Business Plan Development for a Flip-Flop Factory in Jharkhand Project

This project presents a comprehensive business plan for establishing a flip-flop factory in Jharkhand, India, under Thriveni Apparels and Textiles Private Limited. The plan encompasses market analysis, including PESTLE, competitor analysis, SWOT analysis, and marketing mix strategies (7 P's). It emphasizes sustainable practices, circular economy principles, and ethical sourcing, including ETI compliance. The project details the factory's requirements, processes, and training needs, alongside financial projections such as sales forecasting, cash flow, and projected P&L. The business plan aims to generate employment, particularly for women, and contribute to the socio-economic development of the region. The report includes a Gantt chart for project management and concludes with recommendations for successful implementation.

Project Management
and Consultancy
Project

EXECUTIVE SUMMARY
This research project mainly emphasis on development of new business. This business
mainly related with the flip-flop factory in Jharkhand. Different number of research methods
have been applied to find out the competencies of Thriveni Apparels and Textiles Limited
(parent company) for footwear sector. Along with this, there are different activities which have
been used by researcher in order completed research project in effective manner. Research aim
and objectives have been developed with the help of research topic. Literature review is another
important and useful section of investigation which have been done by analysing opinion of
authors. In this section, different models used by researcher such as PESTLE analysis, 7p's of
marketing, competitor analysis, SWOT analysis etc. All these are useful models in identification
of market and customers needs about the flip-flop. PESTLE analysis support an organisation in
development of new business in new market or place. This model will assist them to analysis
political, legal, environmental, economical, social and technological situation of Jharkhand.
Marketing mix is another model which have been used by an organisation to find out price,
place, people, physical evidence, promotion and product elements. All these are useful elements
and support a new business in its growth and success within given time period. SWOT analysis
is another useful model used by company in identification of its strength, weakness, threats and
opportunity. As it will support them to overcome their weakness and gain better results within
given time period. Research methodology is another chapter which have been followed by
researcher. With the help of this section, a researcher have to used different methods such as
qualitative and quantitative research, primary and secondary method of data collection, research
philosophy, research design, research approach, research strategy etc. These are useful and
valuable methods which will assist an investigator to collect reliable and accurate amount of
information about the business development. Execution of research method and findings,
Discussion and implications, Conclusion and recommendations have been completed by
developing business idea systematically and timely.

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................1
CHAPTER 1: INTRODUCTION....................................................................................................1
Overview.....................................................................................................................................1
Aim of the Research....................................................................................................................3
Objectives....................................................................................................................................3
Research Questions.....................................................................................................................3
Conceptual Framework...............................................................................................................3
Gantt Chart..................................................................................................................................4
Mission Statement.......................................................................................................................5
Vision Statement.........................................................................................................................5
CHAPTER 2: LITERATURE REVIEW AND MARKET ANALYSIS.........................................5
2.1 Market Analysis....................................................................................................................5
2.2 Literature Review................................................................................................................10
CHAPTER 3: RESEARCH METHODOLOGY...........................................................................12
CHAPTER 4: EXECUTION OF RESEARCH METHODS AND FINDINGS............................18
Identify the requirements of the factory....................................................................................18
Process.......................................................................................................................................19
Training requirement by process...............................................................................................20
ETI.............................................................................................................................................20
Technological Investment.........................................................................................................20
Timeframes...............................................................................................................................21
Metrics for success...................................................................................................................21
Develop the marketing strategy................................................................................................21
7 P's analysis.............................................................................................................................21
Kapferer and SOSTAC framework...........................................................................................22
USP, visual marketing assets....................................................................................................23
Unit spec sheets and pricing analysis........................................................................................24
Analyse adherence to circular economy principles...................................................................24
ETI, green marketing principles................................................................................................24
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Sales forecasting rationale for 12 months.................................................................................25
Pre launch Cash budget for six months.....................................................................................27
Projected P&L ..........................................................................................................................29
Balance Sheet............................................................................................................................29
CHAPTER 5: DISCUSSION AND IMPLICATIONS OF THE ABOVE....................................30
CHAPTER 6 RECOMMENDATION AND CONCLUSION......................................................33
Recommendations.....................................................................................................................33
Conclusion.................................................................................................................................34
REFERENCES..............................................................................................................................36
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CHAPTER 1: INTRODUCTION
Overview
Project Management can be defined as the process which focuses on various aspects for
the successful completion of closure of some work in order to achieve their specific goals and
objectives with practise of initiating, planning, executing, controlling and closing the work
within the specified period of time. The company chosen for the completion of this assignment is
Thriveni Apparels and Textiles Private Limited which is a subsidiary of Thriveni Earth movers
Limited. The following organisation is one of the largest Mine Developer Operator in India. This
organisation currently deals in manufacturing textiles and is now expanding their business lines
to new products which is Flip Flops in the market. The main objective of the company behind
this step is related to create employment opportunity in the state and project affected persons in
mining areas covering around 17 villages of Chepakalan, Dadikalan and Sinduwari Panchayats
of Barkagaon Block in Hazaribag District of Jharkhand. The focus of this organisation is women
as most of the employment opportunities are reserved for women. In the following assignment,
the creation of Business Plan for setting up the new business will be done for Flip Flops which
are being introduced by the company within some period of time. This project also aims at
improving the working and living standards of the people residing there. As with the help of
mines, the creation of job opportunity for them will be done. The another objective is related to
making livelihood for the people residing there because the requirements of this project is related
to more area of lands so that mines could be increased displacing more people from their area
and people from the land. The organisation will also make its focus on filling the market gap and
seeing this as an opportunity to grow business in Jharkhand which have been developed further
in this research project (Boshyk, 2016).
