1. A Journey to
RE-CREATION.

3. February
Dream phase:
*Great ambition
*Determination
March
Concept phase:
*Industry research
*Affiliation build up
*Technology development
2013

4. Business idea
Unutilized
materials
Useful
products
Entirely for-profit No values in mind

5. April 24 2013
A huge blow to the nation

10. Impact 1,138 people died
 150,000 injured
 5th worst industrial disaster in the world
 7 national mourning days announced

11. April onwards
We went into soul searching

12. Findings“Rana Plaza was not the first tragedy to occur
in Bangladesh’s garments industry and
without intervention, more might follow.”
John A Quelch
Margaret L Rodriguez
Harvard Business School
9-514-04
February 4, 2014
This was not an accident!

13. 1996-2000 2001-2005 2006-2010 2011-20151990-1995
17 December 1990 – A fire
at Sareka Garments killed 32
1996 – A fire killed 22 at Lusaka
Garments near Dhaka
1997 – 27 died at Tamanna
Garments (fire incident)
1997 – 22 died at Rahman &
Rahman Apparels
25 Nov 2000 - 53 people
killed at a fire at the Sagar
Chowdhury Knitwear and
Garment factory
2001 - 24 killed at Maico Sweater
2002 - 12 killed at Global Knitting
2004 - 9 killed at Misco Supermarket
Building and 64 died (3 incidents) in
different locations
2005 - 23 killed at Shan Knitting, Godnail,
in January;
11 Apr 2005 – 64 people are killed when
the Spectrum factory near Dhaka
collapses.
23 Feb 2006 - A fire killed 67 people
at the KTS Textile Mill
2006 - 6 died at Jamuna Spinning Mill
2006 - 22 died at Phoenix Garments
(building collapse)
25 Feb 2010 – A fire kills 21 workers
at Garib & Garib Newaj Factory
14 Dec 2010 – A fire swept through
Ha-Meem Group factorykilling at
least 29.
24 Nov 2012 – A fire at the Tazreen
Fashions factory near Dhaka kills
124.
26 Jan 2013 – 8 dies at the Smart
Fashions factory
24 April 2013 – Rana Plaza: 1,133.
08 May 2013 – A fire at the Tung
Hai Sweaters Ltd. killed 9 people.
09 October 2013 –10 killed in a fire
at the Aswad Composite Mills Ltd
32 124 132 135 1,284
Timeline of “INCIDENTS”
Total death toll: 1,707
Source: Stein &
Partners

14. W H Y
Unfair distribution of profit Only mass sales translate to survival

16. W H O
can save the industry?
Government of Bangladesh RMG clients

17. Disney Corporation shifted all its production from
Bangladesh

18. Protects $21 billion RMG industry from extinction
78%
of country’s
export
15%
of country’s
GDP
9.6M
Employment

20. June
Concept modification: Value centered enterprise
2014

21. Shanjibon™
Unutilized
materials
Unused
labor
Environment
concern
translates to
Sustainable business
Business only with RMG units that would invest the revenue from jhoot for workers’ safety and ETPs
1 2 3

22. Unutilized
materials
Jhoot (scrap of clothes)
1

23. Yarn
The major product of
Shanjibon.
Handicraft
Premium product made
from jhoots, old thrown
away or donated clothes.
Paper and
Shopping bags
Produced from by-product of
yarn production
Cushion fillings
The unusable jhoots and
smaller portion of jhoots
from residue of the
making of handicraft.
Our Products
Diverese, multipurpose, green

24. Unused Labor
Hijras (transvestites)
2

25. Situation
 Ostracized from society
 No respectable means of living
 No contribution to economy
 Negative image: harassers, prostitutes
and beggars

26. C H A N G E
the life of hijras in Bangladesh160,000
First organization to
specifically employ
Respectable and decent
earning opportunity
Promote social inclusion

27. 3 Environment
concern
Most have no
effluent treatment
plants (ETP)
Nearly 4million
people directly suffer
the consequence
Around
35,000𝒎 𝟑
of toxic waste
from RMG sectors

