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PowerPoint Presentation - Madras Management Association by liuqingyan

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									WEAVES INDIA LTD
     M.BHOOPALAN
  R.SARAVANAKUMAR
                  MISSION
   To achieve leadership in towel industry
    with a sense of responsibility towards
    fulfilling the product quality to customer
    satisfaction at the lowest price, keeping in
    view social, economic and environmental
    concerns of the nation.
            COMPANY PROFILE
Business Type           : Manufacturer & Exporter
Year of Establishment   : 2006
Machinery               : Auto loom (RAPIER)
QC Responsibility       : In-House
Export Market           : United States of America

No of labours           : 30
No of employees         :9
No of managers          :3
                   WHY U.S?
   Largest towel importing market        (imported
    2,20,24,446 towels in 2005).

   Rapid Decline of U.S home textiles

   Per capita consumption of textiles is largest in
    world – 23 metres or $37 in value

   26% growth in Indian textile exports to US in
    2005

   6% annual growth rate in towel market (2005)

   Demand, supply imbalance by 6%-OTEXA (2005)
            TARGET MARKET
   INSTITUTE MARKET -Hotels, resorts,
    hospitals, restaurants, sport clubs,
    entertainment places

   HOUSEHOLD MARKET -Department
    stores, superstores, and hypermarket

   PREMIUM MARKET –Corporates’ gifts
    for special events, special awards, New
    Year souvenirs and gift sets.
Production process
             PRODUCT PROFILE
   The product line length is 16 & the product mix width is
    4

   PREMIUM TOWELS, INSTITUTIONAL TOWELS,
    JACQUARD TOWELS, KITCHEN TOWELS

   Towels range from 30*30 cms to 75*150 cms (12”*12”
    to 30”*60”)

   Weight of towels vary from 300 GSM TO 500 GSM

   Customized towels vary in weight from 800 GSM to 1200
    GSM
         PRODUCT PORTFOLIO
PREMIUM          INSTITUTIONAL    JACQUARD        KITCHEN
  TOWELS           TOWELS            TOWELS          TOWELS
Baby Towels      White & Dyed    Tea Towels      Velour Beach

Beach Towels     Cabana Stripe   Dish Cloth /    Finger Tip /
                                    Waffle          Golf

Promotional      Bath Mats       Jacquard        Piece Dyed
   Towels                           Terry

Embroidered      Toweling        Printed Terry         -----



Color to Color       ------          -----             ----
                              PRICING
S no                    Product         Estimated Price/Piece (Rs)
       PREMIUM TOWELS
 1     Beach Towels                                95
 2     Promotional Towels                          72
 3     Embroidered                               90-140
 4     Colour to Colour                            60
 5     Baby Towels                                 36
       INSTITUTIONAL TOWELS
 6     White & Dyed                                65
 7     Cabana Stripe                               75
 8     Bath Mats                                   60
 9     Toweling                                    70
       JACQUARD TOWELS
10     Tea Towels                                  60
11     Dish Cloth / Waffle                         60
12     Jacquard Terry                              72
13     Printed Terry                               83
       KITCHEN TOWELS
14     Velour Beach                                90
15     Finger Tip / Golf                           50
16     Piece Dyed                                  60
                   PROMOTION
   MAGAZINES-Textiles Outlook International, Textile view

   WEBSITES- Indiandata.com, Maditssia.com, Textile
    Intelligence.com, usa-ita.com.

   Cost of advertising varies from $7.95-$9.95/week

   Incentives to distributors based on sales performance
              DISTRIBUTION
   Goods are sent on Freight on Board (FOB)
    basis.
   A transportation cost for 4 tonnes from
    Madurai to Tuticorin is Rs 3108.
   The transportation cost from Tuticorin to
    US will be taken care by the Importers of
    the country.
   Distributors in 5 states. (NY, California,
    North Carl, Florida, New Jersey)- 27% of
    US population (79,126,659)
        COMPANY STRATEGY
   COST LEADERSHIP STRATEGY

   MASS MARKET STRATEGY


CORE COMPETENCY
   PRODUCT INNOVATION - PURPLE COW (RISK &
    INNOVATION,RETURNS)

   TOWEL BOUQUETS,SUBLIMATED TOWELS,NANO COTTON
    TOWELS,HYDRO COTTON TOWELS,MONOGRAM TOWELS
               COMPETITORS
   INTERNAL            EXTERNAL
   WELLSPUN INDIA      PAKISTAN

   ABHISHEK IND        TURKEY

   ALOK IND            MEXICO
      COMPETITIVE ADVANTAGE
EXTERNAL
   Low labour cost ($79.04 in India,$82 in Pakistan,$84 in
    Mexico/month)

   Labor - Huge, skilled workforce; has design expertise.

   Inputs - Among the world’s largest producers of yarns
    and fabrics;

   Import duty reduced from 25% to 5% for textile
    machinery
    COMPETITIVE ADVANTAGE
INTERNAL
   Only 15-20% of local Sellur (Madurai) towel market
    involved in export.

   Low labour cost (Rs.2950 in Madurai to Rs.3430 in other
    places)

   Wide range of products(16 products) with design
    expertise

   Strategic location with easy availability of raw materials
    at low cost
            OPERATIONS PLAN
   Quality raw materials from ISO certified mills

   Indathren dyes from Dystar for dyeing

   Excellent colour with ease of washing

   Through-air-drying Technology

   International Quality Standards (DIN
    EN,COTTON USA)
         CRITICAL RISK FACTORS
   Management risks – Labour, Plant capacity

   Marketing risks – Distributors , Product positioning

   Operating risks – Capacity utilisation,
                       Environmental factors
   Financial risks – Funding Pattern, Sales mix.

   Other risks – Government policies
           WHY FUND US?
   AREA

   CREDITWORTHINESS

   CONTRIBUTION

   EMPLOYMENT

   EXPERIENCE
 FINANCIAL PLAN
    Project cost
Total investment   = 2 crore

        Capital inflow
Bank loan          = 1 crore
Owner’s capital    = 1 crore
             Capital outflow
   Machinery           = 1 crore
   Raw material        = 20 lakhs
   Labor & employees   = 10 lakhs
   Installation        = 5 lakhs
   Land&Buildings      = 20 lakhs
   Other expenses      = 30 lakhs
   Reserves            = 15 lakhs
                  1 st year
   Revenue              = Rs.3,45,60,000
   Sales volume         = 2,88,000 towels
   Cost of goods sold   = Rs.1,55,52,000
   Net profit           = Rs.34,02,496
                    Trend
80
                                 67
60                         57
              41     45               sales
40      34
                                      profit
20
        3.4   3.6    3.8   4    4.3
0
      1st 2nd 3rd 4th 5th
     year year year year year
              YEARS
             Break Even Point

              Break-Even Point     Revenue Line
 Revenue
 & Cost

3.1 crores                       Total Cost Line


                                          Fixed
                                          Costs
                      2,59,616          (35 lakhs)
              Number of towels
                   PAYBACK
   LOAN           = 1,00,00,000
   1ST YEAR       =   10,00,000
   2ND YEAR       =   15,00,000
   3RD YEAR       =   20,00,000
   4TH YEAR       =   25,00,000
   5TH YEAR       =   30,00,000
                     1,00,00,000
               (Interest included in income
                statement)
            CONCLUSION
   REAL TIME BUSINESS PLAN

   WILL TAKE SHAPE AND BE TRIMMED
    MORE FOR MAXIMUM PERFECTION
THANK YOU

								
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