BUSINESS PLAN – CUSTOMIZED ACCESSORIES FOR MEN

SUBMITTED BY:
SUSHANT LULLA
PALAK KAUR ANAND
MASTERS IN FASHION MANAGEMENT
(2015-2017)

SUBMITTED TO:
DEPARTMENT OF FASHION MANAGEMENT STUDIES
NATIONAL INSTITUTE OF FASHION TECHNOLOGY- KOLKATA (MINSITRY OF
TEXTILES, GOVT. OF INDIA)
NIFT CAMPUS
BLOCK-LA, PLOT NO. 3B
SECTOR-III, SALTLAKE CITY,
KOLKATA-700098

UNDER GUIDANCE OF
DR. SOUGATA BANERJEE
ASSISTANT PROFESSOR
DEPARTMENT OF FASHION MANAGEMENT STUDIES

AUGUST 2016

1
Declaration

This project is a complete documentation of two business ideas as conceptualized by me.

The ideas are based on secondary research as well as primary visits to various
stakeholders. Any resemblance to similar documentation will just be coincidental. All
references, sources of secondary data have been clearly mentioned in the bibliography
page at the end of this report.

2
The Idea:

A production unit for our new brand which would produce unique accessories for men.
The accessories would include bags, wallets, backpacks, ties, belts, bows etc. These items
will be made of artificial leather, hemp, coir and jute and would be sold on shopping sites
like jabong, flipkart, snapdeal, amazon as well as on exhibitions and trade fairs.

Market Analysis: Secondary research

Men’s fashion has taken the spotlight. One area of the men’s fashion market with
significant growth is accessories. According to research from The NPD Group, sales of
men’s accessories overall increased eight percent from last year. Of that growth, bags
saw a 24% increase in sales, accounting for 40% of the men’s growth.

“Men want to carry something equally as stylish and effective”

It is being said that briefcases will always remain the dominant accessory, due to their
functional value. The growth in men’s accessories picked up steam in the last five years.
We have started to see more and more companies emerge that were just making men’s
products or traditionally women’s focused ones that were adding in accessories for men.
From pocket squares to bracelets, backpacks to colorful socks, accessories are the hottest
category in men’s wear.

International Market

In recent years, the domestic market for women’s accessories has become increasingly
saturated and highly competitive In response, several accessory [brands] have begun to
design and sell a larger variety of men’s accessories that extend beyond wallets, belts and
laptop bags.

The growth isn’t being seen only in the U.S. Sales are booming from Japan to Europe. In
Italy, men’s accessories, including textile accessories, belts, small leather good was worth
2.6 billion euros, or $3.2 billion at average exchange, in 2016. Although shoe sales were
under pressure, sales of textile accessories and leather goods rose 4 and 16 percent,
respectively, according to a Fashion Consumer Panel survey by Sita Ricerca. According
to Euro-monitor, the men’s luxury jewelry category saw 6 percent growth worldwide in
2016. As a result of this growth, retailers and brands are devoting more resources than
ever to the men’s accessories.

On the heels of a big increase for the last few years, spring 2015 is continuing to show
high-double-digit increases in men’s accessories especially in leather goods, bags and
luggage as well as sunglasses, jewelry, headwear and belts. Top brands include Valextra
small leather goods, Balenciaga bags,

3
Many see a simple explanation for the growth in bags and similar items: Men are just
carrying more stuff. “Men are definitely buying more trend-inspired accessories as they
are quickly starting to understand the concept of function versus fashion,” said Durand
Guion, vice president and men’s fashion director for Macy’s. “He is simply carrying
multiple and larger personal electronics. He feels the need to have these with him at all
times and they can no longer fit comfortably into a front or back pocket, so the need for
bags and portfolios is amplified. From the fashion aspect, men are learning that the right
finishing touch is key to completing an outfit. Even if he cannot buy a new suit, a pocket
square or a lapel pin provides an instant update to his look.”

Indian Scenario

The Indian fashion accessories market was worth US$ 3 billion, in 2013, and is expected
to grow at a CAGR of 12 percent to touch US$ 6 billion by 2019. The market is largely
dominated by unorganised players. Further, it is estimated that organised retail contributes
only 16 percent to the bags, belts and wallets markets and 45 percent to the watches
market.

The increasing acceptance of fashion accessories among Indian consumers lend optimism
to the belief that the currently nascent fashion accessories market can be expected to go
through a dynamic phase in the years to come and witness a series of innovations, apart
from the entrance of new players.

Promotion Of Accessories In Online Retailing: Online fashion retailers operating in

India have managed to attract accessories customers to the e-tailing model. Almost all
leading online fashion retailers offer accessories longside their apparel products. Fashion
consumers have also started purchasing accessories from online portals due to the
availability of a wider portfolio of accessories, more options in terms of brands and the
relative ease of purchase.

Competition

There are many brands which sell a few accessories for men but are mainly women’s
brands. Some of these are: Baggit, Addons, Alessia74, Ayesha, Bata, Be for Bag,
Being Human, Bleu, Chumbak etc. also brands like Lime, Via Mazzini, ShalinIndia,
 Rootz, Chola , Generic,  EVANA,  ITOS365, Alpha Man, SORELLA'Z are selling
men’s accessories through online portals like amazon.
Target Market

4
Geographic Pan India

Demographics Gender: Male

Age: 14-60 years

Income: 8 Lakhs – 11 Lakhs and above

Psychographics Middle Class and Upper Middle Class

Innovators and Thinkers

Behavioral Loves to shop online

Shops atleast 3 times in a month

Impulsive Buyers

Soft Core Loyals

Market Potential of this Idea

1. Online Retail Sector Doing Very Well. It Has Witnessed Steady Growth Of 50-60
% Over The Years. E-retailing Accounts For 10 % Of E-commerce Activities In
India.

2. Market size of artificial leather is estimated to reach Rs. 9000 Crore in 2017,
increasing at a CAGR of 15%

3. Unorganized market of hemp, jute & coir products in india.

4. Casualisation Of Office Attire: Casual attire has become more acceptable in an

increasing number of social settings in the US, and this trend is perhaps most
obviousin office environments. Men have greater freedom to decide on what to
wear to the
office and this trend continues to impact retail sales of men’s personal accessories.
Men are pursuing a more casual, but formal look; Euromonitor International’s
survey results reveal that 57% of men think their personal styles fall on the casual
men prefer clothes and accessories that are suitable for multiple occasions
from work to business travel and other private occasions.

5. Men’s accessories wider availability: Compared to the saturated and

competitive nature of women’s accessories, men’s accessories is still small and
has considerable room for growth. Manufacturers are expanding their product

5
 lines in men’s clothing and accessories to capture the growing menswear market.
For example, Michael Kors opened its flagship store in SoHo, New York in 2015
and the location became the brand’s first to carry a men’s collection. Specialist
retailers and department stores are expanding and upgrading their selection of
menswear and men’s accessories to attract more male consumers.

Online retailers are also active in offering clothing and accessories for male
consumers. Online retailing is the preferred channel for male consumers, as this
best suits men’s purchasing habits. It offers men a way to spend less time buying
stylish accessories and allows them to shop at their convenience. Compared with
women, men tend to spend less time shopping. When purchasing personal
accessories, men often value practicality and functionality as well as style. The
online format allows them to make purchasing decisions by finding specifications
of the products on a website that helps them evaluate its suitability for their needs.

