BUSINESS PLAN

For Small Garment Manufacturing Firm

TABLE OF CONTENTS

S.NO TOPIC PAGE NO.

1 Executive Summary 1

2 Vision, Mission & Goal 2

3 General Company Description 3-5

4 Management Plan 6

5 Board of director 7

6 Organizational structure 8-9

7 Marketing Strategy 10-16

8 Organizational plan for Manufacturing unit

(Planning for product & area)

17-46

9 Total work force 47

10 Machines in section 48-51

11 Specific market 52

12 Growth Market 52

13 Market size & share 53

14 Research & Development 55

15 Cost statement for business 56-57

16 Balance sheet for business plan

Executive Summary

Patad will enter into the Apparel Business in the year 2013 on 5 November, with a group of 16 members, the Entrepreneurs.

“PATAD “has the mission to decorate and design each of customer’s thought and thus successful in creating a niche market for trouser lovers.

The start-up will have to face major big players in the market but soon with our USP of Quality product & Customer satisfaction, we will trap the market. We hope then new Opportunities start and our Trouser manufacturing unit start flourishing. We planned to produce 2500 quality trousers per day with 96% quality performance.

The need for use of efficient distribution and financial methods in these plans are to develop our brand value. So on time delivery makes us for efficient distribution channel.

We are planning to establish 3 major DC in Bangalore, New Delhi & Mumbai. We have several retailers who are willing to place large orders within the next three years, instead of market slowdown. Several other prospective have expressed serious interest in doing business within six months.

Over the past few years we spent much time studying ways to improve overall performance and increase profits. This plan is a result of that study.

The basic components of this plan are:

Product strategy

1. Competitive pricing

2. Expand the markets

3. Increased advertising

4. Lower our unit costs,

5. Thereby achieving higher profits.

Service strategy

1. Sign contracts

2. Increased advertising

3. Effective & Technical staff

To this end, we invested A total of $3,00,00,000 which will be used to finance working capital, plant and equipment. The company will soon be incorporated and common stock issued to investors. The company will be run as a, partnership.

VISION

To set a precedent in the global garment manufacturing industry through continuous innovation and perfection of Designs, superior quality, exceptional products, focused services and enhanced customer satisfaction.

MISSION

To decorate and design each of customers’s thought and thus successful in creating a niche market for trouser lovers.

GOAL

To have a healthy, successful company that is a leader in customer service and that has a loyal customer following

GENERAL COMPANY DESCRIPTION

Panache Fashions is mainly in Producing & marketing Trouser. The major point is to target high class customers. The mission of company to specify customer needs and fulfil it on time at lower cost.

Our goal is to achieve profit level of $ 4500000 within 3 years. We want our business to be at 3-4th top most position within 5 years. Objectives are progress markers along the way to goal achievement.

The company is located at the heart of Garment Industrial Area and it is nearly 15 Km away from the heart of Bangalore city. The location will be more convenient as it mainly works as a jobber unit of different garment manufacturing industry.

Business Philosophy is producing Quality & designer product & maintaining proper Supply chain. The manufacturing Unit & owned sales point make it more useful and effective.

The market for our product is the high middle class people who love quality product & like new trends in market. Marketing Plan section has to be more effective regarding customer satisfaction & advertising product. The initial markets are few big & matured retailers, then slowly build our own market & make brand value.

Brand value creating & maintaining long term relations are our key points. The production will strengthen our supply & in any critical situation we are able to feed our market & retain brand value. This will play vital role in making our brand stable & effective. This is our major strength.

The core competition is with the local players as mentioned above & some new trouser retailers also. But the goal to achieve consistent quality at lower price is our USP & strength. The staffs with proper educational background & expertise in their field make this mission more effective. The skills in field & proper supervision by all board of directors make this unit more valuable & make to move in specified direction.

Our firm ownership is partnership. The revenue is also generated later by distributing shares among local market. This firm we selected because all the person heading are expertise in this very field & chances of success is more because we all are following 3 points of..

• CONCEIVE IT ….BELIEVE IT……………. & ACHIEVE IT!

MANAGEMENT PLAN

Target Sales growth in 3 years is 4500000 USD;

Get market share appx. 15% till the span of 3 years.

Formulated advertising budgets & campaigns.

Pioneered new distribution channels.

Established national sales force.

Established national repair & service centers.

Brought new and innovative products to the market.

Designed point-of-purchase materials

Increase new connections with growing retailers.

Open a brand outlet for trousers.

Achieve BEP in 1 year.

Plan growing retail players & sourcing team.

Plan is to form our own brand outlet after 3 years.

Production unit should have high & quality production capacity.

The production unit have New modern machines with latest technique.

Launch our web site for effective promotion of our manufacturing & Product.

BOARD OF DIRECTOR

1. PRITY SAHAY is member of Board of Directors. She will take care of all Issues regarding Management Policies. She has had experience in this field. Miss. Prity Sahay is graduated from the University of Mumbai in 2007 with a bachelor’s degree in computers. She then completed her Masters from NIFT and now working as effective BOD.

2. NASEEB AHMAD , is member of Board of Directors. He will take care of all Issues regarding Production. He has had 2 Yrs experience in this field. He is graduated from the UPT University in 2005 with a bachelor’s degree in Textile. Then he worked for 2 year in production. He then completed his Masters from NIFT and now working as effective BOD.

3. JIAUL HAQUE, is member of Board of Directors. He will take care of all Issues regarding Finance. He has had 1Yrs experience in this field. He is graduated from the Kolkata University in 2006 with a bachelor’s degree in Textile. Then he worked for 1 year in production. He then completed his Masters from IIM Kolkata and now working as effective BOD.

4. AVANISH DWIVEDI, is member of Board of Directors. He will take care of all Issues regarding Marketing. He has had 1 Yrs experience in this field. He is graduated from the Amravati University in 2006 with a bachelor’s degree in Textile. Then he worked for 1 year in planning. He then completed his Masters from NIFT and now working as effective BOD.

RESPONSIBILITIES

Prity Sahay is Responsible for entire Management operation.

Jiaul Haque, is Responsible for financial operations, accounts payable, accounts receivable, interaction with auditors, investor relations.

Naseeb Ahmad, is Responsible primarily for Production issues.

Avanish Dwivedi, is responsible for marketing, human resources and training, sales and sales support

All other responsibilities will be distributed among other all staff under proper supervision of these all Board of Directors.

ORGANIZATIONAL STRUCTURE

FOR MANUFACTURING UNIT

FOR RETAIL SECTION PLANNED

PRODUCT/SERVICE DESCRIPTION

Panache Fashions intends to offer fashion TShirt. This offers customers the best possible solution.

TROUSER Offers the lowest price on the market

Offers the Quality trouser in the market

Is the most technically advanced

Offers more useful features

Saves them time and money

Offers users better value per Rupee spent

Provides an alternative way to achieve a similar task.

The product has a useful life of 5 years. To distribute this product so that it remains usable for our customers, we must use the following methods of storage and transportation:

1. Overnight delivery in case of more demand.

2. Clean & proper storage

3. Shipment within two weeks to distributors.

4. Specially padded boxcars.

Even though the technology used to create this product is new, we expect that others will be able to substantially reproduce our patented results within 10 years. To remain on the leading edge of this product, we will need to devote approximately 28% of revenues toward research and development. Also due to the fast changing nature of this industry, we will need to retrofit these machines within 15 years. Our manufacturing plan has considered this.

SERVICE

Provides a service which is not presently available in this area.

Is strengthened by a team with combined experience of more than Avg. 5 years.

Saves the time and money for customer for value added product.

