Rashmi garments

Mrs.Rashmi Aggarwal is a post graduate in Economics .Since her school days ,she had
liked the service class women ,she was influenced by their way of living .their modern dresses ,
their status in family and society . She wanted to become economically independent and carve
out her own identity in society.

In 1984 she saw an advertisement in the newspaper for a one month entrepreneurship
Development programme (EDP) being conducted by Small Industry Service Institute (SISI)
Okhal , New Delhi . She applied and participated in the programme .She learnt how to own
venture.

Feeling encouraged, she decided to start a garment unit as she had learnt something about
garments in her school days. In order to add to her technical know – how ,in 1985 she enrolled
herself for s two year part time course in Young Women ‘s Christian Association
(YMCA).New Delhi .She completed the course in 1987.

In the meantime on the advice of her husband she applied for a shed to Director of Industries
(DI) Delhi. The shed was allotted to her in October 1986 at the flatted factory complex (F.F.C)
jhandewalan, New Delhi.

Mrs. Aggarwal had been living in a joint family at chawri bazaar with her father and mother-in-
law. A year ago, due to lack of sufficient space, she had shifted to her newly constructed house at
Vikaspuri 25 Km away from her unit. She had two school going children – a girl and boy aged
seven and four years respectively. The children were admitted to a school in karol bagh near
her unit , so that she could herself take care of them after they returned from the school to
her unit .Prior to this her mother and father - in - law used to look after her children.
Her husband, Mr. A.K. Aggarwal is M.Sc. in Chemistry. He was working as a Circle Officer
with different departments of Delhi Administration, Delhi. From 1978 to 1987, he has also
worked with different departments of Delhi Administration and the Ministry of Agriculture as an
inspector and an investigator respectively.

She has witnessed an event in his neighborhood, where a young widow had been ill-treated by
her in laws. This had left a great impact on him and his interest to see has wife do something
outside home turned into his determination to make her economically independent.

“The Rashmi Garments” was started by Mrs. Aggarwal in May 1987, by installing two machines
– one her own and the other purchased from a local dealer, with a total investment of Rs.20,
000/-. Out of this, her own contribution was Rs.4, 000/- (the saving from her husband’s salary)
and the remaining Rs.16, 000/-she borrowed from her family friends and relatives as interest free
loan and without any time limit for payment. Her husband had suggested her to approach friends
and relatives for finance rather than the banks. The banks had a long process and many
formalities, like securities, guarantors certificates etc. to be completed. In addition, there was the
burden of repayment at high rates of interest. During the initial stages, since her unit was not in
full production, workers were unwilling to join as they were unsure about the unit’s survival.
After a great deal of effort she was she was able to hire through her local machine dealer, one
worker at Rs.1,000/- per month.

She had difficulty in keeping pace with the frequent changes in fashions prevalent in modern
society, while maintaining quality and productivity. On the advice of her husband, she started
with kurta-pyjamas, night suits and shirts for gents and children only. Her initial strategy was to
approach the customers in the local market with sample pieces of her items. The response was
not encouraging. Despite her offering 10 per cent less than the market rate the dealers and
shopkeepers were unwilling to purchase her items. She then decided to supply the items at cost
price. This proved successful to get an entry into the market.

In the next one month, she was approached by three local dealers who placed orders with her.
Thereafter, she was approached by three more dealers. She now decided to sell her items at 10-
15 per cent profit. This was acceptable to her old as well as new customers. She then employed
three more workers and added two more machines to her unit for meeting the demand of her
customers. How- ever, in the initial couple of months it was difficult for her to cope with the
customer’s requirements regarding the types, size and the quantity of the items.

She reinvested more than 70 percent of the profit into her venture. Gradually, her total
investment rose from Rs.20,000 to Rs.40,000 (see exhibit). The turnover also increased from
Rs.5,000 to Rs.6,000 p.m. during the same period.

She now had eight workers including one cutting and designing master and eight machines in her
unit . there were more than ten customers in the local market . besides, the cutting and designing
master who was paid Rs 1500 per month , all others were piece rate workers . the piece –rate
varied from Rs 6 to Rs 15. Each worker was making on an average 8 to 10 pieces per day . the
cutting and designing master , in addition to doing his work used to prepare the items on piece
rate basis , she also employed an accountant on a part time basis at Rs 200 per month . He used
to come once a week for maintaining the accounts and records of her unit.

