A

MINI PROJECT
REPORT ON
“APPLICATION OF EMERGING TECHNOLOGY IN AUTOMOTIVE
INDUSTRY”

Submitted To

Dr. A P J Abdul Kalam Technical University,

Lucknow
In the partial fulfilment of the requirement for the award of the degree of
MASTER OF BUSINESS ADMINISTRATION

Under the Guidance of: Submitted By:

Dr. Vikas Chaurasia Neha Pandey
Head MBA 2nd Semester
Department of Management Studies

Department of Management Studies

SR Group of Institutions, Jhansi, UP.
Session 2023-24
 ACKNOWLEDGEMENT

It is my proud privilege to release the feelings of my gratitude to

several person who helped me directly or indirectly to conduct the
research project work. I express my heart full indebted and owe a
deep sense of gratitude to my teacher and faculty guide. Mr. Vikas
Chaurasia. SR Group of Institutions, for their sincere guidance and
inspiration in completing this project.
And a special thanks to my parents for their support throughout all
the phases of my life.
The study has indeed helped me to explore more knowledgeable
avenues related to my topic and I am sure it will help to uplift my
future.
THANK YOU
NEHA PANDEY
 TABLE OF CONTENT
EXECUTIVE SUMMARY...................................................................................................................4
ACTIVITIES.........................................................................................................................................5
SHIAN...................................................................................................................................................6
SWOT ANALYSIS...............................................................................................................................9
 STRENGTHS:...............................................................................................................................9
 WEAKNESS:....................................................................................................................................9
 OPPORTUNITIES:............................................................................................................................9
 THREATS:.......................................................................................................................................9
SHIAN BUSINESS MODEL CANVAS.............................................................................................16
MARKETING PLAN..........................................................................................................................17
MARKETING & SALES....................................................................................................................20
 PRODUCTS:...............................................................................................................................20
 PRICE..........................................................................................................................................22
 PLACE:.......................................................................................................................................23
 PROMOTION:............................................................................................................................24
 PACKAGING:............................................................................................................................25
 LABELLING:..............................................................................................................................28
FINANCIAL PLAN............................................................................................................................29
CURRENT UPDATE ON KHADI AND VILLAGE INDUSTRY.....................................................32
CATALOUGE OF OUR CLOTHES...................................................................................................34
CONCLUSION...................................................................................................................................36
BIBLIOGRAPHY...............................................................................................................................37
 EXECUTIVE SUMMARY

The SHIAN is certainly a new face lift given to the age old Ghandhian
idea of “Swadeshi”. Through this we intend to fuse the Corporate
Social Responsibility with the core strategy of the company by
keeping in mind the civil society. With the advent of Mr. Sanjeev’s
idea of consumers at the ‘bottom of pyramid’ and eradicating
poverty through profit, we hereby stand in favor of putting the last
first and paving a way for the long forgotten ‘Khadi’ industry.

Khadi-In the present context

In today’s context the globalized generations has literally forgotten

about ‘Khadi’. A cascading effect of this change has brought about
the change even in the dressing style of the older generation; which
hitherto has always been seen as the main proponent of this fabric.
The only people with whom this fabric is associated today are the
politicians, most of whom see more as ideological baggage that is a
compulsion.

The two main reasons for this situation are:

1. Lack of adaptability: khadi clothes are generally hard to

maintain however never variants of this fabric not only is more
fine and hence comfortable but relatively easy to maintain.
2. Limited range in which turn has limited its appeal to just the
older generation.
 ACTIVITIES

The following are the major activities:

 To involve the Microfinance institutions and NGO’s in
providing the requisite resources like training, loans, etc.
for capacity building.
 Textile firms can closely work with microfinance
institutions and NGO’s and provide the necessary
resources to the weaver’s and farmers.
 The product offering needs to be a varied and
contemporary with variety of garments like cargos, kurtas
etc.
 The textile companies can assure at least initially, to take
up the entire produce produced at market rate (for e.g. In
case of ITC’s e- choupal)
 Promoting khadi extensively in own organization. (for e.g.
Uniforms given to employees could procured from these
producers).
 Proper promoting a branding of this product engaging
icons like Kiran Bedi, Mohd. Yunus, Rahul Bose etc.
 SHIAN

