BANDANA- SARI, PODAVAI AND CHEERA

(SPC- SOUTHREN PATTU CHEERA)

GROUP-6

SECTION-B
INDUSTRY OVERVIEW:-

India has a rich and varied textile heritage, where each region of India has its own unique native
costume and traditional attire. While traditional clothes are still worn in most of rural India,
urban India is changing rapidly, with international fashion trends reflected by the young and
glamorous, in the cosmopolitan metros of India.

Fashion in India is continuously evolving as new designers from leading institutes such as the
National Institutes of Fashion Technology continue to redefine the meaning of Fashion in India.

The design industry in India is growing at a staggering rate of 23 to 25 per cent annually - it's an
indicative of the qualitative change you find in the look and feel of consumer goods.

The size of this industry in US $ is 62 billion. were exports contribute US$ 22 Billion while the
domestic market accounts for the remaining US$ 40 Billion. Exports of textile and apparel have
recorded a substantial growth rate in the recent years, with a CAGR of 11% from FY 2004-05 to
FY 2007-08.

Its value addition in the manufacturing is 14%.its export earning is 30%. Government is
promoting 10 million jobs in next 5 years. Its grows around 9% in the coming years. There are
35 million workforces.

Industry growth rate to 8-10 per cent from the current level of six percent. To achieve this target
the textile ministry plans to attract investments worth over 31 billion dollars over the next five
years.
MANAGEMENT PLAN:-

The Management includes Managing Director under him Marketing, Finance, Designers, Staff,
Tailor, Zari workers, office boy and Middle man will be there in the team. The Designers include
traditional designer who is expertise in traditional saree manufacturing and the other person from
NIFT who is expertise in modern designs. Marketing and Finance people are involved in
promotion, sales and auditing of the designer boutique. The Zari workers and Tailor are under
designers and they involved in stitching the Zari and patch work of the saree and dress materials.
The Middle man will be under marketing head and he act as a barrier between boutique and the
material providers from different places.
 MARKET ANALYSIS:-

The market of this enterprise is remarkably wide, according to the vast cultures and geographical
differences and affordability, influence of western and traditional cultures, bewildering
diversities of the ethnic groups.

APPERALS

CASUAL 5-55 18-50 18-50 3-55 FAMILY WEDDING

(women) (men) (women) (men) MALLS TARGET
AUDIENCE (3-60) IN
EVERY SEGMENT
SEMI FORMAL 18-40 18-45 18-45 20-45
(women) (men) (women) (men)

FORMAL 18-30 25-40 25-40 20-50

(women) (men) (women) (men)

BRIDAL 18-55 25-45 25-45 22-40

(women) (men) (women) (men)

There are few major players in boutique business and these entrepreneurs have also taken an
initiative based on their caprice and experience in the fashion design. The major players in
Hyderabad are Neeru’s, Mebaz, Manyavar, and Taruni. These boutiques represent the North
Indian version of designs. And these boutiques target the costumers of higher class and upper
middle class. These boutiques are well established in different locations of Hyderabad. These
boutiques usually sell the products like North Indian saree’s, sherwani’s, kurthas, gagra’s etc.

Kalanjali and Kalanikethan are wedding malls they provide both North and South Indian version
of apparels and the target customers are middle class, upper middle class and higher class.

The promotion of these boutiques and malls done through News papers, holdings, mass media,
web portals etc, where as Neeru’s sponsors the fashion shows to promote their brand. The
pricing strategies of these designer boutiques differ and these wedding malls offer huge discount
rates on purchase of apparels.

MARKETING PLAN:-

Product: - This designer boutique mainly focuses on product saree. A complete package of
saree’s (Engagement, Marriage, pooja and reception) will be offered.

USP of Bandana- As we give preference to our customers, we would even welcome our
customers to give their design which they want to see in their costumes and all these works
would we done by experienced and qualified designers.

PRICING STRATEGY: -

The pricing of saree differs between upper middle class and higher class. The purchasing
capacity of upper middle class is low when compared to higher class. The higher class spent
more money in marriages as they feel pride in showing their status through marriages. The
boutique charges two different prices as mentioned below

• Upper middle class- Bride (Rs.1.5 lakhs), Bride Groom (Rs.55,000)

• Premium class – Bride (Rs. 2.5 lakhs), Bride Groom (Rs.95, 000)

PROMOTION:-

• E-commerce usage:- Advertisement on websites like matrimony.com,

shadi.com,Vanajarao.com .
 • Print media:- Advertisement in Swathi magazine , Enadu Pelli Pandhiri and Deccan
Chronicle.

• Promotion through Kalyana Mandapam, Promotion through Pundits.

• Advertisement in cinema halls, Promotion through Dadu’s.

PLACE:- The location selected for the opening of designer boutique is Begumpet where the
people of targeted segment predominantly available.

