MHCE BUSINESS PLAN

LIASION OFFICE FOR INDIA

 BUSINESS PLAN
( LIAISON OFFICE FOR
INDIA )
 Company
 Founder is Levi Strauss
 Started on 1873 as a Two Horses Brand
 1928 Brand name change to Levis
 Operate in 110 countries.

 Author
 15 years’ experience in locally & overseas in Apparel Industry.
 Engaging in production, Industrial engineering, Planning, Cutting, in a factory & Liaison
Office.
VMO  “To sell the innovative product for which uses ethical & sustainable method to offer the
competitive price “
 Supplier Information : Bangladesh RMG factory , New line clothing , Nassa
Apparel , Sharmin Apparel

Ownership structure: partnership method with Tech city company & Author
Capital Investment is 50 : 50
Net income share 50 : 50
Extension or Termination of the project after covering the capital investment

Legal consideration :
MOU with partner
VAT , Income Tax Policies implies with country rules & regulation.
Situation Analysis

S W
• Author vast experience & knowledge • Higher competitor
• Financial stability • Poor supply chain
• Good network • poor marketing

O T
Indian denim market value • Many Competitors
increasing • Poor supply chain
• 2018 - 27,200 Crore indian rupee market • Inflation is increasing Bangladesh
value • political unstability in bangladesh
• 2023 - 54,600 Crore indian rupee market • ISIS terrorist threats
value
 Markets Segmentation
Psychographic Behavioral Demographic Geographic
Situation Analysis Segmentation Segmentation Segmentation Segmentation
Marketing Mix

Rivals
• Low

Threat of Consumer
substitute bargain
products power
• Low
Denim • Moderate

pant

Threat of Suppliers
new bargaing
entrants power
• Moderate • Low
 Production Price / garment $

McCarthy 4 Ps For marketing Analysis Primary Fabric

Extra pocket material
Emberoidarty
$3.69
$0.10
$0.15
Zipper $0.15
Button $0.06
Riverts $0.16
Garment labels $0.12
Hanger / Sticker $0.23
Box & Label $0.02
Thread & Other Mterial $0.31
Wash $0.75
Commercial $0.28
Labour Cost $0.95
Factory Profit $0.02

Production Cost of the garment $7.00

Product Price Port fees $0.20
Denim pant Shipping $0.30
7$ Operational cost $0.50
Authors profit $0.50
Distribution Cost $1.50
Selling
$8.50
price

Promotion
Networking Place
Interview
India Levie's market
presentation
Exhibition
Objective  Goals
 Market share
To gain 10% market supply from the Levis India denim market by August 2019.
 Operational Objectives
Help supplier to decrease production cost by 5 % by applying lean manufacturing system to increases
supplies profit & workers welfare, Compliance within the factory.
To achieve a 5 %increase of return on capital within august 2019.
 Objective for Branding.
To participate Levies brand promotional campaign to increase the sales which indirectly increase the
selling units of the suppliers.
Operation Strategy
 Marketing & Merchandising Team Managing
Directotor
 Production & Quality Team
 Compliance Team. Compliance
HRA
production &
Quality
IT Marketing &
Finance
Team Merchdising
Team
 HR, IT, Finance Team

HR department : In this organization HR is very small department & below are th main function in this
Organization

1 st interview – This is done by the HR to identify their

personal relation qualities , educational qualities , work Motivation Events
experience , health condition , family back grounds , extra Annual picnic
activities. If tar party for the all the employee in Ramadan month
2 nd interview – this is done related department head to T shirt for the all the workers
analyses the their technical knowledge about the position Lunch provide for all staff in reasonable amount
3 rd interview – This is done by the MD to identify the 21 Annual leaves , 14 Casual leaves
personality, result orientation & to take decision on the Profit share based on the sales & profit
recruitment.
 Sales forecast - new liasiason Office Income Statement (1st January to 31st December)
In come statement
Sell Price US$ 8.50
Product price- US$ 7.00
Operational cost US$ 1.00
Gross profit margin US$ 0.50

Month Ja n Feb Ma rch April Ma y June Jul y Aug Sept Oct Nov Dec Tota l
Forecast qty in pcs 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 1,200,000
Sale Revenue - US$ 850,000 850,000 850,000 850,000 850,000 850,000 850,000 850,000 850,000 850,000 850,000 850,000 10,200,000

