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BUSINESS PLAN for PRODUCTION OF BAMBOO POLE CHAIRS IN TRIPURA National Institute of Design Paldi Ahmedabad 380007 India Centre for Bamboo Initiatives at NID.
BUSINESS PLAN for PRODUCTION OF BAMBOO POLE CHAIRS IN TRIPURA National Institute of Design Paldi Ahmedabad 380007 India Centre for Bamboo Initiatives at NID.
BUSINESS PLAN for PRODUCTION OF BAMBOO POLE CHAIRS IN TRIPURA National Institute of Design Paldi Ahmedabad 380007 India Centre for Bamboo Initiatives at NID.
PRODUCTION OF BAMBOO POLE CHAIRS IN TRIPURA National Institute of Design Paldi Ahmedabad 380007 India Centre for Bamboo Initiatives at NID BUSINESS PLAN - BAMBOO CHAIRS C C 2010 NID NID - IL&FS - TRIPURA BAMBOO MISION CONTENTS GENERAL COMPANY DESCRIPTION 04 PRODUCT 05 PROCESSES IN PRODUCTION OF THE CHAIR 07 MARKETING PLAN 09 OBSERVATIONS ON BAMBOO FURNITURE SCENARIO IN INDIA 10 STRATEG 11 COMPETITION AND INTERNAL GROUP DYNAMICS 12 PROPOSED LOCATION 13 OPERATIONAL PLAN 14 ACCESS 15 HUMAN RESOURCE 16 FINANCIAL PLAN 17 TIPS FOR PRE REVENUE - STARTUP EXPENSES AND CAPITALIZATION 18 FOR INVESTORS 19 FOR TYPE OF BUSINESS 20 RETAIL BUSINESS 21 LIST OF TOOLS 22 RECOMMENDATION FOR ACTION 23 CREDITS AND ACKNOWLEDGEMENTS 24 BUSINESS PLAN - BAMBOO CHAIRS C C 2010 NID GENERAL COMPANY DESCRIPTION The company intends to produce bamboo pole based furniture range that is exemplifed by the bamboo chair which can be used in ofce as well as in the domestc setups. Here the company plans to involve the locally trained artsans for manufacturing of the products. The company will be managed and run by these artsans with technical and managerial support from required consultants. The company will be located in Tripura and provide a model for cluster development. The goals and objectves of these companies are to enhance livelihood opportunites and also increasing the current level of income of the artsans through design interventon and value additon. These companies shall provide a platorm for the artsans who are producing bamboo products and help them convert into a sustainable enterprise. The company plans to sell the product with help of established channels of sale in domestc as well as in service industry. The company plans to market the products at natonal and also explore the possibilites of exportng the products in internatonal markets. The company falls under the category of the furniture industry and a brief market study is undertaken to place the product in the market. This model presupposes the existence of a vibrant farm based producer group like that developed at Katlamara in Tripura (refer KATLAMARA CHALO document) CFBI-NID/20 well even without glue, but we recommend epoxy adhesive to make it waterproof and insect proof for furniture use. The T joint is then used on all four sides of a frame and on any intermediate housed members as per the design and these frames are assembled using the RPG (Ready to Pin and Glue) strategy since these items need to be air-lifted to Kolkatta (45 minutes away by air but 3000 kms by rough road otherwise) or another destination and the nal assembly can be done there to save on transport costs. In some cases we have made the items fully stackable so these dont need to be in knock-down condition and can be fully nished at the farm production unit itself. For example the school furniture benches and tables are stackable and can be offered in nished form at a very low cost to local schools in a cash-less economy of the village where materials and labour are donated for community good or through a cash based economy (GDP based) to schools across the country in packs of ten or twenty since these can be easily lifted by two persons while cargo handling is done. No metal hardware is needed in any of these and this is a big advantage for the producer groups since the region has no producer of such hardware and these need to be sourced at great cost and on unreliable supply schedules from Kolkatta. The Katlamara Joint and low-cost power drill set-up with vice used for making this DDP joint. 04 NID - IL&FS - TRIPURA BAMBOO MISION PRODUCT The product discussed is the solid pole bamboo chair. 