STAR WASHING PLANT

PREPARED BY TANZIRAL ZAHARA ZABIN ID 1030323 TAIYBUNNESSA WORTHI ID 1020690 FARJANA AHMED ID 1020720 NUJHAT MORSHED ID 1030458 COURSE ID MGT 490 SECTION 2 GROUP 3

SUBMITTED TO: MR. HANIF MAHTAB

The Business Description First of all, I and three other friends of mine, altogether four of us are planning on a business together. After some research and discussion, depending on our investment amount, we make a decision to start our business in washing plant in industrial garments. The garment textile industries provide the single source of economic growth in Bangladesh's rapidly developing economy. Garments are the principal source of foreign exchange earnings. Industrial garments washing is one of the major important parts for textile sector. By industrial garments washing we can remove dust, dirt and infections material. There are many types of industrial wash. These are: Normal Detergent Wash, Bleach Wash, Stone Wash, Acid Wash, Enzyme Wash, Combined Wash and etc. As our business will be small during the initial stage, our financial structure will be small in the industry too. Starting as a small business will increase and expand our working area in the future. Initially, we will equally invest 15, 00,000 TK each in total 60, 00,000 TK. We spend this amount of money for renting floor, office decoration, buying machineries and chemicals, transportation and fees for permission. Investment contract have to be gained to obtain permission from the board to invest in the business. Then is the partnership deed which has to be managed to get the joinstock certificates (proof that all the members are investing on the business). City corporation trade license is also needed. Environmental certificate is required for environmental issues. We have to take connection of electricity and gas line.

In industrial washing sector, we serve our services to our clients like buying houses and garments companies.

The Service or Product Our service washing and drying is not directly serving people. Basically, it serves other business organizations; it can be garments or buying house. We will wash and dry different types of cloths large recsin, twin pant, t-shirt, full-fit shirt. As we are starting small, we will provide four types of washing activities. They are Normal wash Enzyme wash Color fixing wash

Each order will be taken on dozen bases. By using cost efficiency we will take less in large quantity of order. Garments or directly buying houses can give us order. Most of the time, the buying houses arrange the orders for companies like us. The ordering process is a huge system. Foreign countries give orders to the buying houses. Business Environment Analysis Since our business plan focuses on washing and dyeing part of clothes, its a part of the Garments Industry. We are working with a small sector (washing and dyeing), where different orders come from different clients of different places with fixed delivery periods. There are many competitors in this industry. There are some large companies who solely do all kinds of work, starting from washing, coloring, dyeing, stitching,

cutting and etc, however, small companies like us only concentrates on few activities like we do in washing and dyeing. Different clients have different tastes and demand, hence having customized orders and delivery within a certain period of time. So, basically there are two types of competitors, one is the large companies who solely do all the work, and another is the small companies like us who concentrates on just few activities of the whole process. To reduce intense competition, such business requires Compliance Certificates, it helps to ease the work during high competition. It shows that the work done by the company is done efficiently. As such business is usually considered as B2B business (business to business), it requires to contact the Buying House where information of such companies are available through which we can get our clients. Industry Background It is a portion of the Garments Industry, where lots of activities are done (washing, coloring, stitching, dyeing etc). Our plan focuses on washing and dyeing plant. There are two types of washing, Fabric washing is washing before sewing the cloths, usually includes clothes that are large in length, such as bed sheets. Another is washing after sewing the cloths which finishes the washing part. These two types of washing include machine wash, hydro wash and dyer wash. Enzymes wash or color fixing wash is needed only after sewing cloths. The more we have machineries the more we can be productive and efficient. Wash machine weighs 600 pounds, where the machine wash activity is performed; it can accommodate at least 200-250 clothes inside. So, if we get order to wash 50,000 -60,000 pieces of clothes, we can just imagine the number

of times we will need to put clothes inside the machine, it will be 200 times. So the more machineries we have, we can take more orders and since we are starting new, we can start with just two wash machines weighing 600 pounds, one hydro machine and two dyer machines. It is more of a consolidated industry as there are many other small companies like us, running the industry. Expansion causing economies of scale will help us for future growth. Better use of machineries, client loyalty, on time delivery, efficiency, productivity, trustworthiness, and all these must be achieved in the short term for future growth. Emerging of new machineries will help us to grow. Every year the growth rate increases by 6%, we can predict from 1% to 2% or less for our business in 2 or 3 years.

