BUSINESS PLAN

OF
“APPSS EXPORT
HOUSE”
“WE EXPORT COMMITMENTS”

Presented by:-
ANIKET SETHI (109115)
PALLAVI
SEHGAL(109306)
POONAM
YADAV(109308)
 SHALINI
KATHURIA(109332)
SHIVALI
GROVER(109333)

Executive Summary
APPSS is a start up export house for chicken suits manufacturer
(both men’s wear and ladies wear and other households items). Its
strategy is to serve the upscale middle class and upper class. The
chicken work is basically done in Lucknow. The company
intention is to export its product to Islamic countries and to make
APPSS export house to be known brand name. A company long
term goal are to achieve 5 to 10% of market share, build brand and
brand equity through marketing, achieve a sustainable 30 to 35%
profit margin, and moderately price line with a good quality
product. APPSS is registered in Apparel Exports Promotion
Council of India and participating in various Export Promotion
Exhibitions like India International Garment Fair organized every
year in Pragati Maidan, New Delhi.

The Company
APPSS is a privately-held international corporation managed by
highly qualified professional entrepreneurs. Production takes place
in INDIA and sales and marketing are focused on the Saudi
Arabia, Afghanistan, and Kuwait.
Ownership is divided among five principal individuals who are
putting up the initial investment. These include:
Aniket - Head of Production Department,
Pallavi - Head of Sales and Marketing division,
Poonam - Head of Finance Department,
Shalini - Head of HR Department,
Shivali - CEO of the Export House
The APPSS factory is located in Udhyog Vihar, GURGAON
(SEZ area). The factory is 1,000 square meters and should be large
enough for the first three years of the company's growth. The
fabric will be shipped to targeted country. The fabric will be
initially sold in Afghanistan.
.
The Products

The initial product line will be males and female’s wear with
sporting characteristics. The company plans to release two
versions, the "male’s and female’s wear and the "household
items”.
The pricing strategy will be to initially undercut our main
competitors by 10%, using a market penetration strategy. Then,
pricing will be adjusted to be directly competitive with the other
major competitors. The price will vary as per the product category.

Financial Considerations

The Company’s start up costs will be - Rs.1, 01, 70,000. Owners'

equity will provide Rs.76, 95,000. Another Rs.13, 50,000 in
funding will consist of short-term borrowing, and the rest will be
long-term loans. The majority of the start-up costs will consist of
rent, research and development, initial inventory, and a strong cash
account. The Break-even Analysis shows APPSS EXPORT
HOUSE will be able to make a steady profit by the second year.
Objective

1. To make APPSS the number one EXPORT HOUSE.

2. To achieve 30 - 35% profit margin.
3. To achieve a 5 – 10% market share in the Islamic countries
like Afgnisthan, Kuwait and Saudi Arabia.

Mission

The company will build its image as a quality, and then will
begin selling higher profit, luxury garments.
 Key to success
To succeed APPSS EXPORT HOUSE must:

• Build and sell high quality products.

• Achieve 100% customer satisfaction.
• Build brand image and brand equity through marketing.

Company Summary

APPSS export house sells quality product and provides excellent

customer service for customers seeking a reliable fabric. In the
future APPSS export house intends to enter in decorative items
and will intends to use embroidery fabric for making further
product.

Company Ownership
APPSS export house is a privately held corporation. Production
takes place in Lucknow and sales and marketing are focused on the
Afghanistan and gulf countries mainly.
Ownership:

All five owners are at equal ownership in the company so, profit
will be distributed equally.

Start-up Summary
Sixty percent (60%) of start-up costs will go to assets. Start-up
costs will be financed through the owners' investments, and loans.
The assumptions are shown in the following table and chart.
Start-up Expenses