Online retailing has an easy and straightforward checkout procedure that helps
male consumers minimise the time spent and the hassle of shopping.
Manufacturers and retailers will continue to invest in building their presence in
internet retailing and improving websites to enable consumers to make their
purchasing decisions with confidence.

 Men’s grooming sales more than doubled over the past five years, growing from
INR30 billion in 2010 to INR75 billion by 2015. Growth remains strong, with
current retail value sales rising by a strong 18% in 2015 and demand being fuelled
by increasing image and appearance awareness among urban male consumers.

Customized Accessories for Men will have the following product Mix:

Bags Accessories

Briefcase Bags Bracelets

Wallets Belts

Backpacks Ties and Bows

Laptop Bags Pocket Squares

6
 Brooches

Suspenders

Rating of factors:

Average Ratings
by industry
Sr. Our Composite
Factors experts Reasons
No. Rating score
(Weighted
average rating)

1 Financial 5 3 15 Needs a production unit

resources & an e-commerce
platform

2 Technology 3.5 4 14 4 types of machines are

required as discussed in
the heading

3 Competitors 3.5 5 17.5 Less number of

organized players in
men’s accessories

4 Human 5 3 15 Skilled workers are

resources required for making the
products

5 Suppliers 4.5 4.5 20 Many suppliers for the

jute, hemp, leather &
coir are situated in
Kolkata

6 Economical 3.5 4 14 Initial costs of

equipments and regular
costs of paints and
employees.

7 Political 2 4 8 As government is
promoting these types
of organic materials to
used for manufacturing

7
 of goods

8 Legal 3.5 3 10.5 Several types of

licenses are needed as
discussed above.

9. Social 3 4 12 More men wanting to

show their Social
Status.

10. Cultural 1.5 4 6

11. Ecological 1.5 5 7.5 No harm will be cause

to the environment

12. Customers 5 4.5 22.5 Market of E-commerce

is increasing

13 Distributors 4.5 4 18 The products will be

distributed through
different online market
places

14 Media 3 4.5 13.5 Easy online

prommotions

Total 193.5

Idea 2: Wall & furniture painting (Interior and Exterior)

8
The second idea is to have an online website providing the service of not only cleaning
and clearing the walls of house and furniture but also painting them by our special artists.
Proper paintings would be done on the walls, furniture etc. All types of traditional,
contemporary designs from the options available as well as designs provided by
customers would be available. Not only this but artistic painting of buildings and houses
and adjoining walls would also be available.

Market Analysis: Secondary research

This industry includes establishments primarily engaged in interior or exterior painting, as

well as interior wall covering. The painting and wall-covering work performed includes
new work, additions, alterations, maintenance and repairs. Establishments in this industry
perform activities ranging from bridge and ship painting to paint and wall-covering
removal.

International Scenario

Over the past decade a number of new trends have been observed in this industry. The
tremendous growth of the economy has fueled the painting contractors industry as well,
as people have progressively spent more and saved less. The high technology boom has
created great opportunities in the Pacific Northwest which the industry has also benefited
from. However, the growth of firms such as Home Depot, which encourages do-it-
yourself painting and construction, has lead to a serious decline in sales for the residential
segment. The growth of this trend poses a significant threat to the industry. Barnum
Painters plans to increasingly focus on the commercial segment as the company grows in
order to promote greater revenue and income.

In the painting contracting industry, there are a limited number of large firms that
compete for the largest projects, and a vast number of smaller companies that fight for all
the rest. Within the largest company section, market consolidation is always a threat.

Indian Scenario

The paint industry can easily grow at 12-13% annually over the next few years from its
current size of Rs 350 bn. The per capita paint consumption in India which is a little over 4
kgs is still very low as compared to the developed western nations. Therefore, as the
country develops and modernizes, the per capita paint consumption is bound to increase.

The unorganised sector counts around 35% of the paint market, with the organised sector
accounting for the balance. In the unorganised segment, there are about 2,000 units having
small and medium sized paint manufacturing plants. Top organised players include Asian
Paints, Kansai Nerolac, Berger Paints and ICI.

9
Major segments in decorative include exterior wall paints, interior wall paints, wood
finishes and enamel and ancillary products such as primers, putties etc. Decorative paints
account for over 70% of the overall paint market in India. Asian Paints is the market
leader in this segment. Demand for decorative paints arises from household painting,
architectural and other display purposes. Demand in the festive season (September-
December) is significant, as compared to other periods. This segment is price sensitive
and is a higher margin business as compared to industrial segment.
The paints sector is raw material intensive, with over 300 raw materials (50% petro-based
derivatives) involved in the manufacturing process. Since most of the raw materials are
petroleum based, the industry benefits from softening crude prices.

Competition

This industry is highly seasonal. The busiest times are during the summer months where it
is easy for a company to become so engaged that it must turn down contracts. During the
winter months businesses must focus on marketing to get any contracts at all. The
unorganised sector counts around 35% of the paint market, with the organised sector
accounting for the balance. In the unorganised segment, there are about 2,000 units having
small and medium sized paint manufacturing plants. Top organised players include Asian
Paints, Kansai Nerolac, Berger Paints and ICI.

Major segments in decorative include exterior wall paints, interior wall paints, wood
finishes and enamel and ancillary products such as primers, putties etc.

But still in India it is one of a kind portal where artistic paintings of both houses and
buildings(interior and exterior), furniture, ceilings etc. is being provided.

Our Services
 General residential painting
 General non residential painting
 wall covering
 Paint and wallpaper removal
 Other construction painting
 Non building painting
 Bridge painting
 Painting buildings or other structures
 Spray painting buildings or other structures
 House painting
 Rustproofing
 Paint and wallpaper removal
 Whitewashing
 Furniture Painting

10
Target Market Segmentation

Geographic West Bengal (All Cities)

Gender: Men, Women, Kids

Age: All age groups

Demographics
Education Level: Educated families

Income: Above Rs.5 lakhs per annum

Upper Middle Class and Upper Class

Psychographics
Innovators and Thinkers

Loves to shop online

Shops atleast 3 times in a month

Behavioral Impulsive Buyers

Soft Core Loyals

Creative

Our focus is on two markets within the industry, the residential segment (including
apartment buildings) and the commercial segment which includes buildings used for
professional purposes. The company can handle any size building that needs its services.
It is the goal of the company to eventually have approximately one-third of all business
coming from the commercial segment, since this generates the greatest cash flow.
Furthermore, this segment has the lowest percentage of variable costs. The residential
segment is considered to be the company's cash cow. Even during the slow winter
months, the company can expect to have a small number of residential contracts.

11
Factor rating

Sr. Factors Average Our rating Composite Reasons/Discussion

No. Rating rating
by
industry-
experts

1 Financial 4 3 12 Money needed for a Head

resources Office with a designing unit
and space for all the
equipments and team for
online management

2 Technology 4 4 16 Less involvement of

technical equipments

3 Competitors 4 4 16 Asian paints, Nerolac,

Berger will be giving the
competition. Only for
interior designs. Not
much competition when
it comes to exterior
paintings

4 Human 4 3 12 Highly-skilled designers

resources will be needed for the
mural arts

5 Suppliers 4.5 4 18 Easy availability of the

paints in the market

6 Economical 4.66 3 14 People are more

concerned with the
matter of interiors of
homes & properties

7 Political 2 4 8 Not much restrictions by

law except for the
soberness of exterior
designs

8 Legal 4.5 4 18 Less number of licenses

are required as compared
to first idea.

