Business Plan

Company Name: Mirror

Brand Name: Godhadis

Project By: Antara Khavale

2nd Semester

MBA Fashion Management & Marketing

Guided By : Ezra B
 Contents

1) Executive Summary:
a. Introduction / Overview of Business
i. Company Profile : Organizational Structure
ii. Company Management: Ownership and Format of Business
iii. Products and Services
iv. Market Analysis
b. Mission and Vision Statements
c. Keys to Success / Objectives
d. Financial Requirements
2) Market Research & Analysis:
a. Market Segmentation, Targeting and Positioning
b. Competitor Analysis
c. Competitive Advantages
d. Long – term Opportunities
3) Products and Services:
a. Product Mix : Line and Width
b. Services
c. Customer – product compatibility/suitability
d. Customer Relationship Management
4) Business Strategy:
a. Business Model
b. List of Suppliers
c. Distribution / Logistics
d. Advertisements and Promotion
5) Operations Management:
a. Flow of Operations
b. Number of Machines
c. Number of Employees
d. Any other Equipment
6) Financial Management:
a. Cash Flow Statement
b. Sales forecasting
c. Profit and Income Statement
d. Break Even Analysis
7) Expansion Plans:
8) Conclusion

1) Executive Summary:
a. Introduction
What is business?

An organisation is a system where goods and services are exchanged for one another or for
money.

Every business requires some sort of investment and enough customers to whom its output
can be sold on consistent basis in order to make profit.

Godhadis

Godhadis are quilts of Maharashtra. Traditionally, patches of old cotton saris, shirts, bed
linens were patched together to make interesting patterns. Godhadis are made up of minimum
two and maximum six layers of fabric. They are joined together with running stitch. Pattern
or design of godhadi differs in different parts of Now-a-days for kids different types of
geometric motifs of duck, fish, and cartoons are made on godhadi.

Godhadi’s from different regions of Maharashtra

Village near Akkalkot Gadinglaj near Kolhapur

 Ratnagiri Ratnagiri

Gadinglaj near Kolhapur Ratnagiri: Made for kids

Kala Ghoda Festival

Kala Ghoda Association, was formed with the object of maintaining and preserving the
heritage art district of South Mumbai. Every year , since 1999 the association hosts the Kala
Ghoda Arts Festival, the country's largest multicultural festival, on the street of south
Mumbai created to draw attention to this unique and beautiful area. Now in its 14th edition,
the Festival draws visitors in the thousands, not just from the city but from all over the
country, and, indeed, the world. Kala ghoda art festival gives platform for artists, designers to
exibit and sale their products
Itokri
Itokri is a ecommerce site which acts as a platform for different indian design, art and craft
brands.

i. Company profile
a) Company:

Mirror
Mirror is a social enterprise which operates independently. We focus on women
empowerment of rural areas in Ratnagiri, Maharashtra, with the goal to improve their
life and making them independent. Mirror reaches people through the brand
‘GODHADIS’, which believes in sustainable fashion. We believe in growing together
with our valuable employees. Mirror is a profit based organization with social
objectives. We believe in enhancing livelihood of people who work with us. We aim
to empower women from rural costal Maharashtra giving them opportunity to use
their skills and art of appliqué and quilt making to manufacture contemporary
products for our brand ‘GODHADIS’.

b) Our Brand:

GODHADIS
 Revive classic with love

Godhadis is a premium brand which combines age old tradition and contemporary fashion.
Godhadis is dedicated to please its customer by giving new life to classic Quilt of
Maharashtra known as godhadi, a new life in the form of youthful, contemporary products.
We try to satisfy our customer with our unique bold designs. Quality is one of our prime
objective. Godhadis reaches its customer through ecommerce site, itokri. we also participate
in Kala ghoda festival in Mumbai. Godhadis emphasizes on multiple use products. Mostly
used by women. We promote our brand and products through social media like facebook
,Twitter ,Instagram. Godhadis also has its own blog for the convenience of our consumer.

c) Organization Structure
 Owner

Assistant

Out house Inhouse

IT Manager
Production Production

Supervisors Designer

Pattern
master

Labour

Store Keeper

Job position Job Description No. of posts

Assistant Assisting in all 01

areas

IT Manager Marketing 01

Designer Designing- 01
merchandising

Pattern Master Pattern making 01

Supervisor Unit supervisor 03

Labour Stitching, packing 11

& maintenance

Mirror is family of 18 people working with support of each other. Everyone handles
different posts in best way possible. As a company produces hand stitched product lot
of labor is required. So most of the hand stitched raw material is out jobbed from a
bachat gat (Group of rural women working together to earn ) .The bachat gat is paid
 as for per piece. Three of our supervisors work at bachat gat to follow the progress
and help wherever necessary. According to the skills acquired job is delegated among
the labor and also paid accordingly. Labor reports to supervisor. Supervisor is link
between assistant and labor. Supervisor also directs labor. Mirror works in harmony,
supporting and directing each other. The job work is collected and bought to the
stitching unit, where a team stitches the quilt patterns into products .We also have
inhouse team of 5 employees for manufacturing products for kala ghoda festival and
also for design development.