The SHIAN is certainly a new face lift

given to the age old Ghandhian idea of
‘Swadeshi’. Through this we intend to fuse
the Corporate Social Responsibility with
the core strategy of the company by
keeping in mind the civil society. Dr. C.K
Pralhad’s idea of consumers at the ‘bottom of the pyramid’ and
eradicating poverty through profit we hereby stand in favor of putting
the last first and paving a way for the long forgotten Khadi’s industry.
We hereby propose to link the CSR of any textile industry (feasible)
with its core strategies by introducing the khadi industry in its
activities. We will liaise with the NGOs/ Microfinance (local) to
provide support along with the necessary training to the artisans. The
training would be under the oversight of the CSR activities of the
company/ industry. Through this we will be acting as the service
provider by providing our intellectual ideas to link the dying
khadi industry with the very vibrant and discussed CSR and the
fast-growing microfinance working as its backdrop. This business
would be driven by the CSR and majorly supposed by the
microfinance.
MISSION STATEMENT:
Improve the status of khadi and increase its overall demand in
order to crave a niche in the textile industry along with the
upliftment of the rural artisans.
COMPANY GOALS AND OBJECTIVES:
To help position khadi garments as garments of choice across various
age groups and to satisfy the growing demand for khadi. According to
a recent survey there is a strong demand for khadi products in both the
domestic and international market. Therefore,
alleviating this industry to the next level by increasing its supply as
per the new demands, and catering for the needs of both national and
international markets.
BUSINESS PHILOSOPHY:
The most important consideration in our business plan is that we are
successfully able to sell our idea regarding the possible venture in
khadi, i.e., to produce the quality products which in turn would be
collected by the textile industry from the khadi bhandars. This would
further require the marketing and distribution in the markets. The
finished products made should be of the required quality standards,
further ensuring that the entire products to be bought by the industry
in order to sustain the entire model. The microfinance plays a critical
role by providing the initial financial support and also providing the
necessary training in coherence with the CSR of the industry.
The basic idea to offer a better and a varied product offering that can
fulfill the requirement of the age group of 20 years- 40 years and thus
in position to be “the garment of choice”. Our proposal is to offer
the target audience a wider and the better variety of clothes by
adapting contemporary designs and making the garments more
comfortable. The Fab- India model can be emulated and direct outlets
can be opened to cater to the tier11 and tier 111 cities in the later
stage. The industry to be ventured is certain not new nor is the
product. As this entire idea is linked to three major fields of works,
we would be related to all of them. These are as follows:
KHADI INDUSTRY:
This industry is now long forgotten and only seen in few election
campaigns else in national/ international ramps (fashion).Clearly it
stands to get the required attention as more and more demands are
being felt for the khadi, just that we don’t have the right service
provider. We can easily revamp it to the next level and it can address
the growing fashion demand of the youth, comfort statements of the
middle aged of course and always clear product for the aged ones. We
can thus be a pioneer in getting this notion started and can thus take
the first mover advantage.
CSR:
This concept is often criticized for its approach which is seen to be an
eye wash. This is a relatively new concept and here we are foreseeing
a new style of business ethics through liking the CSR with the
company’s core competency and eradicating poverty through profits.
Certainly, there lies wider scopes and future for CSR. In short term
more and more companies to get involved in these kinds of operations
to work in the direction of rural marketing and development activities.
In the long term we foresee this is to be a tool to address various
problems of the nation a whole.
MICROFINANCE:
It is a totally virgin industry just occupied by only 5% of the entire
available market. Its main strategy is to work on profits by financing
the non-bankable people and make them free of the clutches of
poverty. Its growth avenues lies in its successful outreach, making
products organizations would be soon seen in the Indian Rural Market
and the best use of them can be made by showcasing the potential
customers and areas of development.
In order to keep our services workable and sustainable, we will be
continuously providing the new avenue of work for the Microfinance,
linking more and more textile industries with the khadi.

