Decision Report on
Apparel Business 
 
 
Submitted to
Prof. Rahul Shukla

 
Submitted by
Payal Dabir (BJ21157)
 
On
September 30, 2021

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Payal Dabir,

Consultant – Apparel Businesses

To,

Mr. Aditya Sandhu

Sandhu Uniforms Pvt. Ltd.

Nagpur, Maharashtra

30 September 2021

Subject: Decision report on the future course of action of Sandhu Uniforms Pvt. Ltd.

Sir,

This document proposes a course of actions that you can take to scale-up your business. I

have carried out a situational analysis. Then, I have proposed three criteria to evaluate the

possible alternatives. Keeping in mind the aim of increasing business footprint in India and

strengthening the brand value, I recommend venturing into the apparel business but using the

e-commerce or partnering with large retail chains. This will help the business grow and be

sustainable

I believe that this alternative best suits the current situation of your business and helps it

arrive at the desired state.

Best regards,

Payal

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 Executive Summary

Sandhu Uniforms Pvt. Ltd. is in the business of manufacturing and servicing of industrial
uniforms as of 2020. They have over 30 years of experience in uniform manufacturing and
have garnered clients and established trust with them.

In the aftermath of the global pandemic, Sandhu Uniforms was forced to shut daon
temporarily. To avoid financial fallouts, a business decision of manufacturing face masks was
taken. This is among the first digresses of the company away from the traditional business of
manufacturing uniforms.

In order to develop a sustainable competitive advantage and run the company for many more
years to come, Sandhu Uniforms is looking at opportunities of expansion and diversification.

In this light, Sandhu Uniforms Pvt. Ltd. is advised that it should foray into the apparel
manufacturing industry. This would require overhaul of the existing processes and the name
of the company. Through this, I think the company can achieve its desired state and continue
being a relevant player in the apparel business.

No. of words: 163

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CONTENTS

LETTER OF TRANSMITTAL ………………………………………………………2

EXECUTIVE SUMMARY ………………………………………………………3

SITUATION ANALYSIS …………………………………………………………5

PROBLEM STATEMENT …………………………………………………………5

ALTERNATIVES …………………………………………………………5

CRITERIA FOR EVALUATION …………………………………………………………6

EVALUATION OF ALTERNATIVES …………………………………………………6

RECOMMENDATION …………………………………………………………8

ACTION PLAN …………………………………………………………8

CONTINGENCY PLAN …………………………………………………………8

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 Situation Analysis

Sandhu Uniforms Pvt. Ltd. is at the crossroads of expanding in either direction of increasing
its visibility by entering into the retail apparel space or expanding their current uniform
offerings.

The apparel industry is booming with the industry slated to grow at 11% from 2017 to 2021.
This is a fairly fragmented industry with over 300 existing players.

The uniforms industry is also seeing a growth. More and more international brands are seeing
this as an opportunity and are wanting to enter the Indian business landscape. Sandhu
uniforms has a rich and varied experience in this industry that dates back to 1991.

The Problem Statement

Mr. Aditya Sandhu wants to arrive at a strategy for the future of his company. He wants to
decide the direction in which he should expand given the current situations and opportunities.

Current State:

 In the industrial and security uniforms business

 Has clients in varied geographies such as Pune, Mumbai, Raipur apart from head
office in Nagpur

Desired State:

 Build a sustainable competitive advantage and successfully run the business for a long
time

Alternatives 

(1)   Expanding to newer metro cities and cater to the uniforms demand there

(2)   Venture into the apparel business and establish their brand by owning and operating
retail outlets

(3)  Venturing into the apparel business but using the e-commerce or partnering with large
retail chains

(4)  Setting up franchises of Sandhu Uniforms

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 Note: The considered options are mutually exclusive based on the assumption that Mr.
Aditya Sandhu has sufficient funds to invest in either of the options and not all.