12
9. Social 4.1 3 12.3 Society is open to More
creativity and designs.
Beautiful exterior of
buildings and constructions
will make the city look
beautiful

10. Cultural 4 3 12 How it will be accepted

culturally is a challenge

11. Ecological 4.5 4 18 No harm will be caused to

the environment as this
concept is based on service
industry

12. Customers 4.66 2 9 Choice of the customer

regarding the art will be the
major factor.

13 Distributors 2.66 4 10.6 No distribution of the

products is required

14 Media 3.33 3 10 Online and offline extensive

promotions required.

Total 185.9

Conclusion

After the factor Analysis we see the weightage of all the factors for the first business plan
is higher than that of the second business plan. Online Portal for men’s accessories having
a weightage of 193.5 is hence chosen as the business idea which will be taken forward
and a proper business plan of the same would be made.

Description of Business

Type of Business: The business is a Manufacturing Unit.

13
Type of Products:

 Men’s Accessories which would include bags: Briefcase bags, wallets, backpacks,
laptop bags
 Accessories like bracelets, belts, ties, bows,pocket squares, broaches and
suspenders.
 All these accessories would be made using artificial leather, jute, hemp and coir,
silk and matty.

Type of Business Opportunity:

 New business opportunity

 Very few brands seel only men products
 We are selling accessories made of only jute, hemp, coir, matty and silk which
gives us an upper edge.
 We could open a website and a store within a span of 2-3 years.

Work Experience

QUALIFICATIONS – Palak Kaur Anand

YEAR
EXAMINATION/DE BOARD/COLL INSTITUTE/UNIVER OF MAR
GREE EGE SITY PASSIN KS
G

CGPA
Masters of Fashion
NIFT 2017 9.19
Management
8.97

CGPA:
B.Sc.(Hons)in Textile 9.63
J.D Birla
Science, Clothing and Jadavpur University 2015 %
Institute
Fashion Studies Marks:
78

The Frank Anthony

CLASS XII ISC 2011 90.2%
Public School

The Frank Anthony

CLASS X ICSE 2009 95.4%
Public School

14
  Internship – J.J Exporters – Merchandiser
 Internship - Manyavar – Procurement and Marketing
 J.D Birla Institute- Best Academic Performer- All Three Years.
 Certificate of Accomplishment in Personality Development- ILEAD Super
Soft Finishing School- 2011
 Research Paper for my Seminar on Fragrance Textiles – 2014
 Marketing Research paper on consumer preference for fast food among the
youths with respect to KFC, Mc Donald’s, Domino’s, Pizza Hut and
Subway.
 Paper on Product development of fragrance socks.
 Projects On Store Operations, Marketing Strategies to Understand
Consumer Behaviour and attract them.

Growth Possibilities of business: This business has a huge growth potential

 Own website by 2018

 Open a store in Kolkata, Delhi and Mumbai by 2019.
 Exhibitions and Fares will be continued along with selling in Third Party websites.
Reasons the business could be a success:

 It is one of the few brands selling only mens accessories

 The material used to make the accessories are all natural and not used by other
brands in their manufacture
 Exclusive designs by our team of special designers will give unique products to
our clients
 Online Retail Sector Doing Very Well. It Has Witnessed Steady Growth Of 50-60
% Over The Years. E-retailing Accounts For 10 % Of E-commerce Activities In
India. We will be selling the products on sites like amazon, snapdeal, jabong,
flipkart.

 Market size of artificial leather is estimated to reach Rs. 9000 Crore in 2017,
increasing at a CAGR of 15%

 Unorganized market of hemp, jute & coir products in India.

 Casualisation Of Office Attire: Casual attire has become more acceptable in an
increasing number of social settings in India and this trend is perhaps most
obvious in office environments. Men have greater freedom to decide on
what to wear to the office and this trend continues to impact retail sales
of men’s personal accessories. Men are pursuing a more casual, but formal
look; Euromonitor International’s survey results reveal that 57% of men
think their personal styles fall on the casual side, with only 10% describing
their style as completely formal. Many men now enjoy choosing their
clothing and accessories on their own, based on their personal preferences.
Previously, men’s spouses or partners were involved in, or totally controlled,

15
 clothing purchases. As the reason for buying new clothes was mainly to
replace an old item, men left clothing purchases to someone else. However,
this has been gradually changing as an increasing number of male
consumers purchase new clothes to keep up with trends. As more offices
allow employees to wear casual business attire every day, working men
prefer clothes and accessories that are suitable for multiple occasions from
work to business travel and other private occasions.

 Men’s accessories wider availability: Compared to the saturated and competitive

nature of women’s accessories, men’s accessories is still small and has
considerable room for growth. Manufacturers are expanding their product lines
in men’s clothing and accessories to capture the growing menswear market. For
example, Michael Kors opened its flagship store in SoHo, New York in 2015 and
the location became the brand’s first to carry a men’s collection. Specialist
retailers and department stores are expanding and upgrading their selection of
menswear and men’s accessories to attract more male consumers.

 Online retailing has an easy and straightforward checkout procedure that helps
male consumers minimise the time spent and the hassle of shopping.
Manufacturers and retailers will continue to invest in building their presence in
internet retailing and improving websites to enable consumers to make their
purchasing decisions with confidence. Compared with women, men tend to spend
less time shopping. When purchasing personal accessories, men often value
practicality and functionality as well as style.

 Men’s grooming sales more than doubled over the past five years, growing from
INR30 billion in 2010 to INR75 billion by 2015. Growth remains strong, with
current retail value sales rising by a strong 18% in 2015 and demand being fuelled
by increasing image and appearance awareness among urban male consumers.

Marketing:

16
A Marketing survey is conducted to find out the preferences of the consumers
towards our accessories.

QUESTIONNAIRE
Dear Respondent,
We, the students of Fashion Management Studies of NATIONAL INSTITUTE OF
FASHION TECHNOLOGY (NIFT), KOLKATA, are doing a research on “Men’s
Preference Towards Accessories”. We would highly appreciate it if you could spend 5
minutes to answer the following questions. No information provided shall be disclosed
anywhere.

Name: ______________________________________
1. Address (City) ___________________________________

2. Age (in years):

18-25 years 25-30 years 25-35 years 35-45 years Above
45 year

4. Educational qualifications:
Matriculation Higher Secondary Undergraduate Post
Graduate
Professionally Qualified

5. Occupation:
Student Service Holder Business Man Self
Employed
Others (Please Specify) ___________________

6. Income group (in case of student please mention the income of family):
Below 3 lakhs 3 lakhs-5 lakhs 5 lakhs-8 lakh 8
lakhs – 11 lakhs
11 lakhs and above

7. How much do you spend per purchase?

Below 300 300-500 500-1000 1000-
2000
2000-3000 Above 3000

8. Where do you prefer to shop mainly from?

Online shopping
Shopping in stores/malls

9. Are you brand conscious while purchasing accessories? If yes, which brands do you
refer? If no, where do you purchase your accessories from?
Yes,
______________________________________________________________________
No,
______________________________________________________________________

17
 10. What kind of accessories do you prefer most? (Rank the following from 1-10
according to your preference for them with 1 being the most preferred and 10 being the
least preferred)
Bag
Wallets
Bows
Ties
Belts
Mobile Cover
Sunglass Cover
Suspenders
Key Holders
Earphone Clips
Bracelets
Bandanas
Umbrellas

11. Which materials do you prefer your accessories to be made of? (Rank the following
from 1-6 according to your preference for them with 1 being the most preferred and 6
being the least preferred)

