mr.akhil project 14.03.13

8/2/2019 Mr.akhil Project 14.03.13

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BUSINESS OVERVIEW

Background

CRAFT PLUS INDIA is a registered body with a network of C.P. Group of Co.Formed in 1996, it has addressed many challenges faced by crafts persons andcraft communities across India post independence. Through Craft Plus India theC.P. group seeks to demonstrate that professional marketing support is asessential means of developing traditional crafts and providing sustainablelivelihood Wide Range of Activities : Getting off the ground in a relatively smallway, in 1991, as a retailer and distributor of Bata footwear, by 1995 the C.Ps

had pioneered the first exclusive Reebok store in the country, at Lajpat Nagar,in New Delhi. In 1997, we introduced the concept of highway stores retailing amultinational product by opening an Adidas outlet on the Delhi-Haryananational highway no.8. The following year we began marketing Lotus shoes, ofEngland. Making rapid strides in retailing, the company has launched severalnew ventures since then, in an international brands of footwear, garments, andcosmetics. Among the MNC brands in which we are dealing are majors likeReebok, Addidas, Rockport, Greg Norman, Benetton, Revelon, Lotus, and lastbut not the least, MTV. Our store on national highway no.2 sells Benettonsgarments, MTVs fashion wear, and Planet Kids brands under one roof. In

addition, we constitute the distributor for the Modi Group, for the internationallyrenowned Revelon range of imported cosmetics. Presently, we are lyingconsiderable emphasis on expanding business in Indian, andparticularly/especially Handloom & Handicrafts of India. For this our store in

Lajpat Nagar, selling a host of attractive and utilitarian handicrafts like sarees,durries, furniture, fabrics, jewellery and various decorative items, has a tie-upwith the Gujarat State Handicrafts Corporations for those who hold our heritagein their hands.

CRAFT PLUS INDIA (CP) is a working in the craft sector for welfare of craft

persons and development of Handicraft and Handloom sector since 2006, basedin Delhi (India). Having more than 2500 craftsmen working under it.

Main activities of CRAFT PLUS INDIA

1.Organize Trade Fairs / Exhibitions all over India /Overseas.2. Providing Platform for marketing to the crafts persons / weavers / artisan

/ entrepreneurs by promoting their crafts and products through Sellingour C.P, showroom, on line showroom and organizing exhibition andtrade fairs in metro cities in India and all over world.

3. A one stop shop for Indias largest verity of handicrafts and handloom. 4. Availability of low cost, traditional and custom made design under one

roof.


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5. The place to find craft person and artisan from all over India and theirmaster creations.

6. More than 2500 craftsmen working under CRAFT PLUS INDIA.7. Helping both crafts person as well as customer in both hands at one place

one gets market, platform with other get verity products at reasonable

price.8. Crafts demonstrating and display by award winning crafts persons from

all over India and their master creation.

Services to Crafts Persons

1. Trade forecasts tendencies.2. Design and product development consultancy3. Stand Design (space design)4. Quality Productivity workshop & training5. Library / Resource Centre6. Marketing Support

Services to Buyers

1. Design consultancy / Design development.2. Production & Quality support.

Export Services

1. Participating of International Trade Fairs and promoting Indian crafts allover the world.

2. Production and Quality management.3. On line Shopping.


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INDUSTRY OVERVIEW

As outlined in the Price Waterhouse Cooper (PWC) leadership study, mostglobal retailers, especially in the current economic environment are looking atIndia & China to grow, to shore up revenue and access to new customers.

Indias robust macro- and micro economic fundamentals, such as robust grossdomestic product (GDP Growth), higher incomes, increasing personalconsumption, favorable demographics and supportive government policies willaccelerate the growth of retail sector. Indian retail sector is perhaps one of themost challenging, dynamic and existing market to operate in. The Indianeconomy expected to touch almost 2 trillion in the next 10 years adding newconsumption of 650 billion in the next decade according to an analysis byTechno Park.

