[Type the document title] 2012
PUB-LICK GARMENTS
Introduction of Surf Apparel wear
(Disclaimer: This is a sample business plan, so
the company and business information are
fictitious.)
Pearl academy of fashion
Page 1
[Type the document title] 2012
LETTER OF TRANSMITTAL
Dear Sir
We are submitting a report as requested on December 7, 2011. This report is
entitled as Pub-lick Garments. The purpose of our report is to set up a factory – ,
Pub-lick Garments at rama road, Delhi. It is introducing a new concept of surf
wear garments for exports and job work for other factories as well.
I hope that this report will merit your approval.
Yours Truly
Sumedha Mundra
Onkar Arora
PGGM-III
Date: 7th December 2011
Place: Naraina
Pearl academy of fashion
Page 2
[Type the document title] 2012
AUTHORISATION LETTER
This is to certify that the project work entitled “Pub-lick Garments” is submitted
in the partial fulfillment for the degree of Post Graduate diploma program of
Pearl Academy is an original work. This work has not been submitted to any
other institution or university for the award of any other degree or diploma.
PGGM- III
Sumedha Mundra
Onkar Arora
Dated: 06/12/2011
Place: Naraina
Pearl academy of fashion
Page 3
[Type the document title] 2012
ACKNOWLEDGEMENT
We would like to express our sincere gratitude to Mr. Tarun Pandey(our course
leader) for giving us the opportunity to do this entrepreneurship project. We
also extend our gratitude to Mr. Rahul Jain and Mrs. Priyanka – our course
teachers for giving us help and support at all times.
We would like to thank our colleagues for helping us in the completion of this
project.
It was a pleasure doing this project; it was an enriching learning experience.
Pearl academy of fashion
Page 4
[Type the document title] 2012
EXECUTIVE SUMMARY
PUB-LICK GARMENTS
Pub-lick Garments is a new company that will provide good quality and style
garments to its customers. Pub-lick Garments is scheduled to begin operations
in January 2013. Pub-lick garments will be a partnership, owned and operated
by Mr.Onkar Arora and Miss Sumedha Mundra.
Pub-lick Garments will provide a wide range of garments that are being
produced for different buyers. We are going to specialise in the concept of surf
wear garments which are comfortable recreational clothing. Pub-lick Garments
will target small to medium sized companies.
The company has 157 employees including both direct and indirect. This
includes all the employees be it operator or the supervisor or the merchandiser.
It is estimated that approximately in the next 3 years this company will diversify
or expand its business.
Key leading sectors within the factory are The Merchandising department, The
Cutting department, The Production department and The Finishing and packing
department.
The entire market has identified the increasing demand for garments as the trend
is changing. The customers want to buy new garments with every new occasion.
People have stopped repeating their garments a lot. The trend is changing.
The initial start up expense for pub-lick garment include: Capital worth
Rs.4,18,65,090 which includes The Machinery cost. Marketing funds will be
used for Trade show booth design, Trade show attendance, Company apparel
and various print materials and Advertisements.
In order to properly fund the start up of Pub-Lick Garments, in the initial
investment we will get the money from banks at the rate of 14.25% and the debt
equity ratio will be 47:53. The annual sales is estimated to be around
Rs.10,13,41,040 with the production of 36,000 pieces annually.
Pearl academy of fashion
Page 5
[Type the document title] 2012
TABLE OF CONTENTS
S.NO
PARTICULARS
PAGE NO
CHAPTER 1
1.
INTRODUCTION
7
1.1
PARTNERS PROFILE
7
1.2
STRATEGY
8
1.3
VISION
8
1.4
MISSION
9
1.5
USP
9
1.6
OBJECTIVES
9
1.7
PRODUCT RANGE
10
1.8
CONCEPT DESCRIPTION
10
1.9
ORGANISATION LEGAL BUSINESS
10
CHAPTER 2
2.
INDIAN APPAREL INDUSTRY
11
2.1
SCOPE OF DOMESTIC INDUSTRY
11
2.2
GROWTH OPPURTUNITY
12
2.3
GOVT POLIIES AFFECTING THE COUNTRY
13
2.4
ABOUT THE EXPORT COUNTRY
15
2.5
SWOT ANANYSIS
19
2.6
5 Q MODEL
20
2.7
PEST ANANLYSIS
Pearl academy of fashion
20
Page 6
[Type the document title] 2012
2.8
LEGALITIES
22
CHAPTER 3
3.1
TARGET CUSTOMERS
25
3.2
COMPETITIVE EDGE
25
3.3
MARKETING MIX
25
3.4
DIXTRIBUTION NETWORK
27
3.5
COMPETITIRS ANALYSIS
28
3.7
FABRIC RANGE
30
CHAPTER 4 HUMAN RESOURCE
4.1
HRM
34
4.2
RECRUITMENT AND SELECTION PROCESS
35
4.3
FACTORY COMPLIANCES
35
4.4
PERFORMANCE APPRAISAL
36
4.5
JOB DESCRIPTION
37
4.6
HRM CONCLUSION
38
CHAPTER 5 PRODUCTION PLAN
5.1
FACTORY LOCATION
39
5.2
MACHINARY LIST
40
5.3
FLOW OF INFORMATION
41
5.4
MERCHANDISING PLAN
42
5.5
SAMPLING PLAN
43
5.6
FABRIC STORE
44
Pearl academy of fashion
Page 7
[Type the document title] 2012
5.7
CUTTING STORE
45
5.8
PRODUCTION
46
5.9
FINISHING AND PACKING FLOOR
47
5.10
QUALITY
48
5.11
SOURCING VENDORS
50
5.12
INNOVATIONS
51
5.13
PEOPLE OUR ASSETS
51
5.14
LAYOUTS
52
5.15
ORGANISATION CHART
53
5.16
OPERATION BREAKDOWN OF 6
54
GARMENTS
CHAPTER 6
6.1
SALES BUDGET
59
6.2
PRICING
59
6.3
PRODUCT COST
59
6.4
RESOURCE LIST
60
6.5
INITIAL INVESTMENT
61
6.6
PRELIMINARY EXPENSES
62
6.7
EMPLOYEE COST
63
6.8
CPM
63
Pearl academy of fashion
Page 8
[Type the document title] 2012
6.9
OVERHEADS
64
6.10
INCOME STATEMENT FOR YEAR ONE
65
6.11
PRELIMINARY EXPENSES (WRITTEN OFF)
65
6.12
LOAN FOR INCOME TAX
65
6.13
BREAK EVEN ANALYSIS
66
6.14
RATIO
66
CHAPTER 7 PROJECT PLAN
7.1
7.2
DESCRIPTION OF PROJECT
REPORT OBJECTIVES:
67
67
7.3
SCOPE OF OUR PROJECT
67
7.4
LIMITATIONS
68
7.5
SCOPING FORM
70
CHAPTER 8
8
EXIT STRATEGY
72
CHAPTER 9
9
REFLEXION
73
CHAPTER 10
10
BIBLIOGRAPHY
74
11
ANNEXURES
75
Pearl academy of fashion
Page 9
[Type the document title] 2012
CHAPTER 1
1. INTRODUCTION
Pub-Lick Garments will be a new player in India for the Surf wear and Active
wear apparel industry. Pub-Lick Garments is composed of making quality
products for surfing, skating and other active lifestyles .Even though these
sports might not be that popular in India, but its attire is liked by the people and
we hope to see a great response for the same. Pub-Lick Garments plans to gain
market penetration and establish themselves as a cool-to-wear Logo and apparel
company.
Pub-Lick Garments will be a corporation located in New Delhi whose products
will be manufactured in Delhi/NCR. New Delhi was strategically chosen to
provide Pub-Lick Garments with credible product feedback, since it is
considered by many as the Fashion capital of India. Our Merchandise will be
targeted at people aged between 16 to 40 years. Pub-Lick Garments not only
wants to develop the clothing line, but supports it with advertising and
promotion campaigns. The key message associated with the Pub-Lick Garments
line is that it is an exciting business that will leverage all sports-active
people and their lifestyles.
The company's promotional plan is diverse and includes a range of marketing
communications. In the future, the company hopes to develop lines of
accessories which will include Bags & Backpacks, Casual & Semi-Formal
Shoes, and Wallets etc.
1.1 PARTNERS PROFILE
Miss Sumedha mundra has a degree in designing and manufacturing that makes
it somewhat simple and not that complex to handle the Design department and
less money has to be spent into hiring of any designing experts because this can
be managed in house with her individual knowledge.
Mr.Onkar Arora has a Diploma in Stock Market Trading and its Operations and
has interned in a Public Relations firm as well. With this knowledge it makes it
easy for him to understand the way the other countries economy works and
understand the ratio of their currency with the Indian rupee rates. Working in
Public Relations firm gives him an idea of how the advertising industry works
Pearl academy of fashion
Page 10
[Type the document title] 2012
and how to approach the different kind of marketing methods and how to
evaluate the costs that are incurred in Marketing. With that he is currently
pursuing a post-graduate Diploma in Garment Manufacturing so that gives him
the in-depth knowledge of the technicalities of the factories and how to achieve
the lead times in a proper manner without compromising on the quality.
1.2 STRATEGY
We need various strategies for running our business venture. We will adopt
some sales promotion techniques. We are going to promote our company
online. We will register ourselves with alibaba and Google.
PUB-LICK GARMENTS will not only develop the clothing line but will also
support it with advertising and promotion campaigns. The company plans to
strengthen its partnership with organized retailers by developing brand
awareness.
1.2.1DIFFERENTIATION STRATEGY
As a beginner company in this field we will want a competitive edge over the
other existing companies so that we are able to attract large number of buyers to
us and that we can soon be a successful entity. For that we need to add the
differentiation strategy to our business entity.
What sets us different from the others?
1.
2.
3.
4.
5.
6.
7.
Fulfillment of commitments
Effective communication with clients
Quality tested garments
Unique collection with creative designs
Delivering bulk orders in a stipulated time period
Experienced professionals
Sound management ethics
1.3 VISION
Our Vision is to:
1.
See ourselves as the top sellers of this specialty line and open up EBO’S
across delhi/NCR.
2.
Have a solid e-commerce network for online trade.
Pearl academy of fashion
Page 11
[Type the document title] 2012
1.4 MISSION STATEMENT
Our focus is on selling our product lines to be amongst the top selling
companies which haven’t entered the Indian market.
Thus, we are focusing on the surfing industry experience to identify products
that attract consumers to specialty stores.