Artificial Leather

Jute

Hemp

Coir

Matty

Silk

12. Which kind of look do you mainly prefer in your accessories? (Rank the following
from 1-2 according to your preference for them with 1 being the most preferred and 2
being the least preferred)

Funky Cool look

Simple Classy Look

13. What do you look for in your accessories? (Rank the following from 1-3 according to
your importance for them while purchasing accessories, 1 being the most important and 3
being the least important)

Variety in Design

18
Quality

Price

Results:

Income of Respondents

No. Of Respondents
8=11 Laks

5-8 Laks

3-5 Laks

Below 3 Laks

0 5 10 15 No. Of…
Interpretation: Most of the respondents fall within the Rs 5 Laks to Rs 11 Laks category

Spend Per Purchase

19
 No. Of Respondents

Above 3000
1000-3000
No. Of
500-1000 Respondents
Below 500

0 5 10 15

Interpretation: On an average the respondents spend around Rs 1000- Rs 3000 per

purchase

Main Shopping Areas Preferred

No. Of Respondents

Offline
No. Of
Respondents
Online

0 10 20

Interpretations: Most of the men prefer to buy online over offline.

Brand Consciousness

20
 No. Of Respondents

No

No. Of
Respondents
Yes

0 10 20 30
Interpretations: The men are not brand conscious

Product Category Preferrence

Products Ranking

Wallet 1

Bows 2

Ties 3

Belts 4

Bracelets 5

Bandanas 6

Suspenders 7

Bags 8

Earphone Clips 9

Key Holders 10

Mobile Cover 11

21
Sunglass 12

Material Preferrence

Materials Ranking

Aritifcial Leather 1

Jute 2

Hemp 3

coir 4

matty 5

silk 6

Type of look preferred

Looks Ranking

Funky Cool look 1(50%)

Simple Classy Look 1(50%)

Factors that influence shopping accessories

Looks Ranking

Variety in Design 1

Quality 2

Price 3

Strategy Formulation

22
Vision Statement: To become the top men’s accessories brand in India

Mission Statement: Our Mission is to deliver unique accessories to the men in India,
using simple techniques and continuously providing latest and up to date designs, made
ethically in our manufacturing unit by our valuable employees, keeping the environmental
health and social concerns in mind.

Target Market

Kolkata, Delhi, Mumbai, Hyderabad, Bangalore, Chennai, Lucknow,

Geographic
Nagpur, Pune

Gender: Male

Demographics Age: 14-60 years

Income: 8 Lakhs – 11 Lakhs and above

Middle Class and Upper Middle Class

Psychographics
Innovators and Thinkers

Loves to shop online

Shops atleast 3 times in a month

Behavioral
Impulsive Buyers

Soft Core Loyals

Long Term Objectives:

1. To operate our own website by the year end 2017

2. Open a store in Kolkata and Bangalore by the year end 2018

3. To start customization option the year end 2018

4. Revenue Goals: To reach breakeven by the year end 2017

5. Customer Service Goals: At least 80 percent positive customer feedback regarding the
products we provide.

23
6. Employee appreciation goal: Awarding an employee of the year award to the employee
who provides the most creative input during the year in terms of practical ideas to
improve the company.

SWOT ANALYSIS

Strengths:

1. Full manufacturing control

2. Focussing on only men’s accessories.

3. Use of unique materials in making of accessories (coir, jute, hemp, faux leather)

Weaknesses

1. Only a manufacturing unit with no retail store

2. No online website

3. A lot of other brands selling both women and men accessories

4. Limited Product Range

Opportunity

1. The e-commerce market in India is expected to nealry double to Rs 2,11,005 crore by

December

2. To start online retail store

3. To start a brick-n-mortar store

4. Capture the younger generation males

5. Rising online retail spending

Threats

1. Local competitors

2. Imitation of designs, styles, fabrics

3. Sudden changes in taste and preferences of men.

24
Ansoff’s Matrix

Forward Integration – From

manufacturing we will open up a retail
store.

25
 Instead of using traditional advertising to reduce the costs we will
Powerful Competitive
be using inexpensive social media campaigns.
Strategy
More focus on product designs & latest trends

Partnering with e-retailers to sell the products

Create Google Base

Marketing Strategies Videos on Youtube

Pay Per Click advertising (PPC) to generate export leads. Google AdWords for
this, Yahoo! Sponsored Search and MSN AdCenter

Occasion based Special deals on our products available during festivals and
marketing occasions in India on the e-retailing sites

26
 Organization plan

1. Developing the Management team

Directors
(Sushant &
Palak Kaur)

Designing/Pro
Inbound & Sales & Supporting
Production duct Accounts
outbound Marketing Staff
Development

Pattern Machine Catalouging

Maker (1) Operator (5) (2)
Procurement Accountant
(1) (1) Cleaning (2)

Cutting Designer (1)

Person (1) Dispatch (1)

Name of directors Management Area

Sushant Lulla Finance & Operations

Palak Kaur Marketing & Organization

2. Legal forms of business

Incorporation:

Advantages of Incorporation:

1. Separate legal entity and Limited liability: In a company, the shareholders have a
limited liability (That’s why it is called private limited or public limited). Individually, all
the share-holders have the liability to the extent of the amount of the shares held by them
for which they haven’t yet paid for. So once you have paid up the price for the shares to
the company, your liability is over. You are not bound to pay anything towards the debts,

27
which the company has incurred. In a partnership form each partner has an unlimited
liability and is personally liable for all the debts of the firm.

2. Ease of operations, because not every member is required to run the company: All the
partners of a firm are entitled to take part in the management. But in case of a company
the board of directors, elected by shareholders, control and manage the business. Every
shareholder doesn’t have to worry about the management of the company. Only majority
voting power (>50%) is needed to control the most operations of a company (in a few
very important cases >75% is required).

3. Adds credibility to the existence.

Key Responsibility Areas

Pattern Master

1) Compute dimensions of patterns according to sizes, considering stretching of material.

2) Create a master pattern for each size within a range of sizes, using drafting instruments.
3) Create a paper pattern from which to mass-produce a design concept.
4) Determine the best layout of pattern pieces to minimize waste of material, and mark
fabric accordingly.
5) Discuss design specifications with designers, and convert their original models of
garments into patterns of separate parts that can be laid out on a length of fabric.
6) Draw details on outlined parts to indicate where parts are to be joined.

7) Mark samples and finished patterns with information.

Cutter:

1. Before cutting, each Equipments should be clean well.

2. Cutter should be alert so that not to fall any dirt on the floor during cutting.

3. Cut panel numbering and bundling have to finish carefully and dispatch quickly.

28
Machine Operator:

1. Mounts attachments, such as needles, cutting blades, or pattern plates, and adjusts
machine guides according to specifications.

2) Monitors machine operation to detect problems, such as defective stitching, breaks in

thread, or machine malfunction.

3. Examines and measures finished articles to verify conformance to standards, using

ruler.

4. Sews materials by hand, using needle and thread.

5. Records amount of materials processed in production logs.

Designer:

1)Confer with sales and management executives or with clients in order to discuss design
ideas and develop the mood board.

2) Determine prices for styles.

3) Develop a group of products and/or accessories, and market them through venues such
as boutiques or mail order catalogues.

4) Direct and coordinate workers involved in drawing and cutting patterns and
constructing samples or finished accessories.

5) Identify target markets for designs, looking at factors such as age, gender, and
socioeconomic status.