Provides an alternative, cost effective way for them to realize a similar goal.

We have a trademark & marketing rights for Panache Fashions product/service. This will last until 2050 at which time it may be extended for 10 years. This agency agreement is cancelable upon 60 days written notice.Even though at this time our expertise is unique in the marketplace, we expect advances to be made and competitors to arise and offer similar services. We will meet this challenge by:

1. Hiring staff specialized in these new areas.

2. Increase our continuing education and training expense.

3. Adding complementary lines.

4. Make regular investments in new equipment.

OBJECTIVES

LONG TERM

Panache Fashions believes very strongly in technical, financial, business and moral excellence. To secure a stable future for all those connected with pp we have set the following long term goals. Present market is estimated at $2 crore. Our goal for market share is 10-15% with in 3 years.We want to be considered by our peers to be the market leader in sales as evidenced by:

High end of scale in financial ratios

Major market share

Trade industry awards

Technical excellence (awards, honors, etc.)

Community involvement (Rotary, United Way, etc.)

SHORT TERM

Market share goals -

1. First Year -2%

2. Second Year 0%

3. Third Year 10%

4. Fourth Year 10-15 %

Maintain costs through acquisition of new plant and equipment. Increase productivity by investing in employee training and education.

1. Budget for complete computer training for appropriate applications.

2. Set up, employee benefit program for continuing college education.

3. Budget for necessary seminars and/or continuing job-specific education.

4. Maintain state-of-the-art accounting system for careful tracking.

5. Monthly reports on financial status of the industry.

6. Aggressive recruitment of the best technical staff in the industry.

Support company involvement in various local and national charity events.

MAJOR COMPETITORS

There are many major competitors of trouser in India. They produce very good quality trousers with minimum cost in limited time. Therefore, there is a great competition in this business.

The main competitors are:

Arvind brands

Madura garments

Intimate Clothing Pvt. Ltd.

Gokuldas Images.

Peter Englamd

Provogue

Raymonds

Wills lifestyle

STRENGTHS

Location - next door to Panache Fashions factory, on major artery, close to terminal, etc.

Pricing - Low cost producer, known for aggressive pricing policy.

Delivery - ships to anywhere in the world.

Management - Everyone has an MBA from renowned Univ.

Old names in industry & good experience so difficult to find loop holes.

WEAKNESSES

Service -.Not proper service as already big names so not concentrating on this.

Dedication – Staff not fully dedicated as big brand so no proper supervision.

Manufacturing – Mostly outsourced so delivery & SCM control not up to extent .

Overhead – Overheads are more due to giants in this area.

COMPETITIVE ANALYSIS (Rating is from 1-5 to evaluate our group)

Factor

Panache Fashions

Strength

Weakness

Madur

a

garm-

-ents

Peter

Englan

d

Prov

ogue

Wills

Life

Style Levis

Arvind Brands

Raym-

onds

ProductsTrousers Quality No Brand

imageAll Trousers Trousers Ladies All All All

Price (RS)

500-1500 IN range Not for Lower 700-1500 500-1700 1000-2100 1200-2300 1700-3200 700-1200 1000-1300

Quality2 good Cost more 2 3 1 2 1 3 2

Factor

Panache Fashions

Strength

Weakness

Madur

a

garm-

-ents

Peter

Englan

d

Prov

ogue

Wills

Life

Style Levis

Arvind Brands

Raym-

onds

Selection1 Style

preferenceNot total market

2 2 1 2 1 2 2

Service1 good Not all cities 3 3 2 1 2 3 2

Reliability

2 Avg. Not popular 1 3 1 1 1 2 1

Stability2 So stable Not develop

market2 2 3 2 3 3 3

Expertise4 New in field 3 2 1 1 2 3 3

Company Reputation

2 New ideas Do 2 3 1 1 1 2 2

Location1 Heart of

bangaloreCostly 2 2 1 1 1 2 2

Appearance

1 1 2 1 1 1 2 1

Sales Method

3 Good & effective

New so take time to adopt

2 2 2 2 2 1 1

Credit Policies

2 Have to give Cant give so much

3 3 4 4 4 2 3

Advertising

1 With new methods

4 4 2 3 1 2 1

Image3 Yet to

developed2 3 1 1 1 2 1

COMPETITIVE ADVANTAGES

Product

The distinctive competitive advantages which Panache Fashions brings to this market are, Sophistication in finance and distribution. This results in our being the low cost Panache Fashion these price sensitive markets. The philosophy of Panache Fashions is to

price not just according to our costs, but also according to what the market will pay. Our targeted minimum gross profit margin for a category must be 10%.By pricing to the market, we will achieve higher sales and therefore increase our buying power. As the amounts of our purchases increase, our per unit costs of Panache Fashion decrease and we will achieve higher discount levels from our Panache Fashion. Through these economies of scale, many items currently on the market can be sold with lower prices, yet a higher net profit.

With those companies with which we have established a relationship or are known to be financially secure, we will work on a pre-pay basis. This allows us greater discounts. A level and policy of Capitalization that will allow us to fully address the respective markets with comprehensive marketing and customer service plans.

By keeping our overhead low, we will be able to funnel our profits back into operations thus avoiding high debt ratios or lost sales Panache Fashion. A quarterly direct mail campaign directed at both current customers and prospective new customers consisting of an informative newsletter. A toll-free national number will be used for customer orders and inquiries.

we will print complete four-color catalogs on a yearly basis. Price lists will be updated as needed. We intend to be aggressive in trade magazine advertising.

Service

The distinctive competitive advantages which Panache Fashions brings to this market are, New thought & concept in this market

Sophistication in management and finance. We are able to run an efficient and lean structure, yet still provide quality service to our clients and customers. Because of the nature of this industry, we will be able to rent office space in more moderately priced buildings.

As a unique service company, we will be able to keep our margins high, allowing us to provide internal financing for growth possibilities. A level and policy of Capitalization that will allow us to fully address the respective markets with comprehensive marketing and customer service plans.

By keeping our overhead low, we will be able to funnel our profits back into operations thus avoiding high debt ratios or lost sales Panache Fashions. Our initial marketing campaign will allow us to book a sufficient amount of business so that we can impleusnt our telephone customer service Panache Fashions program.

MARKETING STRATEGY

Location

“Panache Fashions” is located at the heart of Garment Industrial Area and it is nearly 15 Km away from the heart of Bangalore city. The location will be more convenient as it mainly works as a jobber unit of different garment manufacturing industry. As it is located in the Garment Industrial Area, the labours are easily available, Power supply is also good as required for the industry and as per the Government policy to control Pollution it is away from the main city.

Price / Quality Relationship

“Panache Fashions” plans to provide a high quality product at a moderate price. This Pricing strategy will make them competitive in the market and allow them to cover the costs, while they are growing. Their quality service and convenience will be what makes them stand out in the local industry.

Presentation To Customer

“Panache Fashions” plans to runs a neat, organized shop that presents an appearance of classic quality that will last for a long time. The finished product will be placed in a plastic bag to protect it until it is delivered to the customer.

Public Relations

As owners of “Panache Fashions”, will introduce ourselves, and business, to those we meet. The strategy of working is not only relation with public but also to get full customer satisfaction.

The major strategy is 100% Guarantee for the product & return of money within 20 Days on providing sales slip.

ADVERTISING

Registered the as the member of the Apparel Export Promotion Council (AEPC) and an ad appears on the yellow pages (Industry directory website) describing our services they offer, the area in which they desire to do business.

A web page will be set up at a “free” web site, www.panachefashions.com , initially to see if there is any business potential in this area at this time or in future.

