TABLE OF CONTENTS Your business plan is divided into the following sections: Business Overview Description of the business_____3

Major demographic, economic, social and cultural factors_______3 Major players (suppliers, distributors, clients)______3 Nature of the industry____3 Trends in the industry:____4 Government regulations_ _4 _ Market segment _________7 Sales & Marketing Plan Customers__________________9 Suppliers___________________9 Advertising & promotion______9 Pricing & distribution__10 Customer service policy_ 0 1 Products & services_____7 Pricing and distribution__7 Market trends__________7 Implications or risk factors___7 Competitors and type of competition___________8 Competitors' strengths and weaknesses____________8 Competitive advantage__8

Operating Plan Business location & requirements / advantages / lease details____________11 Equipment / technology / R&D / environmental aspects________________11

Human Resources Plan Key employees________________12 Policies & procedures_________12

Action Plan Action plan & timetable_________13

Executive Summary

PAGE 1

A brief description of the project, the financing required, and additional information that help explain the business plan___________________14

APPENDIX: Financial Plan The companys financial performance, both historical and projected. Includes sales, cost of goods sold, expenses, income statement, balance sheet, cash flow budget, financial requirements, performance indicators, and personal status.

PAGE 2

LEGAL NAME TRADING NAME BUSINESS ADDRESS

Fruto Fibre Extractors Fruto Fibre Extractors

12 Vijayamangalam RS, Vijayamangalam, Perundurai-638052

PHONE E-MAIL DESCRIPTION OF THE BUSINESS

04256-2485716 frutobananafibres@gmail.com

FAX

04256-2485713

Fruto banana fibres is an Eco friendly natural fibres based industry. It is a growing company in the field of natural fibres . The company has successfully produced natural fibres, especially fibres extracted from banana stem. The apparel produced are more cost effective and environmental friendly. It also absorbs less heat. The company is supported technically by the National Research Centre for Banana Trichy.

MAJOR DEMOGRAPH IC, ECONOMIC, SOCIAL AND CULTURAL FACTORS

Due to the relatively highcost of synthetic fibres and health hazards, it becomes necessary to explore natural fibres. Banana fibre is a good alternative to this. Banana fibre is eco friendly and chemical free. It is grease proof, water and fire resistant and totally bio-degradable. It will accepted by all segment of people and healthy conscious people. It is cost effective when compared to other fibres.

MAJOR PLAYERS (suppliers, distributors, clients)

Suppliers-The farms are around sathyamangalam which covers a nearly 50 acres those who are cultivating bananas. Distributors-Self help groups, Environment friendly shops, Pomphukar. Clients-The small-scale industries those who weaving clothes using banana fibres and producing apparels.

NATURE OF THE INDUSTRY

There are many natural fibres emerged in the world. They range from cotton, which dominates world fibre production, to other, specialty fibres such as cashmere which, though produced in far smaller quantities, have particular properties that place them in the luxury textiles market.

PAGE 3

TRENDS IN THE INDUSTRY

Bananas were originally found in South East Asia, mainly in India. They were brought west by Arab conquerors in 327 B.C. and moved from Asia Minor to Africa and finally carried to the New World by the first explorers and missionaries to the Caribbean. The mass production of bananas started in 1834 and really started exploding in the late 1880s. The banana plant has long been a source of fiber for high quality textiles. In Japan, banana cultivation for clothing and household use dates back to at least the 13th century. In the Japanese system, leaves and shoots are cut from the plant periodically to ensure softness. In South Indian state of Tamil Nadu after harvesting for fruit the trunk (outer layer of the shoot) is made into fine thread used in making of flower garlands instead of thread. Banana fiber is used in the production of banana paper. Banana paper is used in two different senses: to refer to a paper made from the bark of the banana plant, mainly used for artistic purposes, or paper made from banana fiber, obtained with an industrialized process from the stem and the non-usable fruits. The paper itself can be either hand-made or in industrial processes.

