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Acknowledgement
I am grateful to Prof. Suneel Gupta for his guidance to be able to learn what I have. Also, I appreciate the valuable inputs of My Classmates which have helped in giving a different shape to the project report. Not loosing this opportunity to thank Prof. Prithvi Yadav (Director Sir) for his keen attention to the Part Time. To the best of my capabilities and keeping the constraints in mind, I have tried to understand (and elaborate) an INTERNATIONAL BUSINESS PLAN. In my FRP-1, I had discussed documents involved in Export of Apparels (ready made). This time, keeping the documents aside, I have included minor details of the on ground work needed to set-up a Manufacture to Export House Im not sure if the content is upto the expectations of the faculty but I feel to have accomplished the purpose of choosing and continuing with the topic. In FRP 1, I had especially thanked The Great search engine Google.com but this time, with little help from it, I credit my valuable text books of International Business, International Marketing and International Economics and the faculties who in a span of 3 years have elevated my knowledge to cover different aspects of the unit. I say so, because this report is not only about International Business, but about Marketing, Production & Management, Finance, Human Resources and Strategy. I thank the respective teachers of these subjects for their valuable knowledge which was imparted upon me making this whole thing work. One person without whom this project would be impossible, Mr. Vipul Bhatia of M/s Sarvi Impex, Kanpur (Exporter of Kids Apparel to US). He not only allowed me to visit and understand works at his factory but also gave constant telephonic guidance even during his busy season of work. I wish him lots of Good luck for his newly established Export journey and thank him for all his valuable inputs. Last but not the least, I thank the almighty God for empowering me to be able to study, to understand, to interpret and to apply the managements skills because I believe, many get an opportunity to study, others reach the interpretation. But only a few can apply the knowledge. Also, the support of my parents and wife cannot be compensated.

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Introduction
India is a one of the fastest growing economies of the world and it is well known fact that the journey of a nation from underdeveloped to developed nation is always filled with changes, challenges and And nearly 20 percent of the domestic production of ready-made garments is for exports. The EU is the largest market for Indian garments, accounting for over 40 percent of Indias total garment exports. The region has been recording steady growth over the years. Further in the report we analyse various factors of why I chose to export garments and what factors assisted me in doing so. Also we will try to analyse and choose the nation to export to. Today, we are a developing nation and the journey of a developing nation is filled Identifying this global opportunity to be in the league of Apparel export, I chose to be an Exporter of ready-made garments. India has several advantages over other nations to be a leading exporter of garments to the world. We are the 2nd largest producer of cotton in the world and also have high domestic consumption. But still we produce 20% surplus our domestic needs. Ready made garments form a major sub-category within textiles. In fact, ready-made garments already account for nearly one-eighth of Indias total exports. This research project, as said earlier, covers all the knowledge gained in the span of 3 years. All basic skills of Marketing, Strategy, Human Resource, Production and Operations and Economics are applied to reach a Business Plan. with challenges. Accepting the same we will evaluate the overall scenario here and thus prepare a basic model of A BUSINESS PLAN related to export of READY-MADE Garments.

opportunities. In a developing Economy, trends keep changing and Business needs to be dynamic and be able to respond quickly. Exports play a major role in countries economy and I wish to avail the opportunity of export in this chapter of Indian economy which is no different from that of any developing nation.

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Identifying Global Business Opportunities

India is one of the preferred destinations for all garments importers the world over. India is today recognized as one of the best sourcing destinations for garments, textiles, accessories and finish. It provides a perfect blend of fashion, design, quality, patterns, textures, colors and finish. Manufacturers here are ready to innovate, be flexible on quantities, have hands- on approach to quality control and keep the integrity on deadlines. Identifying this global opportunity to be in the league of Apparel export, I chose to be an Exporter of ready-made garments. India has several advantages over other nations to be a leading exporter of garments to the world. Some organizations attempt to expand their international operations by seeking foreign markets appropriate for existing products and services. But we are a new organization and hardly have any experience in textile or apparel. So our focus will be to assess foreign business environments in an attempt to meet needs in those markets. POTENTIAL MARKETS India is already a lobby for Garments export to U.S., Middle East, EU and Asia. Not restricting any nations, our major focus will be in the U.S.. India exports its major apparel to the U.S. which makes it easy to sell at start and less risky. Plus we know that if U.S. is importing from India, many more in U.S. be attracted to import from India. Other possible region is the European Union. ABSOLUTE AND COMPARATIVE ADVANTAGES India is today recognized as one of the best sourcing destinations for garments, textiles, accessories and finish: It provides a perfect blend of fashion, design, quality, patterns,

