ENTREPRENEURSHIP DEVELOPMENT CIA 3

ON
THE GREENWEAR COMPANY (Entrepreneurship development CIA)

Submitted in partial fulfilment of the requirements for the award of the

Degree of Bachelor of Business Administration of Christ University

By
YATHARTH ASOPA (REG NO. 2023389)

Under the guidance of

Prof. Malmarugan

Devanathan

School of Business and Management

CHRIST [DEEMED TO BE UNIVERSITY]

BENGALURU

2022-23
 TABLE OF CONTENTS

PAGE
S.NO. PARTICULARS
NO.

1. INTRODUCTION 5-12
1.1 Introduction to small scale industry
1.2 Industry profile
1.3 Entrepreneurs profile
1.4 Approximate investment

2. EXECUTIVE SUMMARY 14-16

4. MARKET SURVEY 18-21

4.1 Feasibility of the project
4.2 SWOT analysis
4.3 Competitors

5. MARKETING 23-27
5.1 Target Market
5.2 7 P‟s Analysis
5.3 Advertisement copy
5.4 Michael Porter’s 5 Force Analysis
5.5 Product line
5.6 Unique selling proposition
5.7 Positioning
6. HUMAN RESOURCE PLAN 29-35
6.1 Organization chart
6.2 Number of employees in each department – total headcount
6.3 Training Procedure & implementation
6.4 Management structure
6.5 Qualification of posts
6.6 Salary, break up and fringe benefits
6.7 Working hours and conditions
6.8 Recruitment sources

7. PRODUCTION AND OPERATIONS 37-41

7.1 Floor Plan
7.2 Machinery used
7.3 Quality policy
7.4 Maintenance Policy
7.5 Location Analysis

8. FINANCIAL PLAN 43-49

8.1 Initial investment
8.2 Sources of funds
8.3 Depreciation
8.4 Profit And Loss Statement [In Lakhs] And Balance Sheet
8.5 Break Even analysis
8.6 Cash flow statement
8.7 Payback period

11. REFRENCES 50
 CHAPTER 1

INTRODUCTION
1. INTRODUCTION

1.1 Introduction to the Sector

Fashion industry, multibillion-dollar global enterprise devoted to the business of making and
selling clothes. Some observers distinguish between the fashion industry (which makes “high
fashion”) and the apparel industry (which makes ordinary clothes or “mass fashion”), but by the
1970s the boundaries between them had blurred. Fashion is best defined simply as the style or
styles of clothing and accessories worn at any given time by groups of people. There may appear
to be differences between the expensive designer fashions shown on the runways of Paris or New
York and the mass-produced sportswear and street styles sold in malls and markets around the
world. However, the fashion industry encompasses the design, manufacturing, distribution,
marketing, retailing, advertising, and promotion of all types of apparel (men’s, women’s, and
children’s) from the most rarefied and expensive haute couture (literally, “high sewing”) and
designer fashions to ordinary everyday clothing—from couture ball gowns to casual sweatpants.
Sometimes the broader term “fashion industries'' is used to refer to myriad industries and services
that employ millions of people internationally.

Indian Fashion industry:

The industry also employs over 45 million people directly to 60 million people indirectly. The
Indian Textile Industry contributes approximately 5 per cent to India's gross domestic product
(GDP), and 14 per cent to the overall Index of Industrial Production (IIP).

Market Size:

The Indian fashion industry is expected to reach US$ 400 million in a couple of years with
vigorous growth of over 10 per cent year-on-year. While this is tiny compared to the global
industry, it is not too bad for an industry in this stage of infancy.

The reason India's fashion industry will have a bright future is that it has a large young
population. This, combined with increasing disposable incomes, has led to an increase in
consumerism. So,
those who can afford are looking for high quality and originality. They love brand names. Hence,
we can say that the future of the fashion industry in India looks promising.

Potential:

This industry offers an abundance of opportunities for artistic, hard-working and enthusiastic
people. The scenario for fashion design graduates looks good, thanks to the enormous and still
increasing demand for stylish clothes and the quantity of exports.

After successful accomplishment of the graduate course, one can be self-employed. On the other
hand, several garment stores chains, export houses, leather companies, textile mills, boutiques,
fashion show organizers and jewelry houses recruit professionals fascinated with a career in
fashion designing.

Textile and clothing industry:

Textile and clothing sector is one of the oldest industries in India. According to the Indian Brand
Equity Foundation (IBEF), “The close linkage of the textile industry to agriculture (for raw
materials such as cotton) and the ancient culture and traditions of the country in terms of textiles
make the Indian textiles sector unique in comparison to the industries of other countries”.

The Indian textile industry is estimated around 108 billion dollar and expected to reach 223
billion dollars by 2021. The industry also employs over 45 million people directly to 60 million
people indirectly. The Indian Textile Industry contributes approximately 5 per cent to India’s
gross domestic product (GDP), and 14 per cent to the overall Index of Industrial Production
(IIP). The textile industry is also one of the largest contributors to India’s export with
approximately 13.5 percent of total export amounting 42.24 billion dollars.

