fuzion crafts international
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Abdur Mukit Bin ROUF
Fuzion Crafts international
Waste to wealth creation.Abdur Mukit Bin Rouf
mukitrouf@gmail.com9706962203
New BakurparaPO& dist-Goalpara
Market Potential
Total Handicraft Market Potential in India is Rs.40,000 crores
• Export Target for Indian Handicrafts for 2012-13 (EPCH): USD 3300 Million ~ INR 16500 Crore (Worldwide market for Indian Handicrafts)
• Total Value of Handicrafts Produced in India last year: INR 26214 Crore.
• Hence domestic Market size ~ INR 10000 Crore • The Market size (opportunity) is ~ 2600 Crore
Rupees.
Distribution of share in East:• 43 % of the handicrafts are in Eastern India and
hence highly skilled labours can be employed very cheap especially in the North-East. Over 50% of craft production are from women.
• A considerable percentage goes from North East Region and generally from unorganized small players or individual artisans.
The Need and Our Solution
• Un-organized handicraft market
• Difficulty in marketing products by individual artisans
• High demand and low supply
• High demand for new designs
• Need for better life for artisans earning as low as INR 30/day
Need
•We are organized
• Products will be marketed by Fuzion Crafts through various channels
• Gap between demand and supply filled by training artisans and reaching out to the customer
• Constantly develop and improvise on new designs. Currently, Fuzion Craft has more than 20 products with more than 70 designs.
• Artisans trained and paid wages of at lease INR 100/day which is double their present earnings.
Our solution
Raw Material- our uniquenessWaste to wealth creation
ImpactOur Artisans
Earning conditions in neighboring villages- they earn Rs.30 to 50 & with us at least Rs.100/day
Training to specially abled and girls rescued from forced domestic labour
More than 450 women from 4 villages want to join us as on Jan’2013
ProductsBlessing Lamps ( premium)Premium Products
Tribal Crafts
Collected crafts
How we sell now
Business Model- Successful companies
Fabindia (turnover Rs 500 crore) has 166 stores across 72 cities
Mother Earth (turnover Rs 80 crore)
Rangsutra (turnover Rs 8 crore)
Started in January 2011
currently has ~2 lac signed users & is growing at ~25% per month
80 countries, has 90,000 page views and has over 3,000 fans on Facebook
11.34% Growth, $204 every day in advertising revenue
$ 300 Million Valuation Above are My Opportunities
Anokhi (turnover Rs 70 crore) has 22 stores in India and stockists in many countries
Etsy Raises Merchant Revenues to $538 Million in 2011 (+71%)
Marketing Channels
9
Marketing Channels
National and International
trade fairs- 4 nos.
Personnel selling in Hotels
and Resorts
Own WebsiteTie-up with websites like Craftsvilla &
Alibaba.com on 15% comision Retail
stores ,Stores in Guwahati
Marketing Strategy
10
Dec-Jan’2012
• Fuzion’s website launch
• Social Media
Nov- feb’2012
• Trade Fairs (B2B sales):
• IITF-Delhi• After
nov’12• Dilli Haat• Surajkund• Hyderabad
-shilparamam
• Mumbai• Personnel
selling in Hotels and Restaurants
Feb-April ’2013
• Retail outlets like Shoppers Stop, Pantaloons, other lifestyle stores
• Store setups in Guwahati
Advertise
Fuzion’s product
s
B2B sales in
National and
International trade
fairs
Largely to capture
local customer
s primarily
non-internet
savvy
Craftsvilla currently has ~2 lac
signed users & is growing at ~25%
per month
Ratio
nale
Stra
tegy
Financials
Investment Rationale• Problems we are solving - Better livelihood, Employment, specially abled, rural upliftment.• Biggest Strength -We are making Money from abundant natural waste/weed.• Women empowerment -even the marginalized and underprivileged can do business.• Artisans Problems -Taking the hassles of marketing for the rural artisans
• SCOPE:-• 43% of the handicrafts are from the east and are mostly unorganized.• There are 128 tribes in the north east and they have different clothing identity and craft.
• FUNDING REQUIRED:Total Funding Requirements : (approx.) 33 Lakhs + 9 lakhs for machinery = 42 lakhsTo be Provided in 3 tranches in First 3 years:Year 1: 25 Lakhs Year 2: 11.5 LakhsYear 3: 5.5 Lakhs
ST Financing Line of Credit Required: 20 Lakhs (approx.)
• Once the business reaches scale (3 centres) it is self sustainable and financing• Attractive Returns after 1-2 Years of Operation
Finally,
•Gives much needed reward to the artisans of N-E India !!
• Work on the last slide.• Put investment rationale for the investor from business perspective.• Make tha pics bigger.• Take out the business model slide and put the flow chart.• Comparative landscape between the bigger companies- data and larger
picture.
• Put investment – type of funding. And usage of funds.
Thanking You
14
TeamAdvisors
& Mr. Ranjit Dey- master craftsman award winner from the President ( 18 yrs experience)
Abdur Mukit Bin ROUF
Fuzion Crafts international
THANKING YOU !!!!There are more interesting parts.
Business Process
Ours is a Scalable business model as we could scale up any time by organizing training for the unorganized village workforce.
We provide training and also raw materials to the women in villages. We run a full time production base using part-time employment of a scattered population. We are a organized production unit procuring raw materials, developing designs, providing
training, controlling quality and marketing products which otherwise is difficult for individual artisans.
Collect wasteWater-hyacinth
Quality check Collect the finished job
Prototype & design
Training to people
Work on job work basis
Sales & MarketingLooks after Trade fairs, B2B,
Website tie ups, etc
6.52% of the Production cost provides Indirect labour
51.55% of the Production cost is paid to the Artisans
18.2 % of the Production Cost goes for indirect employment
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