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textures, colors and finish. Manufacturers here are ready to innovate, be flexible on quantities, have hands- on approach to quality control and keep the integrity on deadlines. Labour is skilled and economical while process are highly competitive without taking away from the quality of the final product. Amazing technological developments, superior design capabilities and companies that provide integrated logistic solutions are other highly prized support systems that the industry thrives on. Combined with these manmade assets are the countrys natural assets which play a large role in boosting the garment industry- by providing raw materials of world class quality. Here are some of Indias natural leverages that the industry uses to its full advantage: India the largest producer of Jute, The second largest producer of cotton, silk and cellulosic fiber, the third largest producer of raw cotton and the fourth largest producer of synthetic fiber. Certainly there is more- above all a friendly Government policy towards exports and excellent cultural and political connections with the importing countries has nurtured this industry and made it bigger and better each year BUSINESS OPPORTUNITY ANALYSIS Talks about a FTA area with EU are on their way. Though the exact deal is yet to made public but The apparel exporters are expected to gain from the finalization of this FTa (expected in 2011 itself). A news reported by site www.thaindian.com quotes The free trade accord is expected to help Indias apparel exporters garner extra orders worth $3 billion from the EU. It will also help generate 2.5 million jobs in Indias textiles and garments export sectors.
Source : PM to visit Belgium, Germany to expand bilateral ties

(http://www.thaindian.com/newsportal/business/pm-to-visit-belgium-germany-to-expand-bilateralties_100470847.html#ixzz1HJrSepTL)

So If the FTA is on its way so we will target EU and need to be proactive and prepared for the same.

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Analyzing International Competitors

China remained the largest exporter in 2008 with over US$120 bn worth of exports, representing 33% of the global total. The EU maintained its position as the second largest exporter, followed by Hong Kong, Turkey, India, Bangladesh, Vietnam, Indonesia, Mexico and the USA. Double digit growth in exports was enjoyed by the industries in Bangladesh, the EU, India and Vietnam. Trade Organizations report for 2008 CE, the largest clothing exporters in 2008 were: Rank Country/Economy Exports (In US$ b)

1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14.

China EU Hong Kong Turkey Bangladesh India Vietnam Indonesia Mexico United States Thailand Pakistan Tunisia Cambodia

120.0 112.4 27.9 13.6 10.9 10.9 9.0 6.3 4.9 4.4 4.2 3.9 3.8 3.6
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15.

Malaysia

3.6

Analyzing Domestic Competitors

Following are some major players in the field of Indian Textile Industry. Arvind Mills is one of the major and fully vertically integrated composite mills players in India. It has large production in denim, shirting and knitted garments. It is now adding value by manufacturing denim apparel. Its sales are around US$300 million. Raymonds has the large, diversified integrated business model, which is spread across the value chain from yarn to retail. It is specialized in Diversified woolen textiles. It already supplies to some US retailers. Reliance Textiles is one of the major Textile Companies that is in the business of fully integrated manmade fiber. It has capacity of more than 6 million tones per year. It has joint venture partners like, DuPont, Stone & Webster, Sinco (Italy) Vardhman deals in spinning, weaving and processing segment of the industry. It is an approved supplier to global retailers like GaP, Target and Tommy Hilfiger. Its sales are little over US$ 120 million. Bombay Dyeing Ltd. (Composite and fully integrated) Welspun India (Manufactures terry towels) Oswal Knit India (Woollen Wear) Sharda Textile Mills (Man-made Fiber) Mafatlal Textiles (Fully integrated Composite Mill) LNJ Bhilwara Group (Diversified and vertically integrated denim producer with spinning and weaving capacity)
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Alok Textiles (Cotton and Man-made Fiber Textiles) Indian Rayon (Man-Made Fiber) BSL Ltd. (Textiles) Century Textiles (Composite mill, cotton & Man-made) Morarjee Mills (Fully integrated Composite Mill) Hanil Era Textiles (Yarn, Cotton & Man-made Fiber) Filaments India Ltd. (Manmade Textiles