ii. Company Management

a) Ownership

Mirror is sole proprietorship formally based in Ratnagiri. Company is owned and

managed by Miss Antara Khavale. Owner has all decision making rights regarding
company and brand. She carries many tasks to juggle. Planning, Accounting ,
Marketing , Production and other tasks are taken care by the owner .She directs and
motivates all employees, allots them a proper tasks according to their skills .Being
owner she has broad and diverse tasks and responsibility to perform that are essential
for directing and managing Mirror and Godhadis. It is owner’s duty to hire staff and
arrange finances. Roles and responsibilities will be changing as company grows.
Antara being graduated in in Textiles and Apparel designing has knowledge about
trends ,colours ,fashion .She will be also working as one of the designer for Godhadis.
Being a MBA in Fashion Management and Marketing will help her in Managing
brand as well as company.

b) Business Format

As Mirror is sole proprietorship, Antara (Owner) is responsible for the company and
Godhadis. She will manage and control Mirror. She is also responsible for all the
debts. Mirror will be manufacturing products made up of quilts(Godhadi) giving
 employment to rural sector of costal Maharashtra. We believe sustainable fashion so
5percent -10 percent of fabrics would be bought from the local tailors and boutiques.
Products will be sold through our brand Godhadis. At present, Mirror does not have a
Brick and Mortar model. We will be retailing through e-commerce sites and also at
Kala Ghoda festival.

iii. Products

Mirror sells a combination of unique products; which would be made from quilt of
Maharashtra (Godhadi) mostly having multiple use along with single use products
.Our product mix consists of accessories, home furnishing and apparel. But on itokri
at present we deliver women apparel and accessories while in Kala Ghoda we will be
showcasing multiple product mix for women, kids and me. We closely follow fashion
trends. Solely focusing on the prints, patterns, colours, trends and unique products is
our specialty. While products like yoga mat converting into bag, a back pack
converting into side bag, a laptop sleeve with a pocket which could also be used as
ethnic folder. Also with the apparels like reversible jackets, tube top which could also
be used as buff.

iv. Market Analysis

Everyone wants to be different, dress different and be unique. People go for bold
styles, unique patterns for their accessories and apparels. People like to have
traditional products but in contemporary look. To fulfill all the requirement of the
market we have our unique products. Maharashtrian quilt as described is made with
many patches and is mainly used as comforter. Godhadis will give entirely be
different product to the market. Having first entry benefit.

b. Mission, Vision and Values

Mirror strongly believes that there is a need of marketing quilt of Maharashtra

( Godhadi) in very unique way by manipulating its pattern and purpose. And thereby
 provide employment. We provide unique blend of craft with contemporary designs to
showcase unique high fashion products.

i. Mission

Our mission tells about our purpose as a company and we are dedicated towards it.
Our mission is to

• Give our customers products that will delight them.

• To generate employment for women in rural sector and empowering them.

• To support sustainable fashion.

ii. Vision

Our vision directs us to achieve quality growth. Our vision is

• To spread traditional quilts of Maharashtra in contemporary way.

• To raise standard of women working with us.

• To become social oriented company.

iii. Value

We value to encourage women to have better future. we ensure that we delight our
customer with our products. And make sure that they get great value for their money.
We are true to our commitment towards society, our customers, suppliers, and
business associates.

We share our mission and vision with our employees so that the company and
employees are working in same direction towards the growth of company. And they
equally feel responsible towards Mirror.

C. Keys to success

• Branding: Aggressive branding to introduce our brand. And frame our brand in a
way everyone wish to have in their closet.
 • Quality: Assuring best possible quality to satisfy our customer.

• Design: Interpreting heritage technique of quilt making into contemporary product.

And developing new designs with interesting colour combinations and patterns.

• Team work: Talent wins the game but team wins the championship. We believe in
team work and team spirit .It helps to create each other’s skills and have impressive
results.

• To achieve company objectives while accomplishing individual goals.

• Employees: Having dedicated and loyal employees.

i. Objectives

Mirror has some objective to accomplish

I. Our prime objective is to create an interest and market for quilts of

Maharashtra and products made from it.
II. Understand need of customer and satisfy them.
III. Cater innovative and unique products to markets.
IV. Mirror believes in sustainable fashion and aims to work for it.
V. Create employment to rural women and empower them.
VI. Mirror is keen to expand the business being social oriented company.
VII. Being practical thinker Mirror aims to gain higher profits by retaining its
employees.
VIII. Motivating employee to increase their productivity as it helps both the
company and individuals.

d. Financial Requirements

Mirror manufactures handmade quilts so most of the finances are diverted towards labour.
Mirror invests approx. 17,00,000 per annum for its primary(handmade quilts) labour. While
other investments are comparatively lower. We need initial investment of Rs.18, 00,000
where my own investment is going to be of Rs.1, 00,000 and Rs. 17, 00,000 is short term
unsecured loan. We estimated our sale to be 4588 units pa, costing Rs. 91, 15, 000 gaining net
profit of Rs. 42, 70, 877 pa. We would be able to repay our loan by end of march 2016. Large
amount of our sales takes place during month of feb, where we participate in Kala Ghoda
selling 1750 units. Our total expenditure for year 2016 is Rs. 91,75,000.

