EXECUTIVE SUMMARY

In today’s modern era, we often hear of successful startups being started by

youngsters who have just graduated from college or maybe even college

dropouts. We are living in an era where entrepreneurism is encouraged rather

than being frowned upon.

This project is about three college graduates opening a customized T-shirt

business. Today, t is a growing market of Western movies, TV shows and an

overall pop culture. This has resulted in growing sales of merchandise for the

same, including T-shirts. However, due to the humongous number of shows and

movie, there are high chances of people not getting the exact design or quotes

they desire in their T-shirts when they go for shopping in retail stores.

Thus, customized T-shirts is the perfect solution for them, as they can submit

their custom designs and quotes and get a T-shirt with the same. This is also

aided thanks to the growing e-commerce market which has helped tap into and

connect with the target market i.e. the youth (15 – 25 years age group).

Due to the growing popularity of the same, one of the major factors is the

pricing. This target market is very price-sensitive and a low price is bound to

result in high demand for the products and lead to success.

My project explores the intricacies of the same by looking at the various factors

such as the product, market potential, raw materials, plant and machinery,

marketing plan, finance and profitability, amongst other factors.

. Contents

Project at a Glance 7

Promoters and Management 8

Project Outline 9

Product & Market Potential 10

Manufacturing Process 12

Location 14

Factory/Shop Building 15

Utilities 16

Raw Materials 17

Plant & Machinery 18

Marketing Plan 19

Term Loans and Working Capital 21

Cost of the Project 22

Means of Finance 23

Profitability Statement 24

Notes to Profitability Statement

Project at a Glance

The management is setting up a new company called ‘Tees & Prints Pvt Ltd’.

The company is setting up a unit at 101, Hamilton Industries, Borivli (E) to

manufacture customized T-shirts.

The project is promoted by Mr. Shrey Mehta, Mr. Hussain Kathawala and Mr.

Anirudh Jain, who are the directors of the company. The registered office of the

company is at 102, Link Road, Borivli (W), Mumbai – 400 103. All the

directors are first-time entrepreneurs having a thorough understanding of the

industry, and having worked on a customized T-shirts stall in their college days

with moderate success.

The estimated cost of the project is 15 lacs with all the partners having an equal

stake in the company.

The unit will have an annual capacity of manufacturing 50,000 t-shirts.

Promoters and Management

The project is promoted by Mr. Shrey Mehta, Mr. Anirudh Jain and Mr.

Hussain Kathawala, who are also executive directors of the company. They are

undertaking this business venture due to growing demand for customized and

unique T-shirts with designs which are not otherwise available in the market at

a competitive price range.

Mr. Shrey Mehta, aged 22 years has completed his graduation in BMS

(Bachelor of Management Studies) and is currently pursuing his MCom from

Vivek College. He has worked for 1 year at a private equity firm, where he has

developed a deep knowledge of the clothing sector in India and this has

prompted him to take advantage of the growing demand for unique T-shirts by

planning an entrepreneurial venture manufacturing customized T-shirts. He is in

charge of the financing of the company and ensuring that the company raises

the adequate funds for its smooth functioning in addition to making healthy

profits in the long-term.

Mr. Anirudh Jain, aged 23 years has completed his MBA from Symbiosis

University with specialization in marketing. He has interned for 2 summers at

VistaPrintz, one of the most successful makers of customized gift items in

Mumbai. He is in charge of marketing and logistics.

Mr. Hussain Kathawala, aged 21 years has completed his graduation in BMS.

He has worked at his cousin brother’s T-shirt printing press for 1 year and has

thorough knowledge on the overall functioning of how to run a customized T-

shirt business. He is in charge of operations and HR management.

Project Outline

The company plans to set up a plan to manufacture t-shirts with customized

printing and to set up an office-cum-shop to interact with customers and to

make plans and strategize. The basic raw materials are cotton or polyester.

The company will set up a semi-automatic plant. The manufacture of T-shirts

will be largely machine-based, with employees hired to oversee the production

and operate the machines.

Different types and qualities of T-shirts can be made in the same plant.
Product & Market Potential

The unit is set-up to print customized t-shirts.

The promoters/directors have experience with managing such a firm, and have

broad skills in the domains of finance, marketing, operations etc.

The unit is expected to operate at 36% of its capacity in the first year, and

gradually scale up to 95% level of activity over the next 5 years, depending on

the growth in sales and demand.

The company expects to have retail customers as well as institutional clients,

such as companies wanting t-shirts with their logo for its employees.

Due to the growing influence of Western pop culture, there has been a growing

demand for T-shirts which feature iconic movie or TV show quotes and designs.

Despite a growth in these products, many youngsters (15 – 25 age group) have

specific needs in their T-shirts, which are not met by retail stores, leading them

to go to customized T-shirt stores to get the exact design they desire.

Aside from retail customers, some of the companies who are looking for

cheaper customized T-shirts and could become potential clients (through

contacts and the social network of the promoters) include:

1) KPMG

2) JP Morgan

3) Deloitte

4) Morgan Stanley

5) Vodafone

6) Airtel

7) Samsung

8) Sports teams for local schools and colleges

9) Colleges like NM, Mithibai, etc.

Aside from this, there are many retail clothing stores, as well as large retail

chains like Lifestyle, Shoppers Stop, Pantaloons etc. which could become
potential customers by purchasing the company’s t-shirts and reselling them for

a profit.

The company would also be looking to have a digital presence, by opening its

website, where customers can email the company their designs, and get it

delivered to their doorstep. In addition to this, the company would also be

looking to sell t-shirts with some of its best-selling designs on online platforms

such as Flipkart, Amazon, Snapdeal, eBay etc.

Manufacturing Process

TnP’s business is to print custom designs on t-shirts. The company sources its

plain T-shirts (raw material) from Aditya T-shirts. TnP chooses to not make its

own T-shirts because it requires heavy machinery, labour and land which

requires heavy capital expenditure right now. If the company’s products are in

demand after 2 or 3 years, the company will look to expand its product offerings

and make its own plain T-shirts which can then be printed upon.

Thus, for now, the manufacturing process is very easy, wherein it just prints

designs on the t-shirts. The process can be laid into a step-by-step process as

follows:

1) Wash t-shirts to check shrinkage or whether they lose colour

2) Assemble the t-shirt on the printer and print the design

3) Wash the t-shirt again to check the quality and durability of the print

4) Package the t-shirts and send them for delivery

The reason TnP has to wash the T-shirts twice (and not just after printing it) is

because t-shirts cannot be returned to the supplier once they’ve been printed

upon. Thus it is essential to ensure first whether the t-shirts are in perfect

condition before printing on them. All t-shirts that lose colour or shrink are kept

aside and returned to the supplier.

Also, if after printing, the t-shirt design loses its colour upon washing, then the

t-shirt is re-printed and tested again. If the design keeps fading after washing for

a particular t-shirt, then the t-shirt is discarded and it is a sunk cost. If, however,

multiple t-shirts in the same batch give the same problem, then the ink and the

machine are checked for quality issues.

After the printed t-shirts have passed the quality check, they are packaged with

the names and address of customers mentioned. This is then sent to the courier

company for delivery.

Later on, if the company achieves sufficient scale of operations, they would

look at manufacturing their own plain T-shirts inorder to benefit from

economies of scale and increase their profit margins. This will especially help

the company when it’s faced with a high number of orders, as it can increase

production of plain t-shirts as needed instead of having to rely on Aditya t-shirts

who may or may not have the excess quantity of t-shirts and which wouldnormally take extra time.
Thus, the company also saves on time and can

complete orders on time even during periods of high demand and production.