Niqash Handicrafts

Background:

In more recent history, crafts in Pakistan were influenced by the arrival of Islam. They accentuate designs and styles dating from 5000 B.C. There are about eighty different kinds of handicrafts produced in Pakistan, the main ones are: leather goods, brass, copperware and table ware, onyx and marble products, wood crafts, textile and block printing fabrics, embroideries, glass beads, traditional and contemporary jewelry, camel and snake skin products, pottery, hand knotted carpets and rugs, shell and bone products, costume dolls, etc.

Handicrafts are characterized as products depicting a cultural trait of a specific region/time, produced by hand. It can also be defined as:

“The product made with or without the use of tool, simple implements or implements operated directly by the craftsman, by hand or foot, having traditional or artistic features driven from the geographical cultural peculiarities of craftsman, and generally on a small or cottage industry and not on mass production basis.”

However, with the passage of time the quality of craftsmanship has been diminishing. The value chain has been infringed and the traditional sense of handicrafts has disappeared. This sector is in dire need of development and promotion in order to revive the culture and art of the Pakistani heritage.

Pakistan exported about USD 14m of handicrafts in 2001-2002. An estimate of about USD 20m has been placed for the year 2002-2003. However Pakistan as compared to India lags behinds in the handicrafts industry. In India, the total value of goods produced in the handicrafts sector is about USD 58m. Such figures are hard to calculate for the Pakistani handicrafts.

In India, Export Promotion Council for Handicrafts (EPCH) has been established as a non- profit earning organization. It is an apex body of the Government for promotion of exports of Handicrafts from the country and projects India's image abroad as a reliable supplier of high quality of handicraft goods & services and ensures various measures keeping in view international standards and specifications. The Council has created necessary infrastructure as well as marketing and information facilities, which are availed both by the member exporters and importers. In Pakistan there is no such council or organization that looks after the affairs of the handicrafts development. This is one such example that Pakistan may follow in order to develop and promote its handicrafts.

Company Profile

Niqash Handicrafts (Pvt) Ltd. 1

Company Name: Niqash Handicrafts (Pvt) Ltd.

Business Type: Manufacturers/ Distributor

Main Markets: Pakistan

Number of Employees: 50-80 People

Year Established: May, 2008.

Address: Manufacturing Unit: 23-B, Ferouzpur Road, Lhr.Head Office: Plot #42, Y-Block Market, Defense, Lhr.

Contact (outlet): UAN: 111-222-333FAX: 042-9876543URL: niqash.com

Brief Profile of Entrepreneurs:

Our management consists of six members and we are going to take initiative of starting a new venture of handicrafts. We have distributed the management responsibilities among


the group members. The management responsibilities are assigned to the group members according to the following structure:

Name: Mr. Saqib Shaheen Designation: CEOArea of Interest/Skills: High level top management skills, 8 years experience of related area, Strong analytical and decision making skills

Name: Mr. Zeeshan Mehmood Designation: Production ManagerArea of Interest/Skills: Maintaining the quality, planning the production

Capacity efficiently, Production Processes controlling Ability

Name: Mr. Adnan Riaz Designation: Marketing ManagerArea of Interest/Skills: creating the strong Brand image, marketing and

promotion of products, developing the positioning of products & Company

Name: Ms. Faiza Saleem Dar Designation: Finance ManagerArea of Interest/Skills: Financial Management, Asset management.

Name: Ms. Tayyaba Noreen Designation: H.R ManagerArea of Interest/Skills: general administration and monitoring skills,

accountability, recruitment & forecasting setting compensation

Name: Mr. Salman Designation: Outlet Manager Area of Interest/Skills: To ensure the availability of products, timely delivery, to,

handle the customer complaints, distribution of Products.

Introduction:

Niqash Handicrafts (Pvt) Ltd has started its operations on first week of May, 2008. We deal in all fields of handicrafts especially in Carpet, Rosewood Furniture & Metal work.


Our products have traditional or artistic features driven from the geographical cultural peculiarities of craftsman, and generally on mass production basis.