There has been increased collaboration between Indian and foreign textile companies in the past few years. Such collaborations include Armani, Arvind Brands, Barbara, Benetton, De Witte Lietaer, Esprit, Gokaldas, Jockey, Levi Strauss, Marzotto, Rajasthan Spinning & Weaving Mills, Raymond, Vardhman Group, Vincenzo Zucchi, and Welspun. In order to gain global acceptance several Indian companies are investing overseas and also acquiring International brands. For example, in the Home Textile market, Welspun industry has purchased "Christys", a UK Towel Brand; GHCL has acquired "Dan River" and "Rosebys", Creative Garments has purchased "Portico" brand to facilitate entry into the US and EU markets; Alok Industries has purchased "Hamsard", a UK based retail chain. Local Brands - The introduction of domestic brands by the leading textile and apparel firms is another interesting feature of the Indian textile market. Prior to 2000, there were around 5-6 brands in India, prominent amongst them being Zodiac, Monte -Carlo, Raymond, Bombay Dyeing. Some of the brands built in recent years are "Pantaloon", "Killer" Jeans, "Easios", "Tibre", "Colour Plus", ''Trigger" etc. Many of these brands have now reached a stage where they can look towards gaining a regional, if not a global presence. The SME in various parts of the country as listed below. NORTHERN INDIA Jaipur Jodhpur (Rajasthan) Ludhiana (Punjab)
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Delhi Kanpur (U.P.)

WESTERN INDIA Solapur (Maharashtra)

SOUTHERN INDIA Bangalore (Karnataka) Coimbatore Erode Salem Tiruchirapalli

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Choosing International Strategy

There are basically 4 kinds of International Strategies INTERNATIONAL MULTIDOMESTIC GLOBAL TRANSNATIONAL For our firm, I choose the Multinational strategy of Global Business. We will adjust products and business practices to meet the needs of individual countries, regions and customers. Basically, we will be prepared with the fabric in gray. As per the requirement (query) of the customer, we will dye the cloth and prepare a sample within 24 hours of getting the exact design and approval. The much needed bio-wash followed by ironing and packing will be done at great speed and we will try to dispatch our order within 1 weeks of final confirmation. We will focus on customization and high responsiveness by lowering the cost and and try to cost competitive. Though economies of scale cannot be achieved in case of high customization, but bulk production will help us overcome the cost barriers. Dying, washing and ironing will be outsourced at the start. But if orders come back to back, we will finally set up and dying at washing unit of our own thereby reducing further costs.
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Printing, Embroidery and Ironing remain Outsourced.

Assessing the Environment

The US and EU belt come in the most developed nations of the World. The labour cost in these capital oriented economies is very high as compared to India, where labour cost is appx. 5% of the total selling price. At the same time, we are a developing nation which is continuously improving in technology and skilled labour. Also, we have realized the importance of management in recent years and have adopted major skills to serve a developed nation. India is a mix economy which has a perfect blend of skilled labour force and managerial / entrepreneurial skills. Also, the government has realized the role of export in and economy and promotes the same through its various schemes and subsidies. At the same time, the exchange rates are favourable and make us competitive in the global market. Textiles constitutes strong category for exports. The category includes cotton fabrics, cotton yarn, man-made textiles, silk, wool and ready-made garments. Textiles, including ready-made garments, are the countrys single largest export category, accounting for about 33 percent of the total exports. Of these, the cotton sector is the leader. The growth in textile exports over the past 10 years has ranged between 30 and 40 percent per annum and major part of the cotton exports is going to Bangladesh, the US, the UK and Germany. Woolen textiles and silk enjoy demand in a large number of countries. There are a number of welcome developments on the textiles front. First, in recent years, some value addition is taking place in textiles. Secondly many well-known textile firms have taken to export in a big way. Reliance Vimal, Arvind Mills, Mafatlals and Bhilwara are among the big players. A spate of 100 percent export-oriented units (EOUs) to