1.5 USP
Our company’s main attraction will be the different fabrics that we are
dealing with. we will deal with different fabrics and create new designs.
Use specialized machines for the production of the garments as we want to
de-skill the operations.
1.6 OBJECTIVE
1.
Provide specialty surfing stores in New Delhi with top quality activewear products.
2.
Develop and manufacture new products and create brand awareness.
3.
Develop and expand a sales force throughout Delhi/NCR.
4.
Develop products that will attract our buyers and sell to consumers
5.
Develop a solid e-commerce market and to maximize our profit margin
6.
Internal trade fair visits.
7.
Value realization of our garment.
8.
Create a Range of designs:
We will create a range of designs for our buyers and buying office people for all
the seasons. Doing this will help us with getting buyers, making contacts and
placing ourselves in this industry. When we will attend the internal trade fairs
and trade shows we will display the range that we have made for our company.
This will be of great help to attract the attention of many.
1.7 PRODUCT RANGE
In pub-lick limited we will be manufacturing tee shirts, shorts, and sweat shirts.
Our main production is going to be for the export markets but we will be doing
domestic markets as well. We will do job work for other big companies as well.
Pearl academy of fashion
Page 12
[Type the document title] 2012
But mainly we will deal in leisure wear clothing and be the manufacturers of
surf wear apparels.
1.8 CONCEPT DESCRIPTION
The collection includes both surfing and active-wear clothing lines.
The clothing lines can be broken down into five segments: Surfing,
Recreational, Fitness, Speed (Cycling), Leisure, And Extreme Skaters. All
of this will be in vibrant shades and some-what unusual colors with more of
styling that is followed in the west. Pub-Lick Garments specialises in bringing a
range of completely new attire with a modern and Funky look with the use of
fabrics like cotton, Cbp, Viscose, Cotton Slub, Pique etc. In future our
organization will be specialized in Printed apparels as well with different
printing styles like Flock Printing etc. The Purpose here is to provide the
customers with fashionable yet affordable apparels ranging from small-to-plus
sizes. The Company’s philosophy from the beginning has been to offer the
highest quality products offering on the price of its worth and the best customer
service available. Pub-Lick Garments will leverage their individual sports
passions for the greater good of the company as well as for all sports-active
people and their lifestyles.
1.9 ORGANIZATION LEGAL BUSINESS DESCRIPTION
PUB-LICK GARMENTS has been founded as an apparel manufacturer in
Sports and Active wear. All operations, from manufacturing to administration to
marketing strategies, take place in the factory.
The location of the manufacturing unit is Najafgarh Industrial Area, 62 Rama
Road. The unit is in the area of 4000 square feet.
CHAPTER 2
Pearl academy of fashion
Page 13
[Type the document title] 2012
CHAPTER2
2. INDIAN APPAREL INDUSTRY
The Indian textile and apparel industry has witnessed tremendous growth in the
last 2 decades and its market size today stands at INR 154250 crores. India has
positioned itself as a manufacturing destination with cheap labor, cotton-based
raw material and easy access to US and Europe markets. While textile and
garment exports have been growing at an average pace of 8 percent, it is the
domestic market will grow @ 13.5 %.
2.1 SCOPE OF DOMESTIC MARKET
A number of factors are expected to fuel the growth of the domestic market in
spite of the many challenges faced by this industry. Growth drivers include
increased incomes, high growth of GDP leading to rapid urbanization, growth
of organized retail with the entry of a large number of domestic and
international players, and a growing awareness of global trends along with the
need to look fashionable.
2.1.1 PRODUCTION
The production of apparel in India was, until recently, reserved for the smallscale industry (SSI) sector, which was defined as a unit having an investment in
plant and machinery equivalent to less than $230,000.
2.1.2 COMPETITIVE POSITION OF INDIA’S TEXTILE AND
APPAREL INDUSTRY
India’s share of global exports of textiles and apparel increased from 1.8
percent in 1980 to 3.3 percent in 1998. However, India’s export growth was
lower than that of most Asian countries during that period. The study identifies
a number of competitive strengths of the Indian textile and apparel industry.
2.2 GOVERNMENT POLICIES AFFECTING THE INDUSTRY
As India steps into an increasingly liberalized global trade regime, the GOI has
implemented several programs to help the textile and apparel industry adjust to
the new trade environment. On November 2, 2000, the GOI unveiled its
National Textile Policy (NTP) 2000, aimed at enhancing the competitiveness of
Pearl academy of fashion
Page 14
[Type the document title] 2012
the textile and apparel industry and expanding India’s share of world textile and
apparel exports to 10 percent by 2010 from the current 3-percent level. The
study identifies the following measures taken by the GOI to achieve these
objectives:
1.
Under the NTP 2000, the GOI removed ready-made apparel articles from
the list of products reserved for the SSI sector. As a result, foreign firms
may now invest up to 100 percent in the apparel sector without any
export obligation.
2.
The GOI grants automatic approval within 2 weeks of all proposals
involving foreign equity up to 51 percent in the manufacture of textile
products in the composite mills and in the manufacture of waterproof
textile products.
3.
On April 1, 1999, the GOI implemented the Technology Up gradation
Fund (TUF) to spur investment in new textile and apparel technologies.
Under the 5-year $6 billion program, eligible firms can receive loans for
upgrading their technology at interest rates that are 5 percentage points
lower than the normal lending rates of specified financial institutions in
India. According to GOI officials, this interest rate incentive is intended
to bring the cost of capital in India closer to international costs.
4.
The GOI created a $16 million “cotton technology mission” to increase
research on improving cotton productivity and quality.
5.
EOUs and composite mills that produce yarn for captive consumption are
exempt from the GOI’s hank yarn obligation, which requires each
spinning mill to produce 50 percent of its yarn for the domestic market in
hank form(80 percent of which must be in counts of 40s and lower) for
use in the handloom sector. The GOI plans to reduce the hank yarn
obligation from 50 percent to 30 percent for all other spinning units.
2.3 GROWTH OPPORTUNITIES
India, with a population of 1 billion people, has a huge domestic market. India’s
middle class, currently estimated at 200 million, is projected to expand to
include nearly half the country’s total population by 2006. Based on purchasing
power parity, India is the fourth-largest economy in the world, has the thirdlargest GDP in the continent of Asia, and is the second-largest economy among
emerging nations. India is also one of the fastest growing economies of the
world. Although the disposable income of the majority of the Indian population
is low, as the Indian economy grows, more consumers will have greater
discretionary income for clothing and other purchases after meeting their basic
needs.
http://www.usitc.gov/publications/332/PUB3401.pdf
Pearl academy of fashion
Page 15
[Type the document title] 2012
url:
http://www.google.co.in/imgres?q=indian+textile+industry+and+apparel+industry&um=1&hl
=en&sa=N&biw=1280&bih=564&tbm=isch&tbnid=7K_yn21rawMZWM:&imgrefurl=http://
www.fibre2fashion.com/industry-article/8/782/india-textile-and-apparel-trends20075.asp&docid=DFCZkmQpRn-2lM&w=385&h=316&ei=ZJCETqfbEYXJrAeHo3HDA&zoom=1&iact=rc&dur=687&page=1&tbnh=105&tbnw=128&start=0&ndsp=23&ved
=1t:429,r:0,s:0&tx=63&ty=59
Pearl academy of fashion
Page 16
[Type the document title] 2012
2.4 ABOUT THE COUNTRY WHERE PUBLICK GARMENTS WILL EXPORT OUR
GARMENTS:
Background of USA
The United States of America (also referred to as
the United States, the U.S., the USA, or America) is a federal constitutional
republic comprising fifty states and a federal district. The country is situated
mostly in central North America, where its forty-eight contiguous
states and Washington, D.C.,
the capital
district,
lie
between
the Pacific and Atlantic Oceans, bordered by Canada to the north and Mexico to
the south. The state of Alaska is in the northwest of the continent, with Canada
to the east and Russia to the west across the Bering Strait. The state of Hawaii is
an archipelago in the mid-Pacific. The country also possesses several
territories in the Caribbean and Pacific.
At 3.79 million square miles (9.83 million km2) and with over 311 million
people, the United States is the third or fourth largest country by total area, and
the third largest both by land area and population. It is one of the world's
most ethnically diverse and multicultural nations, the product of largescale immigration from many countries. The U.S. economy is the world's largest
national economy, with an estimated 2010 GDP of $14.7 trillion
(23% of nominal global GDP and 20% of global GDP at purchasing power
parity).
United States has operated under a two-party system for most of its history .
Democratic Party, founded in 1824, and the Republican Party, founded in
1854.However third party was operated by the name of Progressive in 1912.
2.4.1 DEMOCRATIC PARTY:
Democratic Party is considered center-left or "liberel"
2.4.2 REPUBLICAN PARTY:
The Republican Party is considered center-right or "conservative"
2.4.3 BARACK OBAMA:
He is the winner of the 2008 presidential election & the 44th U.S. president
Pearl academy of fashion
Page 17
[Type the document title] 2012
2.4.4 DEMOGRAPHICS
Demographics of the United States Includes
Race/Ethnicity (2010)
White
Black/African American
Asian
American Indian and Alaska Native
Native Hawaiian and Pacific Islander
Other
Two or more races
Hispanic/Latino (of any race)
Total
63.7%
12.6%
4.8%
0.9%
0.2%
6.2%
2.9%
8.7%
100%
 The 2010 U.S. Census reported 308,745,538 residents; the U.S. Census
Bureau's Population Clock projects the country's population now to be
313, 232, 044, including an estimated 11.2 million illegal immigrants.
 Third most populous nation in the world, after China and India
 California & Texas are the most populous states and New York is the
most populous city
 Population growth rate is 0.98%, significantly higher than those of
Western Europe, Japan, and South Korea
 Urban population – 82%
2.4.5 RELIGION







Protestants – 51.3%
Roman catholic – 23.9%
Mormon – 1.7%
Jewish – 1.7%
Muslim – 0.6%
Others – 2.5%
No religious affiliation – 12.1%
Pearl academy of fashion
Page 18
[Type the document title] 2012
2.4.6 LANGUAGE
Languages (2007)
English (only)
225.5 million
Spanish, incl. Creole
34.5 million
Chinese
2.5 million
French, incl. Creole
2.0 million
Tagalog
1.5 million
Vietnamese
1.2 million
German
1.1 million
Korean
1.1 million
 English is the de facto national language.
 80% of the population aged five years and older spoke only English at
home.