Mission Statement:

“To provide uniqueness, assortment and quality standards and therefore to establish a mark within and outside the country “

Vision Statement:

“We aim to provide best quality products in reasonable price to achieve maximum customer’s satisfaction”

Company’s Slogan:

“Style with Comfort”

Objectives and Goals:

The major outcome of strategic road-mapping and strategic planning, after gathering all necessary information, is the setting of goals for the organization based on its vision and mission statement.

Goals and objectives of our organization are:

Achieve maximum customer’s satisfaction and customer’s loyalty. Provide uniqueness and style with comfort. Capture big share in handicrafts’ market. Earn revenue.

Economic Analysis:

The economic development of handicrafts is part of Pakistan development program. The objective of this Development Program is

To improve the capacity of the poor people to sustain their livelihoods through increased income and employment opportunities.

To create an enabling policy environment for private sector development. To support institutional structures and skills development, and the marketing and

development of handicrafts enterprises in Pakistan.


An important step in this initiative is the identification of potential markets for Pakistan’s handicrafts’ sector.

Handicrafts addresses several needs of the society: to preserve culture, act as a source of income, upgrade the social status of women and help eliminate child labor by the participation of women in the different productive sectors.

Pakistan exported about USD 14m of handicrafts in 2001-2002. An estimate of about USD 20m has been placed for the year 2002-2003. However Pakistan as compared to India lags behinds in the handicrafts industry. In India, the total value of goods produced in the handicrafts sector is about USD 58m. Such figures are hard to calculate for the Pakistani handicrafts.

There is a good potential in the handicrafts business because the trend of usage of handicrafts for decoration of houses is on rise. Handicrafts have taken the place of the traditional decoration items. Now-a-days people love to decorate their houses in old style and the availability of the handicrafts has increased the trend of usage of using them in decoration.

Section I

Marketing Plan

Product Description:

The nature of our business is to manufacturing of handicrafts items such as wood item, home textile, hand painting, Banner-making, Canvas work, Embroidery, Knitting, Macramé, Ribbon embroidery, Rug making, Sewing, Shoemaking, Spinning, String art, Tatting, Weaving, shell adornment and carpet weaving, metal working, jewelry, pottery etc. and to open up an outlet to sell our products. Currently we are manufacturing only Rosewood furniture and metal work items. All others items are being purchased from different suppliers. But we are aiming to manufacture all the handicrafts items in future.The proposed product range includes only Rosewood furniture and metal work items manufactured locally dominates the sales in the local markets as well as very large quantities are being exported. As regards the imported handicrafts, they have a small share in the local market, the reason being availability of cheap handicrafts. The proposed unit is capable of producing quality products, which can be sold in the local as well as foreign markets.

Our Comparative Advantage:


By the grace of ALLAH we are making difference for our valued customers by giving them new innovations, quality satisfaction, in time delivery, competitive prices, fair commitment, honest dealing and absolutely world class products. No quantity restrictions for big or small orders you can order goods as per your convenience. Favorable payment terms as per your convenience and choice. Very competitive prices for each article.100% in time delivery assurance at your given destinations. Our Product’s quality is guaranteed and 100% comparable with other high brand names. Use of high quality imported and self manufactured materials for all articles. Our Products are 100% free of child labor under strict monitoring of ILO teams. For good quality orders more attractive discounted rated for almost all articles.

Competitive Analysis:

The Core of Our Business:

The core of our business is to open an outlet to market and sale of our product. This outlet is a starting point towards the achievement of our organizational goals.

Players/competition:

At the present situation we find the following players at the local level which are operating in the market.

Handicrafts Exim, Lahore Syed Trading corporation, Lahore Alpha business International, Lahore Pakarts (Pvt) Ltd, Karachi Bokhara Carpets, Lahore

At the International level, we face the strangest competitors who capture its local market as well as international markets.

Jawaharlal Phoolchand, India Saleh Al Qallaf Trading, Bahrain Onus Enterprise, Bangladesh Paragon, Bangladesh

Marketing Mix:


Let us analyze the marketing plan with respect to the 4 “P”.

