Fwd: Feedback from BITS-Pilani (Mess proposal)
Abhishek Iyer
From: Joseph Mampilly <joseph....@in.issworld.com>
Date: Fri, Mar 30, 2012 at 10:51 AM
Subject: RE: Feedback from BITS-Pilani (Mess proposal)
To: Abhishek Iyer <aw.ab...@gmail.com>
Cc: Prof Sanjiv Kumar <chsk...@bits-pilani.ac.in>, "math...@bits-pilani.ac.in" <math...@bits-pilani.ac.in>, "kalluri...@bits-pilani.ac.in" <kalluri...@bits-pilani.ac.in>, "jitendr...@bits-pilani.ac.in" <jitendr...@bits-pilani.ac.in>, Biju AR <bij...@in.issworld.com>
Dear Abhishek,
The rates for the cost plus model or a fixed cost model was arrived after getting inputs from Rohit; please find attached mail for your reference. The cost of raw material in this business will be around 60-70% of the entire billing value. The rate of Rs.93 for a fixed cost model was based on the procurement value of 66 lacs.
My suggestion is that we look into the cost plus model for the first year so that we as the service provider can better understand the procurement process and the costs involved. Any savings will automatically be passed on to the students. Please also understand that this is partnership has many hurdles which we may have to overcome in the beginning to make this effective and sustainable.
1. Mess workers have to be integrated into ISS payrolls; salary, grooming, training etc. are to be inducted.
2. Centralizing the production and managing the food flow to all messes.
3. Procurement of material and managing the outflow and recording.
There are many such issues that will have to be sorted out before we understand the system and meet your expectations.
Thanks & Regards
|
ISS Integrated Facility Services Joseph Mampilly | Business Head -Catering | India |
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Corporate Office - Phirojshanagar | Eastern Express Highway | Vikhroli E | Mumbai 400 079 | India |
Correspondence - Old No.113/New No. 132 | Habibullah Road | T.Nagar | Chennai 600 017 |
Phone +91 44 42966700 | Mobile +91 9176990188 | www.issworld.com
From: Abhishek Iyer [mailto:aw.ab...@gmail.com]
Sent: Friday, March 30, 2012 2:40 AM
To: Joseph Mampilly
Cc: Prof Sanjiv Kumar; math...@bits-pilani.ac.in; kalluri...@bits-pilani.ac.in; jitendr...@bits-pilani.ac.in
Subject: Feedback from BITS-Pilani (Mess proposal)
Respected Mr. Joseph,
My name is Abhishek Iyer, and I'm one of the members of the student committee you've been interacting with at BITS-Pilani so far. Rohit is otherwise engaged, so I'll be your contact from now on. I hope this correspondence turns out to be a fruitful one for both parties involved.
This mail is regarding the revised proposal you sent. I'm attaching the file herewith just in case. Following are our concerns with the model you've advocated-
1. The structure of the model viz. a procurement cost + wages + management fee breakdown. After having deliberated over the matter, we think that the fixed-cost model you put forward previously is the better alternative. We apologize for the apparent to-and-fro movement, but we had asked you for this model so that we could gauge the relative merits and demerits of each model in order to come to a final decision. We would like a fixed-cost model with no financial nitty-gritties being handled by BITS.
2. When we cross-checked your procurement cost with what our current outlay is, we found the difference to be quite striking. Could you please elaborate on how you came to the figure you did (to the tune of 66 lakhs)? Because our procurement cost is nowhere near that figure at present, lying somewhere in the 40's at worst.
In a nutshell, if you consider our current procurement cost, take into account the cost-reduction that centralization would bring and add the requisite amount of tax percentage, the daily mess basic per student comes out to be in the range of Rs. 60-64. This price is open to negotiation, but we unequivocally feel that your quoted price of Rs. 93 per student per day is on the excessive side.
Please do get back to me with the necessary clarifications, and any queries of your own.
Thanking you,
Yours sincerely,
Abhishek Iyer
shilpa naik
ya, try asking them the division of the 66 lakh rupees. also if they want , they can do the market research out here na. I mean this is a huge deal for them so they better do their job. Also if they want to know more about the number of people coming to messes daily and all , maybe they can make a visit to our messes and get all the details they want.