Fashion Companies:

Brands like Benetton, Zodiac, Z3, Zara, Vero Moda, Calvin Klein, Diesel and Tommy Hilfiger
have experienced good sales growth in the country, while names like Zara, Armani, Forever21 or
Uniqlo appeal to the Indian audiences, attracting higher per square foot sales compared to the
departmental or hypermarket stores. On the other hand, Indian companies like the Arvind group,
Madura Fashion and Lifestyle, Raymond Apparel, Trent Retail, Reliance Retail and Future
Group have launched their own fashion labels.

Consumer expenditure:

Annual consumer expenditure on footwear and clothing: 68 billion

dollars Total exports of textile, apparel and footwear: 42.24 billion

dollars.

Exports of clothing and textiles: 38.7 billion

dollars. Why to invest in fashion sector-

Presence of Large Integrated Players:

Indian textile industry is marked by the presence of large-scale manufacturers across the value
chain i.e., from yarn to finished goods. These diversified textile conglomerates have huge
manufacturing capacities, compliant set-ups for high quality goods manufacturing and are well-
recognized by world-wide buyers. Some of the largest textile and apparel companies in

Preferential Access in Specific Markets:

India currently enjoys preferential market access to 43 countries under 15 trade agreements.
Some of the key agreements are as follows-

● South Asia Free Trade Area (SAFTA): India, Pakistan, Nepal, Sri Lanka, Bangladesh,
Bhutan, Afghanistan and the Maldives.
● Asia-Pacific Trade Agreement (APTA): Bangladesh, China, India, Republic of Korea,
Lao People's Democratic Republic, Sri Lanka and Mongolia.
● Comprehensive Economic Partnership Agreement (CEPA) with Japan and South Korea
● Comprehensive Economic Cooperation Agreement (CECA) with ASEAN Countries
(Singapore, Vietnam, Malaysia, Thailand, etc.)

The EU has granted India with GSP status for garments under which Indian garment exports to
the EU attract 20% less duty than the MFN rates in India.
Social, Political & Economic Stability:

India is a land of cultural diversity with amalgamation of many cultures and religions. There are
around 22 official languages spoken in the country. It is the biggest democracy in the world with
a large and growing middle class. India also has the largest Gen Y population in the world with a
median age of 27 years. Almost half of the Indian population is under 25 years which will soon
join the workforce and add to increasing purchasing power. There has been considerable progress
and improvement in terms of education and expansion of literacy in India that has become one of
the major contributors to its economic development. India has a stable and a supportive
government which has been instrumental in developing business friendly policies. The steady
government facilitates a secured environment for the global companies to establish their base in
India that is in contrast to other emerging textile bases like Bangladesh, Pakistan, and Ethiopia
etc. which are marred by political and social instability. Indian government has made focused
efforts in improving economic systems to attract foreign investors, enhance international trade,
and increase transparency. As a result, foreign direct investment (FDI) inflows into India in the
2019 calendar year were recorded to be US $48 Bn, according to the Department of Industrial
Policy & Promotion, Government of India. There has been a cumulative infusion of US$ 659 Bn.
in India from the last 19 years and India has emerged as one of the most attractive destinations
for investment and business in recent years. With the increasing support from Indian government
and focused efforts by large integrated and private players, the country is expected to lure
significant global businesses to India. It is envisaged that Indian market will continue its upward
trajectory in years to come leveraging its inherent strengths and macro-economic drivers.

Challenges in fashion industry-

Sustainability:

The fashion industry is one of the most polluting industries on the planet – and that’s no more a
secret. From manufacturers to consumers, everyone knows how fashion is killing our planet.
Brands are working to incorporate more sustainable practices into their businesses. And
consumers are also choosing sustainable fashion over any other. But that’s not enough to combat
the massive amount of waste and pollution that fashion creates. Although, millennials and
generation after are
demanding imminent change to attain sustainability. According to a Nielsen Study, 73% of
millennials are willing to pay more for sustainable brands. Well, that’s good news for sustainable
brands and the planet. A movement towards sustainability has resulted in a noticeable rise in new
and emerging fashion brands that are fully sustainable. These brands are committed to reduce
clothing consumption by shifting their value towards – second-hand, circular fashion, and
recycled fashion.

Digitalization:

Fashion industry has seen downfalls in recent years due to poor technological strategy and
execution. Slowly and gradually, the industry is embracing technology to meet market needs and
demands. The industry players launch new concepts to change the shopping pattern of shoppers.
But the industry fails to take off. Beyond the consumer shopping behaviors and choices, there are
deeper issues industry is facing, even at the transactional level. To bridge the gap between
fashion and technology, brands and retailers need a digital mindset. The apparel and fashion
industry should focus on real innovation and long-lasting technology. The industry needs to
analyze the pain points and should create partnerships to implement innovative solutions to solve
their unique issues, always keeping KPIs in mind.