28. = stark OUR BUSINESS PHILOSOPHY
Mission:
Turning waste scrap of clothes from RMG factories to resources.
Vision:
To make RMG business more sustainable and in the process
improve workers’ safety, reduce pollution and empower the
socially ostracized hijra (transvestite) community.
Value creation:
1. Bring revenue and save cost for the RMG units of Bangladesh
2. Empower transvestites of Bangladesh
3. Reduce environmental pollution

29. Social Impact
“Buying jhoots only from RMG units that would
invest the revenue for workers’ safety and ETPs”
After breakeven, a
certain portion of net
profit will be allocated
to BGMEA
Train and employ 140hijras
in 5 years per franchise
Inject $2 million
revenue to RMG per
franchise
Garbage reduction:
790tones
SROI: 16.43
For $1 of investment, there will
$16.43 worth of social
contribution

30. Total Jhoots: 351,000tonnes
Total earning potential: $318 million
Total revenue potential for RMG: $178 million
High industry growth
Market Potential

31. Local Expansion
2 other factory franchises in 3
years located at Export
Processing Zones.
Far in the future, Shanjibon™
wants to spread near every
major garments hub.
Shanjibon™ Global
Franchise
The innovation once becomes
successful in the entire nation can be
franchised to Sri lanka, India,
Cambodia, Laos, Vietnam and other
top RMG exporters that are facing
similar problems like that of
Bangladesh.
Scalability
Shanjibon™ Botique Store
Handicraft products of Shanjibon have
high potential due to design and support
of social cause.
Shanjibon™ Online Store
Depending on internet penetration and
increased motivation to buy online in
Bangladesh, Shanjibon™ has plans to
start its own online.

32. September
Pilot project
preparations and
fund collection
2015
*Factory space lease
*Initiation of pilot of yarn
production
*Trail order for handicraft items
2014
January till now

33. Technology
Supported by:
New synthesis of machineries from existing technology
Under the collaboration of Engr. Mohammad Golam
Mostafa, Prof Qamrul Islam and Zafi Hyder

37. = stark Yarn and Paper making Process

38. Sales and Marketing
Competition
Branding
Distribution
Partnership
PromotionProjection

39. Competition
Why would RMG units sell jhoots and buy yarn from Shanjibon™?
Shanjibon™ almost buys all
types of Jhoots. Even
Sheras (jhoots that can’t be
processed) are shaped to
use as cushion filling by
Shanjibon™.
Can sell all jhoots
RMG units can buy yarn
from Shanjibon™ at a price
much lower than that of
imported yarn
Save cost
Fulfilling the contract for the
trade would open doors to a
number of high-end brands
as clients
Get more new clients
The price offered for jhoot is
5 times the existing price
Highest revenue from waste
Selectively buys
jhoots at minimal
price and exports
competitors:

40. HandicraftYarn
Targets entirely the RMG units.
Buy with the highest price in the
industry and sell at 18% less
price compared to import price.
Paper and shopping bags
To be the cost leader in the
market. Ensure both sales and
product concept to be successful
in the market.
Branding
Targets niche market:
Income High
Inspired to contribute to
society
Offerings: Unique, attractive items
Positioning with social cause

41. Handicraft
The product line with highest potential
2 batch trail ordersfrom reputed brands
Ms Afsin Trisha, Founder
and Chief Designer at
Kagojami
Great designers in the design team:
Ms Sarah Ahmed
& Sahila Sanzana,
design prodigies

47. Distribution and Promotion Partners:
Handicraft
Advertisements at
Social media
platform
Postersat
partners’ store
Features in
mass print media
Shelf Space Donation Basket

48. = stark Distribution
Located near garments hub
Low to no transport cost
Specialized local
distributors
Yarn Paper

49. = stark
2015 2016 2017 2018 2019
Sales $148,786 $366,497 $566,000 $795,134 $1,111,021
Expense $177,173 $370,345 $498,233 $684,845 $911,601
Net profit -$28,387 -$3,848 $67,767 $110,289 $199,420
$148,786
$366,497
$566,000
$795,134
$1,111,021
$177,173
$370,345
$498,233
$684,845
$911,601
-$28,387
-$3,848
$67,767
$110,289
$199,420
Sales Expense Net profit
Sales Projection

