning:

A similar table, as given above, is planned for each ship, matching to certain set parameters. The above table is a resultant of an overall ship revenue planning portfolio. This is our primary table, which sets the base for planning everything else. The outcomes of this table are also controlled centrally which enable us to see various scenarios.

3.5

Jan Feb May Jun Jul Aug Sep Oct Nov Dec T-21 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec T-22

$0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 -$3.2 $1.8 -$1

$0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $5.1 $5

$0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $3.2 $3.4 $7

0 30 31 61

0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 72% 72% 80% 88% 88% 80% 80% 80% 72% 80% 80% 88% 80%

0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1,200 1,320 840

0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 36,000 40,920 76,920

0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 10,286 11,691 21,977


$0.3 $0.3 $1.8 $1.0 $1.0 $1.0 $0.3 $1.0 $1.0 $1.8 $12 $1.1 $1.1 $2.0 $2.8 $2.9 $1.9 $2.0 $2.0 $1.1 $2.0 $1.9 $2.9 $24

$3.8 $3.4 $5.4 $4.4 $4.5 $4.5 $3.6 $4.5 $4.4 $5.4 $54 $5.0 $4.7 $5.9 $6.7 $6.9 $5.7 $5.9 $5.9 $4.8 $5.9 $5.7 $6.9 $70

$3.5 $3.1 $3.6 $3.4 $3.5 $3.5 $3.3 $3.5 $3.4 $3.6 $42 $3.8 $3.6 $3.9 $3.9 $4.1 $3.8 $3.9 $3.9 $3.7 $3.9 $3.8 $4.1 $47

31 28 31 30 31 31 30 31 30 31 365 31 29 31 30 31 30 31 31 30 31 30 31 366

72% 72% 88% 80% 80% 80% 72% 80% 80% 88% 80% 81% 81% 90% 99% 99% 90% 90% 90% 81% 90% 90% 99% 90%

1,080 1,080 1,320 1,200 1,200 1,200 1,080 1,200 1,200 1,320 1,200 1,215 1,215 1,350 1,485 1,485 1,350 1,350 1,350 1,215 1,350 1,350 1,485 1,350

33,480 30,240 40,920 36,000 37,200 37,200 32,400 37,200 36,000 40,920 438,360 37,665 35,235 41,850 44,550 46,035 40,500 41,850 41,850 36,450 41,850 40,500 46,035 494,370

9,566 8,640 11,691 10,286 10,629 10,629 9,257 10,629 10,286 11,691 125,246 10,761 10,067 11,957 12,729 13,153 11,571 11,957 11,957 10,414 11,957 11,571 13,153 141,249


$1.3 $1.2 $3.3 $2.2 $2.3 $2.3 $1.3 $2.3 $2.2 $3.3 $27 $1.6 $1.4 $2.6 $3.6 $3.7 $2.5 $2.6 $2.6 $1.5 $2.6 $2.5 $3.7 $31

$5.5 $5.0 $7.6 $6.3 $6.5 $6.5 $5.3 $6.5 $6.3 $7.6 $77 $6.0 $5.5 $7.2 $8.1 $8.4 $6.9 $7.2 $7.2 $5.8 $7.2 $6.9 $8.4 $85

$4.1 $3.7 $4.4 $4.1 $4.3 $4.3 $4.0 $4.3 $4.1 $4.4 $50 $4.5 $4.0 $4.6 $4.6 $4.7 $4.5 $4.6 $4.6 $4.3 $4.6 $4.5 $4.7 $54

31 28 31 30 31 31 30 31 30 31 365 31 28 31 30 31 30 31 31 30 31 30 31 365

81% 81% 99% 90% 90% 90% 81% 90% 90% 99% 90% 81% 81% 90% 99% 99% 90% 90% 90% 81% 90% 90% 99% 90%1,215 1,215 1,485 1,350 1,350 1,350 1,215 1,350 1,350 1,485 1,350 1,215 1,215 1,350 1,485 1,485 1,350 1,350 1,350 1,215 1,350 1,350 1,485 1,350

37,665 34,020 46,035 40,500 41,850 41,850 36,450 41,850 40,500 46,035 493,155 37,665 34,020 41,850 44,550 46,035 40,500 41,850 41,850 36,450 41,850 40,500 46,035 493,155

10,761 9,720 13,153 11,571 11,957 11,957 10,414 11,957 11,571 13,153 140,901 10,761 9,720 11,957 12,729 13,153 11,571 11,957 11,957 10,414 11,957 11,571 13,153 140,901


$3.0 $2.7 $4.1 $4.1 $4.2 $4.2 $2.9 $4.2 $4.1 $4.1 $45 $3.4 $3.2 $4.7 $4.4 $4.6 $4.6 $4.7 $4.7 $3.3 $4.7 $4.6 $4.6 $51

$7.9 $7.1 $9.2 $8.9 $9.2 $9.2 $7.6 $9.2 $8.9 $9.2 $105 $8.7 $8.1 $10.2 $9.8 $10.2 $9.8 $10.2 $10.2 $8.4 $10.2 $9.8 $10.2 $116

$4.9 $4.4 $5.2 $4.9 $5.0 $5.0 $4.7 $5.0 $4.9 $5.2 $59 $5.3 $5.0 $5.4 $5.4 $5.6 $5.3 $5.4 $5.4 $5.1 $5.4 $5.3 $5.6 $64

31 28 31 30 31 31 30 31 30 31 365 31 29 31 30 31 30 31 31 30 31 30 31 366

86% 86% 105% 95% 95% 95% 86% 95% 95% 105% 95% 86% 86% 95% 105% 105% 95% 95% 95% 86% 95% 95% 105% 95%1,283 1,283 1,568 1,425 1,425 1,425 1,283 1,425 1,425 1,568 1,425 1,283 1,283 1,425 1,568 1,568 1,425 1,425 1,425 1,283 1,425 1,425 1,568 1,425

39,758 35,910 48,593 42,750 44,175 44,175 38,475 44,175 42,750 48,593 520,553 39,758 37,193 44,175 47,025 48,593 42,750 44,175 44,175 38,475 44,175 42,750 48,593 521,835

11,359 10,260 13,884 12,214 12,621 12,621 10,993 12,621 12,214 13,884 148,729 11,359 10,626 12,621 13,436 13,884 12,214 12,621 12,621 10,993 12,621 12,214 13,884 149,096


$3.8 $3.4 $5.1 $5.1 $5.3 $5.3 $3.7 $5.3 $5.1 $5.1 $58 $4.3 $3.9 $5.9 $5.6 $5.8 $5.7 $5.9 $5.9 $4.2 $5.9 $5.7 $5.8 $65

$9.5 $8.6 $11.2 $10.8 $11.2 $11.2 $9.2 $11.2 $10.8 $11.2 $127 $10.5 $9.5 $12.3 $11.9 $12.3 $11.9 $12.3 $12.3 $10.2 $12.3 $11.9 $12.3 $140

$5.7 $5.2 $6.0 $5.7 $5.9 $5.9 $5.5 $5.9 $5.7 $6.0 $69 $6.2 $5.6 $6.4 $6.3 $6.5 $6.2 $6.4 $6.4 $6.0 $6.4 $6.2 $6.5 $75

31 28 31 30 31 31 30 31 30 31 365 31 28 31 30 31 30 31 31 30 31 30 31 365

86% 86% 105% 95% 95% 95% 86% 95% 95% 105% 95% 86% 86% 95% 105% 105% 95% 95% 95% 86% 95% 95% 105% 95%

1,283 1,283 1,568 1,425 1,425 1,425 1,283 1,425 1,425 1,568 1,425 1,283 1,283 1,425 1,568 1,568 1,425 1,425 1,425 1,283 1,425 1,425 1,568 1,425

39,758 35,910 48,593 42,750 44,175 44,175 38,475 44,175 42,750 48,593 520,553 39,758 35,910 44,175 47,025 48,593 42,750 44,175 44,175 38,475 44,175 42,750 48,593 520,553

11,359 10,260 13,884 12,214 12,621 12,621 10,993 12,621 12,214 13,884 148,729 11,359 10,260 12,621 13,436 13,884 12,214 12,621 12,621 10,993 12,621 12,214 13,884 148,729

Ship 1 Detailing 1,500

Ship 1

Pax Days

Tota l Pax

Ship GOP

Revenue

Expenses

Ops Days

Occu. %

Pax / Day

Ship GOP

Revenue

Expenses

Ship 1

Ops Days

Occu. %

Pax / Day

Ops Days

Occu. %

Pax Days

Ship GOP

Revenue

Expenses

Ops Days

Occu. %

Pax / Day

Ops Days

Occu. %

Pax / Day

Pax Days

Tota l Pax

Pax Days

Tota l Pax

Ship 1

Ship GOP

Revenue

Expenses

Ship 1

Pax / Day

Tota l Pax

Ship 1

Pax Days

Ship GOP

Revenue

Expenses

Tota l Pax

2,968,272 3,573,718 4,087,707 4,405,727130,176 887,888 1,530,322 2,137,214 2,549,794

6,363,091610,633 728,513 848,078 1,021,062

8,788 10,423 11,190 12,723 7,330

Total Pax 37,193 253,682 437,235

Total Pax Days 22,270,818

1,167,916 1,258,779

92% 92% 86%

Pax Per Day 1,419 3,093 4,843 6,513 6,980

15,407

Occupancy %age 80% 80% 83% 84% 86% 89% 89%

1,613 1,825 1,978 2,349 2,555 2,708

2024 2025

$352 $464 $558 $646 $2,791

Days of Operation 245 883 1,251

$957 $1,141 $4,446

Ship Expenses $11 $84 $153 $231 $290

2026

$1,655

Ship Revenue $8 $103 $203 $315 $428 $556 $735

$85 $138 $204 $271 $399 $494

2027 2028 2029 2030 Total

Ship GOP -$4 $19 $50

Total Ships 2022 2023


Section 2:

The charts given above are an overall summary of how the business is being projected over a period of 10 years. A brief on each of the above is given below and then there is a showcase on various elements in detail. In this financial consideration, the entire money flowing in, whether for ticket sales or for any other sales or advertisement / alliances, is being considered as revenue.

o Books of accounts: As a business, we will manage 2 books of accounts, and will have to work in tandem for both. The foreign entity will be operating on a calendar year basis. The Indian entity, with local laws, will be operating on an April to March basis.

o Investment: The business requires an investment of USD 200 Mn. 50% of this investment will be utilized in the purchase of 2 cruise vessels and their refurbishment. The balance will be used to sustain the business through its gestation period and launch year. This is based on 2 ships to set sail anywhere between November 2022 to December 2022.

o The investment is at one-go in any free-business zone like Dubai. o Ships cannot be negotiated or solicited without proof of funds. o Our ability to pay cash for the ships will help us negotiate a great deal on the

vessel and on the dry docks and refurbishment.