SWOT ANALYSIS

 STRENGTHS:  WEAKNESS:
 Eco friendly  Lack of appreciation
 Reflects Indian culture  Labor intensive
 Versatility of Khadi  Lack of infrastructure
 Tax exemption  Lack of training in business
 Economic growth methodologies
 Low cost  Lack of awareness
 Employment generations
 Fashion

 OPPORTUNITIES:  THREATS:
 Potential for exports  Competition
 Emerging trends  Survival in fast growing
 Capturing an untapped market technology
 Generation of employment  Legislative impact
 Growing consumer preference

One of the most important strengths inherent in “khadi” is that it can

be worn during all seasons as it stays warm during the winter and is
equally comfortable during the summers. It provides more desired
comfort with the quality rising. It will provide more employment
opportunities in the rural fronts, thus a economic growth in the small
scale industry sector. This address the burning topic of GREEN
ENVIRONMENT at the global front. This will be a fashion
revolution and a boon to young generation and pleasant surprise to the
old at a very affordable cost.
One way of doing away with the coarseness of the cloth and give it
more appealing look can be by mixing varying degrees of silk at the
making level by providing proper skills to the artisans and bringing in
the fashion statements from the students and alumni of NIFT
(National Institute of Fashion Technology): as interns and fests. The
microfinance will cater for the major financing for the machine tools,
training, and making of better-quality khadi. The marketing part will
be covered initially by the textile industry itself along with its major
line of the products. The CSR will also focus on the advocacy part
including the training and making policies for the use of the finished
products, also in its own industry employees.
The major opportunity which lies within the perceived idea that we
have better market at low cost and the best part is that it’s novice. As
we can also plan in future for the public private partnership, it can be
tax exempted. There lie immense foreign trade opportunities as per
the ever growing international demand.
The immediate competition would be with fashionable existent
industry. The first mover advantage and the low cost, fashionable, and
all user products will mitigate major challenges imposed. The
government’s interest in khadi, rural and handloom (small scale) will
be aiding to keep up with the legislative issues.
The dynamic and fast developing service industry along with the three
major sectors (previously discussed) provides numerous avenues of
business. But, all these being already existent and functional, we just
need to congregate all of these to make profitable ventures. We
personally having the management skills in all the core departments
of marketing development and human resourcing should make a
perfect match for the outset.
Legal form of ownership
As this will be a service venture, we would start with the Sole
proprietor of ownership i.e., we will be the intellectual service
provider for all the three sectors (CSR- textile, khadi and
Microfinance- Joint Liability Group model) and getting them for a
common cause. In future, as we foresee this venture will grow
rapidly, we propose to make direct outlets through the Franchising
model.
 PRODUCT AND SERVICES

The services provided us would be in the

form of ideas, liaisons, and proper marketing
through the textiles. We would harp on the
fact that the success of our venture would lie
on the quality products and their sale ability.
The products would contain apparels (Indian
formals/ traditional, casuals, etc.) in the form
of Kurtas, Salwar suit, Shirts, Trousers,
Jackets, etc.
Creating a consistent pull for the product by trying up the various
retail and fashion houses would be necessary. E.g.- Mega mart is an
Arvind Mills initiative with pan- India presence. As Arvind Mills is a
mill it can be involved in the above mentioned way along with
providing the required self-space to these products.
The charge for the service provided by us would be based on the
quality services provided to the CSR (textile) and the Microfinance
for providing each of them the underlying scope to better their
business profitability. These would basically on the line of existing
consultancy market.
 ORGANIZATION & MANAGEMENT
This is the most important aspect of organization. It helps in
Achieving Group Goals, it arranges the factor of production
assembles and organize the resources, integrate the resources in
effective manner. It directs group effort towards achievement of pre-
determined goals. A good organization structure will support a
company’s mission, and it will attempt to meet the needs of various
customers. A business cannot survive without management because
management is its means of support. Organization and management is
concerned with acquiring maximum prosperity with minimum efforts.
It is essential wherever group efforts are required to be directed
towards achievement of common goals.
Authority responsibility relationship are very important can be fruitful
only when there is a formal relationship between the two. For smooth
running of an organization, the co-ordination between authority-
responsibility is very important. There should be co-ordination
between relationships. Clarity should be made for having an ultimate
responsibility attached to every authority. Organizational structure is a
network of relationship in which the work is divided into units and
departments. This division of work is helping specialization in various
activities of concern.
Therefore, “Shian” will have three departments, which are listed
below:
1. MARKETING:
The Marketing Department plays a vital role in promoting the
business and mission of an organization. It is the marketing
department’s job to reach out to prospects, customers, investors and
or the community, and create an overarching image that represents the
company in a positive light.
 2. FINANCE:
Finance is an important to organization as the firm has to know how
viable it is and also helps in balancing the profit with costs.
3. OPERATIONS/IT:
Operation management is concerned with converting material and
labor into goods and services as efficiently as possible to maximize
the profit of an organization. It department will basically work on the
website and will handle all sorts of technical glitch.
The below flowchart will help in understanding the hierarchy of
“SHIAN”.