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manufacture items like denim and terry towels have also come into existence, adding a new dimension to Indias textile export. Ready made garments form a major sub-category within textiles. In fact, ready-made garments already account for nearly one-eighth of Indias total exports. And nearly 20 percent of the domestic production of ready-made garments is for exports. The EU is the largest market for Indian garments, accounting for over 40 percent of Indias total garment exports. The region has been recording steady growth over the years. The great potential in respect of garment export can be appreciated when one looks at recent performance of exporters in the small town of Tirupur in Tamil Nadu. Tirupur is exporting goods worth Rs 8,000 crore per annum. The exports consist of Knitwear like Tshirts, jogging suits, pyjamas, children wear, shorts and sportswear. The main markets are European countries; hosiery items are exported to the US, too. It is striking that 85 percent of the knitwear exports by India now comes from Tirupur. A category with good competitive advantage: Garments is a category where the country has a strong competitive advantage. In India, labor cost constitutes only 5 percent of the total cost of products of readymade garments, compared to around 50 percent in Europe. Moreover the new economic policy has de-reserved the garments sector, allowing large firms to set up manufacturing units, provided they export 50 percent of their production. Many large business houses are now entering this industry; a number of them are securing collaborations with well-known foreign firms and are setting up largescale manufacturing units; others trying to secure the franchise of well-known foreign labels and marketing collaborations. The cotton season, incidentally begins in August and ends in April. Despite the fact that India is the second largest cotton grower in the world and produces cotton in excess of domestic demand, last season saw increasing costs because of disproportionate cotton exports, not leaving enough for the domestic textile sector.

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In 2009-10, it was estimated that India produced 29 million bales. Domestic demand was pegged at 24.5 million while the rest was ideally slated for exports, according to industry estimates. The government, on the other hand, pegged initial exports at 5.5 million bales. The figure was revised to eight million by April, when the international market, driven by China and Bangladesh, saw a demand upsurge. Plus, as already discussed, a FTA is in pipeline with the EU which will open new gates to export of many sectors including EU. Earlier, high tariffs served as a barrier to the exporters resulting in loosing competitiveness to other exporters. But a FTA would be a good boost to nations export.

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Plan of Action

In EU and US most clothes are sold through retailer with chain stores. The leading retailer chains are the main targets. They, because of a number of stores across states, nation and country, place orders in bulk which helps us produce in bulk and thereby lowering costs. In Us and EU, large retail outlets place orders as per their design and fabric requirement. Usually they are sure of what colour, fabric make and design is required by them. So they usually have an info prepared in details which be used by us to meet their needs. Usaully while placing an order, an international standardization of colour code called as PANTONE CODE (http://www.d-zignsinc.com/view/pantone.html) is followed. The buyer mentions the fabric and colour code. As per his order size, we will place an order for a dyed cloth (in the start) of the required colour to the mill owner (locally chosen). Various markets of such cloth is Delhi (closest) and in South, Chennai, Erode or Tripur (Cheaper). Accordingly the mill will supply us a sample (usually of 1 or two meter) which is sent to the buyer for approval (for colour and fabric). In case of changes, we convey it to our mill producer who re-supplies the changed format. Once the cloth (fabric) is passed (OKyed) by the buyer, we confirm the mill owner who will produce the bulk order of total quantity required by us either in parts or in full.

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Then the design sample as per the buyer needs is prepared and resent for approval or made changes if required. Once the buyer approves, the cost is evaluated and confirmed to the buyer. On confirmation, the order is processed. Printing is a small scale industry operating in various pockets of the city like beconganj and fazal ganj. By now, we roughly know the time we will be ready with the finished goods. So airway bookings / shipments booking dates are conveyed to the C&F Agent who starts to make his preparations and also hands you a list of documents you need to be ready with. Once the finished product is ready, the clothes in parts or in full are sent to for Bio-wash. Most nations ask for a biowash. It makes the cloth very soft. After washing, the clothes are ironed, classified and packed. Packing is another crucial task. The way, method and numbering is usually done as per the requirements of the buyer and is usually conveyed well in advance. Accordingly we make arrangements. Then comes the documentation part. All documents related are prepared and goods are booked on appropriately chosen transport.