50. Financial Summary
Start-up expenditure:
$145,778
Internal Rate of return:
20.1%
Profit from 2017 onwards
Consistent positive cash flow

51. = stark MEET THE TEAM
Ahmed Istehad
Shoumik
Chief Executive Officer
Al Amin Shuvo
Chief Marketing Officer
Abdullah
Muhammad
Dhrubo
Chief Financial Officer
Jabid Raiyan
Chief Technical Officer
MD Tapan Mahmmud
Faculty Advisor
Assistant Professor
Bangladesh University
of Professionals

52. Board of Advisors
Tapan Mahmud, (Legal expert)
Assistant Professor
Faculty of Business Studies
Bangladesh University of Professionals
Dr Qamrul Islam(Operational expert)
Professor
Department of Mechanical Engineering
Bangladesh University of Engineering and Technology
Muhammad Abdul Gani(Training and Support)
President
Human Safety Foundation
Ｚａｋｉ Ｈａyｄｅｒ (Technical expert)
Managing Director
Human Safety Foundation
Md. Nurul Alam, FCMA, ACA,
(Financial expert)
General Manager
Janata Bank
Accounts & Financial Management Division,
Head Office
M.K.H. Khasru (Successful
entrepreneur at RMG industry)
Managing Director
Newgen Group, New Generation Fashion
Limited, Nextgen Style Limited, Needle-Work
Limited, Everest Washing Plant Limited
Engr. Mohammad Golam
Mostafa, (Textile Expert)
General Manager
P.N. Composite LTD
BSc in Textile Engineering
Bangladesh University of Textiles

53. Board of Advisors
Kanak Aditya, (Business Partner)
Owner
Deshal Fashion
Anjan Dutta (Business partner)
Owner
Anjan’s Fashion House

54. MilestonesThank you!

55. Appendix

56. Assumptions
1 USD= 80 BDT
Discount rate is considered as 10%
Time frame: 5 years
Waste disposal cost*: $1,000,000/MT
Tax rate: 30%
Qualitative to quantitative conversion factor: EMES standards
Increased Self-Esteem: 5%
Improved Lifestyles: 3%
*Source: Cleaner is Cheaper, The Energy and Resource Institute
publication, 2007, IBSN 81-7993-118-8

57. SROI breakdown
Wage earned by hijras: 17700+39860+45174+60440+67541=
$230,715
Income tax by government: 230715*15% = $34,607.25
Tones of waste reduced: 790 tonnes; money saved from waste
disposal: $790,000
Worker’s safety improvement: COGS+ cost savings+ profit
distribution = 770,804.86+526215.402+24528 = $1,321,548.262
Qualitative to quantitative conversion factor: EMES standards
Increased Self-Esteem: 230715*5%= $11535.75
Improved Lifestyles: 230715*3%= $6921.45
Total social contribution: 230715+ 34607.25+ 790000
+1321548.262+11535.75+6921.45 = $2,395,327.712
*3rd EMES International Research on Social Impact Measurement
Phil Sital-Singh and Robin John
London South Bank University, United Kingdom
Investment:
$145,778
SROI=
𝑆𝑜𝑐𝑖𝑎𝑙 𝐼𝑚𝑝𝑎𝑐𝑡
𝑇𝑜𝑡𝑎𝑙 𝐼𝑛𝑣𝑒𝑠𝑡𝑚𝑒𝑛𝑡
= 2395327.712
145,778
= 16.43
Social contribution indicators:

