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Denim Jeans Factory Set Up Planning
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Denim Jeans Factory Set Up Planning



This presentation was prepared by 4 students (Atul, Kuldeep, Navneet & Vinay Prajapati). Subject was Entrepreneurship Management & Business Development.

This presentation was prepared by 4 students (Atul, Kuldeep, Navneet & Vinay Prajapati). Subject was Entrepreneurship Management & Business Development.



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Denim Jeans Factory Set Up Planning Denim Jeans Factory Set Up Planning Presentation Transcript

  • Presented by Atul DwivediKuldeep Ghorpade Navneet Yadav Vinay Prajapati MFTECH, SEM-IIINIFT, Gandhinagar
  • Name of the Business Atul Denims Pvt. Ltd.Official Address of the Business Atul Denims Pvt. Ltd. Plot No. 121 Sector C, Sitapur Road, Lucknow Industrial Area Lucknow-226016 Phone- 0522- 250314/15/16 www.atuldenims.com
  • Ownership Pattern of the Business Partnership Firm (Pvt. Ltd.)Names of the Partners Atul Dwivedi Kuldeep Ghorpade Navneet Yadav Vinay PrajapatiNature of the Business Jeans Manufacturing and Distribution
  • About UsVision We are ethically run business to provide energy to compete the fashion in todays era.Mission Our mission is to provide denim for the next generation family, from every walk & stage in life, for every occasion, with a wide range of excellent quality that makes them look and feel good.
  • About UsWe will make jeans which will be the straight fit, tight fit andcomfortable fit.
  • About Us
  • Low Cost Effectiveness Efficiency Doing the right things Doing things right SHEAsset Strategy Maintenance Plan and(Availability and Work Selection Execute Strategy Schedule Performance) Quality Availability Improve Monitor
  • About Us ATUL Value for Money PropositionDenims Ethical Conduct of Business To Fill the Product Gap Grabbing the Market by Reducing the Lead Time to Fill the Product Gap
  • About Us Local NewspaperMediaChoice Local Trade Publication Local Retail Shops
  • About Us Distribution & WH (Faizabad) HeadDistribution Quarter & Distribution & WH WH In & WH (Basti)(Sultanpur) Lucknow Distribution & WH (Vanarasi)
  • About Us Distributor in Mumbai & DelhiFactory in Mumbai & Delhi Retailer Local Distributor in U.P. Retailer Retailer Retailer
  • About Us Distributor in Mumbai & DelhiFactory in Mumbai & Delhi Retailer Local Distributor in U.P. Retailer Retailer Retailer
  • About Us Retailer Manufacturing & Distribution Atul Denims Pvt. Ltd.Retailer Retailer Retailer
  • About UsTotal Production Per Month: 60,000 PiecesNumber of Working Days: 280/YearShifts Per Day of 8 Hour: 1Operating Efficiency: First Year: 30% Second Year: 70%
  • About Us CEO GM GM GM R&D Operation MarketingManager Manager R&DFinance Production manager
  • About Us Strong entrepreneurial class Flexibility in production of small order lots  Poor work practices resulting in higher labour cost Ability to handle value additions, embellishments component etc.  High transaction and power cost Adequate labour supply at relatively competitive  Technological obsolescence and lower efficiencies wages  A lack of strong linkages between raw material supplier Growing Domestic Market and the apparel manufacturer  Few Raw Material Suppliers Understanding the customer because of the  Poor work practices resulting in higher labour cost language advantages component No other manufacturer in nearby area  Changing Policies with change in Political Parties Reducing the Supply chain can boom this  Technological obsolescence and lower efficiencies business  Daytime Transportation is probhited Can enter in Retail Section
  • About Us Watch & optical 7%Consumer durable etc 3% Apparel Home Décor 32% 14% Book 7% Footwear Food 10% 20% Health & Beauty 7%
  • Denim Consumption in 15 Major Cities in INDIACities Million Pieces Share RankMumbai 6.47 30.1 1Delhi 5.65 26.3 2Hyderabad 1.53 7.1 3Chennai 1.21 5.6 4Lucknow 1.08 5.0 5Bengaluru 1.03 4.8 6Kanpur 1.00 4.7 7Kolkata 0.80 3.7 8Nagpur 0.79 3.7 9Ahmedabad 0.64 3.0 10Jaipur 0.63 2.9 11Indore 0.33 1.5 12Chandigarh 0.19 0.9 13Coimbatore 0.06 0.3 14Guwahati 0.05 0.2 15
  • About UsThe consumption of 21.46 million pairs of jeans in these 15 citiesaccounts for 11.6% of all denim products.The other denim products are Waist coasts, Shirts, Shorts, JumpSuits, Skirts, Caps, Jackets, and Shopping bags. Year Urban Rural All India 2002 69 (71.13) 28 (28.87) 97 2003 98 (73.13) 36 (26.87) 134 2004 83 (69.17) 37 (30.83) 120 2005 106 (77.37) 31 (22.63) 137 2006 116 (75.86) 37 (24.14) 153 2007 118 (61.51) 74 (38.49) 192 2008 120 (58.59) 85 (41.41) 205 2009 122 (55.26) 99 (44.74) 221