This project aims at providing employment to more than 50,000 people in order to
promote the socio-economic development and inclusive growth in the project affected area. This
assignment will start with making its focus on the providing the introduction of the research
project. In addition to this, the focus on this assignment will also be made on the literature
review where several other topics such as PESTEL, Competitors, Market Segmentation, SWOT
Analysis, Channels to Market and many more concepts will be done. The following business is
also focused on providing the females with the chance to work. With the help of this project, it
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will make its focus on providing maximum job opportunities to the females for their betterment
and growth. The discussion about Research Methodology will also be covered in the following
research project along with the execution of research and its findings. Moreover, it will also be
related to discussion and implications of above those findings whether they approve the starting
of the project or not. Lastly, the project will provide some recommendations and conclusion on
the basis of above findings of the research project.
The proposed opportunity:
• Items of Manufacture: Garments and Footwear.
• Peak Capacity: 1 million of various garments (men’s casual and formal shirts full/half
sleeves) and 3 million pair of Footwear.
• Employment generation: 1000 persons to start with a capacity of maximum of 5000.
• Total Investment: 40 Crore Rupees over a period of 5 years.
• Location: Barkagaon, Hazaribag, Jharkhand.
• Till date 300 women from the project affected area were enlisted for training and
have completed training in garment making and apart from this, 50 women will
be trained in Hawaii footwear making.
• NTPC Ltd., the Owners of the Pakri Barwadih Coal Block, have set up an ITI, where
a garment training centre is established by TSMPL, and training will continue.
• They do take job orders for mining uniforms, safety jackets, overalls, and a few other
uniforms for schools and establishments locally, including job order on shirts
with a marketing agency. All fabric and accessories are being provided by the
buyers.
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• Government has allotted a parcel of Land of 1.425 acres in Mauza Sikri, Barkagaon
under Khata No 136 and Plot No 151, through Jharkhand Industrial Area Development
Authority, for the project.
Aim of the Research
The aim of the research is to develop a Business Plan for a flip-flop factory in
Jharkhand, as part of Thriveni Apparels and Textiles Pvt. Ltd., embedding sustainable
practices.
Objectives
 Market analysis of the business opportunity for flip-flops in India.
 Critically explore sustainable practices in footwear (flip-flops) in India, to embed
principles of circular economy.
 Identify routes to market.
 Identify the lessons learned for success and failures of ‘Thriveni Textiles in
Training’.
 Develop a business plan for a flip-flop factory in Jharkhand, India.
Research Questions
‘Business plan to develop a flip-flop factory in Jharkhand, India, with sustainable
practices and circular economy embedded’.
Conceptual Framework
In the following dissertation, it will cover various aspects which will help in the
successful completion of the project. The dissertation will start from the Executive Summary of
the project in which the major findings, overview and discussion of the dissertation will be done.
After that it will provide an introduction of the dissertation in which the future activities of the
dissertation will be provided. The business will be introduced, its structure as well as the core
interest will also be covered here. In addition to this, it will also make its focus on the clothing
manufacturing initiatives along with the summary introduction to the following business plan
objectives. The Mission Statement, key values and purpose of the project are also an important
part of this dissertation which will be discussed here.