22% 27% 29% 34% 36% -

37% 37% 42% 43% 37%

-460% -10% 9% 14%

-48% 18% 25% 27% 32%GOP %age

P&L %age

89% 89%Avg. Occupancy 80% 80%

2,000

92% 92% 86%

2,000 12000

83% 84% 86%

Ship Capacity 1,500+700 2,000 2,000 2,000 2,000

Cash Flow

$69

$544

Summary Cash Flow and Profit Statement (Mn, USD)

Total

$4,446

$2,791

$1,655

$115 $410 $544$57 -$45 $65 -$6 $73 $81

1 1

$200 $200

1

$240

2 1 1 1

$436

$1,219

$400

$100 $100 $110

$31 $28 $32 $40 $45 $52 $60

$8 $6 $13

-$35 -$10 $18 $45 $92 $152 $211

$85 $125

$558

Details

Ship Revenue

Ship Expenses

GOP

Expenses

Profit / Loss

Dividends $27

-$4 $19 $50 $85 $138 $204 $271

$8 $8

$315

2026 2027 2028

Investments

Cost of Ships

No. of Ships

$8 $103 $203 $428

$11 $84 $153 $231 $290 $352 $464

$150

$34 $41 $166

2022 2023 2029 2030

$646

$494

2024

$556 $735 $957 $1,141

$399

$80

$330 $415

$20

$910

8

2025

This is a depiction of how the overall investment will be spent. This is not a depiction

on the timelines of spends.

The asset base is heavy with each ship projected to cost $50Mn and $20Mn,

respectively. The dry-docking expenses will be $20Mn & $10 Mn.


o The showcased elements: o The cost comprises of elements of Salaries, Marketing, Technology, Office

rentals and utilities and the cost of running the ship. o The revenue includes all collections from ticket sales for the cruise, and

margins accumulated from Casino, sales of liquor and shore excursions. o The revenue does not include any estimated gains from advertisement or

product displays on board the ship, nor does it include any gains from selling of our real estate on website or doing any joint promotions.

o The cost does not include cost of initial provisions & stocking, which is a small element.

Each of the above elements are available on a month-on-month basis for the entire 10 years.

o The cash flow showing a positive effect of USD 57 Mn in the first year. This is not a

true reflection, but just a cash flow reflection. Our purchase of second ship may have happened or advances paid for the same. The first ship pay out may not have happened at 100% for the cost and the dry-docking expenses. Some part of technology to be acquired in the second year will also have been accumulated as actual expenses in the first year. An excess of USD 65 Mn in the third year is again, an overflow and notional, and will have certain elements of costs which will fall into the first & second year of operations, like ship purchases.

o The negative cash flow at the end of the 2nd year (& 4th) is due to the purchase of a new vessel, & the starting expenses of the company. The third ship for the fleet will be purchased, which is to be positioned in Colombo. This negative cash flow will be offset by the collection of ticket sales for next year. If that is not sufficient, there are many options which can be considered. One option is of drawing a bank loan or availing an overdraft limit for a limited period. The other is a private borrowing. The third is deferring payments for the ship into the next year. The fourth, but not so pleasing option is to wait another year to buy this ship.

o The second intake of USD 200 Mn is being reflected in year 3. This may happen in Year 4 or Year 5, depending on when we are able to list this company in Nasdaq, or find another investor to buy stocks in the company. Any delay in this investment will only cause a delay in the purchase of more assets for the company, and will not hamper the operations of the company, as the company on its own is operationally profitable.

o With an initial investment of USD 200 Mn, followed by a cash infusion of USD 200 Mn in the 3rd / 4th year, the company will have acquired assets worth USD 400 Mn, valued at more than $600 Mn, created a brand by huge marketing spread and spends and come out cash flow positive at the end of 5 years. In this entire journey of becoming cash flow positive, there are a few considerations, which may alter the over design of this business plan and subsequently the profitability status:


o Considerations for business planning: ▪ Occupancy of 80% to 90% ▪ Non-core jobs completely outsourced.

o Variables: ▪ Fuel costs and availability of fuel ▪ Port charges and Government taxations ▪ Cost of or shortage of provisions.

A deeper dive into the costs: A summary of the costs is given above for reference.

• This is a summary of expenses of all the expenses put together, i. e. for the

Dubai company and the Indian company. Each element has a further drill down and is made on the information available in the current environment. What is not considered here is the actual cost of the company set-up in both locations.

o Salaries are constructed in INR and then converted to USD, to maintain currency parity. The team design is very lean, with outsourcing being the main stay. This will help maintain an agile and efficient team, as well as give us the ability to change vendors if performance is less than expectation.

▪ Salaries for people in India will be split between the 2 companies in India and apportioned in the books.

▪ Salaries for Singapore, Dubai and London are not actually salaries, but will eventually form a part of the marketing cost, as these will go as monthly retainers to the GSA in these locations.

▪ The team strength for every additional vessel goes up only by a dedicated team in finance and marketing only. The rest of the team remains the same.

o Marketing costs are partly in INR and partly in USD and thus the entire cost is converted to USD to maintain currency parity. The marketing costs include costs of launch, ATL, BTL, TTL and travel.

▪ The marketing agency cost includes the cost of a brand ambassador.

▪ The costs may interchange between various heads basis the finalization of the marketing agency and the marketing plan.

▪ The cost to the PR agency is based on a retainer. ▪ The cost of the marketing agency will be based on various

deliverables and will vary on a month-on-month basis. ▪ The entire travel, for sales, business affairs or anything else,

has been attributed to marketing. Eventually, this travel will be split, and it will be attributed rightly to the sales or other teams, basis where and when travel happens.


o Technology costs are partly in USD as majority of the software companies quote only in USD. The costs taken are for one-time purchase of the complete software and there is a maintenance cost taken for the management of the same.

▪ The endeavour will be to defer the costs as much as possible

or take the software on a licence basis. However, that will be a part of negotiation once we have finalized the technology to be implemented.

▪ A part of the cost taken for technology will be the travel involved for our team to their office or their team to our office. Travel will be required to sit face to face and solidify business rules and procedures for various elements of the entire booking and delivery process.

▪ Some compromises will have to be made on the cost and quality of the technology to ensure there is complete compatibility on the on-board systems with the onshore system.

▪ There will be some basic systems required in the office like a CRM, Control Panels, etc.

2022 2023 2024 2025 2026 2027 2028 2029 2030 Total

$10 $10 $11 $13 $15 $18 $21 $25 $30 $153

$0 $0 $0 $0 $0 $0 $0 $0 $0 $2

$1 $1 $1 $2 $2 $2 $3 $3 $4 $19

$0 $1 $1 $1 $1 $2 $2 $2 $3 $15

$1 $1 $1 $1 $2 $2 $2 $3 $3 $16

$1 $0 $0 $2 $2 $2 $3 $3 $4 $17

$0 $0 $0 $0 $0 $1 $1 $1 $1 $5

$13 $13 $15 $19 $22 $27 $32 $38 $46 $225Ttl Cost

Query Cost

Travel Dom/Intnl

Launch-1

Col latera l

Marketing

Agency

PR Agency

Trade Shows

2022 2023 2024 2025 2026 2027 2028 2029 2030 Total

$6 $1 $1 $1 $1 $2 $2 $2 $2 $19

$5 $3 $4 $4 $4 $5 $5 $6 $6 $42

$2 $1 $1 $1 $1 $2 $2 $2 $2 $14

$0 $0 $0 $0 $0 $0 $0 $0 $1 $3

$0 $0 $0 $0 $1 $0 $0 $0 $0 $4

$1 $1 $1 $2 $2 $2 $2 $2 $3 $14

$13 $7 $8 $9 $10 $11 $12 $13 $14 $96

On Board

Others

Ttl Cost

Website

CRM

Maintenance

Tech

Reservation


o Office and Utilities costs include the cost of office rentals and utilities. The cost is made up of a few elements:

▪ There is a cost for the refurbishment of the Gurgaon HQ. This

is going to be our showcase office, and thus will be designed and refurbished on a rented built-up property.

▪ Currently undecided is the factor on the Gurgaon office or the Head Quarter. There are 3 options:

• First choice is of taking one on lease, provided we get a fitment for our unique requirements.

• Second option is to get a contract with a real estate builder, ask him to build at his own cost as per our specifications and lock in a 7 or 9-year lease.

• The last option is to build our own Head Quarters. This will definitely be economical in the long run, however, cause an additional burden on our resources and lock our finances in the initial stages.

▪ The major costs are rent for the Gurgaon offices, rent for the

Mumbai office and rents for all other offices in India.