GOVERNMENT REGULATION S

The company is registered under Partnership Act 1932 . The Cottage Industry Act of 2010 The plan is simple, consisting of the following steps: 1) At the State level, a Cottage Industries numbered license is issued for a nominal fee, perhaps $10.00. This license (and its number) is used for all aspects of the Act. 2) Under the license the holder is allowed to manufacture and sell whatever product they deem to be a marketable item of their own design, or pursue a part time calling. Manufacturing shall be defined as any endeavor such as (including but not limited to) arts and crafts, woodworking, metalworking, repair shops of any nature, and or part time contract work in any trade, etc. 3) The appropriate sales tax shall be paid on all raw materials purchased for such manufacturing. Upon selling an item, a sales tax equal to one half of the

PAGE 4

prevailing State sales tax rate shall be charged on the full purchase price. 4) At appropriate intervals, a simple form shall be filed with the State, remitting the sales tax and 10 percent of the profits made on sales. The State shall retain the sales tax collected, and one half of the 10 percent profits remitted, forwarding the other half of the 10 percent profits to the Federal government. 5) Simple records of materials and sales shall be kept for a period of time from the time of filing, as follows: A) A single page for each item manufactured, showing materials used and approximate cost. A new entry shall be added each time that an increase in cost is recorded. Recorded cost shall not at any time exceed 50 percent of the selling price. B) A ledger showing items sold, date, and amount of sale, cost, profit, and tax collected, and a simple receipt showing the same issued to the purchaser. The purchasers receipt will also show the license number. C) A copy of each return filed. D) Items A) and B) shall be kept for a period of 5 years, or 3 years beyond termination of license. Item C) shall be retained for a period of 3 years from date of filing. 6) Application for license shall be notarized and contain the name of the applicant and the physical address where industry is to occur. 7) States shall declare all income derived from such industry to be exempt from any further taxation at any level. The individual States shall cap the maximum income allowed under the act. A reasonable limit might be $20,000 in total sales, or $10,000 in before tax

PAGE 5

income. 8) Congress shall pass legislation recognizing the Cottage Industries Act, and relegate all revenues received from the individual States to the general fund. This same legislation shall declare the income derived under this act free from further federal taxes of any nature, and shall not be counted as income under any other Federal program.

PAGE 6

THE MARKET MARKET SEGMENT

The market segment covers the manufacturers of products from banana fibres. It mainly concentrate on the small scale industries , cottage industries, self-help groups. Because a wide range of products can be produced, it can enjoy good market in both rural and urban areas. Its a potential boost to the tourism sector and economy as a whole since many tourists like products from banana fibre. These products are mainly made from Art and Craft Centres, Recreation Centres and Tourist Camps.

PRODUCTS & SERVICES PRICING AND DISTRIBU TION

The pseudo stem of banana is extracted to get banana fibre. The banana fibres are dyed into many different colors.

The pseudo stems can be procured at Rs.25 per quintal.Production cost,including other expenditures like advertisements which costs 500 Kg of undyed banana fibre at Rs. 62/ Kg and 500 Kg of dyed banana fibre at Rs.66/ kg

MARKET TRENDS

There are availability of many fibres but banana fibres is one of it which is relatively low price when comparing with other fibres and can produce many products with this banana fibres with less cost.So it attracts many handicrafts manufacturers.

IMPLICATIONS OR RISK FAC TORS PLANNED RESPONS E

Implicating this industry in the society may cause risk factor like there would not be immediate response for this product in the society and there can be continuous supply of rawmaterials annually.

Identification of new products using banana fibres. Expansion of market globally.

PAGE 7

COMPETITION COMPETITORS AND TYPE OF COMPETIT ION COMPETITORS' STRENGTH S AND WEAKNES SES COMPETITIVE ADVANTA GE .

Our competitor s are other natural fibre extractors and the people who produce various products using various other fibres.

Our competitor strength is already they got succeeded in the market and supplying their fibres with the producers of natural fibres products.

We are providing good quality eco-friendly natural fibre at a low cost when comparing with other natural fibres.

PAGE 8

CUSTOMERS 1 2

NAME/ADDRESS AGS Apparels Tirupur SGM Selfhelp groups, Thudupathi, 3 Perundurai Marutham handloom industries, Erode ADDITIONAL INFORMATION

TERM S 30 30

PRODUCT/SERVICE Undyed banana fibre Dyed banana fibre

30

Dyed banana fibre

SUPPLIERS 1

NAME/ADDRESS Annur goundar thottam, Mettupalayam road, 2 Sathyamangalam SKS farms, Nasiyanur, 3 Erode Mr.Natraj Velu goundar thottam, Uthukuli

TERM S 30

PRODUCT/SERVICE Cutted banana trees

30

Cutted banana trees

30

Cutted banana trees

ADDITIONAL INFORMATION

ADVERTISING & PROMOTI ON

Initially it is distributed among self-help groups and word-of-mouth communication.