PRESIDENT/ CEO

VICE PRESIDENT

MARKETING FINANACE

C.M.O C.O.O

MARKETING HEAD IT HEAD

EMPLOYEES EMPLOYEES
VICE PRESIDENT:
The V.P. will be delegated some the most important executive
authorities and responsibilities by the presidents.
C.M.O.:
Chief Marketing Officer will work on product designing and
promotional costing. He will further delegate the work to the people
working under his position accordingly.
C.F.O.:
Chief Financial Officer will work or determining the salaries,
accounting, financial statements, financial analysis/ projections and
maintaining the records. He will further delegate the work to the
people working under his position accordingly.
C.O.O.:
Chief Operating Officer will work on logistics and delivery
distribution. He will also keep a check on I.T. Head and will further
delegate some of the work and authorities to people working under his
positions.
I.T. HEAD:
The I.T. Head will be working on the upkeep of the website and
updates. He will further delegate some of the work and authorities to
people working under his position.
ARTISANS:
Artisans will make the clothes according to the customer’s
preferences and choices.
EMPLOYEES:
The employees will further click the pictures of clothes and post it on
the website and on social media handles, and also sell them offline
from the store.
 SHIAN BUSINESS MODEL CANVAS

KEYPARTNERS KEY ACTIVITIES VALUE CUSTOMER CUSTOMER

PROPOSITION RELATIONSHIP SEGMENT
 Social media/  Designs  Green  Providing  Upper
ecommerce  Weaving/ products best in class middle/ rich
 Co- artisans  Tradition/ product/  Taste khadi
marketing  Marketing handmade services  Tradition
 It Firms  Distribution  Fashion (Fab India)  Socially
 distribution khadi sensitive
 Mental  Environmen
satisfactio t friendly
n (korra
jeans)
KEY RESOURCES CHANNELS

 Artisans/  E-
weaver commerce
 Designers  Social
 Marketing/ media
sales  Co-
 Model marketing
 It capability
COST REVENUE
STRUCTURE STREAMS
 Cost of  Sales
goods sold
 Infrastructure
and
employees
 Sales and
marketing
 MARKETING PLAN