▪ Utilities are costed for both offices in Delhi as these will be large offices and getting them on workspace sharing basis will prove expensive and unviable for operations. Office seating for various cities is projected as under (no. of people, in every city in India). This does not include seats of call centre which will be outsourced:

22 23 24 25 26 27 28 29 30

3 3 3 3 3 3 3 3 3

2 2 2 2 2 2 2 2 2

15 16 16 16 16 16 16 16 16

2 2 2 2 2 2 2 2 2

89 113 129 142 142 151 157 157 163

3 3 3 3 3 3 3 3 3

5 5 5 5 5 5 5 5 5

3 3 3 3 3 3 3 3 3

2 2 2 2 2 2 2 2 2

2 2 2 2 2 2 2 2 2

126 151 167 180 180 189 195 195 201

Offices

Ccu

Ggn

Amd

Blr

Bom

Pnq

Rai

Total

Ixc

Jai

Lko


▪ Asset cost also includes cost of laptops, Wi-Fi set up and running, etc.

o Ship running cost is all costed in USD, some costs are placed basis current date’s costs and is the most complex of the entire costs. A single ship cost of running is given below for reference. The financial plan has detailing for cost of all ships for the 5 years in continuance. This is a reference point to explain how the ship running cost goes.

Other Factors required for a daily cost.

▪ Daily fuel burn: This is a price for the fuel that the ship will burn on a daily basis. Given above is a factor, basis approximated engine power. The vessel, even when docked, is running one or two engines to keep the air conditioning and other equipment alive. The ship, when going long distances, garners more speed and thus has higher fuel burn. This price is an approximate of what an average daily fuel burn will look like on each ship.

• The number of days attached to the fuel burn are the number of days for which the ship will be in operation. As an example, the number of days is reduced from

$0.7

$1.0Total Cost of Offices

People

Asset Cost

Rentals + Expenses

126

$0.3

2030 Total2024 2025 20262022 2023

$1.3

$1.5

180

$0.5

$1.5

$2.0

151

$0.2

$0.9

$1.1

167

$0.2

195

$0.4

$2.4

$2.8

201

$0.9

$2.8

$3.7

189

$0.3

$1.8

$2.1

195

$0.4

$2.1

$2.5

180

$0.2

$1.1

$1.3

201

$3.5

$14.6

$18.1

Details 2028 20292027

Factor 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

3 3 3 3 4 4 4 5 5 5

5 5 5 6 6 7 7 8 8 9

2 2 2 2 2 3 3 3 3 3

3.5 3.5 3.5 3.5 3.5 3.5 3.5 3.5 3.5 3.5

4 4.00 3.89 3.78 3.67 3.57 3.47 3.37 3.28 3.19

40 40 39 38 37 36 35 34 33 32

40 40 39 38 37 36 35 34 33 32

2200 2200 2354 2519 2695 2884 3086 3302 3533 3780

15 15 16 17 18 20 21 23 24 26

5 5 5 6 6 7 7 8 8 9HK Supply

Hotel Cost

Crew

Enterta in

Activi ty

Avg Salary

Meal Cost

Port Charge

Port Cost

Per Head

Agency/Head

Avg. Tour

17.5 17.50 17.50 18.73 20.04 21.44 22.94 24.54 26.26 28.10 30.07

6.5 6.50 6.50 6.96 7.44 7.96 8.52 9.12 9.75 10.44 11.17

2.5 2.50 2.50 2.68 2.86 3.06 3.28 3.51 3.75 4.01 4.30

1.5 1.50 1.50 1.61 1.72 1.84 1.97 2.10 2.25 2.41 2.58

2.0 2.00 2.00 2.14 2.29 2.45 2.62 2.81 3.00 3.21 3.44Insurance

Fuel

Technical

Maintenance

Satel l i te


365 to 350 in 2024 for ship 1. This is done as the cost of the ship running needs to be calculated on the number of days when the ship is generating revenue. The rest of the days, the ship will be in dry dock or annual maintenance, and thus the fuel burn cost will fall under the maintenance costs.

• If the number of sailing days increase, our revenue rate is higher than the cost rate, and that would have a positive effect on the overall GOP numbers.

▪ Port charges: These vary as per port. Each port across the

world has a charge which is levied on every docking vessel for the services they provide and as rentals for the docking period. Port charges are on a 12-hour basis and are generally calculated basis the tonnage of the vessel. It is divided by 3.5 as that is the average length of the itineraries that we are going to be running, and thus, the ship will be on a dock once every 3.5 days.

▪ Per Head: These are port charges which are levied by ports on a per head basis. This is a clear count on the number of passengers embarking on the ship. This varies basis our occupancy and does not include staff members of the ship. It does, however, include visitors to the ship.

▪ Hotel Operations: This is a consolidated cost taken, for which there is a break-up available in the financial planning document. The cost is taken for an outsourced agency, which will be providing us complete services of running the hotel operations on board the vessel, which includes the restaurants, kitchens, housekeeping, front office, etc.

• In a typical contract, there is a price negotiated for daily food which is served to the people on board, including the guests and the crew.

• The staff salaries are paid separately, and housekeeping supplies are paid separately and there is a management fee on top.

• Majestic Cruises will not hire any person for this entire operation; however, Majestic Cruises will be responsible for their salaries and their uniforms.


• All these costs are averaged out on a per month basis, and basis the projected occupancy, it is brought down to a per guest fee for the contracting company.

▪ Port Agency: The port agency does various jobs, as detailed

above. They are also contracted on a per head basis, in terms of handling passengers embarking or debarking a ship.

▪ Technical Operations: This is the fee paid to the technical partner on the cruise ship, who undertakes everything else on the ship apart from the hotel operations. The other jobs include running the navigation, controlling the bridge, maintaining the safety regulations, ship engine running and maintenance, etc.

▪ Entertainment: An entertainment crew must be hired, on a contract basis, for the vessel. The types of entertainment crew requirement are given above in this report. This is a cost associated with their contracts, which include the production cost, averaged out for the duration of their contract, to be costed on a daily basis.

▪ Miscellaneous and Insurance: The ship will have to be insured for unforeseen circumstances. We will also have to make a third-party insurance for the passengers and the crew on board. There are many miscellaneous costs which come in with the running of the ship, a few examples of the same are given below:

• When sailing around the bend from Muscat to Dubai, there are Iranian territorial waters for which the insurance costs go high only for that day.

• If there is a specific event happening on board, like a product launch for an expensive car, we will require additional insurance for that sailing.

• Other costs taken under this cost head are running maintenance of spare parts or equipment, due to wear and tear or just simple break down, that may be required from time to time.

▪ Satellite:

• The ship requires data bandwidth to run its navigation system and to remain connected with the head office


as well as the ports. As the vessels are going to be in international waters for most times, we will require to pay a satellite system to get dedicated speed and data bandwidth for each vessel.

• Apart from this, additional bandwidth will be required to run our POS and other internal operations and stay connected amongst the crew members.

• The third big requirement is for the guests, for whom Wi Fi becomes a necessity as there is no cell phone coverage in open seas. Generally, sales of Wi Fi to the guests becomes a revenue source on board the ship.

▪ Maintenance: There is a per month budget amount of maintenance money which is accumulated every month to manage the annual maintenance requirements.

▪ The overall cost of running the ships across 10 years is given above and detailed in the financial planning document.

▪ The funds are generally allocated between the heads of Break-

Down maintenance and Preventive maintenance. These allocations will be a part of the detailing once the company is set up and budgets are allocated to each activity and each unit.

▪ There is a scheduled maintenance, which is a dry-docking

requirement of the International Marine law of 2 times in 5 years. Then, there is a break down maintenance, which happens unforeseen and has to be dealt with. Provisions have been made under maintenance for both kinds of requirements.


Investor Considerations

The investor will be coming in with an investment of USD 200 Million, against a stake of 70%. This allows the investor to have a substantial influence in all major decisions of the company. This section will showcase the risks and benefits to the investor, for their investment in the company, starting with the best-case scenario:

Why Listing in Nasdaq or Sell Out option: • Majestic Cruises will be operationally profitable very soon. However, to

garner a good valuation and to capture and dominate the market where we are going to be operating, the company will require to expand its fleet.

• The fleet can be expanded organically, by adding a ship every 4 to 5 years, or we can look at further investments and influx of funds to quickly gear up and remove a prospective competition from entering this market. Given its own profitability, the requirement of funds is not equal to the investment required for the purchase of more vessels.

• Thus, listing on a stock exchange will not only give us a brand image, but also provide funds for a quick growth in terms of expansion of the fleet size.

• The listing option: o The two things that we will be selling are both greatly acceptable to

the American public. We are selling cruises, profitably. Almost 50% to 60% of the world’s cruising happens in America and it is the fastest growing mode of vacation there. Thus, cruising is an acceptable business. Moreover, the current listings of Royal Caribbean International and Carnival Cruise Lines have seen stock portfolios grow multi-fold in a very short period of time.

o The second thing we are selling is India and the Indian Sub-Continent, including Middle East and a venture in the South-East Asian Waters, already known as a popular cruising hub. These are secured future markets for the Americans.

o Put together, showcasing a profitable and well-running operation will give us a good boost on our listing process.

• The Buy-Out option: o While listing is a better way to go, it is also a painful & a long drawn

and meticulous process.

o The second option we will have, is a buy-out of a limited stake from one of the larger entities, i. e. Royal Caribbean or Carnival Cruise Lines. Both have been known to buy out all large and popular brands in the recent decades to have an overall control over the world’s


cruising markets. Both make enough money every year to afford them the ability to buy out a large cruise line company.

o Basis the offers we are able to negotiate, and in conjunction with the investor, this is another good option that we will have.

• Limited stake investment: o As a company, we are going to leave 15% of our stake which will be

used for infusing the required funds for a quick expansion.

o There are several large funds across the world which will be solicited for this investment.

o This option is workable only if the primary investor does not want to exit the company completely at the end of this short term.