 Spanish, spoken by 12% of the population at home, is the second most
common language and the most widely taught second language
2.4.7 EDUCATION
 American public education is operated by state and local governments,
regulated by the United States Department of Education through
restrictions on federal grants.
 Children are required in most states to attend school from the age of six
or seven (generally, kindergarten or first grade) until they turn eighteen
(generally bringing them through twelfth grade, the end of high school)
 The basic literacy rate is approximately 99%.
 Education expenditure – 5.5% of the GDP (2007)
Pearl academy of fashion
Page 19
[Type the document title] 2012
2.4.8 CULTURE
 American cultural icons: apple pie, baseball, Levi’s and the American
flag
 The United States is a multicultural nation, home to a wide variety of
ethnic groups, traditions, and values
 Mainstream American culture is a Western culture largely derived from
the traditions of European immigrants with influences from many other
sources, such as traditions brought by slaves from Africa.
 More recent immigration from Asia and especially Latin America has
added to a cultural mix that has been described as both a homogenizing
melting pot and a heterogeneous salad bowl.
 The United States has the highest individualism score
 Americans' self-images, social viewpoints, and cultural expectations are
associated with their occupations to an unusually close degree
Pearl academy of fashion
Page 20
[Type the document title] 2012
2.5 SWOT ANALYSIS
STREGNTHS:
1.
First-Movers Advantage
2.
Innovation and Creativity Catering to the teens, kids, tweens, which have
been considered to spend the most on Garments according to statistics.
3.
Ability to manipulate the Prices.
WEAKNESS:
1.
Customer’s non-acceptance to the New Trend
2.
No actual Utility of the merchandise in terms of Surf wear, Skater’s wear
as the above sports are not that popular in our country.
3.
Existing Brands have captured a definite market share, so it might not be
easy to change people’s preferrences.
OPPURTUNITIES:
1.
Eagerness of Youth to be different and be exclusive in order to standout
in their environment.
2.
Popularity of the same in the west will assure people to be adaptable.
THREATS:
1.
Entry Of Brands like Billabong, Cult, Quick Silver etc. in the Indian
Market
2.
Plagiarism
3.
Competetive Prices of the Existing Brands.
4.
Surplus Garments of the above brands sold in the unorganised market like
sarojini nagar, palika bazar, etc.
Pearl academy of fashion
Page 21
[Type the document title] 2012
2.6 5 Q MODEL
Q1. WHAT IMPORTANT CUSTOMER’S PROBLEM CAN WE SOLVE?
ANS. As our brand is all about surf wear and this is something which is still not
available in India so we want to get something exclusive and nice for the public
as the youth has always been very inspired by the west and this concept and
clothing still has not come to Indian market from the west. So the style is going
to do wonders and is going to fulfill the youths demands. People will be able to
buy clothes which will be distinct from the existing market collection, i.e.
innovation will facilitate. The clothing line will in itself be a trend setter for the
Indian market .We will have nice printing done on the tees and the shorts, the
design element is something we are going to add on to while we make this
brand work.
Q2. HOW ARE WE GOING TO DO IT?
ANS. We are going to put up an export garment factory which specializes in
products like this. Our competitor export house is going to be Adigear and
orient fashion because they make sportswear garments. The brands to which we
are going to cater to in exports are going to be billabong, quicksilver etc.
We will supply to these companies and while doing this we are going to make
the range of products for our store as well. We will open up a store in these
areas like Bungalow Road, Vasant Vihar Market where the public visits in the
large quantities and the major quantity of youths are present there.
We will seek out feedback from our customers (teens and young adults)
to develop a successful clothing line that meets their needs and tastes. In this
way, we shall develop a niche market for our unique apparel(bags, beanies, hats
and wallets). We would maximize our profits by selling through the Internet.
Further we would maintain low overhead costs by monitoring and scheduling
production. Eventually, we will implement a successful marketing campaign to
inform the existing clientele and the public of our new image, thereby building
brand image through marketing.
Pearl academy of fashion
Page 22
[Type the document title] 2012
Q3. HOW MANY CUSTOMERS ARE WILLING TO BUY FROM US?
ANS. Our primary target market will be: family-oriented consumers,
teenagers that want to buy clothes to match current trends. Our target
markets are teens, young adults and the health and fitness enthusiast. Direct
mailing ads/coupons with priority codes is one of the most cost-effective
ways to reach potential retail store customers.
Q4. WHY CAN ONLY WE PROVIDE THE SOLUTION?
ANS. As this is going to be a new concept and we will be dealing with buyers
who are only looking out for such garments and designs that we will have an
idea of all details of the brands and the detailing that they expect out of us. So
that we can always implement that in our store and make it as a Usp. Since we
are bringing something new to the market , so its freshness and exclusivity will
lure people to wear something unique in its kind.
Q5. HOW CAN YOU DEFEND IT AGAINST OTHERS?
ANS. We’ll patent our Brand Name.Moreover by not compromising on quality.
Offering Prices with huge Margins initially and lowering it down as more
players or brands enter the same market
Pearl academy of fashion
Page 23
[Type the document title] 2012
2.7 PEST ANALYSIS
POLITICAL
1.
EXPORT-IMPORT POLICY
The GOI’s EXIM policy provides for a variety of largely export-related
assistance to firms engaged IN the manufacture and trade of textile products.
This policy includes fiscal and other trade and investment
incentives contained in various programs, as discussed below.
2.
DUTY ENTITLEMENT PASSBOOK SCHEME(DEPS)
DEPS is available to Indian export companies and traders on a pre- and postexport basis. The pre-export credit requires that the beneficiary firm has
exported during the preceding 3-year period. The post-export
credit is a transferable credit that exporters of finished goods can use to pay or
offset customs duties on
subsequent imports of any unrestricted products.
3.
EXPORT PROMOTION CAPITAL GOODS (EPCG) SCHEME
The EPCG scheme is available to export companies and traders who provide the
GOI with information on the type and value of capital goods they are importing
and the exports they expect to produce using those imports. Depending upon the
level of the export commitment at the time of import of goods, the GOI
provides exporters with a license
allowing them to import capital goods duty-free
ENVIROMENTAL:
4.
Firstly in this section we study the over all environment of india. Which
is fast moving. The trends have changed tremendously.
5.
Government policies have changed the way labours think about their
working patterns. Government has incorporated schemes like naroga
which gives the workers more incentives to work in the agricultural
sectors. So the labors are moving toward their villages and there is a
deficiency of 20% labors in the required markets catering to our area.
Pearl academy of fashion
Page 24
[Type the document title] 2012
6.
Infrastructural developments in terms of malls, shopping complexes and
organized markets has changed the way of thinking by the people looking
for employment in New Delhi/Ncr.
7.
Moreover the cost of living has increased thereby leading to higher per
capita income required in order to earn a living.
SOCIAL
The customers need to be style conscious has been seen in the recent years and
anything that would add a distinctive feature into the customers personality
would tempt him to GPO out of the way and explore the latest fashion.
So, in order to fulfill such need our brand or the type of fabrics and fits that we
would deal in will be a lucrative offer to look forward to. Moreover, seeing the
customers attraction towards the west culture is another indication towards the
acceptance of our idea.
TECHNOLOGICAL
We would get involved in trying to de skill the operation. For doing this we will
get in more automated and advanced technology in our business. For example,
we will get cad plotter introduced in our business.
2.8 LEGALITIES
2.8.1 VAT-The current vat charged is 12.5%
2.8.2 FOR REGISTERING YOURSELF AS A SSI UNIT & UNDER
MSME ACT:
There is a SSI Registral which is a district industrial centre.
There they have forms which you have to fill and submit which have the details
of the land where you will be planning to put up the business.
1.
Which place is it?
2.
What is the electricity consumption of your industry?
3.
What is the nature of your business?
Pearl academy of fashion
Page 25
[Type the document title] 2012
4.
Within a weeks time they give you the ssi number if they are satisfied?
2.8.3 HOW TO GET REGISTERED WITH A PAN NOS:
For income tax purpose there is an Application form which is available
You have to fill in a request for applying for a pan card.
FILL IN ALL THE DETAILS
If they are satisfied with all the details that have been filled in by you the pan
number will be given to u in 15days to 30 days.
EXPORT REGISTRATION:
for getting yourself registerd as an export unit you need to fill in a form ang
give all the informations like: production name, type of industry, ssi number,
pan nos, land nos etc.
2.8.3 EXCISE DUTY:
Excise duty is different for different commodities. which is fixed by centre
bank. As per norms and budget they are changing every year.
Statement given by the finance minister “With this relief a unit will continue
to be eligible for SSI exemption in 2011-12 even if it had a turnover based
on retail sale price of Rs 8.90 crore in the current year”
Rs.
Lakhs
400
1
Maximum turnover of taxable products permitted
during the year ending 31-03-2011 for being eligible to
SSI benefit during the year ending 31-03-2012
(Normal SSI)
2
Limit of SSI exemption during the year ending 31-03- 150
2012
1
2
3
For Readymade garment – SSI Unit
Rs.
MRP of the readymade garment
Less: Abatement @ 55 %
Taxable value of the product
1000
550
450
Pearl academy of fashion
(a)
(b)
(c)
Page 26
[Type the document title] 2012
Maximum permissible turnover of taxable products during the
year ending 31-03-2011 as per next table.
CHAPTER 3
3. (MARKET RESEARCH, MARKETING MIX, OTHERS)
3.1 TARGET CUSTOMER
The target audience is college going girls and boys and young professionals
catering to the upper and higher middle class as the awareness for brands are
increasing the most among this segment.
3.2 COMPETITIVE EDGE
Brands have become an increasingly significant factor in apparel and footwear.
Many consumers have less time to shop and are spending their disposable
income more carefully. Established brand names, with their quality image,
make the shopping experience easier and faster for many consumers. For
manufacturers, brands build consumer loyalty, which translates into repeat
business.
PUB-LICK GARMENTS competitive advantage is to provide its consumers
quality and affordable Active wear and sports wear garments. Another
competitive advantage is the company's marketing strategy. Moreover,
introducing such a speciality line grants us the FIRST MOVERS ADVANTAGE.
Our competitive edge comes from the advantage of having established
relationships with Export Houses and Buying Offices.
3.3 MARKETING MIX CONSISTS OF THE 4 P’S
PRODUCT MIX:
Our production consists of tee shirts, shorts and shirts. All our garments are
made for leisure wear. They all have some design feature to add on to the look.