2 Market Research & Analysis

a Market Segmentation, Targeting & Positioning

i. Market segmentation
There are many segments which could be considered as market for Godhadis. Its necessary to
study all markets and then consider appropriate market to be targeted.

1) Gender:

The market is divided into smaller segments based on gender. Both men and women have
different interests and preferences.

Organizations need to have different marketing strategies for men which would obviously not
work in case of females. A woman would not purchase a product meant for males and vice a
versa

Understanding our product, mostly women will be our prime customer.

2) Age group:

There are different age groups which could be considered as market for Godhadis but we
figured out that people mostly from 20 to 30 years group would get more attracted towards
the product and tend to spend more on it. As the products are made up of quits and blend of
many colors mostly younger group and artistic and creative people would tend to get attracted
towards Godhadis.

14 years-20 years
20 years-30years
30 years -40 years
40 years-50 years
50 years -60 years

Different segments differentiated on basis of age group.

3) Income:

consumers divided into small segments as per their income. Individuals are classified into
segments according to their monthly earnings.

The three categories are:

High income Group
Mid Income Group
Low Income Group

ii. Market Targeting

Everyone wants to be different, dress different and be unique. People go for bold styles,
unique patterns for their accessories and apparels. People like to have traditional products but
in contemporary look. But then there is entirely different segment of people who would be
fashion leaders and would want to posses traditional products in contemporary look. So we
focus to cater that unique and bold segment of people who are willing to spend money for
handmade products. To understand our market segment let’s consider following aspects:

1) Demographics

As the company chooses to reach its customer by two different channels ( kala ghoda festival
and itokri .i.e. ecommerce site ) its product mix also differs for both the markets. All the
products of Godhadis are made up of quilts. Color and print differentiation, style
differentiation and product differentiation will change the demographics of the products.

 Age:
20 years -30 years this could stretch through design and product differentiation. Most
of the designs and products will be attracting younger crowd.
 Gender:
Through itokri, Godhadis for startup is just concentrating on products for women
.Later on planning to retail for Men and Kids. While in Kala Ghoda festival we will
be catering to Men, Women and Kids.
  Income:
Higher income group. People willingly spend on handmade products.
 Location:
Kala Ghoda festival is in Mumbai. While ecommerce site itokri retails throughout
India.
2) Psychographics

Lifestyle: People who tend to money for their luxury. Who live a high standard of lifestyle;
have great love and inclination toward art and designing.

Social: People who want to stand out of the crowd.

iii. Market Positioning

For Indian fashion lover , the Godhadis is exclusive brand catering unique high end products
made from quilts of Maharashtra unlike all other brands who sell quilted products because we
differentiate ourselves with good quality, unique designs and concepts catering to niche
market.

b. Competitor Analysis

In market, there are no direct competitors offering our unique products. But there are
organizations who do sell quilts and products made from quilts. Our close competitors could
be:

 Simply Kitsch: They provide sustainable fashion and lifestyle products. They
supply to various stores in India; mainly in Bangalore, Chennai; Mumbai. They offer
blend of various products like quilted purses, scarves, skirts, belts which show a
glimpse of Quilts (not Quilts of Maharashtra but similar to it.) Along with other
products like chanderi embroidered dupattas.
 Logo of simply Kitsch

Few products of simply Kitsch made up of quilt.

Quilt jacket Pallazo

Hand Bag Belt

 The initiative: A social entrepreneur Label based in Mumbai. They provide with
patchwork blankets, bed covers, bed spread, and curtains. Which are manufactured by
the unemployed women in Chembur. Products are mostly machine stitched and have
great colour combination and patterns.
 Logo

Products of the Initiative

Bedsheets

Comforters

c. Competitor Advantages
 Till date, our primary competitive advantage is the absence of any brand like us. That
is there in no one who has taken initiative to promote quilts of Maharashtra via
different product as well as availability of semi skilled labour at comparatively lesser
cost. And we will be also providing sustainable fashion. In addition, company owner,
Antara Khavale, has pursued graduation in textiles and apparel designing and post
graduated in MBA specializing in Fashion management and marketing which would
benefit in innovating new designs, understanding the market demand, design
aesthetics. She understands the fashion industry and knows how to spot the latest
trends.

While there is no guarantee that a competitor would not enter this segment of the
market, But we have no doubt in our quality products and we are keen on expanding
our product category and market.