Some brochures put together identifying the type of products we offer. The brochures will also describe our business, the USP we Operate the business & retail.

Personal contact with production related businesses in the area will be our main focus for promoting Panache Fashions.

Business cards, letterhead and thank you cards will be printed for business activities. We also participate in different fashion show, Exhibition of the products held in the

different parts of the world.

COMPETITION

Get the USP of all competitors in the market & try to compete with our USP. Give fair discounts time by time. Give good margin to our retailer & reduce our profit margin at less extent. Gift vouchers & Assured gift, to get our strong competition.

ORGANIZATIONAL PLAN FOR MANUFACTURING UNIT

BRIEF FOR TROUSER UNIT

The Trouser manufacturing plant comprises of

Production block Service block

SERVICE BLOCK

1. ADMINISTRATION 2. HUMAN RESOURCE3. FINANCE 4. PURCHAS DEPARTMENT/SOURCING 5. MARKETING

6. COMMERCIAL 7. MERCHANDISING 8. QUALITY 9. CAD 10. IED 11. IT DEPT 12. EDP 13. DATA ACQUISITION 14. ELECTRICAL/UTILITY 15. TECHNICAL DEPATMENT 16. PRODUCT PLANNING AND CONTROL 17. MAINTAINANCE 18. CRECHE 19. CANTEEN20. MEDICAL

PRODUCTION BLOCK

1. PRODUCT DEVELOPMENT AND SAMPLING 2. FABRIC/TRIM STORE 3. CUTTING 4. SEWING 5. KAJA BUTTON SECTION 6. LAUNDARY 7. FINISHING AND PACKING 8. FINISHED GOODS WAREHOUSE 9. WASTE DEPT 10. ETP

Details of activities of each section are discussed below to emphasize the client’s requirements in building the above mentioned trouser manufacturing plant.

SERVICE BLOCK

1. HUMAN RESOURCE DEPARTMENT

• Recruitment of employees • Determine the wages/salary structure • Arrange Training program • Implementing and evaluating the factory policies • Organizing events • Redressing grievances, addressing complaints,• Taking care of the welfare of the employees • Evaluating employee performance and giving rewards • Taking care of employee safety and health hazards • Maintaining record of attendance • Reception for attending visitors and regulating call services • Arrange contract for security, canteen and house keeping

The human resource department comprises of 7 people including the manager and his/her assistant. The Manager and the Assistant Manager shall have separate cabins, while the rest of them have separate table and chairs with desktops & printer. The

Manager and the Assistant Manager have separate tables and few chairs in their cabin along with file racks. They are also provided with desktops.

File racks and lockers are provided for HR staff also,2 for each.

1.1 SECURITY

The main entrance for the factory should be big enough to facilitate truck entry and exits. A security post as well as guest reporting room to be considered situated near the main entrance. The reporting room shall accommodate 5-6 people. The major activity in the reporting room would be keeping record of the incoming and outgoing trucks, people moving in and moving out.

1.2 RECEPTION & VISITOR LOBBY

The reception will serve as the foremost entry point for the administration block. The reception is located adjacent to the visitor’s lobby. The space for reception should be sufficient enough to accommodate the receptionist desk and a chair for one receptionist. Desk be furnished with stationeries and connected by telephone networks. The receptionist desk shall be well designed one with good aesthetic visual appeal.

The visitor’s lobby is located adjacent to the reception area. The visitor’s lobby should be spacious enough to accommodate around 10 people. The visitor’s lobby shall be well furnished with sofas, chairs, draperies and tables. It shall serve as the introduction to the company’s mission, vision and values. It will showcase them in contemporary style with an aesthetic appeal. The visitor’s lobby shall also house a design layout of the entire factory, values followed by the company and its business ethics.

1.3 PARKING

It is desirable to locate the parking space near the main entrance. The parking space should be separated for four wheelers and two wheelers. The allotted parking space shall accommodate 8 -10 four wheelers & 80-100 two wheeler in parking space.

The parking spaces for trucks are allotted near the docking area. It should be sufficient enough to accommodate three trucks at a time.

1.4 FIRE SAFETY

Around the factory, there should be a travel path to facilitate “fire service truck” movement in case of fire accidents. Fire safety zone design should be provided for about 550 people.

1.5 DRINKING WATER & TOILETS

Drinking water shall be kept in suitable vessels in a clean state at appropriate locations all around the factory.

For every 25 members there shall be at-least one toilet. Appropriate signboards shall also be provided. The toilet facilities be located near departments at a specific distance form them to avoid the smell and stink affecting the departmental workspace.

1.6 CANTEEN

The refreshment room for the service and managerial staff are to be located at any corner in the service block cut-off from the rest of the activities and should have direct exit.

• Preparing tea and coffee • Preparing food for the workers and the staff members • Billing and service counters • Cleaning the canteen and the utensils • Providing tea/coffee to the staff at regular intervals • Providing refreshment to the guests as per the requirement • Provide service at lunch/ refreshment time.

It should have the capacity to accommodate 70-80 people. Hence its seating capacity shall be same as the number of people. It also has kitchen attached to it. The kitchen is furnished with equipment to prepare coffee and tea with an automatic vending machine.

The department consists of 3 staff. The refreshment rooms have double entry and double exits. The canteen should also have space for fire extinguisher & other safety devices.

1.7 CRECHE

• Taking care of the kids of the workers • Feeding the children • Involve them in some kind of playful activities • Provision for taking care of the infants for sleeping

Crèche is for children so having facilities of toys & games. It should also have separate space for drinking water & food. All safety measures like fire safety devices, first aid also should be required.

It should be capable to accommodate 2 staff & 40-50 children.

HRD

Manager 1

Assistant Manager 1

Security Head 1

Sr. Executive 1

Executive 1

Compliance Executive 1

Site Engineer 1

Receptionist 1

Welfare Officer 1

Driver 1

Cook 1

Helper to cook 2

Crèche 2

Security 9

Office Boy 1

TOTAL 25

2. MEDICAL• Keeping and upgrading the first aid boxes in all the departments regularly • Doing regular checkup for the workers and staff members • In case of any accident or emergency taking immediate action • Conduct exercise for the workers during the working hours for a while in order to

avoid fatigue.• Maintain Ambulance for any emergency.

There shall be first aid and medical assistance room catering to the eventualities. Medical having cabin for doctor (who visit the industry daily for 3-4 hours) ,1 executive chair & table for doctor. Separate place for 2 staff nurse with 1 table & 5 chairs. Also space to keep medicines safely in storage place & 1 place for wheel chair.

MEDICAL

Doctor 1

Staff Nurse 1

TOATL 2

3. ADMINISTRATION

Top level management is responsible for taking the major decisions Planning the annual budget with coordination of finance dept. Planning the expansion of business for generating more profits Defining business strategies and implementing new technologies Monitor the performance of production dept. Conduct meeting daily on daily basis.

ADMINISTRATION

GM production 1

Factory Manager 1

Total 2

The major activities of this, will be addressing people from various departments etc. They have a separate cabin furnished with manager’s table and 5-6 chairs, some more chairs to accommodate people waiting for him. This cabin will be equipped with telephone , desktop and cupboard, locker & Printer.

There room will also connected via ERP software and furnished with internet facility. The factory system certificates, quality certificates and other distinguished awards will show cased in there room.

4. FINANCE• Keeping track of business transactions • Making annual budget for the factory • Raising funds for the business • Keeping track of overall daily expenditure • Payment made for procured goods • Preparing balance sheet • Releasing salary as per the pay slip issued by the HR

The finance department comprises of 7 people including the manager. The Manager should have separate cabin with table ,4-5 chairs along with file racks, locker & telephone ,desktop & separate printer.