We will focus on the production of tee shirts with nice printing and designing
element on it. shorts will also be one attraction in our store as we want to create
a nice slim fit to our garment. Our fabrics will be of latest technology.
Men
Jeans
Pants
Women
Toddler Boys
Jeans
Jeans
Jeans by Curve Id Tops
Pearl academy of fashion
Boys - 4 - 7 yrs
Jeans
Tops
Boys -8 - 20 yrs
Jeans
Tops
Page 27
[Type the document title] 2012
Cords
Tees & Fleece
Shirts
Tops
Sweaters
Jackets
Jackets
Accessories
Jackets
Jackets
Accessories
PRICE MIX: the price strategy which we use is cost and profit strategy.
PRODUCTS PRIME
OVERHEADS MARK UP
COST(INR)
T-SHIRT( 134.29
7.83
26.858
PIQUE
100%
COTTON)
T –SHIRT 91.71
5.49
FOB(INR)
168.91
18.342 115.547
Sweat shirt
92.436
6.34
18.4872
117.6
DENIM
SHORTS
T SHIRT
265.66
23.52
53.132
342.31
108.83
5.63
21.766
136.226
Cotton kurti 151.08
7.75
30.216
189.05
AVERAGE 140.66
51.28
28.13
COST
Our target pricing will b INR 200 to 400 for our buyers
220.08
PLACE MIX
1.
We will start the manufacturing in delhi. kirti nagar as we have a factory
of our own so we don’t have to incur on the rent expense. There are
certain tax benefits that we can enjoy with the delhi ncr exports and
imports rules and regulations.
2.
We will get easy availability of fabrics as in the ncr regions there are easy
available knitting mills and dyeing units. Our factory is very close to the
kirti nagar metro station so the employees will have the accessibility of
the public transport to make it easy to reach the destination. The factory is
in delhi and not in the ncr so we will get merchandisers and designers
from delhi itself as they will not want to travel so much.
Pearl academy of fashion
Page 28
•T-SHIRT
•SHORTS
•SWEATSHIRTS
•POLO NECK T-SHIRT
BUYERS
•FABRIC VENDORS
•ACCESSORIES
VENDORS
•MACHINE SUPPLIERS
•WASHING
OUTSOURCE
•TRIMS VENDORS
PUB-LICK
SUPPLIERS
[Type the document title] 2012
•BILLABONG
•QUICKSILVER
•PUB-LICK OUTLET
3.4 DISTRIBUTION NETWORK:
MANUFACTU
RER
DISTRIBUTION
RETAILOR
MAJOR CHAINS
DIRECT
MARKETING
FACTORY
OUTLET
Multi channel distribution network in which we are going to supply to various
channels and at the same time do direct marketing and have constant
connections with our buyers.
PROMOTION MIX
We will start our brand exposure with the help of Advertisement. Indiamart.com
is a site which helps new entrepreneurs to evolve in the market. Just dial these
Pearl academy of fashion
Page 29
[Type the document title] 2012
days is a nice medium to have your product launched in the market or with the
help of just dial we can get an advantage to know many other brands and
customers. I will get myself registered with the tradekey.com.
There is going to be a perfect blend of simplicity with a unique feature added
on to the garment it can be in the fabric, the fitting or the prints on it. We will
come out with great promotional plans and ideas
1.
2.
3.
4.
TRADE SHOWS: Company representatives will attend and participate
in several trade shows such as
INTERNET: Initially PUB-LICK plans to use social networking website
like facebook and twitter for its advertisement and marketing and
promotion. And when the brand will establish a presence in the market
then company will be developing its own website. Plans are underway to
develop a professional and effective site that will be interactive and from
which sales will be generated worldwide. In the future, this is expected to
be one of the company's primary marketing channels.
TRADE JOURNALS
EXPORT COUNCILS.
3.5 COMPETITOR ANALYSIS
GAP
Founded in 1969, they are a specialty retailer offering clothing, accessories and
personal care products for men, women, kids and babies. Gap has
3100 company operated stores and 200 franchise stores.
Gap Inc. acquired Banana Republic in 1983 which is a brand that
is known for modern styles which are available at affordable
prices.
Old Navy was founded in 1994. They make garments and accessories for the
whole family, from newborns to adults. The quality products are made available
to the customers at a good value.
Piperlime was launched in 2006 and is an online fashion boutique. They offer a
great range of products for women, men and kids.
Athleta was acquired by Gap Inc in 2008 and is a brand for ultimate
performance apparel and gear for women.
VF Corp
Pearl academy of fashion
Page 30
[Type the document title] 2012
It is an American apparel corporation which founded
in 1899. They were initially selling gloves and
mittens, moving into the undergarments business and
started expanding with purchase of other brands. The
first brand acquired by them was Lee. Then they acquired Blue Bell Inc, which
was the owner of brands like Wrangler and JanSport. This acquisition made VF
Corp the largest publicly held apparel company. They now own a number of
brands like 7 for all Mankind, Nautica, Rock & Republic, The North
Face, Eastpak, Timberland, etc.
They have presence in over 150 countries and their merchandise is sold
through 47,000 retailers in all channels of distribution, they also operate through
1000 company owned stores worldwide.
BILLABONG INTERNATIONAL
Founded in Australia in 1973, the company sells
surf wear & accessories, skateboard clothing &
hardware, wetsuits & technical water sport accessories.
QUICKSILVER
Founded in Australia in 10970, the company
its headquarters in California, USA. They are
of the largest manufacturers of surfwear and other boardsport
equipments and accessories. They have a line of apparel for young
under the brand name Roxy. They also own DC and Hawk brands.
Pearl academy of fashion
has
one
related
women
Page 31
[Type the document title] 2012
3.6 FABRICS RANGE
COOLMAX
CoolMax, made by Dupont, is a HighPerformance Fabric that can help the athletic
Performance of the people who wear it.
CoolMax® moves sweat away from the body to
the outer layer of the Fabric, where it dries faster
than any other Fabric. In moisture management
tests, garments made with CoolMax ® dried
almost completely in 30 minutes. Cotton, by
comparison, remained wet by nearly 50%. Sweat saps your strength. Better
evaporation means you spend less energy to cool your body, which increases
your Performance and endurance. And because CoolMax® has better
breathability, nothing's more comfortable to wear. Look for CoolMax® in
shirts, socks, running tights, bodywear, sports bras, even career apparel. Not to
mention, in the wardrobes of some of the world's premier athletes.
POLARTEC POWER DRY
Polartec Power Dry keeps skin dry. Dries quickly. Very breathable base layer
for all activities.
Polartec Power Dry Fabrics are designed to keep
your skin dry when you sweat. All Fabrics in this
series feature a patented bi-component knit
construction that uses different yarns on either side
of the Fabric. This creates two different surfaces:
one that is optimized to move moisture away from
the skin, the other to dry quickly. A high sun
protection factor is available on most Fabrics in this
series. Polartec® Power Dry® Fabrics are 100%
polyester, highly breathable, and are ideal as the
base layer for all outdoor sports, either as underwear
or technical shirting.
POLARTEC CLASSICS:
Polartec Classic 100, Classic 200, and Classic 300
Pearl academy of fashion
Page 32
[Type the document title] 2012
Fabrics are the reference standard for lightweight warmth and breathability.
These Fabrics have been the primary insulation layer of choice among
experienced outdoor enthusiasts for nearly two decades. The 100% polyester
velour construction creates air pockets that trap air and retain body heat.
Maintain their insulating ability and non-pilling appearance after repeated
laundering.
These Fabrics are available in a range of weights to provide the right level of
insulation for most outdoor activities.
TORAY 12
Develops airfine Fieldsensor which is made from a polyester filament yarn
which has the grooves help the fabric absorb sweat quickly and disperse it along
the surface. Company claims that the moisture absorbing and dispersing
property of thenew material is twice a great as its former Fieldsensor fabric.
POLYESTER COOLMAX10
Has been claimed to increase wearer comfort through rapid removal of
perspiration by capillary. Also it has good wicking properties and non
absorbency. Coolmax and thermostat polyester fibers used in two fold garments
claimed to wick moisture away from the skin (the former) and to maintain
warmth
POLYPROPYLENE
Polypropylene cannot wick liquid moisture. However, moisture vapour can still
beforced through polypropylene fabric by body heat. Polypropylene has the
advantageof providing insulation when wet But it can melt at medium heat in
home dryers.Also, polypropylene is more oleophilic (oil absorbing) than
polyester Consequently, ithas a greater tendency to attract and hold oily bod)
odours even more. Polypropyleneis claimed to be a proved performer in
moisture management due to its hydrophobic nature and has very good thermal
characteristics, keeping the wearer warm in cold weather and cold in warm
weather
NYLON
Nylon fiber characteristic include lightweight, high strength and softness with
good durability. Nylon also quickly when wet. Nylon is good fabric choice
Pearl academy of fashion
Page 33
[Type the document title] 2012
when combined with PU coatings. Nylon has a much higher moisture regain
than polyester and therefore has better wicking behaviour. It is most often used
in tightly woven outerwear, which can trap heat because of low air permeability.
It is also used in more breathable knitted fabrics, where it can perform well.
However, it is much more expensive than polyester and is therefore only used in
premium applications such as swimwear and cycling wear. Also, because of its
higher moisture regain, it dries more slowly than equivalent fabrics made from
polyester. Teijin DuPont Nylon has developed a waterproof fabric, polus-Ex
that is permeable to moisture. The material is made by laminating a multiporous
film to a nylon fabric and a moisture permeability of 8000 g/m
RAYON
The viscose rayon is not preferred next to skin as it holds water (13 % moisture
regain) in sportswear. The outer layer of knitted hydrophilic portion of the twin
layer sportswear can be of viscose rayon, which absorbs 2-3 times more
moisture than cotton. The wicking behavior improves by incorporation of some
hydrophobic finishes.
WICKING JERSEY
A wicking jersey material perfect for athletic and outdoor wear. Wicking fabrics
pull moisture away from the body to quickly evaporate it, leaving garments dry
and warm.
Uses: Athletic wear, jacket lining, hiking shirts.
Width: 60"
cost:$12.95 / yd
COTTON LYCRA
Lycra/cotton blend for active gear. The comfort of cotton with the fit of Lycra.
