FMC

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
  1. Yarn bobbin, Warping the yarn in beam.
  2. Designing the motif by yarn and weaving.
Tools &Equipmentrequired for production and prices
  1. Charkha: To separate the yarn into bobbin.
  2. Warping Drum: To roll the yarn from bobbin into warping beam.
  3. Reed: To pass each yarn into small iron stick on the reed.
  4. Measuring tape (Rs 30-50)- To measure the cloth size on the loom before weaving.
  5. Designing threads: To weave the design on the cloth.
  6. 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:

  1. Tie up with event management companies to display handloom products such as weddings, business events, corporate gatherings parties etc
  2. Small packs for consumers eg, 4 pieces in a pouch with cleaner for retail through ecommerce platforms, shops in cloth packaging
  3. Participate in National and International Exhibition etc.
  4. 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