The rest of others have separate table and chairs with desktops.

staff should have automatic common printer at centre place. File racks and lockers are provided for staff also, 3 for each.

FINANCE

Manager 1

Executive 2

Officer 2

Accountant 1

Helper 1

TOTAL 7

5. PURCHASE DEPARTMENT/ SOURCING– Vendor selection – Raising indent/PO – Sending PO to supplier/s – Price determination/negotiation with the supplier/s – Taking follow up from the suppliers – Solving financial disputes (if any)

The Purchase & sourcing department comprises of 5 people including the manager. The Manager should have separate cabin with table ,4-5 chairs along with file racks, cupboard, locker , telephone , desktop & separate printer. The rest of others have separate table and chairs with desktops & automatic common printer at centre place. File racks and lockers are provided for staff also, 1 for each. Telephone lines are also provided for each staff. There is also a Fax machine required at common place near to printer. All the desktops are linked via ERP software.

PURCHASE AND SOURCING

Manager 1

Fabric Sourcing Executive 2

Trim/Accessories Sourcing executive 1

Sourcing Asst. 1

TOTAL 5

6. MARKETING– Approach to new buyer – Introduce/advertise for the company – Study of strong competitors in the market – Working on marketing strategies and building strong USP for the product

The marketing department shall accommodate the 9 marketing staff including a head of the department. The major activities include processing information regarding order placement, delivery dates, order status, quality report, etc. All the activities are confined to desktop.

All the marketing staff shall have separate table and chair with desktops, while the head of the department shall have a separate cabin furnished with table, chair, telephone , desktop and cupboard. All the desktops in the marketing room are linked via ERP software. The application server for the marketing room is housed in the room itself.Telephone lines are also provided for each staff.

MARKETING

Manager 1

Sr. Executive 2

Officer 6

TOTAL 9

7. COMMERCIAL DEPARTMENT

• Maintaining an taking care of the logistics • Custom clearance • Define business terms • Generating and collecting documents and present it to the bank or the buyer • Discrepancies are taken care

The commercial department comprises of 4 people including the manager. The Manager should have separate cabin with table,4-5 chairs along with file racks, cupboard, locker ,telephone, desktop & separate printer. The rest of others have separate table and chairs with desktops & automatic common printer at centre place. File racks and lockers are provided for staff also, 1 for each. Telephone lines are also provided for each staff. All the desktops are linked via ERP software.

COMMERCIAL

Manager 1

Sr. Executive 1

Officer 2

TOTAL 4

8. MERCHANDISING• BOM generation • Sending and receiving mails to the buyer • Making the tech pack for newly developed styles • Revising the samples according to the buyers comments during the sampling

process• Taking follow up from the concerned dept.

The merchandiser’s room will accommodate the Senior Merchandiser and his/her staff. The major activities shall be desktop job, attending telephone calls, replying through emails and calls, etc.

The Senior Merchandiser shall have a separate cabin, while the others shall have separate tables and chairs. The Senior Merchandiser’s cabin shall also have chairs to receive 5-6 People in his cabin & capacity for 4-5 waiting. Model merchandising charts, SOP’s, Time and action charts will be displayed in the merchandiser’s room. All the desktops in the merchandiser’s room shall be linked through ERP software & printer. It will also consist of an application server. The merchandising staff including the Senior Merchandiser will be 9. The merchandising room shall have file racks and cupboards for stacking files and approved samples. The file racks shall be three in number and file racks two in number.

MERCHANDISING

Senior Merchandiser 1

Merchandiser 4

Asst. Merchandiser 4

Total 9

9. QUALITY• Fabric inspection (4 point system) • Fabric testing- gsm, shrinkage, epi /ppi • Shade sorting (grouping) • Trim quality inspection at 2.5 AQL • Panel size checking • Panel quality checking • Inline checking • End line checking • Presentation checking • Final checking after ironing • Measurement checking • Final audit at AQL level as per buyer’s instruction• Random quality audit by QC

The Quality department comprises of 51 people including the manager. The Manager should have separate cabin with table, 4-5 chairs along with file racks, cupboard, locker, telephone, desktop & printer.

The rest of others 6 (Sr. Executive & Executive) have separate table and chairs with desktops, file racks and lockers, 2 telephone lines are also provided for staff. All the desktops are linked via ERP software.

QUALITY ASSURANCE DEPT.

Manager 1

Sr. Executive 1

Executive (Cutting) 1

Executive (Sewing) 3

Executive (Fabric & Trim) 1

Quality Controller 3

Auditor (QA) 3

End line checker 3

In Line Checker 9

Fabric Checker 3

Final Checker 18

Panel/Peripheral Checker 2

AQL auditor 2

helper 1

Total 51

10. CAD

• Digitization • On screen pattern construction • Grading done on size basis. • Size correspondence • Piece assembly • Marker planning • Plotting • Piece rotation • Pleats, trace, cut, combine, shrink, stretch, flip, Rotate pattern. • Removing and adding patterns

The CAD department comprises of 4 people including the manager. The Manager should have separate cabin with table, 2-3 chairs along with file racks, cupboard, locker, telephone, desktop & separate printer.

The Operator has separate table and chairs with desktops & a plotter (72 inch), Digitizer board at other side. File racks and lockers, CD holders, 1 telephone line etc. The desktops are linked via ERP software.

Proper area required for digitizing the patterns, preparing the markers and taking their printout,

CAD

CAD In-charge 1

CAD Operator 2

Helper 1

TOTAL 4

11. IED (INDUSTRIAL ENGINEERING) DEPARTMENT

• Perform time study • Perform motion study • Operation breakdown of all styles • Line plan • Line balancing • Skill matrix • Hourly production monitoring • First hour efficiency loss calculation

INDUSTRIAL ENGG. DEPT.

Manager 1

Sr. Executive 1

Executive 2

Computer Operator 1

Method/Technical Executive 3

Time Study operator 8

TOTAL 16

The IED comprises of 16 people including the manager. The Manager should have separate cabin with table, 4-5 chairs along with file racks, cupboard, locker, telephone, desktop & separate printer.

The others 5 have separate table and chairs with desktops & automatic common printer at centre place. 3 File racks and lockers are provided for staff. 2 Telephone lines are also provided for staff. All the desktops are linked via ERP software

12. PRODUCT PLANNING AND CONTROL

• Prepare time and action calendar • Breakdown of the order received from the buyer • Scheduling • Organizing preproduction meeting • Send PO to all concerned departments • Follow up from concerned dept. • Planning performance evaluation

The PPC comprises of 4 people including the manager. The Manager should have separate cabin with table, 4-5 chairs along with file racks, cupboard, locker, telephone, desktop & separate printer.

The others 3 have separate table and chairs with desktops & automatic common printer at centre place. 3 File racks and lockers are provided for staff. 2 Telephone lines are also provided for staff. All the desktops are linked via ERP software

PPC

Manager 1

Asst. Manager 1

Executive 2

TOTAL 4

13. IT (INFORMATION TECHNOLGY) DEPARTMENT

• Updating the company’s website • Resolving the errors in the website • Checking the hardware and software updates available and install new ones if

required • Explaining the functions of the software to the employees who will be using it ERP department comprises of 2 assistant. They should have separate cabin with 1 table, 4 chairs along with file racks, cupboard, locker, telephone , desktop. The desktops are linked via ERP software. A place to keep the circuit, wires, CD etc & a white-board, marker to guide if any technical problem arise.