Cost: $11.95/yd
Width: 60"
WICKING LYCRAS
Wicking is the act of pulling moisture and sweat away from your skin and
dispersing it throughout a material; a critical attribute in high performance base
Pearl academy of fashion
Page 34
[Type the document title] 2012
layers. The fiber surface is treated to make it hydrophilic, while the core
remains hydrophobic. The combination lifts water away from the skin toward
outer clothing layers without soaking the cloth
Width: 58-60" (unless otherwise noted)
Price: $12.95/yd
REGULATOR (WAFFLE) FLEECE
A single sided thin fleece with a smooth jersey face and a textured grid backing.
This fleece is perfect for a base layer. It is a lightweight fleece that is both warm
and highly breathable. The fleece squares trap body heat while also wicking
moisture to the surface for faster drying time. Slight mechanical stretch.
Width: 54"
Colors: Black, Teal, Sunset, Garden Green
Cost: $9.95/
Pearl academy of fashion
Page 35
[Type the document title] 2012
CHAPTER 4
4.HR DEPARTMENT
Particularly in the garment manufacturing unit cause this segment of unit is yet
to be in the phase of getting professional for this aspect of management and the
problems in this industry are mostly from the labour point of view and are a bit
different then the other forms of industry. So, from this point of view special
understanding of hr procedures and practices will be given special attention.
4.1 HUMAN RESOURCE MANAGEMENT
Human resource management (HRM, HR) is the management of an
organization's employee. While human resource management is sometimes
referred to as a "soft" management skill, effective practice within an
organization requires a strategic focus to ensure that people resources can
facilitate the achievement of organizational goals. Effective human resource
management also contains an element of risk management for an organization
which, as a minimum, ensures legislative compliance.
Human resources management involves several processes. Together they are
supposed to achieve some specific goal. These processes can be performed in an
hr department, but some tasks can also be outsourced or performed by linemanagers or other departments. When effectively integrated they provide
significant economic benefit to the company.
4.1.1 OBJECTIVES:
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
Recruitment (sometimes separated into attraction and selection)
Induction, Orientation and on boarding.
Skills management
Training And Development
Personnel administration
Compensation in wage or salary
Time management
Employee benefits administration
Personnel cost planning
Performance appraisal
Labor relations
Pearl academy of fashion
Page 36
[Type the document title] 2012
url: http://en.wikipedia.org/wiki/human_resource_management
4.2 RECRUITMENT AND SELECTION PROCESS:
1.
The Human Resource plan follows the Recruitment and Selection process
for hiring the employees.
2.
Recruitment is placing the Right person in Right place at Right time.
3.
Vacancy is known in two situations (generally):
4.
An employee leaves and there is a vacancy created
5.
Business Growth
6.
The Vacancy is intimated to the HR plan by the concerned technical
department.
Ensure that judgment of abilities, experience and qualifications is made
the requirements of the position in question.
7.
4.2.1 TASK ANALYSIS:
1.
JOB DESCRIPTION :
(write the staff and their work experience should be what)
2.
1.
2.
3.
4.
5.
SELECTION : Select the candidate being objective and unbiased.
Choose the person who best fits our person specification.
Short listing:
Interviews
Candidate assessments:
Making a Job Offer:
Orientation
4.3 FACTORY COMPLIANCE:
1.
The HR department is the one which is responsible for looking after all
the compliance requirements as stated by its buyers. Each buyer has its
own compliance requirements which must be taken care of by the factory.
2.
The human resource department informs the buyer about the various
practices, policies and infrastructure of the company, all the labor laws
Pearl academy of fashion
Page 37
[Type the document title] 2012
which are Being covered under the National or Regional Labor Laws: the
wage plan for three categories of workers.
4.4 PERFORMANCE APPRAISAL
If we want to apprise the employee who works in the organization we will use
some techniques to appraise them.
With the help Performance appraisal we can evaluate an employee’s job
performance and then act in accordance for his growth and development. This
acts as a motivator for the employees’ growth. It is the process of obtaining,
analyzing, and recording information about the relative worth of an employee to
the organization. Performance appraisal is an analysis of an employee's recent
successes and failures, personal strengths and weaknesses, and suitability for
promotion or further training. It is also the judgement of an employee's
performance in a job based on considerations other than productivity alone.
4.4.1 OUR AIM FOR DOING PERFORMANCE APPRAISAL:
1.
2.
3.
4.
Give employees feedback on performance
Identify employee training needs
Document criteria used to allocate organizational rewards
Form a basis for personnel decisions:
1.
2.
3.
4.
5.
6.
7.
8.
salary increases
promotions,
disciplinary actions
Bonus, etc.
Provide the opportunity for organizational diagnosis and development
Facilitate communication between employee and employer
Validate selection techniques and human resource policies to meet federal
equal employment opportunity requirements.
To improve performance through counseling, coaching and development.
4.4.2 PERFORMANCE APPRAISAL TECHNIQUES
Some techniques which we will use in our unit for appraising our employees
will be.
1.
2.
3.
Human resource accounting.
Straight ranking method
Essay appraisal method.
Pearl academy of fashion
Page 38
[Type the document title] 2012
4.5 JOB DESCRIPTION:
A job description is a list that a person might use for general tasks, or
functions, and responsibilities of a position. It may often include to whom the
position reports, specifications such as the qualifications or skills needed by the
person in the job, or a salary range. Job descriptions are usually narrative,[1] but
some may instead comprise a simple list of competencies; for instance, strategic
human resource planning methodologies may be used to develop a competency
architecture for an organization, from which job descriptions are built as a
shortlist of competencies.
4.5.1
Cutter
Merchandiser
Education
Forecasting
assessment
analytical
Production
manager
Operator
Managing
employeed
Skill
responsibilty
Pearl academy of fashion
skill
responsibility
communication Designing
ability
Time management analytical
forecasting
salary
Page 39
[Type the document title] 2012
4.6 CONCLUSION:
Human resource is a most valuable asset in an organization. The value of this
business only when it gets out of order. Man made the machines but machines
have not made the man. Any organization, which manages its human resources
effectively, will have the competitive edge in business.
Technology would give us the accuracy but innovation and technology is only
possible by accommodating the work force. This is why particularly in garment
industry the human resource impact is going to be the most critical dimension, if
we want to stay visible in the market. It is therefore, important that not only the
HR managers has to play his role but line managers must be equally well
exposed to the basic signs of human resource management. This will give them
added advantage in managing work force effectively.
Labor laws- Why?
Labor laws are meant for protection of employees in industry. Therefore, its
basic knowledge is important. For this purpose, abstracts of all the relevant
labor laws shall be displayed on the notice board near time office. This will
remove any doubts in the mind of employees and shall create transparencies to
know their rights and duties, because most of the problems are due to ignorance.
Pearl academy of fashion
Page 40
[Type the document title] 2012
CHAPTER 5
5.PRODUCTION PLAN
5.1 FACTORY LOCATION
We plan to open up our PUB-LICK garment company which is and apparel
manufacturers in sports and active wear. All the operations are which start from
administration and end at manufacturing the goods are done under one roof.
The location we choose to start our unit is in the Najafgarh Industrial Area,
Rama Road. The unit is in the area of 400 square yard.
NAME OF THE COMPANY
LOCATION
PRODUCT DESCRIPTION
USP
FACTORY AREA IN
SQAURE METERES
CONSTRUCTED AREA
AVERAGE SAM
PUB-LICK GARMENTS
62 RAMA ROAD
T-SHIRTS, SHORTS
2 SHEDS OF 170 SQ. METERS EACH
CLEAR HALLS WITH COLUMNS IN
BETWEEN AND SIDES
25 MINS. FOR SHORTS AND 10
MINS. FOR T-SHIRTS
We have selected this location as this is a property which is already owned by
one of the partners Mr. Onkar Arora. At one point of time this factory was in
production of manufacturing of Rexene and as this land is not being used it is a
very good option to make use of the land which is there
5.1.1 COST OF THE LOCATION
Currently the cost of the location is 70,000 rs per square yard. So the cost of the
land becomes 70,000*4000=2,80,000,000
5.1.2 INVESTMENTS FOR PUTTING THIS UNIT:
For putting up this factory we are making and investment of approximately
65,00,000 in the resources then we will make some investments for hiring of
employees and giving them salaries. Certain investments will be made in the
trims, accessories department and the fabric store also in the form of raw
material.
Pearl academy of fashion
Page 41
[Type the document title] 2012
Our rent is being saved on to but we can always consider the opportunity cost.
5.1.3 FABRICATION:
We will also go in for doing job work for some other factories. As for sustaining
in this industry is very difficult in the initial stages. Job work helps us to make
contacts in the domestic market as well as with the export markets. It increases
and improves our horizon and the way we think about different perspectives. In
the garment industry mostly the payment is given after 2 months.
5.2 MACHINERY AND PRODUCTION PROCESS
5.2.1MACHINERIES OWNED BY PUB-LICK GARMENTS
In our company we are going to start with a minimum requirement of basic
machineries and as the time passes by we will further expand our business and
technology.
bartack
machine
snls ubt
dncs
dnls
snls
4-t o/l
kansai
multineedle
5-t f/l
sncs
dncs
feed of the arm
button hole
button attach
production
1
production
production
production
production
production
production
6
9
9
30
16
2
production
production
production
production
production
production
9
3
3
2
1
1
Sales
snls
snls ubt
dnls
dncs
feed of the arm
multi needle machine
3% 3%
16%
52%
16%
10%
Pearl academy of fashion
Page 42
[Type the document title] 2012
5.3
FLOW OF INFORMATION
MERCHANDISING
SAMPLING
• PRODUCTION
PLANNING AND
CONTROL
FABRIC STORE
SPREADING AND
CUTTING
INDUSTRIAL
ENGINEERING
SEWING FLOOR
FINISHING
FINAL AQL AUDIT
DESPATCH
Pearl academy of fashion
Page 43
[Type the document title] 2012
5.4 MERCHANDISING DEPARTMENT
1.
Get tech pack from the buyer
2.
Discussing pattern details with the pattern master and qc
3.
Getting pattern made if approved by or else making required changes
after discussing with the buyer
4.
Making the first protos and sending it to the buyer for approval
5.
Receiving comments on the first proto and making second revised proto
with changes
6.
Making of fit samples with the help of comments on the second protos
7.
Making of size set samples in accordance with the showroom samples
comments
8.
Taking approval on size set from buyer and sending it for qa check,
getting it signed by the company
9.
Qa head for the sealer sample.
10.
Sending pre- production samples to the buyers.
11.
Handing over of production file and sealer to the production department
for production.
Pearl academy of fashion
Page 44
[Type the document title] 2012
5.5 SAMPLING DEPARTMENT:
1.