Consumer Shifts:

The fashion industry is continuously changing, which makes it difficult for market players to stay
updated with current trends, consumers, and market needs. Players who can adapt the change
with time are the only ones who are going to be in the game for long. In today’s shopping era,
millennials and Gen Z are immersed in the digital world to access more information than ever
before. They just don’t want to pick anything, they want to pick the right goods, from the right
place and at a super-right price. Consumers want to know about the brands, fabrics, and styles
they’re interested in. They are demanding quality products at a fast pace. For apparel brands and
retailers, it’s quite difficult to match their products with changing consumer behavior, trends, and
choices.
1.2 Introduction to the Industry

The precise definition of small-scale, medium-scale and large-scale industry varies depending on
a number of factors.

There are two key ways in which the size of a business can be defined:

1. The number of employees working in the industry.

2. The amount of revenue that the industry gets from its investments.

The definition of an industry being a large, medium or small-scale industry is also dependent on
the specific industry and its products. Some industries are a lot more labor intensive, and the
definition of "small" may include a large number of employees. Other industries, especially those
that rely on technology or specific skills of an individual, may reach only a low employee
number before being included into the next category of industry size.

Our project fits into a medium scale industry.

Medium-scale businesses are often a result of slow and steady growths of businesses. These
businesses come into existence because of the small-scale industries flourishing and dealing with
a greater market. As a company starts earning more revenue, it sets aside the capital needed for
buildings, equipment and more employees. This eventually bridges the gap between small
businesses and large corporations.

Micro, Small and Medium Enterprises (MSME) contribute nearly 8 percent of the country’s
GDP, 45 percent of the manufacturing output and 40 percent of the exports. They provide the
largest share of employment after agriculture. They are the nurseries for entrepreneurship and
innovation. They are widely dispersed across the country and produce a diverse range of
products and services to meet the needs of the local markets, the global market and the national
and international value chains. The Ministry of MSME encourages and honors innovation and
enterprise which works in close coordination with the State Governments, Industry Associations,
Banks and other stakeholders through their numerous field offices and technical institutions to
help the ‘engines of growth’ throughout the country.

7
Advantages of a Medium Scale Industry:

1. Medium-sized companies have the advantage of mobility over larger companies. For example,
if the marketplace abruptly changes its demand for a particular product, a medium- sized
company may quickly lower production output or modify products to fit the needs of customers.
Larger companies must deal with bureaucracy and shareholders before making changes.

2. The other advantage of the medium scale businesses is its employment potential at low capital
cost. The labor intensity of this sector is much higher than that of the large enterprises.

Issues with Medium Scale Industries:

1. Poor infrastructural facilities tend to be a big factor affecting medium scale industry today.
When necessary, facilities are not put in place, and even when it is in place, lack of maintenance
of such facilities leads to trouble for this sector. This increases the cost of operation of the
industry.

For example, no access to water, poor roads and no constant supply of electricity are some of the
problems.

2. No business can function perfectly without adequate capital. Lack of access to credit facilities
from banks as a result of high interest rate, no collateral to stand in place for loans creates a
major problem for the medium scale businesses. Also, no grant is provided by the government to
assist the industry. This has affected their operation of performance.

3. Due to economies of scale, giant firms have competitive advantages over small and medium
scale business.

4. Small and medium scale industries make use of outdated technology. Poor financial status of
this industry deprived them to upgrade to modern technology.

Other problems faced are wrong choice of business, lack of experience staff and lack of
managerial know how. They affect the effectiveness and efficiency in running the business
1.3 Approximate investment

We have decided that our approximate investment will be rupees 3 Crores. This would be
extracted from various sources of funds.
CHAPTER 2

EXECUTIVE

SUMMARY
 2. Executive summary

THE PROBLEM:

India is currently facing a huge problem recycling a large portion of its huge plastic waste.
According to Indian environmental details 8.5% of plastic material generated in India, Municipal
Solid Waste (MSW) stream was recycled in 2018. The problem with this is a lot of plastic waste
ends up in landfills or the oceans causing devastating effects such as microplastic pollution and
death of marine wildlife. There is a huge need for something to be done about this problem.

OUR SOLUTION:

We plan to solve this problem in a sustainable and profitable way. It not only cleans-up plastic
trash but also generate revenue from it. We collect sorted and unsorted plastic trash and process
it to create high-quality synthetic fibers and textile that can be used to create comfortable and
fashionable clothing. We do B2B production of clothes to popular fashion brands that wish to
create a sustainable line of clothing by locally manufacturing for them clothes according to their
designs and standards.