Also, we would be the only niche fashion product provider catering to this kind of flea
markets and exhibitions with this kind of unique products. While other stores offer
some style equivalents, they are not focused solely on Quilt products as well as
multiple use products. We are, and therefore, have a distinct competitive advantage in
our niche.

Our exclusive product offerings will prevent future competitors from entering the
market as a competitor. Also, it takes time to build a business format including rural
women empowerment and catering products using traditional technique yet having a
modern edge , and by the time a competitor attempts to compete with us directly, we
will have already established a strong customer base.

d. Long term opportunities

As company grows and earns a positive reputation, several opportunities will open to us. In 5
to 10 years we aim to expand our business. And we are considering some options already like
reaching more locations through exhibition or setting up exclusive store in metro city like
Mumbai. Also may be like having exclusive exhibitions for Godhadis. We may also consider
exporting our unique products. Within five years, we will assess the potential for setting our
store. We also plan to increase our product line. As in now for ecommerce we are just
catering women but in later stages we plan to cater both men and kids.

As we are planning to increase our sale we would also increase our production capacity. We
would be able to employ more people and help as many as possible women to empower. As
in now most of the machines used are not fully automated for bulk orders but as we grow we
would go for automatic and hi-tech machines.
 3. Products and Services

a. Product mix

Godhadis product mix includes apparel and accessories. All the products are related to each
other through quilt .Base material used for the products is quilt. We closely follow general
fashion trends .Solely focusing on the prints, patterns, colours and trends. As we are just
starting up we prefer to keep narrow product mix. But as we grow we might also think about
home furnishing.

Godharis

Apparel Accessories

Reversible Laptop sleeves-

Jacket Ethnic Folder

Yoga Mat

i. . Product length

For start up we prefer to keep smaller product length with time we will keep on adding few
more products. We are selling online so we prefer to have less varieties but more quantities.

Apparel: Godharis apparel includes products like tube top converting into buff and
reversible jackets. With time Godharis plans to increase its product length with time.

Accessories: Accessories includes yoga mat, back pack converting into side bag and laptop
sleeves which could be also used as ethnic folder.
While for Kala Ghoda festival we do intent to have more varieties as we are catering Women
as well as kids. Kala is a platform for us to experiment with our different products. It will
help us to understand the market better.

ii. Product depth

In the beginning Godhadis will have minimum varieties in its product length. Later on we
will increase our product depth.

Product (Apparel) Variations

Reversible Jackets 02

Product(Accessories Variations
Laptop Sleeves-folder 01
Yoga mat 01

While catering for Kala ghoda festival we will have more product depth as we will play with
different colours, patterns and prints. We try to make every product different for each other
for Kala ghoda festival.

Reversible Jackets\Vests
 Yoga Mat

b. Customer – Product compatibility

Godhadis delights its customer through product which combines ages old tradition
and contemporary fashion. Our primary concern is to give our customer a user
friendly product, a product which would make a style statement and also fulfil its
purpose. Our product is mostly designed in such a way that our customer is delighted
with all of its features. And its design differentiation creates value. The market which
we are targeting, are the people who won’t mind spending on hand made quality
product. Our products are combination of many colours and patterns which are more
liked by artistic and creative people. We try to give our customer, satisfaction of using
two products in one single product.

c. Customer Relationship Management

Godhadis is always keen on having a good relationship with our customer. It helps us
for marketing, increasing our sales, understanding our customer needs, their feedback
on our products and mainly it helps us to build loyal customer base. Godhadis has its
blog where customers could easily reach us. Social networking sites like facebook,
Twitter and Instagram would help us for maketing our products as well as brand.Its
easy way to reach mass through these sites and create hype for the brand. It also helps
to connect to many people and get their respond.Its like two way communication. In
case of any queries we would connect and answer them through Email.

Godhadis prefers direct selling approach for Kala Ghoda festival, where we can
directly approach our customer. To understand our customer and serve them
accordingly we maintain a feedback diary, take those suggestions seriously and make
necessary changes.

We built customer relationship through sales, marketing and support. For marketing
we carry research to understand the customer wants and stand to their expectations.

Our products features are our primary tool to build up relationships with customers.
They also create value to the company. We track our customer history of repeated
sales, regular visits to Kala ghoda festival, our followers on facebook, instagram and
twitter, email approached customers and send mails and .messages informing them
about our offers and festivals.
 4) Business strategy