MARKET RESEARCH
No matter how good your product and your services, the venture
cannot succeed without effective marketing. And this begins with
careful, systematic research. It is very dangerous to assume that we
already know about our intended market. We need to do market
research to make sure we’re on track.
As this business model is all about the present textile industry (khadi
related), we could make efforts the existing demand and provided
supply. Also the quality of goods present, along with the detailed
analysis of the interests of the CSR and Microfinance.
MARKET RESEARCH
There are two kinds of market research: primary and secondary.
A present scenario secondary research is carried out through the
published information such as industry profiles, trade journals,
newspaper, magazines, census data, and demographic profiles. This
type of information is available in public libraries, industry
associations, chambers of commerce from the present microfinance
industry, and from government agencies. E.g. KVIC portals,
microfinance.com, ethical performanance.com, documentaries of CK
Prahalad, rural journal like Yojana, Kurukshetra, Karmayog.
Primary research means gathering our own data. For example, we
could do our own traffic count at a proposed location, use the yellow
pages to identify competitors, and do surveys or focus group
interviews to learn about consumer preferences. Professionals’ market
research can be very costly, but there are many books that show small
business owners how to do effective research themselves.
The surveys can be carried out on different stakeholders like the
Khadi Bhandars, Microfinance institute (present), customer surveys,
CSR team (management), fashion designers and the artisans.
ECONOMICS
The capital investment in this venture would be basically with the
infrastructure for building the office, along with the changes for legal
entity. The initial funding for meeting these can be through
procurement of loans from the banks (as appropriate). The personal
system can be used for the initial computing work.
The exclusive database of the customers would be maintained along
with the web blog provisions for different marketing ideas,
advertisement through low costs media (print and visuals), radio
propaganda, CSR advocacy, Government’s promotions of new Khadi
etc.
Selling counters, the very visibility will always be there.
PROMOTIONAL BUDGET
The budget will be covered as per the textile industry’s strategies and
not much needed to the allotted separately.
Before startup- About 1% more than the usual expenditure on
promotions shall be required.
Ongoing will become negligible and will be required on launch of
new products.
PROPOSED LOCATION
The proposed location initially will be the Tier11 and Tier111 cities
and towns in/ around the textile industry. This can be extended
depending on the demands and feasibility.
DISTRIBUTION CHANNELS
This will be same as that of the textile industry. Future needs can be
catered with new franchise.
 MARKETING & SALES

The marketing strategy of “SHIAN” centers on creating and

developing corporate identify that clearly defines our market niche in
terms that benefit our customers and our employees as well.
Employees are one who will run the company so “SHIAN” focus to
satisfy customer at large but the employees as well.
As we all aware of how marketing and sales work in the organization
so I am mentioning the four Ps of marketing which are essentially the
four pillars on which any entire organization will depend on:

 PRODUCTS:
As we are already familier with the khadi clothing, my product is also
about khadi clothing with a touch of modern trend in it, this fabric,
also known as Khaddar, and it is hand woven natural fibre made with
cotton. The other vibrant of khadi fabric include silk and wool. Khadi
fabric originated during the time of Mahatma Gandhi when he led the
Swadeshi Movement. This fabric has a rugged texture and feels
comfortable when worn during winter season while also keeping one
fresh in summer.
If we have the khadi spirit in us, we would surround ourselves with
simplicity in every walk of life. The khadi spirit means infinite
patience. For those who know anything about the production of khadi
know how patiently the spinners and the weavers have to toil at their
trade, even so must we have patience while we are spinning the thread
of Swaraj. But, now with the dynamic advancements, khadi fabric is
now available in multiple variations. With handwork ranging from
kantha to Block print, this fabric captivates beauty with its subtle
weaves. The styles that can be crafted from khadi are not limited to a
Nehru jacket anymore. You can now choose from a wide range of
Shirts, Flared pants and dresses. Modern machinery is taking over the
traditional methods of manual crafting. The fabric now also comes
with innovative cuts and styles. This fabric is quite easy to maintain
as it needs to be hand washed and ironed for a fresh, refined look.
Shian will be dealing with all kinds of khadi clothing from traditional
to modern; from men to women even kids wear as well in all sizes
from S to XXL, and you can design your own clothing design and
color for particular product.

TRADITIONAL CLOTHES:
 MODERN CLOTHES:

WOOLEN CLOTHES:

These are some varities of clothes product providing by Shian to there

beloved customers.

 PRICE:
Our pricing strategy will be competitive within the various product
ranges but will not rely on the selling price to overshadow other
advantages of doing business with our company, such as diverse line
of high quality products that are readily available, reasonably priced,
and backed by service excellence and on time delivery. In addition,
 we recognize that price flexibility is critical to our success. We are
prepared to offer discount and allowances, sales promotion prices, and
to reduce the price over limited period of time during the slow sales
hours, in order to increase our operating capacity usage, and reduce or
eliminate idle capacity and subsequent losses.

