BUSINESS PLAN

Smart Handicraft

Handcrafted Things Never Go Out of Style!

Prepared and presented by: Anshu karna, Ragini & G. Almas

 CONTENTS

I. Executive Summary…………………………………………………………………..2
a. Objectives……………………………………………………………………….2
b. Keys to Success……………………………………………………………….2
II. Company Profile……………………………………………………………………….2
a. Company Ownership………………………………………………………3
b. Manufacturing……………………………………………………………….3
c. Location and facilities…………………………………………………….3
III. Management Team………………………………………………………………….3

IV. Industry Overview……………………………………………………………………3

a. SWOT Analysis……………………………………………………………….4

V. Marketing Plan…………………………………………………………………………5
a. Target Market………………………………………………………………..5
b. Market Needs…………………………………………………………………5
c. Competitive Edge……………………………………………………………6
d. Environment Analysis……………………………………………………..6
VI. Financial Plan……………………………………………………………………………6

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1. Executive Summary:-
Welcome to SMART HANDICRAFTS, the premium quality manufacturer and seller
of Wood ware, Hand printed textiles, Embroidered and crocheted goods, Shawls,
Embroidered goods, Bamboo products handicrafts. Our company offers the best
designer handicrafts. These handicrafts are made by using pure raw materials. Our
skilled craftsmen give their maximum to carve out the finest materials that is simply
great. Our strength lies in identifying and following the latest market trends. As
being a new entrant, we focus strongly on maintaining a good customer
relationship and strive towards providing quality products that fulfill the customer
needs.

Objectives:-
Being in handicraft industry we mainly focus on designing beautiful handicrafts by
utilizing the best raw materials. We offer a host of products tailored to the needs
of our customers. We believe that in order to succeed, a business needs a strong
client base and therefore concentrate on achieving the above said.

Keys to Success:-
The keys to success are as follows-
1. We focus on purchasing quality materials at minimum cost.
2. Charging competitive rates by our clients for the products.
3. Maintaining a favorable working condition for the employees and a good
relationship with suppliers and distributors.

2. Company Profile:-

Happy Handicrafts is a small scale handicraft company focused on providing the

finest quality handicrafts. It is a registered based enterprise under the Ministry of
Textile and Handicrafts, India established in the year2017. Primarily, the company’s
focus is on the production of interior decorative products and items used by
women as fashion. Our company is committed to produce quality materials
according to buyer’s satisfaction and at competitive price. We supervise a team of

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efficient and experienced personalities who are carefully involved in quality
production and distribution of our products. We arrange the selling on retail and
wholesale base and as desired by the buyer’s.

Company Ownership:-
The enterprise is a partnership at will, started and owned by its founder members
namely Anshu Karna, Ragini and G. Almas As the operation grows, the
management will consider in re-registering it as a private limited.

Manufacturing:-
We specialize in manufacturing and selling of handicrafts. The process includes
purchasing of raw materials from different houses located in different cities;
desired objects are carved out, shaped and polished by skilled craftsmen to obtain
the finished product.

Location and Facilities:-

We will start our venture with a small manufacturing facility based in Bangalore.
Raw materials will be sourced from houses in Bangalore and allied areas.

3. Management Team:-
Our company is well handled by our vastly experienced faculty who guide the
organization to success. In addition our efficient management staffs who are highly
skilled and knowledgeable in their respective areas of expertise; Anshu Karna will
primarily handle the marketing, advertising and positioning of the product. Ragini
will handle portfolio and financial aspect of the enterprise. G. Almas will be
handling the task of managing the clients and dealing with the suppliers as well as
managing the operational processes.