05 BUSINESS PLAN - BAMBOO CHAIRS C C 2010 NID The chair is made from solid bamboo poles and is designed to use simple joinery and bamboo dowels using the DDP joint ( DRILL DOWEL & PIN) and RPG strategy (Ready to Pin and Glue) developed by NID, for further informaton refer to www.ranjanmp.in , in the secton on Katlamara Bamboo studies. The components are partally assembled as specifed, frames with pins and then transported in a knockdown state (refer full size drawings). They are then assembled with the help of bamboo dowels and epoxy like araldite glue supplied with the chair components in a suitable package. The main features of the chair are listed below. 1. This chair is available with or without armrest versions. 2. The chair is available with alternatve seats as mentoned below 1. Cushion seat 2. Bamboo stcks seat 3. Seat woven with natural fbers, cords or coton strings 3. The chair is also available in various fnishes like natural bamboo to dark stained colors or is painted as per customer requirements. 06 NID - IL&FS - TRIPURA BAMBOO MISION PROCESSES IN PRODUCTION OF THE CHAIR 1. Selecton and procurement of bamboo poles from farms nearby. 2. Bamboo sortng and straightening 3. Bamboo treatment for preservaton will be secondary process, air drying etc. 4. Bamboo size cutng as per jigs provided and as per product component. 5. Skinning of the sized poles sanding and storage. 6. Drilling of holes for joints and dowels using specifed jigs for quality control. 7. Fixing of components and test assembly of frames. 8. Finishing and Spraying of the components with melamine/other fnishes. 9. Weaving of the seat and back of the chair (as specifed). 10. Packaging and transportaton to site in knock-down conditon in specifed package with drawings and instructons along with pins and adhesives. 11. Assembly of the chair with dowels and glue provided in the chair kit. 07 BUSINESS PLAN - BAMBOO CHAIRS C C 2010 NID 08 NID - IL&FS - TRIPURA BAMBOO MISION MARKETING PLAN A research study was conducted by Tripura Bamboo Mission and IL&FS on basis of that we have sought some informaton on market scenario and the report has helped us to derive the place of the CHAIR in the current market. INDIAN FURNITURE MARKETS Drivers for demand in the furniture sector. - Urbanizaton and its rapid growth. - Growing populaton in metros. - Growth in personal disposable incomes. - Availability of housing fnance. The total size of the Indian furniture industry is estmated by industry experts to be worth approximately Rs 350 billion, with an estmated85% of this falling into the unorganized sector. In furniture imports, India ranked frst from 1-1-04 to 15-7-05 importng 17 per cent of the total imports in furniture worldwide. The current imports are mainly from Italy, Germany, Spain, China, Korea, Malaysia, Indonesia, Philippines and Japan meetng needs of the middle to upper segment of the market. THE NEW CONSUMER FOR FURNITURE IN INDIA - LOW TO MID LEVEL SEGMENT This is where maximum demand is being generated. This is the segment with overall budget under Rs. 35 lakh and confguraton requirement of 1or 2 bedrooms. - LIGHT, MINIMAL AND CLEAN Educated and westernized, many of professionals in Indias rapidly modernizing big cites prefer IKEAs minimalist Scandinavian style to homespun Indian handiwork or the clunky Britsh colonial pieces they grew up with. - CUSTOM MADE FURNITURE Getng furniture made from scratch is nothing new in India where labour is cheap and mass produced products ofer low quality. Changing aesthetc tastes though refect changes in lifestyles of middle-class Indians over the past decade. - LIGHT FURNITURE FOR SMALL SPACES Instead of living at home with parents untl marriage, many young Indians are moving into their own apartments, postponing marriage, and even cohabitng Real estate is booming and city living is getng more expensive, so many fnd themselves squeezed into tght quarters with a need for modern, space-saving furniture. 