BUSINESS PLAN

FOR
GUITAR PRODUCTION
UNIT
PRESENTED BY
ARNAB BHATTACHARYA
ANIRBAN BHATTACHARYA
ARGHYADEEP MITRA
SHAMBO ROYCHOUDHURY
MANISH NEL CHATTERJEE

Indische Guitars

January 5, 2016

Contents
Purpose of Funding..................................................................................................... 3
Executive Summary.................................................................................................... 5
The Company................................................................................................................ 5
Corporate Plan.............................................................................................................. 5
The People.................................................................................................................. 6
Arnab Bhattacharya...................................................................................................... 6
Anirban Bhattacharya................................................................................................... 7
Arghyadeep Mitra......................................................................................................... 7
Shambo Roy Choudhury................................................................................................ 8
Manish Nel Chatterjee................................................................................................... 9
Introduction.............................................................................................................. 10
Industry....................................................................................................................... 10
Mission Statement...................................................................................................... 10
Goals & Objectives...................................................................................................... 10
Workshop Hours.......................................................................................................... 12
Location...................................................................................................................... 12
Floor Plan.................................................................................................................... 13
Business Cycles.......................................................................................................... 14
Average Business Day............................................................................................. 14
Average Business Week........................................................................................... 14
Average Business Month.......................................................................................... 14
Average Fiscal Year.................................................................................................. 15
Supply Analysis........................................................................................................ 15
Products & Services.................................................................................................... 16
Pricing......................................................................................................................... 16
Promotions.................................................................................................................. 16
Positioning, Targeting & Segmentation.......................................................................17
Specific Market Analysis............................................................................................. 17
Sales Strategy............................................................................................................. 17
Advertising.................................................................................................................. 18
SWOT Analysis............................................................................................................ 20
Capital Budget............................................................................................................ 27
Product Cost Analysis.................................................................................................. 28

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Table 1: Product Cost Break-up................................................................................ 28

Operating Expenses.................................................................................................... 28
Table 2: Estimated Monthly Operating Expenditures...............................................29
Table 3: Working Capital Requirements.......................................................................29
Table 4: Required Capital Expenditure........................................................................30
Profit Projections......................................................................................................... 31
Income Statement...................................................................................................... 31
Table 5: Projected Income Statement for the Year Ended 31.03.17............................31
Estimated 5 Year Profit & Loss Projections..................................................................32

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Purpose of Funding
Indische

Guitars

aims

at

being

Limited

Liability

Partnership

firm

with

founding/working partners namely:

Arnab Bhattacharya

Luthier, QA & Production

Anirban Bhattacharya

Luthier, QA & Production

Shambho Roychowdhury

Assistant Luthier & Sales

Arghyadeep Mitra

Assistant Luthier & Sales

Manish Nel Chatterjee

Marketing & Finance

According to preliminary research and estimation the total capital investment required
to launch the business is 29,36,100.00 (Twenty Nine Lakh Thirty Six Thousand One
Hundred). This includes the initial expenditure required to get the business
incorporated and established and assets to kick start the production process. It also
covers average recurring monthly costs for a period of 6 months.
This capital contribution will help the business grow and also provide financial
cover for the initial two years during which the business is expected to break even
(Please Refer Profit Projection). The estimated investment amount has been arrived at
by considering current costs of raw materials and parts required for production as well
as estimation of certain pre and post incorporation expenditures such as incorporation
expenses and monthly recurring expenditures like Advertising, Telephone & Internet
Charges and Rent etc.
We propose the capital investment be carried out in two phases:

The first installment of 20,60,100.00 will be utilized in meeting startup costs to

get the business running. It will include purchase of fixed assets, initial inventory
required for sample products/prototypes, meeting pre-incorporation expenses

such as legal fees, paying security deposit and advance rent etc.
The second installment will consist of two parts namely Cash for Working Capital
and Cash Reserve for Expenses
1. Cash Reserve for Expenses:

Cash

Reserve

amounting

to

4,92,000.00 (Four Lakh Ninety Two Thousand) will be utilized in meeting

monthly recurring expenses for a period of 6 months. This cash will be
used to meet everyday expenses during initial months when the business

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has just been set up, and/or when the revenue from sales is below
expectations. Details of the amount is provided in Table 4 titled Required
Capital Expenditure.
2. Working Capital: This amounts to 3,84,000.00 (Three Lakh Eighty
Four Thousand), details of which are calculated in Table 3 titled Working
Capital Requirements. This amount will be invested in the business
cycle and will help maintain working costs while debtors are realized.
The repayment of the capital is estimated to be done over a period of 4 years,
and will be inclusive of an increased return on the initial investment. The rate of
interest to be provided to the investing partner and the periodicity of repayment
will be decided upon by mutual consent before the initial funds for business
incorporation are released.

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Executive Summary

The Company
Indische Guitars aims to penetrate the Kolkata/India music and guitar market by
producing and marketing premium quality guitars to hungry guitarists at competitive
and affordable prices. On being incorporated, this company will look to attract guitarists
of all of ages and genres that are seeking affordable, premium quality guitars.

Corporate Plan
Our goal is to supply the city/country with a guitar-specialized production unit that
provides high end guitars, built to exacting standards, and offering premium feel and
sound at affordable prices. We will have two base product lines, one being an affordable
mass produced instrument at a fixed price, and a custom line specializing in ultra-high
end

built

to

order

instruments

constructed

according

to

individual

customer

specifications and designs. We want to have our workshop in place by second-quarter

of 2016 in the suburbs of Kolkata. We would currently be the only high end electric
guitar manufacturer in the city, so it is important that we start with a proper goal in
mind.
The goal in the first couple of years is to remain feasible and operate with a positive
cash flow in order to sustain growth in subsequent years. We will use different
advertising and promotional mediums to reach the desired target markets in the city. If
the first few years prove successful, then the company could look into diversifying
production into other instrument markets as well.
Financially, owners/managers must be provided with an income that is greater than the
opportunity cost incurred by being a part of Indische Guitars. A solid chance of
improvement of income in the future would outweigh the risks of business.
The following is a plan that explains the business in detail including operations,
marketing, and key financial plans. Financial models will be attached in spreadsheet
form to go along with this report.

