Baby Walker

Overview

Product Idea and description	A natural, eco-friendly, biodegradable, organic substitute of plastic baby walker. Can be set up as household manufacturing unit.
Target group	Retailers or e-Markets New Born Baby of age up to 2 years
Raw material required	Solid bamboo MDF or plywood for wheels
Production capacity, facility and labour required	Small unit – Production capacity 400 pcs per month and involving 2 manpower (1 design & cutting, 1 assembly) require approx.250 sq. ft space.
Production Process	Procurement of raw material, design, cutting, assembly &finishing Cutting the bamboo into pieces for making various parts of baby walker. Making 4 wheels of about 7.5 cm diameter and 4-wheel connectors, Assemble the entire structure and attach the wheels, and thenuse sand paper for finishing
Tools &Equipment’s required for production and prices	Power Hacksaw (INR 3000) –For cutting the Bamboo in pieces Drill Machine (INR 5000) – For making holes in the wheels General Tools Boxes (INR 10,000) – For assembly of joints Sand Paper &Paint (5000) – For Finishing
Financial linkages/ Government schemes	Regional Banks or FIs PMEGP, SIDBI etc.
Pricing Strategy	INR400
Package, storage and transportation requirements	Final product is packed wooden box forlogistic Finished bamboo walkershould be stored in dry places
Marketing strategy	Estimate of the global market size of baby productsis USD 108 billion and market research analyst predict the global baby walkers’ market to grow at a CAGR of around 3% in 2020-2024. The size of Indian baby care industry is about Rs.98000 crores of which Rs.5000 crores accounted for toys and utilities. And it is expected to grow to Rs. 11000 crores by 2026. Major suppliers-Fisher-Price, Funskool (India) Ltd, Mattel Inc, MEGA Bloks, Masoom Playmates, Simba Toys, etc. B2C markets -Retailers, e-Commerce and Malls Marketing strategy: Tie up with local Retailers which are dealing in baby care products and toys E-Marketing also help in selling the product directly to consumers
Distribution Channel	E-commerce, local retailers, buyers

Production stage

Raw Material Procurement like Bamboo & plywood for making wheels

Design & cutting of raw material according to design size

Assembly-assemble the entire structure & attach the wheels

Sand the surface of the components by using sand paper for finish

Product SWOT Analysis

Strengths	Weaknesses	Opportunities	Threats
Eco-friendly Low cost Easy to cultivate and manage to produce/source quality raw material Easy to locate and transport	Production process is time consuming	Future expansion through export Awareness for eco-friendly products is on the high front	Alternatives available such as Plastic walkers Poor marketing plan and weak market linkages will pose a challenge to both sales numbers and awareness among masses

Financial Plan

To start the baby walker manufacturing business, one can invest 4.92L INR with a working capital requirement of 1.42L INR per month, assuming the working capital cycle is 25 days and runs for a total of 8 work hours in a day.

Financial Summary Sheet:

S.No	Parameters	Unit	Value
1	Capital Cost	INR	492300
2	Working Capital	INR	1704000
3	Total Cost of Investment	INR	2196300
4	Sales	INR	3360000
5	Gross profit	INR	1163700
6	Tax @ 30%	INR	349110
7	Net Profit	INR	814590
8	Pay Back Period (Total Investment/Net Profit*12)	Months	32

Capital Cost:

S.No	Parameters	Value
1	Land & Building	400000
Machinery & equipment
2	Power Hacksaw & Drill Machine	8000
3	Welding Machine	20000
4	General Tool Boxes	10000
5	Other equipment and accresories	5000
6	Electrification & Installation @ 10% cost of machinery	4300
7	Pre-Operative Expense	10000
8	Cost of Office Equipment	35000
9	Total Capital Cost	492300

Working Capital:

S.No	Parameters	INR/Unit	Value
1	Workers (2 No.)	8000	16000
2	Manager (1 No.)	15000	15000
Raw Material & Utilities
3	Raw Material		80000
4	Utility per Month		8000
5	Water		1500
Other Contingent Expenses
6	Repair & Maintenance		1000
7	Transportation		8000
8	Telephone		1000
9	Other Consumables		1000
10	Advertisement & Publicity		3000
11	Postage & Stationary		500
12	Insurance		5000
13	Miscellaneous Expenses		2000
14	Grand Total of Working Capital (1 Year)		1704000

Turnover Calculation:

S.No	Parameters	Unit	Value
1	Production per Month	Pieces	400
2	Selling Price per Product	INR	700
3	Turnover per Month	INR	280000
4	Annual Turnover	INR	3360000

Baby Walker

Training Programs