Submitted To: Sir - Haroon Rashid Submitted by

0300-7289707 rai_shahzad2000@yahoo.
com
Submitted to:
Sir.Haroon Rashid
Submitted by:
Shahzad Azeem (G.L) 042

Bilal Ibrahim 068
M. Waqas 050
Shahzad Younis 060
Wajahat Hussain 096
Hafiz Zafar 099
MBA (B4)-B
COMSATS Institute of Information Technology Sahiwal.

Comsats Road, off GT road Sahiwal
Table of Contents
0300-7289707 rai_shahzad2000@yahoo.com
1. Statement of Confidentiality............................................................................................3
2. Executive Summary.........................................................................................................4
3. History of embroidery......................................................................................................5
4. Introduction .....................................................................................................................6
4.1 Mission Statement......................................................................................................6
4.2 Vision Statement:.......................................................................................................6
4.3 Company’s Slogan:....................................................................................................6
5. Company Profile .........................................................................................................7
6. Brief Profile of Entrepreneurs .........................................................................................7
7. Marketing Plan.................................................................................................................8
7.1 Competitive Analysis.................................................................................................9
7.2 Marketing Mix.........................................................................................................10
7.3 Market Segmentation...............................................................................................11
7.4 Controls...................................................................................................................13
8. Organizational Plan........................................................................................................13
8.1 Form of ownership..................................................................................................13
8.2 Identification of partners.........................................................................................13
8.3 Management Team...................................................................................................14
8.4 Human Resource Required......................................................................................14
8.5 Contingency Plan.....................................................................................................15
9. Operational plan.............................................................................................................15
9.1 Description of companies operation........................................................................15
9.2 Flow of orders for goods and services.....................................................................16
9.3 Technological utilization.........................................................................................16
10. Financial plan...............................................................................................................17
10.1 Land and Building requirement.............................................................................17
10.2 Machines Required................................................................................................17
10.3 Office Equipment...................................................................................................18
10.4 Raw Material..........................................................................................................19
10.5 Assumptions..........................................................................................................19
10.6 Pro forma Income statement..................................................................................20
10.7 Pro forma balance sheet.........................................................................................20
10.8 Cash flow projection..............................................................................................21
1. Statement of Confidentiality
We expect honesty, openness and courtesy from all colleagues in their business
dealings. This means everyone must act in an ethical way to protect the
company and its reputation. We communicate openly, directly and accurately
with the public. We will not give special treatment to any individual or institution.
Customer product and packaging information remains confidential. Confidential
business information must not be shared with others. Colleagues of the company
work best for the interest of company. They provide their full attention in business
activates. The use of company assets must be appropriate. We expect
Colleagues to use our resources in a responsible and ethical manner.
Colleagues must not take advantage of personal opportunities that may arise
through the use of corporate property, information or position. And at the end we
are committed to free and open competition.
If you know or have doubts of any legal violation in work-related issues of these
principles, you should report to manager so that we can take action. We will
make all proper efforts to protect the confidentiality. All members are fully agreed
on this project.
2. Executive Summary
A market exists with in Faisalabad city that we have found the opportunity of
Embroidery business. We found this opportunity through proper visits and
research of different business ventures. Our objective of embroidery business is
our growth by diversifying into unique embroideries product with fabric designing
offerings in Faisalabad and its surrounding cities markets. Our embroidery
products for the target market that includes textile firms and boutique as well.
We use different local Medias for advertising at the initial stage to create
awareness of our business and product for B2B businesses. We will manage the
administrative tasks himself and hire supervisor for checking purpose and also
machine operators and labors. A portion of our initial startup costs will be used to
purchase inventory, office equipment, and embroidery machinery. The balance
will be used for catalog costs and initial advertising expenses. Additionally, we
project the need for additional financial commitment to finance receivables and
payroll expenses for the first 12 months of operation.
In this report we mentioned the team members and their working. We also write
about the place where we start our business and also mention our estimated
fixed cost is Rs.4800000 and some other expenses. And total variable cost is
Rs.210000 that includes different raw material and wages to be paid to labors.
3. History of embroidery
The use of embroidery to decorate clothes has been around since man began to
wear clothes. A method of decorating and embellishing clothing, embroidered
designs came about as a result of hard work and care. Embroidery as an art form
has origins that can be traced far back to the Iron Age.
This journey began when primitive man discovered that he could use thread to
join pieces of fur to make clothes. As a natural progression, he also discovered
that the same thread could be used to make decorative patterns on the clothes.
He also used colourful beads, stones and bones to add to these decorations.
Several excellent examples of beautiful embroidery work are still surviving till
date. Samples can be found from Ancient Egypt, China, Persia, India and
England. Each country has its own distinctive style of embroidery, which
incorporates the culture and imagery from their history and tradition.
Embroidered clothing was also considered to be a symbol of wealth. Many
scenes from history are often found embroidered onto fabric.
4. Introduction
Nirwana Embroidery (Pvt) Ltd has started its operations on first week of Feb,
2011. We deal in all fields of embroidery especially in textile work.
4.1 Mission Statement

