Executive Summary

India among top 5 nation in flexi staff base, but among lowest in terms of penetration just at .
32%.This is projected to touch 10% by 2025 .Immense opportunity exist for a upcoming
start-up for providing solutions to temporary staffing recruitment in India. This start-up will be
catering to professional, white collared and blue collared staff. Supplementing it will services
of compliance management and payroll outsourcing .Initially having its territory as DelhiNCR, later on expanding to Pan India in a period of 1.5 yrs.
The potential exists at the same time presence of challenges such as stringent sourcing for
unorganised blue collar staffing, replacement of permanent recruitment for junior level
through staffing, absence of compliances, over 1000 unorganised players, outdating of
archaic laws.
Catapult management specialises in providing recruitment solutions for permanent hiring
services. It has been successfully associated with fortune 500 companies since 1993.
Catapult management will source and manage transfer of employees on third party,
additionally building capacities to serve companies for temporary staffing. It will also provide
efficient reporting tools to track the level of compliances and employment management from
time to time.
1.1 Mission
Catapult will offer its customers best methods to manage employment and planning
successfully implementing staffing solutions for them. Our services will cut through the
complexities of hiring and provide a smooth process driven solution to our clients.
We will exceed our customers expectations and optimise their ROI.

2. Company Ownership

Company will be owned by Mr Ashok Kalra.

2.1 Start Up Summary
The following table shows the initial cost of Catapult Staffing.

Start Up Funding
Start-up expenses

6, 70,000

Start-up Assets to Funding

1, 00,000

Total Funding Required

7, 60,000

Assets
Non Cash Assets

75,000

Cash Assets

25,000

Total Assets

1, 00,000

Long Term Liabilities

1, 00,000

Capital

1, 00,000

Total Planned Investments

1, 00,000

(All amount are in INR)

2.2 Break-up of Start-Up Expenses

Salaries for a period of one year

5, 60,000

Software

1, 00,000

Brochures

10,000

2.3 Services Offered by Catapult Management under its Staffing SBU

Catapult will be offering a gourmet of following services, broadly consulting organisations on
following points-:

Understanding the vital temporary staff needs of the organisation, segmented into
professional white collared, skilled and semi- skilled as well as blue collar staffing
requirements.
Employment Management through payroll outsourcing and compliance management.
Generating capacities both for sourcing and transfer management of personnels on
third party pay roll on due payment from the parent company for which transaction is
done.

2.4 Industry Analysis Summary

1.3 million, or 3% of organised sector employment in India.

This is projected to touch 10% by 2025

79% of such workers are in the 21-30 age group.
Three types of Flexi Staffing 1) Professional 2) General (White Collared) 3) General
(Blue Collared).
Persons with general graduate degree (54%), higher secondary certificate (17%),
and secondary certificate (9%), hold the largest share of flexi jobs.
Average salary of a flexi worker around INR 10,000 a month. 94% paid through
banking channels.
India is amongst the top 5 nations in terms of flexi staff base, but among the lowest in
terms of penetration at 0.32%.
27% of Indians joined the flexi workforce due to lack of any alternative opportunity in
the format sector.
Most flexi jobs in India continue to happen at the lower end of the skill spectrum such
as data operations, accounts, sales, back end operations, administration and
marketing.

2.5 Staffing in India

As mentioned, Flexi staffing is a very nascent industry in India. It has been growing with
changing business dynamics in the face of increased cyclical volatility and gradual
structural shifts in the economy. The working age group population estimate stands at
743.8 million in 2011 and about 61% of the total population. Among these, the labour
force consists of the subset of working age population who are willing to work for a
benefit cash or kind. The buzzword here is willing, and thus labour force by definition

includes both employed and unemployed. In other words, those among the working age
group who are students, homemakers, ill, or simply not interested in working for some
reason or the other are not included in the labour force. The labour force of India (in 1559 age group) as of 2011 is estimated at 418.4 million. Out of which 361.8 million are in
informal sector.

3. Industry Structure
The flexi-staffing industry operates on the basis of a tri-party agreement between the staffing
intermediary, flexi-worker and client/user organization. The flexi workers are hired by the flexi
staffing agencies, work in the facility and under the direct supervision of the client
companies, but receive salary from the flexi staffing agencies. The industry basically
operates on two revenue models. The flexi staffing agency receive a percentage of salary
(~10-20%) in addition to the remuneration and benefits paid to the employee or get a fixed
fee per month for every employee placed.
Flexi-workers
Given that the concept is comparatively new in India, with its genesis in the U.S during the
1960s, it took time to gain acceptance from different segments of the Indian workforce. But
today it is increasingly becoming popular in a range of demographic segments including
retired professionals, housewives, students, recent graduates and freelancers. People
looking for short term options, experienced people looking for specific experience, top notch
professionals looking for interim position are all benefitting from this new and emerging
space. Not to forget, the biggest beneficiary of the temporary concept has been the recent
graduates. The industry has given them an opportunity to experiment with different career
options and flexibility to find their desired career paths.

A notable trend these days is that people in their late 40s are also plugging themselves into
the temporary segment. These are the professionals who are past their professional career,
or those who cannot fit themselves permanently into the corporate environment anymore.
Another segment which is increasingly showing interest is the home makers, who are willing
to work during rush hours in retail outlets and man the cash counters.
Based on the acquired skill set of temporary market, it can be divided into three categories-:

3.1 Strategy & Implementation Summary

Catapult through its extensive network in permanent recruitment and through perusal of
business development activities will make way to leverage staffing business in Delhi NCR
area. In addition Catapult will launch a cold and qualified calling campaign to target new and
existing clients.
3.2Marketing Strategy
With over 2000 potential companies to be targeted, Catapult will target through cold calling,
building mapping and email campaign 500 companies per quarter, estimating a 10%
response rate will generate leads of 50 potential, leading to prospecting of business. Over
the year we will be able to touch base 200 companies per year.
3.2.1Sales Strategy
Keeping it short and simple, we will touch base our prospective clients, also cross sell our
services with our existing clients of permanent recruitment.
3.2.2Sales Forecast
Following is sales forecast for 12 months for first year from companies practising staffing
potential new clients.

Sales by Year

Sales for First Year

25, 00,000 INR

Sales for Second Year

32, 50,000 INR

Sales for third Year

42, 25,000 INR

4. Management Summary
Mr Ashok Kalra will be taking care of tactical management of the enterprise, however there
will be three other personnels supporting the staffing domain.
1) Operations Executive to finalise contracts and ensure payments are received on time.
2) Legal team to support implementation of compliances and in time disbursal of salaries.
3) Business Development Manager/Executive to funnel new business and pipeline.
5. Break Even Analysis

Yearly Expenses for 1-st

Year
Sales
Revenue
First
Quarter
Sales Revenue Fourth
Month ,Second Quarter
Total Sales Revenue till
Fourth Month
Break Even Point

7,60,000 INR
6,00,000 INR
2,00,000 INR
8,00,000 INR
Second
Month

Quarter

Fourth