58. Products 2016 2017 2018 2019
June July August SeptemberOctober NovemberDecember Total
Cash Inflow
Beginning Balance$60,000 $49,040 $40,866 $36,046 $32,158 $30,746 $29,999 $60,000 $31,613 $27,765 $95,532 $205,820
Gross Profit $2,310 $3,696 $7,060 $11,177 $16,908 $17,573 $21,074 $78,658 $203,292 $309,598 $427,607 $596,618
Total inflow $62,310 $52,736 $47,926 $47,223 $49,066 $48,319 $51,073 $138,658 $234,905 $337,363 $523,139 $802,438
Operating Expense
Salaries $1,600 $1,800 $2,200 $2,500 $3,200 $3,200 $3,200 $17,700 $39,860 $45,174 $60,440 $67,541
Rent $2,200 $2,200 $2,200 $2,200 $2,200 $2,200 $2,200 $15,400 $32,850 $35,698 $43,978 $58,733
Marketing $0 $0 $800 $5,000 $7,000 $7,000 $7,000 $26,800 $32,850 $20,000 $15,000 $15,000
Legal $150 $150 $150 $0 $0 $0 $0 $450 $1,500 $2,000 $2,000 $2,000
Maintenance $200 $200 $200 $350 $400 $400 $400 $2,150 $7,650 $16,804 $46,247 $62,840
Interest $750 $750 $750 $750 $750 $750 $750 $5,250 $10,500 $10,500 $10,500 $10,500
Recruitment and Training$4,500 $3,000 $1,800 $0 $0 $0 $0 $9,300 $8,000 $6,000 $6,000 $6,000
Utilities $2,000 $2,000 $2,000 $2,500 $3,000 $3,000 $3,000 $17,500 $48,930 $51,612 $60,887 $64,118
Insurance $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $8,750 $17,500 $17,500 $17,500 $17,500
Stationary $120 $20 $30 $15 $20 $20 $20 $245 $500 $500 $500 $500
Miscellaneous $500 $500 $500 $500 $500 $500 $500 $3,500 $7,000 $7,000 $7,000 $7,000
Total Outflow$13,270 $11,870 $11,880 $15,065 $18,320 $18,320 $18,320 $107,045 $207,140 $212,788 $270,052 $311,732
Net Cash before Tax$49,040 $40,866 $36,046 $32,158 $30,746 $29,999 $32,753 $31,613 $27,765 $124,575 $253,087 $490,706
Less Tax (30%) 0 0 0 0 0 0 0 0 0 29043.09 47266.54 $85,466
Rolling Cashflow$49,040 $40,866 $36,046 $32,158 $30,746 $29,999 $32,753 $31,613 $27,765 $95,532 $205,820 $405,241
Ending Balance $31,613 $27,765 $95,532 $205,820 $405,241
Shanjibon™
Pro Forma Cashflow Statement
2015

59. Details Cost
Pilot test $7,670
Legal and registration $2,120
Factory setup $28,680
Recruitment and Training $12,840
Machinery $78,968
Utility deposits $7,000
Advance Salary $5,000
Miscellaneous $3,500
Total start-up expense $145,778
Start-up Expenditure
Shanjibon™

60. 2015 2016 2017 2018 2019
Current Assets
Cash and Equivalent $4,366 $518 $68,285 $178,573 $377,994
Inventories $0 $2,500 $1,000 $1,500 $1,748
Short term investment $1,200 $2,000 $2,180 $2,221 $2,368
Recievables $3,000 $1,256 $2,569 $1,895 $1,400
Prepaid expenses $7,000 $0 $0 $0 $0
Fixed Assets $15,566 $6,274 $74,034 $184,189 $383,510
Property and plant $30,000 $37,000 $48,000 $55,000 $79,000
Machinery $75,000 $68,000 $60,450 $51,000 $42,850
Total Assets $120,566 $111,274 $182,484 $290,189 $505,360
Current Laibilities
Accounts payable $0 $0 $5,600 $4,200 $12,000
Short term debt $15,000 $0 $0 $0 $0
Long term Liabilities
Loans and bonds $63,000 $85,000 $120,000 $135,000 $110,000
Owners' Equity $42,566 $26,274 $62,484 $155,189 $395,360
Total Liabilities and Equity $120,566 $111,274 $182,484 $290,189 $505,360
Pro forma Balance Sheet
Shanjibon™