  • About UsThe retail market size for Jeanswear in India  32.97 billion in value  63,500 (‘000) piecesThis grew at a relatively healthy rate – 7 per cent in value – 9.1 per cent in volume over the year 2009.
  • About Us• Capacity of India to make denim fabric: 600 million meter• 79 % denims are tagged with a label• Domestic market sales: 300 million meter/annum• Per capita consumption of jeans in India: 0.3/person/annum• Export of denim: 170 -180 million meter/annum Domestic denim consumption: 300 million meter• At 10% CAGR it grows up to 530 million meter annum by 2015 for denim fabric
  • About Us1. Would you like to keep Denim Jeans 2. Would you like to keep Branded Jeans?in your stock?a) Yes 14 35% a) Yes 14 35% Yes Yesb) No 08 b) No 08 No No 65% 65%3. Would you like to have a new brand in 4. What quantity do you keep of Jeans inyour stock? your store? 0% 0%a) Yes 11 18% a) below 500b) No 11 Yes a) below 500 18 b) 500 -1000 50% 50% c) 1000-1500 No b) 500-1000 04 d) Above 1500 82% c) 1000-1500 00 d) Above 1500 00
  • About Us5. How many brands do you keep in your 6. What is the Payment terms you prefer?store?a) Less then 5 a) 30 Day 9% 18%b) 5to 10 46% a) less then 5 b) 30 to 60 Day 36%c) More then 10 b) 5 to 10 c) 60 to 90 Day a) 30 day 36% c) more then 10 55% b) 30 to 60 day c) 60 to 90 day7. What is the highest selling price point?a) 300 – 500 9%b) 500 – 700 a) 300-500c) 700- 1000 36% 55% b)500-700 c) 700-1000
  • About UsLeading Branded PlayersLevi Strauss, Lee, Spyker, NumeroUno, Trigger, PeterEngland, Reliance, DNMX, Newport, Wrangler,Live-in, Sprax, PepeNon Branded: Approximate 50Intensity of Competition: HighMajor Players in the IndustryLevi Strauss, Lee, Spyker, Numero Uno, Trigger,PeterEngland, Reliance, DNMX, Newport, WranglerProduct Option: Trousers (PV and cotton)
  • About UsSocial: People from Eastern are ready to wear the denim aswork wear and casual wear. There is a paradigm shift frompolyester cotton and its blends to denim among UP youth.Economical: UP. Youth are having enough discretionary incomefor shopping.Legal: The policies are placed in UP which will bolster thebusiness environment.Political: UP government is a stable state government andpromotes indigenous business in UP.
  • About UsLegal Restriction – Legal Restriction regarding company formation – Partnership deed – NO of People Involved: minimum 2 and maximum 50 – Liability of Business Debts: Unlimited liability. Liability extends to the individual’s private property for paying business debts.
  • • The natural resources should be carefully used and the depletion of the same should be restricted by the business/ firm.• The below laws and regulations will help in preserving and careful use of natural resourcesThe Environment (Protection) Act, 1986: It includes below acts – Acts relating to Air Pollution – Acts relating to Forest Conservation – Acts relating to Wildlife Protection – Acts relating to Biological Diversity – Acts relating to Public Liability Insurance – Rules relating to Noise pollution – Rules relating to Management of Hazardous Substances
  • About UsLaws related with labor – The factories act 1948 – Trade union act 1926 – Industrial employment act 1946 – Industrial Dispute act 1947 – The payment of wages act 1936- amendment 2005 – The minimum wages act 1948 – The payment of bonus act 1965
  • • The maternity benefit act 1961• The equal remuneration act, 1976(For women)• The mines act 1952• The Dock worker welfare Act 1986• The Fatal accidents act 1855• The personal injuries(emergency) provision act 1962• The personal injuries(Compensation insurance) provision act 1963• The public Liability Insurance act 1991
  • About Us
  • About Us1. www.ibef.org2. Retail Market & Opportunity by Indian Brand Equity Foundation (IBEF)3. World Denim Market – A Report on Capacities, Market Size, Forecasts etc. • http://www.denimsandjeans.com/latest-denim-reports/denim-data- figures/world-denim-market-a-report-on-capacitiesmarket-size-forecasts-etc/4. www.scribd.com/doc/15021416/Denim-Demand by KSA TECHNOPAK5. Different Schemes of UP Govt. for SMEs6. Financial Analysis by Prasanna Chandra7. Financial Management by Khan & Jain8. Marketing Management by Philip Kotler9. Personnel Management by Edwin Philipo10. State Level Incentives for Industries in Uttar Pradesh11. An Article on SMEs IN INDIA: ISSUES AND POSSIBILITIES IN TIMES OF GLOBALISATION by Keshab Das