BUSINESS PLAN FOR

KARIACHERI

HIMANSHU DM241031
HRIDAY DM241032
ISHAN DM241033
ISHITA DM241034
JAIDEEP DM241035
JAY JAIN DM241036
KAMALA MANICKAM DM241038
KAPIL KOHAD DM241039
KASHISH DM241040
KRITIKA DM241041
AYUSH DM241017
 Business Plan for Incense Sticks at Small Scale in Rural Area

Overview
This business plan outlines the creation of an incense stick company that will provide high-
quality, handmade incense sticks to customers. The target market is individuals who
appreciate incense’s sensory and spiritual benefits. The incense market in rural areas is
largely untapped and has significant potential for growth. The local market is driven by the
growing demand for natural and handmade products and traditional spiritual practices.

Capital Required
 Equipment: The cost of equipment for manufacturing incense sticks, such as mixing
bowls, rolling machines, and drying racks.

 Raw materials: The cost of ingredients and essential oils used to make the incense
sticks.

 Marketing and advertising: The cost of promoting the business, such as creating a
website, printing marketing materials, and advertising in local media.

 Operations Costs: The cost of renting a workspace, utilities, and other operational
expenses.

Investment Capital
1. Mudra Loan under PMMY

Launched in 2015, MUDRA Loan under Pradhan Mantri Mudra Yojana (PMMY) is a loan

scheme offered by banks for individuals, start-ups, business owners, and women
entrepreneurs across India. Under this scheme loan amount up to Rs. 10 lakh are offered to
women who want to start their own business or expand the existing one. The loan amount
is offered under three categories named Shishu, Kishor, and Tarun. Find below the basic
features of the loan scheme offered by banks and NBFCs under the Mudra Yojana:

Features:

 Concessional Interest Rates for Women Entrepreneurs

 Collateral-Free Business Loans: No collateral or security is required by banks or
NBFCs
 Loan Type: Term Loan / Overdraft
 3 Loan Categories: Shishu, Kishor, and Tarun
 Loan Amount: No minimum limit and maximum up to Rs. 10 lakh
 Repayment Tenure: Up to 5 years
  Processing Fee: Nil to 0.50% of the sanctioned loan amount
 Loans for Women living in both Urban and Rural regions of India

Mudra loans are offered to women to encourage women entrepreneurs and to promote the
MSME sector.

Source: https://www.paisabazaar.com/business-loan/five-leading-business-loan-options-for-women-
entrepreneurs/

2. UYEGP திட்டம்

To start up a new business, an entrepreneur has to arrange immediate finance besides

facing many other business challenges. There are or could be instances when banks or
NBFCs hesitate to finance first-time business owners due to lack of experience, income
stability, repayment history, or trust. To overcome such a situation, the Tamil Nadu
Government has introduced a loan scheme for small businesses. The scheme is introduced
under the title UYEGP (Unemployed Youth Employment Generation Programme) to
encourage unemployed youth to start up their own business and to promote
entrepreneurship among youth.

Features of UYEGP – February 2023

 Loan assistance from Commercial Banks

 Loan Amount: 90%-95% of the Project Cost
 Interest Rate: As per RBI’s Guidelines
 Repayment Tenure: Up to 5 years, as fixed by the Bank
 Promoter’s contribution 10% for General and 5% for Special Category
 Scheme for mitigating the unemployment problems of socially and economically
weaker sections of the society
 Project Cost: Manufacturing, Service & Business projects: Maximum Project costs
Rs.10.00 lakh, Rs. 3.00 lakh, Rs. 1 lakh respectively
 Individual-Based Capital Subsidy @ 25% of the Project cost (Maximum Rs. 1.25 lakh)
 Lock-in Period for Govt. Subsidy: 3 years

Eligibility Criteria
 Source: https://www.paisabazaar.com/business-loan/uyegp-tamil-nadu-government-loan-scheme/

Entry to the Market

 Research the market: Conduct thorough market research to understand the demand for
incense sticks in rural areas, the competition, and the target customer base.

 Develop a unique product: Develop a unique and high-quality product that

differentiates from existing products in the market. Focus on using natural and locally
sourced ingredients to appeal to customers in rural areas.

 Establish a supply chain: Establish a reliable supply chain for the raw materials needed
to manufacture incense sticks, including essential oils, herbs, resins, and bamboo sticks.