For Godhadis, marketing involves satisfying customers’ needs and wants. We delight our
customer by delivering fusion of cotemporary fashion and traditional technique. We
deliver our customer value for their money while being socially responsible. To
understand our strategy of value creation and delivery sequence it could be divided into
three parts. The first phase, choosing the value, represents the prior research which we did
before the product exist. We understood that people are unaware of Quilts of Maharashtra.
Inspite of having exotic designs, too many colours, bold interesting patterns it didn’t
reach out to people. After taking to local people of Maharashtra it was seen that quilts are
made at each and every home. The ladies make those quilts with utmost care and love.
They know this technique in and out. According to their own creativity and knowledge of
colours they make these quilts. These quilt are also gifted during child naming ceremony
and weddings. And these women do not have employment .There is lot poverty. Even if
they know the technique there is no available market for women to sell the quilts.
Godhadis took the initiative to create employment and empower women. There are small
groups known as Bachat Gat directed by few social workers. But the product they
manufacture are mostly edibles or some basic plain quilts which hardly have any market.
So they are unable to expand and some of these groups get shut because of lack of
market. So we figured out to use the quilt making technique and add value to it by making
contemporary fashion products mostly having dual use. And the work of quilt making
would be deligated to bachat gats and our own manufacturing unit will be employing
rural women from Ratnagiri itself. And for stitching employ ITI diploma students from
rural area. We segmented market, selected appropriate market to target and then
positioned it. Once Godhadis decided its value second phase is to provide value, where
we determined our product features, prices and distribution. In third phase we
communicate value by utilizing sales force, sales promotion, advertising and other
communication tools to promote our product.
a. Business Model:
Ghodhadis reaches its customer through two different channels so it has combination
of two different business models. Godhadis sells its products on itokri.

For online sales, Godhadis will have affiliate model. Itokri will help us sell our
products in returns of commission (percentage of profit ). Itokri won’t have ownership
of products they will be just acting as online platform to sell our product. We will be
paying around 25% of our profits for the same.
Second model for Godhadis is direct selling model as we sell our product at kala
ghoda festival.

Godhadis is using Kala Ghoda festival as a platform to sell its products directly to
customer. Brand would be able to meet its customer understand their behaviour
towards the product. Direct selling engages the customer and sells the product helping
to understand the market demand. It gives us opportunity to understand our customer
better and make necessary changes to satisfy them.

As all the products are inhouse productions. Sales and demand for the product will
lead to necessary changes in our production plan.
 Business model Canvas

Our client segment is niche market as the product offered by mirror are very artistic
,bold ,colourful. People who have love for art and contemporary products will be our
targeted market. We cater to higher middle class and elite class people. Our value
preposition is our confidence to give new products and our design orientation towards
our products.We will built our relationship through social media throughout the year
and during kala ghod we will be personally attend our customer to provide service.
We will reach our customers through kala ghoda festival and itokri. Our prime
activities are production and marketing. Resources for our business are Human
resource, Physical resource ( infrastructure) and financial resource. Itokri, Kala ghoda
association, ITI colleges, IT and logistics are our support throughout our business.
Godhadis generates revenue through sales.
b. List of suppliers
Primary raw material for production is Fabric. All the products are based on cotton
and its varieties. Different kind of trims and closures are bought from wholesalers. We
choose our suppliers with utmost care. Primarily we check the quality of raw
materials and then place a order. We believe in maintaining good repo with our
suppliers, which benefits us in long run. Having loyal and consistent suppliers’ makes
our work easy as we will be least assured with our quality. Most of the sourcing will
be done from Mumbai. Mumbai is close to Ratnagiri. Distance between Ratnagiri and
Mumbai is 350 Kilometres and it takes around 7 hours travel. Mumbai and Ratnagiri
are well connected by rail as well as road which makes transportation easy.

List of our Fabric suppliers on whom we could rely:

 Name Location Address

Shop No 160, Mangaldas Market,

Ruchika enterprises Mumbai
Kalbadevi, Mumbai - 400002

Cross road, kalbadevi, Mumbai.

Prime Impex Mumbai.

Old Hanuman Road, Kalbadevi,

Shree Govinda Mumbai.
Mumbai.
corporation

Princess Street, Kalbadevi,

SRS Fabrics Mumbai. Mumbai.

Mirror collects fabrics pieces from local tailors and boutiques at lesser price. Those blocks
are used as stuffing layers in the quilt. Ratnagiri city itself has more than 40 boutiques &
tailoring shops. Most of them stitch suits from the dress material pack which has 2 meter
salwar fabric, 2.5 meter top fabric and a dupatta. For stitching a suit 2 meter fabric is required
while kurta doesn’t require 2.5 meters. On average half to quarter meter of fabric is thrown
away from every suit piece. So mirror uses this fabric in production serving the cause of
sustainable fashion and it will also get atleast 5 to 10 percent of fabric at cheaper rate.

Mirror also requires trims, needles and threads.

Buttons

Zippers

Threads
 Needles

List of suppliers of trims and threads:

Name Location Address

Office no1,2, Khimji Nagji

Imtrim resource PVT Chawl No. 5,, Senapati Bapat
Limited Mumbai Marg, Opp. Lifesyle, Lower
Parel(W)
Mumbai, Maharashtra

Shop No. 7, Shivkrupa CHS,

Trims and beyond Near Jain Temple

Mumbai Satya Nagar Rd, Satya Nagar,
Borivali West, Mumbai,
Maharashtra.

