Business Plan On Leather and Leather Products

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Reflects Your Personality

Submitted To:- Prof. B.N Narielwala Submitted By:-

Royce Leather

Group Members:-

Rahul Jogi Pragnesh Patel Ram Upadhyay Raj Vinchhi Krunal Patolia
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Royce Leather
Vision
Become the Indias largest exporter of leather garments in 2020. Mission Provide customers satisfaction through quality products. Core values Respect Honesty Equality
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Royce Leather
Nature of business
It is manufacturing business of leather garments including

jacket, ladies hand bags, key chain, shoes, skirts, belts and wallet.

We shall purchase finished leather from different suppliers then

make different products mentioned above according to the customers demand. handbags, with the passage of time we will expand our product line. In other words we have defined wallet, belts and shoes as expansion of business.
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At early stage of business we will focus on jacket, skirts and

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Finance
Identification of finance
First of all we have decided our capacity of units per month that is 350 pieces. Initial/fixed cost Rs. 0.2 million Operating cost/expense Rs. 0.5 million Reserve Rs. 0.5 million Total investment Rs. 1.2 million
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Target Customers
Export market is the primary market for a leather

garment-manufacturing unit.
In the export market, major customers include chain

stores and major garment brands in Europe and USA.


Major customers of Indian leather garments are

Germany, USA, United Kingdom, and UAE & France. The business is done either directly to the buyers or through middlemen.
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Competitors analysis
It is very important to analyze the competition environment of the

industry in order to compete successfully. It is good for strategy making to identify the strengths and weakness of competitors and try to differentiate itself from them. Pakistani and Chinese garments products are our rivals because they have high market share in leather garments. Indian designers are innovator in garments. In our business customers are the main innovators and designer of the products, they can customize their products through our website and can send their order along their own designs. We shall also target the South African market where quality is not issue because they are price conscious. It means that we are dealing two kind of customers as price and quality conscious.

Our main focus to export our garments (goods) in western world,

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Market segmentation
Market is divided into two major segments as: National market segmentation. International market segmentation. Both further divided into following: Individual/ single consumer. Business customers. Individual consumer are those who will purchase small

amount of items for their personal use and business customers cover all the wholesalers, retailers and others business who will sell them to their customers.
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Description of Venture
Product
We are dealing in leather garments including Leather jacket Ladies handbags Leather shoes Leather belts Leather skirts Leather wallet Leather gloves
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Manufacturing process
Matching.
Cutting. Assembling.

Stitching.
Finishing.

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Operational Plan
Basically operation plan is mixture of following three

activities as under: Description of companys operation. Flow of order for goods. Technology utilization.

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Operation Department
Our operation activities are based on supply chain management

system for our product, name & number of suppliers which are concerned in our project and process of manufacturing as a whole. operation plan. Here we make a proper direct to our suppliers as well as our customers.

The connection with customers is also a major function of our

The overall activities regarding product manufacturing to supply

toward customer is associated with this function:-

To select the appropriate suppliers. To check the performance of current suppliers.


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Marketing department
It is very critical department of our business because

production/manufacturing is not a big task but it is very important how to reach the customers, so marketing department will perform the following functions:

Pricing. Promotion. Distribution. Demand forecasting.


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IT department
We are also giving online shopping so it is necessary

for us to focus on the information technology as well as its importance. It will perform the following functions:

Update the website. Promotion through e-marketing and different website. Invoicing of bills. Make query. Customers & suppliers contact via email.
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Marketing Plan
Pricing.
Value Based Pricing. Cost Based Pricing.

Distribution.
Promotion. Showbiz Magazine. Product Forecasts.

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Organizational plan
Form of ownership
It is partnership among 5 members with equal investment, loss and profit. Every partner will perform duties according to his specialize field. Identification of partners or principal shareholders: We are five partners in this business with equal investment of Rs. 240000/ each. Ram Upadhyay. Rahul Jogi. Pragnesh Patel. Rajkishan Vinchhi. Krunal Patolia.

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Sources of funds
Equity 100%.

Each Partner will come up with the Ivestment of

240000 each.
Total Investment of 1200000.

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Financial Analysis
Will be shown through word document.

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Break-even analysis
We have done this analysis on monthly basis it means

that initial fixed cost and variable cost is considered in this analysis.

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