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The People
Any visionary dream may start with a simple idea, but it may only be turned into a
profitable endeavor with experience, dedication and innovation. The five people behind
this project bring to the table a diverse range of experience from different areas of life
and expertise in various fields. Each member of our team also possesses a unique
skillset to contribute to the project, giving it just the right balance of abilities needed to
make it a success.
The following are the people behind the vision:

Arnab Bhattacharya
Head Luthier
An avid bass player possessing an advanced degree in science, luthiery started as a
simple hobby about 12 years ago, and over the years eventually transformed into the
work of a craftsman, with each new build breaking boundaries for complexity and
extravagance. During this time period, I have built a large repertoire of instruments,
from local woods as well as imported exotic woods, ranging from simple, low-budget
workhorse instruments, to custom designed and hand crafted beauties limited only by
the imagination of the customer.
An avid painter, photographer and graphic artist, I have strived to outdo myself with
each individual build, improving my construction and my designs. Over the last 6 years,
what started off as a simple leisure pursuit turned into a lucrative alternative career
option with an immense outlet for creative ide
as. This, in turn, allowed me to build a unique customer base, one which seeks unique
instruments with innovations that have no precedent in India, such as my Truss-Less
Neck system. This customer base has been ever-growing, even expanding overseas,
with my instruments making their way into the hands of renowned European musicians.
In 2012, my interest grew from stringed instruments (mainly guitars) to simple
percussion instruments and within a year my handmade custom Cajons were
exceedingly well received by the Kolkata market, with almost all of Kolkatas
established percussionists having purchased at least one.

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All of the above considered, I bring in over a decade of experience as a luthier to this
endeavor, along with various other acquired skill-sets and a well-established customer
base.

Anirban Bhattacharya
Luthier
A musician by profession with over 15 years of stage experience playing the guitar in a
wide variety of genres and styles, I have always had a keen interest in how guitars were
made. When my brother (Arnab Bhattacharya) embarked on his journey into Luthiery, I
remained by his side as his ever learning assistant. After practicing the craft under him
for almost a decade, I completed a solo build in 2013 to prove my abilities to myself.
I am currently pursuing a Masters Degree in Classical Guitar Performance &
Composition from Trinity College, London. I conduct and participate in workshops all
over India, giving me the scope to demo and market our endeavor to a wide
demographic. This will increase the reach and visibility of this company in various
regions.
Also, as a full time member of popular Kolkata bands Cadence of Tears & AITU, I have
access to a large fan-base, allowing me to promote our products during performances
and fan meets, to established and aspiring musicians alike. The added experience and
education in Western Classical music will also allow me to setup, evaluate, and
maintain the quality of, our instruments while having access to a wide demographic will
allow me to evaluate the demand for different types of instruments among the masses.
Arghyadeep Mitra
Assistant luthier
Arghyadeep Mitra, 23, is a guitarist of almost ten years experience, bibliophile, metal
head and gear nut. A graduate of St. Xaviers, Kolkata, in Economics, he is a passionate
musician, and has dreamed of impacting the musical world in ways beyond just writing
and performing music.
A very driven youngster, he brings to the table experience and knowledge in the
construction, setup, and tonal qualities, of electric guitars and their electrical
subsystems, extending to a deep understanding of what hardware and components suit
different forms of music and varying playing styles. Also, being a guitarist himself, he

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instinctively understands the desire for comfort, clear sound, and playability, from a
guitar that every guitarist has.
Outside of music, he is an ardent reader, happy to read anything, ranging from fantasy
and classical literature to treatises on astronomy. Possessing an unusually high IQ, no
book or topic is outside his sphere of interest. He is also an enthusiastic gamer, and a
big foodie. While usually disinterested in academics, he is highly driven in matters that
mean a lot to him, and will stop at nothing to carry out any work or task that he feels is
his responsibility. Also a fantastically rational analyst, he has an eye for detail and is
highly competent at inferring conclusions from hard datasets, and

is capable of

maintaining a cool, collected head in different situations, often easily doling out the
most practical solution for a problem.
Uncompromising, highly motivated, a maverick, he is one of Indisches assistant
luthiers and sales personnel.
Shambo Roy Choudhury
Assistant luthier
Shambo Roy Choudhury is a 25 year old musician, an audiophile, and a guitar nerd.
A science graduate, he has always been interested about how things work, and being a
guitar player primarily, has always possessed deep curiosity about the guitar as a
system.
He has been playing the guitar for over seven years and has extensive experience in
both live and studio situations, and possesses a deep understanding of what is needed
from a guitar by a performer in most situations.
He has always been interested in the art of Luthiery. Meeting Arnab Bhattacharya has
been the catalyst to push this interest to the next level. Also, with a diploma in
Graphics & Animation from MAAC, he can provide invaluable graphic design and 3D
modelling expertise to the business.

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Manish Nel Chatterjee

Marketing & Finance
Ever since my school days I have dreamt of being an entrepreneur, of having the
freedom to make my own decisions, and to exercise my skills and abilities. Keeping this
in mind, I pursued a degree in Commerce.
By the time I graduated from St. Xaviers College, Kolkata with B.Com (Honors), this
idea had only solidified. A specialization in Finance & Accountancy provided me with
insight into the day to day working of a business with respect to operations, capital
management, bookkeeping, etc.
Apart from being enthusiastic about business, I have am passionate about music. I
have been playing the bass guitar for five years now, and have slowly build
considerable experience and knowledge of music, and an insight into the role of bass in
providing cohesion to a song.
Therefore when I met Arnab and the idea to start a guitar production unit was formed, it
was inevitable that both my fields of knowledge would come together to form an
inseparable bond.
Being one of the five co-founders of Indische Guitars, I bring onto the table knowledge
in financial operations and book keeping, experience in the supervision of expenditure
of funds for various business processes and in profit maximization. Fueled by love of
music and of the instrument, it provides personal motivation to work with dedication on
behalf of Indische Guitars and gives me the incentive to put in as much time and
energy as needed to make it grow from the idea it is today to the grand heights that I
dream of carrying it to.
I bring to the table strong personal interest in the brand, expertise in various business
related fields, as well as strong motivation and personal desire to push Indische Guitars
far beyond the idea that it is today.

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Introduction
Industry
The musical instrument industry in Kolkata covers a vast amount of area including
wind, brass, percussion and string instruments as well as their respective accessories
and sound equipment requirements. The guitar industry specifically narrows focus to
electric and acoustic guitars, guitar amplifiers, pedals and respective accessories
(strings, picks, cables and sheet music). Industry research done by us shows that
musical instrument retailers achieved a third consecutive quarter of sales growth in the
first quarter of 2015. This growth is being driven by guitars primarily due to its
explosion in popularity among young musicians as well as for musical schools. Figures
compiled from all over India show strong industry growth, from a total sales of over
50,000 units in 2010 to over 200,000 in 2015. The sales of budget (<20,000) fretted
instruments have also risen 3.6% this past year. Such strong growth is indicative of
high profitability, and is a positive sign for a firm looking to enter this industry.
Lower average prices for guitars have sparked a growth in guitar purchases by both
ends of the age spectrum. More and more teenagers and young adults are starting out
with guitars due to influences such as video games like Guitar Hero and the Internet,
and yet more guitarists have started forming new bands. This is due to increased
disposable income leading to greater purchasing power over the past few years. This
increased purchasing power has created a market of opportunity.

