2. EDC – Nirmaan Livelihoods Initiative
VISION
To enable Social & Economic empowerment of the
people belonging to marginalized sections of the
community
MISSION
To facilitate and promote Entrepreneurial spirit among th
under privileged sections of the society.
A Production Unit (Tailoring)
A business incubation centre
Contd..
www.nirmaan.org February 27, 2012
3. EDC
OBJECTIVES
To establish a production cum internship model
to produce goods/services based on
market demand and earn sustained
income
to inculcate marketing skills, team work,
self-confidence
Provide Financial and mentorship assistance
for interns to setup their own
enterprise(MSME)/SHG
Contd..
www.nirmaan.org February 27, 2012
4. EDC
Human Resources
Supervisor : A Supervisor cum trainer
having experience in fashion technology for
quality control and to teach the interns new
designs to make good products.
Executive Manager : A Manager to
oversee the functioning of the unit and
market the products made by the interns
and get new orders.
25 interns / trainees (Already skilled/trained in
Nirmaan Vocational Training Centre)
Contd..
February 27, 2012
www.nirmaan.org
5. EDC
Current Status
First batch of interns has been selected
Started to get orders and make products
Contd..
February 27, 2012
www.nirmaan.org
6. EDC – Proposal for 1 year
S.No Item/Function Cost per month Cost per year
(INR) (INR)
Capital Expenditure
1 House Advance 60000
2 Infrastructure (fixtures, 25 stools, 5 chairs, 2 tables, carpet, locker, fabric storage units) 60000
3 Standard Sewing Machines (25) 225000
4 Initial Marketing 15000
5 Entrepreneurial Seed fund 200000
Sub Total 560000
Recurring Expenditure
6 Phone connection with outgoing call facility 500 6000
7 House Rent 12000 144000
8 Executive Manager -- Marketing cum Administrator Salary 10000 120000
9 Material 5000 60000
10 Electricity 2000 24000
11 Machinery maintenance 500 6000
12 Miscellaneous 10000
13 Training sessions 30000
Sub Total 30,000 400000
Grand Total (INR) 960000
Contd..
February 27, 2012
www.nirmaan.org
7. EDC
Expected results at the end of 1st year
20 - 25 entrepreneurs(single/group) pass out
from EDC and work in their own
setup(enterprise) earning an average income
of Rs. 6000 per month.
50 trainees in the EDC
Improvement in the social and economic
positioning of interns in Anjaiah Nagar locality.
EDC ready to get into self sustainable
mode.
Contd..
February 27, 2012
www.nirmaan.org
8. EDC
Strategy to make EDC Self-Sustainable after the 1st year.
• Increase the number of trainees from 25 to 50 and spend 1/3 rd of the
profits through orders on the EDC recurring expenses like rent,
electricity, salaries etc.
• This will break even the EDC expenses for the year and will generate
profits which can be used in scaling up EDC for the next year.
Expenditure (2nd year) Amount
25 new machines 225000
Recurring expenditure 400000
TOTAL expenditure 625000
Amount earned on orders(for 50 interns) (50 * 4500 * 12) 2700000
Amount to the interns (67% of the earnings on orders)(50*
3000*12) 1800000
Profit from the orders in 2nd year 900000
Net Profit 275000
Contd..
February 27, 2012
www.nirmaan.org
9. EDC
Highlights of the project:
• Complete production cycle from marketing to
delivery will be taken care by the interns with
some assistance from the mentors.
• Generates 25 entrepreneurs in the first year
who will be able to employ more people in the
future.
• Project enters into self-sustainable mode by
the second year.
• Project can generate profits(from the second
year) which can later be used to scale up the
project. www.nirmaan.org
February 27, 2012
