SMALL SCALE

INDUSTRY
MANUFACTURING
NATIONAL FLAGS

Product:-...National Flag.
Name of the Company:-...Tricolor
Enterprises
Registration No.:-.NCS007
Name of the Partners: Mr. Nirav Shah
Ms. Disha Dhar
Ms. Yukti Mittal
Mr. Amit Lahoti
Ms. Karishma Ahuja
Mr. Kaushal Rajpopat
Ms. Anitya Bhat
Location of Manufacturing: - Ahmedabad.
Location of Business: -...Kolkata.

Acknowledgements
We would like to extend our sincere
thanks to Ms. Damayanti Salunkhe the
Assistant General Manager of the New India
Bank (Bandra Branch) for helping us
understand the entire process a businessman
goes through to set up a small-scale unit.
We would also like to thank our
Professor, Mr. Sameer Virani, without whom
the project wouldnt have happened in the
first place write about

 Idea Generation
The recent survey conducted by TOI revealed
that there was a tremendous growth and demand for the
national flag. Thus the promoter of the company Mr.
Nirav Shah took the initiative along with other members
to set up the business. Later they explored various
aspects as whether to manufacture national flags or tie
up with some other factory or to outsource.

Market Survey
As per the survey, Kolkata has one of the highest
demands for national flags, since the willingness of the
people for buying the flags was high. Thus we analysed
the business scenario & prepared a SWOT analysis.
Strength
The labour is cheaply available in Ahmedabad.
The cloth and textile required is found at low cost.
There is an existing demand.
Being a small scale industry and also producing
national flags helps to attain various concessions
and subsidies.
It is a homogeneous product.
Weakness
There is lack of specialization.
There is lack of modern technology in this field.
Business is Highly labour oriented in manufacturing.

It requires training of labours.

Opportunity
Earlier the government had banned the use of national
flags by individuals but only the government
authorities had the right to use it. Now every
individual can use it provided they abide by the
rules.
There is an equal need and demand which is
conducive for the growth of the business
There is seasonal demand and which can be
converted into the perennial demand.
There is already an existing market which can be
further explored
Threats
There are a large numbers of competitors
The business is low profit margin oriented
They are subjected to seasonal demand.

Promoters and partners

Below given are the members and the amount that
they have invested.

Mr. Nirav Shah

Ms. Disha Dhar
Ms. Yukti Mittal
Mr. Amit Lahoti
Ms. Karishma Ahuja

1,00,000
30,000
20,000
55,000
40,000

 Mr. Kaushal Rajpopat

Ms. Anitya Bhat

25,000
30,000

Forms of ownership
The type of ownership is partnership and accordingly
registered as Tricolor enterprises partnership firm, under
the provisions of the Indian Partnership Act, 1932

Location of the business

Ahmedabad is one of the biggest textile markets in
India. Thus we have chosen Ahmedabad as the base for
production. Skilled tailors and labour are readily available
at a low cost there. The plant is located near love garden ,
ahmedabad.
Kolkata is our main target market for selling of the
product i.e. national flag. Though there are a large number
of competitors, the demand for the flags is equally high.
And as a result of which the competitors are not able to
meet the demand.
The market for Kolkata is located at Khadi bazaar,
Howrah.

Product selection
The product selected is available in various sizes, which
are as follows
5 feet * 10 feet
6 feet * 12 feet
7 feet * 14 feet
8 feet * 16 feet
10 feet * 20 feet

And the above-mentioned sizes are available in Khadi,

cotton, & silk.

Technical know how

The machinery required are drying machine, dying
machine, cutting machine.

Machinery Required
2 Dyeing machines
2 Drying machines
2 stamps with an image of Asoka Chakra imprinted on
each one of them.
We are provided with Government Subsidies for the
purchase of machinery.

Provisional registration
We, Tricolor enterprises have registered as per the rules
and regulations small scale industries act, 1965. Thus, are
entitled for the subsidies and tax exemption provided by
the act.