IT

ERP Asst 2

TOTAL 2

14. EDP DEPARTMENT

• Maintaining connectivity of ERP • Computer maintenance and technical support • Telecommunication maintenance • Antivirus upgrade/ software upgrade etc • Assistance for new software implementation • Maintenance of external hardware also like printer, plotter, digital camera etc

The EDP department shall house all the database servers. The department staff is 1 in number. So will be provided with 1 table and 3 chairs. It is stressed that this department is temperature regulated. The space accommodating the database servers will be an enclosed cabin inside the EDP department.

The enclosed cabin shall also house batteries, and other maintenance equipments required for the server maintenance. This dept have a separate wooden shelf to keep networking hub, Internet net router etc. Place also to keep accessories & small computer parts.

EDP

EDP Executive 1

TOTAL 1

15. DATA ACQUISITION

• Record the production • Dispatch/ issue record slip maintenance • Record actual production per day & hour • Producing actual production report • Inform to top management in alarming situation

The Data department comprises of 10 people including the manager. The Manager should have separate cabin with table, 4-5 chairs along with file racks, locker & telephone ,desktop & separate printer.

The System Officer have separate table and 4 chairs with desktops.

1 File racks and 1 locker. 1 table ,4 chairs, 1 File racks and 1 locker also for Production writer.

DATA ACCQUISITION

System Manager 1

System Officer 1

Production Writer 8

TOTAL 10

16. ELECTRICAL/UTILITY DEPARTMENT

• Maintain electrical equipments , wires, bus bar management • Transformer /MCB/generator maintenance • Compressor/boiler maintenance • Electrical safety and routine checking •  Maintenance of Band knife & Straight knife.

MAINTAINENCE DEPARTMENT

• Maintenance of all the machinery on sewing floor. • A stock register is maintained which gives an idea of the machinery stock for the

factory. • Keep buffer of the spares. • At the end of every month, a stock statement of machinery & spares is generated

& sent to HO. • Help during new batch setup

The department comprises of 9 people. The dept. have big cabin with table ,4-5 chairs along with file racks, 4-5 cupboard ,telephone , desktop. Desktops is linked via ERP software.

The cupboard with locking system for keeping Electrical instruments, Sewing Attachments & work aids.

MAINTAINANCE AND UTILITY

Sr. Mechanic 1

Electrician 1

Asst. Electrician 2

Mechanic 4

Boiler Operator 1

Total 9

17. TECHNICAL DEPARTMENT

• Spec sheet development • Spec sheet evaluation sent by buyer • Determining level of technology of machine required • Solving any sort of technical problems

The department comprises of 2 people. The dept. have cabin with table ,3-4 chairs along with file racks, 2 cupboard ,telephone , desktop. Desktops are linked via ERP software. The pin-board for new sewing technology display.

TECHNICAL

Garment Technologist 1

Helper 1

TOTAL 2

Note:

In overall, the tables, racks and chairs in the service block shall constitute 40% of the total building space.

PRODUCTION BLOCK

1. PRODUCT DEVELOPMENT AND SAMPLING

Product development

• Inspiration • Theme selection • Style board • Fabric/trim/accessory selection • Market research • Making silhouette • Develop the sample

Sampling

• Manual pattern making • Fabric cutting for samples • Sewing the samples • Fit analysis on the dummies • Pressing • Measurement checking • If problem arises in fit/measurement manipulate the pattern

SAMPLES PRODUCED

• Development sample• Proto sample• Salesman sample• Fit sample• Green tag sample• PP sample• Size set

The Sample dept. comprises of 21 people including the manager. The Manager should have separate cabin with table, 4-5 chairs along with file racks, cupboard, locker, telephone, desktop & separate printer.

The others 5 have separate table and chairs with desktops & common colour printer at centre place. 3 File racks and lockers are provided for staff. 1 Telephone lines is provided

for staff. All the desktops are linked via ERP software. One big rack for keeping the patterns for reference.

PRODUCT DEVELOPMENT AND SAMPLING

Manager 1

Development Executive 2

Sampling Supervisor 1

Pattern Master 1

Tailor 10

Spreader 2

Cutter 1

Ironer 1

Helper 2

TOTAL 21

2. FABRIC/TRIM STORE DEPARTMENT

• Receive the raw material • Check the delivery challan • Do fabric inspection using 4 point inspection system • Record input, issue &balance • Issue fabric for cutting as per day planning. • Issue the trim to swing dept. as per order.

The stores shall have a space to store fabrics, accessories and trims of varying densities. It also stores Fabric roll, spare parts for the machineries. Provide space for bulk, rack, and bin storage, aisle space, receiving and shipping space, packing and crating space.

The main intention is to provide a dry environment for the purpose of storing goods and material that require protection from the elements.

The object is also to keep near to exit gate so while input of material truck will easily reach at store.

Apart from the storage space, there shall be docking space for one truck at a time and space for accommodating stores service staff. The stores service staff are 5 in number. Each of them are provided with table, chair and a desktop. All their activities are linked through a ERP software.

Besides the service staff, loading and unloading staff are also there. They are 11 in number. The loading/unloading equipment includes forklift and manual both. The stores shall have a direct entry from the docking area and an entry from service block as well. And it shall have two exits, one in docking area and the other near cutting section.

FABRIC & TRIM STORE

Manager 1

Assistant 4

Helper 11

Total 16

TRIM STORE AREA CALCULATION

Cabinet size = 2x2x2 qft.

Trims Required

Main label = 2500 + 2 % extra per day

= (2500+50)x20 for 20 days

= 51000 units

= 510 bundle each of 100 unit

Care label = 510 bundle

Size label = 510 bundle

Jocker label = 510 bundle

cabinet required = 10

Button Requirement

total quantity = (2500+50)x5x20

= 255000 units

= 255000/144

= 1770 gross for 20 days

Cabinet required = 2 for buttons

Sewing Thread Requirement

Over lock thread = 221x2500x20/5000

= 2210 cones each of 5000 meter

Button Sew Thread = 3.5x2500x20/5000

= 35 cones

Label Thread = 1x4x2500x20/5000

= 40 cones

Pocketing Thread = 11x2500x20/5000

= 110 cones

Shanking thread = 0.5x3x2500x20/5000

= 15 cones

Tacking Thread = 1x2500x20/5000

=10 cones

Bobbin Thread = 81x2500x20/5000

= 810 cones

Binding Thread = 1x2500x20/5000

=10 cones

Top Stitch thread = 14x2500x20/5000

= 140 cones

Box size containing 10 cones = 12 inchx 6 inch x 5 inch

one cabinet accommodate = 40 box

total cones required = 3380

cabinet required = 10

Zipper Required = 1x(2500+50)x20

=51000, avg length 6.5 inch

cabinet required = 5

waist band curtain = 1.2x2500x20

= 60000 mtr

= 60000/300

= 200 rolls

cabinet required = 1

cabinet required for tags and poly bags = 2

total cabinets = 30

Area required for racks = 10 feet x 14 feet

Trim inspection table = 2, size 5 feet x 3 feet

One table and chair for store Incharge

Total area required for trim store = 25 feet x 18 feet

= 450 sq feet

FABRIC STORE AREA CALCULATION

• Body Fabric consumption = 1.5 mtr • Capacity = 2500 garments/day• Garments to cut = 2500 + 20% extra

= 3000 per day

Fabric required / day = 3000x1.5

= 4500 mtr

= 4500/150

= 30 rolls / day

For 20 days = 30x20

= 600 rolls

Pocket fabric = 80 rolls (0.27x0.91x3000x20/200)