“To provide uniqueness, assortment and quality standards and therefore to
establish a mark within and outside the country “
4.2 Vision Statement:

“One that becomes the standard for others”
4.3 Company’s Slogan:
“Style with Comfort”
Objectives and Goals

The major outcome of strategic road-mapping and strategic planning, after
gathering all necessary information, is the setting of goals for the organization
based on its vision and mission statement.
Goals and objectives of our organization are:
 Achieve maximum customer’s satisfaction and customer’s loyalty.
 Provide uniqueness and style with comfort.
 Capture big share in handicrafts’ market.
 Earn revenue.
5. Company Profile
Company Name: Nirwana Embroidey (pvt) Ltd.
Business Type: Manufacturers/ Distributor
Main Markets: Pakistan (Punjab)
Number of Employees:
Year Established: 2011
Address: Manufacturing Unit: Sahianwala interchange road 266 RB

Khurrianwala, Faisalabad.
Contact (Unit): UAN: 111-333-444

FAX: 0414-361401
URL: www. nirwana.com
6. Brief Profile of Entrepreneurs

Our management consists of six members and we are going to take initiative of
starting a new venture of Embroidery. We have distributed the management
responsibilities among the group members. The management responsibilities are
assigned to the group members according to the following structure:
Name: Mr. Shahzad Azeem

Designation: CEO
Area of Interest/Skills: 1 year experience as a Quality
Auditor in Bismillah textile (pvt)
Ltd.
Name: Mr. Bilal Ibrahim

Designation: Production/Opertional Manager
Area of Interest/Skills: Fresh
Name: Mr. Waqas

Designation: Marketing Manager
Name: Mr. Wajahat Hussain

Designation: Finance Manager
Name: Mr. Shahzad Younus

Designation: H.R Manager
Name: Mr. Hafiz Zafar

Designation: Unit Manager
7. Marketing Plan
Product Description
The nature of our business is to manufacturing of embroidery items such as
home textile Embroidery, Knitting, Ribbon embroidery and shell adornment etc
and takes order from different organizations. Currently we are manufacturing only
home textile items and boutiques as well.
The proposed product range includes only home textile and boutique clothes
work items manufactured locally dominates the sales in the local markets as well
as very large quantities are being exported. As regards the imported embroidery
items, they have a small share in the local market, the reason being availability of
cheap embroiders in the market. The proposed unit is capable of producing

quality products, which can be sold in the local as well as foreign markets.
Our Comparative Advantage

By the grace of ALLAH we are making difference for our valued customers by
giving them new innovations, quality satisfaction, in time delivery, competitive
prices, fair commitment, honest dealing and absolutely world class products. No
quantity restrictions for big or small orders you can order goods as per your
convenience. Favorable payment terms as per your convenience and choice.
Very competitive prices for each article 100% in time delivery assurance at your
given destinations. Our Product’s quality is guaranteed and 100% comparable
with other high brand names. Our Products are 100% free of child labor under
strict monitoring of ILO teams. For good quality orders more attractive discounted
rated for almost all articles.
7.1 Competitive Analysis

7.1.1 The Core of Our Business
The core of our business is to open a unit to trap the market of that area because
it is very profitable business. This unit is a starting point towards the achievement
of our organizational goals.
7.1.2 Players/competition
At the present situation we find the following players at the local level which are
operating in the market.
 Needle craft
 Madani
 Needle point
At the International level, we face the strangest competitors who capture its local
market as well as international markets.
 Saleh Al Qallaf Trading, Bahrain

 Onus Enterprise, Bangladesh
 Paragon, Bangladesh
7.2 Marketing Mix

Let us analyze the marketing plan with respect to the 4 “P”.
7.2.1 Products
The embroidery work is done on the following products:
 Fabrics
 Women Suits
 Bed Sheets
 Table & Sofa Cloths
 Export Products (Clothes, T-shirts, etc.)
7.2.2 Price
The price of our products depends on the quality, nature and size of the product.
The marketing strategy that we are applying is “MARKET SKIMMING” this is so
as we are introducing new features that we have mentioned above. After some
time the prices of different items can be fluctuated according to market
conditions. Special discount will be offered in case of big order.
7.2.3 Place /Location