Procurement & Dispatch:

1) Handling of raw material & checking of material while receiving from suppliers
2) Dispatching the product by handing over to the logistics partner of the market-
place portals.

29
Cataloguing Team:

1) Inventory management of finished products

2) Uploading the products on the portals
3) Checking the replenishment of the inventory
4) Coordinating with the packing & outbound department while processing the order

Supporting Staff:

1) Cleaning & other miscellaneous activities

Sr. Particulars Description Number Monthly Total

No. Salary/Wages Amount
per employee (Monthly)

1. Cataloguing of Computer knowledge 2 13000/- 26000/-

products

2. Production- Pattern making, 1 18000/- 18000/-

Pattern maker cutting, stitching,
(master) finishing

3. Cutting person 1 12000/- 12,000/-

4. Designer 1 18000/- 18000/-

5. Tailors cutting, stitching, 5 10000/- 50000/-

finishing

6 Procurement 1 9000/- 9000/-

7 Accounts & book 1 8000/- 8000/-

keeping

8 Supporting 2 5800/- 11600/-

/cleaning staff

9. Dispatch 1 8000/- 8000/-

10. Finishing & 1 7000/- 7000/-

packing

30
 Miscellaneous Tea/coffee/snacks 16 1500/- per 24000/-
expense on staff employee

Total 16 staff-members INR

1,91,600/-

Taxes Application

Sr. no. Type of the tax Percentage

1. Excise Duty Faux Leather: 10%

Jute: 10%

Hemp: 10%
2. VAT/CST Faux Leather: 5%

Jute: 5%

Hemp: Exempted
3. Service Tax to Market places 14.5%

Time Schedule for all employees:

Timings 9:30 a.m 10 a.m 1 pm- 5 pm 6 pm 6:30 pm

1:45
pm
Tasks Work Tea Lunch Tea Work is Workplace
starts Served Break and wrapped is shut
biscuits down
served

31
 Operation Management

3.
Manufacturing

2. Product
4. Working
development
Capital
(samples)

Operations

1.
5. Supply
Purchasing
Chain
& supply

6. Services

1. Purchasing & supply:

 Suppliers

Raw Material

Srl
Items Suppliers
No.
1. Rexine Fabric Masira Rexine Center,Toto Pvc
Rexine Pvt Ltd, Indiamart
Sheet -
Artificial Leather

2. Jute Fabric (Plain Dhruv Raj International,

Paradise Collection, Indiamart
and Printed) etc

3. Hemp Fabric Shubh Fabrics Limited,

Chandra Prakash and Co. etc.

32
4. Coir Fabric Coco Flora, Sri Kannan Coir
Products, etc.

5. Interfacing fabric A.K Fabrics

Machinery & tools

Single needle
6. lockstitch machine Juki
machine
Flat bed sewing
7. machine. Juki, Brother

post bed sewing

8. machine Juki, Brother

Cylinder bed
9. Juki
sewing machine
Buttonholing
10. Juki
Machine
The Foot: Walking
Foot -or- Roller
Foot – or- Non-
11. Juki
Stick Foot or
Teflon Foot

12. Cutting table National Fabricators

Aurifil 40wt
thread, all purpose Sivasakthi Threads,
13. nylon thread Tamil Nadu, Threads
(India) Limited
(heavy duty)

14. Needles Juki

15. Bobbins Juki
Local and
Scissors
16.
Joyeb Sharpening

33
 Works

Markers
17. Faber Castle

Forever Enterprises,
18. Magnetic button
Delhi

19. Trimmer Local, singer

care instructions
Krishna Labels Inc,
20. tag Delhi

Pliers
21. Local

2. Product development

Process Flow:

generation for
Designing & Raw material Raw material
Purchase
Sampling procurement inspection
Order

Shipment
Pre production
Finishing sample Production
sample

Packing Shipment

34
Sampling

Design Details spreading Pattern making

Preparation of Raw material Raw material

sample inspection procurement

Quantity list
Approval on pre
transferred for bulk-
production sample
production

ABC Analysis of Raw Material

Srl Rate Per Quantity per Amount

Item/Particulars Category
No. Unit fabric type (In Rs.)

1. Rexine Fabric Sheet - Rs 70- 1000 mtrs 150000 A

Artificial Leather 250/mtr

2. Hemp Fabric Rs 500 mtrs 100000 A

250/mtr

3. Jute Fabric (Plain and Rs 20- 600 meters 72000 B

Printed) 350/mtr

4. Coir Fabric 65-80/mtr 400 meters 28000 C

5. Interfacing fabric 20-30/mtr 600 mtrs 15000 C

35
6. Miscellaneous 5000 C

Total cost of fabric

INR 370000

 Design to value

Design Glimpse

Material Categ
ory
Belts
Leather

Bows

Ear-
phone
clips

Key
holder
s

Mobil
e
Cover

36
 Sungl
ass
cover

Suspe
nders

Walle
ts

Bags
Jute

Belt

Bows

Brooc
h

Walle
Hemp t

bags

Mobil
e
covers

37
 New product development
Materials used: Artificial Leather, Hemp, Coir, Jute

Sr. No. Category Material New SKUs per No. of units per
month month

1. Belts Faux Leather 60 600

2. Bows 20 200

3. Ear-phone clips 40 400

4. Key holders 60 600

5. Mobile Cover 80 800

6. Sunglass cover 40 400

7. Suspenders 20 200

8. Wallets 80 800

9. Bags Jute 20 200

10. Belt 20 200

11. Bows 10 100

12. Brooch 20 200

13. Wallet 10 100

14. Bags Hemp 20 200

38
 15. Mobile covers 20 200

Total 520 5200

 Quality-check of Raw material

Quality of the raw material will be checked by inspection of the material in terms of
following parameters:
1. Colour: Checked to be within tolerance of standard pattern.
2. Delivered quantity: Any shortfall claimed.
3. Faults & stain on the fabric.
4. Sewing thread will be inspected on the basis of count, twist, tenacity &
elongation.
5. Trims: Zipper dimension, buckles of the belts & locks of the pouches

Tasks of the procurement person:

 To receive incoming material.

 To check material for attribute & variables.

 To arrange the incoming material in allocated racks.

 To issue fabric & trims as per BOM for sampling and production & other material
as per requirement.

3. Manufacturing

 Operations Strategy

39
 Preparation
Planning Spreading Cutting
for sewing

Road Map of Production:

The Production Process

You’ll also want to get more specific into your entire production process, and that means
covering:

 How long it will take you to produce a single unit or a predefined number of units?

 What measures have been put in place to integrate customer feedback into your product or
service? As in, have you allotted time to create and test prototypes, pricing, or delivery
mechanisms?

 How will you deal with major influxes in demand, as in what procedures or steps will you
have in place when you offer a sale and orders come flying in?

This section should signal to the reader of your business plan that you’ve got a good
handle of running your business and the contingency plan you have in place to account for
uncertainty in the marketplace.

