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concept developed by
suraj vaidya, Deepak R gorad,
tejashree padwal, priyanka patil,
khushbu chaudhari

Published in: Business
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  1. 1. submitted to:Prof.Ayati Bose
  2. 2. WashNeO1 | P a g eNeed:The summer season in India is hot and especially in the cities which are near the coastal areas. Thisresults in lot of sweating and stains . The problem is aggravated in summer because of hot and humidclimate. People in metros like Mumbai travel through train which is a hectic journey in itself because ofrush in the peak hours.Results:1. Sweat make garments all moist to give out bad odor.2. This results in development of rashes and skin dieses if not washed properly.3. The garment itself starts degrading at faster rate if not washed periodically.Problem:1. The people in the suburban area especially in cities like Mumbai, dont have enough time to do theirlaundry and thy depend significantly on house wife or dhobi walas.2. The washing machine used as one of the option is costly and the same option becomes futile if therepower and water cut.3.The private corporate are highly demanding clean formals to office4. The transport facilities available makes this condition worst.5. Washing in itself has many risks ofa. bleaching of dark clothesb. Color bleeds of dark garments coloring white garmentsc. Further deterioration of garments if washed under careless condition.5. The traditional dhobi walas service have some problems:a. lacks prompt serviceb. The procedure used by most of the dhobiwalas for washing, drying and ironing is quite premitive.For eg for washing they would use a flat rocks and bar of laundry soap and slap your article of clothinghard against the flat rock, a process which was actually meant for bed sheet, lungis and saris. Buttonsare easily broken in this method and the fabric becomes stretched to its breaking point increasing itsdegrading rate. And after all this Dbhiwalas would not take any responsiblity for that.6. The prices charged by the dhobiwalas and even some professional dry cleaners are not cheap andagain one has to drop of their garments to the dry cleaner again zapping up the time.
  3. 3. WashNeO2 | P a g eProposed solution:Our Company would provide end to end washing solutions, where customer can put their garments inthe special package (like zip pouch) to put their garments inside, type the code on the package and smsor register on our website.Then the garment would collected periodic/priority basis treated as per garment fabric and customersrequirement and shipped to customer at right time, right place and right costAdvantages:-The service provided would be very prompt, with in 24 hrs of collection-Cheap washing-Save your time and money and all the frustrations-weather its any kind of stain or any kind of fabric you dont have to tell us anything and we wouldmanage it.-delivered at you or in the kiosk in case you are not available.-Easy payments options like online payment, mobile cash etc- Real time track of your customer-Eco friendly service is provided by using the recycled water, and power generated from moderngenerators.Vision : To be the No1 in the area of customer washing and industrial washing with pick and dropservice.Mission: To give affordable washing- to give 24/7 service-to give quality service-to adopt eco-friendly measures for washing-to earn carbon credits
  4. 4. WashNeO3 | P a g eObjectives: Since the business is a startup the company would open up a branch in one location andthen add new branches in different areas.WashNeo is a laundry service one which will be pioneer in innovative way to service laundry tocustomers. It intends to go green and maintain eco-friendly environment. Excellent customer servicehigh knowledge of business and experience will be at the core of the Washnew laundry Service.Short term objective: To provide efficient service and expand the customer base by 4,000 regularcustomers. To open up 2 more branches. To get contract of as many societies, hospitals, hotels, schools,and government run institutes for laundry. To promote eco-friendly culture of washing clothes. Toprovide the washing in the reasonable market rate possible. To create a good customer relationshipLong term objectives:To be number one in the business of laundry service. To create strong bond with customers. Wheneverthere is a need of wash our companys name should come on the mind. To build a brand followed byfranchising it.PESTELPolitical: The political environment in India is quite stable. Its a democratic country. Even the politiciansare supporting eco-friendly ideas. The present government is conducive for entrepreneurial activities.Political stability problems within the coalition government, the growth of nationalism and theintermingling of religion and politics. Government bureaucracies problem within central and stategovernments. Level of corruption is high.Government has proposed to build more tier 1 cities in the coming decades.Political cohesion and economic reform program by successive governments, such as theopening of Foreign Direct Investment (FDI) to more industries, are expected to offer growthopportunities.Recently the BMC is thinking about reviving the old plan of making it compulsory to have a Gray watertreatment plant in every residential society
