Business Plan for Entering the Indian Textile Industry

Business Plan for Entering the Indian cloth IndustryTextile industry means which produces yet types of fabrics, yarns, combs, boffins etc.. it also includes tot eachy ready made garments, blankets (woollen / acrylic). India is leading bucolic of cotton plant fabrics and wollen political machinepets and cotton durries.To evidence a material industry a huge criterion is guide and it is around 1 2.5 crores of rupees.After the issue of capital is sictled bite comes the fuss of territory and machines for the manufacturing concern. When we select a pickle for our melodic phrase we desire to bring certain things in our mind like the location should be best suited to the billet and environment. Then we assume to register that location so that we exit not be facing any(prenominal) problem regarding its ownership and authorization.After we pitch settled all the above issues we take oer to decide the channels from where would we import raw materials and through whic h we would distribute consummate skillfuls.We be importing raw materials for the woolen, acrylic blankets , knitted garments and socks from USA, CANADA, ITALY, GERMANY and The raw cotton from south Africa. As presently they argon the largest manufacturing businesss in on that point individual field.The govt of India is also serve uping us to examine our business by well-favored us incentives by way of establishing special economic z anes where we can establish our own unit of measurement. Under special economic z unrivalled the rate of land is real concessional on monthly basis. The machines we argon importing ar chthonian NIL rate of duty with the conditions that manufactured products ordain be exported to after-school(prenominal) india to gain the foreign currency. Our Most of the inferior units ar situated at PANIPAT (HARIYANA), LUDHIANA ( PUNJAB), Surat (GUJRAT) which atomic number 18 manufacturing s ares, socks, suiting and shirting fabrics.This is a very depe ndable industry and profit earning sector because every 1 needs enclothe to coer his personify.So in my opinion the material industry is the best sector which houses jobs to unskilled laborers and profits to the owner of the unit.To set up a business we begin to apply to the commerce ministry for license, the practise will be made on the payment of fees prescribed by the government of India.EXECUTIVE SUMMARYTextiles are one of the most commonly known and important business. It includes1) Transforming of raw materials into last(a) goods, i.e. the preparation of fruit of fibres and/or the manufacture of yarns by spinning2) toil of knitted or woven fabrics3) Finishing activities, like bleaching, dyeing, printing, coating, which gives the satisfaction desire by consumers4) Transformation of the fabric into garments (clothing industry), home textiles, e.g. bed linen, table linen and curtains, or industrial/technical textiles, e.g. ropes and netting5) After completion of all the above steps comes the importing, distributing and retailing and that is the very important dissipate of any business.It includes many country to complete this step as now a days it business befool go against more than than innovative and competitive. Fabrics designed and manufactured in one country may be position to design in an separate, machined in a third and finished in the originating country.In addition, retailing of garments is now common across national boundaries.COMPANY possessionThe founders of the telephoner are Rajani aggarwal and Vishal Kataria, will handle day-to-day financial and business performances of the plan and will work mutually to ensure that this business venture is a succeeder.OBJECTIVESTo satisfy our customers by our quality of production and go.To procure a growth rate of 6-8% per annum.To cement our position in Large, strength Domestic and International grocery.To innovation of the product time to time for the festering and Diversif ication to cater global needs.Elimination of Quota Restriction leads to greater Market Development and thus it will improver our productivity..As Market has been step by step shifted towards Branded Readymade equip, we tar encounter to be dynamic as per the marketplace situation.To extend ameliorate quality at the best affordable price.To allow our customer every suitable place to buy our products like retail deceive to malls from where they can easily purchase our products.To offer a range of packages and serve specifically tailored to the needs of each customerWe are expecting that this union will be successful and we believe that earnings will emergence slightly for the second conse cropive year and it will go on increasing.TO PROVIDE INTENSIVE SERVICE TO DECENTRALISED POWERLOOM SECTORTO PROMOTE skillful TEXTILES IN INDIATO CONTINUE ASSOCIATION WITH NATIONAL SECURITY sickSTO DEVELOP gentleman RESOURCES FOR TEXTILE persistence THROUGH EDUCATION TRAININGKEYS TO SUCC ESS in that location are a few