Category: Business

Business Case Study (Chemical Manufacturer)

Our client is a chemical manufacturing and selling company. Recently sales have dropped massively because of new waste disposal regulations, also market research has found industry will only grow at 3% in next 10 years client wants to diversify, while keeping his current business intact, because they want to grow at a faster rate, what is the advice that you will give to him.

What is Guestimate ?

Calculate the total cost of kites purchased during sankranthi in Ahmedabad ?

To estimate the total cost of kites purchased during Sankranti in Ahmedabad, let’s break it down using a guesstimate approach.

Step 1: Estimate the number of people who buy kites

  • Ahmedabad has a population of around 8 million.
  • Not everyone buys kites, but assuming 40% of the population participates, that’s: 8,000,000×0.4=3,200,000 (people buying kites)8,000,000 \times 0.4 = 3,200,000 \text{ (people buying kites)}8,000,000×0.4=3,200,000 (people buying kites)

Step 2: Estimate the number of kites per person

  • On average, a person may buy 10 kites (some for themselves and some for family/friends). 3,200,000×10=32,000,000 (kites bought)3,200,000 \times 10 = 32,000,000 \text{ (kites bought)}3,200,000×10=32,000,000 (kites bought)

Step 3: Estimate the average cost per kite

  • Kites vary in price, but an average kite costs around ₹10. 32,000,000×10=₹320,000,00032,000,000 \times 10 = ₹320,000,00032,000,000×10=₹320,000,000 That’s ₹320 crore.

Step 4: Factor in premium kites and bulk purchases

Some people buy designer or large kites costing ₹50-₹200. Let’s assume 10% of purchases are such kites, with an average price of ₹100. 3,200,000×1×100=₹320,000,0003,200,000 \times 1 \times 100 = ₹320,000,0003,200,000×1×100=₹320,000,000 Adding this to the basic kites: ₹320,000,000+₹320,000,000=₹640,000,000₹320,000,000 + ₹320,000,000 = ₹640,000,000₹320,000,000+₹320,000,000=₹640,000,000 Final Estimate: ₹640 crore (~$77 million) spent on kites in Ahmedabad during Sankranti.