Interlining = 20 rolls (0.064x.91x3000x20/200)

Pocket binding = 2 rolls (0.007x.91x3000x20/200)

Total Rolls = 702

• Roll Dia = 10 inch• Require 2 rack for 600 rolls (body fabric)

• Rack size = 27 feet x 5 feet (5x4, 15 roll in each section)• Rack size = 11 feet x 5 feet (2x4, 15 roll in each section)• Space for Trolley = 15 feet x 5 feet• Inspection Machine = 5.7 feetx 6.5 feet• Inspection table = 5 feetx 3 feet• Weighing scale = 4 feetx 4 feet

Total area of fabric store = 44 feet x 28 feet

= 1232 s ft

3. CUTTING

• Receive production plan • Receive work orders • Receive fabric • Prepare cut plan • Spreading • Fabric consumption cross checking• Cutting• Ticketing• Bundling• Lay slip generation• Re-cutting• Fusing• Feeding to batch

The cutting department comprises of 33 people including the manager. The Manager should have separate cabin with table ,4-5 chairs along with file racks, cupboard, locker , telephone , desktop & separate printer. The desktop is linked via ERP software. The cutting in-charge have separate table and chair.

The major activities in the cutting room are spreading the fabric, cutting the lay, bundling the cut parts, stickering the panels and storing them. The cutting room shall accommodate spreading tables, cutting machines, bundling and stickering tables, fabric racks and material handling equipments. The cutting room shall have entrance big enough to move fabrics from the store to the cutting room by means of material handling trolley.

The cutting activity will generate noise. Ensure the cutting activity space is sufficient so that the decibel level shall be below 85 dBA. Plaid matching involves fine work, hence the adequate lighting of the order of 100 lux in the horizontal plane at a level of 90cm above the floor be provided. The light need to shine directly onto the exact area where the fine work is being carried out. There shall be only artificial light in the cutting room.

Rest of the parts of the cutting room shall have regular lighting requirements of minimum 65 lux in the horizontal plane at a level of 90 cm above the floor.

CUTTING

Manager 1

Cutting In charge 1

Spreader (Auto Spreading) 1

Spreader (Manual) 4

Cutters 3

Band knife cutters 1

Re-cutters 2

Ticketing 12

Fusing helpers 8

Total 33

CUTTING ROOM CAPACITY

Lay Length = 9 mtrs

No of plies per lay = 60

Total length of fabric = 60X9 = 540 mtrs

Average Roll Length = 150 mtrs

Rolls required per lay = 540/150 = 3.6 ≈ 4

Roll change time = 2 mins

Total roll change time = 4X2 = 8 mins

Brown sheet spreading time = 3 mins.

Spreading time laying ply = 27 secs

Total time for lays of 60 ply= 27 mins.

Total time = (27+3+8)= 38 mins.

Machine Allowance @ 10% = 3.8 mins.

Personal & Fatigue allowance @11% = 4.2 mins.

Contingency Allowance @3% =1.2 mins.

Policy Allowance @3% = 1.2 mins.

Total Time = 48.4 mins ≈ 49 mins.

Cutting Time= 20 mins

Total spreading & cutting time = 69 mins.

Garments cuts per lay= 60X6 = 360 units

Total garments cut in 8 Hrs = (360X480)/69

=2504 units/shift/table

So we require 2 spreading table to cut 3000 garments in one day.

Total area of the cutting room = 3850 Sq Ft.

4. SEWING DEPARTMENT

• Cut parts received from cutting section • Parts stocked in racks • Parts preparatory • Random garment inspection by supervisor/Floor In-charge/ A.P.M • Parts number setting • Garment assembly section • Random garment inspection by supervisor/Floor • Inspection by In-charge/ A.P.M

KAJA – BUTTON SECTION

• Receive garments from Batch • Size Segregation • Counter Checking • Bartack marking • Bartack/ key hole/ Snap, etc checking • Button marking• Button Attachment• Shanking • Button Hole making• Button Hole stitching• Alteration back to operator • Send for washing

The major activities include sewing operations, sewing preparation operations, sewing maintenance, quality and service work. The sewing room also generates noise. The machine density on the sewing floor shall be 55% of sewing room space. So ensure adequate sound proofing inorder to keep the noise levels below 85dBA. The lighting requirements should be 65 lux in the horizontal plane at a level of 90cm above the floor.

The sewing department comprises of 355 people including the manager. The Manager should have separate cabin with table,4-5 chairs along with file racks, cupboard, locker , telephone , desktop & separate printer. This office is not in sewing department. It should be near admin or other office place.

All the activities are centrally connected by ERP software. The cabin shall also house the application server. Besides the service cabin, a separate cabin is provided for the sewing maintenance department. The maintenance department shall house the maintenance equipment upon tables and racks for storing the spare parts. The racks and the tables shall constitute around 70% of the maintenance department space.

The sewing room shall have more than one entrance and one exit to facilitate smooth movement of materials and people inside the department. Besides two entrances and exits, it shall also have emergency exits in the event of fire accidents.

For end line inspection tables located at the end of each line (totally 6 lines), the illumination requirements should be 100 lux at a level of 90cm from the floor. Racks are provided at peripheral of sewing room for storage.

SEWING

Production Manager 1

Asst. Production Manager 1

Production Executive 3

Supervisors 3

Sewing Operators 328

kaja button section 10

Feeders 6

Helpers 3

Total 355

AREA REUIRED FOR SEWING SECTION

Target output = 2500 units/day

SAM = 44 min

Work stations required = 2500x44/480

= 230

We plan 2 batch each of 100 work stations, 4 rows in each batch, 25 work stations in each row.

And 30 work stations for preparatory section.

And 10 work stations for kaja button section,

Waste departments also in sewing section, total 10 working stations in this section.

Width of one batch = 42+5+42 = 89 inch

Gap between two batch = 32 inch

total width of section = 89x5+32x4 inch = 48 feet

Total width including asley six feet each side =48+12

=60 feet

LENGTH

25 work station in each row

Length = 25x4= 100 feet +space for feeding and end line checking table and storage racks

Total Length = 120 feet

Total area of sewing section = 120x60

= 7200 sq ft

5. WASHING

– Fill Water in machine– Garments loaded – Cycling for 2 – 3 minutes – Pour detergents desizing – Rinse – Enzyme detergent – Rinse – Softener – Unloading – Hydro extractor – Drier – Unloaded from dryer – Send to finishing dept.

The washing department comprises of 13 people including the Section Incharge. The Section Incharge & supervisor should have abin with 2 table 7-8 chairs along with file racks, cupboard, locker , telephone , desktop & printer. All the desktops are linked via ERP software.There also required place for chemical storage.

WASHING

Section Incharge 1

Supervisor 2

Operator 4

Helper 8

TOTAL 15

6. FINISHING AND PACKING DEPARTMENT

• Receive garments from Washing unit • Style/size/colour segregation• Trimming

Inside checking

• Rough Ironing /seam bursting Outside checking

• Waist band ironing• Thread sucking• Presentation checking• Measurement checking• Final ironing• Folding• Tagging• Poly bag packing• AQL AUDIT• Carton packing

The major activities in the finishing room constitute finishing operations like pressing &material handling and transport. The finishing machines be located near the windows to facilitate easier and quick disbursement of steam to the external atmosphere.

The packing contains folding, final checking, packing etc. So proper place for storing is required for it.

The finishing & packing department comprises of 65 people including the manager. The Manager should have separate cabin with table, 4-5 chairs along with file racks, cupboard, locker , telephone , desktop & separate printer. The rest of others 4 have separate table and chairs with desktops. File racks and lockers are provided for staff also, 1 for each. 1 elephone lines is also provided for staff. All the desktops are linked via ERP software.