The manufacturing plant is located at Sahianwala interchange road,
Khurrianwala, FSD. The order will be placed at our unit in Khurrianwala.
The reason of opening our unit in this area is that we are currently focusing on
those organizations which have no embroidery units in that market.
7.2.4 Promotion/ Promotional tools

The promotion strategies would be:
 Word of mouth strategy
 Features of our product
 Advertisement through electronic and print media
 Commission to the selling agent
 Within the city, we offer the free home delivery
 For our special customers who purchase bulk quantity, we offer discount
of some % on sale
7.3 Market Segmentation
7.3.1 Target Customers

Following are the target customers for a commercial embroidery unit:
 Small & medium scale garments manufacturers who don’t have their own
embroidery
 units and are dependent on commercial embroidery units for their
garments.
 Commercial exporters of embroidered garments who outsource their
embroidery requirements to commercial embroidery units.
7.3.2 Value Proposition

Our products shall satisfy the need of customers to be prominent in company
other. We want to position our product in such a way that along with our name
style and color should come in the mind of customers. Coming with different and
unique styles shall do all this. Not only regular style shall be the focus but also
out of routine designs shall be introduced to attract the mind of the customers.
7.3.3 Development Status

Types of both designs style shall be kept on changing. So that not only existing
and potential customer shall be attract. As for as the conversion of business
ideas is concerned in our view it should be revised over time. Especially in
manufacturing you need to come with change to compete in market. If any
organization fails to do all this then even its tangible form can be converted in
intangible form.
So the development status of our product shall be in the following steps
 Developing a good range of designs

 Developing an image in customers mind
 Developing a good atmosphere of work.
7.3.4 Plan to Keep Customers
Customer’s loyalty is only because of the reason that weather or not our product
satisfies him/ her. If our product is fulfilling the desires of customers then they will
automatically becomes loyal. As soon as our product loses slandered of
customer’s mind his loyalty level shall go down.
To make the customers loyal we are making following point needs to be focused
especially:
 Surveys shall be committed to know desires of customers.

 Quality shall be provided as best as possible
 Design should be according to wishes of customers
7.4 Controls
We are six members, these will work together. Finance, Marketing and Human
Resource will be under our own control. We will also control over our
management team. One unit manager will be control over the subordinates. His
subordinates have to make control over the deals on designs, fabric problem and
office work etc. They have to report to their unit manager and unit manager will
be answerable to us. Unit manager will consult with one of us according to the
issue.
8. Organizational Plan
8.1 Form of ownership

Mainly this business will be run under partnership and all the authorities, duties
and responsibilities will be mentioned under the partnership deed. Moreover this
will be registered partnership and people will have the trust on the business on
the behalf of registration.
8.2 Identification of partners
Shahzad Azeem
CEO
Muhammad Waqas Bilal Ibrahim

Wajahat Hussain Shahzad Younis
Marketing Operations
Finance Manager HR Manager
Manager Manager
Hafiz Zafar
Unit Manager
8.3 Management Team

Management team will be consisting of 6 members. The top authority will be
CEO who will manage all the functions of the business and overlook the day to
day authority and all the other members will repot to CEO. CEO will have the
authority to conduct the meeting at any point of time by giving a notice to other
members and he will conduct meetings with outside people. The main task of the
business will be conducted by marketing manager. As this business is depend on
the marketing efforts. Moreover the marketing manager will overlook the
marketing personnel and day to day deals. Finance manager will overlook the
cash flow and he will manage the commission ratio. Moreover on at the time of
expansion he will be the key person to provide the company with finance and
maintain the books of accounts. As far as the Human Resource Manager is
concerned, currently the role of HR manager will be not a key but at the time of
expansion he will be the key. He will provide the company with valuable HR
strategies such as planning, recruiting, compensation and appraisal. Operation
manager will operate all the activities. He will perform all the activities in a
manner that the cost will incur to operation will be minimum. And finally the unit
manager check and balance on the employees during the working hours.
8.4 Human Resource Required