End of 6 years: • Considering that the investor wants to stay invested in the company, and

does not exit the company before the end of a 6-year term, the benefits that the investor can look forward to are 2-fold, i.e. growth of the initial investment, and a dividend value.

• The company will be estimated at a valuation of USD 2 Billion. At a 70% stake, the investor’s overall congregation will be worth USD 1.4 Billion.

• The company will be generating a GOP of ~USD 200 Mn, which forms the basis of the dividend to the investor.

• Being operationally profitable, the company’s growth is only going to be affected by its ability to list or sell out stake to a new partner after the first few years of operation.

End of 4 years: • If the investor is considering an early exit, this is the time, when the company will

be ready for a stock exchange listing or a sell-out, at an estimated valuation of a minimum of USD 750 Million.

• This is also a time when the investor may look at his partial or complete exit. • Given the valuation, the investor will have an option for doubling his original

investment in the company.

We recognize that this is an investment in a start-up business and not a running business with a history. Thus, every investor looks at an emergency exit strategy or a worst-case scenario exit from the business. Our purpose is to provide the best possible alternative to the investor to protect his interests. While there will be several options which can be discussed and negotiated if any such event happens, or if the investor himself wants to pull out due to a contingency at his end. However, there is a basic safety which is built into this plan, which makes these times the perfect times to start this business.


Worst Case Scenario Exit: • Background to the investment on vessels: in regular times, refurbished ships which

are 15-25 years in age, are normally sold at a price ranging from USD 100 Mn to USD 200 Mn. The price range is towards the higher side as the number of buyers is large and the availability of these ships is limited. A new ship costs anywhere between USD 600 Mn to over USD 1 Bn and takes 8 to 10 years for delivery due to the limited set of shipyards available for a new cruise ship construction.

• A cruise ship typically has a life span of 70 to 80 years, during which it changes hands 2-3 times and then converts to a cargo vessel.

• In today’s world, given the Covid-19 situation, every company is in need of cash flow to sustain themselves during the shutdown period. Thus, desperate measures have been put into place and the ships are selling for half the original price. We are estimating to buy such a ship, originally valued at USD 100 Mn+, at USD 50 Mn or less.

o At the lowest end, in normal times, a cruise ship would have costed us USD 100 Mn for purchase and USD 20 Mn – USD 40 Mn for refurbishment. A total of USD 120 Mn as the minimum asset investment.

o We are looking at buying ships at USD 50 Mn & USD 20 Mn, respectively, with a refurbishment cost of USD 30 (20+10) Mn. A total of USD 100 Mn as asset investments.

• In 2 years’, when the situation normalizes out, the demand for the ships will be up and high again. The demand will be higher than previously known as some companies will have let go of vessels which were yielding profits for them. Thus, ships would not only come back to their normal pricing, but the price of second-hand vessels is expected to rise to unprecedented levels. A lot of cruise companies will be looking at replenishing their fleet back to normal levels and would look out for ships to buy.

• Exit in 2 years: In the worst-case scenario, the investor will have 2 options for exit: o Find another investor, who can provide them with an exit by replenishing the

investment, along with a premium. o The 2 vessels in the fleet themselves will be worth more than USD 200 Mn,

given the market demand and conditions. The vessels can be sold off to recover the investment and the company assets like technology, brand, etc. will fetch another level of return for the investor.

For the investor, this is a good time to invest and a great business to invest in. The worst-case scenario provides him with more than enough options and a very credible options, to liquidate in case the business is a complete bust. In all other scenarios, the investor has options for exit at the end of 4 years and 6 years.

The investor also has the provision for staying invested for as long as he desires. The profitability of the company will secure regular level dividends for the investor and the value of the original investment made, will grow multiple times in every passing year.


Disclaimer

The current unfavourable economic conditions and business environments are carefully

considered while preparing this project plan. The success of this plan is basis the reduced

investment required due to the current conditions and the future change which is expected

basis the onset of vaccines. The estimates included in the plan are conservative, while not

discounting the business aggression which will be required to make this a success. Investors

are advised to exercise caution when considering investment alternatives because actual

data almost always differs from projections.

The business plan and this project report have been constructed to help investors

understand the potential risks, costs and benefits of this business project, but it is not

intended, and is not to be considered in itself or any part of it, offer for investment or

solicitation. Examples given in this report are for explanations only.


Company Summary

Majestic Cruises will be the first multi-ship cruise line company in the Indian Sub-Continent. It will be a privately managed entity, engaged in the business of owning and running a cruise ship company. The operating focus of the company is to start working in India and Sri Lanka, and eventually expand the reach to Middle East and South-East Asia. It will be a company based in Dubai, operating through a network of GSAs across the world, with primary market being India. The Product Promise

• International Styling Premium, All-Inclusive Cruise-Line experience with Indian Hospitality.

• The experience will be that of elegance combined with fun, backed up with technology.

• The ships will be equipped with casino, bars, lounges, speciality restaurants, night club, gaming zones and offer Indian and international cuisine at the highest standards.

• It will be a premium, yet affordable product with a lot of customer focus. • Key to the product offering will be loyalty programs, codeshare cruising, variety of

packages, exotic locations, and Fly-Cruise options. • Being a lean company with no baggage, we will be able to alter our offerings very

quickly as an option and as a design. • We are going to bring affordable luxury to this part of the world. • The product is being created which will target and be suitable for a large spectrum

of market segments. The Investor Promise

• Profitable and consistent growth aiming to deliver a high return on investment to the partner.

• The aim is to reach a 5-ship fleet and a valuation of USD 2 Bn at the end of 6 years. • The investor will always be as a top consideration while making any business

decisions. The People Promise:

• This will be an ethical and transparent organization, where clear goals are expectations will be defined for everyone, along with rewards and remuneration.

• Majestic cruises will be a healthy working environment infused with a lot of technology.

The competition:

• Our operating region and sphere have no major competition as of now in India, Sri Lanka, and Middle East.

• The previous owners of Jalesh Cruises, which was owned by ZEE, went bankrupt, when the Pandemic broke and ZEE-ESSELGROUP came under heavy losses in all their


major companies. They have now started a new brand called Cordelia, which does local sailings in India. This brand is not likely to succeed for a very long time owing to various factors and the near-sightedness of the top management.

• There is going to be competition when we start sailing from Singapore, however, given our investment in the creation of brand, and the uniqueness of our product, we will be very different from our competition.

• There is no cruise company in the world which has laid so much emphasis on the overall technology quotient, which will make us distinctive and unique.

• We expect other cruise companies to foray in our operating regions after a few years, given our success, which we will deal with by creating a very strong brand image and market indentation in the first few years of our existence.

• Our overall product portfolio and product delivery will be unique; thus, competition does not affect us too much.

o There is no cruise line company in the world which will match the range of

activities which we will bring on board.

o No cruise line company in the world will match the product portfolio, in terms

of entertainment.

o Our fine mix of elegance with fun will also make us unique.

o Our positioning of a premium cruise liner with affordable pricing will help us

garner a secluded spot.


Start Up Summary

The project is still in the ideation stage, with background work completed. There is no possibility of starting this project by boot strapping it by some amount of funds and then waiting for an investor. The base of the project is the acquisition of the ship vessels which account for 70% of the investment, including the technology. The first step in this project is to secure an investor who is committing an investment of USD 200 Mn to this project.

First Steps: • Creating a company in Dubai (or UAE) is the very first step. For this company to be

formed, we need to connect with a local lawyer. An option is to take his office as the registered office address and register the company. The other option is to take an office and register the company at that address. The first option is preferable.

• Once the company is formed, this company will have an office in Gurgaon, which will become our primary headquarters. We need to find an office space for setting up an HQ in Gurgaon.

• Third step is the hiring of people in the Dubai company with payroll in India, and simultaneously setting up an Indian entity which will be the GSA for Majestic Cruise in India.

• Segregating the finances of both these companies to run into projected balance sheets.

Following steps: • A lot of things will start working in tandem:

o Getting a pitch done from Marketing, Technology providers, Technical Operations and Hotel Operations firms.

o Reaching out to the cruise companies with our requirements for vessels. o Connecting with shipyards for our dry docking and refurbishment

requirements. o Getting our product line ready; identification of vendors and fixtures.

• Once the ships are identified, working with designers to get a design ready and taking final quotes from a shipyard.

• Getting the Gurgaon HQ ready. Getting the Gurgaon main operating office ready.

• Hiring of people.

• Negotiations for large ticket items: Insurance, Satellite, Fuel, etc.

There is a complete list of items which will come together, which is large in scope and needs to be completed before we can set sail. Timelines will be drawn with the sailing date in mind and work timeliness will be worked backwards, depending on when the finances come through.


Start-up date for the first sailing is projected around the first week of December. We are planning to launch the company officially on 7th September 2022. Basis this, the technology in terms of our website, reservation system and app must be in place 4 months prior. Our marketing must start 6 to 8 months prior. Dry docking with design should take 6 to 9 months, and the ship delivery must be taken on or before 31st August 2022, post all certifications.

The company launch in the market(s) must be planned to keep in mind the onset of the website and the reservation system. Meanwhile, a lot of travel will take place to meet up with prospective GSAs in various parts of the world. The marketing will start drawing videos and clippings out of ship renderings, as the vessels will not be complete by then, basis the final designs done up by the contracted designers.

Start Up Funding

While there is requirement of the entire fund at one go, considering that the first year remains at a positive cash flow of USD 57 million, and that the second ship will be purchased along with the first one, the project funding can be broken down across one year. These timelines are very strict as any delays will not only cause the project to be delayed, but work which has once come to a halt, requires a lot of additional funding (& fines from vendors) to restart:

• Day 1: USD 50 million: This enables us to activate all company requirements, office requirements and other utilities, as the same time start negotiating for our ships. No ship company will take us seriously till the time we are able to show proof of funds.