Legal Rs.9,00,000

Stationery etc. Rs. 22,500

Brochures Rs. 1,35,000

Consultants Rs.4,50,000

Insurance Rs.4,50,000

Rent Rs.9,00,000

Research and Development Rs.4,50,000

Expensed Equipment Rs.4,50,000

Other Rs.3,37,500

Total Start-up Expenses Rs.40,95,000

Start-up Assets

Cash Required Rs.31,50,000

Start-up Inventory Rs.11,25,000

Other Current Assets Rs.2,25,000

 Rs.
Long-term Assets
15,75,000

Rs.
Total Assets
60,75,000

Total Requirements Rs.1,01,70,000

Start-up Funding

Start-up Expenses to Fund Rs.40,95,000

Start-up Assets to Fund Rs.60,75,000

Total Funding Required Rs.1,01,70,000

Assets

Non-cash Assets from Start-up Rs.29,25,000

Cash Requirements from Start-up Rs.31,5,000

Additional Cash Raised Rs.0

Cash Balance on Starting Date Rs.31,50,000

Total Assets Rs.60,75,000

Liabilities and Capital

Liabilities

Current Borrowing Rs.13.50,000

Long-term Liabilities Rs.20,000

Accounts Payable (Outstanding Bills) Rs.2,25,000

Other Current Liabilities (interest-free) Rs.0

Total Liabilities Rs.24,75,000

Capital

Planned Investment

Investors Rs.76,95,000
Additional Investment Requirement Rs.0

Total Planned Investment Rs.76.95,000

Loss at Start-up (Start-up Expenses) (Rs.40,95,000)

Total Capital Rs.36.00,000

Total Capital and Liabilities Rs.60.75,000

Total Funding Rs.1,01,70,000

Company Locations and Facilities

 • The Lucknow factory is located at Industrial Area, Post
Sikandarpur Banthara, Lucknow.
• The factory is 1000 square meters and should be large
enough for the first three years of the company's growth.
• The fabric will be initially sold in Afghanistan.

Product Description
APPSS export house provide a quality suits for both menswear and
ladies wear and other households product like table cloth, sofa
cover, TV cloth etc. The work done on the garments is a handmade
chicken work which is basically done in Lucknow.
Competitive Comparison
APPSS EXPORT HOUSE will have the following sustainable
competitive advantages:
1.High quality at a moderate price.
2.Elegant and ergonomic styling.
3. Indian marketing skills.

Sales Literature
APPSS EXPORT HOUSE will use advertising, public relations,
and sales programs to make the public aware of the Chicken
Fabrics.
• Advertisements and public relations pieces in local
newspapers - particularly Times of India, Delhi times.
• Full-color brochures will be distributed at the various outlets
where the chicken suits are sold.
• Export Promotion through exhibitions like India India.
International Garment Fair organized in Pragati Maidan,
New Delhi every year.
• Organizing Fashion Shows around the world.
Sourcing
We will only sell/export garments produced at our production
units, therefore additional sourcing will not be necessary.
However, the sourcing of raw materials for the manufacturing of
the garments will play a constant role in the firm's profitability.

MARKET ANALYSIS SUMMARY

The purchase of mid-level and high-level Lucknow fabrics has
increased by 50 percent over the past two years. We expect the
sales to continue growing, and to capitalize on this ever-present
market for fabrics- people will always need and buy fabrics.
 MARKET SEGMENTATION
The market segmentation is divided into the leading target
markets. The division reflects the differences in marketing strategy
that will be used to target each different market.

• The people who follow trends

• Older adults who simply have good taste and a sense of style.
• Wealthier college students.
• Still fashionable senior citizens.

TARGET MARKET SEGMENT STRATEGY

The fabric industry, particularly the upscale markets, is growing
faster than ever. Potential fabric buyers are willing to spend
moderate to high amounts on garments because they can make the
customer look good - and hence feel good about them. In addition,
customers will see the inherent value in the fabrics.
The upscale niche market that APPSS has targeted is competitive
because of the competitors and the discerning consumers it serves.
However, the competition is based more on quality than price
unlike the discount market.

MARKET NEED

The upscale Garment industry is currently in a growth period, so

now is an ideal time for entry.
 MARKET TRENDS

1. The cost of marketing the new product is expected to be

the biggest challenge for APPSS. The initial use of
distribution channel will allow for cost savings.
2. The lack of an existing recognized brand name will be an
initial problem, but in a few years APPSS FABRICS
intends to have achieved powerful brand equity -
allowing it to rely on, and succeed because of its brand
name.

MARKET GROWTH
The leading competitor is Saqlain Exports, Lucknow.
Consumers often only buy new FABRICS every 5 to 10
MONTHS, yet they purchase them often as gifts. Therefore,
advertising will be increased during the Eid holidays.
The intended retail outlets are full price and full service, therefore
APPSS will not need to use an extreme price penetration strategy
to gain a foothold in the market.

MAIN COMPETITORS
Our main competitor is Saqlain Exports, Lucknow.
Our next closest competitor is MODELAMA EXPORTS,
GURGAON.
 Both of these firms have strong brand equity, but there is room in
this market for a new company as brand loyalty is not high on
potential consumers' reasons for purchasing.