09 BUSINESS PLAN - BAMBOO CHAIRS C C 2010 NID OBSERVATIONS ON BAMBOO FURNITURE SCENARIO IN INDIA - Bamboo Pole Furniture being a new concept would fnd it difcult to fnd acceptance in regular furniture markets. Market awareness needs to be generated through efectve concept selling. Visibility through high profle stores catering to masses and classes is required along with educaton about bamboo the material. Even for this approach however, the look of the furniture has to be changed to match contemporary look of glass and steel being preferred in new Indian homes. - A range of products comprising fast selling items should be made available to give the consumer a variety to choose from and provide required confdence about the product to distributors and retailers. - The strategy should also include convincing larger stores to stock few products on a consignment basis made with the value propositon being Bamboo Pole furniture is a break from the typical fare, it is longer lastng and yet sportng a trendy internatonal look not a typical Indian look or a monotonous Internatonal look which is found across the entre market place in Bangalore. - This furniture would also score high on durability aspect compared to rubber wood and also have diferent look since afer a point of tme all imported furniture sported almost the same monotonous look. NID recommends market launch and test marketng through selected retail chains such as Fab India, Mother Earth, SASHA, NIDUS etc. 10 NID - IL&FS - TRIPURA BAMBOO MISION STRATEGY These companies in the cluster shall initally organize buyers and sellers meet with support of the State government and other organizatons and also partcipate in various exhibitons. The State government can also motvate the company by buying the products for their ofces and departments. Here additonal support can be drawn from various schemes of DC(H),Govt. of India and MSME schemes for design and entrepreneurship in order to refne the process and generate design that is aligned to specifc markets. On the basis of the research study some strengths and weakness for producing the CHAIR have been identfed and are mentoned below. STRENGTHS AND WEAKNESSES (SWOT) Strengths - Availability of local skills for making furniture. - Raw material also available in abundant quantty from local farms. Weakness - Direct exposure to markets is limited. - Industry operates more on daily wage and piece driven rather than design driven. - Size of units currently operatonal very small. - Lack of entrepreneurial talent to drive local industry. Opportunites - Bamboo Industry being in a nascent stage, new designs can be introduced and local talent can be trained for working on new designs. - The new generaton consumer and retail formats may provide a good visibility platorm for bamboo furniture. Threats - Industry would require scaled up producton to meet requirements of large retail formats. However, since it is used to a daily wage system, the transiton might not be easy. Bamboo is not perceived to be diferent from cane to the lay customer. Cane furniture has a cheap or exotc associaton with it depending on the price range. Bamboo would need to break away from cane and create a market of its own. 11 BUSINESS PLAN - BAMBOO CHAIRS C C 2010 NID COMPETITION AND INTERNAL GROUP DYNAMICS The company will face competton from the other local producers and producers across naton. As this company will have group based actvity, the company before initalizing will have to impart group strengthening actvites and trainings for proper division of labour, logical decision making, reducing group dynamics and enhancing management abilites among the individuals who will think in a holistc way. Here local university professionals (Tripura University Bamboo Department) can be brought in as advisors and consultants as needed. PROMOTION The company can spread their word to customers by partcipatng at various forums like conferences, buyers and sellers meet, getng associated with furniture associatons and other groups. IL&FS and TBM can enhance this process. ADVERTISING: The company will identfy low-cost methods to get the most out of promotonal budget. Methods other than paid advertsing, such as trade shows, catalogs, dealer incentves, word of mouth, and network of friends or professionals. In additon to advertsing, there is also requirement for graphic image support. This includes things like logo design, cards and leterhead, brochures, signage, and interior design for customers that come to place for business. IL&FS and TBM can enhance this process. PRICING The company will decide as a group actvity for identfying methods of setng prices. For most small businesses, having the lowest price is not a good policy. It robs of needed proft margin; customers may not care as much about price as you think; and large compettors can under price you anyway. Usually it will do beter to have average prices and compete on quality and service. IL&FS and TBM can enhance this process. Things to consider while pricing your product 1 Economic value to the customer basically value given to the customer vis--vis their current investment on the similar product 2 Price sensitvity of the customers 3 Segmented pricingdiferent pricing for diferent type of customers /products / product features 4 Pricing in the channel. 