FINISHING/ PACKING

Manager 1

Production Executive 2

Supervisors (ironing) 1

Supervisor (Packing) 1

Spot Washer 1

Darner 1

Ironers 18

Folder 18

Helper 10

Packers 12

Total 65

FINISHING SECTION

Table size = 12 feet x 6 feet

Tables required for sorting

4 workers per table

Output/table = 480x4/1 (time required for sorting/unit 1 min)

= 1920 units per day

So we require 2 tables for sorting 2500 garments.

Tables required for trimming

Six trimmer per table

time for trimming/unit = 2 min

Output/table = 480x6/2

= 1440 units/day

So we require 2 tables for trimming for 2500 garments

similarly 2 tables required for inside and out side checking respectively.

Pressing Tables

For seam bursting = 6

For waistband ironing = 3

For final ironing = 9

Final ironing time = 1.5 min

Tables required = 2500x1.5/480

= 7.8

= 9

Ironing table dimension = 5ftx2.2 ft

One thread sucking machine =4 ft x 2.2 ft

One stain removing work station = 4 ftx 1.8ft

One darning station =4 ftx2 ft

Two tables for measurement checking

Two tables for folding

Two tables for tagging

Two tables for poly bag packing

One cabin for finishing manager = 10ftx6ft

Total area of finishing section = 121ftx40ft

= 4840 sq ft

7. FINISHED GOODS WAREHOUSE

• Allocate space for storage of accepted and rejected goods • Keep the goods ready for loading as per the PO quantity delivery before the

specified date at the allocated space • Maintain records as per PO number • Load the lorry as per PO • Give receipt for loaded goods to the concerned person of transportation

The finished good warehouse comprises of 4 people including the Section Incharge .The Section Incharge & supervisor should have cabin with table ,4-5 chairs along with file racks, cupboard, locker , telephone , desktop & printer. All the desktops are linked via ERP software.

Proper allocation of quality passed, awaited & ready to dispatch is notified.

WAREHOUSE

Section Incharge 1

Supervisor 1

Helper 2

TOTAL 4

8. WASTE DEPARTMENT

• Collect rejected garments • Check the usable/non usable waste • Correct the defected parts by means of removing/matching/ recutting /joining etc

The Section Incharge will take all decisions and required steps to correct the damaged garment. This is nearby Sewing & cutting so will be helpful in finding the damaged garment and fabric. They required a small space & only one table chair for Section Incharge.

WASTE DEPARTMENT

Section Incharge 1

Operator 6

Helper 2

TOTAL 9

9. ETP DEPARTMENT

•  Store the used water from washing in chamber. • Treatment of polluted water for reuse.• Supply the water to treatment section as

– Filtration tank – RO – Pressure sand filter – Activated carbon filter – Chlorinator – Softener

• Supply the treated water again for washing & other use.• Disposal of residual sludge as per environmental norms.

This should be out-side of factory and proper savage should be given for waste water. The water flow should be un-interrupted & directly go from finishing, washing to ETP plant. The provision also for input of treated water in washing section. So proper storage should be there for input waste water & output frest water.

This comprises of 2 people including Section Incharge. The Section Incharge will take all decisions and required steps. They required a small space & only 2 table & 3 chair.

ETP

Section Incharge 1

Supervisor 1

TOTAL 2

TOTAL WORK FORCE

S.NO DEPARTMENT NUMBER

1 ADMINISTRATION 2

2 HUMAN RESOURCE 25

3 FINANCE 7

4 PURCHASE DEPARTMENT/SOURCING 5

5 MARKETING 9

6 COMMERCIAL 4

7 PRODUCT DEVELOPMENT AND SAMPLING 21

8 MERCHANDISING 9

9 PRODUCT PLANNING AND CONTROL 4

10 QUALITY 51

11 CAD 4

12 TECHNICAL DEPATMENT 2

13 IED 16

14 IT DEPT 2

15 EDP 1

16 DATA ACQUISITION 10

17 WASTE DEPT 9

18 MAINTAINANCE 9

19 FABRIC/TRIM STORE 16

20 CUTTING 33

21 SEWING 230

22 WASHING DEPT. 15

23 FINISHING AND PACKING 65

24 FINISHED GOODS WAREHOUSE 4

25 MEDICAL 2

26 ETP 2

TOTAL 557

MACHINE USED IN SEWING SECTION

MACHINERY NO. WATT PER M/C

S/N 131 72050

3th OL 12 6600

5th OL 4 2200

Automatic Pocket welt 4 2200

B/H 3 1650

DN LS 3 1650

SNLS E/C 14 7700

BELT LOOP 2 1100

DN CS 5 2750

BUTTON SEW 2 1100

BAR TACK 4 2200

HOOK/BAR 3 1650

     

TOTAL 187 102850

MACHINE USED IN SEWING SECTION

MACHINERY NO. Unit Cost(US$) Total Cost WATT

SNLS 131

995

(Juki, DDL8500-7)

130345

72050

3th OL 12

1550 (Pegasus M852) 18600

6600

5th OL 4

1550 (Pegasus M852)

6200 2200

Automatic Pocket welt 4 21000 (Brother, BAS 605)84000

2200

B/H 31450

(JUKI MB-372)

43501650

DN LS 3 1495 (Juki, LH 1152-6) 4485 1650

SNLS E/C 14 850 (Juki DLN522) 11900 7700

BELT LOOP 2 1100

DN CS 5 1050 (Kansai, DPF-1404) 5250 2750

BUTTON SEWER 2995 (Brother, B917) 1990

1100

BAR TACK 4 2650 (Brother KE430C) 10600 2200

HOOK/BAR 3 1650

     

TOTAL 187 in US$ 277720 102850

OTHER MACHINES

MACHINERY NO.

UNIT COST

US$

TOTAL COST

WATT PER M/C

Fabric Inspection m/c 1 1500

Auto Spreading m/c 1 26090 (Oshima K5-190) 26090 5000

Band Knife 14321 (Oshima OB900A/C) 4321

750

Straight Knife 21664 (Eastman blue streak)

332870

Edge Cutter 1750 (Eastman BBB-32) 750

70

Fusing m/c 2 8968 (OP-60LNII OSHIMA) 8968 4500

Ironing Table 182199 (Reliable 522 HA) 39582 wd steam

generator

Spot Washing 1 750

Thread Sucking m/c 1 3700

Needle Detecting m/c 1 90

Sample Washing m/c (6.5 kg) 1

Bulk Washing (200 kg) 2

Hydro extractor (50 kg) 1  

Tumble Dryer (50 kg) 1

Boiler 1

Compressor (40 HP) 1 15349 (QRS30HPD-125) 15349 25000

Generator (380 KVA) 1 30000 (Westinghouse D07) 30000

Computer systems 30 445 13350 21000

Photocopy m/c 1 1589 (Xerox Pro 16FX) 1589 1000

Printer 10 1000

Fans 30 35 (Bajaj) 1050 1200

Tube lights 550 3 1650 22000

Water cooler 3 334 1002 1125

Specific Markets

Product

Our product has been designed by the latest in computer aided design. We are able to manufacture our complex product on computer driven assembly lines using the latest in robotics manufacturing. This gives us a tremendous price advantage.We intend to market our complex product through all the normal channels available to simple product. These include retail, wholesale. To penetrate this market efficiently and swiftly, we intend to initially use commission sales representatives strategically located throughout the country. We also will start a national advertising campaign targeting the end user in various national publications and on national TV commercials. Our sales representatives will be chosen based on their own experience in the marketplace. It is our intention to hire the best and the brightest among those currently available. Our marketing tests included many of the reps we initially would like to hire.ServiceOver the past few years, we have noticed an increase in demand for branded trousers.We intend to attack this market very aggressively through the use of:

1. A pool of 10 telemarketers.

2. Advertisements in upscale magazines.

3. Radio advertisements on weekends.

4. Sales calls on real estate management companies.

As we are offering a unique service, informing the public of our capabilities is of utmost importance.