As the file is sent to the sampling department, firstly first fit sample is
made.
2.
The sketch of the garment is sent to the pattern master who prepares the
pattern with the standard measurements.
3.
Three samples are sewn by highly skilled operators. One of them is sent
to the buyer, second to the buying house and third is kept in the export
house. This sample is made in ordinary fabric.
4.
Comments are received from the buyer. In case of any discrepencies,
second fit samples are prepared rectifying the errors occurred in the first
fit sample. In some cases there may be a request for a third fir sample.
5.
Once the buyer is convinced with the sample, request for the size set
samples is put forward. Three samples are prepared for each size. Usually
the buyer asks for certain sizes for this stage.
6.
Next, is the pilot sample (sealer sample). This sample is prepared with the
exact trims and accessories as asked, the thread, all are confirmed. All
required washing and packing as instructed is carried on. Once the sample
has been sealed by the buyer, it is now ready for bulk production. In case
of any changes, re-pilot is sent considering all comments.
Pearl academy of fashion
Page 45
[Type the document title] 2012
5.6 FABRIC STORE:
1.
Purchase order received by merchandiser
2.
fabric in-chare gets to know about the delivery schedule
3.
He studies the specification of the goods required.
4.
A list of suppliers is prepared
5.
Supplier is finalised
6.
First lot is sent for approval
7.
after its approval, bulk fabric is brought in-house
8.
Fabric is checked according to the 4 point system
9.
fabric is issued to cutting
5.6.1 MANPOWER
DESIGNATION
INCHARGE
HELPER
TOTAL
NUMBER
1
2
3
5.6.2 FABRIC CHECKING
4 point system was being followed. this implies
if the length of defected piece is:
0-3”
3-6”
6-9”
<9”
Pearl academy of fashion
1 point
2 point
3 point
4 point
Page 46
[Type the document title] 2012
5.7 CUTTING DEPARTMENT
1.
Grading, marker planning according to the order ratio in cad
2.
Issuing fabric from the fabric department in the form of challan
3.
Fabric relaxation
4.
Spread fabric lay as planned
5.
Cutting the fabric before wash
6.
Marker setting after receiving from cad dept pinning the pattern if
required
7.
Taking avg. from cad
8.
Placing the pattern on fabric
9.
Block chopping
10.
Folding and refolding of the block chopping pieces
11.
Cutting with plastic pattern from band knife machine
12.
Numbering of the pieces
13.
Defected pieces are removed and exchanged
14.
Bundling of the pieces
5.7.1 SOME SAFETY SPREADING PRECAUTIONS:
Make sure if the fabric is very deliacte, includes paper or cotton cloth in
between piles to avoid slippage marker is stuck on the top layer with the help of
cellotape.
Spicling is done for single piece cutting the lower most layer is stuck on the
table with cello tape the pinning is always done on the side allowances.
Pearl academy of fashion
Page 47
[Type the document title] 2012
5.8 PRODUCTION FLOOR
Sewing room is the main department of every export house. in this
department the raw material in the form of fabric and accessories is converted
into the final garment. pub-lick exports pvt ltd follows the traditional sewing
lines.
PRODUCTION
6 LINES
The Main work of the stitching floor is to stitch the cut pieces into
garments as per the buyer’s specifications.
The production department once is given all the details like the numbers of
operators that are needed, the batch for which the style needs to be installed, any
special machine that needs to be installed and the targets that they have to
achieve each day
So after such information’s are received by them they issue the cut parts from
the cutting and sorting section for the style or the garment.
1.
The Bundles are received from the cutting
2.
Bundles are opened and counted
3.
The bundles are fed into the sewing line
4.
Assembly line section
5.
End line inspection
6.
Audited by the buyers qa
7.
Garment sent to finishing department
Production system used in pub-lick is progressive bundle system assembly line.
Pearl academy of fashion
Page 48
[Type the document title] 2012
5.9 FINISHING AND PACKING DEPARTMENT
Washing to remove
spots and improve the
feel of the garment
Thread trimming
Initial checking
Spotting
Ironing
Measurement and
final checking
Packing
Tagging and folding
Pearl academy of fashion
Page 49
[Type the document title] 2012
5.10 QUALITY
The AQL room is the last process and again one of the most important steps in
the finishing process. Here, the garments are passed through a needle detector
machine. The garments are sent for checking if metal is detected in the garment.
Then the garments are checked according to aql level of 2.5.
Pcs. checked
2-50
51-90
91-150
151-280
281-500
501-1200
1201-3200
Defects
8
13
20
32
50
80
125
1.5
0
0
1
1
2
3
5
2.5
0
1
1
2
3
5
7
4.0
1
1
2
3
5
7
10
AQL room is a metal free zone and no metal objects are allowed inside from
here the garments are finally dispatched.
5.10.1 QUALITY DEPARTMENT WORK:
1.
Greige fabric checking.
2.
Inspection of fabric after dyeing or printing.
3.
Checking of lay, marker and patterns before cutting.
4.
Cut parts checked for measurement & notches
5.
In case of block embroidery, checking of embroidery and blocks before
recutting.
6.
Checking of recut patterns.
7.
Inline inspection and End line inspection.
8.
Inspection before wash and after wash
9.
Final inspection
10.
AQL
Pearl academy of fashion
Page 50
[Type the document title] 2012
As we will be an active player in the national & international garment market,
we lay prime importance of quality of garments manufactured by us. While
manufacturing products special emphasis is given to quality. Strict quality
control norms are followed by the team and while selecting, designing and
cutting fabric each procedure is monitored by professionals. To ensure the best
quality of garments an intensive inspection procedure is followed by us and it is
based on client requirement and satisfaction.
5.10.2TO CONDUCT QUALITY TESTS WE TAKE PROPER
MEASURES ON THE FOLLOWING PARAMETERS:
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
Fitting Test
Fabric Test
Shrinkage
Needle Detecting Test
Color fastness
Finishing Test
Color contrast
Tear strength
Flammability
Carton Drop Test
Pearl academy of fashion
Page 51
[Type the document title] 2012
5.11 SOURCING VENDORS FOR FABRICS AND TRIMS
MATERIAL
VENDOR
FABRIC
LOCAL VENDORS:
DHRUV GLOBAL
RICHA TEXTILES
AMBIKA KNITTING
OVERSEAS VENDORS
1.
NICE DYEING FACTORY LTD., MACAU,
CHINA
2.
PRABALAJI ENTERPRISES LTD.,
HONGKONG
YKK
LOCALLY SOURCED
ZIPPERS
INTERLININGS
PACKING
MATERIAL
CARTONS
AGARWAL POLYBAG & CARTONS, GANDHI
NAGAR
AGARWAL POLYBAG & CARTONS, GANDHI
NAGAR
YARNS &
THREADS
1.
1.
Pearl academy of fashion
VARDHAMAN YARNS AND THREADS
LTD.,URDUGHAR , INDIA
MADURA COATS PVT. LTD., GANDHI
NAGAR, INDIA
Page 52
[Type the document title] 2012
5.12 INNOVATIONS IN PRODUCTION:
In PUB-LICK GARMENTS we plan to come up with latest printing methods.
We plan to get our printing work outsourced.
We are coming up with surf wear garments which have a different fit and a style
feature attached with it.
The quality of fabric and garments is going to be kept in mind. We will not
compromise with the quality and the fit.
5.13 PEOPLE OUR ASSETS
Pub-lick believes that expert, experienced, dedicated team members and skilled
work force are our most important assets who work within a culture of “Speed
and Accuracy” helping the company to achieve desirable outcomes. The
company has a hierarchy where in is set the staff working in tandem with each
other, and developing the energies to meet and exceed customer expectations.
Pearl academy of fashion
Page 53
[Type the document title] 2012
5.14 MAIN LAYOUT
FEET
30 F
E
30 F
15 FEET
E
68
100 FEET
FEEET
T
5
FEET
E
E
T
TOTAL LAND AREA
LENGTH = 120FT
WIDTH = 30 FT
TOTAL AREA = 3600 SQ.FT
TOTAL COVERED LAND AREA
LENGTH = 100 FT
WIDTH = 30 FT
TOTAL AREA= 3000 SQ.FT
Pearl academy of fashion
Page 54
[Type the document title] 2012
5.15 ORGANISATION CHART
ORGANIZATION CHART
OWNER
Mr.Onkar Arora
FACTORY
MANAGER
MANAGER
SEWING
DEPT
ACCOUNTS
DEPARTMENT
CUTTING
DEPT
Miss Sumedha Mundra
FABRIC
DEPARTMENT
PRODUCTION
DEPT
DESIGNING
DEPARTMENT
MERCHANDISI
NG
DEPARTMENT
FINISHIN
G DEPT
THE ORGANISATION STRUCTURE:
A pub-lick garment consists of two partners Miss Sumedha and Mr Onkar.
Mr Onkar will assist the factory manager, accounts department and the fabric department
directly.
Factory Department head will be in charge of looking into the sewing, cutting,
production and the finishing department.
Miss Sumedha will directly look into the designing and the merchandising department
and be in constant contact with the heads of these departments.
Pearl academy of fashion
Page 55
[Type the document title] 2012
5.16 OPERATION BREAKDOWNS
5.16.1 OPERATION BREAKDOWN OF A SWEATSHIRT
s. no.
operation
1
2
3
4
shoulder attach
sleeve sides attach
sleeve top stitch
side attach
5
6
7
sleeve rib attach
neck binding making
neck binding tacking
8
neck binding attach
9
botton rib attach
The sweatshirt being a easy garment not having so many operation the smv of
the garment was 9.6 and 10 machines were allocated to the completeion of this
style.
5.16.2 OPERATION BREAKDOWN OF GIODARNO T-SHIRT
s.nos
1
2
3
4
5
6
7
8
9
10
11
operation name
side d/s
sleeve attachment to front
and back
neck facing join
neck facing attach to
body(run stitch)
neck facing binding
neck facing and finish
end closing at binder
side attach with a w/c label
bottom fold
sleeve fold
label attach
The t-shirt had reglun sleeves the typical part of this style. Other than that the
tee shirt was quiet simple to be made. The smv of this tee shirt was 8.05.
And could be finished in 9 machines.