  5. 5. WashNeO4 | P a g eEconomy:A mixed economy but largely state-owned or public-controlled. Its unstable influenced byimplementation of economic reforms. Ranked as one of the largest economy in the world. Very highpotential for growth. GDP growth stable and currently around 5.5.Per capita income is low considering 5% of the population is below the poverty line. Exchange rate risk,the rupee is not easily exchangeable although it has become stable in recent times. Balance of paymentcurrent account deficit narrowed down. Economic situation is growing. The middle income group isquite strong and has no time but disposable income. Taxation is progressive the present year no changesin tax structure were made, but a rebate of 2000 for income bracket of 2-5 was proposed.Developed stock exchanges with huge number of listed stocks with free entry and exit to domestic andforeign companies. Banking industry has improved. The government would soon be issuing new licensesof NBFCs . service tax is 12% as per financial plan 2013-14.SocialPopulation wise 2nd in the world, present a strong market opportunities and potential. Labor mobility issecond highest in Asia. Unequal distribution of income amongst various classes Significationunemployment level. Wages offered is low to labor classes. Consumer awareness in increased andgaining momentum. The increasing rate of women in working class. The population of India is young andthis situation will continue t o exist for next 30 years.Technology:Significant opportunities of improvement in technology in field of material science, transport, detectionand tracking systems.EnvironmentThe Climate of Mumbai is a tropical wet and dry climate. Mumbais climate can be best described asmoderate temperatures with high level of humidity. Its coastal nature and tropical location ensuresmoderate temperatures throughout the year, average of 27.2 °C and average precipitation of 242.2 cm(95.35 inches). The temperatures in average about 30 °C in summer and 18 °C in winter. Mumbaiexperiences four distinct seasons: Winter (December–Feb); Summer (March–May); Monsoon (June–Sep); and Post-Monsoon (Oct–Dec).Legal
  6. 6. WashNeO5 | P a g eRules say that dry cleaners are prohibited from discharging solvent-contaminated wastewater from thewater separation process of the dry cleaning machine to any sanitary sewer, septic system, and boiler orstate waters.This prohibition includes separator water from perchloroethylene (perc), petroleum, synthetichydrocarbons, silicon based solvent, and all other types of dry cleaning solvent.Internal factors:People: We would avail the service of man power agency initially to save on theadvertisement expenses and time.People for the management and marketing activities team would compromise of all theentrepreneurs (4 in our case).We would need 16 full time workers for operations.Finance: the startup finance is primarily focused on Plant building, Machines andlabors. The group of 5 entrepreneurs will each invest 1 lakh each. Adding up to 4 lakhand remaining 11 lakh would be taken on term loan. The working capital arrangementwould be made with a public bank under the special scheme for SME. Theentrepreneurs themselves will act as the managing team and there will be no salariesfor them till the time the breakeven point is reached.Location : Kalayan MIDC (Industrial Area). Since kalyan is a junction point it would providean easy access to trains for transport.Service: The types of service initially provided would be limiting to Cleaning, pressing,bleaching, dry cleaning.The cost of machinery equipment would amount to 12 lakh excluding all the propertyexpenses related to leaseArea Covered: We are trying to span area specifically near the railway line where thedensity of population is higher like kalyan, Dombivili, Ulhasnagar, and Thane initially.For people for town amounts to 12 people initially. All the laborers would be employedthrough one of the manpower provider. Since he agreed to provide the initial labor freeof cost (he is my friend) the labor cost will include only the salary.
