BUSINESS PROPOSAL FOR A KNITWEAR BRAND/GOAT

1. OPERATION COST /
BUSINESS PLAN (BRAND#GOAT)
2 0 1 6 - 2 0 1 7

2. EXPLORING
OPERATION/
STRATEGY
• CREATE A NICHE DOMAIN WITHIN THE COMPETITIVE FASHION ENVIRONMENT.
• OPERATE ON SINGLE BRAND IDENTITY.
• ENSURE ADHERENCE TO A STRONG BRAND RECALL VALUE.
• ENSURE COMPETITIVE EDGE WITH STRENGTHS IN AESTHETICS, BRAND-HYGIENE & PRICE-POINTS.
• TARGET A VERY SPECIFIC CONSUMER ACROSS DEMOGRAPHY, GEOGRAPHY, MARKETED VIA MULTI-SALES CHANNEL
LIKE LICENSING, WHOLESALE, RETAIL & E-COMMERCE.
• COVER 360-DEGREE MARKETING CAMPAIGN BOTH TRADITIONAL AND DIGITAL (SOCIAL MEDIA).
• BUSINESS FORMAT AS PORTFOLIOS & ACQUISITION, ENSURING STRONG CASH FLOW WHICH IS UTILIZED THROUGH
RE-INVESTING IN BUSINESS, PAY DOWN DEBTS, FUND FUTURE ACQUISITIONS, REPURCHASE OF STOCKS
• THEY CREATE WORLD CLASS TEAMS & PARTNERS ENSURING PASSION, INTEGRITY, INDIVIDUALITY, PARTNERSHIP,
ACCOUNTABILITY.

3. SALES
CHANNELS
P R O J E C T E D R E V E N U E S H A R I N G
CHANNEL
BUSINESS
SHARE
PROJECTED
MONTLY SALES
FY 2016-17
(In ₹ Lakhs)
PROJECTED
ANNUAL SALES
FY 2016-17
(In ₹ Lakhs)
CHANNEL DESCRIPTION
AVERAGE
MONTHLY
SHARE
(In ₹ Lakhs)
AVERAGE
ANNUAL
SHARE
(In ₹ Lakhs)
E-COMMERCE /ONLINE
SALES
20%
₹ 20.97 ₹ 251.64
E-COMMERCE FLAGSHIP, FASHION MARKET PLACE, MARKET
PLACE, DISCOUNT STORES, INTERNATIONAL E-COMMERCE &
ONLINE WHOLESALE
₹ 4.19 ₹ 50.33
FLAGSHIP BRAND
STORES
35%
EXCLUSIVE BRAND OUTLETS, KIOSKS & HYBRID BRAND
STORES (CLICK & MORTAR CONCEPT)
₹ 7.34 ₹ 88.07
OFFLINE
(DISTRIBUTION) SALES
45%
MULTI BRAND OUTLETS (MBO), LARGE FORMAT STORES
(LFS), THIRD PARTY LIQUIDATION, SHOP IN SHOPS (SIS) &
WHOLE SALE
₹ 9.44 ₹ 113.24
TOTAL 100% ₹ 20.97 ₹ 251.64

4. SALES & SALES FORECAST
P R O J E C T E D 5 - Y E A R S G R O W T H P L A N
** Average sales per month is projected at YOY Growth rate @ 100% (this is subject to actual projections/achievement)
** Inventory calculations done at CP calculated @ 2.75 (could be increased to 3.00) of MRP. Ideal Inventory at the rate of 2X (Holding stock at 30 days turnaround) ( Inventory
= monthly Sales x 2)
total ANNUAL INVENTORY PLAN = (PER MONTH SALES X 12 MONTHS) + INVENTORY PER MONTH
DESCRIPTION 2016-17 2017-18 2018-19 2019-20 2020-21
Average Units Sales Per Month** 5000 10000 20000 40000 80000
Average MRP of Product ₹ 699.00 ₹ 799.00 ₹ 899.00 ₹ 999.00 ₹ 1,099.00
Whole Sale Price or Net Realized Value
(@ 40% Mark down on average MRP) (In ₹)
₹ 419.40 ₹ 479.40 ₹ 539.40 ₹ 599.40 ₹ 659.40
Average Value Sales Per Month*
(In ₹ Lakhs)
₹ 20.97 ₹ 47.94 ₹ 107.88 ₹ 239.76 ₹ 527.52
Inventory Value Per Month** (In ₹ Lakhs)
(@ Net C0st Value calculated at 2.75 MF)
₹ 25.42 ₹ 58.11 ₹ 130.76 ₹ 290.62 ₹ 639.42
Total Annual Inventory (In Units) 65000 130000 260000 520000 1040000
TOTAL ANNUAL SALES VALUE***
(In ₹ Lakhs)
₹ 251.64 ₹ 575.28 ₹ 1,294.56 ₹ 2,877.12 ₹ 6,330.24