Availability of funds

After collecting the necessary funds, we would commence

our business.

Installation of the machinery

The installation of the necessary machinery like the drying
machine and dying etc are installed at the site i.e in
ahmedabad.

Insurance
The insurance of the labourers has been under taken by the
government. new India bank has recently branched out in
the insurance sector and hence have offered to insure our
assets.

Recruitment
The recruitment required is for twelve workers
specifications are as follows:
Five tailors were required for the bidding work.
Three men are required for the cutting of the cloth.
Four men are required for the drying purpose.
We would hire clearing and forwarding agents
ahmedabad to kolkatta.

. the

from

Raw materials
Dyes( Saffron, Blue & Green)
Cloth (Khadi, Silk, Cotton)

The procedure of making the national flags

A piece of cloth (of required cloth type and size) is
taken and put into the dying machine which is already
made ready for the process. There are partition scales on
the machine itself so there are 3 partitions with a dyer
placed above each of them. The left dyer is filled with a
saffron dye, the right with a green dye and the middle
dyer is left blank the cloth area is already white.
When the work on the Dying machine is done is
directly goes to the Drying machine where is dries upto
80% and that is dried out naturally.
After the cloth is completely dry it is carefully
stamped to imprint the Asoka Chakra on the middle-white
part and then dried naturally.
After the flag is completely dried, the tailors stitch the
edges of the flag to give it an even look.

The below given is the projection report for the year

of commencement of business.

PARTICULARS

NO.
PER
OF UNITS UNIT

EXPENSES

RAW MATERIALS
Khadi
Silk
Cotton

10,00
0
2,000
3,000

18
20
10

18,000
40,000
30,000

WAGES
INSTALLATION CHARGES

1,00,000
10,000

PRIME COST

1,98,000

FACTORY OVERHEADS
Machinery
Cutting m/c

Drying m/c

Dying m/c
Stamping m/c

2
2

13,00
0
13,00
0
13,00
0
1,000

26,000
26,000
26,000
2,000

FACTORY COST

2,78,000

PLANT
SUNDRY EXPENSE
COST OF PRODUCTION

60,000
9,250
3,47,250

SELLING AND DISTRIBUTION

COST OF SALES

34,625
3,81,875

Loan Requirement Plan

Capital Investment

3,00,000

Cost of Sales

3,81,875

requirement for General Reserve

1,18,125

Short Fall / loan requirement

5,00,000

2,00,000

On the basis of the projection report and the above given

table, there is a requirement of a sum of Rs. 2,00,000/- for
which we have applied for a loan from NEW INDIA
BANK.
Terms of Repayment of Loan
As per the agreement between New India Bank &
Tri-color Ent. Have agreed on the terms that loan will be
repaid over a period of 5 years @ 9.5 %.

Marketing
The basic market research instrument was the survey
in the TOI that told us about a possible potential in
this field. All the partners then carried out research by
collecting primary data ourselves. We spoke to
existing manufacturers, locals etc.
Though the market for our product is very huge, the
competition is quite tough. But flags are used by
everyone in the nation. Hence, like all of our
competitors we are using Mass Marketing.
There is just one product line i.e. the flags with a fair
amount of variations in the product itself (as
mentioned earlier).
The pricing method we have chosen is the cost plus
method where we plan to gradually increase the profit
margin.
Our products will be sold both in Ahmedabad and
Kolkata. In Ahmedabad we will sell the flags outside
our manufacturing unit and in Kolkata we will sell in
Khadi Bazaar.
We are using Quality Assurance as a key marketing
strategy as the raw materials we use are of a good

quality and the products are manufactured and stored

in a good environment.

Conclusion
The capital invested is of RS. 4,00,000 and the
total cost of production is RS. 3,81,875 and thus
resulting in a profit of RS.18,125.
Since there is availability of funds and thus as a
company we do not need a loan from the bank.
Also in the following years the sales are expected
to grow by 10% every year.