5 Compettve pricing. 6 Finishes, design, quality and variety can be viewed as diferentators that enhance value. 7 Knock down constructon for reduced transpot cost. 12 NID - IL&FS - TRIPURA BAMBOO MISION PROPOSED LOCATION The proposed locaton will be selected in such a way that it is benefcial for producers, buyers and other vendors. The main criteria of locaton would be governed by proximity to the raw material, transport facilites, availability of power supply, manpower and locaton of market to sell the fnished goods. DISTRIBUTION CHANNELS The distributon channel will be identfed by the company and its management. The company shall identfy the sale of the products from below suggested optons. 1. Retail 2. Direct (mail order, Web, catalog) 3. Wholesale 4. Your own sales force 5. Agents 6. Independent representatves and Bid on contracts 13 BUSINESS PLAN - BAMBOO CHAIRS C C 2010 NID OPERATIONAL PLAN PRODUCTION The producton of the chairs will be done both manually and also with help of the machines and other tools with low investment and designed work fows. QUALITY CONTROL For quality control the artsans will be exposed to various quality parameters in diferent ways right from selectng the raw material to fnal fnished product. The quality of chairs will be enhanced and maintained with help of using diferent types of manual and machine interventons including special jigs and fxtures. INVENTORY CONTROL The inventory control system will be developed by the people of the company and managed by a specifc deputed person for this purpose. PRODUCT DEVELOPMENT The company will be aligned with a designer or a group of designers who at regular intervals will provide necessary inputs for product development and diferentaton. Physical Requirements Amount of space A space with the capacity to expand as per the growth of the producton unit. There should be open, semi covered and as well as enclosed spaces. Type of building The building would have to be secure enough to store tools, equipment and machinery. However, so that producton will not be hindered during the rainy season, there would have to be enough covered spaces. Power and other utlites There would have to be a provision for a single-phase electricity connecton at the least, to run the machinery at the unit. LPG would also be required to produce the fame required for straightening and bending the bamboo. Further experiments are required to replace toxic treatment of bamboo with beter organic methods for durability of poles. Water supply is needed for boric/borax treatment as well as toilets facilites for crafsmen. 14 NID - IL&FS - TRIPURA BAMBOO MISION
ACCESS
The unit should be located conveniently close to the crafsmens homes as well as to the material supply areas. There should be road access to facilitate easy transportaton of the fnished goods. Constructon: A tentatve plan is suggested for such kind of setups, and company may identfy appropriate suppliers, builders and other vendors through a transparent process for efectve investments. But before setng up the work shed, a necessary investgaton needs to be carried out keeping in mind price of land, quality and quantty of material required for constructon, architect to generate a proper design, installaton of machinery and other need based inputs. Legal Environment The group which comprises of the artsans should be well versed with the legal aspects required for functoning of the company. They can therefore be trained by any agency which would impart knowledge on legal maters like registraton of company, following of the respectve acts of registraton, etc as well as design related maters like copyright, patent etc. The following points can also be considered. The product