n-tangles - Hans Raj College

Report
Project of Business, Entrepreneurship and
Management on developing an innovative
business idea
Presented by students of B.Com(H) I year
section 4
Hans Raj College
Faculty- Mrs. Meghna Malhotra
BUSINESS
PLAN
!N-TANGLES
FOR A GREENER SOLUTION………
Introduction:
• Jute is a natural fiber popularly known as ‘The golden fiber’.
• One of the cheapest and the strongest of all natural fiber.
• Jute is a bio-degradable eco-friendly item.
• India, Bangladesh, China and Thailand are the leading
producers of Jute.
• India is the largest producer of jute goods in the world,
while Bangladesh is the largest cultivator of raw jute.
DESCRIPTION OF BUSINESSS
 Jute bags are one of the eco friendly products which are really in need
in market at present. Seeing to the present scenario we have taken
branded jute bags as our product. Jute bags are durable and reusable
products.
Our business is basically about advertising on jute bags . Our products
are mainly normal size jute bags on which we will be providing
advertisements of our sponsors on one side and purchasers on the other
side .
 The reason behind purchasers advertisement is the incentive given to
them so that they purchase our products instead of other plastic bags
available in market. Our main customers would be retailers at small level
and some retailers at the large scale
WHY JUTE BAGS ?
Jute bags are manufactured from jute yarn and
are used for packing a wide range of
industrial and agricultural goods such as grains,
oil seeds, salt sugar etc. The products
have a great demand in industrial and
agricultural sectors for packing and wrapping
of
manufactured and agricultural products.
ELEMENTS OF OUR BUSINESS PLAN
Social
Environment friendly
Profitable
SOCIAL ELEMENT
• WE aim to produce the handmade segment of
our jute bags by an underpriviledged section
of the society. We will provide wage as per
the current wage rate to them. As for the
training, jute bags are easy to make.
ENVIRONMENT ELEMENT
• Availability of jute bags at the same price of
plastic bags will limit the use of plastic bags to
a large extent. Plastic bags , as we know are
such a threat to the environment and on the
other hand jute bags are “environment
friendly” .
PROFITABILITY
• THE concept of “branded jute bags” has been
an untapped business idea , so there is no/less
competition . And the customers
(shopkeepers using plastic bags) will be more
than happy to purchase the jute bags as it is
available at the same price as of plastic bags
and serves their purpose of legality (as use of
plastic bags is not legal )
Objectives:
• For creating pollution free environment as jute is eco-friendly
products.
• Making low cost carry bags and fashionable jute products.
• To make jute products as a part of our daily living.
• Creating awareness about jute products.
• Last but not the least to earn profit.
MANUFACTURING
Both laminated and non-laminated jute fabrics are procured from the market
and as per drawing, design and size cutting is done to make bags. After
cutting, the clothes are placed on the table and printing is done. Then cut
pieces are stitched in the sewing machine. During the process of making the
bags, lining, chains, handles of clothes, are fitted.
MANUFACTURING PROCESS
LAMINATION
After the jute is woven it is then sent away for lamination. The entire jute roll is
laminated with a lining. The jute is then sent back to the factory.
CUTTING
After dying of fabric is done , it goes to cutting department. Fabric is arranged in
layers & cut according to the product pattern . Cut fabric is marked according to
product coding & handed over to concerned department for further processing.
PRINTING
Screen printing is done on cut fabric by arranging the fabrics in
large printing table. Water based Azofree colors are used for
printing. After the printing is done fabric is left to dry.
Then it goes for stitching
STITCHING AND FINISHING
All the body parts such as front back body, gusset, handle of a
bag are stitched together in stitching machine.
CHECKING & PACKING
Finished bags are quality checked for any kind of errors. If any
error is found then it is mended & rectified.
SEGMENTS OF JUTE BAGS
• WE AIM TO PRODUCE TWO SEGMENTS OF
JUTE BAGS
Handmade
which will be prepared
by the employees
Machinemade
which will be
prepared by
machines
PRESUMPTIONS:
• Unit will operate 8 hours daily and 25 days in month.
• Capacity utilization will be 75% which will remain constant.
• The salary and wages of staff has been taken as per present market rate.
• Cost of Assets, Raw Materials and Selling price of Finished product are
those generally obtained at the time of preparation of Business Model.
• The rate of interest on Bank Loan may vary from time to time.
• Since the project is small the financial calculation has been done for one
year only.
PLANT CAPACITY
Based on the demand projection of jute bags indicated in the market
study, the envisaged plant will have an annual production capacity of
60000 jute bags . The plant will operate two shifts, 8 hours each shift and
for 300 days a year.
PRODUCTION PROGRAMME
The jute bags producing plant will start operation at a lower production
capacity to allow time for market penetration and skill development of
workers. Thus, production will start at 75% of installed capacity during
the first year of operation, and then will grow to 85% and 100% of full
capacity in the second year, and third year and then after.
LOCATION OF PLANT
• Location of a plant is determined on the basis of proximity to
raw materials, availability of infrastructure and distance to
potential market areas.
• So we have decided to setup the business at Bawana
Industrial Area , Okhla Industrial area or Mayapuri Industrial
area .
MANPOWER REQUIREMENT
The plant requires manpower both for production and
administrative work. The details of manpower requirement
including monthly salary and annual expenditure is given .
Market and Demand Aspects:
• Every responsible citizen considering the black future of ours next
generation shall stop using plastic carrier bags used for shopping as
much as possible.
• Plastic bags in general take anywhere from 20 to 1000 years to
breakdown in the environment. The natural alternative is jute bag.
• Jute bags are very much in demand both for domestic and international
market.
