Operational Plan

Setting Up Business in Bangladesh

Company Incorporation
“Domon” will be incorporated as a private limited company in Bangladesh. So, the liability of the
business will remain limited to the shared capital of the owners or shareholders. The steps of company
incorporation will start with getting a clearance for the name “Domon” from The Registrar of Joint Stock
Companies and Firms (RJSC). The probability of getting an approval for our name is high since at present
there isn’t any such companies operating with the same name in Bangladesh. With the completion of this
step, it will be required to draft Article of Association (AoA) and Memorandum of Association (MoA).
These documents will be drafted along with other necessary forms as required for compliance to RJSC.
The next step for company incorporation is to open a bank account in the name “Domon”. Finally, the
company will be registered with the submission of all the required documents to RJSC and with the
payment of registration fees. “Domon” will be provided with certificate of incorporation. However, for
post-registration compliance, the company will need to have some further registrations and licenses
namely Trade License, Tax Identification Number (TIN), VAT Registration Certificate and Fire
Certificate. The total process of company incorporation is estimated to be completed within 60 days.
Procurement of Raw Materials
Necessary raw materials for production of “Domon” products are vinegar, baking soda and packaging
materials. The raw materials are available at affordable rates in Bangladesh. Many suppliers are providing
such chemical ingredients in Bangladesh to various businesses. So, there won’t be any difficulty in
procuring the raw materials for “Domon”
Manufacturing
The machines for producing sachets generally have production capacity of 400,000 units annually.
Aligning with our marketing strategies and projected number of target group units to be reached,
production targets will be set. The projected target market units to be reached in the first three years are as
follows:
YEAR 1 YEAR 2 YEAR 3
Number of textiles and garment 300 600 900
factories
Number of slum households 50,000 75,000 150,000
Number of urban households 35,000 42,500 50,000
Table 1: Projected Number of Target Market Units to Be Reached in 3 Years

Distribution Channels

Business Location
The manufacturing and packaging plant will be established at Gazipur in Dhaka. The warehouse will be at
the same facility. From the warehouse, products will be distributed across the retailer channels and other
channels. There will be no physical shop for the “Domon” brand of products.
Partnerships and Collaborations
Accord Bangladesh closed in the gap between brands and trade unions to work towards a safe and healthy
garment and textile industry in Bangladesh. After ending its operations in Bangladesh, its roles and
activities have been taken up RMG Sustainability Council. It is a national initiative to sustain workplace
safety in Bangladesh. The council brings together the safety concerns from international brands, garment
manufacturers and trade unions. RMG Sustainability Council conducts fire, electrical, structural and
boiler safety inspections. It also conducts safety training in the RMG factories. At present it has
envisioned to cover all RMG exporting garment factories in Bangladesh. It aspires to also encompass
industrial relations, skills development, business sustainability and environmental standards. Our
collaboration with RMG Sustainability Council will help both parties to achieve our individual goals. The
council will be able to train the factory employees about the usage and necessity of fire extinguisher
products including our sachets. This will promote workplace safety in the factories. At the same time, this
will help us to let more of our target group know about our product and its ease of use.

Setting Up Business in India

Having completed a business span of three years in Bangladesh, “Domon” will expand its business to
India from the fourth year of its operations. This will give the company enough time to generate a decent
revenue stream from Bangladesh and expand its operations. The strategy for expanding business
operations to India is based on the needs analysis of the fire safety equipment in India.

Legal System and Policies

India follows the common law system and the legislative powers are divided between the central and state
legislatures. FDI into India is divided into two broad categories:

 Investments under the automatic route (investments that don’t require prior government
permission)
 Investments under the approval route (investments that require prior governmental approval)
For chemicals and chemical products like our fire extinguisher sachets, the sectoral cap for FDI is 100%.
It means that the whole of such business can be owned by any individual or corporation from outside
India. For any corporation registered in Bangladesh, it is not required to get prior approval of the Reserve
Bank of India for setting up a business in India through FDI. However, for a corporation registered in
Bangladesh, it is required to get permission from respective administrative ministry or department to
setup a business unit in India through FDI.