Mission Statement
Indische Guitars is committed to supporting the music sector within India by serving
new as well as well-established guitarists through the supply of high quality budget
guitars, ultra-high end custom made guitars and repairs and servicing. All of this will be
channeled through a friendly and knowledgeable local staff dedicated to providing the
best service to our customers.

Goals & Objectives

Effectively establish an image, a brand name, and a reputation for quality among

Kolkatas guitarists
Serve Kolkatas guitarists with premium segment guitars at affordable prices

coupled with efficient and prompt post-sales service

Increase the popularity of the guitar by bringing high quality guitars within the
reach of people who would otherwise not have access

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Attain profitability and cross the break-even mark by the end of the second year

of operation
Consistently achieve an average of 10 or more customers per week spending on

average 25,000 by the 2nd-3rd year of operation

Expand sales to cater to a national customer base
Maximize sales by the 5th year of operation
Create a niche price segment dominated by Indische Guitars
Become the countrys foremost guitar manufacturing brand

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Operations Plan
Indische Guitars will be both a direct sales company that will specialize in selling
premium budget guitars and custom made high end instruments to established as well
as prospective guitarists of Kolkata, India. Sales will be achieved through stores,
personal contacts and endorsements. Our staff will provide hospitable treatment as well
as knowledge and expertise to customers. Our instruments (be it budget or high-end)
will aesthetically attract customers and close sales through easy navigation and
informative product descriptions, as well as expert guidance regarding what instrument
is best suited to the playing of the customer.

Workshop Hours
Monday- Friday

10am 7pm

Saturday

10am 4pm

Sunday

Closed

We want to accommodate the high level of customer relations that Indische has aimed
to achieve and we shall do that by having at least two consistent employees working
during hours of operation. The work will be divided according to individual expertise
and skillset among the positions of Luthier, Sales, Marketing and Accounting. Our
unique backgrounds provide the skillset needed to effectively start and run the
business. With the need for excellent repair service for customers, another employee
with knowledge of guitar electronics and mechanics will be hired to conduct both
repairs and additional sales service.

Location
Indische Guitars will be located in the suburbs, Kolkata, at a commercial property. The
location will be a commercial space of 1500-2000 square feet that will be rented/leased
at current viable market rates per square foot including basic utilities. In total, the
monthly cost for lease will be around Rs. 30,000. We will choose this location based on
the following reasons:
1. Financial Flexibility The location should be relatively inexpensive for the area,
providing

adequate space and excellent positioning for the start-up, at a

price that will give the owner flexibility in budgeting. The building should provide
the preferable size for inventories and space requirements as well.
2. Distance Relative to Competitors Indische Guitars will be situated at a minimum
15 kilometers from its nearest competitor.

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3. Instruments - The distance will allow for more freedom of movement in our
marketing strategies and customer relations as there is and will be an
established and developing customer base in that area of the city.
4. Convenience The workshop would be situated in a convenient location for
potential customers to visit and the area should provide the needed consumer
traffic for the businesss sales goals.

Floor Plan

Figure 1
The proposed floor plan for Indische Guitars is designed to allow efficient production,
finishing and setup of guitars. There will be a main production space where inventories
will be held and viewed, allowing for a very smooth flow of production traffic on the
floor as shown in Figure 1 above. There will also be places where customers can test
out guitars that they are interested in. This area will be located in a partitioned section
from the main area, containing guitars and amplifiers. Raw materials like wood stocks
will be held in racks for easy viewing and access. There will also be a separate room for

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spraying guitar bodies. Another room will be partitioned off to act as the setup and
service area and a final room will be there to act as the business office.

Business Cycles
Average Business Day
There will be little variability in business days at Indische throughout the year. The
owners/managers will check over necessary inventory lists and store needs such as
product placement. The schedule and target for the week will be set on every Monday
morning with a short meeting. Production each day will commence with specific tasks
involving choice and sorting of wood, hardware and finish, and details of such
production targets will be put on specific tabulated forms to be displayed in the main
production area for convenience of each workstation. All employees must know the ins
and outs of each instrument produced as guitarists will have more respect for
knowledgeable staff that are willing to spend time discussing the products in question.
Weekends will have a lower workload in order to provide the staff with a satisfying work
environment. Accounting for everyday sales and purchases as well as income and
expenditure will be carried out, for which records will be kept in the form of daybooks
and cashbooks.
Time for other sales/repair work that will have been brought in on earlier occasions will
be allocated separately. The weekend will conclude with another small meeting to
update bookkeeping, marketing strategies and daily purchase orders for inventory as
well as handling of sales duties if any are needed. The cleanup and preparation of the
work floor if necessary for the next day as well as making final inventory purchase
orders based on inventory sold during the day, will be done before closure.

Average Business Week

The owners/managers will have some major duties during a weeks time in the business
month including inventory management and payroll. The owners/managers will have to
be making inventory orders for guitars and equipment on a daily basis in order to make
inventory delivery and payment staggered and easy to operate. Advertisements and
online updates will also need to be conducted by the owners/managers during the week
in order to be prepared for the following week. Payroll will also need to be done biweekly, but, for only two staff, it will be relatively quick and simple task.

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Average Business Month

Moving from month to month will not involve much change in required tasking. Since
our business will not be seasonal, we do not have to worry about radically changing
inventories that will be stocked. Monthly sales and inventory analyses will need to be
done for each month as to which guitars and product lines were most popular with
customers in order to stock accordingly for the next month. The owners/managers will
produce statements indicating these results which can be later used for analysis and
evaluation. Customer feedback will also be important in determining the type of guitars
that will be stocked if they are available. It will also be necessary for the
owners/managers to conduct monthly environmental analysis of Kolkata and its
demographics in order to plan marketing strategies accordingly.

Average Fiscal Year

The year-end financial statements will need to be prepared by the owners/managers
once a year, most likely at year-end on March 31 of each year. The complete business
analysis will also be produced to examine sales, marketing efforts, successes, failures
as well as an external demographic analysis. These year-end analyses will be the driver
on necessary changes to the different divisions of the business. It will reveal strategies
that are not yielding sales and inventory products that are not selling. In a general
sense, it will help to remove inefficiencies within the business, allowing for better-spent
finances and for more efficient or profitable strategies/sales to be used.