The under employees are required for start the business:
Position Required Monthly Annual salary

salary
Designer/Tracer 2 12000 288000
Computer 2 9000 216000
Operator
Supervisor 2 10000 240000
Machine Operator 2 8000 192000
Helper 2 8000 192000
Guard 2 8000 192000
Total 16 58000 1320000
Working Time
Working time estimates are given in the following table:
Description Time
Per day working 22 hours (in 2 shifts)
Per month working 25 days (excluding holidays) (550
hours)
Per annum 300 days (6600 hours)
working
8.5 Contingency Plan

For every business there are risks of loss involved. For this business there are
certain risks are involved. For sustainability in the market businesses try to use
proactive approach and they make some contingency plans. For our business
risks are involved and for contingency plan we have decided to change our
business model and operation style in order to cut down operating cost and do
business in other manners. As far as the theme of the business is concerned that
will be remain the same the only change that will be bring about, we will put more
deals in a day in place of previous style of business that caters only one deal a
day. And in contingency plan multiple deals will be placed for more than one day.
9. Operational plan
9.1 Description of companies operation

A method for using an embroidery production system in a factory having a
plurality of 21-head embroidery sewing machines, comprising the steps of: using
a number and layout determining device to determine the number and layout of
21-head embroidery sewing machines to be used in producing an item based on
the type of item, the production volume for the item, the size of the factory floor;
determining the more profitable production pattern between a pattern of
operating each 21-head embroidery sewing machine by repeatedly embroidering
an 21 type of item and a pattern of operating each 21-head embroidery sewing
machine by embroidering different types of items, said step of determining the
more profitable production pattern taking into account a necessary production

volume for said 21 type of item and a due date for completion of said necessary
production volume; using a production planning device to make a production plan
for operating each 21-head embroidery sewing machine based on the
determined more profitable pattern.
9.2 Flow of orders for goods and services
Raw material will be provided by the customer on his choice. We will produce our
product according to the customers demand and after completing the product this
customize product will be given to the customers.
9.3 Technological utilization

Our company will use 21-head computerize machine to produce our products.
This 21- head computerize machine. Company will use 21-head commercial
embroidery machines built to highest construction standards and designed with
the small to medium sized embroidery business in mind. Get the best value from
a wide range of machines with the best 5 year limited warranty in the industry.
The specialty embroidery machine line gives any business an opportunity to
expand with machines that allow the opportunity to embroider on larger surfaces
as well as specialty items such as quilts and pillows.
10. Financial plan
10.1 Land and Building requirement

Covered area
Type Description Covered area (sq.
feet)
Large hall For installation of machinery 1000
Store For storing raw material 500
Designing room For designing and other related 200
issues
Office Official work 200
Wash room 50
Total covered 1950
area
10.2 Machines Required

Commercial embroidery unit can be started by using any number of machines
but combinations of two machines will be more economical and viable for the
business.
Machines Available in the Market
Different kinds of machines are available in the market of different countries like
Japan, Korea and China. The difference of these countries machines is quality
and price which matters a lot. For this business we will import embroidery
machines from Japan which cost is Rs.2 million. The Japanese and Korean
machines are more expensive relative to Chinese machine. The names of
machines and their countries are as follows.
Tajima (Japanese)
Happy HMF (Japanese)
SWF (Korean)
Eagle Wheel (Chinese)
Diamond (Chinese)
Technical details of Japanese machine (Tajima)
The technical details of Japanese machines are following:
Estimated price per machine Rs. 2,000,000
Electricity phase 3 phase
Temperature required 25-28 c
Note: The depreciation will be charged 5% per annum and we will use the
straight line method. The estimated life of machine will be 20 years.
Production
The production details of embroidery machine as follows:
Average stitches per head 5,000 stitches in per minute
Average stitches per head per hour 30,000 per hour

Total stitches per hour 600,000
10.3 Office Equipment

Office equipment required as following:
Item Required Cost (Rs.)

Computer 3 60,000
Printer 1 10,000
Designing software 1 6,000
Electrical appliance 10,000
total 86,000
Note: Depreciation will be charged on Equipments @ 20% under straight line

method.
10.4 Raw Material

Raw materials provide us by following suppliers:
Accessories such as buttons, laces, zippers, elastics, threads, needles,
embroidery threads, glasses, etc. will be procured from the local market at
competitive rates.
Required raw material and their approximate costs as follows:

Cost of thread per 1000 stitches Rs.0.20
Cost of fusing paper per 1000 stitches Rs.0.07
Total cost per 1000 stitches Rs.0.27
Utilities Requirements
 Electricity
 Telephone
 Fax
10.5 Assumptions
The amount of required capital which will be contributed by the partners is
Rs.5000,000. approximately Rs. 400,0000 is required for the purchasing of
machines and the remaining amount will be used for purchasing of raw material
and for the purpose of day to day operations.
The rent of office and manufacturing plant will be increased 10% per annum.
Administrative cost will be increased 7% per annum.
Depreciation will be charged 5% on machines.
Depreciation will be charged 20% on equipments
All partners will bring Rs.800,000 capital in business.
There will be no borrowing from any relative or friend because we have to pay
interest on it.
The amount of rent will be paid in advance for whole year.
50% of the net profit will be distributed among five partners and the remaining
amount for the purpose of reinvesting in business to expand it.
10.6 Pro forma Income statement

This income statement is for the month in which the profit is generated. That
means this is the anticipated income statement after breakeven point.
Nirwana Embroidery (pvt) Ltd.

Income Statement
For the month of June 30, 2011
Revenue Rs. 450,000

Less: Cost Rs. 170,000
Gross profit Rs. 280,000
Less: Operating cost Rs. 75,000
Net profit Rs. 205,000
10.7 Pro forma balance sheet

Nirwana Embroidery (pvt) Ltd.
Balance Sheet
January 1, 2011 to May 1, 2011
Assets
Cash 430,000
Furniture 40,000
Machinery and equipment 4000,000
Accounts Receivable 160000
Total Assets 4630,000
Liabilities
Accounts Payable 300,000
Payroll 100,000
Capital 4500,000
Total Liabilities & Equities 4630,000
10.8 Cash flow projection
Month Opening balance Cash flow Closing balance

January 430,000 -70,000 360,000
February 360,000 -60,000 300,000
March 300,000 -40000 240,000
April 240,000 20,000 260,000
May 260,000 40,000 300,000
June 300,000 14,000 314,000
Sources and uses of funds
The major source of funds is the owners of the business that will invest
Rs.750000 each. There will be no borrowing from any financial institutions, family
members or friends. So sources of funds will generate by the partners.
After generating the funds we will use these funds on the purchasing of machines
and for daily operations.
Return on Investment
Net Profit
Return on Equity
Total Assets
20,5000/463000= 4.42%

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0300-7289707 rai_shahzad2000@yahoo.

Shahzad Azeem (G.L) 042

COMSATS Institute of Information Technology Sahiwal.

4.1 Mission Statement

4.2 Vision Statement:

4.3 Company’s Slogan:

“Style with Comfort”

Objectives and Goals

Company Name: Nirwana Embroidey (pvt) Ltd.

Business Type: Manufacturers/ Distributor

Main Markets: Pakistan (Punjab)

Year Established: 2011

Address: Manufacturing Unit: Sahianwala interchange road 266 RB

Contact (Unit): UAN: 111-333-444

6. Brief Profile of Entrepreneurs

Name: Mr. Shahzad Azeem

Name: Mr. Bilal Ibrahim

Name: Mr. Waqas

Name: Mr. Wajahat Hussain

Name: Mr. Shahzad Younus

Name: Mr. Hafiz Zafar

cheap embroiders in the market. The proposed unit is capable of producing

Our Comparative Advantage

7.1 Competitive Analysis

 Saleh Al Qallaf Trading, Bahrain

7.2 Marketing Mix

7.2.3 Place /Location

7.2.4 Promotion/ Promotional tools

7.3 Market Segmentation

7.3.1 Target Customers

7.3.2 Value Proposition

7.3.3 Development Status

 Developing a good range of designs

 Surveys shall be committed to know desires of customers.

8.1 Form of ownership

8.2 Identification of partners

Muhammad Waqas Bilal Ibrahim

8.3 Management Team

8.4 Human Resource Required

Position Required Monthly Annual salary

Working time estimates are given in the following table:

8.5 Contingency Plan

9.1 Description of companies operation

more profitable production pattern taking into account a necessary production

9.2 Flow of orders for goods and services

9.3 Technological utilization

10. Financial plan

10.1 Land and Building requirement

10.2 Machines Required

Average stitches per head per hour 30,000 per hour

10.3 Office Equipment

Item Required Cost (Rs.)

Note: Depreciation will be charged on Equipments @ 20% under straight line

10.4 Raw Material

Required raw material and their approximate costs as follows:

10.6 Pro forma Income statement

Nirwana Embroidery (pvt) Ltd.

Revenue Rs. 450,000

Net profit Rs. 205,000

10.7 Pro forma balance sheet

Total Assets 4630,000

Total Liabilities & Equities 4630,000