• 3 months: USD 50 Million: This enables us to finish the purchase of the vessel and go for dry dock, at the same time, start paying for our technology and other contracts.

• 6 months: USD 50 Million: To complete purchase of the second ship and enable dry docking for the same.

• 8 months: USD 20 Million.

• 12 months: USD 30 Million The only caveat to the above fund flow is the ship availability versus cost. This is a carefully planned operation to maximise savings to get the vessels at cheap costs given today’s environment and conditions of business. In the event that the prices of the ships are going up, we may have to prepone our purchase of the third vessel. In such a case, the 6-month block will also be required up at the 3-month mark. As the ship will have come in early, there is an expense of USD 2,000,000 which will be required for a layout of the ship till the time it comes into sailing. At this point, we can alter our business plan, given external conditions, to get the second ship in sailing much before budgeted, otherwise we can do a layout of the ship or solicit the vessel for charters to the global markets.


Company Ownership

The investment will take place in the foreign entity. The investor, in return for his investment, will be owning 70% share in the company. This share percentage remains undiluted even when we go in for additional funding at the end of 4 years. We will retain 15% of the company to be diluted once there is additional fund requirement or when we go in for listing, also known as Option Shares. The balance 15% share will be held by the CEO and the core team members. The distribution of this share will be shared with the investors once the company is being formed. The Indian entity will be an independent, marginally profitable entity and will be formed by people nominated by the CEO, as this must be a completely different entity. The purpose of this entity is to maintain a base in India and manage the local business through a local body. The investor will have no stake in this company. The listing or sell-out will only happen in the foreign entity. The Indian entity will be holding no assets at all and will have no value as a company expect for a nominal value of the brand it creates for itself. The investor will hold Preferred Class A shares, which guarantee a 4% dividend to the investor, irrespective of the company making money or not. This dividend is started after 12 months of the investment, and is calculated on a yearly basis, for a calendar year. Dividend will be paid out within two months of the year ending. Alternatively, the investor can opt for Common Class B shares, which have a voting rate of 1:1. However, Common Class B shares will not provide the investor with any dividend. Dividends, basis the number of shares held, will be started only once the company goes public and lists on a stock exchange. All the employees and the options shares will be Common Class B share. The CEO / Founder will hold onto 10% of the company shares in the form of Common Class A shares. Apart from this, the option shares will remain under the custody of the CEO/Founder till such time additional funding is required / solicited from external sources.


Additional Information

Majestic Cruises will be offering Ocean Cruises as well an additional on-board and onshore activities. Cruising is defined by the Cambridge dictionary as “The activity of going on a large ship for pleasure, during which you visit several places”. Cruising is of 2 primary kinds. There is river cruising and there is ocean cruising.

• River cruising, as the name suggests, is done on rivers. The boats are very flat at the

bottom and linear in structure. Most boats would not have a second deck. There is hardly any entertainment available on board, except for a Gym and a piano room.

o River cruising is typically used as a means of transport from one place to

another. You can start a river cruise in one city, it travels the entire night to come to rest at a pier of a new city in the morning, where you have the entire day to have a look around, and then return to the ship in the evening and the cycle repeats itself.

o Very popular in Europe, given the layout of the cities and the way the rivers have been maintained, river cruises can be as long as 17 nights.

o Shorter river cruises, with their own uniqueness are available across the globe, with some of more popular ones being the Nile Cruise in Egypt and the Sunderbans Cruise in Kolkata.

o A river cruise, being non-fancy, is far smaller in size, compared to an ocean cruise. Typically, you have gourmet meals included, instead of a food court, in a proper sit-down restaurant. Local wines, of the region you are traveling in, form the highlight. The cabins are generally of the same category and they are on either side of the boat, thus there are no “inside” cabins, and all cabins have a view of the outside.

o River cruises are generally one-way only and are the best way to discover the hidden lands which are otherwise inaccessible through road.

• Ocean Cruises, as the name suggests, is conducted on oceans or seas. There are a

range of ships and a wide range of purposes of an ocean cruise.

o Some people prefer the traditional style sail boats. Thus, there are open ocean sail boats available which can accommodate as many as a 100 people, which are available for cruising. This is, however, a very niche and expensive segment. The primary activities are partying and fishing or exploring remote locales and hidden gems.


o There is a Yacht level cruising facility, which is connecting to high end cruising.

It is very expensive, short duration and has the same primary objectives as those of sail boats.

o The more popular terms of ocean cruising is what people generally identify with, where you have large ships, equivalent of floating resorts, full of activities and people get to spend a fixed amount of time on board. This is the product which Majestic Cruises will adopt and build a business on.

Ocean Cruises – a quick guide:

• Ship Sizes: These have started out small and are reaching mega ship status today. While Majestic Cruises is vying to get a ship which holds 1700-2200 passengers, the newer ships being purchased today by the large conglomerates have passenger capacities more than 6,000 people:

o Symphony of the Seas commissioned by Royal Caribbean can hold

6,630 passengers and is divided into 7 sections or colonies. This has been commissioned after they have already brought in the Harmony of the Seas and Allure of the Seas, both of which have guest capacity of more than 6,000.

o The Mardi Gras, which is due for commission in the next -3 months, has a guest capacity of more than 6,300 passengers.

o Such large ships are proof that this business is profitable, can drive economies of scale and is manageable by some good planning and homework.

• Dining: Typically, every cruise ship has a ticket price which includes stay and

meals. The meals which are free, are served in the food court. In addition to this, there are speciality restaurants, which offer a fine dining or an exotic cuisine option for an additional price. Some restaurants also have a dress code. While some ships, to maintain some sort of semblance, provide timings for guests to visit the food court, most cruise companies have no such restrictions. Food is available throughout the day on most cruise ships.

• The variable stay: A lot of experienced cruisers have a lot to speak about which cabins to take and which ones to avoid. The cabins in the middle of the ship and on higher decks are more expensive than those towards the aft or stern and on lower decks. There are cabins on the inside of the ship, termed as Inside Staterooms. Then there are cabins on the lower deck but facing outside, which typically have a port hole or window to view the ocean. These windows are non-openable. The ones towards the outside and on higher


decks are given a balcony and some with more space are termed as mini suites or suites.

• General: Ocean cruising will rarely cause sea sickness. The motion of the ship is so steady that you can hardly feel it moving. Once the engines kick in, there is a hum and vibration which is felt, which one gets used to very quickly. After this initial feeling, unless you are on the sun deck and can see the sea splash by, you do not even feel the ship move. Every journey starts with a safety briefing and the ships are equipped with some of the most sophisticated safety management systems in the world.

Some quick facts on ocean cruising:

• The cruise industry is the fastest growing sector of the leisure travel market.

• About 30 Mn people cruised in the year 2019.

• The Caribbean is the world’s most popular cruise destination, accounting for one-

third traffic.

• The Mediterranean is the second most popular cruising destination.

• 24% of the US citizens have taken a cruise holiday. Cruises account for roughly 1 in 8

holidays in the United Kingdom.

• The industry creates roughly 5,000 jobs every year.

• The original Titanic would barely be fraction of the size of most modern-day cruise

ships.

• The average cruise ship sails the equivalent of 3 times around the world each year.

• There are cruise ships designed for permanent residents.

• More cruise ships depart from Florida than anywhere else in the world.

• Cruise ship anchors weight about as much as four elephants.

• Cruise ships have a morgue and a jail on board.

• Cruise ships involve more technology than any other means of transport.


Business Model The business model is based on selling cruise ticket as the base revenue making option. 15% of the revenue is considered from additional sales (liquor, spa, shore excursions, casino, etc.). This additional sale is also known as OBDR or On-Board Revenue. The basic business model is to consolidate selling in each country through a GSA.

• A GSA will be the General Sales Agent, who will operate in a particular region or

country.

• Every sale done in any country will be credited to the account of the GSA. The sales may be B2B or B2C. All sales will have to be conducted on the reservation platform.

• The GSA will get an override on each sale irrespective of the sales channel.

• The GSA will also represent the company in that region or country and handle sales & training.

• There may be additional PSA (Passenger Sales Agents) appointed by a GSA in a particular region or country. These can be B2B operators or wholesalers.

The overall reservation system will have the following layers:

• The company admin: controlled by key core team members. • Company admin level 2: controlled by key team members of the company.

• Level 3: The GSA level and the level for the call centre:

o Allow creation of login under the primary GSA login. o Be able to identify a login based on IP address and allocate the same to the

GSA. o Allow MIS in terms of bookings, money flow and information to the subset

customers.

• Level 4: B2B operators and Wholesalers: o Ability to allocate cabins to various agents and create sub agents. o Allow MIS in terms of bookings, money flow and information to the subset

customers. o Also allow credit and commission control to the subset of agents.

• Level 5: Travel Agents & Direct Customers: o Travel agent login will be granted post a small verification process, and they

will be entitled to a commission or discount on the booking amount, before taxes.


The money flow & business:

• The Travel Agent: He will always be on a discount model, instead of a commission

model.

o There will also be a provision for him to pay a deposit which will be reflected in his wallet, and all reservations will be deducted against the same.

o He will also have provision for sending any booking payment link out to the customer, to get the customer to pay directly. In such cases, he will be able to manipulate the payment amount to a minimum of his NET payment, and to a maximum of the overall booking amount. All the additional money collected will be credited back to his wallet.

o There will be a loyalty program specifically for the travel agents, which will be in addition to the loyalty program for the customers. This loyalty program can be used for payment of cruises or taking FAM cruises or upgrades for the passengers.

o There will also be a commission for all add-on sales which hare conducted by the travel agent. No commission will be paid for any purchases done by the customer directly on board.