• With the increase of population the scope of trade and industry is also
increasing. As the bags are an essential commodity for human, so the
demand of the product is growing day by day.
• The demands of the product remain consistent through out the year.
So, it is presumed that there is a good scope for starting of such type of
industry with a huge export potential.
TARGET MARKET
 Sadar Bazar
 Chawri Bazar
 Chandni Chowk
 Vegetable Hawkers
 Palika Bazar / Sarojini nagar Mkt
( and all those who also use plastic bags )
SIZE OF MARKET
• As the project is about producing “branded”
jute bags which is an innovative one and has
been an untouched business plan till now , so
the size of the market cannot be limited . It
depends on the scale at which we are starting.
COMPETITION
• As it is an untapped business idea there is
less/no competition. Though there are some
producers of jute bags but they have not
followed the system of advertising on the
bags to reduce the cost. So the price of their
bag will be around 15-20 times the price of
our “advertised” jute bags and thereby
removing competition.
These are the retailers with whom we are going to get
the printing done on the jute bags.
1. Veetrag Enterprises : 1492, Kucha Seth, Driba
Kalan , Chandni Chowk ,
New Delhi.
2. Himanshu Jute Fab Registered : 1809, Katra Bansi
Dhar, Khari Baoli,
New Delhi
FEATURES OF OUR PRODUCT
1Eco friendly
2Low cost
3Durable
4Different sizes available
5Branding
6Reusable
Projected Demand
The demand for jute bags will be dependent
on those products which are using natural
fibre bags for their suitability of packaging
agro based products like coffee and cotton.
With a growing concern for the environment
and eco-friendliness of jute sacks the
demand in the long run is believed to be
returning back.
PROMOTION STRATEGIES
WE WILL PROMOTE OUR JUTE BAGS
THROUGH VISITING RETAILERS INDIVIDUALLY….
OUR PRODUCT WILL ALSO BE PROMOTED WHEN
IT WILL BE USED AND DISTRIBUTED AMONG
THE COMMON PEOPLE.
WHEN FOUND INNOVATIVE,CHEAP,CONVINIENT
AND QUALITATIVE MORE AND MORE JUTE
BAGS WILL BE PROMOTED.
PRICE STRATEGIES
A). WE CHARGE LOW PRICE FROM THE RETAILERS SO AS
TO EARN MORE PROFIT THROUGH INCREASE IN SALES.
B). OUR COST PER BAG IS RS.25 FOR HANDMADE BAG
ANS RS.22 FOR MACHINE MADE BAG WHICH IS MUCH
LESS THAN THE OTHER BAGS IN THE MARKET.
C). KEEPING OUR PROFIT LOW WE AIM TO PROVIDE
SOCIAL MOTIVE IN OUR BUSINESS.
The cost of manufacturing jute bags along with the printing is :
•Rs 25 for machine made jute bags
•Rs 22 for handmade jute bags
We will demand the following prices for our jute bags from the sponsors :
• Rs 30 for the jute bags manufactured by machines.
• Rs 28 for the handmade jute bags
Then we will sell the handmade jute bags to the vegetable vendors and other
hawkers at the price of 0.50 paise .
And the machine made bags will be sold to various small retailers at Re 1.
These bags will also have the branding of the retailer on the other side which
we are providing them free of cost.
The cost to us for the additional printing of the small retailers brand name on
the machine made bags will be Rs 2 per bag.
So in a way we will be earning a profit of :
• Rs 4 {(30-25-2)+1} per bag on machine made bags
• Rs 6.5 {(28-22)+0.5} per bag on handmade jute bag
Jute Bag Handle Styles
We will be providing with 6 types of handles :
Short Jute
Mini D-Shape Cane
Oval Cane
Cotton Webbing - Jute
Cotton Webbing Natural
Long Jute
• FIRSTLY we are promoting use of jute bags in place of
plastic bags at the same cost. This helps in maintaining
environment stability.
• SECONDLY the cost of advertising is way less than other
means of advertising.
• THIRDLY our jute bag has been divided into 3 segments –
lower , front , back. This helps the advertisement to be
put on one side and the name of the seller on another
side which helps to cope up with any dispute b/w the
seller and the advertiser. In addition to that our
association’s logo will also be there at the bottom .
• FOURTHLY these bags will be prepared by an
underpriviledged community , so the company
advertising on it also helps that community indirectly . It
also helps them to cover their CSR.
• FIFTH and the last reason is its wide reach. As jute bags
are reusable so they can be circulated b/w the people for
a longer time and the word for advertiser will also spread
rapidly.
STRENGTH
WEAKNESS
1. LESS FAMOUS
1. ECO FRIENDLY
2. LABOUR INTENSIVE
2. ATTRACTIVE
3. SIZE NOT TOO LARGE
3. COST EFFECTIVE AND
CHEAP
4.EASY AND CONVINIENT TO
CARRY
OPPORTUNITY
1.INCREASE IN PROFIT
THROUGH INCREASE IN
SALES
2.PROVIDING MORE
GREENER SOLUTION
3.EXPANSION THROUGH
MORE PRODUCTION
THREAT
1.PROMOTED USE OF PAPER
BAGS
2.ABUNDANT SUPPLY OF
PLASTIC BAGS
3.LOT OF COMPETITION
CREDITS
BUSINESS IDEA AND PPT
SAHIL DHINGRA - 316
SHIVANG AGARWAL - 318
SAVII SACHDEVA - 321
MANAV MALHOTRA – 322
IRESH GUPTA – 209
SHAGUN SEHGAL – 316
PRIYAM MOHAN - 323
THANK YOU !

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