FMC

Bamboo Contemporary Lifestyle Products

Overview

Product Idea and description
  • A natural and eco-friendly substitute to plastic and unsustainable lifestyle products
  • Durable and more aesthetically beautiful than other products
  • Can be set up as household manufacturing unit.
Target group
  • Retailers or e-Marketing
  • Places of high gathering or high frequency of visitors (like industries, Offices, Hotels & Restaurants, Buyers-sellers meets ,trade fairs etc.)
Raw material required
  • Bamboo
  • Wood
  • Wire
  • LED lights
  • Fittings
  • Polish & color
  • Fitting for key holder
Production capacity (No’s)
  • Living room table (500 No.) – 4000 each
  • Living room stool (2000 No.) – 800 each
  • Recliners (1000 No.) – 1500 each
  • Toys (3000 No.) – 300 each
  • Beer mugs (18000 No.) – 50 each
  • Tabletop planter (18000 No.) – 40 each
  • Table lamp (5000 No.) – 500 each
  • Key Hangers (4000 No.) – 400 each
Labour Required (Nos.)
  • Skilled worker-4
  • Semiskilled worker-2
  • Polisher-1
  • Painting artist-2
  • Design consultant-1
  • Business management-1
  • Packaging -2
  • Helper-1
Production Process

The major steps in production of the planned products in the proposed project involves

  1. Procurement of Mature Bamboo from different source
  2. Cross Cutting of Bamboo in Required Sizes
  3. Treatment of Bamboo Chemically/ Naturally required as per the cliental demand
  4. External knot removing
  5. Sizing of bamboo
  6. Turning of Bamboo
  7. Finishing
  8. Polishing
  9. Painting for Value Addition
  10. Packaging
Tools & Equipment’s required for production and prices
  • Cross Cutting Machine
  • Power tools (Grinder & Drill)
  • Dust Collector
  • Zig Saw Machine
  • Pillar Drill Machine
  • Light Turning Machine
  • Bamboo Cutter
  • Belt and Disc Sender
  • Bamboo Hand Splitter
  • Multi-purpose Bamboo Machine
  • Botchery Machine
  • Capillary Digital
Financial linkages/ Government schemes
  • Own contribution
  • Bank finance, Term Loan, Banking Capital
  • NBM from OBDA
Pricing Strategy
  • INR 40-4000
Package, storage and transportation requirements
  • Final product is packaged in wooden or corrugated box.
Marketing strategy

The Indian bamboo market is likely to reach INR 40,174 crore by 2028 from INR 24,353 crore in 2018 at a growing CAGR 7.4% from 2018 t0 2028. Of all categories in India bamboo products market the lifestyle sector is the ideal category market as it has forecast CAGR (2019 -2028) of 8.3% which is higher than overall market forecast 7.4%.

The prevailing ideal condition and growing demand of bamboo products in the market coupled with the exiting market of the entrepreneur creates a favourable marketing conditions for the entrepreneur. The entrepreneur will also have an existing brand outlet which will help her to get a regular retail sale.

Major Suppliers- Amazon, Myntra, Tata Clique, Flipkart, India Mart, Trade India and Exporters India

B2C Markets- Retailers, e-Commerce and Malls

Marketing strategy:
  1. Tie up with local Retailers which are dealing in home interiors and decorative products
  2. E-Marketing also help in selling the product directly to consumers
Distribution Channel
  • E-commerce, local retailers, Buyers, buyer-seller meet, etc.

Production stage

Product SWOT Analysis

Strengths

Weaknesses

Opportunities

Threats

  • High product quality
  • High art idealism
  • Strong corporate culture
  • Good promotional strategy
  • No merchants
  • The atmosphere is relatively quiet and comfortable
  • Good market potential
  • High return on investment
  • New & refreshing
  • Less clear marketing target
  • Incomplete infrastructure facilities
  • Lack of investment capital, expertise and entrepreneurial ability
  • Cultural shock to village community
  • Increase in cultural awareness
  • High value tourism prospects
  • Good governmental relationship
  • Health conscious trend
  • Loyal returning customers
  • Increasing market competition
  • Lack of bamboo suppliers
  • Increasing bamboo’s price
  • Competitor is located nearby
  • Competitor offers cheaper price

Financial Plan

To start the bamboo contemporary lifestyle products manufacturing business, one can invest 11.47L INR with a working capital requirement of 7.41L 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.NoParametersUnitValue
1Capital CostINR1147250
2Working CapitalINR8892000
3Total Cost of InvestmentINR10039250
4SalesINR16200000
5Gross profitINR6160750
6Tax @ 30%INR1848225
7Net ProfitINR4312525
8Pay Back Period
(Total Investment/Net Profit*12)
Months28
Capital Cost:
S.No Parameters Value
1 Land & Building 600000
Machinery & equipment
2 Cross Cutting Machine 29500
3 Power tools (Grinder & Drill) (4 No.) 28500
4 Dust Collector 42500
5 Zig Saw Machine 33000
6 Pillar Drill Machine 52000
7 Light Turning Machine 42500
8 Bamboo Cutter 50000
9 Belt and Disc Sender 40000
10 Bamboo Hand Splitter (6 No.) 9000
11 Multi Purpose Bamboo Machine 95000
12 Borcheri Machine 24000
13 Capiller Digital 1500
14 Electrification & Installation @ 10% cost of machinery 44750
15 Pre-Operative Expense 20000
16 Cost of Office Equipment 35000
17 Total Capital Cost 1147250
Working Capital:

S.No

Parameters

INR/Unit

Value

1

Workers (12 No.)

8000

96000

2

Designer

20000

20000

3 Accountant (1 No.) 12000 12000

4

Manager (1 No.)

15000

15000

Raw Material & Utilities

3

Raw Material

550000

4

Utility per Month

15000

5

Water

1500

Other Contingent Expenses

6

Repair & Maintenance

5000

7

Transportation

2500

8

Telephone

2000

9

Other Consumables

1000

10

Advertisement & Publicity

2000

11

Postage & Stationary

1500

12

Insurance

15000

13

Miscellaneous Expenses

2500

14

Grand Total of Working Capital (1 Year)  

8892000

Turnover Calculation:

S.No

Parameters

Unit

Value

1

Production per Month

Pieces

1500

2

Selling Price per Product

INR

900

3

Turnover per Month

INR

1350000

4

Annual Turnover

INR

16200000