A) Spreading:

Equipment: Pin Table/Table

Mode of spreading: Manual

40
 Nap one way & face
one way spreading

Nap either way & face

to face spreading

Spreading Mode

Nap one-way face to

face spreading

Nap either way & face

one way spreading

B. Marking:

Mode of marking: Manual

Features of manual marking:

 Created on marker paper or directly on fabric ply

 Tracing by pencil or tailor’s chalk.
 Time consuming.
Marker Efficiency

Area of patterns in the marker plan X 100%

Total area of the marker plan

C. Cutting: Manual

41
D. Preparation for sewing

Preparation
for sewing

Ticketing Bundles

A) Ticketing

 Tickets carry details : style no, size, ply no, bundle no., date issued

B) Bundling

 Small batches of bundles move from one work station to another in a controlled
way
Bundle ticket consists of:

 Bundle no. :

42
  Quantity:
 Style no.:
 Findings:

Sewing process

Cut parts received Bulk production

from the cutting begins In line inspection
table Production continues

Button-button hole/
Final checking Rough checking End line checking
bartack

Tagging Packing Quality check Warehouse

 Production System:
Progressive Bundle System

43
 Sewing operations are laid out in sequence.
 Each operator receives a bundle, does his work, reties the bundle and passes it to
the next operator.
 The work is routed by means of tickets.


Machines required:

44
Punching of leather

45
Riveting on bags

Bow tie clipping

Press Machine

46
Tagging Includes:

Price, Barcodes, Style code, Mfg month

Packaging:

Quality check
• Quality of the raw material will be checked by inspection of the material in terms
of following parameters:
• 1. Colour: Checked to be within tolerance of standard pattern.
• 2. Delivered quantity: Any shortfall claimed.
• 3. Faults & stain on the fabric.
• 4. Sewing thread will be inspected on the basis of count, twist, tenacity &
elongation.
• 5. Trims: Zipper dimension, buckles of the belts & locks of the pouches

Tasks of the procurement person:

• To receive incoming material.
• To check material for attribute & variables.
• To arrange the incoming material in allocated racks.
• To issue fabric & trims as per BOM for sampling and production & other material
as per requirement.

47
Plant & Workplace Optimization

Sr. Category Material Avg. Time to Maximum Average Total

No. manufacture per Quantity/Day Quantity Time
piece per day

1. Belts Faux 10 min. 225 30 300

Leather

2. Bows Faux 10 min. 225 5 50

Leather

3. Ear-phone Faux 5 min. 450 10 50

clips Leather

4. Key holders Faux 5 min. 450 20 100

Leather

5. Mobile Faux 7 min. 330 50 350

Cover Leather

6. Sunglass Faux 10 min. 225 30 300

cover Leather

7. Suspenders Faux 12 min. 180 5 60

Leather

8. Wallets Faux 10 min. 225 20 200

Leather

9. Bags Jute 60 min. 35 5 300

10. Belt Jute 10 min. 225 5 50

11. Bows Jute 10 min. 225 5 50

12. Brooch Jute 6 min. 350 5 30

48
13. Wallet Jute 10 min. 225 5 50

14. Bags Hemp 60 min. 35 5 300

15. Mobile Hemp 7 min. 330 10 70

covers

Total Available Machine minutes: Number of machine X working hours X 60

= 5 X 10 X 60= 3000 Minutes

Efficiency=75%

Net Machine minutes= 2250 Minutes

4. Working Capital

 Inventory Management

 Accounts Receivables
 Account Payable

49
5. Supply Chain

 Service Level
Online portals & Indiamart
 Product Flow

Facilities - Where will you house your inventory (if any) or which office will you be
working out of?

All inventory will be stored in our

 Personnel - How many staff will you require your daily operations? What will
their duties look like?

 Equipment - What tools and technology do you require to be up and running or to

take your company to the next level? (This could include everything from
computers to office desks and everything in between)

 Shipping and Fulfilment - Here you’ll have to outline whether you’ll be handling
all the deliveries on your orders or if you’ll be using a third-party fulfillment
partner.

 Inventory - Here you’ll highlight how much you’ll keep on hand, where it’ll be
stored, and how you’ll have it shipped to third-partners if applicable. Also, an
important detail to note is how you’ll keep track of everything going in and out.

 Customer Support - How will support requests, refunds, and customer complaints
be considered and integrated in your business workflow?

6. Services

 Customer experience & CRM

 Business Support Functions

50
WAREHOUSING

1. Objective:
To keep the inventory by maintaining the essence of right product at right place which helps in
easy stock picking at the time of order processing also to seek for the optimum utilization of
the resources involving space, equipment and workforce. This department also helps us the fast
order processing to reduce delivery time and process inventory removed request from
merchandising.
2. Person’s involved: Supervisor/Computer Operator

3. Functions:

Warehouse handles

Receiving Raw Moving the finished stock Physical inventory

material from to outbound verification
supplier

A. Receiving Raw material:

1. Moving the raw material from gate to warehouse by checking & counting the stock with the
bin locations they are kept in. After moving all the items of a PO he/she checks the total
quantity movement in manufacturing bin and from manufacturing to warehouse.

B. Moving to outbound (sales/ inventory removal/ stock transfer):

 Sales:
I. Picker (warehouse): Picking the items from respective locations with the help of pick-
list generated, and putting all the items picked against one pick list in a bin together with pick
list.
II. Computer operator (outbound scanning): Scanning the individual items against each
pick list and handover to outbound department.

51
If item picked shows an error while scanning (either due to cancellation or modification of
order by customers) - Such item is restored back to its picked location.
In case of short picked- Picker pick the remaining items.

 Inventory removal:
I. Picker: Pick the products as per the pick list.
II. Computer operator: Scan the picked products and generate the return challan and passes
the products to outbound for packaging.

 Stock transfer to l
I. Computer operator: Generate the pick list by entering code and handover to picker.
II. Picker: Pick the products as per the pick list.
III. Computer operator: Scan the picked products and generate the return challan and passes
the products to outbound for packaging.

B. Physical inventory verification:

I. Supervisor: chose 3-4 racks daily such as to cover all racks in a month. Supervisor to
generate and handover the list of inventory in selected racks to the picker.
II. Picker: Count the inventory as per the list provided and report supervisor.
III. If excess then supervisor: Keep the excess products at location marked as “Excess
Inventory”.
IV. If shortage then supervisor: Create the movement from warehouse to “Not found”
location.
V. At the completion of monthly inventory verification cycle, supervisor to: Check the
products in “Not found” location and whether the products are available in excess stock. If
product in “Not found” location is available in excess stock then move the product from not
found location to warehouse and if shortage remains it is marked as stock loss.

52
 1. Flow chart: Outbound and Packaging Department
1. Objective: Outbound department works towards stimulating the task of packing right orders
for right address, it receives items with pick list from warehouse and contributes by proper
packaging, right invoice with right product and delivering to the right person.

3. Functions:
A. Sales / SI’s
I. Computer operator (order processing):
i. Check the pending orders portal wise and print the pick list mentioning SKU’s, product
location, size etc. and handover the pick list to warehouse department.
ii. For SI’s goods are directly received from warehouse and packer to change the
packaging as per the requirement of SI’s.
iii. Collect products from warehouse and generate invoices including invoices of 3P
channels for all the orders of the pick list.

II. Picker (outbound): Arrange all the product in accordance of their SKU categories and
then pick product manually by seeing the product codes in invoice and place all the styles with
requisite quantities along with invoice in standard portal packaging machine with lower foam
layer and pass the box to computer operator (packing).

III. Computer operator (packing): Open the box and enter the order no. in ERP from
invoice and scan the individual product placed in the box so as to verify that products
handpicked by picker (outbound) are all as per invoice and pass the box to packer.

IV. Packer: Arrange all the products along with two layer of foams in the box. Place one
copy of invoice in the box then insert the package in standard polybag and paste one copy of
invoice on the polybag. After packing, drop the package in the box of courier company.

V. Computer operators (dispatch): Scan the package for order Id, AWB no. and arrange in
the rack marked for the courier company.
Get the signed manifest from courier man for handing over the parcel and documented it in file.