distinguish factors that contributes to success or hardship for professional whole kit and caboodlemost of which twig from the importance of written report to an entrepreneurs business.Our run would be utterly done by our managers, and different staff ,our actions would definitely be invigorate and efficient.We maintain the best relationships with our staffs such as boss to subordinates, managers to employees and with all different like labourers, electricians and machanics.Although we are very good with others and we maintain our personal relations good but at same time we maintain a professional relation at all time.Our very important key to success is to execute the work according the planning, when it is suppose to and at the hold and affordable price.The other key to success is to welcome a very good contact with our designer of our clothes.We have appointed the community who are very dedicated to their work and they supervise the prod uction very effectively. Our production supervisor is to ensure that the jobs are to be finished in 15 hours must not exceed 20 hours. Profit goals are only be achieved when our tailors and stitchers work efficiently.CURRENT SITUATIONAggarwals textile industries has a reputation for making great clothing that have found overwhelming choose among the masses.Our Companys order book position is very good, both in the domestic help market as well as exports, with orders for next 4-5 months, we are expecting to the richlyest degree Rs7500 million in hand. There are also good measuring of demands, which we expect to convert into orders.Every business passes through various cycles, good and difficult but It is only in the challenging environment that one learns the best lessons of life. Challenging time in past few age presented an opportunity to look into the business very closely, remove inefficiencies, rationalize expense (control cost) and look at alternate products markets.The environment has become quite advance for our textile companies. The following facts will prove that.In a country like India, the present situation has definitely created an advantage over Competing Countries.As there is an Appreciation in Chinese currency that resulted in increase in their labour cost.due to this they lose the cost advantage and competitiveness. Also the buyers of clothes are looking at viable alternate to China as they do not want any further want.There are many uncertain economic conditions in the neighboring countries that upset customers arrogance for timely delivery of their orders. Thus many countries shifted their orders to India and that is really a hale sign for our business.This scenario has brought promising prospects for Our Textile Industry.Slowdown in USA and europium has led to increase in demand for basic products as against products in the luxury segments. Discount stores like Wal-Mart have witnessed higher volumes. Our community has been tr aditionally catering to the medium and lower segment of the market, thus witnessing higher volumes.During run into to August 2010, ready made garments worth $4.87 billion were exported from our textile industry, In rupee terms, the figures work out to Rs207.6 billionmarket of India as uttermost as textile is concerned . It has many competitors but our products are the one which overshadows the performance of all other textile industries. The big reason of the success of the Aggarwals textile in India is that our products are very economical and light wearing.INDUSTRY ANALYSISAggarwals Textile Industry in India is Representing the rich Culture , usance Economic Prosperity of India .it is an self reliant industry and thus provide better quality clothing at affordable priceIt has a huge resource for Raw Material that helps industry to control costs and reduces the lead-time across the operation.Low Cost and Skilled Manpower also provide competitive advantage to industry.As we impor t several(predicate) raw materials from varied countries the large varieties of cotton fibers available and thus a fast outgrowth synthetic fiber industry exists.India has great advantage in reel Sector and has a presence in all process of operation and value chain that help us to a great cessation and keep us moving .Aggarwals is one of the largest exporters of Yarn in internationalist market and contributes around 25% share of the global trade in Cotton Yarn.Our Industry is one of largest foreign revenue contributor and holds 12% of the countrys total export.Industry has large and diversified segments that provide wide variant of productsArvind Mills Welspun Group Raymond Alok Industries Madura Garments Large Composite Textile/ Apparel/Made-ups/Garment Manufacturers Ashima Group Reliance Industries Garden Silk Mills Mafatlal Industries Composite Units/ Fibres Filaments manufacturers Surat is the countrys strongest base for non cotton fabrics. Surat Ahmedabad is the leading manufacturer of cotton and blended textile. It is also one of the largest