will have to be licensed for cluster based industrial producton in manageable batches and also to establish the product in market and protect the identty. Permits regarding procuring and use of any specifc forest/farm produce like bamboo , natural fbers etc and also permits required for setng up a commercial actvity. Health, workplace, or environmental regulatons to see that the company does not violate any norms. Special regulatons covering your industry or profession and seeking beneft out of tax holidays and subsidies. Insurance coverage of man and machines. Trademarks, copyrights, or patents (pending, existng, or purchased) 15 BUSINESS PLAN - BAMBOO CHAIRS C C 2010 NID HUMAN RESOURCE The company has to consider below given points for hiring people. These points may difer from place to place, from product to product and from set-up to set-up. o Number of employees o Type of labor (skilled, unskilled, and professional) o Where and how will you fnd the right employees? o Quality of existng staf o Pay structure o Training methods and requirements o Who does which tasks? o Do you have schedules and writen procedures prepared? o Have you drafed job descriptons for employees? If not, take tme to write some. They really help internal communicatons with employees. o For certain functons, will you use contract workers in additon to employees? FOR MAINTAINING AN INVENTORY FOLLOWING POINTS ARE TO BE CONSIDERED: What kind of inventory will you keep?: raw materials, supplies, fnished goods. Average value in stock (i.e., what is your inventory investment). Rate of turnover and how this compares to the industry averages. Seasonal buildups. Lead-tme for ordering. SUPPLIERS The suppliers would be state government forest department, indigenous plantaton owners and other vendors. CREDIT POLICIES The company will decide whether to have its credit policy and also decide the parameters for having a credit policy. 16 NID - IL&FS - TRIPURA BAMBOO MISION FINANCIAL PLAN The fnancial plan consists of a 12-month proft and loss projecton, a four-year proft and loss projecton (optonal), a cash-fow projecton, a projected balance sheet, and a break-even calculaton. Together they consttute a reasonable estmate of companys fnancial future. More important, the process of thinking through the fnancial plan will improve insight into the inner fnancial workings of company. MANAGEMENT AND ORGANIZATION The company will prepare a structure executve and manage the business on a day-to- day basis. The company will identfy what kind of special or distnctve competencies they are looking for in the workforce. The company will also prepare a plan for contnuaton of the business if this person is lost or incapacitated. If youll have more than 10 employees, create an organizatonal chart showing the management hierarchy and who is responsible for key functons. Include positon descriptons for key employees. If you are seeking loans or investors, include resumes of owners and key employees. A list given below suggests that a company would require for professional and advisory support List for professional and advisory support: Board of Directors Management Advisory Board Atorney Accountant Insurance agent Banker Consultant or consultants Mentors and key advisors 17 BUSINESS PLAN - BAMBOO CHAIRS C C 2010 NID TIPS FOR PRE REVENUE - STARTUP EXPENSES AND CAPITALIZATION Company will have many expenses before they even begin operatng the business. It is important to estmate these expenses accurately and then to plan where they will get sufcient capital. This is a research project, and the more thorough the research eforts, the less chance that these will leave out important expenses or underestmate them. Even with the best of research, however, opening a new business has a way of costng more than you antcipate. There are two ways to make allowances for surprise expenses. The frst is to add a litle padding to each item in the budget. The problem with that approach, however, is that it destroys the accuracy of your carefully wrought plan. The second approach is to add a separate line item, called contngencies, to account for the unforeseeable. This is the approach we recommend. Talk to others who have started similar businesses to get a good idea of how much to allow for contngencies. If