• The customer: Will have a great loyalty program to bring him back. The login will

have complete detailing of all past, present & future transactions. In addition to the main product and the related add-ons, Majestic Cruises will also offer ancillary services like airline ticketing, hotel reservations and transfer, which a guest can use to book a complete holiday. These services will be outsourced from a selection of partners.


Competitive Landscape

There are currently no major cruise line companies operating in this part of the world. However, there have been other companies and there are some small boats.

Jalesh Cruise Lines came to India in April 2019, closed operations due to Covid-19 in March 2020, and went under administration in October 2020. The vessel was auctioned off to a scrap dealer. The company garnered ~90,000 passengers in one year of operations and was operationally profitable towards the end of its journey. This created the culture of cruising in India and was powered by the Esselgroup. A big impact which led to the administration of Jalesh Cruise Lines were the losses in other companies of Esselgroup.

Esselgroup, through the path of some foreign holding companies, has now launched another brand called Cordelia Cruises. The overall operation and working is similar to Jalesh, it is a low grade 3-star product, with negligible marketing and an inefficient sales team. This was launched in January 2021 to set sail in May 2021. They finally started mid-September 2021. This, for us, is a good thing, as this will keep the cruising culture alive, however, this company may not succeed, primarily owing to their reputation, but also due to the business planning, domestic sailing target, singular target market, poor investment in terms of technology, marketing spread and the management team capabilities.

Angriya is a 400-seater vessel which operates between Goa & Mumbai. They operate a fancy vessel, complete with a nightclub and an infinity swimming pool. It is an overnight journey with just a dinner and breakfast on board. While no threat to a cruise business, this niche segment has kept itself alive and marketed itself well in the Indian market.

Costa Cruises hits the Indian shores about 2 or 3 times a year, when they are on their longer journeys. They dock at Mumbai and Cochin and then proceed to Maldives. What they sell here is just a left-over of 5% to 10% of their cabins for a Cochin-Maldives or a Mumbai-Maldives segment.

Star Libra had entered the Indian market about 12 years ago and were wiped out due to multiple reasons. First off, it was a sad product introduced to this market and sold as a premium product. Secondly, the Indian ports were not ready for a cruise ship and taxation became complicated for them.

In the Middle East, MSC Cruises and a few others dock themselves in the winters, when European waters are frozen, or destinations are too cold. They do not offer any large selection of cruises but are able to sell cheap as they are selling their leftover cabins from the longer sailings which they are undertaking at that point of time.

Sri Lanka has no cruise ships docking in. Jalesh, if it restarts, has plans to visit Sri Lanka.

Singapore is the hub of cruising in South-East Asia and is crowded by Star Cruises, Dream Cruises, Crystal and Royal Caribbean. There are advantages and disadvantages of entering a market like this. However, with the planned product uniqueness, our overall branding effort and our marketing skills, we are confident of entering that market and creating a new segment for the customer coming there.


Market Analysis Summary

The detailing of the target market is given above. This is a summary. Indian Market:

• There are a large number of affluent domestic tourist, who undertake 3 or more trips in a year. One of these trips will be a weekend getaway, which takes 5-12 hours of one-way drive, stay in a 3-star to 5-star hotel for 3-nights to 5-nights and no activity but all meals included. One trip would be a short break to places like Goa for 3-nights to 5-nights and include a flight with characteristics of a weekend getaway. A good trip is a longer trip for 5-nights to 10-nights to places like Kerala or Rajasthan, which primarily involves a lot of travel from one city to another, frequent check-in and check-out and meals at whatever restaurant is available enroute.

o A cruise beats all these holidays in every element, and eventually costs.

• The international tourists are defined by the ability to afford an international trip and holding a passport, where the overall travel cost to the destination often overtakes the total cost of the stay, meals, and sightseeing. Duty free shopping, new destinations and activities mark such a trip, although there is a limitation on these destinations and are often repeated.

o A cruise is a viable alternative to these trips, while offering far more value.

• The inbound tourists come here to enjoy the Indian Hospitality, culture, and cuisine. They will now have the option for a cruise as well which offers all of this, plus a trip to some of the exotic locations which are heard of but inaccessible by land.

• For the corporate houses, coming on board a cruise will be completely hassle free, as once on board, you have no coordination left for anything. Everything is handled, all meals and stay are at the same place and conferencing facilities are a-plenty. Entertainment is available.

Sri Lanka: Luxury or premium tourists arriving in Sri Lanka will have an option of traveling to these gems by land, spending a lot of time and effort on road travel itself, or take a cruise and visit all these beautiful destinations while in the comfort of a premium cruise line. There is also accessibility to Maldives for these tourists. Other markets: Aspiration for cruising, a great alternative available in the regions where cruising was never present, and affordable luxury with elegance and fun, makes the hallmark of a successful business. People come to Dubai so often that they will relish a time to stay on a cruise for some time. People from all over Middle East will be provided world class entertainment and casino, amidst world class facilities. International events will be targeted, which will yield result in 12 to 18 months. However, these events bring in a lot of people from all corners of the world and will help build a strong brand.


Target Market Segmentation Strategy

Majestic cruises will maintain a strategy where the target will always be the end-user. We realize the direct consumer will not book with us directly in the initial stages, however, there is no better way to control the business than drive this customer to their travel agent, where they demand for this cruise vacation. This marketing will be led by an education series in conjunction with showcase of the facilities, entertainment, cuisine, and locations. The travel agent marketing will be led by education series and will also showcase the ease of the cruise, their non-requirement once the customer is on board, the technology to make their life easy and the amount of money they can make. The corporate marketing will be all around everything that they require for various requirements like a conference, dealer meet, in-house meets, etc. and how a cruise fulfils everything with ease, and without any hassle. Eventually a cruise comes out to be a cheaper version of the overall spend done. For the mature markets, the stress will be on the quality of the product, the differentiation created versus other options and FOMO. The education series will be on 2 angles. The first and foremost is on what a cruise vacation is all about. The second will be targeting all other forms of vacation versus a cruise vacation and how this turns out to be superior. In the various world markets, we will solicit the existing cruising communities and showcase a very different product, appealing to everything that was missing in what they have experienced so far. The focus will be on a lot of entertainment, a plethora of facilities, a factor of uniques which they have not seen and the promise of the ever-shining Indian Hospitality.


SWOT Analysis

The strategy of the company is delivering a strong customer value proposition in a niche market. We are looking at growing the market, while cannibalising on the existing other product markets.

Our marketing infrastructure will be created to advance reach to the pin-pointed customer segments. Enough spends have been allocated to implement a strong and robust marketing plan, while building strong IP. We intend to use all forms of digital channels available, backed up with ATL and BTL marketing to supplement the efforts. A lot of large marketing companies have already made a pitch. We intend to fine tune the pitch to our requirements, once we start, to get the best value for every dollar spent on marketing efforts.

SWOT Analysis The SWOT Analysis provides us with an excellent opportunity to examine and evaluate the internal strengths and weaknesses of Majestic Cruises. It also allows us to focus on external opportunities presented by the business environment, as well as view potential threats.

Strengths:

• Location

• Exceptionally experienced and dedicated team

• Strong business plan built after intensive research

• Strong and nascent market

• Excellent experience in & knowledge of these markets and this business

• High use of technology

• Ability to alter offerings very quickly.

Weaknesses:

• Major fluctuation in the cost of provisions over time.

• Start-up challenges.

• Lower lead time to bring a large project to light.

Opportunities:

• Fast growing tourism sector in the primary market of India.

• Lack of competition – first mover advantage.

• Building a cruise category and setting benchmarks.

• Casino operations – highly aspirational in India, GCC & SEA.

• 7,000 kms of coastline with multiple ports in India; vicinity of exotic locales.

• Affordable luxury segment, which is missing.

• Lower age group of travellers (35-55), providing high repeat business.

• Lower cost of business entry given the current business & economic environment.

Threats:

• Slower economic recovery process than anticipated.

• Government taxation policies in the future.

• Force Majeure events.


Competitive Edge Majestic Cruises will have a very strong competitive edge over any other company considering stepping into this region.

• Brand new company with new product offerings – no baggage of perceptions.

• Complete lack of competition in this part of the world – it will take time for companies to understand how to operate in this part of the world and then form an infrastructure.

• Unique business offering.

• Cost of business entry will have risen many times in the next few years.

• Focus on technology, product delivery and dominance over the B2B markets.

• Our reach to the core of these markets, where the core team itself is instrumental.

Sales Strategy

We recognize that these markets are price and service sensitive. Being a new entity, we recognize that we will need to prove our company’s worth to the target segments, in order to earn respect and repeat clients. Our sales strategy will be a push strategy through aggressive marketing, driving customers to the travel agents. We will focus on the ticket sales, which showcasing every other product. Post the sales of the ticket, we will solicit other offerings on a pre-packaged basis at attractive prices before the cruise, by highlighting the price differential and / or availability issues. The analytics tools will drive the call centres to push for conversion for every query, basis real time calling and offerings. There are other multiple strategies planned to ensure a great content generated by the users. For example, every tweet done by a customer, where they tag our company, will grant them one loyalty point. They will be able to tag their uploaded videos to our channel and we will grant them loyalty points basis the video. Future cruise sales will be done on the ship while they are sailing. Our AI/ML infused chat bots will be able to help people convert by offering the right product and price.

Consistent and customer-centric approach will be driven by ensuring strong policies and provisions known to every team member. Every team member will be empowered to deal with customers and every customer complaint will have a limited time frame to be dealt with effectively.

Lastly, a lot of digital tools will be created for supplementing sales. Cruise vouchers of value and destination are very effective for people to give out as gifts and for corporate houses to reward their dealers and employees without enforcing a particular date. These vouchers will be transferrable, and people will have options to upgrade by paying direct. Premium corporate houses will get more benefits when purchasing such vouchers.