Waste plastic materials to be used as an appraisal making source. We have been seeing piles of
waste plastic materials on the shore and also in the ocean, using these non-biodegradable
substances as a source for designing clothes and flip-flops can be a best idea. This piling up —of
plastic goods, Styrofoam containers, and sometimes, human waste —has been happening here
for over 27 years and there seems to be no end to it! The reason behind it is that without
sufficient waste management or a sophisticated recycling system in the country, the populace has
ultimately decided to dump trash seemingly everywhere and all accumulated plastic wastes go
right into the oceans. Hence to combat this situation my company has launched the first recycled
material clothes and flip- flops. All the beaches have several kinds of non-biodegradable
Styrofoam that has accumulated in beaches over a long time. Hence using the latest technology,
we are planning to use Styrofoam and remold it into footwear that can be comfortable and very
environmentally friendly.
We recycle the waste materials into thin fibers, so that they can be used to make clothing
garments and footwear. Patagonia, seventh generation and many other top sustainable companies
are our competition in the market. Fashion is a very influencing sector so using the waste plastic
as the fashion icons for creating clothes would bring awareness among the public and will have
greater scope. The advantage of our project is that it isn’t that harmful to the environment as it is
in other cases. We here are planning to remove harmful synthetic micro fibers while recycling
which can be a great threat to marine life and give lives to plastic before it ends up by recycling
it into something else. There are many islands that have large supplies of coke and water bottle
supplies but no recycle management plans. So, if we collect that plastic and offer some jobs it
could be a winning one side battle.

First and foremost, step is to get grants for fundraising. Cash donations, Membership Dues,
Contributions are our main source for creating our products. We will be using these funds in
employing the staff to work, in designing and recycling waste plastic and also for campaigning
about our company, its initiative. Our future plans are to expand our product and market it in
different locations. Our major concern is to make people use this new style and reduce plastic
pollution on a global scale.

Vision: To ensure the safety and upkeep of the environment, to sustain and develop our
surroundings to ensure a better tomorrow.

Aim: To impact the minds of people and ensure our company becomes a common name, when it
comes to sustainable, low-price and affordable clothes

Our products-

Flip-flops and clothes:

We shall be creating a variety of flip-flops for the various kind of customers within the

spectrum of our shoe industry. Despite immense competition from the other brands in the

industry, us

a unique selling point would be outlining the idea of completely recycled plastics. Since all other
companies use plastics and non-biodegradable Styrofoam to make their shoes and clothing, at a
psychological level customers would be inclined to our product since we are at a higher ethical
moral ground compared to the competitors.

Due to high durability of plastics, these shoes and clothes shall have a really good durability and
comfort for the customer. We plan to target customers ranging from kids to adults and have also
planned to create shoe wardrobes according to professions. For the medical personnel, their
shoes have to be regularly sanitized, Styrofoam is inefficient. We plan on providing hospitals
with a certain kind of shoe and clothing material that appears the same as their currently used
attire but they shall be recycled. This can act as a very good green initiative improving the image
of hospitals and health sector in general as they shall be able to proudly have contributed in
aiding planet earth
 CHAPTER 4

MARKET SURVEY
4.1 Feasibility of the project

Technical Feasibility:

Technical feasibility refers to the adequacy of the proposed plant and equipment to produce the
product as per the required norms. This aspect requires a careful examination and a thorough
assessment of the various inputs of the project like land, machineries, trained labor, fuel, power
etc. It also requires the analysis of the know-how, necessary to run the project and whether we,
as entrepreneurs possesses that knowledge

1. Location of the project: We will be establishing Mumbai, Maharashtra.

2. Size of the project: We will be requiring an approximate area of 15000 sq. ft. to
accommodate our manufacturing, packaging and warehousing unit. This will include the
area where the products are being manufactured and stored as well as transported from.
3. Availability of inputs: Lines for water, power and electricity will be taken and the
transport will be used to collect and bring plastic wastes from water bodies that have to
be recycled into fashionable products.
4. Availability of raw materials and skilled labor: We will purchase some raw materials
directly from our supplier and the key raw material i.e., plastic waste from water will be
collected with the help of labor and the support of the government of the state.

Economic feasibility:

It is very essential to see if the project is economically viable. The economic viability depends
upon its profitability. A project without adequate profits cannot be commercially viable. Hence
the economic viability can be assessed through projections of profitability for a range from 3 to
10 years. The profitability of a project should be established on a long-term basis. Thus, the
economic feasibility analysis includes the analysis of the requirements of raw materials,
anticipated sales, anticipated expenses and the profitable profits.

Managerial feasibility:

The appraisal of the management is indeed considered as the touchstone of term credit analysis.
It is so because the success or failure of any business depends upon the direction and efficiency
of
the management. In the absence of managerial competence, the projects which are otherwise
feasible may fail. On the other hand, a poor project may turn out to be a successful one with
efficient managerial ability.

We will take into account the following:

1. Educational background of promoters

2. Previous expertise in the field and managerial competence
3. Possession of adequate know-how of the

business Market feasibility:

Market survey report

A research team was commissioned to validate the following assumptions:

● The market gap for brands that promote sustainable fashion exists. There are very few
brands that promote this; hence, the majority of potential consumers haven’t used such
products due to lack of awareness.
● The existing scenario, statistics show the need for an upscale target market who wants to
be fashionable yet cares for the environment and, if given a choice, would like to opt for
sustainable goods.