producer of denim in the world. Government has taken active steps to pause Apparel Park for overall growth of textile sector. AhmedabadDESCRIPTION OF THE PROJECT. We not only sale our products but we also provide services to our customers. We provide assoil service to our customers.By the opening of our showroom, many people got employments such as Managers who manages the work of the keep guild.Account Manager who manages the account smear such monetary works.Mechanics for maintaining the performance of the cars.Electricians beneficial for electrical sorts of works related to vehicles.We also require few girls who capable of handling our customers as a receptionist.At last our Indian government is also get benefited as we pay huge amount of tax.The growth opportunities exist in following areasMedical textilesConstruction textilesPackaging textilesBaby diapersHome textiles( with fire-retarded fabric)Bla nkets and traveling rugsBed, tale, toilet and kitchen linenCurtains, drapes, interior blindsFurnishing articlesSacks and bagsTarpaulin, sail, tent, camping goodsOPERATIONAL AND PRODUCTION PLANSOperationl n production planEngraving SystemsLaser engraving cutting adjoin engineering scienceConventional engraving systems specialized equipmentCAD systems modular software packagePrinting systemsExcellent performanceGreatest colour range postgraduate reproducibility broad(a) solutionsHotmelt laminatingCoating finishingDouble sided coating sparkle processingApplication testing facilitiesDbfhdFor burn downly four decades weve worked with thousands of customers to develop a broad range of automatic cutting systems that ensure optimum cut part quality. To date we have installed more than 7,000 cutting systems in trading trading operations throughout the world.DbfhdDrape 2-dimensional patterns on3-dimensional life formsSimulate fabric and food grain dataCollaborate via the internet with clients and suppliersReduce the number of physical samples compulsoryDrastically decrease product development and approval timesServices to customers( schema)The prime driver for businesses is the savings, which lead to lower costs while maintaining high quality or to put it some other way to lower per unit costs while maintaining high quality, which ultimately, leads to savings (same for less or more for less). But, in essence it is due to a combination of factors, such as high aims of education and skills appropriate to the tasks outsourcedThe Operational Plan describes the requirements to conduct the annual strategies at the Ganu Hyundai. All the events have an element of public risk and electromotive force for environmental impact. The Operational Plan has been pile up with due setting to reduce these risks and to prescribe the tasks required to conduct a good relationship with the customers. Our operational plans also include sale of the products per year and benefit s comes out of that. The Ganu Hyundai performs its operations by the following manner-Firstly, the customer has to book the desired exercise of the car.They can book or give order either by phone or by directly coming to our office which in South Extension, New Delhi or they can order online by just going to our website i.e. www.ghyundai.comWe also have servicing centre where we provide free servicing to the customer who are bare-ass (means whose car is less than one year).We behave money either by cash or by cheque or by card.We also have collaboration with few banks that provide loans to customer.Hyundai backed warranty for 1 year 20,000kms.We assured with company backed operations.PRODUCTION PLANSThe following are the wareion plans of our consultancy-As per regarding the production its very important to satisfy our customers by providing them desired model and better service.The production plan of Hyundai is divided into three steps called as Product Life Cycle of Hyundai GR OWTHIf consumer feels that this product is good and satisfactory for them, they mechanically get attracted by that product, then the company (Aggarwals industry) will meet a rapid sales growth. Aggarwals textiles stands on improved Stage. As the sales of another textiles are higher as compare to that of Aggarwals then the customer will buy our product ,by providing them great benefits in future and they will accept it.Revenue 188 millionEBIT 19 millionCapital employed 53 millionEmployees 1.322MATURITYRapid sales growth cannot last for a long time. Sales slow down as the product sales reach peak as it has been accepted by most buyers. turn awaySales and profits start to decline, the Ganu Hyundai may try to mixed bag their determine strategy to simulate growth, and however the product will either have to be re-modified or replaced within the market.MARKETING PLANMarketing the selling mix isRight productRight priceIn the honorable placeUsing the most suitable promotionPackagin gLabelsindustrial applicationsSecurity applicationsWall-coveringProofingOur marketing plan is to establish a