INVESTMENT PROPOSAL FOR ASHRAYA GROUP,BANGALORE
1. Introduction
Ashraya Group
Ashraya Self Help Group, based in Bangalore, from last 2 years is producing various natural fibre value added products.
Product categories:
• Home accessories (laundry bins, dust bins, storage boxes, etc.)
• Personal accessories (hand bags, wallets, shopping bags, passport holder, mobile pouch, etc.)
• Office accessories (CD Box, tray, photo frame, coasters, Laptop bags, Office Executive bags)
• Corporate Gifts
These products are made of natural fibres such as banana, river grass, sital patti, screwpine, etc. and combination with leather, Rexene, cotton fabrics, block printed fabrics, etc.
Existing buyers / marketing channels
• Industree Crafts Pvt. Ltd. / Mother Earth, Bangalore
• Volvo, Bangalore
• Department of Education, Govt. of Karnataka, Bangalore
• Thunk, Coimbatore
Strengths and Weaknesses
• Strengths
o Group ownership
o Strong core team with lot of experienced people
o Regular Marketing support from Industree
o Having infrastructure (machines, rented building,
o Having access to exhibitions and other marketing channels, not dependent on one
Weaknesses
o Working capital requirement for expansion
2. Core Member of Ashraya Group
Mr. Rajendra, Leader & Production control
Rajendra K.M. came from an agriculture family from Kalasa village, Chikmagalur District (South Karnataka), he came to Bangalore worked in various fields such as leather, painting on roads, electric works, etc. from an early age. He came to Industree during 2004 to work as a helper in a production unit and he had a zeal to come up in life, he made partnerships with other co-worker during 2005 and started a small production unit with about 20 people. Industree supported / subsidized him initially with building, machines, power, training and design support and encouraged him towards becoming entrepreneur. At 2009, Industree formed a self help group with his 30 workers and made into two groups (Ashraya & Samanvaya Self Help Groups) and encouraged this group to be independent group enterprise and enabled to achieve production from different companies such as Thunk, Volvo and Govt. of Karnataka. Now currently this group independently produces Rs. 2.5 lakhs per month worth in home accessories, corporate gifts, office accessories, personal accessories, school bags with a wide variety of natural fibre, and other fabric materials.
3. Further Expansion
For our further expansion we have planned to work with leather and leatherite materials were we have access to orders from the market. We are specialized with combination of weave , value additions and hi-designed products. This requires a separate setup of building and machinery and skilled crafts people. The new setup for production will be known as Ashraya Enterprises which has a self help group model where the worker will come together and save funds to help themselves through inter-loaning
Objectives :-
1) Establishment and operation of Ashraya Enterprises with Hi-designed and Quality leather products with competitive prices.
2) Combination of leather and Natural fibre products.
3) To build production centre with fair wages and self sustainability
4. New setup projections
The initial assessment report for ASHRAYA ENTERPRISES is as follows.
1) Working shed of 700 sq ft to 1000 sq ft (rented).
2) Basic requirements for the production unit - 25 Members
PROJECT BUDGET Amount
Electricity (light fittings, wire & switches, fans etc...) Rs 20,000
Flat bed sewing machine 1No
Cylinder bed sewing machine 1No
Flat be walk foot sewing machine 1No
Rs 20,000
Rs 60,000
Rs 40,000
Leather skiving machine 1No Rs 45,000
Gumming – tables & tools
(8ft X4ft table with 6 stools -8sets, & hand tools.) Rs 60,000
Stores (to store value added materials & Accessories) Rs1,00,000
Building Deposit Rs 1,00,000
Computer and administration expenses with tax registration Rs 40,000
Working capital Rs 1,50,000
Total Rs 6,35,000
We are looking for Rs.5,00,000 investment.
Production centre --- 25 Members
• Cutting skill
• Gumming & pasting
• Tailoring
• Trimming and finishing
• Quality checking
• Logistics
5. Financial Projections
SUMMARY BUSINESS MODEL
PRODUCTION UNIT QTY QTR - I QTR - II QTR -III QTR - IV YEAR TOTAL
Leather Production (Local order & corp. orders) 1500 4,50,000 4,50,000 4,50,000 4,50,000 18,00,000
Natural fibre & leather (Mother Earth) 1200 3,00,000 3,00,000 3,00,000 3,00,000 12,00,000
Raw material 45% 3,37,500 3,37,500 3,37,500 3,37,500 13,50,000
wages 40% 3,00,000 3,00,000 3,00,000 3,00,000 12,00,000
Over heads 6% 45,000 45,000 45,000 45,000 1,80,000
Production margin 9% 67,500 67,500 67,500 67,500 2,70,000
Auditor fee (given from margin) 1500 1500 1500 1500 6,000
working member bonus (8% of wages given from margin) 24,000 24,000 24,000 24,000 96,000
EMI of loan 30,000 30,000 30,000 30,000 1,20,000