4.2 SWOT

STRENGTHS:

● Unique product
● Small management team for faster decision making
● Low technical and production complexity
● Easy to transport and store
● Reasonable profit

margins WEAKNESSES:

● Lack of role clarity

 ● Inexperienced management staff
● Less amount of funds in the initial stage
● Limited factory

space OPPORTUNITIES:

● Mass market
● Support of the government
● No existing substitute in India
● Expansion into other apparels and household items

THREATS:

● Huge competitor abroad

● Copying of concept and many companies entering the market
● Non-acceptance of the project as a whole

4.3 Competitors

DIRECT COMPETITION

Adidas:

In 2019, Adidas expects to make 11 million pairs of shoes with recycled ocean plastic. That's
more than double what it made in 2018. Adidas says the partnership has prevented 2,810 tons of
plastic from reaching the oceans.

How will we overtake them?

We agree, we have a major competitor. But these shoes are not very popular in our country as the
made of recycled plastic is very popular in India right now. Therefore, first things first, we can
start and expand in India itself. The other major factor is the PRICE. The price charged by
comparatively is a lot. This is because of the high operational costs. This will not be there in a
normal t-shirt. When expansion is done in other countries after some years, we will have a price
advantage, which is a huge determinant in consumer choice of buying goods.
CHAPTER 5

MARKETING
5.1 Target market

Population in the entire 15-65 age spectrum

Family income of Rs 50000 or more per month

5.2 The 7 P’s

PRODUCT:

The product is at the core of the business. In this case the product is good quality comfortable
clothing made from recycled plastic that customers would actually want to wear. The Greenwear
Company must optimize its plastic collection and sorting processes to ensure clean and good
fabric for wear. This product is appropriate for this day and age as consumers become more eco-
aware demand for trendy yet environmentally-friendly clothing will only increase.

PLACE:

The product will be placed by the fashion brands that contract The Greenwear Company in their
stores. This means consumers will have easy access to the garments from brands and places they
already know and trust. We will also have an online store for people who want to purchase in
bulk directly from us.

PRICE:

The Greenwear Company’s pricing for its clients i.e., the fashion chains; should be as low as
possible by creating economies of scale. Since fast-fashion consumers are used to paying low
prices for nice-looking trendy clothes, they might be hesitant to purchase more expensive ones.
However, it is also seen that eco-conscious buyers are often willing to pay slightly higher prices
for products that do good for the environment. Therefore, The Greenwear Company must find a
good balance between the two.

PROMOTION:

Although The Greenwear Company i.e., will not be selling directly to the consumer, it will have
to do a fair share of work along with fashion brands to create awareness about The Greenwear
Company line of products. They will need to make consumers aware to look out for The
Greenwear Company-made clothing in stores and make them conscious about the benefits of
recycled plastic clothing.

PACKAGING:

Since The Greenwear Company is actively reducing plastic waste, it must ensure that its
packaging doesn’t add to the problem. Therefore, Fashion must package the products in reusable
fabric or paper bags. However, the packaging should also be attractive and speak against plastic
waste.

PROCESS:

The process for the Fashion brand should be transparent and open to the brands partnering with
The Greenwear Company and the public to build consumer trust and awareness about how
plastic trash turns into fashion.

PHYSICAL EVIDENCE:

This means providing consumers with real tangible products that can be seen and experienced by
them. Therefore, The Greenwear Company should make a sample fashion collection and exhibit
to fashion brands in order to sign them up on board.

5.3 Advertisement copy

Our advertisements will focus on the following aspect:

1. Building a brand identity and promoting brand awareness

2. Creating an awareness about sustainable fashion and the need to promote it in everyone’s lives.

3. Tapping the trend in the market by ensuring that fashion is sustainable and stylish at the same
time.

Our business undertaking puts huge emphasis on marketing of the products; hence, we will
install billboards, banners and posters at hotspot locations in order to throw light on the
importance of fashion sustainability and how our brand is making that easier for the public. For
the same, we will
also have various influencers and celebrity icons to promote our message and thus create an
impact. The hashtag of our campaign will be #wear clean and our tagline is “A step towards
Sustainability”. Our billboards and posters are demonstrated in the annexure.

5.4 Michael porter's 5 force analysis

Competitive Rivalry:

The fashion industry is an interesting one when it comes to analyzing through the intensity of
competitive rivalry. There are large numbers of manufacturers who sell related products, but
there’s also the concept of brands, which allow some companies to sell apparel for ridiculous
rates. Nowadays there is little innovation in this space, so the market is quickly becoming
saturated with very similar products. But there are very rare products involving appraisal made of
recycled material especially plastic.

Supply power:

In India, we have various players in the fashion industry. There has been a rise in production and
supply of appraisal products in the last few decades. In India, the excess of available suppliers
gives an initial sign of a weak bargaining power for the supplies benefit which the Indian
Suppliers have capitalized on is, Due to their capacity to integrate ahead in the value-added
chain, they have got an enhanced bargaining position towards textile manufacturing. Our supply
of raw materials will primarily be plastic waste from water bodies and other such places. We will
need to have a good and sound relationship with our suppliers to ensure a continuous availability
or resources.

