Submission Date: 30/01/2015

Submission Time: 10:00 AM

Entrepreneurship
Project Report On
A K Garments

Submitted to
Dr. P Ram Lal
Assistant Professor
School of Management.
NIT Warangal,

Submitted by
C J Arjun (138913)
K. Rahul Muraledhar (138927)
Thanzeel P Muhammed (138949)
V Rama Krishna (138950)

Introduction:
AK Garments was founded in 2010 by Anil Kumar. The company is located in the
industrial hub of Warangal. The motive behind Anil Kumar to start up the venture was the
family Textile business which his previous generations was handling. Anil Kumar started his
career with a Textile Retail out let in Warangal. Initially he did the marketing related aspects
of the firm. Later he analysed the the potential for the manufacture of textile products by
starting up a new company. This is now he came in to picture as an Entrepreneur. The
Strategy that he applied is back ward integration.

Executive Summary
1. Business Definition: AK Garments is an organisation which manufacturers Shirts and
Trousers for Men. The Business comes under the apparel segment in the market. The
design and manufacturing of the products are the key activities of the company.
2. Idea Generation: The main motive to start the venture was Anil Kumars family
background. His grand father is one of the first generation textile retailer in Warangal
from 1955. Later Anils father distribution and marketing for textile products in
Warangal district.Anil was an active member in his fathers team. Later he himself
stated the AK Garments company.
3. Target Market:The target customer of the AK Garments comes under the age group
of 10 Years to 50 Years. The Company markets its products through our A and B
grade cities of Andhra Pradesh and Telangana. The company mainly manufactures
Mens casual wear. Although it is also having Formal Segment also
4. Key Marketing Strategy: The Marketing Strategy used by AK Garments is
Concentrated Marketing through Market Expansion with Growth in sales with the
introductions of new designs and updated versions of the existing product
5. Goals :
To create and maintain number one brand in South India by 2018
To Create employment opportunity
6. Ownership: AK Garments is owned by Managing Director Anil Kumar. He is having
one sleeping partner K Siva Prasad.
7. Brand: The company is selling products under the name of Liquids.
8. Franchising Request: Currently the firm is not encouraging any franchisees
9. Use of Funds and Exit Strategy: The Company was started with initial capital of 15
Lakhs. The number of total employees at the beginning was 12. The funds were used
mainly for purchasing of Machines and Equipments as well as building and
supporting facilities.

Company Description
1. Industry: AK Garments comes under small scale industries, Textile and Apparel.
2. Type of the firm: The firm mainly does manufacturing of casual and formal cloths
for men.
3. Strategic Advantage: Absence of the strong local competitor is the main advantage.
The company is located in the industrial hub which provides Tax and Power benefits.
4. Organisational Structure:

5. Ownership Structure: The company started with the capital having composition of
10 Lakhs by Anil Kumar and Remaining 5 Lakhs by K Siva Prasad. Currently Anil
Kumar holds 70% of the capital and the remaining 30% by K Siva Prasad.

Industry analysis
1. Trends: The industry products varies based on the market conditions as well as
seasonal changes. Lot of Big players are in the market in which a very few is
domestic. The industry in an overall is showing positive trend.

Target Market
1. Size :The target market consists of States of Andhra Pradesh and Telangana. The
apparel and fashion out lets of A& B Grade cities are supplied with the products of
the company.
2. Trends: The percentage of the youth customers are increasing accordingly. The
customers are becoming more fashionable which boost the sales of the company.
Environmental Analysis
1. SWOT Analysis
Strength: Specified target market, Skilled employees, Work Culture, Qaulity product
at relatively low price, Few domestic competition in the state from manufacturing
point.
Weakness: Lack of Domestic suppliers in the State, Under rated image in customers
point
Opportunity: Expansion of product category into female and kids wear, Exporting
activity, Market capture in other states of India, E Business
Threats:Increased usage of T Shirts, Supplier bargaining power increases the
production cost
Competitive Analysis
1. Key Competitors:The domestic competitors in the Sates of Andhra Pradesh and
Telangana mainly Slapes and Rock Star and few local brands. Some of the cheap
global players like People, Twills and Kumar shirts are also the main players.
2. Competitive Advantage:Quality product at relatively low prise, Better Market
forecasting for trend and matching demand and supply.
3. Tactics and Support Strategy: Bench marking, introduction of updated products
with new design.

