Handloom Products

Overview

Product Idea and description	A natural, eco-friendly and bio base dyed eri, cotton, silk, etc yarn to weave it in traditional or modern loom to make outstanding handloom products. Can be set up as Industrial Unit.
Target group	Handloom traders and exporters Exhibitions, Designers etc.
Raw material required	Any type of weaving yarnof cotton, eri, tussar, mulberry etc.
Production capacity, facility and labour required	Monthly production of 150 pieces of weaving cloth, 7 weavers at 1000 sqftworkingarea is required, storage of raw material 150 sqft and finished product storage 50-60 sqft. Also, this setup will require more tools.
Production Process	Yarn bobbin, Warping the yarn in beam. Designing the motif by yarn and weaving.
Tools &Equipmentrequired for production and prices	Charkha: To separate the yarn into bobbin. Warping Drum: To roll the yarn from bobbin into warping beam. Reed: To pass each yarn into small iron stick on the reed. Measuring tape (Rs 30-50)- To measure the cloth size on the loom before weaving. Designing threads: To weave the design on the cloth. Loom: To weave the product on the loom.
Financial linkages/ Government schemes	National Handloom Development corporation to support enterprise KVIC to promote khadi and village industries.
Pricing Strategy	INR 5700
Package, storage and transportation requirements	Final product is packaged in cardboard packet for delivery in a dry place Finished handloom products can be stored in cardboard packets on racks
Marketing strategy	Estimate of Market size in India and globally India -The aggregate cloth production by the handloom sector stood at 8.01 billion square metres during the year 2018-19 registering 4.8% year-on-year growth.. Major B2B & B2C Portals – exportsindia.com, alibaba.com, indiamart.com, amazon.com, brownliving, vvegano, qtrove Major suppliers–Fab India, Weavesmart,gaatha.com etc. Marketing strategy: Tie up with event management companies to display handloom products such as weddings, business events, corporate gatherings parties etc Small packs for consumers eg, 4 pieces in a pouch with cleaner for retail through ecommerce platforms, shops in cloth packaging Participate in National and International Exhibition etc. Tie up with hotels/resorts for keeping handloom products as a part of their room kit and in eating area
Distribution Channel	E-commerce, local buyers, traders.

Production stage

Selecting and procurement of yarn if required natural and chemical dye

Bobin Of Yarn

Warping in drum

Reeding

Fitting loom and accessories

Weaving

Product SWOT Analysis

Strengths	Weaknesses	Opportunities	Threats
Eco-friendly, natural & organic yarns. Perfectly sustainable Durable and robust, Require less skilled general workforce to operate hand tools and small equipment. Low cost of set-up	Lack of knowledge for production process and detailing Prone to fungi and insect attacks	High demand from designers. High export potential E-commerce platforms viz. Amazon, Flipkart are already placing bamboo straws as part of their assortment.	Alternatives available such as synthetic yarn and power looms.

Financial Plan

To start the handloom production business, one can invest 23.81L INR with a working capital requirement of 4.26L 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	2381500
2	Working Capital	INR	5112000
3	Total Cost of Investment	INR	7493500
4	Sales	INR	10260000
5	Gross profit	INR	2766500
6	Tax @ 30%	INR	829950
7	Net Profit	INR	1936550
8	Pay Back Period (Total Investment/Net Profit*12)	Months	46

Capital Cost:

S.No	Parameters	Value
1	Land & Building	1000000
Machinery & equipment
2	Looms (7 No.)	530000
3	Dyeing Machine	315000
4	CADD Machine	270000
5	Pump Set & Water Tank	20000
6	Other Fixed Assets	30000
7	Electrification & Installation @ 10% cost of machinery	116500
8	Pre-Operative Expense	50000
9	Cost of Office Equipment	50000
10	Total Capital Cost	2381500

Working Capital:

S.No	Parameters	INR/Unit	Value
1	Workers (7 No.)	8000	56000
2	Accountant (1 No.)	12000	12000
3	Manager (1 No.)	15000	15000
4	Marketing Executive (1 No.)	15000	15000
Raw Material & Utilities
5	Raw Material		250000
6	Utility per Month		30000
7	Water		5000
Other Contingent Expenses
8	Repair & Maintenance		10000
9	Transportation		5000
10	Telephone		2000
11	Other Consumables		2000
12	Advertisement & Publicity		5000
13	Postage & Stationary		1500
14	Insurance		15000
15	Miscellaneous Expenses		2500
16	Grand Total of Working Capital (1 Year)		5112000

Turnover Calculation:

S.No	Parameters	Unit	Value
1	Production per Month	Pieces	150
2	Selling Price per Product	INR	5700
3	Turnover per Month	INR	855000
4	Annual Turnover	INR	10260000

Handloom Products

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