Products:

The products we are currently offering are Rosewood furniture, Metal works and carpets. Our products have the following features:

o Carpets:

We offer middle and top rank carpet and our carpet comply with international quality Standards and their quality and durability are fully guaranteed.

Features:

a) Combine with texture and patternb) Handsome, elegant, soft and durable carpetc) Design is elegant, with smooth surface and gentle touchd) Elaborate embossed floral design has a three - dimensional effect

o Furniture

We offer high quality stylish furniture with a very artistic look.

Features:

a) Elegant and stylish items.b) Durable c) Comfortabled) New designs

o Metal work items

Metal work items are our specialty. These items are:

a) Elegant and well prepared.b) Unique designs

Price:


The price of our products depends on the quality, nature and size of the product. The marketing strategy that we are applying is “MARKET SKIMMING” this is so as we are introducing new features that we have mentioned above. After some time the prices of different items can be fluctuated according to market conditions. Special discount will be offered in case of big order.

The price range of our all products is from Rs. 2000 - Rs. 50000.

Place /Location:

The manufacturing plant is located at 23-B, Ferouzpur Road, Lhr. The product will be placed at our outlet in Lahore. Address is: Shop#42, Y-Block Market, Defense, Lhr.

The reason of opening our outlet in this area is that we are currently focusing on Upper Class of the market.

We are also aiming to open our outlet in all big cities of Pakistan.

Promotion/ Promotional tools:

The promotion strategies would be: Word of mouth strategy. Features of our product. Advertisement through electronic and print media. Commission to the selling agent. Within the city, we offer the free home delivery. For our special customers who purchase bulk quantity, we offer discount of 10%

on sale.

Market Segmentation:

Target Customers:

Our target customers would be Upper class Upper Middle class

Why we are focusing this group?

Now question arises why these are being focused why not any other dress. Then answer of this question is that, these kinds of classes are more conscious about new things. Especially these classes are always searching for something different. So they also have


desire to look prominent among others and willing to purchase things at high cost. So attract such customers easily.That’s why we are focusing these classes.

Value Proposition:

Our products shall satisfy the need of customers to be prominent in company other. We want to position our product in such a way that along with our name style and color should come in the mind of customers. Coming with different and unique styles shall do all this. Not only regular style shall be the focus but also out of routine designs shall be introduced to attract the mind of the customers.

Thus by this way we want to add value of style differentially and innovation.

Development Status:

Types of both designs style shall be kept on changing. So that not only existing customer shall be attract. As for as the conversion of business ideas is concerned in our view it should be revised over time. Especially in manufacturing you need to come with change to compete in market. If any organization fails to do all this then even its tangible form can be converted in intangible form.

So the development status of our product shall be in the following steps

Developing a good range of designs Developing an image in customers mind Developing a good atmosphere of work.

Plan to Keep Customers:

Customer’s loyalty is only because of the reason that weather or not our product satisfies him/ her. If our product is fulfilling the desires of customers then they will automatically becomes loyal. As soon as our product loses slandered of customer’s mind his loyalty level shall go down. To make the customers loyal we are making following point needs to be focused especially

Surveys shall be committed to know desires of customers. Quality shall be provided as best as possible Design should be according to wishes of customers


After doing all this it should be make sure that all measure are being observed and fulfilled.

Main Customers:

Foreign Market:

Foreign market of Pakistan’s handicrafts items has great potential to grow. So Pakistan should make efforts to export its handicrafts products to the major importing countries. USA, France, UK, Canada, Italy & Hong Kong are the major importing countries that should be given special attention. For Pakistan the main export markets exist in European countries and those should be given special attention for this purpose.

Local market:

In Pakistan, handicrafts are rich and diverse. Every city/village has its own handicrafts specialty ranging from fabric, material, embroidery, to jewellery, carving, mirror work and other handicraft items. Each color, style, design and motif carries with it a unique symbol portraying the culture of that particular area and builds on people’s indigenous skills.

Market Demand:

Handicrafts are being sold in almost every city of the country. Small manufacturers have taken the major share of the market in small cities. As most of the population of Karachi prefer attractive colors and outlook. They are quality conscious and ready to pay for quality products. Therefore quality products can be sold in Karachi with good profit margins.

