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Business plan on exquisite handicraft


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Business plan on exquisite handicraft

  1. 1. Business Plan Exquisite Handicrafts Prepared By 12MBA Mohd. Arbaz Ali Mahfooz Alam Ansari, Gagan Varshney, Athar Noor Department of Business Administration Aligarh Muslim University
  2. 2. Contents 1. Executive Summary a. Objectives b. Keys to Success 2. Company Profile a. Company Ownership b. Manufacturing c. Location and facilities 3. Management Team 4. Industry Overview 5. Marketing Plan a. Target Market b. Market Needs c. Competitive Edge d. Environment Analysis 6. Financial Plan 7. Risk and Contingencies
  3. 3. 1. Executive Summary:- Welcome to Exquisite Handicrafts, the premium quality manufacturer and seller of Animal horn and bone handicrafts. Our company offers the best designer horn and bone handicrafts. These handicrafts are made by using pure raw materials. Our skilled craftsmen give their maximum to carve out the finest materials that is simply great. Our strength lies in identifying and following the latest market trends. As being a new entrant, we focus strongly on maintaining a good customer relationship and strive towards providing quality products that fulfill the customer needs. Our products include beautiful jewelry, horn cutlery, bone jewelry boxes, horn buttons, bone buttons, photo frame, utensils like spoons, plates, knife handles, scales etc. Objectives:- Being in horn and bone industry we mainly focus on designing beautiful handicrafts by utilizing the waste product of animals. We offer a host of products tailored to the needs of our customers. We believe that in order to succeed, a business needs a strong client base and therefore concentrate on achieving the above said. We estimate that by 2016 we will be able to cover a sizeable portion of the local market and start doubling our profits. Keys to Success:- The keys to success are as follows-  We focus on purchasing quality materials at minimum cost.  Charging competitive rates by our clients for the products.  Maintaining a favorable working condition for the employees and a good relationship with suppliers and distributors. 2. Company Profile:- Exquisite Handicrafts is a small scale horn and bone handicraft company focused on providing the finest quality horn and bone handicrafts. It is a registered
  4. 4. handicrafts based enterprise under the Ministry of Textile and Handicrafts, India established in the year 2013. Primarily, the company’s focus is on the production of jewelry items, besides cutlery and interior decorative products. Our company is committed to produce quality materials according to buyer’s satisfaction and at competitive price. We supervise a team of efficient and experienced personalities who are carefully involved in quality production and distribution of our products. We arrange the selling on retail and wholesale base and as desired by the buyer’s. Company Ownership:- The enterprise is a partnership at will, started and owned by it’s founder members namely Syed Mohd. Arbaz Ali, Mahfooz Alam Ansari, Gagan Varshney, Athar Noor. As the operation grows, the management will consider in re-registering it as a private limited. Manufacturing:- We specialize in manufacturing and selling of horn and bone handicrafts. The process includes purchasing of raw materials from different slaughter houses located in different cities, desired objects are carved out, shaped and polished by skilled craftsmen to obtain the finished product. Location and Facilities:- We will start our venture with a small manufacturing facility based in Aligarh. Raw materials will be sourced from slaughter houses in Aligarh and allied areas. 3. Management Team:- Our company is well handled by our vastly experienced faculty who guide the organization to success. In addition our efficient management staff includes Syed Mohd. Arbaz Ali, Mahfooz Alam Ansari, Gagan Varshney and Athar Noor. They are highly skilled and knowledgeable in their respective areas of expertise. Arbaz
  5. 5. will primarily handle the marketing, advertising and positioning of the product. Mahfooz will handle portfolio and financial aspect of the enterprise. Athar will be handling the task of managing the clients and dealing with the suppliers. Gagan will be managing the operational processes. 4. Industry Overview:- Crafts are an integral part in the life of an Indian, despite rapid advancement they are considered as luxury items but in a developing country like India, it is a major source of employment for the huge population, next to agriculture. Handicrafts can be defined simply as objects made by the skill of the hand of the creator as well as centuries of evolutionary tradition. They consists of objects created by skilled people for religious rituals like weddings and celebrations and for personal use as well as luxurious ones (antiques) created by craftsmen for specific requirements. There is a timeless quality in these craft objects for they have evolved over centuries and continue to be made today with the same sentiment. Before independence, England flooded the Indian market with its cheap machine- made items, which ousted the homemade crafts. A number of craftsmen were turned destitute overnight. Gandhiji’s Swadeshi movement focused on the plight of the Indian craftsmen and on the need for maintaining the ancient craft traditions. After independence, Handicrafts board was setup to look into the plight of dying crafts. Slowly the demand grew for these items both at home and abroad. Improving educational system and lifestyles of the middle class people contribute a lot for the eroding native crafts of India. Before 2002, the handicrafts industry experienced a sudden downfall (especially horn and bone handicrafts) which led to the decrease in sales of handicrafts and also affected the industry. Presently, with the joint effort of Ministry of Textiles and Handcrafts and prominent exporters, various exhibitions are being organized which have contributed to create a positive image for the industry and has helped in its revival. The need of the hour is assistance for the craftsmen to improve their techniques, availability of good raw materials, direct marketing channels, credit and enough wages and socio-economic benefits.