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The second section will make its focus on the literature review and the market analysis in
order to know about the market conditions whether it will be good or not to setup the business
there. Literature Review will provide information on the basis of the opinions of different
authors which have presented their own views and perspectives. Market Analysis will be done
with the help of different models and tools such as PESTLE Analysis, Competitors Analysis,
Market Segmentation, SWOT Analysis, Channels to market, detail on sustainability, ETI
Compliance, detail on circular economy, analysis of upskilling economically inactive females
and NGO Activities, etc. ensuring love 7 Analysis from a wide range of sources in the Literature
Review. Further, the discussion will be made about the research methodology in which the
coverings will be related to method, limited work streams from proposal, ethical consent and
limitations of the research will also be provided. Moreover, the assignment will cover research
methods and findings of the research which will be based on the requirements of the factory,
processes, training requirement by process, ETI, technological investment, time frames, metrics
for success, development of marketing strategy, 7 P's Analysis, Kapferer and SOSTAC
Framework, USP, visual marketing assets, Unit Spec sheets and pricing analysis, analysis of
adherence to circular economy principles, ETI, Green Marketing Principles, sales forecasting
rationale for 12 months along with the explanation of the training to saleable output and the
scaling up of production. Cash Flow Forecast including the set up costs and trading costs, profit
and loss account, projected balance sheet, and the investment capital required will also be
presented in the dissertation. Lastly, the dissertation will put light on the discussion and
implications of above concepts along with conclusions and recommendations of the dissertation
topic.
Gantt Chart
It was developed by Karol Adamiecki, in the mid of 1890s, who was a Polish Engineer.
The following is the tool which is used in project management and development. With the help
of this tool, it will be possible to divide the complete project is smaller parts so that the
completion of the project could be made in time and with accuracy (Burns and Dewhurst, 2016).
This tool provides many benefits and information to the researcher which helps in efficiently
conducting the research such as the description of the various activities, the beginning and end
date of the every activity of the project, the time period to which the activity needs to be
completed, the starting and ending point of the complete project. So with the help of this chart, it
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will be possible to make possible the efficient conduction of the project and prevent it from
overlapping of work and many other issues. The use of Gantt Chart will also be done in order to
make successful completion of this dissertation as well which has been provided as under:
Mission Statement
The Mission Statement of Thriveni Apparels has been provided as under:
 To provide the customers with the maximum satisfaction with the help of their products
and services.
 To make the company able enough to create a place not only in the country but also over
the boundaries of the country as well.
Vision Statement
The Vision of Thriveni Apparels is to make continuous improvement in the market area
of the company along with the increase in number of customers and their satisfaction level
considering the benefit of society and environment as well (Burns, 2016).
CHAPTER 2: LITERATURE REVIEW AND MARKET ANALYSIS
2.1 Market Analysis
PESTLE Analysis
The following tool is used in order to know about the impact of macro environmental
factors on the working of an organisation. The application of this analysis on the working of
Thriveni Apparels:
Political Factors: These are those factors which impacts upon the working of an organisation
due to factors such as political stability or instability, employment laws, labour laws and many
more that could impact upon the working of an organisation. However, the policies of Jharkhand
Government related to electricity, water and gas supply has also impacted negatively on the
growth and development of manufacturing sector industries (Charles, Schmidheiny and Watts,
2017). But with the help of good performance of mining, quarrying and construction sector, it
has covered the low performance of manufacturing sector.
Economical Factors: These are the factors which impacts upon the working of an organisation
due to changes in the interest rates, inflation, deflation, disposable income of customers, bank
rates, GDP of a country and many more impacting upon the working of an organisation. As such
as, increment in overall GDP at factor cost of Jharkhand has increased to 8 percent which reflects
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clearly on the growth and development of the state and also the RBI Policy has also helped in
maintaining price stability and also improving economic growth of the country.
Social Factors: These are the factors which impacts upon the working of an organisation due to
changes in the feelings, beliefs, taste and preferences of people in regards to the products and
services of an organisation (Cramer, 2017). There will be a positive impacts of establishment of
this organisation there because mostly it is covered with public sector organisations such as
banks, so there are chances that people will love to experience something different and Thriveni
Apparels could give them with best experience.