Pearl academy of fashion
Page 56
[Type the document title] 2012
5.16.3 OPERATION BREAKDOWN OF UCB POLO NECK T-SHIRT
s. no.
operation
1
2
sleeve
rib attach to sleeve
3
4
6
7
8
9
10
11
placket
loop attach
front & back
shoulder attach
shoulder join at top stitch
sleeve attach
side tacking bottom & top side
side attach with wash care
lable
bottom hemming
12
13
14
15
16
17
18
collar attach
tape attach to neck
tape finish at neck with lable
main & size lable attach with
marking
sleeve opening o/l seam
tacking
end line check point
This was a polo neck t-shirt. The smv of this was 11.19 and 15 machines were
required to finish this garment.
Pearl academy of fashion
Page 57
[Type the document title] 2012
5.16.4 OPERATION BREAKDOWN OF KURTI
S.N
OPEATION NAME
O.
1
2
3
4
5
6
7
8
SLEEVE
ATTACH A BAND ON
OPENING
TOP STITCH ON THE BAND
TACKKIN ON THE SLEEVES
BAND
YOKE PREPARTION
ATTACH PIPING ON THE
NECK
TOP STITCH ON THE NECK
NECK FINISH (HEMMING)
9
COLLAR ATTACH ON THE
NECK
10
TOP STITCH ON THE
COLLAR
11
ASSEMBLY
12
ATTACH FRONT YOKE
WITH FRONT SIDE
13
SHOULDER ATTACH
14
SLEEVE ATTACH
15
BOTTOM FOLD
16
SIDE SLIT FOLD AND FINISH
17
BOTTOM FINISH
This garment was a cotton kurti. The smv of this garment was 11.8 and the
machines allocated to finish this garment were 14.
Pearl academy of fashion
Page 58
[Type the document title] 2012
5.16.5 OPERATIONAL BREAKDOWN OF SHORTS:
s. no. operation
6
7
8
9
10
WELT POCKET PREPERATION
press welt pocket
facing attach
pocket attach
pocket top stitch
edge stitch and pocket opening
BACK OPERATION
yoke attach
back rise attach
edge and top stitch on the back rise
facing attach to coin pocket
edge stitch and top stitch on pocket opening
11
12
13
14
15
16
17
18
surge in coin packet
coin pocket attatch and top stitch
facing attached to front side pockets
pockets finished to front
pockets attached
close front pocket bags
top stitch on inner pocket bags
design with the help of dncs on pocket bags
1
2
3
4
5
19
20
21
22
23
24
25
26
27
28
29
30
31
PREPARE FLY PIECE
zipper attatch
fusing attach to front
serge pocket
join side pockets to front panel
edge and top stitch on the pocket joins
j stitch
FRONT RISE
surge front rise
edge and top stitch on the front rise
tack at crotch
ASSEMBLE
join inseam
close sides
hem bottom
prepare side loops
Pearl academy of fashion
Page 59
[Type the document title] 2012
34
loops attached to side seam
PREPARE WAIST BAND
design stitch with waist band attachment
35
36
37
38
39
40
41
42
43
44
waist band close
edge stitch on the waist band
prepare waist band loops
attach loops to waist band
bar tack on waist band loops
bartack on welt pocket
bartack on the sew buttond on the side seam
bar tack on the pockets
kaaj
eye let kaaj
32
The garment was shorts. A little
complicated design. The smv of the
garment was 33.6 and 38 machines
were required to finish this style.
5.16.6 OPERATION BREAKDOWN OF A ROUND NECK T-SHIRT
S.
OPERATION
NO.
SHOULDER ATTACH WITH
1 MOBILON
TAPE
3 SLEEVE ATTACH
4 SLEEVE TOP STITCH
5 SIDE ATTACH
6 NECK BINDING MAKING
7 NECK BINDING TACKING
8 NECK BINDING ATTACH
9 BOTTOM FOLD
Pearl academy of fashion
Page 60
[Type the document title] 2012
CHAPTER 6
6. FINACIALS
6.1 SALES BUDGET
3,60,000
Sales in units
(YEARLY)
AVERAGE FOB=Sales price
343.36
sales value(SALES IN UNIT*AVG
FOB)
123612837
WORKINGS:
1.
ANNUAL SALES = Monthly pieces are produced 30,000 and the
factory capacity is 35,000.
So 5,000 pieces on an average are taken to be the pieces which are not sold out
or are rejected. so, 30,000*12=3,60,000
Average fob of all the garments is 343.36
6.2 PRICING
Prime Cost
Add Manufacturing Overheads
Add Mark Up
FOB (In Rs)
198.78
104.82
39.75
343.368
ANNUAL SALES/ TURNOVER = 3,00,000*343.36=123612837
6.3 PRODUCT COST
COGS = Prime cost(sales unit*prime cost per unit)
3,60,000 *198.78 = 71563912.86
Pearl academy of fashion
Page 61
[Type the document title] 2012
Add manufacturing expense:
3,60,000 *104.82 = 37736141.75
hence: cost of goods sold = 71563912.86+37736141.75= 109300054.6
6.4 RESOURCE LIST
Item
Straight Knife
cad software and plotter
Fusing m/c
Cutting tables
Fabric trolleys
Fabric and accessory Racks
bartack machine
snls ubt
DNLS
SNLS
4-T O/l
kansai multineedle
5-T F/L
SNCS
dncs
Feed of the arm
Button hole
Button attach
Attachments
Stools
Needles
Bobbin 7 bobbin case
Machine Tools
LED Lights
Bundle stands
Pressing tables
Iron
Boiler for steam
Spotting Guns
Tabels
Pearl academy of fashion
Department
Cutting
cutting
Cutting
Cutting
Cutting
Cutting
Production
Production
Production
Production
Production
Production
Production
Production
Production
Production
Production
Production
Production
Production
Production
Production
Production
Production
Production
Finishing
Finishing
Finishing
Finishing
Finishing
Quantity
Price
1-(8")
130,000
1 2,00,000
1 110,000
2
41000
10
6750
10
15000
1 132440
6 224400
9 752400
30 360000
16 616000
2
80000
9 315000
3 352590
9 946440
2
80000
1 330000
1 330000
5000
110
22000
2800
110
1500
3000
110
16500
2
2000
8
25600
8
12000
50 Kg
70,000
2 246400
5
10000
Page 62
[Type the document title] 2012
Needles detector
finishing
heat set label mahine
Kimble attaching machine
Trolley
Tables
Chairs
Computers
Air conditioners
Stationery
Weighing machine
Generator
tube lights
Fans
printer,scanner,fax
telephones
Cooler
water cooler
Light Box
GSM Cutter
Yarn weighing machine
Washing machine(Domestic)
Misslaneous
finishing
Packaging
Packaging
Administration
Administration
Administration
Administration
Store
Fabric store
factory
administrative
aadministrative
administrative
administrative
administrative
administrative
Testing lab
Testing Lab
Testing lab
Testing Lab
1
40000
2
2
1
3
6
3
2
50000
800
3500
6000
9000
60000
30000
2000
1
1
100
70
1
4
10
2
1
1
1
1
2000
300,000
4,000
56,000
40,000
3,200
40,000
20,000
25,000
15000
10000
15000
300,000
6.5 INITIAL INVESTMENT
Initial Investment – Year 0
1.
Total investment in Fixed
Assets
2.
Pre- operative expenses
(1% to 5% of fixed assets)
3.
Working Capital Investment
(20% to 50% of annual sales)
TOTAL
Total (In Rs.)
6270320
125406.4
43264493
49660219
WORKINGS:
1.Total investment in Fixed Assets = 6270320 From Resource List.
2.Pre-operative expenses: 2% of fixed assets
Pearl academy of fashion
Page 63
[Type the document title] 2012
= 2% x 6270320
= 125406.4
3.Working Capital:
35% of first year sales
= 35%*123612837
Rs. 43264493
Total Initial Investments = (I) + (II) + (III)
= Rs. 4,96,60,219
Out of the Total Initial Investment, all of this is our money as no bang will
agree to give us loans for a new business venture eventually when we settle
down in this business can we approach the bank for loan.
The major investment is in the fixed assets and then working capital as it is
20% of sales and then the preoperative expenses.
6.6 PRELIMINARY EXPENSES
PRELIMINARY EXPENSES
1.
Legal expenses (Stamp Duty)
Rs. 42500
2.
Brand Launch Costs
Rs. 30000
Pearl academy of fashion
Page 64
[Type the document title] 2012
3.
Other preliminary expenses
Rs 215,000
Rs. 287500
Total
WORKINGS:
1.
Stamp Duty and legal registration:
32500+10,000= rs 42500
2.
Brand Launch Cost = rs 30,000
3.
Other Preliminary Expenses = 2,15,000
Total=2,87,500
6.7 EMPLOYEE COST
Number of employees
Number of Direct employee
=118
Number of indirect employees
= 39
Total= 157
wages
1202166
427794
1629960
TOTAL SALARY TO BE PAID ANNUALLY
= 1156000 X 12.
= RS. 13872000
6.8 CPM
COST PER MINUTE FOR DIRECT LABOUR:
TOTAL AMOUNT OF WAGES FOR DIRECT LABOUR /TOTAL NOS OF
OPERATORS*480*26
= 1202166/118*480*26 = 0.82
Pearl academy of fashion
Page 65
[Type the document title] 2012
COST PER MINUTE FOR INDIRECT LABOUR:
TOTAL AMOUNT OF WAGES FOR INDIRECT LABOUR /TOTAL NOS
OF OPERATORS*480*26
= 427794/39*480*26= 1.15
6.9 OVERHEADS
MONTHLY YEAR 1
IN RS.
MANUFACTURING OVERHEADS
electricity – factory
indirect salary to factory employees
depreciation ( factory)
TOTAL
OFFICE AND ADMINISTRATION
OVERHEADS
office electricity
Salary
depreciation ( office)
other office overheads
TOTAL
SELLING AND DISTRIBUTION
OVERHEADS
advertising (1% to 5% of sales)
logistics (2% to 5% of sales)
sales promotion ( 1% to 3% of sales)
Salaries
other selling overheads
TOTAL
TOTAL OF ALL THE OVERHEADS
Pearl academy of fashion
(15%*2cr*80%)
110000
427794
800000
1320000
5133528
800000
7253528
7200
15000
4200
5000
31400
86400
180000
4200
60000
330600
2472256.744
1854192.558
1236128.372
37200
6000
5605777.673
2472256.744
1854192.558
1236128.372
446400
72000
6080977.673
13665105.67
Page 66
[Type the document title] 2012
6.10 INCOME STATEMENT FOR YEAR 1
Sales
Less Cost of Goods Sold :
123612837
109300054.6
GROSS PROFIT
Less
Office and Administration Overheads
Selling and Distribution Overheads
14312782.57
OPERATING PROFIT (EBIT)
Less Interest on Loan
Less Preliminary Expenses ( Written Off)
330600
6080977.63
7901204.89
3420000
57500
EBT
4423704.89
Less: Income Tax @33.99%
EAT (NET PROFIT)
1503617.29
2920087.60
WORKINGS:
6.11 PRELIMINARY EXPENSES (WRITTEN OFF) = 1/5th of total Preoperative expenses.
= 1/5th x 287,500
= Rs. 57500
6.12 LOAN FOR INCOME TAX:
Loan for amount 2,00,00,000 at 14.25%=28,50,000
Debt equity ratio= 47:53
Pearl academy of fashion
Page 67
[Type the document title] 2012
6.13 BREAK EVEN ANYLYSIS
CONTRIBUTION MARGIN=NET SALES-VARIABLE COST
·
FIXED COSTS = OFFICE AND ADMINISTRATION
OVERHEADS + INTEREST ON TERM LOAN +
PRELIMINARY
EXPENSES WRITTEN OFF.