 PLACE:
Well in this section I will be telling you about how the product will be
assembled and will be launched in the market, and where the product
will be manufactured, so first let me tell you the location where the
clothes will get manufactured, so I will be taking factory type place in
Lucknow of 4000sq feet, where there will be plenty of space for
artisans, departments and photography room as well. The target for
the artisans for preparing traditional clothes for men and women and
kids will 3000 pieces per day, and for modern clothes there target will
be 1800 clothes pieces per day because modern clothes are little
difficult to prepare because of their styling patterns and cuts. The
working hours for the employees would be 9am to 5pm. The
employees are getting 8 hours to complete the work.
All the clothes are getting prepared will be kept in office for the
photography session on dummy and models so that we can out good
pictures on our webpage. There will be surely be the team of good
photographers who will capture good and detailed picture of clothes.
After the launch the clothes, customers can make their account if they
are visiting the page of the first time. Account details will contain:
I. FIRST NAME:
II. EMAIL ADDRESS:
III. PERMANENT ADDRESS:
IV. CURRENT ADDRESS:
V. PHONE NUMBER:
VI. DATE OF BIRTH, DAY AND YEAR:
VII. GENDER:
VIII. PASSWORD:
IX. CONFIRM PASSWORD:
After this they can place an order online, and next time if they are
shopping again then there is no need for the sign up. They can enter
with their email ID and password. Customers will also have the
advantage of choosing comfortable mode of payment method. They
can use cash on delivery and card as well and will get free delivery on
their first order and discount offers according to festivals and various
occasions and various other offers as well.
After receiving the order, we will start the packaging of the product
and for the delivery purpose we will have a contract with a logistic
company for the timely distribution and delivery of our products at
the door step of our customer within 7 to 10 days.
So this is how company will start operating. Initially there might be
hurdles but as a company and one big family, we will try overcoming
it, we will prepare ourselves in a manner that I could not lead to much
loss and can be handled in a very short span of time.

 PROMOTION:
Promotion is the voice of the company which sends out the brand’s
message loud and clear to the audience. It is the key element in
putting across the benefits of products or services to the customers.
Well-designed marketing and promotional strategies ensure long term
success, brings in more customers and ensure profitability for the
organization. Promoting the brand will help us in different ways listed
below:
 Increase brand awareness
 Provide appropriate information
 Increase customer traffic
 Build sales and profit.
Not only these promotions will also help the company to introduce
product easily in the ever so competitive market. Therefore, we really
need to analyze perfect channels for the promotion of our brand. This
will include, magazines, and social media (social media influencer
will be the predominant part of this).

 PACKAGING:
This aspect is as important as the product itself. Packaging of the
product communicates many things. From what the product can do for
their customers to your company’s values, because it’s a crucial
marketing and communication tool for the business. It is powerful
medium for sales promotion. It must perform all the basic function
such as protection, ease of handling and storage, convenience in usage
etc. and should not be deceptive and convey any deceptive message. It
is the best method for attracting the consumers for buying the
products.
Packaging should serve the following basic functions:

FUNCTIONS OF PACKAGING

PROTECT THE PROMOTE THE PRODUCT

PRODUCT

PROTECT THE PRODUCT:

The basic function of packaging is to protect the contents from
damage, dust, dirt, leakage, pilferage, evaporation, watering, and
contamination and so on. Packaging helps in protection of the
contents of the products. Seasonal fluctuations in demand may be
smoothed out through packaging. “Shian” used dual use packaging
which has the secondary usefulness after its content have been
consumed. For example, a jewelry box. There will be multiple layers
of packaging so that the product reaches the destination safely, and if
there’s damage from our side then “Shian” will bear it and will issue
other same piece of clothes.
Some of the picture below shows our packaging process:
This is the first layer for clothes packing:

This is the second layer of

pacakging:

This is the third and final layer

of packaging:
We will be using boxes of these kinds for the layer and these can be

used later too and are totally eco-

friendly:

PROVIDE CUSTOMER CONVENIENCE:

Customers are always our priority. We ensure that they receive the
order without any issues and further they don’t face any problem in
unpacking the product as proper instruction for unpacking will be
mentioned at the top of the packet. After unpacking they can still use
the packaging later.
PROMOTE THE PRODUCT:
The primary purpose of promotional packaging is to draw the
attention of the customers to the product as well. The packaging
should be eye catching so that could grab the focus of the clients.
Promotional packaging can be badly or colorful, elegant or funky,
chic or down to earth, corporate or casuals, sober or humorous. It all
depends on which customers base is being targeted. There is no one
size fits all. Further promotional packaging should avoid complex or
elaborate advertising which may distract the consumer’s attention
from the product. The amount of information displayed on
promotional packaging should be restricted to a product relevant
minimum.
LABELLING:
Labeling is another significant means of product identification like
packaging, labeling is the act of attaching or tagging labels. A label
can be anything, a piece of paper, printed statement, imprinted metal,
leather which is either a part of package or attached to it, indicating a
value of contents of a price of product name and place of producers or
such useful information to be beneficial to the user. Thus, a label is an
informative tag, wrapper or seal attached tp a product or product’s
package.
So, this is how the product of “SHIAN” will be labeled.

FINANCIAL PLAN

Bring a new business, the startup cost will be a significant portion of

the initial expenditure. The details of the startup cost, financial
projection and other related facts are further discussed below:

 STARTUP COST:

CHARGES RUPEES
Incorporation costs and other 3,00,000
fees
Lease, rent, and security deposit 1,00,000
Equipment, clothing 2,50,000
material(thread)
Estimated total 6,50,000
  BREAK EVEN ANALYSIS:
A break even analysis is necessary for a company’s short term well-
being. Any company needs to reach their respective break-even point
in order to stay afloat and function in an ever changing market such as
ours. An assumed point of break even for “SHIAN” can be
summarized as below:
PARTICULARS RUPEES
Monthly Revenue break-even 2,60,000
ASSUMPTIONS
Variable cost (% of fixed cost) 40.5%
Estimated Monthly Fixed Cost 1,20,000

The break-up of the estimated monthly fixed cost is as the following:

PARTICULARS RUPEES
Rents and other fixed expenses 1,00,000

The fixed cost will primarily include the costs of running and
maintaining the office space, the equipment required to produce the
high- quality artwork the company is striving for.
As far as the variable costs go, the break-up of it is as follows:
PARTICULARS RUPEES
Salaries 70,000
Equipment and thread 38,300
Other charges 10,000

 SOURCES OF CAPITAL:
Being a private limited company the primary sources of capital, apart
from the private placement of shares, will be borrowings in form of
loans from the bank.
  PROJECT COST:
The initial project cost, based on the startup cost and monthly fixed
costs and variable cost, will be 50,00,000 which will keep the
company afloat for six months while the sales steadily grow and reach
a point of break even.

 ESTIMATED SALES:
The sale will be increasing gradually as the reach of the website
increases. The promotion plan will use internet celebrities to ensure
the reach increases substantially right of the bat.
The following are the sales projections for the first year of operation:

PARTICULARS NO.OF UNITS

(PER MONTH)
1-3 Months 5-15 50,000-1,50,000
3-6 Months 20-50 2,00,000-5,00,000
6-9 Months 50-100 5,00,000-10,00,000
9-12 Months 100-200 10,00,000-20,00,000

ESTIMATED PROFIT AND LOSS STATEMENT FOR 1 YEAR

Revenue= 2,60,000
Cost of goods sold= 1,20,000
Other expenses(rent etc.)= 1,00,000
Profit = revenue-(COGS+ other expenses)
Profit= 2,60,000-(1,20,000+1,00,000)
Profit= 2,60,000-2,20,000
Estimated profit= 40,000 this will be approx. profit of 1 month
To get yearly profit 40,000*12=4,80,000 in initial year
We will consider approx. 4,80,000 as a profit in initial year
This is just a tentative plan as my business is not crystallize. Once
there will be a proper commencement of my project I will work on
my final financial plan.