Evaluation Criteria

(1) Brand Growth

(2) Financial Feasibility
(3) Operational Feasibility

Evaluation of Alternatives

(1) Expanding to newer metro cities and cater to the uniforms demand there

a) Brand Growth – Low

This option fares low on brand growth as this will further restrict Sandhu Uniforms to stay in
the uniforms business. Although there is an opportunity to tap into the growing school
uniforms segment, this will only lead to increased business, but not the establishment of a
brand

b) Financial Feasibility – High

Financial Feasibility is high for this alternative. This is because although some costs will be
associated in the expansion of geographies, but Sandhu Uniforms has the capacity to scale up
production.

c) Operational Feasibility –High

Sandhu Uniforms already has been operational in the manufacturing of uniforms. This option
does not pose any change to the existing processes. Hence, the ease of implementation is
high.

(2) Venture into the apparel business and establish their brand by owning and operating
retail outlets

a) Brand Growth – High

This option is ideal for brand growth. Setting up and owning their retail stores across the
country will give them greater visibility among customers.

b) Financial Feasibility – Low

This alternative requires considerable capital expenditure. Considering that Sandhu Uniforms
has only recently been able to turn cashflow positive, this option does not look feasible at this
point in time.

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 c) Operational Feasibility – Moderate to Low
This option has moderate to low operational feasibility. This is because although the
manpower can be trained to take upon the new production of apparels instead of uniforms, it
is very difficult to forecast demand and manage production accordingly.

(3) Venturing into the apparel business but using the e-commerce or partnering with large
retail chains

a) Brand Growth – High

Piggybacking on the existing channels of e-commerce and other offline retail chains looks
attractive as they have scope to establish and grow their brand at their own pace.

b) Financial Feasibility – Moderate to High

Financial Feasibility is high for this alternative. This is because although some costs will be
associated in the administrative and operational changes of this overhaul, considerable capital
expenditure is not required. Partnering with existing retailers online and offline shall not
require much setup costs.

c) Operational Feasibility – Moderate

Although this will require a change in the manufacturing processes and certain setups, this
change can be accommodated in light of the diversification this brings to the business.

(4) Setting up franchises of Sandhu Uniforms

a) Brand Growth – Moderate to Low

Brand creation and growth is limited in this alternative. This is because although Mr Sandhu
will be able to build visibility among the customers through this option, he will not have
control over the quality of experience the customers will have in the stores. Hence, he risks
denting his nascent brand image.

b) Financial Feasibility – Moderate

Getting franchises on-board to operate in different parts of the country will be an uphill task
for Mr. Sandhu considering that the franchisees have no incentive to operate for a nascent
brand. Hence, he will have to make considerable investments in advertising and marketing to
build his brand and establish credibility. However, this option carries moderate financial
feasibility as there are low upfront capital expenditures involved.

c) Operational Feasibility – High

Outsourcing the operations of the store locations to franchises will considerably reduce the
administrative burden on Mr. Sandhu. Also, the production facility holds the capability to
service these locations using apparel. Hence, the operational feasibility of this alternative is
high.

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Recommendation

According to my analysis, Mr. Aditya Sandhu should consider venturing into the apparel
business but using the e-commerce or partnering with large retail chains. This will help him
achieve the desired state and grow his business sustainably.

Action Plan

Keeping in mind the desired state of the business, I recommend the following steps:

 Modify the existing infrastructure to accommodate the newer demands of apparel

 Make a shift in the company image to transition form a uniforms manufacturer to an

apparel manufacturer. Rename the company to Sandhu Apparel Pvt. Ltd.

 Train and transform his workforce to achieve operational capabilities in producing

uniforms

 Enlist Sandhu Apparel Pvt. Ltd. on all the major e-commerce providers and invest in
marketing to increase sales through this channel

Contingency Plan

In the event of a failed implementation of the recommendation, Mr. Aditya Sandhu should
consider expanding their existing footprint in the uniforms business by partnering up with the
industries in and outside major metropolitan areas while continuing to make face masks and
other relevant apparel. This shall help them stay afloat until the pandemic recedes. In the long
term, Sandhu Apparel Pvt. Ltd. can rework on the recommendations provided basis the
situations.

No. of words: 1036