New market entrant:

Indian fashion Industry is extremely dependent on personal associates and experience. The new
performers would have to get some kind of customer base along with the new establishment.
Without any established customer portfolio, it is difficult to attract. As the new entrant has less
experience in fashion and appraisal manufacturing and they don’t have relationships with
customers so they might experience disadvantages comparative to the recognized competitors.
Governmental policies do influence the industry environment to some level. An example of this
is subsidies, which are obtainable to companies’ launching production in certain regions. It is
very
easy for new competitors to enter the market as there are low establishment and sunk costs.
Furthermore, existing brands can start offering products similar to ours if they see that they are
being demanded by customers.

Buyer Power:

There will be a large number of buyers, and hence the price set will be competitive and not buyer
decided. The strength of each buyer will also be low.

Product and development technology:

We are highly reliant on this, our key itself is the development of the product which id
development of the certain aspects of the fashion industry. We are bringing in a new concept of
making clothing and footwear with recycled plastic waste which we believe is a new dimension
to the appraisal and fashion industry.

5.5 Product line

Product and service

description Flip-flops:

We shall be creating a variety of flip-flops for the various kinds of customers within the
spectrum of our shoe industry. Despite immense competition from the other brands in the
industry, our unique selling point would be outlining the idea of completely recycled plastics.
Since all other companies use plastics and non-biodegradable Styrofoam to make their shoes, at a
psychological level customers would be inclined to our product since we are at a higher ethical
moral ground compared to the competitors.

Clothing:

Green clothing from recycled plastic bottles. There was a time when used plastic bottles were a
threat to the environment. Today, it is being used positively to manufacture garments. Fashion is
a very influencing sector so using the waste plastic as the fashion icons for creating clothes
would bring awareness among the public and will have greater scope. The advantage of our
project is that it isn’t that harmful to the environment as it is in other cases. We here are
planning to remove
harmful synthetic micro fibers while recycling which can be a great threat to marine life and give
lives to plastic before it ends up by recycling it into something else.

5.6 Unique selling proposition

Key concept:

Our USP is our base concept itself where we are making fashion appraisal from recycled plastic
waste unlike how these products are usually made.

Cause:

Our focus is also on reducing the waste generated in the fashion industry. We believe that our
cause is much greater than everything else which is why this also falls in our USP category

5.7 Positioning

We wish to position our brand and our products in a place where people resort this as a go to
brand. We wish for people to shift to our products in order to put emphasis on recycled products
as we are trying to make people aware of sustainable fashion.
 CHAPTER 6

HUMAN RESOURCE

PLAN
6.1 Organizational chart

6.2 Number of employees in each department total headcount

Marketing 5

Finances 3

Operations 8
6.3 Training Procedure and implementation

1. Identifying Training Needs:

Training needs a difference between standard performance and actual performance. Hence, it
tries to bridge the gap between standard performance and actual performance. The gap clearly
underlines the need for training of employees. Hence, under this phase, the gap is identified in
order to assess the training needs.

2. Establish Specific Objectives:

After the identification of training needs, the most crucial task is to determine the objectives of
training. Hence, the primary purpose of training should focus to bridge the gap between standard
performance and actual performance. This can be done through setting training objectives. Thus,
the basic objective of training is to bring proper match between man and the job.

3.Select Appropriate Methods:

Training methods are desired means of attaining training objectives. After the determination of
training needs and specification of objectives, an appropriate training method is to be identified
and selected to achieve the stated objectives. There are a number of training methods available
but their suitability is judged as per the need of organizational training needs.

4. Implement Programs:

After the selection of an appropriate method, the actual functioning takes place. Under this step,
the prepared plans and programs are implemented to get the desired output. Under it, employees
are trained to develop for better performance of organizational activities.

5. Evaluate Program:

It consists of an evaluation of various aspects of training in order to know whether the training
program was effective. In other words, it refers to the training utility in terms of effect of training
on employees’ performance.
6. Feedback:

Finally, a feedback mechanism is created in order to identify the weak areas in the training
program and improve the same in future. For this purpose, information relating to class room,
food, lodging etc., are obtained from participants. The obtained information, then, evaluated, and
analyzed in order to mark weak areas of training programs and for future improvements.

6.4 Training programs

Orientations:

Orientation preparing is vital to the achievement of newcomers. It doesn't make any difference
whether the preparation is actualized through a handbook, a one-on-one meeting, or a talk. What
makes a difference is giving new workers data with respect to the association's experience,
systems, mission, vision, and goals. Such preparing offers new representatives a chance to
acquaint themselves with organization arrangements, rules, and guidelines.

Lectures:

Lectures are especially effective when the point is to give similar data to an enormous gathering
on the double. In doing as such, there is no requirement for singular preparing and subsequently,
investment funds on expenses. Nonetheless, addresses additionally represent a few drawbacks.
For one, they focus on single direction correspondence, which generally rules out input.
Likewise, the mentor may think that it’s difficult to evaluate the degree of comprehension of the
substance inside a major gathering.