153, Pathan Chawl, Shop

Shakti Number 2, Ganpatrao Kadam

Marketing Marg, Near Dawn Mill,

Mumbai
Lower Parel (W), Lower
Parel
Mumbai, Maharashtra

c. Distribution and Logistics

We have made a contract with local garment dealers to get transport our raw materials along
with their goods. Which helped us in cost cutting as the rent will be divided.

We need logistics to transfer our Quilt pattern from Bachat gat to our stitching unit which is
around 10 kms. A small rickshaw is used to carry daily 30 patterns of quilt.

While dispatching our goods to warehouse of itokri situated in mumbai we hire a transport
facility.
 5) Operations Management

There are number of operations which need to be taken care of. Mirror has its
manufacturing carried in village nearby Lanja, Ratnagiri. Manufacturing unit is like a
home turned into a unit. It gives a friendly feeling to the women. And this adds to
comfortability level while working increasing the productivity.

Picture of a typical house from Ratnagiri

(source: Vijayendra Bapte)

 a. Flow of operations

R&D

Designing

Sourcing

Pattern cutting

Cutting & Sorting

Stitching patches

Hand stitch

Product stitch

Finishing

Ironing

Packaging

Numerous operations are involved in production. They are well planned and carried in proper
order so as to have optimum production. Proper research is done to understand trends, color
forecast . At the same time research is required to bring new product to the market.
Accordingly product is designed followed by sourcing .The fabric collected from local tailors
and boutique is cut into possible size squares. This fabric is used as layers in quilt. Other
fabric is cut according to design and pattern provided. Pattern is according to product to be
stitched. So that there will be minimum wastage of quilted fabric. Then patches are stitched
according to pattern. All the layers are sandwiched keeping designed layer on top. Fabric is
sandwiched together with the help of running stitch. Quilt available is according to pattern of
product, its ready to be stitched. After stitching products are finished, closures are added
wherever necessary, Ironed and then packed. Products which are manufactured for itokri are
packed according to their standards. While the products manufactured for kala ghoda festival
are packed in poly and then into cartons so as to have ease while transporting.

b. Number of machines

Number of machines Types of Machines

1 Over lock machine

4 Stitch machine

1 Embroidery machine

--------------------------------------------------------------------------------------

Total 6 machines required

Mirror’s requirement of machine is very low as most of the work is done

manually. 4 stitching machines are required to stitch on around 30 product daily.
One embroidery machine is required to give little bit of surface ornamentation as
per the requirements of design. Over lock machine is used for giving finishing
touch for the products wherever necessary.
c. Number of Employees

Job position Job Description No. of posts

Assistant Assisting in all 01

areas

IT Manager Marketing 01

Designer Designing- 01
merchandising

Pattern Master Pattern making 01

Supervisor Unit supervisor 03

Labour Stitching, packing 11

& maintenance

Company requires 18 employees including labour and office staff. All the
employees are skilled in their own area of work.Our employees are our prime
resource .For manufacturing goods for kala ghoda our in house production team
works throughout the year. In house designer produces new designs for Kala
ghoda with the help of pattern master.

6) Financial Management
 a. Balance sheet

Projected Balance Sheet as on 31.03.16

Am
Liabilities Amt Amt Assets t Amt

Capital 1,00,000 Fixed Assets 2,44,680

(+) Net Profit 42,70,877

(-) Drawings 4,20,000 Investment 1,50,000

Clo Bal 39,50,877

Current Assets
Short term unsecured
loan 15,00,000 Stock 28,31,197
Sundry
(-) repaid in March 2016 15,00,000 - Receivables 2,25,000

Cash 50,000

Exps payable 25,000 Bank balance 1,50,000

Project Surplus 3,00,000

Advances 25,000

Total 39,75,877 Total 39,75,877

b. profit loss statements

Projected Profit & Loss A/c for the year ended on 31.3.16
Exps Amt Income Amt
To material purchased 26,78,430 By Sales 91,75,000
To labour 17,10,000

To commission 8,62,400
To Gross Profit 67,55,367 By Clo stock 28,31,197

Total 1,20,06,197 Total 1,20,06,197

By Gross
To In house wages 3,60,000 profit 67,55,367

To Salary 6,24,000

To research exps 3,60,000

To trasnport 90,000

To printing 1,500

To rent 2,18,000

To conveyance 17,100

To lodging & borading 5,000

To depriciation 4,33,440

To trasnport outward 91,200

To packaging 28,500

To misc exps 42,750

To int on loan 1,50,000

To electricity exps 57,000

To subscription 6,000

To Net profit 42,70,877

Total 67,55,367 Total 67,55,367

C . sales forecasting
 Sales forecasting for
the year 2015-16
Kala
Ghoda
Festival
Apr- May- Jun Jul- Aug Sep Oct Nov Dec Jan- Feb Ma
15 15 -15 15 -15 -15 -15 -15 -15 16 -16 r-16 Total