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Checking Startup Capital

A small unit for manufacturing roughly 10,000 T-shirts, 10,000 Shirts and 4000 jeans and 5000 trousers per month, the following machines are required. Also, the appx cost of these machines is as follows. Quantiy
1 10 2 2 2 2 2 2

Name of Machine
Cutting Machine Bartak machines Elastic Machine Lock Machine Flat Lock Machine Oval Lock Machine Power back-up Computer Total Plus Installation (0.5 %)

Cost per Machine

Total Cost (in Lacs)

1.2 to 1.5 lac appx 1 lac app 17000 appx 65000 appx 28000 appx 2.5 lac appx 40,000

15.00 2.00 0.35 1.30 0.55 5.00 0.80 25.00 1.25 1.00 2.00 29.25

Plus Electricity Initial Expenses Plus initial works customisation Total

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Plus a factory area layout of minimum 800 square metre. The rent in industrial area (e.g. dada nagar) with uninterrupted power supply will be appx. 50,000 per month. Electricity connection required for the machinery has to be a commercial meter with a capacity of 25 kW with expenses ranging between 25000 and 40000 per month. For a 16 hour shift, for 18 machines, we need minimum 30 skilled workers assuming that all machines will not operate simultaneously. The wages of these workers will range between 6000 to 9000 per month, making an average of appx 2.5 lac for wages. Another 20 thousnad will be needed for security agencies. Stationary expenses and other misc. (tea for workers) will be appx 14000 per month. Office staff would constitute of 3 managerial level workers and one for account section, which will cost another 20,000 to the company. List of first look expenses is summarized as follows. Raw Meterial Dying Printing Embroidery Washing Ironing Wages Securtity Refreshments Stationary Salary Rent 2,50,000 20,000 10,000 4,000 20,000 50,000
OUT SOURCED

15,00,000

5,00,000

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Electricity Total Expected production

40,000 23,94,000 per month. 29000 units.

As seen from above, a start-up capital of Rs. 26 lac is required for Capital goods and appx 23 lac per month as operating cost.. Also, not to mention, the onetime expenses on workshop preparation, meeting the norms of varois deptt (fire etc). So a minimum of Rs. 65 to 70 lac is required for smooth Operations of the firm.

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Evaluating Finance Options

Financial assistance is extended by the banks to the exporters at pre-shipment and postshipment stages. Financial assistance extended to the exporter prior to shipment of goods from India falls within the scope of pre-shipment finance while that extended after shipment of the goods falls under post-shipment finance. While the pre-shipment finance is provided for working capital for the purchase of raw material, processing, packaging, transportation, warehousing etc. of the goods meant for export, post-shipment finance is generally provided in order to bridge the gap between shipment of goods and the realisation of proceeds. For raising funds in India, investors can raise a substantial portion of the project cost in India through debt and equity instruments. Applications for long-term loans can be made to State Financial Corporations when the project is small - generally less than Rs.50 million - or to national-level financial institutions, such as IDBI and IFCI, when the project is large. Institutions expect concrete project and market reports, with reasonably firm costs and implementation plans. Other long term financing options include leasing, hire purchase, deferred payment guarantee etc. Capital markets are increasingly the preferred route for raising finances in India, through equity shares, debentures and hybrids. Investors can freely access the capital market and in most cases freely price the issue. Investors with both small as well as large fund requirements can mobilise funds from the market. Private placement with institutional investors is also possible. Indian companies also have the option of raising funds from international capital markets. Short-term finances for
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working capital requirements are available from commercial banks and through instruments such as fixed deposits, inter-corporate deposits and commercial paper.

Ours being a small Export Unit, we would apply for our loan from the EXIM Bank.

ABOUT EXIM BANK

Exim Bank is fully owned by the Government of India and is managed by the Board of Directors with repatriation from Government, financial institutions, banks and business community. The Export- Import Bank of India (Exim Bank) provides financial assistance to promote Indian exports through direct financial assistance, overseas investment finance, term finance for export production and export development, pre-shipping credit, buyer's credit, lines of credit, relending facility, export bills rediscounting, refinance to commercial banks. The Exim Bank also extends non-founded facility to Indian exporters in the form of guarantees. The diversified lending program of the Exim Bank now covers various stages of exports, i.e., from the development of export makers to expansion of production capacity for exports, production capacity for exports, production for exports and post- shipment financing. The Exim Bank's focus is on export of manufactured goods, project exports, exports, of technology services and exports of computers software.