OPERATING PLAN:-

In the 0th year the designer boutique ‘BANDANA’ is started in Begumpet which will be having
all kinds’ south Indian bridal dresses for men and women. In the first year there will be
introduction of bridal wear with more amount of traditional touch, like having designs of various
sculptures, monuments and designs which represent the culture of particular place (kondapalli
toys) on the costumes. During these years (i.e., 0-2years) there would be involvement of middle
man who will be as a link between the suppliers and our boutique. Later from 3rd year onwards
there would not be any involvement of the middle men and our boutique will be in direct contact
to the suppliers.

YEAR 0 YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5

Hyderabad Bridal wear Without
(Begumpet) with more middle men
traditional
touch.
FINANCIAL PLAN:-

Variables Input

Total No. of marriages targeted in Year1 50

target for upper middle class marriages 25
target for Premium class marriages 25
Price for upper middle class Amount (Rs.)
Bride 150000
Bride Groom 55000
other family members 100000
Price for Premium class Amount (Rs.)
Bride 250000
Bride Groom 95000
other family members 150000
Sales Growth (first three years) 10%
Sales Growth (after three years) 8%

Salaries :- (Per annum) Amount (Rs.)

2 designer( per annum) 600000
2 staff (per annum) 144000
1 office boy (per annum) 36000
1 tailor (per annum) 60000
2 Zari workers (per annum) 84000
1 Security Guard (per annum) 48000
Total salary (per annum) 972000
Increment in salary 2%

Other Exp:- (Per annum)

electricity bills 132000
Promotional Strategies 350000
Payment paid to handlooms 12500000
Lease 540000
Middleman Commission (Year-1 and 2) 250000 2%
Discount Rate 9%

Amount
Capital Expenditure :- (Rs.)
Usha designer machine(one machine) (Year 0) 45000
Usha sewing machine (one machine) (Year 0) 7500
Vacuum Cleaner (Year 0) 5000
Interior decoration (Year 0) 400000

Total 457500
NOTE:-

1) CALCULATION OF SALES FOR YEAR-0

A) Total Sales from Upper Middle Class

Bride = 25(No. of marriages) * Rs. 1, 50,000 = Rs. 37, 50,000

Bride Groom= 25(No. of marriages) * Rs. 55,000 = Rs. 13, 75,000
Other family members= 25(No. of marriages) * Rs. 1, 00,000 = Rs. 25, 00,000
Total = Rs. 76, 25,000

B) Total Sales from Premium Class

Bride = 25(No. of marriages) * Rs. 2, 50,000 = Rs. 62, 50,000

Bride Groom= 25(No. of marriages) * Rs. 95,000 = Rs. 23, 75,000
Other family members= 25(No. of marriages) * Rs. 1, 50,000 = Rs. 37, 00,000
Total = Rs.123, 75,000

Therefore total sales = Sales from upper middle class + sales from premium class
 = Rs.76, 25,000 + Rs. 1, 23, 75,000
= Rs.2, 00, 00,000
2) SALARIES:-

A) 2 designers - Rs. 25,000 each per month

B) 2 staff - Rs. 6,000 each per month
C) 2 Zari Workers - Rs. 3,500 each per month

Income Sheet of Bandana (Rs. In Lakhs)

Items Year 0 Year 1 Year 2 Year 3 Year 4 Year 5

Revenues :-
Sales from upper middle class
Bride 37.50 41.25 45.38 49.01 52.93
Bride Groom 13.75 15.13 16.64 17.97 19.41
other family members 25.00 27.50 30.25 32.67 35.28
Sales from premium class
Bride 62.50 68.75 75.63 81.68 88.21
Bride Groom 23.75 26.13 28.74 31.04 33.52
other family members 37.50 41.25 45.38 49.01 52.93
Total Revenue 200.00 220.00 242.00 261.36 282.27
Expenditure :-
Salaries 9.72 9.91 10.11 10.31 10.52
Payment paid to handlooms 125.00 137.50 151.25 163.35 176.42
Promotional Strategies 3.50 3.50 3.50 3.50 3.50
Lease 5.40 5.40 5.40 5.40 5.40
Middleman Commission 2.50 2.75
electricity bills 1.32 1.32 1.32 1.32 1.32
Total Expenditure 147.44 160.38 171.58 183.88 197.16
PBIT/ Operating Profit 52.56 59.62 70.42 77.48 85.11
Capital Expenditure 4.58

Net Cash Flow -4.58 52.56 59.62 70.42 77.48 85.11

Present Value (PV) -4.58 48.22 50.18 54.38 54.89 55.32
Horizon Value 3595.12

Net Present Value (NPV) 258.40

KEY FACTORS:-

There are number of factors ,which contribute towards the success designer boutique.

• Keeping minimum inventory.

• The dress designs should be according to tradition, emerging trends and fashion.

• The location should be properly selected .