 Set up a small manufacturing unit: Set up a small manufacturing unit in a rural area,
where the business can be run with low overhead costs.

 Market the business: Develop a marketing plan to reach the target customers in rural
areas. This could include creating a website, advertising in local media, and participating
in community events.

 Establish a sales channel: Establish a sales channel for the incense sticks, such as local
retail shops, spiritual centers, or online channels.

 Provide excellent customer service: Provide excellent customer service and support to
build a positive reputation and attract repeat customers.

 Continuously improve the product: Continuously improve the product based on

customer feedback and market trends to stay competitive and relevant in the market.
Note: Entering the incense sticks market in rural areas can be challenging, but with a well-
researched plan and a focus on providing high-quality products and excellent customer
service, the business can succeed and grow over time.
Test of Business Plan
 We can test the business plan on a small scale in the locality and try to get customer
feedback and improve accordingly. The demand for incense sticks will be always there
and it will help us in penetrating the supply.

 We can provide samples to the locals and retail shopkeepers to promote our product
and get feedback from the customer base.
Diversify product offerings: Diversify the product offerings by introducing new scents and
types of incense sticks to appeal to a wider customer base.

Scalability
 Diversify product offerings: Diversify the product offerings by introducing new scents
and types of incense sticks to appeal to a wider customer base.

 Expand the target market: Expand the target market by reaching customers in
neighboring villages, cities, and even online.

 Invest in technology: Invest in technology to improve the efficiency and quality of the
manufacturing process. This could include upgrading the equipment or implementing
automation processes.

 Strengthen the supply chain: Strengthen the supply chain by establishing relationships
with suppliers, ensuring timely and reliable delivery of raw materials, and reducing costs.

 Develop a strong brand: Develop a strong brand by establishing a consistent visual

identity and marketing message that resonates with customers.

 Establish partnerships: Establish partnerships with retailers, distributors, and other

businesses to increase visibility and reach a larger customer base.

 Foster a positive company culture: Foster a positive company culture by valuing and
supporting employees, encouraging creativity and innovation, and creating a welcoming
workplace environment.
 Continuously monitor and improve: Continuously monitor the performance of the
business, gather feedback from customers and employees, and make improvements to
stay competitive and meet the needs of the market.

Estimated Profit for the Incense Sticks Business

Will the proposed business plan bring more income through profits

to these women?
Yes, the proposed business plan will increase the income of these women as the plan seems
confident to bring change in their lives.

Can it change their lifestyles and get them out of poverty and

promote gender equality in society?
Yes, it can change the lifestyle of women and bring them out of poverty. This will help them
in empowering themselves and make them self-sufficient. This will ultimately bring
prosperity to their families and it will eventually help them grow their families out of
poverty.

What would be my learning and contribution to this venture as a

student of responsible management education?
As management students, we can educate them with technical knowledge as well as
academic learning. We can promote their business on our social media handles and do
digital marketing through it. We can bring a new consumer base to them through our
connections.

BUSINESS PLAN FOR STITCHING

Based on our previous visits to Kariyacheri

They make cloth bags (jute bags and manjapai), nighties and inskirts.
They have a problem in commercializing the same.
Here, we are plan is to provide a feasible solution that would be fruitful to SHG

Business Plans
• Cloth Bag Preparation
• Tailoring Unit

The SHG, which is yet to be registered, is not able to find the right customer base, the
members have themselves indicated this problem, the make mainly these-
• Manja Pai
• Jute Bag
• Nighties
• Inskirts
The bags can be sold to
• wholesale dealers
• In marriages and similar functions
• Other villages, other items which are stitched like blouses and aari works can also be
sold

We can assist in
• Finding a proper marriage contract or any other contract with event management
organizations, where the similar bags (manjapai) are often used
• Connecting the SHGs with supply chains i.e. to the wholesale and retail dealers and
help SHG sell indirectly through them; if dealer could be found in Ritche Street or
Renganathan Street.
• Connecting the SHGs with the prospective customers i.e. direct selling to the
customers
• Fetch them the necessary funds through loans (only if it is feasible).
• Making sure that they get fair prices and margins
• An outsider sales representative can also assist - motive here is to increase SHG’s
connectivity, trust and mouth to mouth publicity ( if possible)