5. REVENUE VS EXPENDITURE
P R O J E C T E D 2 0 1 6 - 2 0 1 7
DESCRIPTION APR’16 MAY’16 JUN’16 JUL’16 AUG’16 SEP’16 OCT’16 NOV’16 DEC’16 JAN’17 FEB’17 MAR’17
MONTLY REVENUE % SHARE 5% 5% 8% 10% 10% 12% 18% 5% 5% 5% 12% 5%
A
MRP SALES @ 699 FOR 5000
UNITS (IN ₹ LAKHS)
₹ 20.97 ₹ 20.97 ₹ 33.55 ₹ 41.94 ₹ 41.94 ₹ 50.33 ₹ 75.49 ₹ 20.97 ₹ 20.97 ₹ 20.97 ₹ 50.33 ₹ 20.97
B
% EXPENDITURE @ 25% (APPROX
ALL INCLUSIVE MINUS BACK END
OPERATIONS)
25% 25% 25% 25% 25% 25% 25% 25% 25% 25% 25% 25%
C EXPENDITURE (IN ₹ LAKHS) ₹ 5.24 ₹ 5.24 ₹ 8.39 ₹ 10.49 ₹ 10.49 ₹ 12.58 ₹ 18.87 ₹ 5.24 ₹ 5.24 ₹ 5.24 ₹ 12.58 ₹ 5.24
D
MARK DOWN @ 40%
(IN ₹ LAKHS)
₹ 8.39 ₹ 8.39 ₹ 13.42 ₹ 16.78 ₹ 16.78 ₹ 20.13 ₹ 30.20 ₹ 8.39 ₹ 8.39 ₹ 8.39 ₹ 20.13 ₹ 8.39
E TOTAL C+D (IN ₹ LAKHS) ₹ 13.63 ₹ 13.63 ₹ 21.81 ₹ 27.26 ₹ 27.26 ₹ 32.71 ₹ 49.07 ₹ 13.63 ₹ 13.63 ₹ 13.63 ₹ 32.71 ₹ 13.63
F GROSS MARGIN % 54% 54% 54% 54% 54% 54% 54% 54% 54% 54% 54% 54%

6. E X P E N D I T U R E A N A L Y S I S
* REFER PAGE# 7 FOR THE PLANNED EXPENDITURE
DESCRIPTION TOTAL APR’16
MAY’1
6
JUN’16 JUL’16 AUG’16 SEP’16 OCT’16 NOV’16 DEC’16 JAN’17 FEB’17 MAR’17
EXPENDITURE
(IN ₹ LAKHS)
₹ 104.84 ₹ 5.24 ₹ 5.24 ₹ 8.39 ₹ 10.49 ₹ 10.49 ₹ 12.58 ₹ 18.87 ₹ 5.24 ₹ 5.24 ₹ 5.24 ₹ 12.58 ₹ 5.24
DESCRIPTION MINIMUM MAXIMUM
TOTAL EXPENDITURE PER ANNUM ₹ 104.84 ₹ 104.84
AVERAGE EXPENDITURE PER ANNUM ₹ 8.74 ₹ 8.74
PLANNED EXPENDITURE ON OPERATIONS (BARE MINIMUM)* ₹ 7.75 ₹ 10.75
EXCESS/DEFICIT ₹ 0.99 -₹ 2.01