During the last 50 yrs population has grown two and half times, urban grown by

five times.

By 2020 almost 35% of population will live in urban centers which contribute65% of GDP from current 60%.

India will add almost one thirty million people in the consuming age group of 15to 59 years.

The domestic apparels market has been estimated at $33 billion expected toreach $100 billion by 2020.

The domestic textile market is expected to grow 9% by 2020.

GDP: 850 bn GDP: 1920 bn

Private Consumption: 490 bn Private Consumption: 1115 bn

Retail: 270 bn (55%) Retail: 525 bn (45-50%)

Urban: 120 bn (45%) Urban: 280 bn (50-55%)

Organised Retail: 12 bn (5%) Organised Retail: 125 bn (24%)

2010 2020


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Highlights

2010 E 2020 E CAGR%Textile and apparelindustry

3,68,000 Cr 10,32,000 Cr 10.86

Home Textile(Domestic)

17,000 Cr 40,000 Cr 8.93

Handicraft targets for 2011-2012 Rs. 12,428 Cr (on a CAGR of8.94% in last 16 years)


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COMPITORS OF CRAFT PLUS INDIA

Strength

Weakness

Threats

Opportunitie


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1. UNORAGNISED SECTORa. TAILORING OUTLETS - STRENGTH 1) REACHING OUT TO

CUSTOMER WITH LARGER DISPERSION. 2) ENSURECONENVEINCE OF DEMANDING SERVICE. WEAKNESS 1) VERYFRAGMENTED BUSINESS APPROACH.

2. N.G.O.S - STRENGTH 1) PROMOTION COMMUNITY BASEDOPERATIONS. 2) COMPLEMENTORY PRODUCTS MANUFACTURED WITH OTHERFIRM. WEAKNESS. 1) LACK OF RETAILING EXPERTISE AND INABILITY TOMINIMISE COST. 2) PRODUCTS ARE MOSTLY PRODUCED FOR SOVENIER ORARTIFACTS OF COLLECTORS INTEREST.3. ORAGNIZED SECTOR4. RETAILING HOUSES ( SHOPERS STOP, WESTSIDE, RELIANCE, TRENDS,GLOBUS)

i. STRENGTH NATIONAL PRESENCE OF OUTLETS. RETAILING EXPERTISEAND COMPETITIVE PRICING . A GILITY FOR QUICK PRODUCT DEVELOPMENTCYCLE.


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ii. WEAKNESS- DIVERSITY OF PRODUCT IS VERY LESS, RETAILINGBRANDS AND IN HOUSE LABELS HAVE A CONSIDERABLE SHARE OF P[RODUCTMIX. THE TRENDS ARE DDESIGNED ASPER RECENT GARMENTS ANDACCESSORIES TRENDS.5. GARMENT HANDLOOM HOUSE STRONG LEGACY ATTACHED TOPRODUCTS.

i. WEAKNESS BUSINESS IS HEAVILY IS INFLUENCE OF BUREAUCRATIC.6. 4 KHADI GRAMUDYOG, CCI - SUBSIDIZEDMANUFACTURING AND COSTSa. WEAKNESS - APPROACH OF EMPLOYEES. NO SIGNIFICAT PRODUCTEVOLUTION.7. DESIGNER BOUTIQUES - SCOPE OF PRODUCTS CUSTOMIZATION.HIGHEST LEVEL OF CUSTOMER INTIMACY.8. WEAKNESS - NO UNIFORMITY IN PRICE ACROSS PRODUCTS. LIMITEDMODELS OF SKUS MANUFACTURED.

9. CRAFTPLUS INDIA MODELLED GARMENT HOUSES ( FAB INDIA,ANOKHI, BOMBAY SWADESHI STORES)

i. STRENGTHDIFFERNTIABLE PRODUCTS , ESTABLISHED BRAND ANDMARKET. SERVICING HIGH VALUE CUSTOMERSb. WEAKNESS MINIMAL PRODUCT LINES, HANDICRAFTS FROM WESTERNREGIONS, PRICES AT MUCH HIGHER THAN AVERAGE FABINDIA PRICES.