Growth Strategy

Product

After having successfully introduced the complex product into the Indian market, our expansion will be in two separate areas: increasing sales in the India and entering various foreign markets.After we have reach our first year sales goals, we intend to offer our sales reps the Panache Fashions to sell our products exclusively by joining our company. We expect that a small percentage will desire to remain independent and these will have to be replaced with our own sales force. We intend to develop further sales reps from within by hiring and training them in our own sales .We will increase national advertising and begin targeting smaller accounts and specialty outlets. Additionally, we will conduct in house seminars for various OEM’s demonstrating how the inclusion of complex production into their own products will increase the value of their products.ServiceAfter having successfully completed this entry phase into this market in the geographical are we have chosen, we will then expand our market by doing the following:

1. Expand telemarketing pool to 20.

2. Increase number of direct sales reps.

3. Expand into neighboring cities.

Finally reaching the goal decided by BOD.

Market Size and Share

The market for trouser is estimated at $8 Billion annual sales based on data furnished by Analogue Survey. We estimate that we can achieve 15% market share within 5 years.

The India trouser tale is stitching new trends. The premium branded market, in terms of value and volume, is on the upswing.

Estimated at Rs 18,230 crore, the trousers market in India registered a growth rate of 13.13 per cent in value terms in 2007 over the previous year. This growth gains significance in view of the fact that the volumes Panache Fashion just 3.74 per cent for the same period, at 12,022 crore units in 2007 as compared to about 1,950 units sold in 2006. The growth in value and volumes in the previous year was 12.53 per cent and 3.62 per cent respectively. The demand, therefore, is now more skewed towards premium offerings in trousers, says the monthly that would hit the stands shortly.

A countrywide IMAGES Fashion Survey reveals that among trouser brands,

Allen Solly is the most popular with more than 10 per cent of the 2,500-odd respondents in the 15-55 years age group with a monthly household income of more than Rs 15,000.

Park Avenue emerged the second most popular brand followed by Blackberrys, Colorplus and Van Heusen in the order. Nearly 32 per cent of the total respondents had purchased these top five brands, which is quite a sizeable market. The study took into account only ready-to-wear trousers.

According to the IMAGES-KSA Technopak 2007 study, the Indian market is currently valued at Rs 78,094 crore in value terms, which is an overall growth of 12.5 per cent over 200, when it stood at Rs 69,401 crore. The womenswear segment and also the trousers segment have grown at a higher pace than the overall industry average in value terms, which means the market has experienced tremendous value addition during the last one year. This is reflective of an increasing market share being aPanache Fashionsropriated by the organised segment.

The men's trouser market in India, valued at Rs 32,640 crore for 2007, has grown 12 per cent over the previous year in value terms, though volumes have grown just 3.6 per cent. The IMAGES-KSA study observes a general tendency of customers' upgrading to premium brands and labels and thereby driving volumes in this sub-segment. Trousers share a similar trend, except that the volumes growth in this category is much higher as compared to shirts because more and more customers are now experimenting with ready-to-wears.

With more women trouser out to work, the women's trousers market has also been growing at an impressive 27 per cent in value terms over the past two years and the volume growth has also been remarkably high, at 10 per cent during 2006 and 2007. Womens wear constitutes less than 30 per cent of all branded trouser sales, which is only 50 per cent the size of the men's branded market. More so, within women's ready-to-wear items, the share of branded clothing is just 22 per cent.

On the brand preferences, Allen Solly, Park Avenue , Wills Sport, Levi's, Lee emerged as the most popular brands.

Targeting New Markets

To continue our growth, we will be using the following methods to expand our markets and to increase our new areas of doing business:

Customer contact – To fulfill their needs

Look for quality products

Trade shows

Government trade leads

State Government trade leads

Market surveys

Research & development

The new market is for fashion and money. The better quality we provide the better customer we get. So our target for new market is High-middle class family who love quality but price is also big concern for them.

Location

MANUFACTURING

The manufacturing unit is in Bangalore. The area is suitable for manufacturing as because of.The company is located at the heart of Garment Industrial Area and it is nearly 15 Km away from the heart of Bangalore city. The location will be more convenient as it mainly works as a jobber unit of different garment manufacturing industry.

The start-up will have to face major big players in the market but soon with our USP of Quality product & Customer satisfaction, we will trap the market. We hope then new OPanache Fashionsortunities start and our Trouser manufacturing unit start flourishing. We planned to produce 2500 quality trousers per day with 96% quality performance

RETAIL

This business will be operated at Bangalore. This location is desirable because:We are renting this building on a 10 year lease. We will have renovations costing $836 based upon three estimates. The building is zoned R-3, commercial use.

1. The building is structurally compatible for our use.

2. The rent is below market

3. The building has the necessary facilities to operate this business.

4. The location is convenient for our freight companies, suPanache Fashionsliers, clients and employees.

5. Possibility of expansion in the area.

The retail we plan will be executed after 3 years. We initially dependent on the big retailers in market.

Then slowly shift to our own shop.

The market for our product is the high middle class people who love quality product & like new trends in market. Marketing Plan section has to be more effective regarding

customer satisfaction & advertising product. The initial markets are few big & matured retailers, then slowly build our own market & make brand value

Research & Development

We have already spent a considerable amount in researching and developing our complex product. We have a very simple laboratory equiPanache Fashionsed with the basic research equipment we need. We have thus far been able to discover lighter materials and several cost cutting manufacturing methods. Presently our research is being supervised by our Technical team. Our next research project will center around using this new Fibre in our manufacturing processes and testing of a new material that has come to our attention. To this point, our research has paid for itself as we have been keying on bringing this new product to market. However, now that we are becoming more experimental in our research efforts such a continued success ratio can not be maintained.

COST STATEMENT FOR BUSINESS PLAN

AREA REQUIRED = 22000 Sq. Ft.

COST = 22000 X11 US$

= 242000 US$

BUILDING COST = 555555 US$

ELECTRICITY FITTINGS = 55555 US$

FURNITURE AND OFFICE ACCEESSORIES

= 44444 US$

TOTAL MACHINE COST = 424749 US$

TOTAL FIXED COST = 1322303 US$

RAW MATERIAL COST = 1.5x200 Rs/UNIT

= 6.6 US$

ACCESSORIES = 0.44 US$

FACTORY OVERHEADS = 2 US$/UNIT

Depreciation @ 10 = 132230 US$ /YEAR

= 0.17 US$/UNIT

TOTAL MANUFACTURING COST = 6.6+0.44+2+0.17 = 9.21 US$

SALES AND DISTRIBUTION COST = 1.5 US$

PROFIT @ 30 % = 3.2 US$

PRICE = 9.21+1.5+3.2

= 14 US$

TARGET OUTPUT = 2500 UNIT/DAY

REVENUE/YEAR = 2500x311x14

= 10885000 US$

PROFIT/YEAR = 1488000 US$

BREAK EVEN POINT = Total Fixed Cost/Profit Per Year

=1322303/1488000

= 0.89 YEAR

= 11 MONTH