Exim Bank seeks to create and enhance export capabilities and international competitiveness of Indian companies. Under the lending program for Export Marketing Finance, the Banks addresses the term finance requirement for a structured and strategic export marketing and development effort of companies.

FINANCING PROGRAMMES

Deferred payment Exports : Term finance is provided to Indian exporters of eligible goods and services which enables them to offer deferred credit to overseas buyers. Deferred credit can also cover Indian consultancy, technology and other services. Commercial banks participate in this program directly or under risk syndication arrangements.
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Pre-shipment Credit : Finance is available from Exim Bank for companies executing export contracts involving cycle time exceeding six months. The facility also enables provision of rupee mobilisation expenses for construction/turnky project exporters.

Term loans for export prodcution : Exim Bank provides term loans/deferred payment guarantees to 100% export oriented units, units in free trade zones and computer software exporters. In commaboration with International Finance Corporation, Washington, Exim Bank provides loans to enable small and medium enterprises upgrade export production capability. Facilities for deeded exports; Deemed exports are eligible for funded and non- funded facilities from Exim Bank.

Overseas Investment Finance : Indian companies establishing joint ventures overseas are provided finance towards their equity contribution in the joint venture.

Finance for export marketing : This program, which is a component of a World Bank loan, helps exporters implement their export market development plans.

So, a report like this, with a convincing plan of action and proper evaluation of project, will be submitted to the EXIM bank who after undergoing its set of inquiries will sanction a loan.

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Factory Layout

The sample of expected factory layout will be as follows

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Colour Code
Orange Red

Name of Machine
Cutting Machine Bartak machines

Usage
Cutting of cloth Stitching (commercialized home m/c)

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Green Brown Purple Blue

Lock Machine Oval Lock Machine Elastic Machine Flat Lock Machine

Locking straight Oval Locking (T-Shirt) Where elastic is used Power Locking (for pockets/belt loops)

Every cloth passes through a number of machines, but no fixed sequence is followed. Depending on what garment we stitch, the sequence of process will be determined. Except for the fact that the operations start from the cutting machine and next goes to Bartak m/c, every product follows a different sequence. The warehouse of semi finished products is divided into 2 chambers, which are maintained by the respective managers. After accounting by the storekeeper, the goods are dispatched for outsourced processes and on completion are stored in the main warehouse named as Warehouse (FM).
6 2

The Raw material store is close to the Workshop from where the processes start. Thus material flows in a singular direction without any complications.
5 7

Structure of the Organisation

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The factory will run 6 days a week with 2 shifts of 8 hours each. Details as below 0745 Hrs 0800 Hrs 1000 Hrs 1015 Hrs 1215 hrs 1245 Hrs 1445 Hrs 1500 Hrs 1700 Hrs Reporting for 1st shift begins 1st Shift Begins Tea break Work resumes
2 Hours of Work 2 Hours of Work 15 Minutes break

Lunch Break Work resumes Tea Break Work Resumes 1 Shift ends, Reporting for 2nd Shift begins
st

30 Minutes break 2 Hours of Work 15 Minutes break 2 Hours of Work

1715 Hrs 1915 Hrs 1930 Hrs 2130 Hrs 1000 Hrs 0000 Hrs 0015 Hrs 0215 Hrs

2nd Shift Begins Tea Break Work resumes Dinner Break Work resumes Tea Break Work resumes 2nd Shift over

2 Hours of Work 15 Minutes break 2 Hours of Work 30 Minutes break 2 Hours of Work 15 Minutes break 2 Hours of Work

The Structure of the Organisation will be as below.