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TARGET CUSTOMERS

DOMESTIC MIDDLE CLASS, UPPER MIDDLE CLASS , RICH CLASSINTERNATIONAL FOREIGNERS- DEPLOMATICS NRIS


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TARGET MARKET

PRICE HANDICRAFTS - STARTS FROM RS.100/- TO 4 LACSPRICE HOME DCOR - STARTS FROM - RS. 295/- TO 30000PRICE APPARELS - STARTS FROM RS. 395/- TO 6500PRICE SAREES - STARTS FROM - RS. 700/- TO 59000

PRICE - HANDLOOM - STARTS FROM - RS. 120/- TO 1500

PROMOTIONS

COMMUNICATION IS COMPLETELY CUSTOMERS DRIVEN , PRINT , ONLINE

PRODUCT

QUALITY AND UNIQUE - HANDLOOM ( COTTON, SILK,PASHMINA , WOOLEN )HANDICRAFTS METAL, WOOD, STONEJEWELLERY SEMIPRECIOUS, IMITATIONSLEATHER JUTTI

WALL HANGINGSPLACE - NEW DELHI


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CUSTOMER CONNECT INITIATIVES

CRAFTPLUS DOES NOT FOLLOW ANY CUSTOMER ACQUISITIONS STRATEGY. ITMAINLY FOCUSES ON CUSTOMER RETENTION. CRAFTPLUS CREATES ITSMARKET THROUGH ITS EXISTING CUSOMERS WHICH IS QUITE EVIDENT FROMTHE FACT THAT ABOUT 85% OF ITS CUSOMERS AREA REPEAT CUSTOMERS.THE UNIQUE SELLING PROPOSITION OF CRAFTPLUS IS THE QUALITY OF THEFABRIC AND THE TRADITIONAL STYLE. WHICH IS ALWAYS IN VOGUE THEYHAVE DESIGNED THE STORES DCOR AND AMBIANCE KEEPING THIS INMIND.THEY CONSTANTLY TRY TO IMPROVE UPON THE QUALITY OF THEPRODUCTS IN ORDER TO RETAIN THEIR CUSTOMERS.

THE COMPANY CONCENTRATES ON CUSTOMER FEEDBACK BY MAINTINAING AVISITORS REGISTER TO RECORD CUSTOMER VIEWS. THE STORE MANAGERSPREPARE A REPORT WHICH IS PERIODICALLY REVIEWED BY THE PRODUCTSELECTION COMMITTEE AT CRAFTPLUS IN ORDRE TO KNOW ABOUT THEBUYING PATTERN AMONG CUNSUMERS.RECENTLY CRM SOFTWARE HAS BEEN IMPLEMENTED IN SOME OF THESTORES WHICH WILL HELP IN MAINTINAING A CENTRALIZED DATABASE. THIS


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WILL HELP CRAFTPLUS IN RETAINING CUSTOMERS BY BUILDING LASTINGRELATIONSHIP AND IMPROVING LOYALITY. THE IMPLEMENTATIONS HOWEVERIS STILL IN ITS NASCENT STAGE BUT IS SOON EXPECTED TO BE SPREADACROSS ALL THE STORES IN THE COUNTRY.CRAFTPLUS INDIA ALSO HAS THE MYSTERY SHOPPER PROGRAM IN ORDER TO

VOGUE THE CUSOMER SATISFACTION LEVEL. MYSTERY SHOPPERS POSING ASNORMAL PERFORM SPECIFIC TASKS SUCH AS PURCHASING A PRODUCTASKING QUESTIONS REGISTERING COMPLAINTS OR BEHAVING IN A CERTAINWAY AND THEN PROVIDE DETAILED REPORTS OR FEEDBACK ON THEIREXPERIENCES TO THE MANAGEMENT. IT SERVES AS AN EFFECTICE TOOL TOIMPORVE THE CUSTOMER EXPERIENCE.