you cannot get good informaton, we recommend a rule of thumb that contngencies should equal at least 20 percent of the total of all other start- up expenses. Explain your research and how you arrived at your forecasts of expenses. Give sources, amounts, and terms of proposed loans. Also explain in detail how much will be contributed by each investor and what percent ownership each will have. For Raising Capital the company can approach various fnancial insttutons like NABARD, SIDBI, STATE GOVERNMENT OF TRIPURA, MSME SCHEMES, MINISTRY OF SMALL SCALE AND COTTAGE INDUSTRIES, ETC FOR BANKERS Bankers want assurance of orderly repayment. If you intend using this plan to present to lenders, include: o Amount of loan o How the funds will be used o What this will accomplishhow will it make the business stronger? o Requested repayment terms (number of years to repay). You will probably not have much negotatng room on interest rate but may be able to negotate a longer repayment term, which will help cash fow. o Collateral ofered, and a list of all existng liens against collateral 18 NID - IL&FS - TRIPURA BAMBOO MISION FOR INVESTORS Investors have a diferent perspectve. They are looking for dramatc growth, and they expect to share in the rewards: o Funds needed short-term o Funds needed in two to fve years o How the company will use the funds, and what this will accomplish for growth. o Estmated return on investment o Exit strategy for investors (buyback, sale, or IPO) o Percent of ownership that you will give up to investors o Milestones or conditons that you will accept o Financial reportng to be provided o Involvement of investors on the board or in management 19 BUSINESS PLAN - BAMBOO CHAIRS C C 2010 NID FOR TYPE OF BUSINESS Manufacturing Planned producton levels Antcipated levels of direct producton costs and indirect (overhead) costshow do these compare to industry averages (if available)? Prices per product line Gross proft margin, overall and for each product line Producton/capacity limits of planned physical plant Producton/capacity limits of equipment Purchasing and inventory management procedures New products under development or antcipated to come online afer startup As Company Economic outlook for the industry The company will have informaton systems in place to manage rapidly changing prices, costs, and markets. The company will have cutng edge with products and services. The company will have to do research and development at regular intervals and what is required to: o Bring product/service to market. o Keep the company compettve. The company will have to chalk out a process: o Protect intellectual property. o Avoid technological obsolescence. o Supply necessary capital. o Retain key personnel. 20 NID - IL&FS - TRIPURA BAMBOO MISION RETAIL BUSINESS Company image Pricing: o Explain markup policies. o Prices should be proftable, compettve, and in accordance with company image. Inventory: o Selecton and price should be consistent with company image. o Inventory level: Find industry average numbers for annual inventory turnover rate (available in RMA book). Multply your inital inventory investment by the average turnover rate. The result should be at least equal to your projected frst years cost of goods sold. If it is not, you may not have enough budgeted for startup inventory. Customer service policies: These should be compettve and in accord with company image. Locaton: Does it give the exposure that you need? Is it convenient for customers? Is it consistent with company image? Promoton: Methods used, cost. Does it project a consistent company image? Credit: Do you extend credit to customers? If yes, do you really need to, and do you factor the cost into prices? 21 BUSINESS PLAN - BAMBOO CHAIRS C C 2010 NID LIST OF TOOLS The costs mentoned below are approximate: Estmated fxed cost at startup stage 1. Cut-of saw (GCO 2000) Rs. 12,500/- 2. Rotary Drill (GBM 6) Rs. 3,500/- 3. Rotary Drill (GBM 13-2) Rs. 6,800/- 4. 