Sales is not just about talking to the customer and convincing him to buy. We will approach sales with a lot of technology back up and smart ideas to ensure a lean team can have a large coverage area and they are effective in their approach to the market. A variety of back-up tools will ensure good sales.


Sales Forecasting

The vessels are projected at 1,000 cabins each. There is a split of each cabin type taken for building of a sales and revenue forecast.

This is the basis for making a sales forecast as each cabin type sells at a different value and to a different set of customers. Each ship revenue and sales has been forecasted separately for each year and for each month. A sample of the first ship is given below on various elements, which eventually leads to the overall sales number in terms of a dollar value. There are steps followed, as highlighted below, and all of this will eventually work on complete automation: Step 1: There is an assessment built which shows how the revenue for each cabin type behaves basis the occupancy level of the ship. The top row here showcases the ship occupancy level. The second row shows what percentage of the MRP will be applicable when that occupancy level is playing. All the other rows in front of each cabin type show the actual price in play basis the occupancy and the price.

Step 2: Basis the above chart, this is a calculation done of the total revenue which each cabin type will generate basis occupancy level and the total revenue on that benchmark of occupancy level. There can be many variations to the overall table, however, for the sake of projections, we are assuming each cabin type will sell in equal proportion to reach a particular level. To understand the table, if all cabin types sell in equal proportion and the ship reaches an 80% occupancy level, then the total revenue earned will be $ 184,320 on a per day basis, where the inside stateroom will contribute $41,760 for the day.

Cabins Split 1000 Pax MRP Port Ch

Ins ide 30% 300 600 120 15

Ocean 40% 400 800 160 15

Balcony 20% 200 400 200 15

Suite 10% 100 200 270 15

Cabins 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 110%

40% 40% 50% 50% 70% 70% 70% 90% 90% 100% 110%

Ins ide 48 48 60 60 84 84 84 108 108 120 132

Ocean 64 64 80 80 112 112 112 144 144 160 176

Balcony 80 80 100 100 140 140 140 180 180 200 220

Suite 108 108 135 135 189 189 189 243 243 270 297

Cabins 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 110%

16,360 32,720 52,420 72,120 98,500 1,24,880 1,51,260 1,84,320 2,17,380 2,53,780 2,93,520

Ins ide 3,780 7,560 12,060 16,560 22,500 28,440 34,380 41,760 49,140 57,240 66,060

Ocean 6,320 12,640 20,240 27,840 38,000 48,160 58,320 71,040 83,760 97,760 1,13,040

Balcony 3,800 7,600 12,200 16,800 23,000 29,200 35,400 43,200 51,000 59,600 69,000

Suite 2,460 4,920 7,920 10,920 15,000 19,080 23,160 28,320 33,480 39,180 45,420

MRP is a marker for each cabin

type. Port Charges are taxes to

be levied irrespective of the

cabin price being paid.


In terms of variations, it can easily happen that the inside staterooms get sold out 100% and the ocean view staterooms are at 50% occupancy only, while the balcony cabins are at 70% occupancy. The prices of each cabin type will fluctuate independently, keeping a view on the overall occupancy.

-A big variation to this, which is not reflected while building this simulation, is that cabins in the aft and stern are cheaper than the cabins in the middle. Cabins on the lower deck are cheaper than the cabins on higher decks. All these given variations will be built into the reservation platform and thus, pave way for a very robust and rewarding revenue management system, while offering a very low showcase price for marketing purposes.

In a real-life situation, basis the complex grid we are building, the ocean view room could be priced at a similar level to the inside stateroom.

Step 3: Basis what occupancy levels are being projected for a particular month, and the number of days the cruise will operate in that month, a revenue number is pulled into that month. This totals up at the end of the year to provide an average occupancy level, total number of passengers and more importantly, the total revenue earned in that year.

Step 4: The above revenue is a complete revenue. The above revenue is taken on an annual basis, and we also calculate the total number of pax and pax days. This helps us to calculate the OBDR (On-Board Revenue) which comes from other sources. This addition of OBDR results in our total revenue for the year.

Step 5: After these steps, we are finally able to view the complete revenue on a per ship, per year basis. The final table of the revenue give us what we forecast, however for calculation of our profitability, there is one more element which can lower our profitability numbers. This is the cumulation of other expenses, which are on shore.

Jan Feb Mar Apr May Jun Jul

$0.3 $0.3 $0.8 $1.3 $1.3 $0.8 $0.8

$2.0 $1.8 $2.5 $3.0 $3.1 $2.4 $2.5

$1.7 $1.5 $1.7 $1.7 $1.7 $1.7 $1.7

31 28 31 30 31 30 31

72% 72% 80% 88% 88% 80% 80%504 504 560 616 616 560 560

15,624 14,112 17,360 18,480 19,096 16,800 17,360

4,464 4,032 4,960 5,280 5,456 4,800 4,960

Pax Days

Total Pax

Ship 2

Ship GOP

Expenses

Ops Days

Occu. %

Pax / Day

Revenue

$340

Ship Revenue $20 $64 $70 $96 $105

Total

Ship GOP $1 $21 $22 $41 $44 $47 $51

2025 2026 2027 2028 2029 2030Ship 1 2022 2023 2024

3,106

Occupancy %age 80% 80% 80% 90% 90% 90% 90%

365 365 365 366 365 365

$116 $128 $140 $154 $894

Days of Operation 184 365 366

$554

1,350 1,350 1,350 1,350 1,300

Total Pax Days 220,920 438,360 439,440

90% 90% 87%

Pax Per Day 1,200 1,200 1,200 1,350 1,350

140,901 140,901 1,159,676

4,058,865

Total Pax 63,120 125,246 125,554 140,901 140,901 140,901 141,249

493,155 493,155 493,155 494,370 493,155 493,155

$55 $61 $69 $77 $86 $96Ship Expenses $19 $43 $48

$55 $59

The revenue number is a consolidation of all the steps show above, and arrived at on a

per ship, per year basis.


A detailed analysis of each cabin type on each ship on a per year basis is available in the financial planning document. As explained above, each element is taken in detail to reach the overall sales level. Eventually, the revenue marker looks like the table below:

All of the above information is based on our projections of occupancy levels of the ship. This is based on seasonality, historic movement of tourists and other target segments, and our experience of handling these markets. This is also one of the tools used by us to draw various scenarios when we do our planning for such a large project.

The ship GOP varies greatly basis which itinerary we choose to operate. On trips where we require higher speeds, fuel cost jumps up drastically. On trips where we require too many dockings will make the port charges go up drastically.

Ship 1 Pax Disc. 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

40% 600 50% 0.06 0.06 0.06 0.07 0.07 0.08 0.09 0.10 0.11 0.12

50% 750 60% 0.07 0.07 0.08 0.09 0.10 0.10 0.12 0.13 0.14 0.15

60% 900 70% 0.09 0.09 0.10 0.11 0.12 0.13 0.14 0.16 0.18 0.19

70% 1,050 80% 0.12 0.12 0.12 0.13 0.15 0.16 0.18 0.20 0.22 0.24

80% 1,200 90% 0.14 0.14 0.15 0.16 0.18 0.19 0.21 0.24 0.26 0.29

90% 1,350 100% 0.17 0.17 0.17 0.19 0.21 0.23 0.25 0.28 0.31 0.34

100% 1,500 110% 0.19 0.19 0.20 0.22 0.25 0.27 0.30 0.33 0.36 0.40

110% 1,650 120% 0.22 0.22 0.24 0.26 0.29 0.31 0.35 0.38 0.42 0.46

2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Avg

2022 0% 80% 80% 90% 90% 90% 95% 95% 95% 95% 90%

2022 0% 80% 80% 80% 90% 90% 90% 95% 95% 95% 88%

2023 0% 0% 80% 80% 80% 90% 90% 90% 95% 95% 88%

2024 0% 0% 0% 80% 80% 80% 90% 90% 90% 95% 86%

2025 0% 0% 0% 0% 80% 80% 90% 90% 90% 95% 88%

2027 0% 0% 0% 0% 0% 0% 80% 80% 90% 90% 85%

2028 0% 0% 0% 0% 0% 0% 0% 80% 90% 90% 87%

2030 0% 0% 0% 0% 0% 0% 0% 0% 0% 80% 80%

Occupancies

Ship 6

Ship 7

Ship 8

Ship 1

Ship 2

Ship 3

Ship 4

Ship 5


Milestones While each activity milestone is given in brief above in this report, some major business milestones are given here. It is important to note that the business operates on a D Minus syndrome, where the date of sailing is D and everything else works backwards as a timeline.


Marketing Strategy

Marketing strategy is detailed above. In summary, the marketing will be 80% dependent on the digital media, 18% in Below the Line marketing and only about 2% is estimated for the Above the Line marketing. This is a projected division, which may change once the experts from various marketing agencies give their expert opinions. ATL will be used primarily during the launch of the company and for launch of every ship. In addition to this, ATL will be used in conjunction with other partners like GSA and wholesalers or B2B operators to promote the brand. BTL will include roadshows, training sessions and presentations. This will an extensive operation on a very regular and focussed basis across all markets. Digital marketing will utilize all forms available, and an important segment will be marketing with alliances to a wide range of customers. UGC, or User Generated Content, will be solicited and provisions made, to create trustable content online. Before the onset of the brand, there will be video snippets created for various elements, including an education series, differentiation-focussed videos and experience highlights. Use of a brand ambassador will be very important for people to identify with. Regular content by known personalities (or influencers) will be used, alongside paid celebrity events, which can be sold at a premium. Our collateral will follow one common theme and colour. There will be 3 levels of collateral which will be printed, and simultaneously available in a digital format. An expensive and a rich-feel coffee table book, with the essence of the company and the values will be the foremost. A half A-4 size booklet for each ship detailing the provisions on each ship, the destinations it covers and the facilities available, which will be important for a customer to carry home. A mass distribution 3-fold brochure will be printed in bulk for all roadshows and BTL activities. Digital brochures with videos of the vessels will be available online in our public access library. Digital libraries will constantly grow basis the UGC available. Separate channels will be formed on LinkedIn, YouTube and Facebook. Television series will be created for showcase on food channels. We will also aggressively solicit the shooting for various television series, music videos, and commercial cinema, as those are the best promotions for a cruise brand. A host of parallel websites, blogs and vlogs will be created which will lead to the source of Majestic Cruises, ensuring a wide coverage. Codeshare cruising, which has never been explored before, and co-share loyalty programs with airlines are part of the marketing effort, which will be put in place at the right time.