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WORKS MANAGER - 02 The works managers will be reporting to the MD. They will look into Production with a team of 15 skilled workers each. They will ensure smooth working on the machines. As per the order instructions, they will collect RM from the Store manager and get it processed in their 8 hour shift. After the 8th hour (5 PM), the manager, before leaving, will ensure that WIP (if any) and semi finished (processed) clothes are handed over to the stores manager who will account the RM taken and Goods produced and report it to the MD at the end of 1st shift (in presence of the works manager). A STORE MANAGER A store manager will manage Incoming of Raw material, allotment of RM as per days schedule to respective managers, and collection of work done at the end of each shift. In between, he will also dispatch semi finished goods for processing (embroidery, printing), washing, ironing and collect the finished goods and hand the same to the packing and labeling deptt. Also, he will collect the packed and maintain inventory of finished goods. DESIGN INCHARGE
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A Design Incharge (DI) will be a part of design negotiation and understanding with the importer. He will not only understand design, but also ensure with the managers that the production is as per the order. Also, while sending semi finished products and receiving finished goods, he will ensure what cloth is going where and will convey processes to be done to parties to whom it has been outsourced. Also he will be the Quality Supervisor for both Semi Finished and Finished goods. He will work in direct accordance with the MD.

Working of the Organisation

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In a jist as per the time, 0700 Hrs Store keeper arrives.

Manager 1 collects RM from Store Manager (as decided by st MD at the end if 1 visit previous day) Also interact with DI. 0745 Hrs 0800 Hrs 1015 Hrs 1200 Hrs Labour reports to Manager 1 1st Shift Begins. Store Keeper categories / labels / pack for dispatch of Semi finished for processing. (till 1000 Hrs)

Semi-finished stock of previous day is dispatched for processing by Store Keeper to respective units. DI supervises. The same van arrives at 1200 Hours with finished goods. The store keeper accounts the same and sends the same to the packing / labeling deptt. DI supervises. Storekeeper will account Manager 2s previous days work. DI performs a Quality Check by withdrawing few samples. Manager 2 and Storekeeper reports to MD with previous days work and decide RM for Manager 2 Manager 2 collects RM from Store Manager (as decided by MD) 1st Shift ends, Labour reports to Manager 2 for 2nd Shift. 2nd Shift Begins, Manager 1 accounts days work to Store Keeper. DI performs quality Check by withdrawing few samples. Manager 1 and Storekeeper reports to MD with days work and decide RM for Manager 1 for next day. Store keeper collects Packed / Labeled finished goods. DI performs quality Check. Storekeeper keeps it safely in the inventory. Store keeper Leaves. 2nd Shift over, Manager 2 will use his warehouse and lock finished goods in his warehouse and possess the key. Store keeper accounts for days work of Manager 2 at 1530 Hrs next day.

1530 Hrs 1600 Hrs 1615 Hrs 1700 Hrs 1715 Hrs 1745 Hrs 1800 Hrs

0215 Hrs

International Business Plan : Manufacture and Export of Readymade Apparels

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MANAGER 1s WORKS
Comes at 7 am Collects RM from Store keeper Reporting of labour begins at 7.45 am Prod starts at 8 am Shit Ends at 5 pm Manager reports work done to Storekeeper, DI performs quality check at 5.15 pm Meet MD with days report, and take a plan for next morning, also meet DI at 5.45pm Leaves at 6 pm

MANAGER 2s WORKS
Comes at 3.30 am Manager reports previous days work done to Storekeeper, gets accounted and checked by DI Meet MD with days report, and take a plan for the day, also meet DI at 4 pm Collects RM from Store keeper at 4.15 pm Reporting of labour begins at 5 pm Prod starts at 5.15 pm Shit Ends at 2.15 am, Locks his warehouse and gets it accounted next day at 3.30 pm. Leaves at 2.30 pm

STORE KEEPERs WORK

Comes at 7 am

International Business Plan : Manufacture and Export of Readymade Apparels

By Gautam Macker, R. No. 195, Part Time 2011.

