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 Procurement of Mature Bamboo from different source Cross Cutting of Bamboo in Required Sizes Treatment of Bamboo Chemically/ Naturally required as per the cliental demand External knot removing Sizing of bamboo Turning of Bamboo Finishing Polishing Painting for Value Addition 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: Tie up with local Retailers which are dealing in home interiors and decorative products 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.No	Parameters	Unit	Value
1	Capital Cost	INR	1147250
2	Working Capital	INR	8892000
3	Total Cost of Investment	INR	10039250
4	Sales	INR	16200000
5	Gross profit	INR	6160750
6	Tax @ 30%	INR	1848225
7	Net Profit	INR	4312525
8	Pay Back Period (Total Investment/Net Profit*12)	Months	28

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

Bamboo Contemporary Lifestyle Products

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