100 mm-mini Angle Grinder (GWS 6-100) Rs. 4,200/- 5. Sabre Saw (GSA 800 PE) Rs. 18,000/- 6. Circular Saw (GKS 190) Rs.7,000/- 7. Sander (GEX 125-IAE) Rs. 5,500/- 8. Mitre Saw (GCM 10) Rs. 30,000/- 9. Screw Driver-Basic Duty (GSR 14.4-2V) Rs. 9,750/- 10. Generator set Rs 50,000/- 11. Jig saw cuter Rs 8,000/- 12. Spray machine with compressor Rs 50,000/- Rs.205250 13. Fostner Drill bits set (1/4,1/2,3/4,1.1.1/4) Rs 850/- 14. Drill bit set (1 mm to 12 mm) Rs 1500/- 15. Hand Sander, Bosch made Rs 7000/- 16. Gas Blow Torch Rs 1000/- 17. Hack saw with frame Rs 200/- 18. Small Hack saw with frame Rs 20/- 19. Chisel (set of 1, , with handle) Rs 300/- 20. G-clamp 3& 4 Rs 200/- 21. Hammer 200 gm. Rs 150/- 22. Mallet (medium) Rs 150/- 23. Measuring tape 3 mtr Right angle Rs 600/- 24. Commercial gas cylinders -2 numbers Rs 6000/- 25. Bench vice 4 -4 numbers Rs 3400/- Rs 21370/- Estmated Consumables for producton of 100 chairs: 26. Emery stone -2 sets Rs 500/- 27. Emery paper 80,120 and 320(fne grain) 20 sets Rs 1000/- 28. Sand paper 80,120 and 320(fne grain) 20 sets Rs 1000/- 29. Fevicol- Adhesive 10 liters Rs 1000/- 30. Araldite 100 gms pack X 100 sets Rs 6000/- 31. Melamine (Glossy and Mat) 12 liters Rs 2500/- 32. Thinner 30 liters Rs 5000/- 33. Sisal /bhindi rope Rs 15000/- 32000/- BAMBOO Poles 5 numbers X INR 60 X 100 Rs 30,000/- Therefore the approximate cost for start-up would be INR 2,88, 620/- 22 NID - IL&FS - TRIPURA BAMBOO MISION Annexure-I Tentative cost for producing 100-150 bamboo pole chairs by an unit of 10-15 workers Sl.No. Operating Years 1st 2nd 3rd 4th 5th 6th 7th 8th A Total Raw Material 1296000 1296000 1296000 1296000 1296000 1296000 1296000 1296000 B Consumable Stores 38880 38880 38880 38880 38880 38880 38880 38880 C Power 24000 24000 24000 24000 24000 24000 24000 24000 D Water 6000 6000 6000 6000 6000 6000 6000 6000 E Labour 828000 828000 828000 828000 828000 828000 828000 828000 Factory Overheads Repair and maintenance 6000 6000 6000 6000 6000 6000 6000 6000 Insurance of factory assets 5750 5750 5750 5750 5750 5750 5750 5750 Miscellaneous 6000 6000 6000 6000 6000 6000 6000 6000 F Total factory overheads 17750 17750 17750 17750 17750 17750 17750 17750 G Estimate of cost of production 2210630 2210630 2210630 2210630 2210630 2210630 2210630 2210630 H Administrative Expenses Postage, telegram and telephone 12000 12000 12000 12000 12000 12000 12000 12000 I Total sales expense(2% on sales) 153600 153600 153600 153600 153600 153600 153600 153600 J Total cost of production 2376230 2376230 2376230 2376230 2376230 2376230 2376230 2376230 K Expected sales 7680000 7680000 7680000 7680000 7680000 7680000 7680000 7680000 L Gross profit before depreciation 5303770 5303770 5303770 5303770 5303770 5303770 5303770 5303770 M Depreciation 100000 100000 100000 100000 100000 100000 100000 100000 N Net profit 5203770 5203770 5203770 5203770 5203770 5203770 5203770 5203770 IRR=15%
In the item of raw material, the cost mentioned is tentative for one bamboo pole of 12 to 20 feet in price range of INR 60-100. RECOMMENDATION FOR ACTION This micro industry can provide sustained employment for 15-20 direct employees and 50-100 indirect employees in the farm level as well as raw material processing, transportaton, retail and maintenance stages of its existence.This level of employment can be achieved with the investment of INR 5,00,000/- (Rupees Five Lakhs) in the form of seed money that could be delivered through grants, sof loans,or family based investments and micro credit schemes that can be made available through various state government schemes.IL&FS and TBM could consider the seeding of atleast 100 such units in and around Agartala so that the cluster dynamics will kick into operaton and provide sustained value and employment to 50,000 to 1,00,000 high quality jobs. 23 BUSINESS PLAN - BAMBOO CHAIRS C C 2010 NID CREDITS DESIGN & BUSINESS STRATEGY M P RANJAN BUSINESS PLAN AVINASH BHANDARI ILLUSTRATIONS ANDREA NORONHA GRAPHIC LAYOUT KHUSHBU THAKKAR MASTER CRAFTSMEN SHUBRATO SARKAR RANJIT DEBBARMAN ACKNOWLEDGEMENTS NATIONAL INSTITUTE OF DESIGN PRADUMNA VYAS ( DIRECTOR, NID ) P RAMA KRISHNA RAO ( CHAIRMAN, OUTREACH PROGRAMMES ) M P RANJAN ( PROJECT HEAD, NID ) C. S. SUSANTH ( CO - PROJECT HEAD, NID ) AVINASH BHANDARI, NID RAJAN CHRISTOPHER, NID PROJECT ADMINISTRATION ( IL&FS ) SHARMISHTHA MOHAPATRA ( ADVISOR-TRADE FACILITATION , IL&FS CLUSTER DEVELOPMENT INITIATIVE ) S. MATOULEIBI ( ASST. MANAGER, IL&FS CLUSTER DEVELOPMENT INITIATIVE ) 24 NID - IL&FS - TRIPURA BAMBOO MISION Paldi, Ahmedabad 380 007 India. phone - 079 2662 3692 / 2660 5243 Fax - 079 2662 1167 www.nid.edu