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Center for Entrepreneurship and Small Business Management Maharshi Dayanand Saraswati University, Ajmer

Business Plan Development On KHALSA COLLECTIONS- SOMERTHING DIFFERENT AND AFFORDABLE

Submitted To: Mr. Dushyant Bafna Tailor

Submitted By: Mohit Jadam Manish Gaurav

Mawar Amit Tak

BBA (E&FBM) Part-III (Sem-VI)

CONTENTS ACKNOWLEDGMENT CONTENTS Introduction to Khalsa Collections Mission Unique Features Objectives Production Time Material Labour Requirement Location

Market Analysis Market Segmentation Marketing Mix Marketing Strategy

Operational Requirements Internal Working Criteria Transportation

Financial Analysis Ratios and Depreciation Charged Profit and Loss Account Balance Sheet

ACKNOWLEDGMENTIt gives us immense pleasure in a submitting this Project of Business Plan Development (BPD) for the Semester VI As the part of BBA in ENTREPRENEURSHIP AND FAMILLY BUSINESS MANAGEMENT. FIRST AND FORMOST, We would like to acknowledge Mr. Dushyant Bafna, Faculty Member of Center for Entrepreneurship and Small Business Management, Maharshi Dayanand Sarswati University, Ajmer. Who has provided this opportunity and enabled us to gain this experience in a business area. Before we explain about our Business Plan, We would express thanks from the core of our heart to Mr. Hemraj Sharma, Who is the owner of HB. Furniture House, Ajmer for suggesting and helping us in preparing this Business Plan. Without there co-operation and help we wouldnt have been in a position to complete our Business Plan. Mohit Jadam, Manish Tailor, Gaurav Mawar & Amit Tak BBA (E&FBM) Part III Semester- VI

INTRODUCTIONHandicrafts are unique expressions and represent a culture, tradition and heritage of a country. The Handicraft Industry is one of the important productive sectors. Various attempts have been made to define this broad and diversified industry. The following definition strives to cover diversity and complexity of Handicraft Industry.

Defining Handicrafts:Definition According to United Nations Educational, Scientific and Cultural Organization/Information Technology Community (UNESCO/ITC) International Symposium on Crafts and the International Market: Trade and Customs Codification, Manila, Philippines, October 1997: Handicrafts can be defined as products which are produced either completely by hand or with the help of tools. Mechanical tools may be used as long as the direct manual contribution of the artisan remains the most substantial component of the finished product. Handicrafts are made from raw materials and can be produced in unlimited numbers. Such products can be utilitarian, aesthetic, artistic, creative, culturally attached, decorative, functional, traditional, religiously and socially symbolic and significant.

Definition according to Govt. of India:Handicraft can be defined, which is made by hand; should have some artistic value; they may or may not have functional utility. Today the people are more aware of furnishing and interiors of their houses, so they ask for a large rang of variety end excellent services which are the main aim of KHALSA COLLECTION- SOMETHING DIFFERENT AND AFFORDABLE. This Business Plan Unit is a small retail business aimed at a big time in order to reach its lofty goals and stands for its quality and affordable prices in the markets of its product like Dinning Tables, Single or Double Beds with different features, Dressing Tables, Antics, Show Piece, Wooden Toys, All over Furniture Goods are available in our Furniture Mart. It will be providing the products which already exist in the market and will also provide a new breadth of air in the market through the availability of unique products and services. Our unique selling preposition will target the customers with their unique demands.

MISSIONKhalsa Collections will build its image as a quality first and then will begin earning higher profits.

UNIQUE FEATURES Different varieties and sizes of products are available under one roof with a unique customers service. The Furniture Goods are altered according to the order. Our Furniture Goods are also designed and shaped with the help of fully skilled carpenters.

OBJECTIVES To capture its market share by 25%within a year, by focusing on getting customers from near by areas of Ajmer like nasirabad, beawar. To provide different varieties of product to the customers by fulfilling their expectation and to achieve a good position in the market.

PRODUCTION TIMEWood carving is a time consuming process. The time needed by Indian craftsmen to create carved wooden handicrafts may range anywhere from a week (for small items) to a few months for large items which require elaborate carving techniques.