Market Analysis
1. Segmentation: Gender ( Male), Age group 12 years to 50 Years.

2. Geographic Scope: Metro city Hyderabad, A grade and B Grade cities of Andhra
Pradesh and Telangna.
3. Customer Profile: Mainly youth customers who loves fashionable products.
Marketing Products and Services
1. Products and Services to be sold: Mens Wear shirts and Jeans
2. Customers need to meet: Attracting products with better colours and latest designs
3. Features and Benefits: Affordable price, High quality, Durability and reliability
4. Product life cycle stage: Product life cycle is in growth stage.
Marketing and Pricing Strategy
1. Strategy: Providing products to the customers through retail outlets
2. Structure: Manufacturer - Retailer - Customer
3. Profit Margins: Profit margin is mainly based on product. Any how at an average it
comes around 40%.
4. Marketing and Promotion: mainly following and focussing of word of mouth
publicity. Currently there is no means of advertisement and any paid form of
communication.
5. Marketing Team:Consists of a Team of 5 members who analyse the market and do
order management and Sales.
6. Pricing: the price range is 695-995/- they are using price skimming strategy to attract
customers.

Human Resource Strategy

1. Recruitment and Selection: The employees are hired according to the role and
experience. Mainly the local employees are preferred.
2. Training and Selection: The training for the employees are done by experts through
Government Training Institute ALIP
3. Salary and Benefits: Based on role and experience the salary varies from 10,000 to
35,000 Indian Rupees per month. The employees are provided one month Bonus
salary with leave allowance. The organization is encouraging flexible working hours.
The working environment is friendly and entertaining.

Financial Aspects
1. Anil started his business with total amount of 15 lacks rupees now and now it reached
total turnover of 8 corer rupees.
2. Investment sources 70% from Anil, 30% From co-owner Siva Prasad.
3. Total Return on Investment is 15 to 40%
Production Aspects: The production work started from designing and end with the
packaging. They are following order to make concept. The total production for day is
600 to 700 shirts per day and 15000 to 17000 shirts per a month.
1. Designing and cutting: in this department they are having the team of 8 members
they will do designing for the now models and they will cut the cloth into small pieces
as per measurement.

2. Stitching: They are having the total 120 high speed electronic stitching machines and
team of 130. Here they will stitch the cloths.

3. Fitting: This team consist of total 20 employee. This team will do hand works like
buttons fitting, label attaching.

4. Ironing: They having total of 6 ironing machines, after finishing the fitting ironing
team will iron the shirts.

5. Packaging: After finishing the ironing they will fold the cloths they will attach the
price tags and they will pack the cloths they are having the total two types of packing
like box packing and the cover packing.

Major Constraints and Challenges

1. In this business the main challenges faced by Mr.Anil kumar was getting the
trustworthy suppliers and expertise employee.

2. This business itself trend based business where customer preferences will change
frequently. We have to adopt new designs and trendy colours. For this he frequently
he will visit the showrooms of the metro cities and he will understand what designs
they are going to launch
3. Frequent power cuttings; to overcome this they purchased new power generator
4. Funding problems
5. Here getting the new customer is very difficult. To over com this they used to give
free sample kits to the shops.
Risks:The risks involved in the business are
stock clearing, to minimise this they started a counter sale with offers like 1+1 and 3
pieces per 1000rs
High amount of scrap, while cutting the cloths there are getting the wastage. This
waste they are selling for local waste recyclers.
Achievements:
In 2010 they got the Andhra pradesh government best small scale industry award
Reaching 8 crore rupees turnover within 5 years
Expansion plans

They are planning to enter in to other sections like T-shirts, kids wear and women
wear in the next few years
They are planning to start their own retail outlet in the Warangal within two years
In this year they are increasing the production capacity by increasing the stitching
machines to 300 and employee to 500

Conclusion:
The entrepreneurship project was done from AK garments which was started
by Anil kumar. All the aspects was studied in the project.