Computer based Training (CBT):

With this methodology, PCs and PC based instructional exercises are the essential methods for
correspondence between the coach and workers. The projects are organized so that they give
instructional materials while likewise encouraging the learning cycle. The central advantage of
PC based preparation (CBT) is that every representative is given the opportunity to learn at their
own speed in their most advantageous time. It likewise assists with lessening the all-out expense
that
an association brings about in preparing its workers. Expenses are limited by diminishing the
preparation term, taking out the requirement for teachers, and 10 decreasing travels.

Technical Training:

Technical training is done in order to help use technologically advanced products that will be
supplied to them. The techniques of doing these activities in a quick manner would be of great
use.

6.5 Management structure

The majority of the work like strategizing and planning will be done at the top level itself. The
management team, i.e., the 2 founding partners, keeping in mind the goals and objectives 37 of
the organization will form policies and procedures accordingly to provide a framework to the
organization and its employees. The work will be delegated to the middle level according to the
duties they are expected to perform. The marketing department will have a marketing manager,
with 4 sales executives under him. He will strategize the marketing of the product, and the sales
will carry on the promotions and actual sales. The finance manager will be in the finance
department, who will do the core financial tasks, like budgeting, capitalization and so on. He will
have 2 accountants under him to maintain the daily accounts of the business. The operations
department will have a production supervisor. The production supervisor has 7 factory workers
under him, which includes the engineer also. The departmental goals will be aligned with the
organizational goals to induce the vision among the departments.

6.6 Salary, break down and fringe benefits

SALARY CRITERIA

● Nature of Job
● Experience of Employee
● Certification of Employee
● Skill or Specialty of the

Employee SALARY BREAKDOWN

FRINGE BENEFITS

● Pick up and drop service

● Medical Insurance to every employee (limited)
● Free meal for everyone working
● Company car for the Managers
● Once a month free family visit and meal in the restaurant
● Disbursement of accumulated tips amongst all employees.
● 50% profit sharing amongst the partners, rest 50% amongst the rest of the employees
according to the pre-decided ratio.

46
6.7 Working hours and conditions

The working hours would be from 12 PM to 3 PM in the afternoon and 7 PM to 11 PM in the

evenings from Monday to Thursday and 12 PM to 3 PM in the afternoon and 7 PM to 12 PM in
the evenings on Friday, Saturday and Sunday so as to comply with the laws regarding closing
time.

6.8 Recruitment Sources

Recruitment process:

These are the following external sources of recruitment we will be using:

ADVERTISEMENT IN NEWSPAPERS: This is most effective way to get more and more
applicants. We will be sending our requisitions to certain specialized agencies which advertise
positions in leading newspapers without divulging the name of the client company. The
applications received from the candidates by the agencies are duplicated and mailed to the
clients.

CONTRACTUAL LABOUR: The labor will be hired by a contractor on hourly basis for the
basic manufacturing process. The labor will also be hired for packaging of the product on per
piece basis.

DIRECT EMPLOYMENT: We will be recruiting by placing a notice on the notice board of the
enterprise, specifying the details of the jobs available. Interviews and feedback will be conducted
for the posts of top level and middle level managers and they will be recruited on the discretion
of the management team.
 CHAPTER 7

PRODUCTION AND

OPERATIONS
7.1 Floor plan
7.2 Machinery used

Following is the list of machinery which would be required for the production procedure-
7.3 Quality policy

100- wash Test:

● There are no definite tests for the t-shirt of this genus. Therefore, our quality tests
are prettyniche.
● The 100-wash quality test is a remarkable test stimulated to check the strength of the
recycled plastic material.
● Our unit would have an industrial washing machine installed for this particular test.
● The aim is to wash the T-shirt 100 times and check the strength of the material.
● A couple of samples from one day’s production lot would be taken and washed 100 times
and then the strength would be measured.
● The test moreover would be recorded and monitored. If the tests fail then the lot for that
particular day would be recycled and would be made to go through the Chemical Infusing
process again.

The fabric test:

● The Fabric test is a very important and comprehensive test to test whether the chemical
has been infused properly or not.
● In this process the quality staff keeps the fabric in a glass case filled with various genus
of insects from 60 min.
● The aim is to achieve a result where all the insects show resistance or repel the fabric.

7.4 Maintenance Policy

● The maintenance policy of the firm is simple. It works hand in hand with the inventory
and the store of the unit.
 ● For maintenance we are going to purchase a software solution worth 25,000.
● The components of the software would be the following:
- List Of Spares
- Bin Card
- GNR Slip
● The first step when spare enters the organization would be the creation of the Bin Card.
The Bin card would have all the information regarding how much of the spare is being
ordered and how much stock of the spare is available.
● The software will have a list of machinery; the spares would be mated to the specific
machinery they are used in.
● Now whenever a breakdown occurs, a GNR slip would be produced (attached in annexure)
. Specifying the name of the machine broken down and the spare needed to be replaced.
● More over the GNR slip would have breakdown time recordings so that we could analyse
the loss in production.
● The job of the maintenance department would be to issue the GNR slip then find the
Spare which needs to be replaced, give the slip to the store and procure the new spare.
● The software would automatically reduce its stock of the spares from the bin card.
● Also, the software would have the capability to have triggers which notifies when
the sparesof the machine are about to break down according to their life.
● Lastly Sunday would be the Maintenance Day kept for checking the working for all
themachines thoroughly.