8231804.899
3,808,100
·
VARIABLE COST = COST OF GOODS SOLD + SELLING 115381032.3
AND DISTRIBUTION OVERHEADS
CONTRIBUTION MARGIN PER UNIT = CONTRIBUTION
MARGIN / TOTAL NO. OF UNITS
22.86612472
HENCE B.E.P (IN UNITS) =FIXED COST/CONTRIBUTION
MARGIN PER UNIT
166538.9325
B.E.P IN SALES = B.E.P IN UNITS X WEIGHTED AVERAGE
PRICE
33106049.03
6.14 RATIO ANALYSIS:
Net Profit Ratio = Net Profit / Net Sales x 100
Gross Margin Ratio = Gross Profit /Net Sales x 100
Return On investments = Net Profit / Total Investment x 100
2.30%
4.90%
5.80%
WORKING NOTES:
Net profit ratio:2920087/123612837*100% = 2.3%
Gross margin ration: 1,43,12,782/123612837*100%=4.9%
Return on investment: 2920087/4,96,60,219*100%=5.8%
Pearl academy of fashion
Page 68
[Type the document title] 2012
CHAPTER 7
7. PROJECT PLAN
7.1 DESCRIPTION OF PROJECT:
To develop a business model for the brand extension of Pub-Lick Garments
Company.
1.
2.
3.
4.
5.
Understand dimensions of entrepreneurship and principles of an
enterprise management.
Visualize and formulate the execution plan of a project with resource
planning, budgeting, scheduling, monitoring and control, financial
viability and financial analysis.
Articulate the growth and development plan of an enterprise.
Appreciate, compare, contract and describe the available limited set of
resources or opportunities of entrepreneurship (new product, franchising,
new service, new market, new plant)
Critically evaluate the scalability of the entrepreneurial plan.
7.2 REPORT OBJECTIVES:
1.
To do a background study for the brand.
2.
To create awareness for the brand
3.
To study the competitors.
4.
To make full utilization of the resources
5.
To develop a swot analysis for the brand
6.
To find out the projected financial statements.
7.
We plan to start this business venture by the year 2013, January.
7.3 SCOPE OF OUR PROJECT
1.
First-Movers Advantage
2.
Innovation and Creativity Catering to the teens, kids, tweens, which have
been considered to spend the most on Garments according to statistics.
Pearl academy of fashion
Page 69
[Type the document title] 2012
3.
4.
Ability to manipulate the Prices.
Eagerness of Youth to be different and be exclusive in order to standout
in their environment.
5.
6.
Popularity of the same in the west will assure people to be adaptable
People have become more style conscious
7.4 LIMITATIONS
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
Small businesses face an increasing competition from big firms given
their marketing muscles and economies of scale.
There are also a growing number of small manufacturers that
significantly tightens the competition. Plus, small companies need to have
the resources to cope with the rapid changes in apparel trends and styles.
We rare uncertain if there is a market for our proposed product. We are
doubtful if we will be able to define our specialty, both in line and price
category.
The market for clothes is as varied as the demographic segmentation of
the population.
Our focus be based on gender (girls or boys; and women and/or men) or
age (baby clothes or granny clothes)?
Should we plan to create clothes for infants or apparel for large women?
Should we intend to create apparel for pre-teens, career professionals,
or school clothes? The market is so wide and varied.
Will we sell our clothes exclusively or will we use other distribution
methods?
Should we sell our products exclusively in pricey boutiques or should we
sell it in discount stores?
Should we aim for the middle-income market and mass-producing lowcost apparel?
Our pricing will be an important factor that will dictate our marketing
strategy.
Should we offer clothes of limited quantity, will we be able to find
sewing contractors who are willing to deal with small production orders?
Or will the costs be too prohibitive for our operations? Also, will the
fabric suppliers be willing to give us small cuts of the textiles that we
need?
How much we think we can sell will drive the quantity with which to
order our raw materials and negotiate with the contractors who will
produce our designs (if we will subcontract it). This requires a balancing
Pearl academy of fashion
Page 70
[Type the document title] 2012
15.
16.
17.
18.
19.
act: ordering too many raw materials is an unwanted cost that we should
avoid at this point.
The decision to outsource or do production in-house will depend on
several factors: the kind of clothing we are doing, the quantity of items,
the equipment we need, cost, and our expertise. For example, handpainted shirts are easier to produce and require lesser equipment than
evening gowns.
How much we need to start a clothing line depends on many factors
whether we will buy or rent our equipment, subcontract production, hire a
designer, rent a retail store, and hire a salesman to push our products.
Printed shirts may also require minimal start-up capital. But a line of an
upscale career outfits for women may cost more.
Unless you hire a savvy PR company to market your business and
put your brand on every magazine, expect a couple of years at least to
acquire a reputation for fit, delivery and customer acceptance. The
apparel industry is a tricky business you will never know what will sell
from one season to the next.
Having your own clothing business is not an easy task. We need to have
the management know-how of running a business and a thorough
understanding of the industry. We must be able to juggle well three basic
functions: design, production and sales. To top it all, we must keep
abreast with the introduction of new fabrics. You need to be savvy in a lot
of things to be successful in the garment industry, from finding
salespeople to sourcing fabric, hiring contractors, and managing your
receivables.
Pearl academy of fashion
Page 71
[Type the document title] 2012
7.5 SCOPING FORM
PROJECT NAME
PROJECT MANAGER
TEAM MEMBERS
Pub-Lick Garments
Company
Onkar arora, Sumedha Mundra Onkar arora, Sumedha
Mundra
PROBLEM
Refer to Limitations
PROJECT GOAL
To develop a business model for the brand extension of Pub-Lick Garments Company.
OBJECTIVES
To do a background study for the brand.
To create awreness for the brand.
To study the competitors.
To make full utilisation of the resources.
To find out the projected financial statements for the next two years.
To understand the business environment using PEST and 5 Q-model.
To develop the SWOT analysis for the brand.
To be able to set up the unit by Jan, 2013.
SUCCESS CRITERIA
To be able to meet my mentors weekly for their guidance.
To be able to meet the key people of the brand- brand manager, store
manager.
To be able to interact with loyal customers to conduct the brand audit.
Pearl academy of fashion
Page 72
[Type the document title] 2012
ASSUMTIONS, RISKS, OBSTACLES
Assumptions- No other Brand caters to Surfwear Apparel in India.
Risks- refer to word doc.
Obstacles- refer to word doc.
Pearl academy of fashion
Page 73
[Type the document title] 2012
CHAPTER 8
8. EXIT STRATEGY
We have laid out exits plans for circumstances we could identify for our
business –
 IF ONE PARTNER LEAVES – in such case, the business will continue
as normal. However the liability will be borne by only one partner. The
capital invested by the partner who leaves the firm will be repaid in
installments. The number of installments will depend on the amount of
capital still left to be recovered by the business.
 IF ONE MORE PARTNER JOINS – in such case, the liability will be
shared by all the three partners equally and the capital invested initially
by 2 partners will be divided amongst all three. So the 3rd partner will also
have to invest some capital to join the business.
 CHANGE OF BUSINESS – in such case, if the existing partners agree
to change the business, then the liability will remain the same for all and
the capital investment will be equal. If this doesn’t happen, then the
partner who wishes to leave will be repaid the capital invested by
him/her.
 IF THE BUSINESS FAILS – in such case, as much capital invested will
be recovered through sales and discounts offered to the consumers. Since
most of the products will be procured on credit, they will be returned to
the suppliers, as per the T&C agreed while purchasing the products from
these suppliers.
Pearl academy of fashion
Page 74
[Type the document title] 2012
CHAPTER 9
9. REFLEXION
1. Select and apply relevant data collection techniques to complex situations
leading to fine interpretations based on synthesis of a range of findings
.
2. Plan tasks and own deadlines , manage a project professionally create one’
own network of resources in order to be able to arrive at holistic solutions to a
defined problem/ gap
3. With our mentor guiding us through our limitations we are applying logic and
getting clarified solutions to our problems.
4. Define the ideas and value prepositions and sell it to target audiences.
5. We will be able to easily convince and persuade with stakeholders.
6. We demonstrate ability to take risk and manage lead team to an enterprising
project.
7. Conduct systemic enquiry through collation and analysis of data from a range
of sources, ethically and with little guidance. Work effectively with others as a
member of a group and deliver obligations to others reliably and consistently.
8. Exhibit initiative and enterprise within a provided direction to implement
tasks and deliver required results with promptitude.
9. Controlling our financials by taking into account each and every cost that is
incurred.
10. Meeting the deadlines of weekly submissions made us learn how to manage
time and resources.
Pearl academy of fashion
Page 75
[Type the document title] 2012
CHAPTER 10
10. BIBLIOGRAPHY












http://www.scribd.com
http://industrialeducation.blogspot.com
http:// Fibre2fashion.com
http://google.com
http://www.gapinc.com/content/gapinc/html.html
http://www.volcom.com/companyinformation/index.asp
http://are.berkeley.edu/~sberto/Levis.pdf
http://www.calstategames.org/s-skateboarding.html
http://www.billabong.com/us/
http://en.wikipedia.org/wiki/California
About California
http://www.fco.gov.uk/en/travel-and-living-abroad/travel-advice-bycountry/country-profile/north-central-america/united-states
 Foreign & Commonwealth Office – US Demographics
Pearl academy of fashion
Page 76