She always took care of her workers and was ready to help any time , however she did not get
their help at the time of her need . The workers would always turn up late for work even when
the customers demand was high . This created tension in her mind .Her workers said that they
liked her , due to her good behavior , soft attitude and cooperative nature . They further said that
she was always ready to help them at their hour of their need and that was why they used to work
till late in the evenings and sometimes even on weekly holidays . However at the same time, they
also had their personal problems and limitations.

Both she and her husband were unable to go out of Delhi due to lack of time for marketing the
items, She felt the need of a trusted person for this purpose.In the month of April 1988 she was
approached by two customers from Jammu and Kashmir and Allahabad (Uttatr Pradesh) with
orders. when the items were supplied through a Bank , the customers refused to accept them .
Then her husband had to go to get the items back . This caused great difficulty and wastage of
time and money . Recently , her younger brother – enrolled for the company secretary , had
begun to assist her in local marketing

Total involvement with the unit left little time for her to look after her children properly they
often slept on her office table. she was hardly able to accompany them once in 15 days either for
visiting the market or for an evening walk even her visit to cinema with her family was
considerably reduced she now saw a movie once in 6 months instead of her earlier once in 15
days . She felt that her husband was more cooperative then before . Now he used to assist her in
getting the children ready for school serving them breakfast and packing their lunch.

The status of family had been in enhanced in the society now sometimes they received invitation
form the people who earlier had never given any importance to them . Even distant relatives
used to make frequent visits to their house to invite them to attend their ceremonies and
functions.

In the initial stages, Mr Aggarwal used to take all the decisions regarding purchase of raw
material production of items marketing , etc . She gained experience by closely watching him
gradually she increased her involvement in managing and controlling the production . After 5
months she took over full charge of the operation

She had taken keen interest in marketing she used to participate with her husband in the
discussion with the customers . This increased her confidence in the marketing activities . In the
absence of her husband she had begun to take the decision . after getting the telephone
connection in January 1988 it had become more convenient for her particularly in the local
market to deal with her customers . She said confidently that now she was able to meet the
requirements of her customers in time .

Though the market demand for my items is increasing, yet I am finding it difficult to cope due to
lack of space and manpower . I need to expand my business. at the same time I also feel the need
to spend more time at home with my growing children . I do not know which way to go .

Motivation:

She has witnessed an event in his neighborhood, where a young widow had been ill-treated by
her in laws. This had left a great impact on him and his interest to see his wife do something
outside home turned into his determination to make her economically independent

Strengths:

• Strong educational background : post graduate in Economics

• Futuristic : early goals , career planning since school days

• Supportive Family : freedom to follow her own will

• Enthusiastic : joined various courses to enhance her knowledge before starting her
venture joined one month entrepreneurship Development programme (EDP) being
conducted by Small Industry Service Institute (SISI) Okhal , New Delhi and enrolled
herself for s two year part time course in Young Women ‘s Christian Association
(YMCA)

• Living in joint family : family support and help

• Had confidence in herself

Weaknesses:

• Finds it difficult to keep up customer’s requirements regarding types and sized

• Immobility : inability to travel large distances alone ,because of which business could
not expanded fast, husband has to spare out for such outdoor visit , also employment
 of another trusted person to do the job – this leads to unnecessary expenditure of
employing a man specially for traveling purpose.

Leadership quality:

• Good behaviors

• Soft attitude and cooperative nature

• She cared for her employees as was always ready to help them at the hour of their
need

• Good planning of working depending on market trends

Because of all this she was able to make her workers work for her late in the evenings
and sometimes even on weekly holidays

Opportunity:

• Had trusted friends and relatives who helped her to set up the initial machinery buy
lending money

Marketing Strategy:

• Started with a target group in mind : kurta – pyjamas , night suits and shirts for gents
and children only

• Offered items at 10 % less than that of the market rate

• Supply item at cost price – to get an entry into market