In the province of Punjab and in the city of Lahore, the people prefer handicrafts of fast, unique and light colors. The people of Punjab living in major cities are also quality conscious and are ready to pay good price for high class and quality products. There is a good charm of profit in the province of Punjab as well. In the provinces of NWFP and Balochistan, people like and prefer cheap products, whereas, in the small cities of the country, the people want cheap products with no demand for quality. This is the basic reason that the small manufacturers have occupied these markets and the products of high quality have a low sales volume.

S.W.O.T Analysis:

Based on the interviews and field trips, a preliminary analysis of the development potential of the handicrafts sector is presented below. SWOT analysis of the handicrafts sector show that there exist numerous structural flaws the effect of these flaws needs to be mitigated in order to achieve full potential in this sector.


Strengths:

The analysis reveals that the handicrafts sector possesses very unique strengths, which are categorized below:

Availability of skilled persons, Easy and cheap availability of labor and raw materials, Demand in both the domestic and foreign markets for the handicrafts of Pakistan. Rich craft heritage Willingness among women to work.

Weaknesses:

In order to explore the available strengths in the handicrafts sector to there maximum potential, the following weaknesses must be overcome. As far as the flaws in the development of this sector are concerned, only the major concerns that require immediate attention are mentioned here.

Lack of support from the government in such areas as: credit availability, planning and management, and provision of technical facilities for the development of new products.

Lack of marketing opportunities which give rise to exploitation. As the women entrepreneurs do not have access to the outside market, the middlemen buy products from the craftswomen at lower prices and sell them at high profits in the domestic and foreign markets.

Shyness and lack of confidence of women to market their products. Lack of awareness on the quality and raw material standards the products face a

high rejection rate. There is hardly any government organization to monitor the inputs and provide guidance in order to improve the quality as well as accessibility to markets.

Lack of designing and product development facilities. Emphasis is still placed on old techniques without aligning the product designs and colors to the latest trends.

Lack of training in skill development. Untapped export markets there is a huge potential for exporting handicrafts but

the craftswomen are not exposed to the procedures and markets to export their products. The main exports are carpets, marble and furniture in the crafts sector. The trade is to mainly high-income countries i.e America and Europe. There is potential to export in other markets as well as introduce other crafts for exports.

No networking/linkages among organizations in the country to synergize efforts on a provincial/national level.

Lack of affiliation with oversees handicrafts organizations and trade related associations.

Structural weaknesses, such as, lack of conformity to product specifications and delivery schedules, and no mass production as craftsmen are scattered. Lack of infrastructure.


Development of the handicrafts is not a sustainable business and most of the vocational training institutes are lacking in craftsmanship.

Data is not recorded properly on the types and numbers of handicrafts being sold annually.

Some crafts are taken as part time jobs, which account for lack of proper concentration, which then impedes idea generation.

Opportunities:

At present, the sector is not being properly managed in these areas because of the following reasons. But there are opportunities to promote this sector and create employment for people in rural areas.

Potential domestic and export markets Potential for Product diversification Linkages with large industry to enhance the efficiencies of the crafts sector Training to upgrade skills and pass on traits to the coming generations Potential women entrepreneurship development especially in rural areas.

Threats

The following factors demand attention for the growth of the handicrafts sector:

Competition is on the rise from the global markets especially in the fields of price, quality and product designing. Therefore, the handicrafts market of Pakistan is losing in the international markets.

Rising costs of utilities and raw materials are also infringing on the growth as production costs are high making products not competitive in the domestic and foreign markets.

Traditional use disappearing with the lack of creativity and innovations there is unmatched customer demand and satisfaction.

Unethical business practices Skills are not being transferred from skilled craftsmen to the new generation

resulting in a gap of traditional skills.