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4. Industry Overview:-
Crafts are an integral part in the life of an Indian, despite rapid advancement they
are considered as luxury items but in a developing country like India, it is a major
source of employment for the huge population, next to agriculture.
Handicrafts can be defined simply as objects made by the skill of the hand of the
creator as well as centuries of evolutionary tradition. They consists of objects
created by skilled people for religious rituals like weddings and celebrations and for
personal use as well as luxurious ones (antiques) created by craftsmen for specific
requirements. There is a timeless quality in these craft objects for they have
evolved over centuries and continue to be made today with the same sentiment.
After independence, Handicrafts board was setup to look into the plight of dying
crafts. Slowly the demand grew for these items both at home and abroad.
Improving educational system and lifestyles of the middle class people contribute
a lot for the eroding native crafts of India.
Before 2002, the handicrafts industry experienced a sudden downfall (especially
horn and bone handicrafts) which led to the decrease in sales of handicrafts and
also affected the industry. Presently, with the joint effort of Ministry of Textiles and
Handcrafts and prominent exporters, various exhibitions are being organized which
have contributed to create a positive image for the industry and has helped in its
revival.
The need of the hour is assistance for the craftsmen to improve their techniques,
availability of good raw materials, direct marketing channels, credit and enough
wages and socio-economic benefits.

SWOT Analysis of Handicraft Industry

Strengths
 Market is diversified and has huge potential
 Presence of large product variety because of various cultures
 Low capital investment
 Flexibility in production of goods as per market demand
 Low barriers to the entry of new players
 Products sold are high value ones and have diversified usage

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Weakness
 Lack of coordination between government bodies and companies
 Inadequate information on the current market trends
 Lack of skilled labor

Opportunities
 Development of domestic tourism sector which helps in boosting sales.
 Usage of internet and other technologies in boosting the market potential.
 Rising demand because of people becoming more open to cultures.
Threats
 Lack of branding opportunities in this sector

5. Marketing Plan:-
The marketing plan used by Happy Handicrafts Enterprises will be as follows:
This Enterprise will offer its line of products primarily to the upper class and upper
middle class. For acquiring this market segment, we will need to create relations
with suppliers who exclusively cater to the needs of such clients. The company will
position itself as an experienced provider of animal horn and bone handicrafts,
jewelry and cutlery products. Our excellent buyer-supplier relationship will ensure
that we will be able to place our company’s products in the desired market
segment. This will help us to meet our market needs in an efficient manner.
Initially we will start our business in the major local markets of India. The biggest
handicraft markets in India are namely Bangalore, Kolkata, Mumbai and Delhi. We
will start by contacting reliable suppliers located in these particular markets. Apart
from this we will also participate in various handicrafts exhibition that are held in
these markets so as to make our presence felt in the industry.
Our company is focusing on producing antiques, jewelry and cutlery products that
are being made by processing quality horn and bone.
Target Market:-
We are focusing on the upper and upper middle class of the society located in the
major cities of India like Bangalore, Kolkata, Mumbai, Delhi and NCR and its allied
regions.
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Market Needs:-
The demand for antiques is always in trend in the market irrespective of the market
conditions. The traditional antiques are evolving by time and are again in trend
from the last two decades especially after the upper and upper middle class has
started to grow a conscious and opt for handicraft product made by local artisans
within the country. The growing demand for innovative antiques at greater pace
has drawn attraction towards this industry.

Competitive Edge:-
The main competitive edge that we have is that we are planning to focus on buying
quality raw materials and finished goods at cheaper rates from different houses
located near our manufacturing facility i.e. from allied areas of Bangalore. This will
most definitely help us in cutting our costs incurred in various aspects like
transportation costs, carrying cost etc. and we will be able to purchase at much
cheaper rates than our competitors. This decrease in the price of raw materials will
ultimately help in bringing down the price of our product substantially.

6. Financial Plan:
The company’s promoters are going to manage the day to day operations of the
enterprise and coordinate the activities to achieve the desired objectives of the
enterprise. Their effectiveness and efficiency helps the enterprise to ensure
venture’s success.
It is estimated that Rs. 10, 00,000 is required to be invested in fixed assets; while
Rs. 6, 00,000 as working capital requirement. The expected start-up cost will be Rs.
2, 00,000 (includes legal cost, advertises, miscellaneous, etc.). There will be Rs. 1,
00,000 reserved for future contingencies.
The Company FA will be financed through loan from bank & working capital by
partner’s contribution of Rs.1, 50,000 per member.