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Financial Parameters:

Performance Indicators

2008-09

2009-10

2010-11

2011-12

Amount (Rs. In Crs.)

Capital 0.25 0.27 0.45 0.85Net Worth (Net Fixed Assets + WorkingCapital) 1.34 1.39 1.92 2.15

Long Term Loans 1.06 1.09 1.45 1.65

Net Fixed Assets 0.90 0.89 0.97 1.15

Current Assets 0.84 0.83 1.35 1.65

Current Liabilities 0.40 0.33 0.40 0.50

Working Capital 0.44 0.50 0.95 1.15

Capital Employed 0.53 0.57 0.92 1.35

Return on Net Worth 6.72% 9.35% 14.06% 21.40%Fixed Asset to Networth Ratio 67.16% 64.03% 50.52% 53.49%Return on Capital Employed 16.98% 22.81% 29.35% 34.07%PBIT/Assets 22.22% 17.98% 35.05% 64.35%

PBIT/Capital employed 37.74% 28.07% 36.96% 54.81%


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0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

1 2 3 4

Return on Net Worth

Return on Net Worth

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

80.00%

1 2 3 4

Fixed Asset to Networth Ratio

Fixed Asset to Networth

Ratio


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0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

40.00%

1 2 3 4

Return on Capital Employed

Return on Capital

Employed

PROJECTED DEPRECIATION CHART FOR THEFIRST FIVE YEARS

S.NO PARTICULARS IST 2ND 3RD 4TH 5TH

A. BUILDING

1. COST/WDV 0.00 47.88 93.37 136.82 178.57

Addition 50.40 52.92 55.57 58.35 61.27

- - - - -50.40 100.80 148.94 195.17 239.84

2. DEPRECIATION 2.52 7.43 12.12 16.60 20.92

B. OFFICE EQUIPMENT

1. COST/WDV 0.00 31.08 59.05 84.45 107.76

Addition 33.60 35.28 37.04 38.89 40.83

- - - - -

33.60 66.36 96.09 123.34 148.59

2. DEPRECIATION 2.52 7.31 11.64 15.58 19.23

C. MISC. FIXED ASSETS

1. COST/WDV 0.00 7.98 15.56 22.80 29.75

Addition 8.40 8.82 9.26 9.72 10.21

- - - - -

8.40 16.80 24.82 32.52 39.96


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2. DEPRECIATION 0.42 1.24 2.02 2.77 3.49

TOTAL FIXED ASSETS

------------------

1. WDV 86.94 167.98 244.07 316.08 384.752. DEPRECIATION 5.46 15.98 25.78 34.95 43.64

3. ORIGINAL COST 92.40 189.42 291.29 398.25 510.56

PROJECTED SERVICING OF LOAN FOR THE FIRST FIVE YEARS

S.NO PARTICULARS IST 2ND 3RD 4TH 5th

A. TERM LOAN FROM BANK:-1. LOAN OUTSTANDINGAT THE 0.00 100.03 93.33 97.45 100.66

OPENING OF THE YEAR

2. FRESH DRAWDOWNOF LOAN 105.30 108.77 112.40 116.22 120.23

3. INSTALMENT OF LOAN 5.27 15.44 14.95 15.56 16.08

4. LOAN OUTSTANDINGAT THE 100.03 193.36 190.78 198.11 204.81

CLOSING OF THE YEAR

5. RATE OF INTEREST@% 12.50% 12.50% 12.50% 12.50% 12.50%

6. INTEREST FOR THEYEAR 6.58 19.30 18.69 19.45 20.10


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C P MARKETING PRIVATELIMITED