PAGE 9

PRICING & DISTRIBU TION

The pseudo stems can be procured at Rs.25 per quintal.Production cost,including other expenditures like advertisements which costs 500 Kg of undyed banana fibre at Rs. 62/ Kg and 500 Kg of dyed banana fibre at Rs.66/ kg

CUSTOMER SERVICE POLICY

The way you feel about our products is very important to us so that is why we have included information here for convenience about our products and services.

PAGE 10

LOCATION

Vijayamangalam,Perundurai,Erode. SIZE AND CAPACITY 400 sq.feet of building capacity ADVANTAGES OR DISADVANTAGES Vijayamangalam is a village which is famous for weaving. It is surrounded around villages so there is frequent supply of rawmaterials. LEASE OR OWNERSHIP DETAILS It is a partnership firm under the partnership Act of 1932.

EQUIPMENT, FURNITUR E& FIXTURES

2 banana fibre extraction machine. Knife , saw and other cutting equipments , Water tank(1500 liter capacity,500 liter capacity )

FUTURE EXPENDIT URES / TECHNOL OGY REQUIREM ENTS RESEARCH AND DEVELOP MENT ENVIRONMENTA L COMPLIAN CE

The extraction machine which costs nearly about 90000.

The company is also carrying out its R&D in the extraction of fibres from more different natural fibres.

It doesnot cause any environmental cause to the society since it is eco-friendly

PAGE 11

KEY EMPLOY EES 1 2 3 4

NAME OR TITLE (N OF POSITIONS) Supervisors Workers(5)

KEY RESPONSIBILITIES Supervision Production

QUALIFICATIONS -

ADDITIONAL INFORMATION

POLICIES & PROCEDURES HOURS OF OPERATIONS NUMBER OF EMPLOYEES VACATION PROGRAM PERFORMANCE ASSESSMENT TRAINING & DEVELOPME NT REMUNERATION AND BENEFITS They will be awarded with additional benefits like incentives if they engaged in additional production of the products. The performance of the workers are assessed on the basis of their production capacity. The training is given for self-help groups for the future enhancement of our business. 5 employees who evolved in production and 1 security men. We work 10 hours per day.

PAGE 12

ACTION PLAN

ACTION 1 2 Going to expand our in producing innovative products from banana fibre Want to expand the production capacity with Modernised equipments 3 4 5 6 7

BY WHEN By next year Within 2 years

ADDITIONAL INFORMATION

PAGE 13

OBJECTIVES / DESCRIPTI ON OF THE PROJECT

Banana fibre was a chance discovery which led to the usage of Vazhai Naaru. Raw fibre is cleaned by artisans through a simple bleaching method. Its fat content is then removed. Each strand of the fibre is taken out and woven into fabrics after being dyed in various colours. Banana fibre has an affinity to colours that makes it easier to weave attractive designs from it. The process maybe cumbersome but the six yard wonders fabricated from this fibre is very comfortable and in much demand.

BUSINESS HISTORY / NATURE OF OPERATIO NS PRODUCTS AND SERVICES

As we all living in a competitive world, new inventions and creation are arising day by day but still all these developments concern to certain sector of the people. Due to the increases of Chemical Industries and Multi National Companies, our own traditional industries are fading.

The pseudo stems can be procured at Rs.25 per quintal.Production cost,including other expenditures like advertisements which costs 500 Kg of undyed banana fibre at Rs. 62/ Kg and 500 Kg of dyed banana fibre at Rs.66/ kg

PROJECT FINANCIN G

The project financing is done by all our partners itself which we contribute equally.

MANAGEMENT / ADVISORS

Director 1 C.Prabhu(Managing Director)

Director 2 K.Prabhakaran

RISK ASSESSME NT & CONTINGE NCY PLAN

Since it is new innovative product emerging into the industry there may be risk in case of acceptance of the product in the industry.

PAGE 14

FINANCIAL INSTITU TION SUPPORTING DOCUM ENTS

Financial institution which involved in financial assistance of our business is North Eastern Development Finance Corporation Limited (NEDFi)

The supporting documents for the financial assistance for our business is our land document.

PAGE 15

APPENDIX FINANCIAL PLAN

PAGE 16