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Product:-…………………………...National Flag. Name of the Company:-……….…..Tricolor Enterprises Registration No.:-………………….NCS007 Name of the Partners:• Mr. Nirav Shah • Ms. Disha Dhar • Ms. Yukti Mittal • Mr. Amit Lahoti • Ms. Karishma Ahuja • Mr. Kaushal Rajpopat • Ms. Anitya Bhat Location of Manufacturing: - ……Ahmedabad. Location of Business: -……….…..Kolkata.
We would like to extend our sincere thanks to Ms. Damayanti Salunkhe the Assistant General Manager of the New India Bank (Bandra Branch) for helping us understand the entire process a businessman goes through to set up a small-scale unit. We would also like to thank our Professor, Mr. Sameer Virani, without whom the project wouldn’t have happened in the first place write about
• Idea Generation
The recent survey conducted by TOI revealed that there was a tremendous growth and demand for the national flag. Thus the promoter of the company Mr. Nirav Shah took the initiative along with other members to set up the business. Later they explored various aspects as whether to manufacture national flags or tie up with some other factory or to outsource.
• Market Survey
As per the survey, Kolkata has one of the highest demands for national flags, since the willingness of the people for buying the flags was high. Thus we analysed the business scenario & prepared a SWOT analysis. Strength ⇒The labour is cheaply available in Ahmedabad. ⇒The cloth and textile required is found at low cost. ⇒There is an existing demand. ⇒Being a small scale industry and also producing national flags helps to attain various concessions and subsidies. ⇒It is a homogeneous product. Weakness ⇒There is lack of specialization. ⇒There is lack of modern technology in this field. ⇒Business is Highly labour oriented in manufacturing.
⇒It requires training of labours. Opportunity ⇒Earlier the government had banned the use of national flags by individuals but only the government authorities had the right to use it. Now every individual can use it provided they abide by the rules. ⇒There is an equal need and demand which is conducive for the growth of the business ⇒There is seasonal demand and which can be converted into the perennial demand. ⇒There is already an existing market which can be further explored Threats ⇒There are a large numbers of competitors ⇒The business is low profit margin oriented ⇒They are subjected to seasonal demand.
• Promoters and partners
Below given are the members and the amount that they have invested.
Mr. Nirav Shah 1,00,000 − Ms. Disha Dhar 30,000 − Ms. Yukti Mittal 20,000 − Mr. Amit Lahoti 55,000 − Ms. Karishma Ahuja 40,000 − Mr. Kaushal Rajpopat 25,000 − Ms. Anitya Bhat 30,000
Forms of ownership
The type of ownership is partnership and accordingly registered as Tricolor enterprises partnership firm, under the provisions of the Indian Partnership Act, 1932
Location of the business
Ahmedabad is one of the biggest textile markets in India. Thus we have chosen Ahmedabad as the base for production. Skilled tailors and labour are readily available at a low cost there. The plant is located near love garden , ahmedabad. Kolkata is our main target market for selling of the product i.e. national flag. Though there are a large number of competitors, the demand for the flags is equally high. And as a result of which the competitors are not able to meet the demand. The market for Kolkata is located at Khadi bazaar, Howrah.
The product selected is available in various sizes, which are as follows… ⇒5 feet * 10 feet ⇒6 feet * 12 feet ⇒7 feet * 14 feet ⇒8 feet * 16 feet ⇒10 feet * 20 feet
And the above-mentioned sizes are available in Khadi, cotton, & silk.
Technical know how
The machinery required are drying machine, dying machine, cutting machine.
2 Dyeing machines 2 Drying machines 2 stamps with an image of Asoka Chakra imprinted on each one of them. We are provided with Government Subsidies for the purchase of machinery.
We, Tricolor enterprises have registered as per the rules and regulations small scale industries act, 1965. Thus, are entitled for the subsidies and tax exemption provided by the act.
Availability of funds
After collecting the necessary funds, we would commence our business.
Installation of the machinery
The installation of the necessary machinery like the drying machine and dying etc are installed at the site i.e in ahmedabad.
The insurance of the labourers has been under taken by the government. new India bank has recently branched out in the insurance sector and hence have offered to insure our assets.
The recruitment required is for twelve workers specifications are as follows: Five tailors were required for the bidding work. Three men are required for the cutting of the cloth. Four men are required for the drying purpose. We would hire clearing and forwarding agents ahmedabad to kolkatta. . the
Dyes( Saffron, Blue & Green)
Cloth (Khadi, Silk, Cotton)
The procedure of making the national flags
A piece of cloth (of required cloth type and size) is taken and put into the dying machine which is already made ready for the process. There are partition scales on the machine itself so there are 3 partitions with a dyer placed above each of them. The left dyer is filled with a saffron dye, the right with a green dye and the middle dyer is left blank the cloth area is already white. When the work on the Dying machine is done is directly goes to the Drying machine where is dries upto 80% and that is dried out naturally. After the cloth is completely dry it is carefully stamped to imprint the Asoka Chakra on the middle-white part and then dried naturally. After the flag is completely dried, the tailors stitch the edges of the flag to give it an even look.
The below given is the projection report for the year of commencement of business.
PARTICULARS RAW MATERIALS Khadi Silk Cotton WAGES INSTALLATION CHARGES PRIME COST FACTORY OVERHEADS Machinery Cutting m/c Drying m/c Dying m/c Stamping m/c FACTORY COST PLANT SUNDRY EXPENSE COST OF PRODUCTION SELLING AND DISTRIBUTION COST OF SALES
NO. PER OF UNITS UNIT
10,00 0 2,000 3,000
18 20 10
18,000 40,000 30,000 1,00,000 10,000 1,98,000
2 2 2 2
13,00 0 13,00 0 13,00 0 1,000
26,000 26,000 26,000 2,000 2,78,000 60,000 9,250 3,47,250 34,625 3,81,875
Loan Requirement Plan
Capital Investment Cost of Sales requirement for General Reserve 3,81,875 1,18,125
Short Fall / loan requirement
On the basis of the projection report and the above given table, there is a requirement of a sum of Rs. 2,00,000/- for which we have applied for a loan from NEW INDIA BANK. Terms of Repayment of Loan As per the agreement between New India Bank & Tricolor Ent. Have agreed on the terms that loan will be repaid over a period of 5 years @ 9.5 %.
• The basic market research instrument was the survey in the TOI that told us about a possible potential in this field. All the partners then carried out research by collecting primary data ourselves. We spoke to existing manufacturers, locals etc.
Though the market for our product is very huge, the competition is quite tough. But flags are used by everyone in the nation. Hence, like all of our competitors we are using Mass Marketing.
• There is just one product line i.e. the flags with a fair amount of variations in the product itself (as mentioned earlier).
The pricing method we have chosen is the cost plus method where we plan to gradually increase the profit margin. Our products will be sold both in Ahmedabad and Kolkata. In Ahmedabad we will sell the flags outside our manufacturing unit and in Kolkata we will sell in Khadi Bazaar. We are using Quality Assurance as a key marketing strategy as the raw materials we use are of a good quality and the products are manufactured and stored in a good environment.
The capital invested is of RS. 4,00,000 and the total cost of production is RS. 3,81,875 and thus resulting in a profit of RS.18,125. Since there is availability of funds and thus as a company we do not need a loan from the bank. Also in the following years the sales are expected to grow by 10% every year.
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