Technological Factors: These are those factors which impacts upon the working of an
organisation due to changes in the ways of producing goods and services, changes in technology
and many more impacting upon the working of an organisation (Damborg, Danson and Halkier,
2017). Because of high literacy level and skilled, educated people, it will be easy for the
organisation to make setup of their business and people will also easily accept changes which
will be beneficial for the company.
Legal Factors: These are those factors which impacts upon the working of an organisation due
to some special rules and regulations that have been made by the government. The government
has also made rules and regulations for organisation in relation to the use of information
technology, labour laws and regime and industrial policy regime for the growth and development
of companies (Diaz-Briquets, 2019).
Environmental Factors: These are those factors which impacts upon the working of an
organisation in both positive and negative ways due to the impact which has been created by
working of organisation on environment such as pollution, environmental degradation, emission
of harmful gases and many more. However, the working of this organisation will not impact on
environment but the contribution made by it towards environment will help in creating brand
awareness and good image in the minds of people, society and government (Goodstadt and
Buchan, 2017).
Competitors
It refers to the firms or individuals standing in front of an organisation working in the
same industry or profession with the motive of earning profit. As Thriveni Apparels in going to
open their business in Jharkhand, so it have to face many competitors as there are many
companies operating in the same industry and without having competitive advantage, it will not
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be possible for the company to survive in the market and earn profit. Competitors are such as
Nike, Puma, Adidas, Reebok, Woodland, Fila, Flite, Sparx and many more which are operating
in this business in order to make market for their products as well. It is important for Thriveni to
focus on the marketing strategies, promotion strategies, customers, taste and preferences of
people and many more concepts in order to get capture market share and attract customers
towards products and services of the company (Healey, 2017).
Market Segmentation
This is the process with the help of which market of potential customers is divided into
different parts, groups and segments based on their different characteristics. So the STP of
Thriveni Apparels is presented as under:
Segmentation: The segmentation of customers is being done keeping in mind the demographic
and behavioural attributes of customers which is on the basis of age. The target customers of
Thriveni Apparels are kids, youngsters and adults as well. Additionally, the behavioural
attributes are also considered in which the focus is on the purpose of customers for which they
are purchasing products. The flip flops of Thriveni will be available for people coming in
between the age of 10-50 years. So by providing different variety of products and to different
classes it will be possible to attract more people (Ibidunni, Peter and Ogbari, 2017).
Targeting: It is the marketing strategy with the help of which large market is break down in
smaller parts and is concentrated on specific group of customers or segments. The target
customers of the company will be people in between the age groups of 10-50.
Positioning: It will be made possible with the help of giving advertisement in newspapers,
comic books, online, television and purchase of the products will be available on physical outlets
and the online delivery of the products will also be provided (Johnson and Garvin, 2017).
SWOT Analysis
This tool is used in order to know about strengths, weaknesses and opportunities and
threats of the company.
Strengths:
 Easy availability of low cost of labour.
 Tac incentives from Government.
 Supportive policies of government in relation to information technology and many more
concepts.
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 Highly educated people living there will help in growth and development of company by
providing new ideas.
Weaknesses:
 Lack of Proper Knowledge of markets.
 Environmental Issues.
 Lack of availability of Footwear components for its manufacturing (Kusumaningrum and
Hidayat, 2016). Unskilled labours will also prove to be weakness for Thriveni.
Opportunities:
 To develop market area and share.
 To make increment and ease in the reach of customers towards products. Product Diversification is also an opportunity for Thriveni.
Threats:
 Threat from domestic and international competitors.
 Formation of cartels.
 Rapid changes in trends will prove to be threat for Thriveni.
Channels to Market
It can be defined as medium which is used in order to transfer the ownership of product
from area of production to end customers (Lee and Shin, 2018). This is very crucial decision
which the organisation needs to take into consideration very carefully so that customers do not
face any issue regarding their access to the products and services of an organisation. So in order
to make access of product to customers, the use of direct and indirect channel of distribution will
be done. In direct channel, it will pass through many mediators such as wholesalers, retailers and
agents. In direct, online orders will be accepted and customers orders will be fulfilled straight
away from the organisation.
Detail on Sustainability in Shoe Industry
The Indian Leather Industry consist of around 42,000 SSI Units which accounts for over
75% of total manufacturers and employing over 2.5 million workers. Out of the 2.5 million
workers, 30% workforce consist of women and is enough to show that many lives are dependent
on the earnings of this sector. Tamil Nadu, the biggest exporter of leather in India have a share of
43% of the total country's share and some states are also having tanning industry which are West
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