Section II

Production Plan

Manufacturing of Rosewood Furniture:

Raw Material for furniture:

The raw material required to make furniture are:

Cane and Bamboo Clay/Terracotta/Ceramics Coir Glass Ivory Leather Metal Cloth Woods Wood Craft

The Manufacturing Process of furniture:

The furniture either carries the traditional miniature motifs or is embossed. The raw materials are locally available. The wood used is babool (acacia arabica), shisham (rosewood) or aam (mango), which is brought cut to size in the market. Usually, the work involves simple construction----turning, cutting and joining. The embossed look is provided to the product by using pointed tools that create a beautiful pattern on the surface. A varnished coat follows it to give a smooth finish to the product.

The main furniture items, which are produced, include detachable chairs, stools, chowkis, low tables, sofas, large tables, and a variety of small boxes and containers.

Step 1: Optimize the Lumber

We use special computer programs to optimize the layout for each project. This provides the maximum yield of material, which lowers the purchase price of furniture.


Step 2: Cut the Parts

The individual parts required are cut from the wood using a panel saw. Each part is carefully labeled.

Step 3: Machine the Parts

We properly machine each part. Different parts require different machine processes such as dado, rabbet, line bore, etc. We use only the highest standard for machining the furniture.

Step 4: Perform Flat-line Sanding

The interior surfaces of the furniture are sanded before the parts are assembled.

Step 5: Assemble the Furniture

The components of the furniture are assembled. The face frame and mouldings are applied.

Step 6: Perform Finish Sanding

The final finish sanding of the furniture occurs. Other components such as shelves and doors must also be finish sanded.

Step 7: Check Furniture and Components for Quality.

The integrity of the furniture is verified and the finish sanding is also carefully inspected.

Step 8: Apply the Finish

Unless the customer requested an unfinished piece of furniture, the finishing process begins. The furniture and its components are hand-stained and three coats of clear catalyzed lacquer topcoat are applied.

Step 9: Perform the Final Assembly

Doors, drawers, pullouts, hardware and other accessories are installed. The piece of furniture is fully assembled at the manufacturing facility before being delivered to the customer.


Step 10: Rub out the Finished Piece of Furniture

The finish is rubbed out to bring the piece to its final “showcase” condition.

Step 11: Wrap and Deliver the Furniture

The furniture is carefully wrapped in preparation for delivery. Careful wrapping helps furniture arrive at your door in the same condition as when it received the Wood wise seal of approval.

Manufacturing of Metal Work items:

Metalworking is a trade, art, hobby and industry that relates to metallurgy - a science, jewelery making - an art and craft, as a trade and an industry with ancient roots spanning all cultures and civilizations.

Manufacturing Process of Metal Work Items:

Step 1: Milling

Milling is the complex shaping of metal (or possibly other materials) parts, by removing unneeded material to form the final shape. It is generally done on a milling machine

Step 2: Turning

A lathe is a machine tool which spins a block of material so that when abrasive, cutting, or deformation tools are applied to the workpiece, it can be shaped to produce an object which has rotational symmetry about an axis of rotation, called Solids of Revolution. Examples of objects that can be produced on a lathe include candlestick holders, table legs, bowls, baseball bats, crankshafts or camshafts.

Step 3: Cutting

There are many technologies available to cut metal. Sawing, chisel, shearing, burning by Laser, gas jet and plasma, erosion by water jet or electric discharge, and hand cutting. Cutting fluid or coolant are introduced by a spray across the face of the tool and piece to decrease the temperature caused by friction and to prevent tool point weld


Step 4: Drilling & Threading

Drilling is the process of using a drill bit in a drill to produce holes. Taps and dies are tools commonly used for the cutting of screw threads in metal parts. A tap is used to cut a female thread on the inside surface of a predrilled hole, while a die cuts a male thread on a preformed cylindrical rod.

