WEAVES INDIA LTD

1
WEAVES INDIA LTD
M.BHOOPALAN R.SARAVANAKUMAR
2
MISSION

• To achieve leadership in towel industry with a
  sense of responsibility towards fulfilling the
  product quality to customer satisfaction at the
  lowest price, keeping in view social, economic
  and environmental concerns of the nation.

3
COMPANY PROFILE
No of labours
30
No of employees
9
3
No of managers
4
WHY U.S?

• Largest towel importing market (imported
  2,20,24,446 towels in 2005).
• Rapid Decline of U.S home textiles
• Per capita consumption of textiles is largest in
  world 23 metres or 37 in value
• 26 growth in Indian textile exports to US in
  2005
• 6 annual growth rate in towel market (2005)
• Demand, supply imbalance by 6-OTEXA (2005)

5
TARGET MARKET

• INSTITUTE MARKET -Hotels, resorts, hospitals,
  restaurants, sport clubs, entertainment places
• HOUSEHOLD MARKET -Department stores, superstores,
  and hypermarket
• PREMIUM MARKET Corporates gifts for special
  events, special awards, New Year souvenirs and
  gift sets.

6
Production process
7
PRODUCT PROFILE

• The product line length is 16 the product mix
  width is 4
• PREMIUM TOWELS, INSTITUTIONAL TOWELS, JACQUARD
  TOWELS, KITCHEN TOWELS
• Towels range from 3030 cms to 75150 cms
  (1212 to 3060)
• Weight of towels vary from 300 GSM TO 500 GSM
• Customized towels vary in weight from 800 GSM to
  1200 GSM

8
PRODUCT PORTFOLIO
9
PRICING
10
PROMOTION

• MAGAZINES-Textiles Outlook International, Textile
  view
• WEBSITES- Indiandata.com, Maditssia.com, Textile
  Intelligence.com, usa-ita.com.
• Cost of advertising varies from 7.95-9.95/week
• Incentives to distributors based on sales
  performance

11
DISTRIBUTION

• Goods are sent on Freight on Board (FOB) basis.
• A transportation cost for 4 tonnes from Madurai
  to Tuticorin is Rs 3108.
• The transportation cost from Tuticorin to US will
  be taken care by the Importers of the country.
• Distributors in 5 states. (NY, California, North
  Carl, Florida, New Jersey)- 27 of US population
  (79,126,659)

12
COMPANY STRATEGY

• COST LEADERSHIP STRATEGY
• MASS MARKET STRATEGY
• CORE COMPETENCY
• PRODUCT INNOVATION - PURPLE COW (RISK
  INNOVATION,RETURNS)
• TOWEL BOUQUETS,SUBLIMATED TOWELS,NANO COTTON
  TOWELS,HYDRO COTTON TOWELS,MONOGRAM TOWELS

13
COMPETITORS

• INTERNAL
• WELLSPUN INDIA
• ABHISHEK IND
• ALOK IND

• EXTERNAL
• PAKISTAN
• TURKEY
• MEXICO

14
COMPETITIVE ADVANTAGE

• EXTERNAL
• Low labour cost (79.04 in India,82 in
  Pakistan,84 in Mexico/month)
• Labor - Huge, skilled workforce has design
  expertise.
• Inputs - Among the worlds largest producers of
  yarns and fabrics
• Import duty reduced from 25 to 5 for textile
  machinery

15
COMPETITIVE ADVANTAGE

• INTERNAL
• Only 15-20 of local Sellur (Madurai) towel
  market involved in export.
• Low labour cost (Rs.2950 in Madurai to Rs.3430 in
  other places)
• Wide range of products(16 products) with design
  expertise
• Strategic location with easy availability of raw
  materials at low cost

16
OPERATIONS PLAN

• Quality raw materials from ISO certified mills
• Indathren dyes from Dystar for dyeing
• Excellent colour with ease of washing
• Through-air-drying Technology
• International Quality Standards (DIN EN,COTTON
  USA)

17
CRITICAL RISK FACTORS

• Management risks Labour, Plant capacity
• Marketing risks Distributors , Product
  positioning
• Operating risks Capacity utilisation,
• Environmental factors
• Financial risks Funding Pattern, Sales mix.
  
• Other risks Government policies

18
WHY FUND US?

• AREA
• CREDITWORTHINESS
• CONTRIBUTION
• EMPLOYMENT
• EXPERIENCE

19
FINANCIAL PLANProject cost

• Total investment 2 crore
• Capital inflow
• Bank loan 1 crore
• Owners capital 1 crore

20
Capital outflow

• Machinery 1 crore
• Raw material 20 lakhs
• Labor employees 10 lakhs
• Installation 5 lakhs
• LandBuildings 20 lakhs
• Other expenses 30 lakhs
• Reserves 15 lakhs

21
1 st year

• Revenue Rs.3,45,60,000
• Sales volume 2,88,000 towels
• Cost of goods sold Rs.1,55,52,000
• Net profit Rs.34,02,496

22
Trend
23
Break Even Point
24
PAYBACK

• LOAN 1,00,00,000
• 1ST YEAR 10,00,000
• 2ND YEAR 15,00,000
• 3RD YEAR 20,00,000
• 4TH YEAR 25,00,000
• 5TH YEAR 30,00,000
• 1,00,00,000
• (Interest included in income statement)

25
CONCLUSION

• REAL TIME BUSINESS PLAN
• WILL TAKE SHAPE AND BE TRIMMED MORE FOR MAXIMUM
  PERFECTION

26
THANK YOU