well-regarded brand depict linked to a meaningful positioning. We will have to invest hard in market to create a distinctive brand stunt man projecting innovation, quality and value. We also measure awareness and response so we can adjust our market efforts if required.Target MarketsOur marketing strategy is differentiate marketing. Our primary customer order is middle to upper income that need confessedly value for their money and comfortable ride in city conditions. Our supplemental customer target is college students who need style and speed.Our primary business target is mid- sized to large-sized corporate that need to help their managers and employees by providing them a car for ease of transport. Our secondary business target is entrepreneurs and small business owners who need to provide discounts to managers buying a new car.PromotionRoad ShowsThe showroom plan to stage and road show, to display vehicles in the pavilions during various college fiesta and exhibition. This type of car will appeal to youngsters more.Television AdvertisementsAdvertisements to promote and market our product will be shown on leading television channels, as for example- Zee, Star, Sony etc.BannersHoarding banners and neon signs will be displayed at clubs, discs, distant theatre and shops to promote our brand car.HUMAN RESOURCE PLANStrategies for successSmart and Modern MaterialsTechnological research involving scientists and textile designers working in concert has resulted in the development and productions of a range of new fibres and fabrics which have become known as Smart and Modern Materials.Types of Smart and Modern MaterialsEncapsulation is the technology of enclosing a smell or substances within a fabric to create a particular effect.Sense and React Materials are languish materials that have been specifically designed to respond to the needs of the wearer and/or of the environment.Photo-chromatic Dyes change colour in response to a particular temperature.Reflective Inks radiate any available light making a garment more visible in the dark.Phosphorescent Dyes appear to glow in the dark.Micro-Encapsulation is the application of microscopic capsules to either a yarn or the surface of a fabric.Abrasion is the scraping or wearing away of something.Interactive Textiles are touch and pressure-sensitive fabrics incorporating conductive fibres.Geotextiles are bonded or woven man-made and immanent fabrics that can be made from polypropelene fibres...Abrasion Resistance PillingColorfastness Dimensional intensifyFlammability Wrinkle Soil ResistanceTensile Properties Fabric Appearance dedicateEight cameras,Four laser light sources,Collects 300,000 data points in 12 seconds,Results in 3D image,Results in a set of over 80 body measurementsAfter the scan is completed, four views are available to examine simultaneouslymarcellMeasu res the amount of heat emitted from an object or person . Temperature measurements are used to design apparel when heat is an issue, such as athletic or refrigerated weather wearGarments can be tested in a variety of different environmental conditions,Temperature ranges from -20F to 200F,Humidity ranges from 5% to 95%chamber set upsoftware including computer-aided-designcadlab1The Advanced CAD class collaborated with Brooks Brothers to develop a Web site that would allow for customization of womens professional apparel. Designs were produced using U4ia and Illustrator that could have interchangeable fabrics, colors and stylesNxt heading.MktingAnnually, our students produce a professional level fashion presentation and exhibition of original apparel designs to an audience of over 1300 in Finch on CMUs campus.Ganu Hyundai is a unique Human Capital way car showroom that enables the process of acquiring talent, aligning them with organizations goals and leading the transformation, to help your organization take that leap in performance. From automating routine tasks, to generating strategic reports, to bad access to employee related information through self-service, Ganu Hyundai does it all. Our key Modules include performance Management, Training Development, and recruitment, HR Workgroup and Report/Analytics, Payroll, Self-Service.Followings are the Human Resource Strategies of Ganu Hyundai. They are-Aggarwal textiles has employed many people to its industry and they have also been provided a special training.Our employees are getting knowledge and skills about clothing and they are getting paid according to their talent and hard work.ALL of our students have the opportunity to complete an internship with leading firms in the apparel design, merchandising, manufacturing or textile industries DKNY ,The Gap ,Nordstroms ,The Buckle ,Old Navy ,As IceALL of our students complete a sequence of textile courses that include textile product analysis and textile test ing utilizing standard methods in an actual textile testing laboratoryAs about the Manager and Account manager, they get higher compensation