7.5 Location analysis

For our business, we require an area of 15,000 sq. feet. The different locations which we have
looked at are:

1. Mumbai, Maharashtra - The rent for 15000 sq. feet of area in Kalamboli, Mumbai,
Maharashtra which is called the fashion capital of the nation would cost Rs. 3,20,000 per
month.
2. Noida, Uttar Pradesh - The rent for 15000 sq. feet of area in Noida, Uttar Pradesh would
cost Rs. 3,50,000 per month.
 3. Kolkata, West Bengal - The rent for 15000 sq. feet of area in Kolkata, West Bengal
would cost Rs. 2,40,000 per month.

Considering the fact that our company would produce products by recycling the plastic wastes in
water bodies, it was essential to find a perfect match between the budget and the easy availability
of raw materials. After analyzing the pluses and minuses of these locations we have decided
Mumbai, Maharashtra as the location for our factory. The reasons for selecting this are:

- Mumbai is a coastal area which means that the plastic waste can be easily procured from
the water bodies.
- According to the industry the core strength of Mumbai is fashion creativity and
understanding new ideas of the world and keeping themselves updated on the current
trends.
- The other advantages are 24 hours power, big wholesale markets like fabrics, accessories,
utilities in the range of 60-minute radius. Vast variety in articles from locally made to
imported ones and good transportation like trains, easy for air and sea cargo are some of
the points which make Mumbai attractive.
- Thus, we have decided to set up our factory in Mumbai, Maharashtra as it fits in the
criteria and meets all the requirements.
CHAPTER 8

FINANCIAL

PLAN
8.1 Initial investment

PARTICULARS AMOUNT (Rs.)

FIXED COSTS:

Machinery Required 18,50,000

Chemical 10,12,500

Rent 10,80,000

Logistics 3,50,000

Patents and Trademarks 5,00,000

Salaries 65,76,000

Electricity 3,00,000

VARIABLE COST:

Marketing Cost 4,50,000

 MoCF license 30,000

TOTAL 1,20,48,500

8.2 Sources of Funds

A textile-oriented company in India or elsewhere in the world needs a lot of working capital to
service its clients and the delay in payments of 3-6 months often hinder the growth prospects.
Keeping this in mind we have carefully chosen our source of capital as this will prove critical
in keeping the business running in the long run. Debt and equity are the two major sources of
financing. We’ve decided to tap largely into debt for this reason. Textile is a priority sector for
the Govt. of India and we thus hope to avail low-interest long-term loans for the company. We
have a budget of approximately Rs. 1.5 cr. And we have sources these from the following

PARTICULARS AMOUNT (Rs.)

Personal (Equity) 50,00,000

Bank Loan (Long 50,00,000

Term Borrowing)

Angel Investing 50,00,000

 TOTAL 1,50,00,000

8.3 Depreciation

Spinning Weaving Sewing

YEAR PARTICULARS machine machine Total
Machine

Rate of 20% 10% 20%

Depreciate
on

Year I Value of Assets 15,00,000 2,50,000 1,00,000 18,50,000

Amount of 300000 25000 20,000 3,45,000

Dep

Year II Value of Assets 12,00,000 2,25,000 80,000 15,05,000

Amount of 240000 22500 16000 2,78,500

Dep
 Year III Value of Assets 960000 202500 64000 12,26,500

Amount of 192000 20250 12800 225,050

Depreciate
on

8.4 PROFIT AND LOSS STATEMENT [in lakhs]

BALANCE SHEET

Balance sheet
8.5 BREAK-EVEN ANALYSIS

Years 1 to 3

Breakeven will be achieved in about 11 months

8.6 CASH FLOW STATEMENT

8.7 PAYBACK PERIOD

INITIAL INVESTMENT = Rs. 1.2 crores approx.

Revenues

PAYBACK PERIOD = INITIAL INVESTMENT / REVENUE

As we can see, the amount 1.4 crores lie before the finishing of the first year. Therefore, the
payback period will be less than a year.

PAYBACK PERIOD = 1.20 crores/ 1.71 crore = 0.7017 = 257 days

Thus, the payback period will be 257 days

References

https://www.britannica.com/art/fashion-industry

https://www.biologicaldiversity.org/campaigsocean_plastics/

https://guides.loc.gov/fashion-industry

Sustainable Solutions for Fashion Design: Adjusting the Fashion Design Process for a More

Sustainable Industry. (2020). Arts and Design Studies, 1. https://doi.org/10.7176/ads/81-03