LABOUR REQUIRMENTSHandicraft is a labour intensive product and it is all depend upon labour only and all kind of labour requirements are there like in this we need skilled, semi skilled and unskilled workers. So total requirements are as follows:

Employees Production Supervisor Accountant Skilled Workers Semi skilled Workers Unskilled workers Peon Guard Total

Number 1 1 5 8 3 1 1 20

Salary (Rs.) Per day 150 125 100 Per month 5000 5000 4500 3750 3,000 2,500 2,500 Annually 60000 60000 54000*5 = 2,70,000 45000*8 = 3,60,000 36000*3 = 1,08,000 30,000 30,000 9,18,000

LOCATION AND SITE DEVELOPMENT The area for setting up a handicraft manufacturing unit is decided after surveying all the potential areas. The location of plant will be at Makarwali Road Vaishali Nagar, Ajmer. The rate of land is Rs 500sq meters (one side road plot), of area 2,000sq meters or 21529sq ft

Structure and Civil works:S. No. 1 2 3 4 5 6 Particulars Factory shed 2 stock room Guard room Power room Boundary wall Washroom 5labour quarters 7 8 9. 10. Room Washrooms Office room Fire fitting Total 12*10 6*8 15*12 120 48 180 200 200 200 24000*5=120000 9600*5=48000 36000 39200 9,36,800 6*8 48 200 Size 30*60 18*20 8*10 8*10 Area 1800 360 80 80 Rate 200 200 200 200 Amount 3,60,000 72000 16000 16000 220000 9600

MATERIALSBabool/Aakashiya: This is available in Rajasthan and some part of Gujarat. The rates of babool are Rs.20 / sq ft Shisham: Most of wooden handicraft is made of shisham wood. The highest demand is of shisham made wooden handicraft. This is available in Gujarat,

U.P. & Bihar. This is made available by local wholesale timber merchant. The rates are Rs. 30/sq ft. Pine: Rs. 25 /sq ft. These are less demanded. Teak: Rs. 80 /sq ft Mango: Rs. 25 /sq ft Only Shisham will be used to manufacture wooden handicraft because it is more in demand and suitable for these type of handicrafts.

KEY TO SUCCESSKHALSA COLLECTION-SOMETHING DEFFERENT AND AFFORDABLE will build an impression in the mind of the customers because the punch line itself explains about the different variet of product. This punch line will also be printed on every poly bag of KHALSA COLLECTIONS.

EXPECTED ACCOMPLISHMENTSThe Business Unit expects to capture an additional 25% of the market share in the second year, following this expansion and another 50% in the following year.

MARKET ANALYSIS-

Geographical AreaMakarwali Road Vaishali Nagar, Ajmer

Objective of the survey

To know about the market potential for the handicraft To analyze the handicraft manufacturing, its competition, customer

preferences and their satisfaction level.

To find out the major players in the market

Source of InformationPrimary (Market Survey) and Secondary data

Methodology Adopted:Research plan was developed through conclusive research design using descriptive research analysis methods by survey as detailed below:

Research Approach:1. Primary data for gathering information regarding manufacturing requirements and facilities available at Ajmer region was collected by personal interview with different manufacturers selected on the basis of random sampling survey method. 2. Secondary data regarding world demand and supply positions, Indian Handicraft status and other relevant information were gathered from different websites.

Research Instruments:Collect the data on both the sensitivity of demand and supply, customer preferences and to know the market potential and future growth. After deciding the research approach and instruments, sampling plan was prepared Sampling Procedure: Simple random sampling method was used for survey on representative basis. Sample Size: 20 handicraft units Contact Method: Personal interview with each of the manufacturer and raw material suppliers was conducted.

STRATEGIC MARKETING PLANWooden handicraft is being an unbranded commodity, so as such the manufacturers incur no promotional expenditure. Sometimes they just increase the commissions or the margins of these, if the targets are achieved enormously. But in order to differentiate the product and capture the existing market and to develop strong customer base, some strategic marketing plan is necessary to be designed and implemented. Various strategies that will be used being a new entrant are: Study supply with timely delivery to fulfill the demand of the

domestic area as well as outside area and good quality would be one of the strategic strength of the marketing plan. Apart from good quality good designs are an important factor. These

designs will be based on traditional pattern so that it can impress foreign customer. Besides from these efforts e-commerce is also a promotional tool for

marketing of this product. So I will do online selling also in order to promote my product. So orders will also be taken online apart from fax and

telephonically.

OPERATIONAL REQUIRMENTMachinery InvolvedS. No. 1 2 3 4 5 6 7 8 9 10 Particulars Chemical treatment plant Seasoning plant Surface