than the other emploes as their work is a little more different and difficult too,they have to look after their junior employees.Lower level employees those are new to this industry get less salary as they do not have the proper degree but as soon as they get their dgree their salary would automatically raise.The main supposition that come from these plan is that our company not only recruit a person who has a degree for it but also we provide a good and free training to poor poeple so any one having dadicaion to his work and life can join in our company.We also have a suggestion box, and organize monthly meetings to follow up tasks. judging OF RISKBy doing the assessment of risk we are in a position to identify hazards that could cause damage to our textile industry. our assessment of risk makes us enable to know the hurdles and adapt measu res accordingly to rescind or control risksRisk assessment would be recorded by the person who are assigned for it. Risk assessment of upcoming events are distributed among different person of different groups and it would be done when we gather all the information from the contractor, other companies It will also be a part of our risk assessment to built a personal contact with our customers so that we would be updated with teir new demands and thus can satisfy them.What are the risks?Indian Textile Industry is highly Fragmented Industry.Industry is highly aquiline on Cotton.Lower Productivity in various segments.There is Declining in Mill Segment.Lack of Technological Development that affect the productivity and other activities in whole value chain.Infrastructural Bottlenecks and Efficiency such as, Transaction time at Ports and transportation Time.Unfavorable labor Laws.Lack of Trade Membership, which ensnare to tap other potential market.Lacking to incur Economies of Scale .Competition from other developing countries, especially China.Continuous Quality Improvement is need of the hour as there are different demand patterns all over the world.Elimination of Quota system will lead to waverings in Export Demand. affright for Traditional Market for Powerloom and Handloom Products and forcing them for product diversification.eographical Disadvantages.International labor and Environmental Laws.To correspondence the demand and supply.To make balance between price and quality.Higher corroboratory Taxes, Power and Interest RatesAnother major risksThreat of new entrantsThreat of substitutesCompetitive rivalryThe second reason of risk is fluctuation in the share market.The one of the major risk is demand in the market, if the demand of people will not fulfilled by our company then the people will move to the next textile company this will again cause loss to the owner.FINANCIAL PLANfiscal planning is a process of setting objectives, assessing assets and resour ces, estimating future financial needs, and making plans to achieve monetary goals. Many elements may be involved in financial planning, including investing, asset allocation, and risk management. Tax, retirement, and estate planning are typically included as well.The following are the financial plan of Aggarwal textiles. They are We invested nearly 1 crore rupees in the establishment of our project.We also have shares in the share market which will give financial strength in the market.We also have future plan to increase our company to 5%-6% per year.We also give discounts and other attraction to our customers in the off assuage to increase our income.We also give guarantee on our products so that we would be able to build a good impression on their mind. We have provided replacement facility too.The marketing research and tailored marketing strategy described in this business plan will result inhealthy profits, increasingevery year. It is estimated that by year 2015, revenues wi ll contrive an 10% market share of the local market.Monthly break-even is very achievable. Total production at the time of this writing was approximately 70 units, which will increase to 100 by the end of the year 2015.Because it is the policy of the company to provide the fabric for the soft window treatment products,the company has a very low cost of goods sold account and therefore a high gross margin. Furthermore, the custom nature of the business means that there isminimal inventory cost and accounts payable. Finally, the company does not posess any debt or long term capital assets that would affect the cash flow. With the ability to generate so much cash flow, it is assumed that the company will seek to use this asset to expand its markets and production capacity in the near futureFor our financial plan we consulted with our parents, friends and seeked many sources from where we could get the informations.after all we obdurate to invest in which we contributed 50% each in wh ich we got helped by our parents and our relatives.our parting included our savings of the past which we saved for this day and it was of great help.