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Allots RM to Manager 1 Assorts all Semi finished goods for processing till 10 am In supervision of DI, Sends to units at 10.15 am Collects / Assorts / checks finished goods from Units at 12 noon Forwards to labelling and packing by 1pm Checks previous days work of Manager 2, accounts, at 3.30 pm Meet MD with Manager2s report and notes tomorrow allotment for M2 at 4pm. Allots RM to M2 at 4.15pm Checks days work of Manager1, accounts, at 5.15pm Report to MD with M1 and his work report at 5.45 Collect packed , labelled finished goods and keeps in Inventory at 6.00pm Leaves at 6.15pm

DESIGN INCHANRGEs WORKS

Comes at 10 am Checks dispatch of semi finished goods to repspective units Prepares chart, conveys to unit, if needed visits to units and explain in detail. Sends to units at 10.15 am Finished goods, washed, ironed arrive. Checks at 12 noon Co-ordinates with packing and labelling deptt. At 12.30 pm Interacts with MD for what is the order (all minor design details) and packing req. at 3pm Check Manager2s work. Ensure quality and Quantity. At 3.30pm Explain work and design to Manager2 for next day at 4pm Check Manager1s work. Ensure quality and Quantity. At 5.15pm Explain work and design to Manager1 for next day at 5.45pm Checks finished goods (packed and labelled) at 6pm

MANAGING DIRECTORs WORKS

Interacts on mail/phone with clients.

International Business Plan : Manufacture and Export of Readymade Apparels

By Gautam Macker, R. No. 195, Part Time 2011.

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See overall progress pace. Reduces / increases Shifts. Checks for date of order completion. Etc. etc. Interacts with DI for what is the order (all minor design details) and packing req at 3pm Meets Manager 2 and Storekeeper with previous days work Decide RM for Manager2 at 4 pm Meets Manager 1 and Storekeeper with days work Decide RM for Manager1 (for next morning) at 5.45 pm

Cost Sheet (Operating Expenses)

International Business Plan : Manufacture and Export of Readymade Apparels
By Gautam Macker, R. No. 195, Part Time 2011.

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DATE

PARTICULARS COST OF DIRECT MATERIAL CONSUMEDOpening stock Add: purchases Carriage inwards Octoroi, Import duty etc. Less: material cost damaged material sold return outwards closing stock Direct wages Direct chargeable expenses PRIME COST FACTORY OVERHEAD: Indirect material Oil, waste, grease Diesel for Generator Consumable stores Work stationery Indirect wages Wages of - 30 Skilled worker + 02 Unskilled - 02 Works Manager + 01 D.I./Q.M. - 01 Store keepers + 02 Helpers Purchase department expenses Service department expenses Security/time keeping expenses Workers training/ recruitment expenses Welfare expenses(ESI,PPF) Canteen/ recreation expenses Factory expenses eg- lighting - rent, insurance - cleaning Repairs/ maintenance of- factory building - plant, machinery - Depreciation on factory building Depreciation on plant & mach. Mobile bills of various Factory Staff

TOTAL COST

COST PER UNIT

International Business Plan : Manufacture and Export of Readymade Apparels

By Gautam Macker, R. No. 195, Part Time 2011.

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Add : Opening WIP Less : Closing WIP WORKS/ FACTORY COST OFFICE & ADMINISTRATIVE OVERHEADS: salary - office staff (2) - manager (1) Office rent, taxes Printing & stationary Lighting Sundry expenses Depreciation/ repairs- office equipment - furniture and building Directors fees Telephone telegraph and postage Internet Charges Mobile bills of various Office Staff Audit fees Legal expenses Bank expenses Subscription to periodicals PRODUCTION COST/ COST OF PRODUCTION ADD : Opening stock of finished goods LESS : Closing stock of finished goods PRODUCTION COST OF GOODS SOLD SELLING AND \DISTRIBUTION OVERHEADS: C & F Agent Charges Delivery van driver Commission Documentation Charges Advertising Catalogues / folders / website Samples/ free gifts Demonstration expenses Trade fair / Exhibition expenses Warehouse expenses Packaging and containers Finished stock insurance Carriage outwards COST OF GOODS SOLD / TOTAL COST PROFIT / LOSS SALES

International Business Plan : Manufacture and Export of Readymade Apparels

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Reference

Syllabus Text books Images from Google Earth google.com thaindian.com eximbank.com thehindu.com moneycontrol.com finance.indiamart.com and Various news sites

International Business Plan : Manufacture and Export of Readymade Apparels

By Gautam Macker, R. No. 195, Part Time 2011.