Op 1,5 2,1 2,7 3,2 3,6 3,8 4,1 4,3 4,7 3,6
stock - 750 00 75 25 38 88 38 88 88 63 63
Prod
uctio 75 70 75
n 750 750 0 0 700 750 600 750 650 0 650 750 4,850

1,7
Sale 75 150 188 300 450 400 450 375 50 450 4,588

Clo 1,50 2,1 2,7 3,2 3,6 3,8 4,1 4,3 4,7 3,6 3,9
Stock 750 0 75 25 38 88 38 88 88 63 63 63

Clo 28,31
Stock ,197

1,5 3,0 3,7 6,0 9,0 8,0 9,0 7,5 35, 9,0
0,0 0,0 5,0 0,0 0,0 0,0 0,0 0,0 00, 0,0 91,75
Sale - - 00 00 00 00 00 00 00 00 000 00 ,000

Estmt
d 2,3 2,1 2,1 2,3 1,8 2,3 2,0 2,3 2,0 2,3
Mate 2,34 2,34, 4,9 9,2 9,2 4,9 7,9 4,9 3,6 4,9 3,6 4,9 26,78
rial ,950 950 50 87 87 50 60 50 23 50 23 50 ,430

1,5 1,4 1,4 1,5 1,2 1,5 1,3 1,5 1,3 1,5
Labo 1,50 1,50, 0,0 0,0 0,0 0,0 0,0 0,0 0,0 0,0 0,0 0,0 17,10
ur ,000 000 00 00 00 00 00 00 00 00 00 00 ,000

Overhe 1,0 1,0 1,0 1,0 1,0 1,0 2,1 1,2

ads 20,7 20,7 7,2 1,7 1,7 7,2 90, 7,2 96, 7,2 1,3 2,2 11,94
variable 50 50 04 64 64 04 883 04 324 04 24 04 ,579

Overhe 1,7 1,7 1,7 1,7 1,7 1,7 1,7 1,7 2,7 2,7
ads 1,70 1,70, 0,6 0,6 0,6 0,6 0,6 0,6 0,6 0,6 0,6 0,6 22,47
fixed ,662 662 62 62 62 62 62 62 62 62 62 58 ,940

