Production and marketing strategies for a new entrant in the business of office furniture of moulded plastics

Abstract

This project is a dream project of two graduating student of IIM-A both are engineers and one of them has work experience of about 4 years. Products they are going to produce are very innovative and attractive and very much user friendly and will satisfy need of a particular nature which are not being fulfilled at present. The products are modular designed plastic office furniture. The raw material used is ABS plastics. Initially they will produce 5 products i. e. Cabinet with three types of drawers, Rack, Drawer, Tray and Floppy Box. The total project cost is Rs. 64 lacks and will come under small scale unit of the total amount equity is of Rs. 23.76 lacs debt Rs. 31.48 lacs and government subsidy is of Rs. 9.73284 lacs. Dangs, a Backward district in Gujarat but developing very fast has been chosen as the project site since various kinds of facilities are available here and it is close to the main market that is Bombay. All the details about raw material sources and sources of required machineries have been given with proper addresses. A well thought business plan and implementation plan has been given in the report. The two aspiring promoters have decided to study the market and all related aspects of business in great detail and make a full proof plan before setting up the project this is because they are first generation entrepreneurs and want to reduce the risk to lowest possible level this is also to have hands on experience of the market before venturing into it . Total manpower requirement of the project is about 30 including them a few innovative and cost saving methods of promoting the products have been thought of At present there is only one Bombay based producer of this kind of products. A detailed analysis has been done about the competitive advantages of this project vis-a –vis its competitor. Social benefits of the project have been enumerated. A meticulous financial analysis of the project has been done which shows this project is extremely profitable and IRR of the project is 89% NPV Rs. 2,44,84,037 and DSCR is coming over 4.