Entry Strategy
In case of “Domon”, the entry strategy in India will be FDI to have a wholly owned subsidiary. India is
the sixth largest producer of chemicals in the world. Commonly used chemicals are available to the
suppliers and can be purchased at affordable rates. So, risk of procuring raw materials is very low in
India. The type of product is also novel in India. There are fire extinguisher brands that sell sophisticated
fire-fighting equipment. There aren’t any brands that solely target the slum areas, small to medium
factories and compact household societies. So, possibilities for a successful joint venture are very low.
Also, by setting up a branch office and relying on exports from Bangladesh to India may not cause the
“Domon” brand to be noticeable in the market. Since the product is novel, properly planned marketing
strategies are required to make our target customers aware of the potentialities and importance of our
products. By setting up a branch office, the company will not be able to carry out any retail and
commerce activities in India as per policies, rather it will have to depend on agents. So, this strategy
might not work well for “Domon”. Using the proper channels for marketing and distribution, it is possible
to enter the market as a wholly owned subsidiary and start to generate decent amount of revenue as per
target.
Since the fire accidents are very high in Delhi, the business will be setup to serve potential target
customers in Delhi. Later on, it will be expanded to other cities and states in India.
Company Incorporation
The company will be incorporated as a private limited company under the Companies Act 2013 in India.
The registration of the company will be done with the Registrar of Companies (ROC) of the state.
Necessary documents are permanent account number pertinent to taxation, digital signatures of the top
management and directors, and director identification numbers. Next, an application will be sent to ROC
for the approval of the name of the company.
Completing the steps, the shareholders of the company will prepare Memorandum of Association (MoA)
and Articles of Association (AoA) and submit to the ROC. Then the company will obtain an
incorporation certificate. Next, it will acquire a permanent account number (PAN) and a Tax Account
Number (TAN).
Procurement of Raw Materials
Being the sixth largest producer of chemicals, India has wide availability of vinegar and baking soda from
a number of suppliers. Raw materials will be procured from suppliers, manufactured to extinguishers and
packaged in sachets in the facility of “Domon”.
Manufacturing
The machines for producing sachets will have a production capacity of 400,000 units annually. Aligning
with our marketing strategies and projected number of target group units to be reached, production targets
will be set. The projected target market units to be reached in the first two years are as follows:
YEAR 1 YEAR 2
Number of textiles and garment factories 500 800
Number of slum households 60,000 85,000
Number of urban households 45,000 67,500
Table 2: Projected Number of Target Market Units to Be Reached in 2 Years in India

Distribution Channels

Business Location
The business will primarily be operated in Delhi. The manufacturing and packaging facility will be
established in Delhi. The warehousing facility will also be in the same facility.
Partnerships and Collaborations
 Firesafe India Foundation is a non-profit organization is an advocacy group built on a
commitment to spread knowledge and create awareness about fire prevention and fire protection
in India. It strives to build a fire safe environment. It holds fire exhibitions and drills to educate
the common people. Collaboration with Firesafe India Foundation will help us to spread
awareness of our products and their usage. At the same time, it will allow Firesafe India
Foundation to educate the people about safeguarding their lives using low-cost fire-fighting
equipment.
 An initiative of WHAM that works across India, Fire Angels is a team of young, encouraging and
brave mankind for the awareness of a fire safe India through education, skill development and
interventions. Collaborating with Fire Angels will help both of the entities to achieve their
individual goals.
Future Expansion Strategies
Having business operations in both Bangladesh and India for a number of years will help “Domon” to be
a popular brand for fire safety. This will pave the way for the company to sell its products to other global
channels through e-commerce platforms like Alibaba.
For further expansion of operations, Sri Lanka is a well-suited option for “Domon”. The country faces a
lot a fire-accidents in compact low to medium-income livelihoods and factories. Because of the
effectiveness and low price of “Domon” product, it can be an ideal solution for the inhabitants there to
safeguard their lives and valuables from any future fire incident.

https://uk.practicallaw.thomsonreuters.com/4-500-8980?
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https://www.investindia.gov.in/