Step 5: Grinding

Grinding uses an abrasive process to remove material from the workpiece. A grinding machine is a machine tool used for producing very fine finishes or making very light cuts, using an abrasive wheel as the cutting device

Step 6: Welding

Welding is a fabrication process that joins materials, usually metals or thermoplastics, by causing coalescence. This is often done by melting the workpieces and adding a filler material to form a pool of molten material that cools to become a strong joint, but sometimes pressure is used in conjunction with heat, or by itself, to produce the weld. This is in contrast with soldering and brazing, which involve melting a lower-melting-point material between the workpieces to form a bond between them

Step 7: Hand fabrication

A wide variety of hand and small power tools are often used for metalworking, and an experienced machinist can fabricate almost any part using only hand tools, although it may require more time than with advanced machinery. Many types of hand tools are used, including cutting and scraping tools to remove metal, impact tools to reshape metal, and a wide variety of tools for marking, positioning, or otherwise assisting the fabrication process.


Our Products:

We are planning our products of different types by seeing customer’s convenience. Our products are highly affordable and comfortable. Some of these are:

We have tried to give them a new shape to give a stylish look.

We are producing all these items on new advanced machinery to get the best output.


Metal work items are our specialty.

We have very competent suppliers of carpets who

provide us with best out of carpet industry.

Quality Control:

All products purchased from outside suppliers are spot checked before placing them in the outlet. Quality control manager is responsible for all this process. He is also responsible for keeping and maintaining high level of quality of the products manufactured by us. This high level of quality is one of our competitive advantages over our competitors. Inspection is done not only at the end of production but also during the different phases of production which results in the form of less wastage of money, efforts and time.

By-Products/ Waste:

Leftover scraps of metal sheet in Metal work are sold to metal recycling centers.

Fixed Assets/ Capital:

Our fixed assets includes the following as


Land Building Machinery & Equipments Office furniture & fixtures

Maintenance & Repair:

The maintenance and repair services will be provided with in the company and also to the customers. The repair, maintenance & rework will be handled by the production manager. Extra maintenance and after sales services provided to the customers will be charged according to the company’s sales policies i.e warranty claims

Source of Equipment:

For metal work items and furniture we will purchase machinery from local market because it is easily available and cheep instead of importing. Our all equipments and machinery will be purchased on cash instead of leasing.

Planed Capacity:

The planed capacity of furniture will be 250-300 units per month and for the metal production planed capacity will be 400-500 units.

Future Capacity:

The current planned capacity for the furniture will be extended up to the 1,000-1,200 and metal production capacity will also be extended up to the 1,800-2,000 units per month. The plant production capacity will also be enhanced according to the demand of products and available resources through gradually the extension projects.

Equipment Purchasing Orientation:

As we have already mentioned above the purchase of equipment will be on cash so, with the passage of time and the market demand more equipment will be purchased accordingly. The equipment purchasing orientation will depend upon the extension of the production capacity.

Factory Location & Layout:


The Construction for infrastructure will be carried on an area of 8 kanal. The rest of the area will be left uncovered. The proposed building will comprises of the following:

Raw Material Store Packing Section Finished Products Store Manufacturing unit Admin Block Washrooms Flooring/driveways/pavements Cafeteria Car Parking Security office

Raw Material Needs:

The Raw material needs will depend upon the consequent market demand of the products. The raw material need for the proposed production capacity will be dependent upon the number of units produce. The raw material needs will also depend on the certain factors such as economic conditions, market trends, inflation rate, availability of material and usage rate.

Raw Material Availability:

According to the feasibility study of the proposed business plan all the raw materials for all product line will be available locally. The required raw material is available and will be purchased from local market on cheaper rates.

Direct Labor:

Direct labor will include craftsman, technicians, skilled worker, supervisors & helpers. The direct labor needs will depend upon the production capacity and market demand for the products.

Labor Availability:

The required labor will be recruited from the local labor market. As the handicraft business involves high level of creativity and innovation, so the highly skilled and creative work force will be employed from inside the country. As the skilled labor is easily available in the local market so, there is no need to hire people from abroad.

Section III


Organizational & Management Plan

Organizational Structure:

Operating labor, supervisory and managerial staff requirements are given in Annexure. The shift labor and supervisory requirement is based on 360 days of the year. The reparation/pre-treatment-line labors (20 labor/shift, daily-wage basis) work in collaboration with the permanent workers of the factory.