  7. 7. WashNeO6 | P a g ePeople:Management Team: Management team would consist of all the team members of theproject for looking after Administration, Advertising and marketing activities. Its beenagreed that management team would work without salary till the company reachesbreak-even point.Labor:3 person for routing and transportation1 person at plantTotal: 4 personInitial salary given would be 5,000.The main infrastructure facilities required are:Required Area 1200-1300 Sq.ftPower Requirement 5 kwWater requirement 6-7 KL of waterRaw materials and its availability:The amount required for working material would be on the avareage number of orders recieved perweek. The main requirements are washing powder and cake soap, petrol, stain-removing chemicals,sewing threads, tagging materials (RFID tags), and packing materials. Total annual requirement iscalculated at Rs 50,000. All the materials and consumable items can be a procured from local agencies inthe open market.Suggested CapacityThe proposed dry cleaning unit all kinds of dress and furnishings would be washed driend and ironedwithout damaging its color, shed or embroidery works. The dry cleaning services per annum will be asfollows:Cleaning and pressing per day 100 kgCleaning and pressing per annum 30,000 kgBasisNo. of working days 300 days per yearNo. of shifts 1 per dayOne shift 9 hrs
  8. 8. WashNeO7 | P a g eBasic costing of ProjectA. Fixed Capital Amount in Rs. LakhsLand & Building Own/LeasePlant and Equipments 10.60Total 10.60B. Working CapitalRaw Material (annual) (2 months) 1.00Working Expenses (1month) 0.33Total 2.32Working Captial to be finance as :Particular In LakhsMargin Money 0.92Bank Fiance 2.32Means of financeOwner’s Equity (25%) 2.88Term Loan (75%) 8.64ProfitabilityBased on the sales Turnover and the operating expenses, the profit would be Rs 3.00 lacks per year. Thisworks out to a return on capital investment of 14%. The unit would break-even in 18 months at about40% of the rated capacity.
  9. 9. WashNeO8 | P a g eMarket AnalysisStrength OpportunitiesVery Strong Management Background.Good knowledge about the current market.Availability of Management members who canprovide as multi-utility purposes.Well known with the local geography which we aregoing to cater.Innovative TechniquesTransport: Initially normal bikes after reachingbreak even point would be providing e-bikesTagged Package: Special Package with RFID tagsfor easy identification and classificationOnline Access: Customers can order and evenkeep track on the process the garment is goingthrough till the time it reaches the customerProviding Service at 25% less then the usualpricePower would be suppliedWater would be treated and recycledPick and delivery within 24 hoursProviding 24hrs VVIP serviceFully automated washing with careSemi-Auto MIS reports GenerationThe laundry business in India is largelyunorganized and untapped.The sector is presently underdeveloped,commercial laundry has huge potential to grow.Booming Indian Economy second only to chinalifestyles of significant section of India has beenupgraded.Growth in tourism and hospitality sectors.Consumers currently spending much higher pricefor low quality laundry services.Outsourcing is another trend which is likely to bemore relevant for the laundry industry in thecoming years especially in hospitals, hotels,hostels.Improved lifestyles of a segment of the populationand availability of less manpower for manualwashing will be the primary drivers of growth inthe laundry industry.Weakness ThreatsInitial CapitalInitial CapacityDependence on Public transportAttrition rateCost of serving irregular customers.No Salary till to the management till the companyBreak-Even.Rise in Property rates in the Industrial area.JFSL, which currently operates only in Bangalore,has plans to open 500 Fabric Spa stores in thecountry by 2015, in order to develop a pan-Indianidentity.Wardrobe, the dry cleaning chain set up byDiamond Fabcare and Australia-based BrownGouge in 2008, is also set to expand exponentiallyin the coming yearsWardrobe is planning to open around 80 stores by2015.
  10. 10. WashNeO9 | P a g eTrends of wage is increasing due to InflationThe volatility of current economic conditions mayresult in people spending carefully and cut someexpenses including laundry cost.High Import duties.http://chrmag.com/laundry.aspBasic Operation process flowchartCollection and TransportationArrivalSorting + TaggingLoadingWashing & RinsingUnloadingTumble Drying Ironing/PressingFoldingUntaggingRepackingTemporary StorageTTransfer
  11. 11. WashNeO10 | P a g eBrief Description about the Process with the Innovative techniques proposed1. Offsite collection from Housing Society, Offices, Hospitals, Hotels following the orders given bythe customer. The collection would bea. Periodic (Mostly for standard customers like hospitals, hotels, offices)b. Custom (premium service charge would be charged)INNOVATIVENESS: The special Kiosk would be provided for the later service which would beprovided as per the requirement of customers.The common Kiosk could be place in (you can also see the suggested name in the pic“WASHNEO”)a. Societyb. Officec. Hospitalsd. HotelsThe Kiosk could also be the part of ordering; identification cause special code would be given toit and based on the requirement rfid chips would be embedded in it.2. On arrival the garments would be dumped to the dumping area to make it ready for furtherprocess of sorting3. Sorting and tagging the garments for giving respective wash.INNOVATIVENESS: The RFID tags attached to packages would allow easy identification ofpackages and the kind of wash it need based on customer order. If the customer has chosen