7. THE PEOPLE WHO MATTER
C O R E T E A M M E M B E R S F O R A S U S T A I N A B L E M O D E L
* Profiles that should/could be be added as per business improvement.
* (+) are team members which will be added as per revenue increase based on target plan.
DEPARTMENT PROFILING NUMBER COST/MONTH COST/ANNUM
BUSINESS HEAD : OVER ALL BUSINESS REVENUE & OPERATIONS CEO 1 ₹ 2.50 ₹ 30.00
R & D : DESIGN & BUYING : PRODUCT PLANNING TO BUYING
ACROSS CHANNELS, ENSURES THE PRODUCTS ARE SALE ABLE AND AS PER
CUSTOMER EXPECTATIONS
HEAD BUYER & TEAM 1 (+2) ₹ 1.00 (₹1.75) ₹ 12.00 (₹ 21.00)
SALES : BUSINESS HEAD TO MULTI BRAND OUTLETS (MBO), LARGE FORMAT
STORES (LFS), THIRD PARTY LIQUIDATION, SHOP IN SHOPS (SIS) & WHOLE
SALE
SALES HEAD & TEAM 1 (+2) ₹ 1.00 (₹1.75) ₹ 12.00 (₹ 21.00)
*RETAIL OPERATIONS : BUSINESS HEAD TO THE RETAIL SPACE :
EXCLUSIVE BRAND OUTLETS, KIOSKS & HYBRID BRAND STORES (CLICK &
MORTAR CONCEPT)
RETAIL HEAD & TEAM 1 (+2) ₹ 1.00 (₹1.75) ₹ 12.00 (₹ 21.00)
*BRANDING & MARKETING (ONLINE/OFFLINE) : BRAND
VISIBILITY AND SALES SUPPORT TO ENSURE THAT BRAND RECALL IS ALWAYS
OPTIMUM
MARKETING HEAD & TEAM 1 (+2) ₹1 .00 (₹1.75) ₹ 12.00 (₹ 21.00)
*ANALYTICS / E-COMMERCE BUSINESS : HANDLES THE
PERFORMACNCE OF THE BRAND THROUGH ACCURATE ANALYTICAL SUPPORT
& ALSO MANAGES THE ECOMMERCE BUSINESS LIKE E-COMMERCE FLAGSHIP,
FASHION MARKET PLACE, MARKET PLACE, DISCOUNT STORES,
INTERNATIONAL E-COMMERCE & ONLINE WHOLESALE
PRODUCT HEAD 1 (+2) ₹ 1.00 (₹ 1.75) ₹ 12.00 (₹ 21.00)
CUSTOMER CARE : COMMUNICATE AND TAKE CARE OF CUSTOMER
GRIEVANCES, PRIMARILY FOR ONLINE.
EXECUTIVES 1 ₹ 0.50 ₹ 6.00
SUPPORT STAFFF 2 ₹ 0.25 ₹ 3.00
TOTAL 9 (19) ₹ 8.25 (₹ 12.00) ₹ 99.00 (₹ 144.00)

8. TOTAL FRONT-END OFFICE COST
Excluding other miscellaneous costs which will be subject to the business growth & fine tuning of the cash cycle:
1. Brand outlets / Brand stores.
2. Expanding business in distribution
3. Opening up online stores, servers & miscellaneous.
COST HEAD
BARE MINIMUM
PER MONTH
2016-2017
(PER MONTH)
2016-2017
(PER ANNUM)
MANPOWER ₹ 5.25 ₹ 8.25 ₹ 99.00
OFFICE ADVANCE N/A N/A ₹ 6.00
OFFICE INTERIORS & FURNITURE ₹ 5.00
OFFICE RENTALS (Approx. 1500 Sq. Ft) ₹ 1.00 ₹ 1.00 ₹ 12.00
OFFICE MAINTENANCE (Electricity, Telephone,etc) ₹ 0.25 ₹ 0.25 ₹ 3.00
SALES EXPENDITURE (TRAVEL ETC) ₹ 0.50 ₹ 0.50 ₹ 6.00
BUSINESS TRAVELS ₹ 0.50 ₹ 0.50 ₹ 6.00
MISCELLANEOUS ₹ 0.25 ₹ 0.25 ₹ 3.00
TOTAL ₹ 7.75 ₹ 10.75 ₹ 140.00