CURRENT UPDATE ON KHADI AND VILLAGE INDUSTRY

Khadi, village industries see highest- ever turnover in FY21

despite Covid impact on production, sales.
Ease of doing business for MSMEs: despite the pandemic, Khadi
and Village Industries Commission (KVIC) on Thursday said it
posted the highest ever turnover during the financial year 2020-21.
KVIC recorded a 7.71 per cent growth in gross annual turnover to Rs
95,741.74 crores from Rs 88,887 crores in FY20, the commission
announced in a statement by the MSME Ministry, even as the
production activities were suspended for over three months during last
year’s lockdown announced on March 25. “During this period, all
khadi production units and sales outlets too remained closed that
severely affected the production and sales,’ the ministry said.
“There were a lot of government orders that we had received last year.
While during the pandemic there was no sale but we had launched the
outline sale that supported our growth. Moreover, after khadi outlets
were allowed to open last year, aggressive marketing was undertaken
and customers had also started accepting local products, ”Vinai
Kumar Saxena, chairman, KVIC had told Financial Express Online.
KVIC added that the overall production of khadi and village
industries sectors in FY2021 witnessed 101 percent growth in
comparison to FY16 while the gross sales during the period increased
by 128.66 percent. The commission reasoned launch of Khadi e-
portals, Khadi masks, Khadi footwear, khadi Praktrik paint, Khadi
hand sanitizer etc. setting up of a record number of PMEGP units,
new SFURTI cluster, government’s push to Swadeshi and KVIC’s
agreements with paramilitary forces for the supply of provisions for
increased turnover. The village industry sector’s production had
increased from Rs65,393.40 crores in FY20 to Rs70,329.67 crores in
FY21. Likewise, sales of village industry products stood at Rs
84,675.29 crores in FY20.
We have added more than 527 new khadi institution and distributed
over 50,000 new charkhas (to artisans) and around 10,000 looms that
have added to the production. While the impact of second wave will
be there, we will plan on growth once the lockdown lifts. Last year,
over 28 lakh masks were sold while each outlet had sold 2,000- 3,000
masks daily. Also, the government’s constant appeal to adopt khadi
has helped in growth,” Saxena had said. However, production and
sales in khadi sector dipped as spinning and weaving activities across
the country took a major hit during the pandemic, the ministry added.
While production decline Rs 1904.49 cores from Rs 2292.44 cores in
FY20, the sales contracted to Rs 3527.71 in FY21 from Rs 4211.26
crore in the preceding year KVIC had launched its e- commerce
marketplace early this year after running it in beta mode for four
months with products across 58 categories including groceries,
footwear, apparel, herbal medicines, spices and more. The beta portal
had served over 22,000 customers so far,” Saxena had told Financial
Express Online in an earlier interaction.

CATALOUGE
OF OUR
CLOTHES
Overall, the conclusion should be a concise and compelling summary
of the business plan or analysis, highlighting the potential for success
and demonstrating a clear understanding of the market and the
competitive landscape."

BIBLIOGRAPHY
Khadi clothing startup is a promising business venture that has a lot of
potential in the current market. With the growing demand for
sustainable and eco-friendly products, Khadi clothing can offer a
unique value proposition to customers who are looking for ethically-
made clothing. Khadi clothing has several advantages over traditional
cotton clothing. It is made from hand-spun and handwoven cotton,
which is a more sustainable and environmentally-friendly process
than machine-made cotton. Khadi clothing is also more durable and
comfortable to wear than regular cotton clothing.
To succeed as a Khadi clothing startup, it is important to focus on
creating high-quality products that are both sustainable and stylish. It
is also important to build a strong brand identity that resonates with
customers who value sustainability and ethical production practices.
REFERENCES-

 https://images.app.goo.gl/yMRZLB7ggpzwngNb9
 https://images.app.goo.gl/n9E8BGaCr197sYym9
 https://images.app.goo.gl/vdUdHCzRTiFXnCAu8
 https://images.app.goo.gl/qgjYfrBfNHX7Z4K86
 https://images.app.goo.gl/7Cf481eoPuiaoLn68
 https://images.app.goo.gl/EzgRrNcVyx7paWon7
 https://images.app.goo.gl/8VZitLNgLA6MGAeP8
 https://www.financialexpress.com/industry/sme/msme-eodb-
khadi-village-industries-see-highest-ever-turnover-in-fy21-
despite-covid-impact-on-production-sales/2273361/lite/?