Entrepreneurship-Kauseya Inc

by Group 7
Presented to Prof Shivangi Singh
Executive Summary
The company, Kauseya Pvt. Ltd., aims to establish a Tussar silk manufacturing unit in Jharkhand,
India.
Although Jharkhand has a huge potential(Tussar silk cultivation is prevalent deep-rooted in Dumka
and nearby regions)) of being the hub of Silk production but never been exploited to the best.
Kauseya Inc is going to grab this opportunity. Kauseya Inc has an extremely talented team, who
have expertise in developing apt-to-fit products for Silk Industry.
Team/Org Structure (Horizontal Structure)

Operations
Coordinator
Sales &
MD
Marketing

R&D Head
The Company & its Offerings
Kauseya Inc is a Jharkhand-based organization established in 2023 to cater to the silk product
demands of the local and Pan-India market. It visions to take it to Global market. Silk is one of
the ancient nature's product.Due to its multiple qualities,such as softness,thineness,environmental
friendliness, it has a huge demand and particularly in recent years.
Products/Services-
● Production & distribution of high-quality silkworm seeds
● Collaborate with local farmers and enable them (by providing cutting-edge technology in
Silk production, Financial assistance) them for optimized silk production.
● Promote the usage of sustainable practices and implementation of carbon capture
mechanisms in farms.
Business Model & Strategy
- Creation of long term partnerships with small farmer communities.
- Building economies of scale by providing quality seeds, technological knowhow &
equipments to increase productivity of farmers.
- Provide a brand under whose umbrella the silk produced shall be sold in national &
international markets
- Provide a seamless mechanism for communication between silk producers &
consumers.
- Value proposition for customers in such as they get good quality silk at a fair price &
value proposition for farmers is that they get guaranteed markets for their products
Marketing Plan
- Provide a technological platform for customers to browse through our products,
place orders & payment gateways
- Create referral programs for first time customers
- Providing volume discounts to customers
- Promotion of our hook "Silk does for the body what diamond does for the hand" for
retail segment
- Dealing with B2B business using word of mouth referrals and providing high quality
goods and services
Operating Plan
Kauseya Inc Operation plan-
Work with local farmers to grow the Silk worm and enable them with technologies to connect to market.
Farmers will have the opportunity to get funded by Kauseya Inc.
So that a win-win situation for both; Farmers and Company, the profit revenue sharing model will be
applied.A certain percentage will be taken by Company and rest will be given back to Farmers.
It has also vision to cultivate the silkworm itself in phase2.

Typical Day to Day activities-

➔ Visiting to Farmers and taking farmers’ applications(if any) for supporting them financially and
technologically(best practices of cultivating).
➔ Testing and ensuring Silkworm right cultivation.
➔ Collecting the grown silk from Farmers and storing in warehouse.
➔ Taking product to market for sale.
➔ Sharing revenue.
FINANCIAL PLAN
.
FIXED COST COST PER ANNUM( IN LACS ) REVENUE Signifiers

APPLICATION DEVELOPMENT 1O

OPERATING COST SELLING PRICE OF RAW SILK PER KG 500

COST OF SEEDS 10 TARGET AREA ( IN ACRES) 20 ACRES

SALARY AND ALLOWANCES 20 1 ACRES PRODUCES 1600KG PER YEAR

OFFICE SPACE, ELECTRICITY, RENT 10 TARGETED RAW SILK PRODUCTION 32000KG

LOGISTICS 10 TOTAL REVENUE PER YEAR 160 LACS

INSURANCE 10 PROFIT PER YEAR 80 LACS

SALES PROMOTION 20 FARMER PROFIT 40 LACS

NET OPERATING COSTS 80 NET PROFIT PER YEAR 40 LACS

Sales Projection For Initial Products
Future Sales Estimate :
Risks
● Macroeconomic Conditions
● Labour Market Scenario
● Local State Government Policies towards SME
● Changing preference of Consumers
● Availability and keenness of local farmers to get associated
Harvesting Plan
Scenario A: Considering the business venture as profitable and growing strongly, company may venture
beyond Jharkhand where climate, demographics supports sericulture and integrating new suppliers and
consumers.Recruitment of specialist in marketing, sales, HR, finance functions to deal with complexity
of growing venture. IPO may be launched for scaling up operations for investing into others areas of
country to set share price on stock exchange .

Scenario B: Considering business venture is incurring losses and becoming unmanageable on account
of lack of capital or scale of operations, company can be sold off with proper valuation to another
company through merger and acquisition.

Scenario C: Considering business venture is growing steadily but there are not enough opportunities to
scale up operation where company has acquired enough capital from revenues generated to start new
business may sell the business to new owner interested in going ahead with the business.
Valuation
● Value of firm for merger or acquisition
or selling to prospective buyer is
calculated after 5 years of company
existence assuming 10% growth rate in
revenues every year and discount rate
of 10% from the financial plan data.
Appendix
Resume of Members/ Group 7

Namre Roll Code Email Members CV

Rakesh Ranjan Kumar Roy X040-22 Rakesh.RanjanKumarRoy22e@iimranchi.ac.in
CV
Vikrant Anand X052-22 vikrant.anand22e@iimranchi.ac.in
CV
alok.sharma22e@iimranchi.ac.in
CV
Alok Sharma X006-22
neeraj.panchal22e@iimranchi.ac.in
CV
Neeraj Panchal X030-22
richa.priya22e@iimranchi.ac.in
CV
Richa Priya X042-22
Himanshu.Shekhar22e@iimranchi.ac.in
CV
Himanshu Shekhar X018-22
.