53
VI. During any of the stage involving computer operator if it is acknowledge that the order
is cancelled then that computer operator will return the product to supervisor.
Supervisor: Create the move of that product to the manufacturing bin and pass the
product physically to warehouse department.
B. EBO’s:
I. Packer: Receive the product from warehouse and packing of the products as per the
requirement of EBO’s.
Packer: All the products in the cartoon for dispatch.
II. Computer operator (dispatch): Get all the signed manifest from courier man for handing
over the parcel and documented it in file.

54
Production Schedule

Sr
.
No Departme Durati 1 1 1 1 1 1 1 1 1 1 2 2 2 2 2 2 2 2 2 2 3
. Task nt on 12 3 45 6 78 9 0 1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 6 7 8 9 0

Designing
&
1 Sampling Designer 10

Design
2 Details Designer 1

Raw
material
procurem
ent for Procureme
3 sampling nt person 5

Preparatio
n of Productio
4 Sample n 2

Approval
5 of sample Head 2

Generatio
n of
purchase
order for
bulk
productio
6 n Head 1

Raw
material
procurem
ent for
productio Procureme
7 n nt person 5

Inspection
of raw Procureme
8 material nt person 1

55
 Pre-
productio Productio
9 n sample n 2

Sample
10 Approved Head 2

Sample
sent for
photoshoo Catalogoui
11 t ng team 2

Bulk
Productio Productio
12 n n 9

Productio
13 Spreading n 2

Productio
14 Marking n 1

Productio
15 Cutting n 1

Productio
16 Stitching n 5

Finishing
17 Finishing & Packing 5

Finishing
18 Packing & Packing 5

Transferr
ed to
Warehous Supportin
19 e g Staff 5

56
Costing and Finance

1) Land & building cost

Total Land & building cost:

Sr. Particular Description Specificati Rate per Quantit Brands Amou

No on unit y nt
.

1 Plot & building Paridhan Plot area: 2050INR/ 2500 INR

location industrial 2500 Sq. ft Sq feet Sq ft 50,25,
park, 000
kolkata

1.1 Documentation Release 10% of INR

charges letter, sale land cost 2,62,5
deed, Govt. 00
Tax
document,
sanction
map, land
demarcatio
n approval

Total plot cost INR

52,87,
500

2.a Electrical Lights & Electrical 400INR 500 sq Havells 20000

equipments fans fixtures for per sq feet feet India 0
office Limited
INR

2.b Electrical Lights & Electrical 200INR 1900 sq Havells 38000

equipments fans equipments per sq. feet India 0 INR
for feet Limited
warehouse
&
production
area

2.c Flooring for Tiles 150 INR 500 sq Euro 75000

office per sq feet feet Flooring INR
Pvt. Ltd.

2.d Flooring for Kota stone 35INR per 1900 Walltract 66500

57
 warehouse & square Sq feet s India INR
production area feet Pvt. Ltd.

2.e Wall paint for Textured 30 INR Asian 30000

office per sq. Paints INR
Feet

2.f Wall paint for Putty 12 INR Asian 30000

warehouse & per sq. Paints INR
production area Feet

2.e Plumbing cost Washroom 200sq. Local 20000

primary s & kitchen feet 0 INR

2.f Tank cost undergroun 600 INR 150 sq Sintex INR

d per square feet Water 10000
feet Tanks 0

Total INR
construction 34815
00

3. Office area 500 sq feet

3.a Computer Lenovo 30000/- 5 Lenovo INR

i5,4GB 1,50,0
RAM, 500 00
GB HD

3.b Air condition Daikin, 1.5 34000/- 2 INR

Ton 68000

3.c Wooden 1000- 500 Godrej INR

furniture 1500 INR Interiors 5,00,0
per sq feet 00

4. Warehouse and 1100 sq

dispatch area feet

4.a Racks Steel racks 10000 per 10 Godrej 10000

unit Interiors 0 INR

5. Cutting and 600 sq feet

stitching area

6. Architect/interi 7% of INR

58
 or designer fees work 24370
5

Total cost: INR 28,87,500+ INR 3481500 +INR 1,50,000+ INR 68000+ INR
500000+INR 100000+ INR 243705= INR 7430705

 Total land & construction cost= 74,30,705/-

2. Documentations

: Time to Cost to
Procedure
complete: complete:

1 Obtain director identification number (DIN) online from 1 day INR 100
the Ministry of Corporate Affairs portal (National)

2 Obtain digital signature certificate online from private 3 days INR 1,500
agency authorized by the Ministry of Corporate Affairs
(National)

3 Reserve the company name online with the Registrar of 2 days INR 500
Companies (ROC) (National)

4 Stamp the company documents at the State Treasury 1 day INR 1,300
(State) or authorized bank (Private) (INR 200 for
MOA + INR
1,000 for AOA
for every INR
500,000 of
share capital or
part thereof +
INR 100 for
stamp paper
for declaration

59
 Form 1)

5 Get the Certificate of Incorporation from the Registrar of 5 days INR 14,133
Companies, Ministry of Corporate Affairs (National) (see
comments)

6 Make a seal (Private) 1 day INR 350 (cost

depends on the
number of
seals required
and the time
period for
delivery)

7* Obtain a Permanent Account Number (PAN) from an 7 days INR 70 (INR

authorized franchise or agent appointed by the National 60 application
Securities Depository Ltd. (NSDL) or the Unit Trust of fee + 14.5%
India (UTI) Investors Services Ltd., as outsourced by the service tax +
Income Tax Department (National) INR 5 for
application
form, if not
downloaded)

8* Obtain a Tax Account Number (TAN) for income taxes 7 days INR 60 (INR
deducted at source from the Assessing Office in the 50 application
Mumbai Income Tax Department fee + 14.5%
service tax)

9* Register with the Office of Inspector, Shops, and 2 days INR 6,500
Establishment Act (State/Municipal) (INR 2000 + 3
times
registration fee
for trade refuse

60
 charges)

10* Register for Value-Added Tax (VAT) at the Commercial 12 days INR 5,100
Tax Office (State) (registration
fee INR 5000
+ stamp duty
INR 100)

11* Register for Profession Tax at the Profession Tax Office 2 days No cost
(State)

12* Register with Employees’ Provident Fund Organization 12 days No cost

(National)

13* Register for medical insurance at the regional office of 9 days No cost
the Employees’ State Insurance Corporation (National)

14 Current account 3000/-

Total documentation cost: INR 30,000 (Inclusive of Chartered accountant fees)

* Takes place simultaneously with another procedure.

 Total documentation cost= INR 30000

Source: Detailed Steps and Explanation of procedure to start Business in India

61
3. Machinery Cost:

 Total machine cost & miscellaneous= 2,67,000/-

Sr. No. Particulars Type Cost

1. Total land & construction cost Non-recurring INR 74,30,705

2. Total documentation cost Non-recurring INR 20,000

3. Total machine cost & Non-recurring INR 2,67,000

miscellaneous

Total Non-recurring cost= 77,17,705

4. Raw material for 1 month:

Quantity Remarks
Description Rate
Srl Item/Part per ( Brand Amount
/ (Work) Specification Per
No. iculars fabric Recomm (In Rs.)
Utility Unit
type ended)

1. Rexine Rs 70- 1000 Masira INR

mtrs Rexine 150000
Fabric 250/mtr
Center,T
Sheet oto Pvc
- Rexine
Artificial Pvt Ltd,
Indiamar
Leather
t

2. Jute Rs 20- 600 Dhruv INR

meters Raj
Fabric 350/mtr 72000
Internati
(Plain onal,
and Paradise
Collectio
n,

62
 Printed) Indiamar
t etc

3. Hemp Rs 500 mtrs Shubh INR

Fabrics
Fabric 250/mtr
Limited, 100000
Chandra
Prakash
and Co.
etc.

