NID - IL&FS - TRIPURA BAMBOO MISION

SUGGESTED 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 - 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.
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NID - IL&FS - TRIPURA BAMBOO MISION
PRODUCT
The product discussed is the solid pole bamboo chair.
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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.
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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.
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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.
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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.
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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.
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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.
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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
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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.
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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)
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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.
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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
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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
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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
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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.
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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?
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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/-
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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.
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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