Pricing Strategy

A detail on the prices, and how they are generated is given above. The pricing strategy is market specific and in certain places, like Singapore, will be affected by the competition. At any point in time, we will ensure the customers see great value for what they are paying. The core of our pricing strategy will be that the more you buy, the better your price gets.

As we have no competition, there is an opportunity to set pricing benchmarks, However, we will be competing with the local level 4-star & 5-star hotels and resorts and the pricing has been created basis that benchmark.

The pricing of the core of the cruise ship itself is very complex, and this complexity must remain within us, assisted by use of technology. The customer just sees the final price and related add-on prices. The given pricing is for a 4-night cruise. Every time the duration of the cruise goes up, the price per night goes down. Similarly, every time there is a lower duration of cruise, the price per night will go up. The cabins will be differently priced basis their location. Aft and Stern are cheaper than the cabins in the middle.

Lower decks are cheaper than middle decks, which are cheaper than the higher decks. Prices on weekdays are cheaper than on weekends. The price for a third and fourth bed is a fraction of the first and second passenger. A single passenger pays more than 50% extra than a per person cost on 2 people in a room.

Cruises with more options for shore excursions are marginally cheaper than the ones with lesser options for shore excursions. Various packages, wen pre-bought are cheaper than buying on board. Every additional entertainment or liquor package will result in heavier discounting on the same. Lower prices by advance purchase is already built into the pricing strategy. The combinations and complexities are endless.

There are several packages which are sold for casinos. There are high roller packages which involve a specific amount commitment at the casino, and then there are freebies attached to same such as flights, free cruise, etc. These packages will be sold, basis the laws of any country, to individuals.

Corporate houses or institutions can pre-buy future sail vouchers at a specific price for distribution or gifting purposes. Prices for these are very different from the regular prices.

Apart from the pricing, there is a refund and cancellation policy which will be customer centric, upfront to view for the guests and implemented through the system itself. As an example, if you cancel a cruise, and there is a 50% cancellation charge being levied, you may be able to postpone the cruise to a new date and just get hit by a 25% cancellation charge on this particular cruise.

Upfront refunds will be undermined by refunds in the form of cruise credits, which may offset the cancellation charges to an extent. Use of loyalty points to get on-board credit will be a big draw. Pre-booking your duty-free purchases can lead to another discount on the same.

The pricing strategy for such a large business is not a linear solution and this will be a key factor in our success.


Sourcing Strategy

The sourcing will be at multiple levels.

Sourcing for refurbishment:

• Basis specific requirements for a particular vessel, the common refurbishment requirements revolve around television sets, power plugs and points, carpets, furniture and fixtures, linen, crystal ware and crockery & cutlery, kitchen equipment, computer equipment, POS machines, bar equipment like dispensers, etc.

• Most of the sourcing will be done from manufacturers as the quantity required will be large. Sourcing will also be affected by region basis local level taxation levied on various goods.

• Sourcing of special requirements, like water slides, cricket nets, gaming zone fixtures, casino slot machines, virtual reality games, etc. will be done directly from the manufacturers. Various brands will be evaluated basis performance, pricing, and warranties, and then orders placed. Some products have monopoly, and they will be looked at in isolation (example: water slides on cruise ships is a speciality of a German water slide company only).

Other sourcing:

• There will be large items required on an annual or 2-year basis. Items like uniforms will not only require a designer, but a producer as well. Such vendors are already known to us.

• Uniforms will be required for the on-board crew, as well as the ground staff and sales staff.

• Sourcing of contracted elements like vending machines, etc. will be done from manufacturers. In most cases, only the amount for stocks will be paid as these manufacturers will be supplying us with the vending machines.

• Technology level sourcing of computers and laptops will be done with authorized vendors and wholesalers at the local country level.

Regular sourcing:

• Hotel operations sourcing will not be our problem in the beginning as the contracted hotel operations vendor will manage this on their own.

• Housekeeping supplies vendor will be fixed in Sri Lanka as the duties are lower. Minimal sourcing will be done from India.

• As the ship has a lot of space to hold, sourcing will be done in bulk and stored on-board to ensure better pricing.

• Regular office level sourcing of stationary and related items will be done from local level wholesalers only.

Many of the vendors for such material are already known and connected with us. It is a matter of start of operations and sourcing will be put into place. Most of the sourcing will require annual contracts.


Location and Facilities

Office locations:

Dubai Office: Will be a notional office. If the lawyers cannot provide us with an office address, we will have a small office operating in the free zone in a workspace sharing area.

Gurgaon Office HQ: This will be our primary and showcase office, meant specifically for the core team and core functions only. This office will be built with a large & multiple conferencing facility, lounges, and accommodation. We will have various sections to ensure various units stay together and distant from each other.

Mumbai office: Preference of office in Mumbai will be close to the port in any area like Nariman point. It may or may not be in a workspace sharing area.

Offices in India: All other offices in India will have 1 or 2 people for sales only. All these people will be based on various workspace sharing options available in those cities. Various locations for offices in India, apart from Gurgaon and Mumbai are given below, which will provide us with a comprehensive coverage of the country:

North India: Gurgaon, Chandigarh, Jaipur, Lucknow West India: Mumbai, Ahmedabad, Pune, Raipur South India: Bangalore, Chennai, Hyderabad East India: Kolkata

Call Centre: Although the location of our call centre is immaterial to the functioning of our organization, primary call centres offering good quality customer service personnel, reasonable prices, and great delivery on technology are available ion Gurgaon and Noida. One of these locations will be shortlisted as our call centre partner, basis an interview and a bid process, against specific deliverables and timelines.

Offices in Singapore & London, while having people dedicated to us and funded by us, will be the GSA locations only. All other offices across the globe will be GSA locations only. Our office location map will showcase each of these offices as our own. Global offices will be multiple, some common locations are: Middle East: Dubai, Kuwait, Muscat, Doha, Riyadh South-East Asia: Singapore, Hanoi, Ho Chi Minh, Hong Kong, Kuala Lumpur China: Shanghai, Beijing Europe: London, Frankfurt, Madrid, Paris, Rome, Vienna, Zurich USA: New York, Chicago, SFO, San Jose, Houston, Miami, Atlanta South Africa: Durban, Cape Town, Johannesburg Russia: Moscow, St. Petersburg


People Summary

Our management is expected to use resources wisely and judiciously, operate profitably, and abide by the laws and regulations. Our management philosophy is based on teamwork, responsibility, and mutual respect. People who work for and with Majestic Cruises will want to be a part of the team as we will encourage creativity, diversity, growth, and performance. Personnel Plan:

• Each core function, or multiple core functions, will fall under one core team member, reporting back to the CEO. The CEO will be answerable to the board and the investors.

• The entire HR processing in conjunction with the law of the land, will be maintained in-house. The part of HR, which involves KPIs and KRAs and eventually performance tracking, will be made a part of the unit manager’s job, without the push of an HR to accomplish the task. A people software will be used to keep track of happenings and timelines.

• Various department level people requirements are detailed below in the subsequent sheets.

• Each person will be placed on a grade and each grade will be having bands, which dictate salary. Every grade will have a separate set of authority and responsibility, defined from day 1 for every employee entering the sphere.


Covid Preparedness It is the year of the pandemic. While the year 2021 has a promise of vaccination of bulk of the population, and by the time we start selling the perceptions in the market will have changed drastically, and Covid will no longer be an issue at the time of our first sailing, there will be a certain set of precautions which we will be taking as a responsible product owner. This will be done to ensure the safety of our crew and our team members. At the same time, it will also be done to ensure people have their faith and trust in us. From a marketing perspective, we will be using these elements to show prospective clients how safe we are. Moreover, if everyone on board is vaccinated and tested, we become one of the safest zones on the planet, with no interaction with the outside world. Testing & Vaccination:

• Every person who makes a booking must have a Covid vaccination certificate.

• There is a 2-minute RT PCR test being developed. We will use that technology and buy our own machines to test people before they board the ship.

• This test will also be conducted on everyone after every shore excursion.

• The crew will be tested after every 2 sailings. Safety on Board:

• While there is a medical room on board, a few cabins will be sacrificed to convert them to an isolation wing with an ICU facility.

• Robotic vacuum cleaners, equipped with UV lighting, will be running through the day and night in public areas, cleaning and sanitising the areas.

• Strategically located thermal scanners will be monitoring people and sound an alarm in case of any abnormalities.

• Sanitisation protocols will be in place for all public areas on a monitored regular basis.

• Self-service buffets will be discontinued in favour of serviced buffets. A lot more is currently being said on social distancing on a cruise ship, and other measures being highlighted by the CDC for cruise line companies to comply with, including capping of guest capacity. However, the world is going to change once more post the vaccine spreads. We will be consulting with experts to frame our own protection policies closer to the sailing date.

End of Report

Devesh Khanna // +91 99713 43366, +91 98115 33366 // [email protected]

setting up first cruise line company

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