Supply Analysis
All inventories in the line will be purchased from respected manufacturers that have
strong reputations in the music and guitar industry. Wood will be purchased specifically
from reputed suppliers both local and overseas. All required parts and electronic
components will be purchased in bulk from wholesalers to reduce costs. All products
will be purchased directly from manufacturers in order to eliminate middleman costs.
These manufacturers (suppliers) have been chosen based on brand, quality, product
availability and overall service level. New suppliers will be proposed and analyzed by
the staff in order to determine if they should be dealt with by the company.

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Marketing Plan
Products & Services
Indische Guitars will be a premium guitar manufacturer that will provide affordable
products, knowledgeable and engaging staff and excellent service in Kolkata. Indische
will sell to a specific market for premium quality guitars, making models with high end
configurations at very affordable price points.
We will also provide the customers, custom designed made-to-measure high end
instruments, where they have complete control over design decisions, wood, finishing,
hardware and electronics choices.

Pricing
Indische will be entering a competitive music and instrument retail industry within
Kolkata. In the city, there are a number of small music and guitar shops mostly located
in the North and Central areas of the city. Notable competitors include Hobmer, Givson,
Yemaha, Grason, Hertz etc. which provide low quality, low budget instruments to a
large consumer base. Appendix B shows the current competitor analysis within Kolkata.
Indische will look to target the influx of low-priced but branded (Squire, Epiphone,
Ibanez, etc.) instrument influx from Chinese manufacturers, using a mixture of
penetration pricing and value-based pricing to enter the guitar retail industry in
Kolkata. The strategy is very different from the usual music and guitar retail stores
because it is based on the unique value of each guitar. Indische will be focused on
selling uniquely produced guitars for a price that will create a large margin whilst still
creating a lot of value to the customers. With the ability to produce these guitars as
factory made high-grade low priced instruments, it is feasible to sell them at a cost-plus
price. (i.e. sell at a margin of 40%-50% over production costs). The advantage of using
this strategy is that guitarists especially tend to highly value personalization on their
instruments, and by providing unique guitars for them to purchase, we will create value
for them and profit for our business. The feasibility of the business is centered on this
concept.
The pricing strategy for repairs will be competitive pricing, as there are no lost margins
for repairs, we will charge prices that equal to or just below are industry averages for
repairs

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Promotions
Indisches promotion strategy will be based on the specific pricing and services
strategies for the divisions of products. We aim to be to be recognized as a unique
guitar manufacturer that sells premium guitars at prices that no one can match and
providing knowledgeable service as well as repairs for its customers as well. We will
focus on our competitive advantage to get our name out to the market of guitarists and
musicians.

Positioning, Targeting & Segmentation

The target market will be residents of Kolkata initially and all over India after the
business has scaled up production. Kolkata is a breeding ground for up and coming
musicians looking for good quality budget instruments and this financial constraint
often limits them to a Chinese manufactured low-quality branded product. Our
segmentation will look to target this population as our primary customer base. Personal
contacts of the founders/owners will also be leveraged to provide well established and
famous guitarists with endorsements as a medium of promotion and exposure of the
brand to large fan bases.
Specifically, we will aim at targeting people aged between 12 and 55 focusing on
younger individuals who are aspiring guitarists searching for well-built guitars with good
sound at affordable prices, and on middle-aged individuals, mainly men, who have been
playing for many years.
Our positioning statement will read: For aspiring guitarists, Indische Guitars provides
premium guitars built to the highest standards from the best woods and parts at
affordable prices, with diligent after sales repair and support. This positioning
statement communicates our intentions and product offering, as well as how we
differentiate our products and services from those of other guitar manufacturers in the
area.

Specific Market Analysis

The demographics of Kolkata also show that there is a growing customer base that is
eager to get into music and specifically, guitars. With Indische Guitars producing top
quality instruments at affordable prices and with a targeted marketing and circulation
strategy, the firm is sure to surpass sales for similarly priced lower quality Chinese
products.

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The current bestselling brand is Ibanez in Kolkata, with Squire coming a close second,
with their most selling instruments ranging between 18000-25000, and with our
instruments ranging in the vicinity but with much higher quality of construction,
hardware and electronics, we are sure of reaching our target demographic. A detailed
analysis of the competition can be found under Competitor Analysis.

Sales Strategy
Indisches sales and profit objectives are:

Reach monthly sales of at least 20 guitars by the end of the first year
Establish sales channels via local retailers and distributors by the end of first

year
Earn an average owner compensation salary over the first 5 years, keeping in

mind the first years extra equity will eventually have to be paid off
Maximize sales by the end of 5th year

There are two channels of distribution for Indische Guitars, in-store purchasing and
through dealers and retailers. The in-store, direct model of purchasing will be the most
prominent for the business because customers will get to experience the quality of the
Indische instrument by trying out the guitars first-hand against commonly available
options.
Indische wants to establish itself as a new and unique guitar manufacturer in Kolkata,
known for quality products and swift and diligent service and support. We expect new
customers to enter the market as awareness of the Indische brand spreads with time.
The location and new selling strategy will place Indische in a strong position within the
market, which will have to be continuously evaluated in order to maximize position on a
consistent basis.
Indische can meet its objectives by achieving the forecasts shown in the financial
model. It must reach a sales level of 20 units per month by the end of the first year and
increase it to 50 units per month by the end of 5 th year. The sales predictions are fairly
conservative with the base case in the first year being 10 customers per fortnight
spending 25,000 each. This is made more achievable by the repairs sector of the
business. The advantage of a greater margin in guitars will be a strong advantage as
these margins are not attainable for comparably priced guitars from competitors.
Indisches different methods of selling guitars will distinguish it among competitors and
will be difficult to replicate.

Our reputation will be built upon our ability to offer

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personalized and knowledgeable customer service as well as our uniquely produced

guitar inventory provided to the customers.