PROJECTED PROFIT & LOSS ACCOUNT FOR

THE FIRST FIVE YEARSS.NO PARTICULARS IST 2ND 3RD 4TH 5TH

A. INCOME :-

1. Sales 400.00 880.00 1452.00 2129.60 2928.20

- - - - -

TOTAL (A) 400.00 880.00 1452.00 2129.60 2928.20

- - - - - - -

B. EXPENSES :-

--------

1. Purchases 100.00 220.00 363.00 532.40 732.052. Electricity & Fuel 20.00 44.00 72.60 106.48 146.41

3. Rent 192.00 384.00 576.00 768.00 960.00

4. Labour & Wages 25.20 42.00 58.80 75.60 92.40

5.Depreciation 5.46 15.98 25.78 34.95 43.64

- - - - -

Cost of Production 342.66 705.98 1096.18 1517.43 1974.50Add Opening Stock ofFinished Goods 0.00 50.00 110.00 181.50 266.20Less Closing Stock ofFinished Goods 50.00 110.00 181.50 266.20 366.03

- - - - -

Cost of Sale 292.66 645.98 1024.68 1432.73 1874.68

6. Interest on C/C Limit. 7.25 10.15 13.05 14.50 17.40

7. Interest on Term Loan 6.58 19.30 18.69 19.45 20.108. Selling &Administration Exp. 17.13 35.30 54.81 75.87 98.73

9. Depreciation 0.42 1.24 2.02 2.77 3.4910. AdvertisementExpenses 40.00 88.00 145.20 212.96 292.82

- - - - -

TOTAL RS. (B) 364.04 799.97 1258.45 1758.28 2307.22

- - - - -NET PROFIT BEFORETAX(A-B) 35.96 80.03 193.55 371.32 620.99PROVISION FOR INCOMETAX 11.11 24.73 59.81 114.74 191.88


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Net Profit after Tax 24.85 55.30 133.74 256.58 429.11

- - - - - - -

PROJECTED BALANCE SHEET FOR THE FIRST FIVEYEARS OF THE PROJECT

- - - - - - -

IST 2ND 3RD 4TH 5TH

- - - - - - -

LIABILITIES

-----------

1. Capital 59.95 139.51 310.72 495.30 695.91

2. C/C Limit From Bank 50.00 70.00 90.00 100.00 120.00

3. Term Loan from Bank 100.03 193.36 190.78 198.11 204.81

- - - - -

TOTAL RS. (A) 209.98 402.87 591.50 793.41 1020.72

- - - - - -

ASSETS

------

1. Fixed Assets 86.94 167.98 244.07 316.08 384.75

2. Closing Stock 60.15 110.00 181.50 266.20 366.03

3. Security Deposits 48.00 96.00 144.00 192.00 240.003. Current Assets overCurrent Liablities 14.89 28.89 21.93 19.13 29.94

- - - - -

TOTAL RS. (B) 209.98 402.87 591.50 793.41 1020.72

- - - - - -

0.00 0.00 0.00 0.00 0.00

C P MARKETING PRIVATELIMITEDPROJECTED DEBT SERVICE COVERAGE RATIO FOR THE FIRST FIVEYEARS OF THE PROJECT

- - - - - -

S.NO IST 2ND 3RD 4TH 5TH


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0.00

500.00

1000.00

1500.00

2000.00

2500.00

3000.00

3500.00

1 2 3 4 5

1. Sales

1. Sales

- - - - - - -

A. Net Profit after Tax but

before depreciation and

intt. on term loan 42.96 100.57 214.26 393.54 644.58

B.INSTALMENT OF LOAN &INTT. ON 11.85 34.74 33.64 35.01 36.18

TERM LOAN

C.DEBT SERVICECOVERAGE RATIO 3.63 2.89 6.37 11.24 17.82

D. AVERAGE RATIO 8.39


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0.00

50.00

100.00

150.00

200.00

250.00

300.00

350.00

400.00

450.00

500.00

1 2 3 4 5

Net Profit after Tax

Net Profit after Tax

0.00

5.00

10.00

15.00

20.00

1 2 3 4 5

DEBT SERVICE COVERAGE RATIO

DEBT SERVICE COVERAGE

RATIO

mr.akhil project 14.03.13

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