Year 1
Cost of product- US$ 700,000 700,000 700,000 700,000 700,000 700,000 700,000 700,000 700,000 700,000 700,000 700,000 8,400,000
operation cost- US$ 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 1,200,000
Gross Profit - US$ 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 600,000
Income Tax ( 5 % revenue )- US$
42,500 42,500 42,500 42,500 42,500 42,500 42,500 42,500 42,500 42,500 42,500 42,500 510,000
Net Income US$ 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 90,000

Month Ja n Feb Ma rch April Ma y June Jul y Aug Sept Oct Nov Dec Tota l
Forecast qty in pcs 150,000 150,000 150,000 150,000 150,000 150,000 150,000 150,000 150,000 150,000 150,000 150,000 1,800,000
Sale Revenue - US$ 1,275,000 1,275,000 1,275,000 1,275,000 1,275,000 1,275,000 1,275,000 1,275,000 1,275,000 1,275,000 1,275,000 1,275,000 15,300,000
Year 2

Cost of product- US$ 1,050,000 1,050,000 1,050,000 1,050,000 1,050,000 1,050,000 1,050,000 1,050,000 1,050,000 1,050,000 1,050,000 1,050,000 12,600,000
operation cost- US$ 150,000 150,000 150,000 150,000 150,000 150,000 150,000 150,000 150,000 150,000 150,000 150,000 1,800,000
Gross Profit - US$ 75,000 75,000 75,000 75,000 75,000 75,000 75,000 75,000 75,000 75,000 75,000 75,000 900,000
Income Tax ( 5 % revenue )- US$ 63,750
63,750 63,750 63,750 63,750 63,750 63,750 63,750 63,750 63,750 63,750 63,750 765,000
Net Income US$ 11,250 11,250 11,250 11,250 11,250 11,250 11,250 11,250 11,250 11,250 11,250 11,250 135,000

Month Ja n Feb Ma rch April Ma y June Jul y Aug Sept Oct Nov Dec Tota l
Forecast qty in pcs 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 2,400,000
Sale Revenue - US$ 1,700,000 1,700,000 1,700,000 1,700,000 1,700,000 1,700,000 1,700,000 1,700,000 1,700,000 1,700,000 1,700,000 1,700,000 20,400,000
Year 3

Cost of product- US$ 1,400,000 1,400,000 1,400,000 1,400,000 1,400,000 1,400,000 1,400,000 1,400,000 1,400,000 1,400,000 1,400,000 1,400,000 16,800,000
operation cost- US$ 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 2,400,000
Gross Profit - US$ 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 1,200,000
Income Tax ( 5 % revenue )- US$ 85,000
85,000 85,000 85,000 85,000 85,000 85,000 85,000 85,000 85,000 85,000 85,000 1,020,000
Net Income US$ 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 180,000
 Balance Sheet - Year 1 (1st January to 31st December)
Balance Sheet Assets Liabilities
Current Assets 18000 Current Liabiliti es 34000
Cash 10200000 A/C payables 9600000
A/C recievables 0 Lease 60000
Inventory 16000 Tax liabilities ( 5 % of revenue ) 510000
10234000 10204000
Non current assets Non current liabilities
Machinary 0 Long term loans 0
Vehicle 60000 Equity 90000
60000 90000

Total Assets 10294000 Liability + Equity 10294000

Balance Sheet - Year 2 (1st January to 31st December)

Assets Liabilities
Current Assets 18000 Current Liabiliti es 34000
Cash 15300000 A/C payables 14400000
A/C recievables 0 Lease 60000
Inventory 16000 Tax liabilities ( 5 % of revenue ) 765000
15334000 15259000
Non current assets Non current liabilities
Machinary 0 Long term loans 0
Vehicle 60000 Equity 135000
60000 135000

Total Assets 15394000 Liability + Equity 15394000

Balance Sheet - Year 3 (1st January to 31st December)

Assets Liabilities
Current Assets 18000 Current Liabiliti es 34000
Cash 20400000 A/C payables 19200000
A/C recievables 0 Lease 60000
Inventory 16000 Tax liabilities ( 5 % of revenue ) 1020000
20434000 20314000
Non current assets Non current liabilities
Machinary 0 Long term loans 0
Vehicle 60000 Equity 180000
60000 180000

Total Assets 20494000 Liability + Equity 20494000

THANKS