GRAY FABRIC INDENTING

Executive Summary
Mainly the report is about a services based business of “Gray Fabric Indenting.” First of all we have given
a project proposal in which we elaborated that this business do not require the much amount of money
rather than the personal skill. After this we have discussed about the location factor that why we have
chosen that specific location in the yarn market of Faisal Abad. The next main point was about the reasons
for which this kind of business came into existence and the main reason for starting this business was to
save the time of exporter and the manufacturer of the Gray Fabric
After the consideration of the location factor the feasibility report is there in which the main focus is on all
those things that are required to establish the business set up. Name of some important equipments,
needed for the business, are furniture, laptop, computer, printer, fax machine etc. The approximate
budget, which is the very next phase after feasibility report, provides the projected expenses regarding the
salaries to staff members, traveling, stationary and utility bills.
Business background in the next segment provides the information about the reasons for establishing this
kind of business. Under the head of services we have provided the information regarding those key
services, which our firm will execute in the normal operations. In the next the report deals with a very
brief detail of the market, competitors and the segmentation. The comparative advantage deals with those
strategies that we will adopt for running the business in the market. In the segment of operations we see
the main points about where the finance will be generated, what will be general management and what is
the cost benefit analysis. After this a chart elaborates the company’s hierarchy. At the end of report we
have given the references of those firms where we have collected the information.

PROJECT PROPOSAL

In this fast growing world, business has become a very dynamic field. We have to look various factors
while choosing a specific field in business. Without considering the market conditions, competitor’s
analysis, government policies and the economic and political conditions we can’t lay down the foundation
of a successful business. The reason is that today we are competing against all the companies of the world
due to the implementation of the WTO. Now the concept of war has been changed from the battlefield to
the field of business and the economic growth.
Today businessmen are confronted with the problem of generating the finance for establishing the
business. Usually this problem arises for the small entrepreneurs. But our report elaborates such kind of
business, which does not require too much finance rather than communication skill and public relations.
During the internship period we thought about this idea of “Gray Fabric Indenting”.

We have chosen the location for our business office in the Yarn Market, Montgomery
Bazar, Ghanta Ghar, Faisal Abad. The reasons for choosing this area are

 Nearly all the textile-marketing offices are there.

 This area is basically a plate form for the buyer and seller of the every type of clothe
  This market is considered as the biggest Asian yarn market

Introduction

Indenting is the business which used to saved time of the exporter when an exporter and he does not have
enough time to go in the market for the research of that specific cloth order, then the exporter contact
with the indenter to manage the cloth, then the duty of indenter start and he search the cloth from the
market and get delivered the cloth to exporter and he charge the commission  Rs.50 to Rs.2 meter. This
type of business is called Gray Fabric Indenting.

Business Background

Due to the rising needs of the exporters a need of indenter was realized. Sometimes the exporters do not
have the enough time to contact with the manufacturers of the Gray Fabric. That’s why to bring together
the exporter and the manufacturer with in very less time an intermediate party (indenter) came into
existence, which has the contact not only with the exporters but also with the manufacturer of the Fabric

Feasibility Report
Indenting business started approximately with the finance of rupees
 Office Security 200,000 Rs.
 Computer P4 17500 Rs.
 Laptop 17000 Rs.
 Printer 9000 Rs.
 Fax Machine 20000 Rs.
 Tele Phone Set 700 Rs.
 Mobile Phone Set 10000 Rs.
 Furniture office 60000 Rs.
 Stationery 2000 Rs.
 Eclectic Fan 1400 Rs.
 Exhaust 1900 Rs.
 A/C 23000 Rs.
 Registration exp. 20000 Rs.
 Reserve Fund 400000 Rs.
(4 month)
 Motor Bike 54000 Rs.
 Pick glasses (3)* 3000 Rs.
* Pick glasses are used to count the number of warp and weft per inch
Approximate Budget
The approximately budget for the purpose of keeping reserve that is under
 Salary Marketing Manger Rs 25,000
 Salary Inspector 15,000
 Field Boy (2) 20,000
 Office Boy 5,000
 Telephone Bill 8,000
 Electricity Charges 5,000
 Traveling + Fuel 7,000
 Stationery 1,500
 Internet 1,500
 Courier 5,000
 Water 1,000
 Office rent 3,000
 Depreciation* 1,000
 Miscellaneous 2,000
* Depreciation is charged by fixed method 5 % per annum.
General Management
We use the simple structure

 Free flow of communication

 Decentralization
 Informal reporting system
 Task specialization is there
 Informal relationship
 Owner and manager is same

Comparative Advantage
To get the above average return it is compulsory for a firm to get the competitive advantage over its
business rivals.
Our competitive advantage over our competitors will be

 On time delivery
 Our inspection services
 After sales services

ON TIME DELIVERY

We will deliver the gray fabric on the right time and at the right place to the exporter it will help us a lot to
get an edge over our business rivals.
OUR INSPECTION SERVICES.
We will inspect and make surprise visits in the weaving factory where the production will be in the
process, by doing that practice the producer will do his work efficiently and will complete the project at
the right time and it will reduce the chances of the rejection of gray fabric.
AFTER SALE SERVICES
After the delivery of fabric to the buyer party we will pay the immediate payment to the seller by collecting
the cash payments from the buyer and will not make delay in that process. And if the fabric provided by
the seller is rejected due to any reason then we will compensate the buyers.