  12. 12. WashNeO11 | P a g edefault option while ordering, then the laser technology would be used to automatically sort thegarment as per respective treatment given.The tags (RFID tags) would be attached to deposit packages and the garment itself beforesending it for treatment. The rubber made RFID are heat and water resistant.4. Loading the sorted garments for respective treatment given.5. Treatment carried out on the respective garments.6. Unloading the treated garments for further process7. The treated clothes would be sent to tumble dryer based upon the requirement and thematerial of garment followed by ironing and foldingINNOVATIVENESS: Automated folding machine folding thousands of garments under an hourcutting again the labor cost.8. Untagging the garments9. Repacking the garment in the new same pack the customer initially had deposited the garments.The package would be treated before it’s used for packing.10. After repacking the garments are ready to be shipped to customer depending upon the scheduleset with respect to the kind of service set i.e.a. Standard service: Where a periodic contract is in placeb. Priority Service: Where the service is for VVIP peopleTill the respective it would be stored in storage room11. Transfer: The garments is shipped to the customer at right time at right place and at right cost.INNOVATIVENESS: Prompt service with the real time tracking would be provided.Potential Problems:First during the dry cleaning cycle, on some garments, the dark color bleeds and transfers intothe nearby colors which is manufacturers responsibility. We would try to perfect lasertechnology to detect fabric defect and dye bleeding potential and inform the customer aboutthe same. Based upon the decision taken by the customer the said garment would be given ageneral wash or a custom wash to handle the dye bleeding problems.
  13. 13. WashNeO12 | P a g eSTPD ANALYSISMARKET INFORMATIONFrom 1981 to 2013 the estimated population of INDIA has grown from 85 making india thesecond most populous country in the world. This growth rate has increased the demand forvarious products and services, and one of the services is the proposed business. People in bigcities are now inclined to use more sophisticated measures to cleaning their clothes. Thesepeople range from middle class to upper class.Target CustomersThe major target market for the dry cleaning services will depend on the location wheredry cleaning business is situated. The target customers for proposed business will notonly be general public but also the commercial sector i.e. hostels, catering companies,film industry and hospitals.
  14. 14. WashNeO13 | P a g eSalesOur model will include free services. For example, we will have discounts for nonprofitorganizations. Through this, we will build an excellent reputation in our community. We willalso make contracts with retail stores to have their garments cleaned and altered with aspecial discount within an agreement in place.First time customers will be offered 25% off their next order. A coupon will be attached totheir order when they come to pick it up. This is one of our strategies to bring customersback to our business and build our customer base. In addition, customers are not chargedextra for same day service.AdvertisingThe company will use effective ways to capture customers’ attention and response. Flyerswill be distributed, advertisements will be mailed, internet networking will be utilized andflyers will be placed on vehicles. All these messages will be supported by promotions. Also,word of mouth will be the best referral.The company maintains a strong budget for effective advertising. The software thecompany plans to use has an internet link which makes it possible to email customers withpromotions and sales. This is considered an excellent communication between thecompany and its customers.The owners are involved in the community and the and also have relationships withbusiness persons .. This should also lead to referrals.The product transaction will be handled by credit cards, cash and checks. We will havesales people for the route and they will earn a percentage for each new customer they add.We will survey our customers by asking them how they heard about our business. This wayhelps us improve and develop our sales strategy.Positioning:WASHNEO will position themselves as a professional, trustworthy, residential house cleaningservice. WASHNEO will leverage their competitive edge of human capital investments to achievethe desired positioning. The next topic of training involves professionalism. Employees are giventhe tools necessary to impress the most affluent clients. Professionalism is a skill that is usedthroughout the service call,from the way the employee greets and interacts with the client, tothe way they clean, to the waythey act when they break that priceless vase (which in the inevitable case that something isbroken, WASHNEO has specific guidelines for the employee to follow to resolve the conflict.WASHNEO will also be creating the appearance of professionalism through the use of uniformsandlarge magnetic sign affixed to the side of the vehicles used.
  15. 15. small fans in mobile.*mobile charging throughbluetooth.Suraj*muti-utility piece ofgarment made ofbreathable fabrics.*x-ray embedded inmobile