Advertising
The main advertising objective in the first two years of business will be to create
awareness in the city and to persuade customers that we offer quality products as well
as personalized customer service. In the following years, advertising objectives will
focus on cementing Indisches brand in the minds of the citys consumers. The focus
will also be to penetrate the markets in other prominent cities and thus gain national
exposure. Exposure is key for the business, so most of the advertising methods have
been focused on creating more and more awareness.
The different advertising channels that will be used will include:
Newspaper/Magazine Advertisements This type of advertising specifically in
newspapers and on newspaper sites that focus on the arts and music will reach some of
the market we are targeting although large responses from these are not expected
when compared to other mediums. These ads are inexpensive and can last for the
duration of the 5-year plan changing with new offerings and promotions done by our
store.
Website The internet is the largest and fastest growing advertising channel in the
world. Consumers expect their prospective stores to have some sort of web presence
where they can scout and purchase possible products from home. Indische aims to set
up a professionally designed profile that will display info, products and promotions in an
aesthetically appealing way. The page also serves the purpose of boosting sales
through the availability of online quotes and personalized chats. Eventually, we may
look into the possibility of an online store.
Online Advertisements In addition to having a website, it will also be beneficial for
our business to purchase advertisements on popular guitar websites such as ultimateguitar.com where many guitarists from around the world can be exposed to the
awareness for our brand. Advertising by way of ads on Indian Youtube videos related to
music will also help the brand get recognition and increase awareness for the products.
We intend to follow a similar strategy with Facebook, Twitter and others social
networking websites where our target audience can be easily reached.
Posters Posters provide unique one-on-one advertising in strategic places around
Kolkata. Our primary focus is to place them in music venues and bars around the city

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where aspiring musicians and starter bands can learn about the new guitar store in the
city that wants to form a relationship with them. These posters will have eye-catching
graphics as well as basic information about the competitive advantages.
Sponsorships We will sponsor local musical events to create buzz. Events sponsored
will display our posters and hoardings and also enable us to promote our products
directly to the musicians and target audience. We will offer discounts on our products to
sort of kick start our business in Kolkata. We will promote this long before it happens in
order to have maximum awareness for the event.

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Competitor Analysis
SWOT Analysis

INTERNAL

POSITIVE

NEGATIVE

STRENGTHS
Have an
advantage in
terms of pricing
as a result of
small scale
production and
savings in overall
cost of
production.
Ability to provide
better quality
instruments with
superior
specifications at
a cheaper cost
than the
competition.
Experienced
Luthiery
knowledge allows
for production of
guitars unique in
their
characteristics in
comparison to
competition while
retaining quality
and performance
at par with the
competition, and
with even higher
quality standards
in the case of the
specialized
custom shop.

WEAKNESSES
Lack of experienced
Marketing knowledge.
Small scale production
size currently limits
meeting an increasing
demand beyond
considered levels.
Small staff size. The 5
partners will be carrying
out the all the duties from
production to sales, and
marketing.

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EXTERNAL

The ability to
garner an
audience
receptive to high
quality products
made in India by
virtue of being
the countrys first
true high end
instrument
manufacturer.

OPPORTUNITIES
THREATS
Opportunity to
Competitors such as
create a market
Ibanez, Fender, Cort have
base among
an already established
customers who
market and a loyal
desire quality
customer base. Such
instruments
customers may be less
without having to
inclined to move away.
Low end segment guitar
spend too much
makers such as Hertz,
on them.
Ability to create a
Yemaha and Grayson may
dedicated and
also may change pricing
loyal customer
policies to avoid losing
base by providing
customers.
Too much of an increase
personal
in forex prices may push
assistance and
the cost of importing
after-sales
electronic parts for the
service.
Can garner a
instruments thus leading
market space due
to increase in prices of
to being a one of
the products.
a kind Indian
Guitar
Manufacturer
providing
products of
internationally
accepted
standards.

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SWOT Analysis: In Summary

Indische Guitars will be operating in a competitive market environment which is
currently spread between low cost-low quality instrument makers such as Givson,
Yemaha, Grason which serve the demographic who cannot afford costly instruments or
who do not have much awareness as to instrument specifics and premium products
such as Ibanez, ESP, Fender, Gibson who provide quality top of the line instruments but
at a substantial profit margin. Therefore operating in such as a market is perfect for the
firm as it is the aim to fill the gap between these two extremes and in the process
induce consumers to move towards this new segment. However, this entails various
risks and threats from the competitors, both from the low and high end. On the other
hand, this also brings prospects of opportunities to explore. This has been on
elaborated upon in the above SWOT Analysis Table.
Therefore some important analysis and observations based on the SWOT Analysis Table
are given below:
1. The firms strength lies in the skill of the partners to produce unique guitars
completely different from the competition at a cheap cost and therein the ability
to maintain a healthy profit margin from the start. Moreover this advantage
allows the firm to provide the local and the national audience with specialized
precision built instruments, built to standards usually only associated with high
end foreign imports.
2. The Indian guitar market still is in a growing phase and this is an opportune
moment to introduce our products as the market demographic is mature enough
to distinguish between quality products and the cheaper copies but still do not
have huge spending ability needed to opt for quality products from premium
manufacturers. We can thereby bridge the gap and create a niche segment
which will be dominated by our brand without any competition at least for 3
years.
3. Being the first Indian guitar manufacturer to build guitars on such scale, level of
precision and quality will appeal to the audience both locally and nationally. It will
not only boost brand image and customer base but also create a better
perception of India as a strong Guitar Manufacturing hub, the world over in the
long term.
4. The inexperience of the partners with respect to marketing is a shortcoming
which needs to be addressed in the short term as the initial years will focus a lot
on marketing and brand promotion. To combat this for the first two years we
expect to hire services of marketing professionals to help promote brand image

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and products. Subsequently the partners themselves can take over the
operations once they gain reasonable knowledge and experience in the field.
5. Small size of staff is also a drawback though only in the short term. To cut costs
and boost overall profitability the partners themselves will be directly involved in
production as well as managerial tasks. This can be later remedied as overall
profitability increases by hiring required semi-skilled or non-skilled labor as the
situation permits.
6. Competitors in the premium guitar segment are truly the closest threat to the
firm, though only in the long run, due to their already established huge customer
base. However, at the scale Indische Guitars will be functioning at, we will pose
no threat to these manufacturers and therefore we do not expect any reaction
from them to our brand at least till the next 5 years.
7. The low end local guitar manufacturers are a form of indirect threat as they do
not possess the knowhow or the specialized labor to create similar products as
those of Indische Guitars. They mainly thrive by supplying basic low end low
quality instruments which are cheap copies of international guitar models.
Therefore we do not expect any direct threat from this segment till the next five
years either.
8. Lastly, factors such as foreign exchange prices can affect our product prices
since various parts for the guitars will have to be imported from outside as there
is no manufacturer for such parts in the country. However cementing
relationships with foreign suppliers on account of constant dealings will reduce
the cost of purchase thus to a great extent negating any adverse effects of forex
fluctuations.