Operation
Buying
 We will buy the gray fabric from weaver on the behalf of the exporter.
Stock Control
There will be no stock control and no storage cost because we will directly collect the fabric from the
weaver and deliver the fabric on the place asked by the exporter.
Financing Activities
If the market interest rate is low then we prefer the financing, but in this business we invest our own
capital.
Promotion
We will promote our business by making the personal meetings with our customers.
It will help a lot in the promotion of our firm and it will help us to deliver our views in an efficient way to
our customers.
Licensing or NOC
No need of licensing or NOC. You can start the indenting business without permission at any place
in Pakistan. But you have to register the firm. And you can start the business after getting the registration.
Market
Mainly focus is on the exporters. Because we have the mainly concern with the exporters and we have a
strong focus on the exporters because that community provides us the business and they can flourish our
business.

Competitors
 Hamad Textile
 Arva Textile
 Rehmat Textile
 A.N Textile Solutions
 Zahid Gi Textile
 Tanveer Traders
 

Segmentation
As the textile sector is very much broad and it would be very difficult to have the hold on the whole
sector. So our specialty would be in gray fabric.
Gray Fabric
Interlacement of warp and weft yarn

Warp
The length wise yarn used in weaving is called warp
weft
The width wise yarn used in weaving is called weft

Services
Our business is related to services.
Followings are the main key services provided by our firm to the different parties

 Searching Fabric on the behalf of the party

  Cash Delivery
 Problem Resolving
 Sampling
 Provide Information
 Provide the Looms to Exporter at Conversion

SEARCHING FABRIC ON THE BEHALF OF THE PARTY.

That’s our main responsibility to arrange the fabric for the buyer party from the seller party.

CASH DELIVERY

It is our duty to take the thecash from buyer party and give it to the seller because the seller sells the fabric
on our behalf. So , it is our responsibility to provide the cash to the seller.

PROBLEM RESOLVING

If any problem occurs it will be our responsibility to solve that problem . if the buyer party reject the fabric
due to any fault it will be our duty to make that transaction happen
And to satisfy the buyer.

SAMPLING

The other service we have provide is to send the sample of the fabric to the buyer party and if someone
need the fabric of specific type then we have to provide the full information to the producer.
Warp count * weft count, No. Of warp/inch , No. Of weft / inch, width of fabric

PROVIDE INFORMATION

If any party require any type of information then we have to provide that party he whole information after
consulting it from the concerned party. Such as if any exporter demand the rate of the specific quality
fabric then we have to provide him the total rate list of the fabric weaved on the different looms.
PROVIDE THE LOOMS TO EXPORTER AT CONVERSION.
If the quality demanded by the exporter is not available in the market then we have to arrange the looms
for him at conversion in which the exporter provides the yarn and we have to look after the production
process.
COST BENIFIT ANALYSIS
The total amount to established that business is Rs.839500 while in that amount Rs. 400000 is the
reserve fund, which is the liability of the business. Which will be returned to the businessman. And the
per month expenses are Rs.100000.
If the average commission charged by us is Rs. 1 then we can achieve the breakeven point by doing the
business of 1935715-meter fabric. If we do the business of 25000-meter fabric in 1 st month and forecast to
make the growth of the business by 25000 meter per month and it will lead to a 5 % increase in the
variable expense.
Break-Even Analysis.
We achieve the break-even point by doing the business of 1935715 meters fabric in one year.
Break-even point:
Quantity = variable expenses + fixed expenses + Profit
1Q = .37Q + 1219500 + 0
1Q- .37Q = 1219500
.63Q = 1219500
Q = 1219500 / .63
Q = 1935715
Breakeven Analysis
The breakeven point is where the total revenue is equal to total expense and here profit is always zero

Sales = variable expense +

fix expense + profit
BALANCE
SHEET
FIVE STAR TEXTILE SOLUTIONS
BALANCE SHEET
FOR THE YEAR ENDED 31
DEC.2006
ASSETS
FIX ASSETS
OFFICE SECURITY 200,000
COMPUTER 17,500
LABTOP 17,000
PRINTER Fix expensive 9,000
FAX MACHINE 20,000
TELEPHONE SET 700
MOBILE 10,000
1935715 m
FURNITURE 60,000
Sale Volume
STATIONARY 2,000
FAN 1,400
EXHAUST FAN 1,900
MOTOR BIKE 54,000
PICK GLASSES 3,000
A.C 23,000
REGISTRATION 20,000
TOTAL FIXED ASSETS 439,500
CURRENT ASSETS
CASH 400,000
A/R 0
TOTAL ASSETS 839,500

LIABILITIES + O .E
OWNER EQUITY 439500
LIABILITIES 400,000
 TOTAL LIABILITIES 839500

Conclusion
The business of indenting made its scope when the number o exporter increasing. As the textile industry
is contributing a lot in the exports of the  Pakistan. so that business is emerging as fast growing business .
That’s the business which does not require the so much finance it just require your knowledge about the
industry and your repute in that industry. That’s the business through which you can earn the huge profits
by investing very less finance. Indenting is a business in which the indenter can establish the long term
relation ships with the exporters and the gray fabric producer which will help him through out his
business time period. That’s the business about which a lay man does not has much knowledge through
this report every person can easily under stand the indenting business.