The organizational chart consists of:

Form of Ownership:

There would be partnership of five people. We are going to invest some of our own equity and the remaining will be financed by some debt. The 40% of the venture will be consisting of our own equity and remaining 60% will be financed by taking debt.

Management Team:

CEO: Mr. Yaser Arshad would be the CEO of the company. He has been working in Multinational organizations for 10 years. Moreover others partners also have sound managerial experience and can help whenever needed.

Production Manager:

Mr. Zeeshan Mehmood will be responsible for the production of the products. He has a lot of experience in this field and he knows exactly how to carry this process. His payroll will be Rs. 50,000/month.He would be having 2 asst. managers and he would be responsible for controlling the production plan and bringing out the best possible product from the sources, maintaining the quality and planning the production capacity and looking forward to the need of the market.

Quality Control Manager:

Ms. Faiza Saleem Dar will be responsible for the quality maintenance and looking forward not even a single unit of the production goes out without being checked. He has a critical role in establishing firm’s image in the market. His payroll will be Rs. 35,000/month.


Assembly:

Mr. Rashid will look forward towards the production process and making sure that he brings out the product right in time so that the next batch can be made in the same machine. He would be having approx. 10 workers working under his supervision for production and packing, etc. His payroll will be Rs. 20,000/month.

Marketing Manager:

Mr. Adnan Riaz would be given the responsibility of marketing the product in the market. This is one of the most critical posts in the firm as he will be creating brand image and positioning the product. He has been working for different firms as marketing manager so he can perform his job well. His payroll will be Rs. 60,000/month.

Administration Manager:

Ms. Tayyaba Noreen will look forward to administrative responsibilities. She has experience with Handicrafts Exim. His strength is accounting so she can carry this department really well. His payroll will be Rs. 75,000/month.She would be having 3 asst. managers for looking forward to accounting, purchasing and general admin. departments.

Outlet Manager:

Mr. Salman, currently working as the supervisor of our outlet. He is responsible of overall operations of the outlet. He is having 1 cashier and 4 sales representatives under him.


Niqash Handicrafts (Pvt) Ltd.

CEO

Manufacturing Plant

Outlet

Production Manager

Quality Control Manager

Marketing Manager

H.R Manager

Supervisors

Line Workers

Line Wagers

Cashier

Sales representatives

Employee compensation

Warehouse Incharge

Support Staff

Organizational Structure

Finance Manager

Accountant

Cashier

2

Section IV

Financial Plan

Sources of Financing:

The required financing for starting a new venture will be obtained from the following potential sources:

Personal capital and assets Friends and family Banks Financial institutions Investors/ lenders

Budgeting:

Land:

We have taken approximately 10 Kanals land on Ferouzpur Road for manufacturing purpose. This land costs us about Rs. 150 Millions. This land is located on edge of road and easily reachable for employees and transportation of raw material and finished goods is also very easy.

We have purchased a shop in Y-Block Market, Defense to set up our outlet. It costs us about 8 Million.

Building:

The Construction for infrastructure will be carried on an area of 8 kanal. The rest of the area will be left uncovered. The total cost of construction is estimated at Rs.10 million. The proposed building will comprises of the following:

Raw Material Store Packing Section Finished Products Store Manufacturing unit Admin Block Washrooms Flooring/driveways/pavements

Machinery & Equipment:


For metal work items and furniture we have purchased machinery from local market because it is easily available and cheep instead of importing. It costs us approximately Rs. 12 Millions.

Furniture & Fixture (Office and Factory):

Description NumberOffice Tables 50Chairs 150Computer Table 25Sofa Set 15Office Cabinet 10Estimated Value of Furniture Rs. 500,000

Total Cost (Rs.)

Start Up Cost:

Land (Office & Factory) 10 kanals & a shop 158,000,000Building (Factory) 10,000,000 Machinery 12,000,000 vehicles 5,000,000furniture & fixture 500,000 Advertisement All Media 1,000,000preliminary expenses 750,000 cash 1,500,000 TOTAL ASSETS 187,750,000

Project Financing:

Debt (60%) 112,650,000

Equity (40%) 75,100,000


Total Cost (Rs.)

Niqash Handicrafts

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