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Competitive Advantages

Woods: the quality of wood used to build a guitar affects not only its timbre,
but also structural stability. We will use top quality woods suited for guitars.
The types of wood used per model line will also be clearly stated on all our
promotional material, being an aspect of the guitar that potential customers
will be very particular about.
Competitors at the low end such as Grason and Givson often use wood of
unknown origin, have no consistency in woods used per model, and the guitar
bodies are often covered in thick paint to hide blemishes, even rot and holes.
Competitors at the higher end, such as ESP and Ibanez, while they use clearly
demarcated wood types, one does not usually find a very big improvement in
quality until well above the Rs. 50,000 price point.
Indische Guitars will build guitars with woods that far outstrip the quality
offered by competitors both immediately above and below our price point.
Indische will also take structural stability and durability into account when
selecting woods for guitars. The wrong cut of while can potentially cause a
guitar neck to warp, bend, even potentially break. There are documented
cases

of

even

extremely

expensive

instruments

developing

structural

weakness due to using cuts of wood that were unsuitable for guitar building.
Our instruments will come with guarantees against any form of failure, and
we will be the only guitar maker in the country that offers a one year
warranty against failure of either hardware or electronics.

Hardware: the playability and timbre of a guitar also depends on the

hardware used, specifically bridges and tuning machines.
Tuners are used to tune the notes that each string of a guitar plays, they are
also used to lock down the strings at one end of the guitar. We will be offering
highly precise locking tuners, built to our custom specifications and imported.
These will allow extremely precise tuning of our guitars, and high levels of
tuning stability; Indische Guitars will not go out of tune even after extended
playing periods.

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Our competitors do not offer locking tuners until well past the Rs. 40,000
price point, and thus cannot provide the same tuning stability or precision at
the price point we will be targeting with our production models.
The bridge of a guitar is the second point where the strings are connected to
the body. Indische will be offering two types of bridges, namely a tremolo and
a hardtail. Our Floyd Rose bridges will come with stainless steel upgrades and
a heavy sustain block, thus improving the balance of the guitar as well as
extending the length of time that a played note or chord continues to ring.
Our hardtails will be made out of constructed out of specially formulated leadfree alloys, also mounted with a sustain block to increase sustain. Both
bridges will be built to custom specifications and imported.
Our competitors, both above and below our target price range, use far inferior
designs

(no

sustain

block,

less

suitable

alloys,

inferior

designs

and

specifications), thus giving our instruments a competitive edge.

Electronics: the timbre of a guitar is also hugely influenced by the choice of

electronic components, often more than even the choice of wood.
Pickups are electromagnetic transducers used to convert the vibrations of a
string into electrical current, which is then used to drive an amplifier which
outputs the final sound. The construction of a pickup hugely influences the
sound of an electric instrument. Indische Guitars will be using pickups
sourced from DiMarzio, Seymour-Duncan and EMG. We will offer various
different models from each of these companies, covering a wide variety of
sounds. Indische will offer guitars fitted with pickups suited to almost every
genre of popular guitar based music, ranging from the soft tones of blues and
country to the fierce aggression of modern hard rock and metal, and
everything in between. We may also look into ordering custom designed,
Indische branded pickups in future.
Our competitors in the same price range use generic pickup designs, often
Chinese made, that lack clarity and often have very poor timbre and volume
when played through an amplifier. No Indian competitor uses US and UK
sourced pickups such as Indische, and foreign manufacturers do not offer
these pickups below the Rs. 50,000 price point.

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Ergonomics: Our guitars will come in a variety of shapes, all designed to feel
comfortable and balanced for a guitar player. Competitor shapes tend to
follow tried and tested designs which are not scientifically ergonomic or
comfortable.
Paints and Finishes: Indische will offer a variety of paints and finishes on our
guitars, ranging from subtle solid colors to truly mesmerizing swirls and
mixes. While such finishes may be availed at higher price points, no Indian
competitor offers such finishes, and most foreign competitors only offer a
limited choice of colors on their models.

Warranty and Service: Indische will be the only manufacturer in India offering
a one year warranty on all components and a service center where musicians
may get their instruments adjusted and repaired. No competitor at any price

range offers this.

Custom Shop: Indische will also offer the option of a custom shop, where a
customer may have a single, one-off guitar designed and built according to
his exact specification. Woods, hardware, electronics, finish, and body design
will all be the choice of the customer. This custom shop will cater to the ultrahigh end market, above the Rs. 50,000 price point. No competitor offers
custom made instruments below the 2 Lakh price point, and often these need
to be imported from abroad, incurring a price penalty due to taxation.
Moreover, these instruments are not designed in India; for example, to order
an Ibanez custom, one would need to contact their Los Angeles custom shop,
which may or may not accept the proposed design. Other custom makers
exist, but again none in any convenient location (Mayones and RAN: Poland,
Ormsby-

Australia,

Strandberg-

Sweden,

Washburn

and

Carvin-

USA).

Therefore, the Indische custom shop will have a monopoly of the custom
ultra-high end market.

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Financial Plan
Capital Budget
The total capital requirement for Indische Guitars as mentioned previously is
2936100.00 (Twenty Nine Lakh Thirty Six Thousand One Hundred). This cost includes
leasehold improvements for the space assumed, machinery, stock, including computer
equipment and custom design costs. It also includes cover for average monthly
operating expenses for a period of 6 months. This amount is kept aside to cushion the
business from uneven sales and revenue for the first 6 months when the business is
settling in. The detailed breakup in the funding amount and its utilization can be found
in Table 4 titled Required Capital Expenditure.
Inventories are estimated based on the selling price being 17017.00 (assuming a
profit of 43%) and averaging the prices for custom inventories. This inventory cost
breakdown can be found in Table 1 titled Product Cost Break-Up below. There will
be accounts receivable as sales made via retailers will be on credit basis. However
direct sales to end users will also be made which will be on cash-only basis. Such direct
sales made to the end users/customers will be done directly from the workshop so as to
strengthen sales initially and also give the end user a personal insight into what the
firm stands for and what we aim to achieve i.e. Premium Quality & Affordability.
Accounts payable will be maintained on the purchase of inventory from manufacturers.
This will include Raw Materials such as wood supply and semi-finished goods such as
electronics (pickups, preamps, and potentiometers), bridges, tuners, etc.
The liquidity value of these inventories after processing is much higher than their cost,
meaning that profits will increase high above purchase costs. For example, we foresee
high margins for the sale of guitars as we can increase price based on their cost to
purchase raw materials in bulk.
The table below (Table 1) shows us the break-up of product cost for one unit/ product.
The above figures have been considered by taking a conservatively higher cost of each
individual component so as to cushion against any increase in the prices of individual
components as the prices of some components being imported from abroad will be
heavily dependent upon the foreign exchange rates and/or the accompanying taxes
and duties.
However despite assuming a higher cost of sales, the overall cost is still quite low and
is very beneficial from a pricing perspective as it helps to maintain a higher profit

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margin and also allow the retailers to keep better margins for themselves all the while
keeping the overall MRP from going beyond our target estimate of 25000 per guitar.

