FMC

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
  1. Procurement of raw material, design, cutting, assembly &finishing
  2. 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
  1. Power Hacksaw (INR 3000) –For cutting the Bamboo in pieces
  2. Drill Machine (INR 5000) – For making holes in the wheels
  3. General Tools Boxes (INR 10,000) – For assembly of joints
  4. 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:

  1. Tie up with local Retailers which are dealing in baby care products and toys
  2. 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.NoParametersValue
1Land & Building400000
Machinery & equipment
2Power Hacksaw & Drill Machine8000
3Welding Machine20000
4General  Tool Boxes10000
5Other equipment and accresories5000
6Electrification & Installation @ 10% cost of machinery4300
7Pre-Operative Expense10000
8Cost of Office Equipment35000
9Total 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