61. Products 2016 2017 2018 2019
June July August SeptemberOctober November December Total
Yarn (kg) 3000 4800 5000 8000 10,000 10,000 10,000 50,800 146,865 212,974 279,000 385,324
Paper (bundles) 0 0 5,000 8000 14000 16000 18000 61,000 113,000 173,000 254,000 345,000
Shopping bag (piece) 0 0 3000 3100 3400 3900 4200 17600 35080 67976 88,959 105,978
Handicraft items (units) 0 0 0 0 200 0 800 600 7000 13000 19,000 30,000
Revenue $3,000 $4,800 $12,950 $20,465 $32,792 $34,585 $42,758 $148,786 $366,497 $566,000 $795,134 $1,111,021
Less. COGM 690 1104 5890 9288 15884 17012 21684 70128 163205.35 256402.1 367526.72 514402.76
Gross Profit $2,310 $3,696 $7,060 $11,177 $16,908 $17,573 $21,074 $78,658 $203,292 $309,598 $427,607 $596,618
Operating Expense
Salaries $1,600 $1,800 $2,200 $2,500 $3,200 $3,200 $3,200 $17,700 $39,860 $45,174 60,440 67,541
Rent $2,200 $2,200 $2,200 $2,200 $2,200 $2,200 $2,200 $15,400 $32,850 35,698 43,978 58,733
Marketing $0 $0 $800 $5,000 $7,000 $7,000 $7,000 $26,800 $32,850 20,000 15,000 15,000
Legal $150 $150 $150 $0 $0 $0 $0 $450 $1,500 $2,000 $2,000 $2,000
Maintenance $200 $200 $200 $350 $400 $400 $400 $2,150 7,650 $16,804 46,247 62,840
Interest $750 $750 $750 $750 $750 $750 $750 $5,250 $10,500 $10,500 $10,500 $10,500
Recruitment and Training$4,500 3,000 1,800 0 0 0 0 $9,300 8,000 6,000 6,000 6,000
Utilities $2,000 $2,000 $2,000 $2,500 $3,000 $3,000 $3,000 $17,500 48,930 $51,612 60887 64118
Insurance $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $8,750 17,500 17,500 17,500 17,500
Stationary $120 $20 $30 $15 $20 $20 $20 $245 500 500 500 500
Miscellaneous $500 $500 $500 $500 $500 $500 $500 $3,500 7,000 7,000 7,000 7,000
Total $13,270 $11,870 $11,880 $15,065 $18,320 $18,320 $18,320 $107,045 $207,140 $212,788 270,052 311,732
Income before Tax -$10,960 -$8,174 -$4,820 -$3,888 -$1,412 -$747 $2,754 -$28,387 -$3,848 $96,810 $157,555 $284,886
Less Tax (30%) 0 0 0 0 0 0 826.2 0 0 29043.09 47266.539 85465.782
Net Income -$10,960 -$8,174 -$4,820 -$3,888 -$1,412 -$747 $1,928 -$28,387 -$3,848 $67,767 $110,289 $199,420
2015
Pro Forma Income Statement
Shanjibon™

62. Years Cash-In Cash-Out Net Cash Flow
0 145778 -145778
0.5 28387 -28387
1.5 3848 -3848
2.5 67767 0 67767
3.5 110289 0 110289
4.5 199420 0 199420
Total Inflow Total Outflow Total Net Flow
Total 377476 178013 199463
Shanjibon
Internal Rate of Return (IRR) 20.08%
Net Present Value $33,390.99
Profitability Index 1.2291
Equivalent Annual Annuity $9,961.05
Break Even Period 3.5

63. Qualitative conversion
Revenue from a Shanjibon™
franchise can be used to buy
around 76waste disposal plant
with capacity to process
228𝒎 𝟑
of wastes.
BIOROCK-E MID SIZED ETP
Cost: $300,000

64. Financial Summary
Start-up expenditure:
$145,778
Internal Rate of return:
20.1%
Net present value:
$33,391
Breakeven in 3.5years

65. Thank you!