Product Cost Analysis

Table 1: Product Cost Break-up
PARTICULARS

COST (Rs.)

Body Blank
Neck Blank
Fretboard Blank
Pickups
Bridge (Floyd Licensed)
Machine Heads
Electronics
Misc. parts costs
Paint/Finish
Gig Bag
Electricity consumed (calculated as per 25 units produced
per month)
Logistics
Other incurred costs
TOTAL
Profit@ 43%
APPROXIMATE SALES VALUE

400.00
300.00
400.00
5000.00
1700.00
1300.00
250.00
1000.00
250.00
300.00
500.00
250.00
250.00
11900.00
5117.00
17017.00

The profit margin has been currently assumed at 43% so as to allow for retailers to
keep a good profit margin for themselves while keeping the product at an affordable
cost. This strategy will also create an incentive for retailers to market and promote our
products, as they stand to earn a much greater profit by selling an Indische as
compared to a guitar made by a competitor.
Operating Expenses
Indische will be open 6 days every week for 52 weeks a year excluding statutory
holidays. The estimated monthly operating costs are listed as follows in Table 2 titled
Estimated Monthly Operating Expenditures. Insurance will be necessary for the
inventories as there will always be risk of damage due to vandalism, accident or
weather conditions. It is anticipated that advertising expenses could rise if opportunity
to reach more customers presents itself. Parts and tools inventory supplies will be a
continuous expense and will likely vary each month in connection with the amount and
nature of sales and orders.

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In Table 2, the Operating Expenses is divided into two sections namely Fixed Costs and
Variable Costs. Fixed Costs will remain constant over the months irrespective of the
production process or quantity whereas the Variable Cost component will change
according to the change in production scale. It should be noted that the costs are all
estimated on a conservative approach so as to cover any fluctuations in costs; real
world figures will be lower than the estimates shown.

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Table 2: Estimated Monthly Operating Expenditures

PARTICULARS

Estimated
Costs

FIXED COSTS
Building Rent
Insurance (Annual Prem/12 mts)

35000.00
2500.00

Telephone & Internet Charges

3500.00

HR Expenses:
Employee Salaries
Employee Benefits (15% of Basic)
TOTAL FIXED COST

25000.00
66000.00

VARIABLE COSTS
Supplies (stains, paints, glues)
Office Supplies
Advertising, Consumables & Other Variable Costs
TOTAL VARIABLE COST

10000.00
1000.00
5000.00
16000.00

Total Operating Cost

82000.00

Table 3: Working Capital Requirements

AMOUNT()

PARTICULARS
TOTAL COST OF PRODUCTION
(11900*20) [A]
Monthly Variable Expenses:

OF

GUITARS

Supplies (Stains, Paints, Glues)

Office Supplies
Advertising, Consumables & Other Variable
Costs

238000.00

10000.00
1000.00
5000.00

TOTAL MONTHLY VARIABLE EXPENSES [B]

Monthly Fixed Expenses:
Building Rent
Insurance (Annual Prem/12 )
Telephone & Internet Charges

16000.00
35000.00
2500.00
3500.00

HR Expenses:
Employee Salaries
Employee Benefits (15% of Salaries)

25000.00

TOTAL MONTHLY FIXED EXPENSES [C]

66000.00

TOTAL CASH EXPENSES [A+B+C]

320000.00

Contingencies ( 20% of Total Cash Expenses)

[D]

TOTAL
WORKING
REQUIREMENTS [A+B+C+D]

CAPITAL

64000.00

384000.0
0

From the above table we can estimate that the working capital requirement of the
business will be 384000.00. However this amount to working capital will increase from

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January 5, 2016

2nd year onwards when there is an increase in production scale. Therefore the above
working capital has been calculated keeping in mind production of 20 units on average
per month. Revenue from the sale of units will be reinvested to working capital for use
in the next cycle. This working capital requirements is included in the total fund
requirement though it will be a one-time investment.

Table 4: Required Capital Expenditure

START UP YEAR COSTS
START UP ASSETS
Machinery
Computer & Printer
Furniture & Fixtures:
Racks
Shelving
Stools
Work Counters/Benches
Inventory Hangers
Spray booth
Fire Extinguishers
CCTV System
Inventory
Cash at Bank
TOTAL ASSETS AT START UP (A)

AMOUNT
500000.00
30000.00
10000.00
8000.00
2000.00
15000.00
5000.00
20000.00
21700.00
18400.00
500000.00
100000.00
1230100.0
0

START UP EXPENSES
Cost of Sample Inventory
Rent Deposit/Advance
Legal & Incorporation Expenses
Electricity
Office Supplies
Pre-Opening Marketing Costs
Telephone & Internet Connection Charges
Miscellaneous Expenses
TOTAL EXPENSES AT STARTUP (B)

400000.00
250000.00
60000.00
5000.00
100000.00
5000.00
10000.00
830000.00

TOTAL STARTUP COST (A+B)

MONTHLY RECURRING COSTS
FIXED COSTS
Rent
Insurance Premium
Internet& Telephone Charges
HR Expenses:
Employee Salary
Employee Benefits (15% of Basic)
Page 32

2060100.
00
35000.00
2500.00
3500.00
25000.00
25000.00

Indische Guitars

January 5, 2016

Total Fixed Costs

VARIABLE COSTS
Supplies (Stains, Paints, Glues, etc.)
Office Supplies
Advertising & Other Consumable Costs
Total Variable Costs
TOTAL MONTHLY RECURRING COSTS

TOTAL RECURRING COSTS (C)

( For a 6 month period)
WORKING CAPITAL REQUIREMENT
(D)
TOTAL CAPITAL EXPENDITURE
(A+B+C+D)

66000.00
10000.00
1000.00
5000.00
16000.00
82000.00
492000.00
384000.00

2936100.
00

Profit Projections
Income Statement
Table 5: Projected Income Statement for the Year Ended 31.03.17
PARTICULARS
SALES Revenue (Considering 20 Units p.m.) [17017*20]*12mts
Less: Cost Of Sales (11900*20)*12mts

AMOUNT
4084080.00
(2856000.00)

Gross Operating Profit/(Loss) 1228080.0

0
Less: P/L Expenses
Rent
Insurance
Telephone & Internet Charges
Salaries
Depreciation of Machinery
Depreciation of Furniture
Supplies (Stains, Paint, Glue, etc)
Office Supplies
Advertising, Consumables & Other Costs

420000.00
30000.00
42000.00
300000.00
47500.00
10800.00
120000.00
12000.00
60000.00

Net Profit/(Loss) 185780.00

The Income Statement shown above is an estimate of the profitability for the first year.
The most important assumption here is that sales number 20 units per month on an
average throughout the year. We expect sales for the first couple of months will be slow
and below the threshold limit of 20 units p.m. due to lack of brand exposure and
product knowledge.