4. Coir 65- 400 Coco INR

80/mtr meters Flora, Sri 28000
Fabric
Kannan
Coir
Products,
etc.

5. Interfaci 20- 600 mtrs A.K INR

ng fabric 30/mtr Fabrics 15000

6. Miscella INR
neous 5000

Total cost of fabric

INR 370000

5. Packing material

Tapes: 40/- per 50 metres

Bubble sheets: 500 per 100 metre

Price Per Piece (Inc. of Taxes)

Size (W x
Micron Jacket 25000
H) Inches 100 - 500 - 5000 -
and
400 4900 24900
above

8 x 10 60 Yes ₹ 5.60 ₹ 4.80 ₹ 3.50 ₹ 2.50

10 x 12 60 Yes ₹ 6.50 ₹ 5.80 ₹ 4.80 ₹ 3.50

63
12 x 16 60 Yes ₹ 7.90 ₹ 6.50 ₹ 5.70 ₹ 4.60

15 x 19 60 Yes ₹ 8.60 ₹ 7.80 ₹ 6.68 ₹ 5.60

19 x 24 60 Yes ₹ 9.70 ₹ 8.60 ₹ 7.70 ₹ 6.50

Average use of packing material per month for 1800 orders:

1. Bubble sheet Usage = 0.4 metre X 1800= 720 meter

1.1 Cost of bubble sheet in use= INR 3600

2. Average use of tape in a month: 0.3 metre X 1800= 540 metre

2.1 Cost of tape in a month= INR 500

3. Average cost of packing bags: INR 6.50

3.1 Total cost of packing bags= 1800X6.5= INR 11700

4. Boxes: INR 5000

Total packing cost: 3600+500+5000+11700= INR 20800 (Approximately)

6) Staff & Labour

Sr. No. Particulars Description Number Monthly Total

Salary/Wages Amount
per employee (Monthly)

1. Cataloguing of Computer knowledge 2 13000/- 26000/-

products

2. Production- Pattern making, 1 18000/- 18000/-

Pattern maker cutting, stitching,
(master) finishing

Cutting person 1 12000/- 12,000/-

Designer 1 18000/- 18000/-

64
3. Tailors cutting, stitching, 5 10000/- 50000/-
finishing

5 Procurement 1 9000/- 9000/-

6 Accounts & 1 8000/- 8000/-

book keeping

7 Supporting 2 5800/- 11600/-

/cleaning staff

8. Dispatch 1 8000/- 8000/-

9. Finishing & 1 7000/- 7000/-

packing

Miscellaneous Tea/coffee/snacks 16 1500/- per 24000/-

expense on staff employee

Total 16 staff-members INR

1,91,600/-

7. Other Overhead costs

Remarks
Description Rate
Sr. Item/Particu ( Brand Amount
/ (Work) Specification Per Quantity
No. lars Recomm (In Rs.)
Utility Unit
ended)

2000 INR
1. Electricity 10/-
Units 20000

Telephone BSNL land INR

2.
Bill line, mobile 5000/-

40Mbps. The 2699/-

Airtel fastest plan is 2
Internet per INR
3. the 160 GB connecti
Broadband 5400
and then it month ons
switches

65
 automatically
to a slower
plan of 1
Mbps.

Municipal INR
4.
2000/-

Transportati
5. 10000/-
on 

Indiamart B2B
6  2500/- per 2500
fee networking
month

Water INR
6. 1000/-
supply 1000/-

As provided Averag
Logistics online INR
7. by market 1800
e: 90/- 1,72,000
places

Amazon,
Market Flipkart, 18-20% 90000
8. Snapdeal,
place fees of sales INR
Voonik,
Limeroad

Stationery/
office - INR
9. Local Stores - -
2000
expense

Maintenanc Plant & INR

10.
e machinery 3000

Bad debts INR

11.
4000

TOTAL

INR 3,16,900

66
Recurring costs

Sr. Particulars (Recurring) Cost

No.

1 Raw material cost of 1 INR 370000

month

2 Packing material cost of 1 INR 20800

month

3 Total staff wages of 1 INR 191600

month

4 Other Overhead cost of 1 INR 316900

month

Total recurring cost=INR 899300

Total Initial Investment

Sr. Particulars Cost Multiplicative Total Cost

No. factor

1. Total non-recurring cost INR 1 INR 77,17,705

77,17,705

2. Total recurring cost INR 8,99,300 3 INR 26,97,900

TOTAL INVESTMENT= INR 1,04,15,605

Expected production capacity=250 units per day

Expected production capacity of 1 month= 6500 units

Nature of selling: Market places (B2C) & Indiamart –Bulk (B2B or B2C)

Expected sales per month: 6500*220= INR 1430000

Expected sales per year= INR 1,71,60,000

67
Sr. No. Yearly DATA

1. Net Sales: INR 1,71,60,000

2 Operating Expenses: INR 1,07,91,600

3 Operating Profit: INR 6368400

(1minus2)

4 Interest on Loans @ INR 9,10,000

13%

5 PBT: (3minus4) INR 54,58,400

6 Tax @ 28% INR 15,28,352

7 Commission of INR 15,284

advocate: 1% of tax

8. PAT: INR 39,14,764

9. Reserved funds:

10. Owners Distribution:

11. Absorption of fixed

costs:

12. Time taken to reach:

breakeven:

Required investment: INR 1,03,36,105

SOURCES OF FINANCE

TOTAL INVESTMENT= INR 1,10,56,348

Loan Amount= INR 77,39,443

SI Criteria Bank of India Canara Bank

No.
1 Eligibility Micro & Small Enterprises in Individuals,
rural, semi urban, urban and Proprietorship,
metro branches Partnership, Ltd.
Companies etc.
2 Maximum Fund Rs.50,00,000/- Depending on the
Availability Urban project cost

68
 Areas

3 Documents Required Demand Promissory Note. KYC

Deed of Hypothecation CHA Address Proof
1/CHA 2 as the case may be.. Registration certificates
Installment Letter. Project report
Documents for fulfillment of
KYC norms.
Other connected documents
applicable for Demand/Term
Loans as per extant
guidelines.
Equitable Mortgage as
Primary Security wherever
applicable.

4 Rate of Interest Above Rs.10,00,000/- upto Base rate 9.75% +

5 Payment Terms
6 Payment Period
7 Advantage of Scheme
8 Margin Money
9 Accessibility
10 Processing charge
11 Processing time 1. Turnaround time for sanction
Rs.100,00,000/- @ 12.95%
Loan is to be repaid in
maximum 5 years with a
moratorium of 3 to 6 months
to be determined on the
merits of each case.
Consumer friendly, low rate
of interest,
15%
Many branches are available
5000/-
of limits upto Rs.5 lacs will
be 5 working days and for
limits above Rs.5 lacs, 7
working days after all
relevant information is
obtained.
2.25%=12%
36 months and above
in
monthly/quarterly/half
yearly/yearly
installments depending
on the cash generation
and Debt Servicing
capacity.
20%
Less no. Of branches
1% of the loan

69
70