Management Summary
APPSS export house is currently not hiring any more employees.
The decision has been made to postpone further hiring until the
company begins to succeed.
After analysing the result of one year, we will expand accordingly,
Organizational Structure
APPSS Exports is split by both location and functionality. The
production units are in Lucknow (for Embroidery work by Artists )
and Gurgaon (for Machinery Work ) . The sales and marketing,
and finance and administration divisions are located in Gurgaon
run by five people.
Management Team
ANIKET SETHI: head of production department.
PALLAVI: head of the marketing department.
POONAM YADAV: head of the finance department.
SHALINI: head of the HR department.
SHIVALI: CEO of the export house.

Management Team Gaps

The following important gaps exist:

• The present team has little sales experience.

 • There is no current in-house designer - this should be
corrected within a year.
• There is no international manager.

Personnel Plan
The personnel plan calls for adding six employees by the end of
the first year for a total of eight. And the hiring will give priority to
experience people or people from National Institute of Fashion
Technology as designers. After the second year, employment is
expected to increase by another twelve. These new employees will
go into production and sales.
Approximate number of workers (in both units) :-
Position ~Number of workers
Tailors 60
Fabric Cutters 15
Thread-cutters (use embroidery machines) 15
Pressers 8
Fabric and Accessories Storage Workers
Helpers 7
Accounts personnel 3
Miscellaneous 3
Total number of workers in both units: 110-120

Machines Used:-
Machinery includes Auto Zing Machine, Auto Pocket Welting
M/C, Programmable Sleeve Setter Stations, Auto Surging
Machine, Auto Dart Making Stations, Pneumatic Button Hemming
Stations, Differential Feed Machines Needle Feed Machine, Top,
Differential and Bottom Cylindrical Bed Unison Feed Machine,
Blind Hemmers, Auto Belt Attaching Stations, Multifusing with
Three Track of Loading (High Performance Macpee). Other
machines required are:

• Textile dyeing and finishing machines.

• Textile knitting machines.
• Textile fabric printing machines.
• Embroidery machine.

Some of our Suppliers:-

• Company Name: BHADANI INTERNATIONAL

Street Address: 351, New Cloth Market
City: Ahmedabad (Gujarat)
• Company Name: SILVER SPRING SPINNERS INDIA
PVT LTD
Street Address: 118 / A, Velayutham Road
City: Sivakasi (Tamil Nadu)
• Company Name: Polyfibre Industries Private Limited
Street Address: 82 Maker Chambers III, Nariman Point
City: Mumbai (Maharastra)
• Company Name: Natural Clothing Pvt. Ltd.
 Stree Address: A, Esplanade East, 2nd Floor
City: Kolkata (West Bengal)

Projected profit and loss:-

We expect losses in the first few months, because it will take time
for the store to build momentum and generate traffic. However,
once sales increase, the results are positive because many of the
other expenses will remain fixed. In fact, we expect that sample
inventory costs will actually go down in years to come. Some raw
material suppliers will provide raw material at deep discounts once
good credit terms are established.
Some of our Collections:-
 PORTER’S FIVE FORCE MODEL

1. RIVALARY AMONG EXISTING FIRMS:

As there are many firms and export houses who
are also deals in exporting chicken suits like
Saqlain creations in Lucknow and modelama
exports in Gurgaon and they export chicken suits
and other products to US, UAE and other
countries.
2. THREAT OF NEW ENTRANT:
In future if the exporting firms or export houses
plans to expand their business and start dealing
in same countries in which we are dealing, then
it will be a threat to us. Also the new export
houses can target the same product in the same
countries.
3. THREAT OF SUBSITUTES:
Threat of substitute can be garments with stud
work, cotton embroidery, can be garments in
other fabrics etc.
4. BARGAINING POWER OF BUYER:
As per our information we are the only exporters
of chicken suits fabrics in these countries. Other
exporters are dealing or exporting medicines, oil
 wool, food product etc. The barging power of
buyer is less in our case.
5. BARGAINING POWER OF SUPPLIER:
As we are the only exporters of chicken suits
garments and until and unless there is no
substitute in market we have more barging
power.
 REGISTRATION OF APPSS EXPORT
HOUSE

• EXPORT PROMOTION COUNCIL OF

HANDICRAFTS.
• EXPORT PROMOTION BUREAU U.P.
• APPAREL EXPORT PROMOTION COUNCIL.
• INDIAN TRADE PROMOTION COUNCIL.
• DIRECTOR GRNERAL OF FORIIGN TRADE.
• SMALL SCALE INDUATRIES, LUCKNOW.