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However towards the latter 6 months we should have built awareness of our brand and
range of products amongst most retailers and a good number of consumers and we
anticipate that this will help push sales upward, thus getting an overall average of
around 20 units p.m. at the end of the first financial year.

Estimated 5 Year Profit & Loss Projections

Table 6: Profit & Loss Statement for next 5years

PARTICULARS

2016-17

2017-18

2018-19

2019-20

2020-21

SALES

4084080

4900896

5881075.
2

7057290.
24

8468748.
29

(2856000)

(2793510.
72)

(3352212.
86)

(4022655.
44)

(4827186.
53)

1228080

2107385.
28

2528862.
34

3034634.
80

3641561.
76

Rent
Insurance
Telephone &
Internet
Charges
Salaries
Depreciation Of
Machinery
Depreciation Of
Furniture
Maintenance Of
CCTV
System
Maintenance Of Fire
Extinguishers

420000
30000
42000

420000
30000
42000

420000
30000
42000

420000
30000
42000

420000
30000
42000

300000
47500

300000
47500

300000
47500

300000
47500

300000
47500

10800

10800

10800

10800

10800

1200

1200

1200

1200

500

500

500

Supplies (Stains,
Paint,
Glues)
Office Supplies
Advertising,
Consumables
& Other Costs

120000

120000

120000

120000

120000

12000
60000

12000
60000

12000
60000

12000
60000

12000
60000

185780

1063885.
28

1484862.
34

1990634.
80

2597561.
76

Less: Cost Of Goods

Sold
Gross Profit/
(Loss)

Net Profit

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The above table shows a prediction of yearly sales growth and the resultant net profit
over the period of 5 years. Some important observations are as follows:

The sales has been estimated to increase by 20 percent each year.

The cost of goods sold has been calculated by considering a steady profit of 43

percent over the years.

The amount for depreciation of machinery has been calculated by taking the
entire value of machinery at purchase and dividing the cost over its lifespan after
deducting assumed scrap value of 10 percent of cost price, i.e. {[(500000-

50000)/10]/12}.
The amount of depreciation for furniture has been calculated by taking the entire
value of furniture at purchase and dividing the cost over its assumed lifespan
after deducting assumed scrap value of 10 percent of the cost price, i.e.

{[(60000-6000)/5]/12}.
The maintenance of CCTV system is free for first year and hence no cost has
been attributed. From 2nd year onwards a yearly charge of 1200 is attributed to

maintenance.
Similarly as above the first two years maintenance for Fire Extinguisher System
is provided free of cost after which a yearly charge of 500 will be incurred.

The profit projections provide an indication of the profitability of the business over a
comparatively long period of time. Though there are several costs that can fluctuate
over the years to come the business has a really strong potential to be a serious market
contender. The overall sales increase has been taken to be a steady growth of 20
percent year on year however according to the increase in demand by the end of the
second year the overall sales can increase well beyond the anticipated figures thus
pushing a higher net profit.
The projection growth are showcased in the line graph below.

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ESTIMATED 5 YEAR PROFIT PROJECTION

9000000
8000000
7000000
6000000
5000000
AMOUT

4000000
3000000
2000000
1000000
0
2016-17

2017-18

2018-19

2019-20

YEAR ENDINGS
SALES

GROSS PROFIT

Page 36

NET PROFIT

2020-21

Indische Guitars

January 5, 2016

Future Expansion & Custom Shop

Gibson, Fender, Ibanez, etc. hold such an iconic position in music history that it is
difficult to begin describing any aspect of any one of the companies without sounding
redundant. Mention Gibson or Fender to ones grandfather, and he will know exactly
what you are talking about, and it wont just be guitars. The name instantly conjures up
images of everything from Les Pauls, Stratocasters, Telecasters, Precision and Jazz
basses, korina-bodied Flying Vs, Sputnik and Rock and Roll to Mother Maybelle Carters
L-5, Jaguar, Mustang, Americana and the birth of almost every kind of modern music
and popular culture. With such a storied past, paired with uplifting tales of each of their
reputation and resurrection, no overview of what each of them is about seems needed.
However, as preferences in the guitar market have made a pronounced shift toward
smaller, boutique builders, unique one-off instruments and genre driven electronics,
hardware and design, new avenues have opened up for meticulous premium
instrument builders who provide one on one interaction and a completely interactive
experience for their own custom built instruments. This has, in turn, opened up the
market for next generation materials and technologies with almost 200-300 new guitar
patents filed every year (United States Bureau of Patents). This alone directs that once
Indische gains a foothold in the market, an expansion to a devoted Custom Shop
venture is absolutely necessary to stay ahead of competitors and to gain traction more
driven players for whom price is not a stumbling block.
The following expansion plans and their proposed timelines are mentioned below:

Inclusion of semi-custom instruments 6-12 Months

This will allow the customers to have their specific choice of some of the components
and color options of their guitars at a higher price point.
Expansion into premium acoustic and 1-2 Years
classical instruments
A line of hand-made, ultra-premium acoustic and classical guitars will be added.
Expansion of production capacity 1-2 Years
More staff will be hired and production capacity expanded to meet growing demand.
Full-fledged custom shop facilities 1-2 Years
Fully custom designed instruments for our most demanding customers. Each
instrument will be a unique, master built guitar, and will be built to the exact creative
and technological specifications of each customer at a premium price point. This will be
our flagship instrument line.

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Conclusion
The city of Kolkata is ripe for a specialized guitar manufacturer to enter its market.
Indische Guitars plans to change the scene by offering a unique type of guitar inventory
that will attract guitarists from all around. A detailed financial analysis of this proposed
business proves that Indische Guitars is feasible and has the opportunity to attain
profits and deliver a quality service and product line to its customers.

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Indische Guitars

January 5, 2016

Notes

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