-5,7 -5,1 -3,3 -2,5 3,3 1,3 2,9 26, 1,2

6,36 -5,76 2,8 1,7 6,7 -62, 0,4 7,1 9,3 87, 84, 2,1 41,75
Profit 2 ,362 16 13 13 816 95 84 91 184 391 88 ,248
 Projected Amt
in
Expenditure Rs.
Per Ap M Au Oc No De Ma
Jun Jul- Sep Jan Feb Tota
mo r- ay- g- t- v- c- r-
-15 15 -15 -16 -16 l
nth 15 15 15 15 15 15 16
2,3 2,3 2,3 2,3 2,1 2,1 2,3 1,8 2,3 2,0 2,3 2,0 2,3 26,7
Material 4,9 4,9 4,9 4,9 9,2 9,2 4,9 7,9 4,9 3,6 4,9 3,6 4,9 8,43
50 50 50 50 87 87 50 60 50 23 50 23 50 0
Labour
1,5 1,5 1,5 1,5 1,4 1,4 1,5 1,2 1,5 1,3 1,5 1,3 1,5 17,1
Primary
0,0 0,0 0,0 0,0 0,0 0,0 0,0 0,0 0,0 0,0 0,0 0,0 0,0 0,00
Stiching
00 00 00 00 00 00 00 00 00 00 00 00 00 0
30, 30, 30,
Secondary 30, 30, 30, 30, 30, 30, 30, 30, 30, 30, 3,60
00 00 00
Stiching 000 000 000 000 000 000 000 000 000 000 ,000
0 0 0
52, 52, 52,
52, 52, 52, 52, 52, 52, 52, 52, 52, 52, 6,24
Staff Salary 00 00 00
000 000 000 000 000 000 000 000 000 000 ,000
0 0 0
30, 30, 30,
Research & 30, 30, 30, 30, 30, 30, 30, 30, 30, 30, 3,60
00 00 00
Kala ghoda 000 000 000 000 000 000 000 000 000 000 ,000
0 0 0
 7,5 7,5 7,5 7,5 7,5 7,5 7,5 7,5 7,5 7,5 7,5 7,5 7,5 90,0
Transport
00 00 00 00 00 00 00 00 00 00 00 00 00 00
Printing & 12 12 12 1,50
125 125 125 125 125 125 125 125 125 125
Stationery 5 5 5 0
1,0 1,0
1,5 1,5 1,5 1,5 1,5 1,5 1,5 1,5 1,5 1,5 1,5 2,18
Rent 1,5 1,5
00 00 00 00 00 00 00 00 00 00 00 ,000
00 00
1,5 1,5 1,5 1,5 1,4 1,4 1,5 1,2 1,5 1,3 1,5 1,3 1,5 17,1
Conveyance
00 00 00 00 00 00 00 00 00 00 00 00 00 00
Lodging & 41 41 41 5,00
417 417 417 417 417 417 417 417 417 413
Boarding 7 7 7 0
36, 36, 36,
36, 36, 36, 36, 36, 36, 36, 36, 36, 36, 4,33
Depriciation 12 12 12
120 120 120 120 120 120 120 120 120 120 ,440
0 0 0
Transport 8,0 8,0 8,0 8,0 7,4 7,4 8,0 6,4 8,0 6,9 8,0 6,9 8,0 91,2
Outward 00 00 00 00 67 67 00 00 00 33 00 33 00 00
Electricity 5,0 5,0 5,0 5,0 4,6 4,6 5,0 4,0 5,0 4,3 5,0 4,3 5,0 57,0
Exps 00 00 00 00 67 67 00 00 00 33 00 33 00 00
2,5 2,5 2,5 2,5 2,3 2,3 2,5 2,0 2,5 2,1 2,5 2,1 2,5 28,5
Misc Exps
00 00 00 00 33 33 00 00 00 67 00 67 00 00
Packaging 3,7 3,7 3,7 3,7 3,5 3,5 3,7 3,0 3,7 3,2 3,7 3,2 3,7 42,7
Exps 50 50 50 50 00 00 50 00 50 50 50 50 50 50
12, 12, 12,
Interest on 12, 12, 12, 12, 12, 12, 12, 12, 12, 12, 1,50
50 50 50
loan 500 500 500 500 500 500 500 500 500 500 ,000
0 0 0
E commerce
- - - - - - - - - - - - -
expenses
Subscription 50 50 50 6,00
500 500 500 500 500 500 500 500 500 500
fees 0 0 0 0
5,7 5,7 5,7 5,7 5,4 5,4 5,7 4,9 5,7 5,2 5,7 6,2 6,7 68,7
Total Cost 6,3 6,3 6,3 6,3 9,3 9,3 6,3 5,2 6,3 2,2 6,3 2,2 6,3 2,92
62 62 62 62 15 15 62 22 62 69 62 69 58 0
Profit @ 11, 11, 10, 10, 11, 9,9 11, 10, 11, 12, 13, 1,14
200% before 52, - - 52, 98, 98, 52, 0,4 52, 44, 52, 44, 52, ,40,
commission 724 724 631 631 724 44 724 537 724 537 716 392
74, 1,0
86, 86, 82, 82, 86, 86, 78, 86, 93, 8,58
Commission - - 28 1,4
454 454 397 397 454 454 340 454 340 ,029
3 54
10, 10, 10, 10, 10, 9,1 10, 9,6 10, 11, 12, 1,05
Profit after
66, - - 66, 16, 16, 66, 6,1 66, 6,1 66, 51, 51, ,82,
commission
270 270 233 233 270 61 270 97 270 197 262 363
17, 1,5 3,0 3,7 6,0 9,0 8,0 9,0 7,5 35, 9,0 91,7
Sale value 29, - - 0,0 0,0 5,0 0,0 0,0 0,0 0,0 0,0 00, 0,0 5,00
086 00 00 00 00 00 00 00 00 000 00 0
- - - - - - - - - - - -
1,0
5,0 5,0 5,0 4,6 4,6 5,0 4,0 5,0 4,3 5,0 5,0
4,3
00 00 00 67 67 00 00 00 33 00 00
33

d. Break even analysis

 3,750,000
3,500,000
3,250,000
3,000,000
2,750,000
2,500,000
2,250,000
2,000,000
1,750,000 Expenditure
1,500,000 Sales
1,250,000
1,000,000
750,000
500,000
250,000
-
42125 42186 42248 42309 42370 42430
42095 42156 42217 42278 42339 42401

Expenditur
e Sales

Apr-15 5,76,362 -

May-15 5,76,362 -

Jun-15 6,62,816 1,50,000

Jul-15 6,31,713 3,00,000

Aug-15 6,31,713 3,75,000

Sep-15 6,62,816 6,00,000

Oct-15 5,69,505 9,00,000

Nov-15 6,62,816 8,00,000

Dec-15 6,00,609 9,00,000

Jan-16 6,62,816 7,50,000

 35,00,00
Feb-16 8,15,609 0

Mar-16 7,77,812 9,00,000

91,75,00
Total 78,30,949 0

Finance.xlsx

7) Expansion plans

As company grows and earns a positive reputation, several opportunities will open to us. And
we are considering some options already like reaching more locations through exhibition or
setting up exclusive store in metro city like Mumbai. Also may be like having exclusive
exhibitions for godhadis. We may also consider exporting this unique products. Within five
years, we will assess the potential for setting our store. We also plan to increase our product
line.