Competitive Analysis As ours is a B2B business concern, our company is going to be unique compared to other competitors in this field. It will mainly focus on delivering the service in a way that it can be comprehensive and at the same time be cost effective as well. Our company envisages a value-added approach to the work. Besides, we intend to assist our clients to make business transactions in bulk quantities with the minimum of effort and commotion. Our company also focuses on generating new business relationships with various Textile companies. And our main competitors are AGS Washing Plant, Dhaka Washing Plant, Indico Washing Plant, Shopon Washing Plant and Moonlight Washing Plant. We believe that to stay ahead of our

competitors, we have to define our vision clearly. Such as, the company will deliver service with utmost responsibility without making any error. We are determined to put our best effort to deliver quick and flawless service. Aiming to

Achieve the most sought after best leadership quality in the arena of this type of industry.

Provide high quality service and support to the satisfaction of concerned clients. Some of our clients may look for suppliers that will hold stock on their behalf, provide technical consultancy and offer long-term support. Keeping this in mind, we aim to have a clearer chart of our work that will explain our promises and the service we will provide. Also, we intend to maintain a strong personal relationship with our clients and develop trust. As there is little scope for branding in this sector, gaining their trust would help us retain customers.

8. Market Analysis Most of the B2B market follows the 80:20 rule. It means a small number of customers dominate the sales ledger. There are only few companies who can make difference in revenue. Our main customers are Padma Buying House, Southern Knitwear Ltd., Interloop BD Ltd. There are also few other companies that are also considered as our potential customers. We believe that business-tobusiness accounts are increasingly moving beyond requiring effective products

and services and good prices. Many of them are now looking for partnership. So keeping this in mind, we will provide them dedicated value-added services that reflect their importance to us. Based on this we divided our market into three segments. They are: A quality focused segment, which wants the best possible product and is prepared to pay for it. A service-focused segment, which has high requirements in terms of product quality and range, but also in terms of after sales, delivery, etc. These companies tend to work in time-critical industries and can be small or medium. They are usually purchasing relatively high volumes. A partnership-focused segment, which seeks trust and reliability and regards the supplier as a strategic partner. Our customers are regarded as long term customers. In order to meet their expectations, we have to ensure that our services and intangibles meet and exceed customers requirements. Also close attention to our target markets needs place us in a strong position to meet the needs of the market. Our target audiences are smaller and place more emphasis on relationships. It also requires face-to-face contact. So our sales and technical representatives who will visit the customers have an in-depth technical understanding. RISK MANAGEMENT PLAN Risks are involved in every step of the whole washing and dyeing process. Risks of damages such as, tearing of the clothes during a washing procedure, right amount of color to be used, making sure the color of the clothes are not ruined, chemicals

have to used in right proportion to avoid such damages, also, heating should be given in proper proportion through dyer, otherwise, it could cause damage to the clothes. If such accidents happen, then we have to pay compensation. Clients may choose not to pay a proportion of the entire bill based on the proportion of the damage. LOAN PROPOSAL PLAN Since, our company will be a small washing and dyeing company, the amount of loan to be requested shall not be gigantic. As we have mentioned earlier, that our funding showed shortage of TK. 24, 00,000 (lakhs), we will be preparing a loan proposal for that amount. The banks would want to know feasibility, assurance of repayment and profitability in order to even consider looking at the loan proposal. We will make down payment of TK. 5, 00,000 (lakhs) and the remaining TK. 19, 00,000 will be through mortgage. We cannot give any of our private properties as mortgage, as there are risks involved of not getting them back, such as, machineries, if we fail to repay the bank will get hold of the machines. Therefore we will give something that would not be such disadvantageous for us, such as, the firms cover vans for mortgage. If by any chance, we fail to repay, the vans will be taken by the bank, but even after that we will be able to rent other vans for our use, so it would not be such an issue for our operations. As we do not own any vans, when buying the van, the name under which the vans will be purchased is of the bank. The bank will have the original papers of the van and we will have the photocopies. We can use them and continue to pay installments until the

whole amount is repaid. Along with the loan amount, 18% interest rate will be added.