  6. 6. 5. Marketing Plan:- The marketing plan used by Exquisite Enterprises will be as follows- Exquisite Enterprises will offer its line of products primarily to the upper class and upper middle class. For acquiring this market segment, we will need to create relations with suppliers who exclusively cater to the needs of such clients. The company will position itself as an experienced provider of animal horn and bone handicrafts, jewelry and cutlery products. Our excellent buyer-supplier relationship will ensure that we will be able to place our company’s products in the desired market segment. This will help us to meet our market needs in an efficient manner. Initially we will start our business in the major local markets of India. The biggest handicraft markets in India are namely Bangalore, Kolkata, Mumbai and Delhi. We will start by contacting reliable suppliers located in these particular markets. Apart from this we will also participate in various handicrafts exhibition that are held in these markets so as to make our presence felt in the industry. Our company is focusing on producing antiques, jewelry and cutlery products that are being made by processing quality horn and bone. Target Market:- We are focusing on the upper and upper middle class of the society located in the major cities of India like Bangalore, Kolkata, Mumbai, Delhi and NCR and its allied regions. Market Needs:- The demand for antiques is always in trend in the market irrespective of the market conditions. The traditional antiques are evolving by time and are again in trend from the last two decades especially after the upper and upper middle class has started to grow a conscious and opt for handicraft product made by local artisans within the country. The growing demand for innovative antiques at greater pace has drawn attraction towards this industry. Competitive Edge:-
  7. 7. The main competitive edge that we have is that we are planning to focus on buying quality horns and bones of animals at cheaper rates from slaughter houses located near our manufacturing facility i.e. from allied areas of Aligarh. This will most definitely help us in cutting our costs incurred in various aspects like transportation costs, carrying cost etc. and we will be able to purchase at much cheaper rates than our competitors. This decrease in the price of raw materials will ultimately help in bringing down the price of our product substantially. Environment Analysis:- Our enterprise will be focused on purchasing horns and bones from registered slaughter houses only. We will strictly be avoiding suppliers who indulge in illegal poaching of animals. This will ensure that our enterprise will be working within the environmental regulations. Waste management is also done in an efficient way. The residue which is left as a result of processing on horn handicraft is used in the manufacturing of Urea in plants. The residue leftover in bone handicraft production is used by the sugar industry or by pharmaceuticals companies. 6. Financial Plan: The company’s promoters Mahfooz, Arbaz, Gagan and Athar are going to manage the day to day operations of the enterprise and coordinate the activities to achieve the desired objectives of the enterprise. Their effectiveness and efficiency helps the enterprise to ensure venture’s success. It is estimated that Rs. 10,00,000 is required to be invested in fixed assets; while Rs. 6,00,000 as working capital requirement. The expected start-up cost will be Rs. 2,00,000 (includes legal cost, advertises, miscellaneous, etc.). There will be Rs. 1,00,000 reserved for future contingencies. The Company FA will be financed through loan from bank & working capital by partner’s contribution of Rs.1,50,000 per member. (Owner fund)
  8. 8. Summary Particulars Amount Startup cost: Legal expenses 35,000 Misc. expenses 10,000 Rent 45,000 Salary 2,40,000 Bank balance 25,000 Preliminary expenses 45,000 Raw materials 2,00,000 Total 6,00,000 Fixed Assets: Plant and machinery 6,30,000 Furniture 20,000 Advertisement 70,000 Vehicle 1,20,000 Computer 60,000 Reserve and surplus 1,00,000 Total 10,00,000 Note: As our company is not focusing on a single product, hence Break Even Analysis is not possible. However, we assume to double our profit in the next two years. 7. Risk and Contingencies:- Although our business strives to provide employment and a source of livelihood to skilled craftsmen and artisans, there is some amount of risk involved in this business both for the people employed and for the management team as well. Members of the community involved in the manufacturing process of these handicrafts are regularly involved in hacking, chipping, cutting, molding and polishing animal bones and horns. But these ornaments carry a high price for these craftsmen, who must live with airborne clouds of bone dust that sticks to their eyes, hair and lungs. There is a huge risk of developing a debilitating lung disease when a person crosses the age of 50. The machines and power saws that these craftsmen have to
  9. 9. work with are very dangerous. Lack of concentration for even a couple of seconds can result in serious accidents. Cows are considered to be a sacred animal in most parts of India. Slaughtering of cows in such areas is illegal and can be a serious offense for some communities. Being in such a business one also has to deal with added pressures of avoiding such things. We don’t buy or work with any horns or bones that are the result of poaching of endangered species of animals. We don’t buy horn or bone where the animal has been killed specifically for obtaining its horn and bone. Copyright © 2014 Gagan Varshney All rights reserved with the author. Commercial use of this presentation, or its any part, is prohibited.