ARUNDINARIA

CRAFTS
(A business plan report on cane and Bamboo products)
HEADQUARTER- Chowkham, Lohit, Arunachal Pradesh, India

Promoters and Promoter's address:

1. RUBUL NATH- GOSSAIGAON, KOKRAJHAR, ASSAM, INDIA.
2. SWAPNEEL SAIKIA- BOKEL TEA ESTATE, LAHOAL, DIBRUGARH,ASSAM, INDIA.
3. JINAMONI PHUKAN- CHOWKIDINGEE, DIBRUGARH, ASSAM, INDIA.
4. SHYAMOLIMA DAS- CHABUA, DIBRUGARH, ASSAM, INDIA.
 Executive Summary

Agriculture and Economic development go hand -in- hand. Bamboo and cane

contribute a lot to the economy and lifestyle of the north-eastern state of

Assam.. Arundinaria Crafts evolves to contribute in this development. Our

vision is to meet the increasing demand of bamboo & cane furniture in our

country. It is a partnership firm established according to The Partnership Act

1932 prevailing with a view to ensure proper utilization of investment. The

initiatives were taken by four promoters, also performing the activities of the

firm and are the decision makers. Our invested capital is Rs. 12 lakhs and the

generated profit will be shared equally among the members. i.e 25% each. The

corporation will operate to produce furniture & crafts by supplying better

products. In production, we will be using raw materials such as cane & bamboo

which we can collect easily from different parts of the state. Our estimated raw

material cost is Rs. 4,50,000.

Arundinaria Crafts focuses on smooth delivery and availability of products to

the customer on time. Existing and potential market of this project is identified

analyzing internal and external environment. We segment our market based on

some features like income, Social class and user behaviour. We basically target
mid-level & higher level income range people. We will introduce our product

through advertisement. We estimate our advertisement cost to be Rs.8,000.

The debt equity ratio of our project is 60:40. Our selected bank is Industrial

Development Bank of India.

Finally the project is expected to fulfil its responsibility towards the society from

different viewpoints such as tree plantation & create source of employment.

Basis of Project Selection

There are good numbers of manufacturers of cane furniture situated around

Kolkata. Expert craftsmen are available here at a lesser cost in comparison with

metro cities. Basic raw material i.e. cane is available mainly in eastern India like

Assam and are easily available in Kolkata market. More over ports are available

in Kolkata which helps export to other countries.

Objectives

 Economic development.

 Environmental sustainability.

 To promote marketing of cane and bamboo based handicrafts.

Product and product range:

The nature of the product is furniture and art pieces for decoration.
Among furniture the concentrated items are
1. Chair
2. Bed
3. Sofa
4. Table
5. Easy chair
6. Mirror
7. Baskets
8. Flower vase

Services

We follow Job based production and for that reason the category of our

product always comes from more than one variety. The purpose is to provide

the people with the unique set of product for their use, and thereby making it

a luxurious product for our customers. Thought furniture is our prime

concentration but we find it very efficient to use the scrap portion to create

different types of showpieces.

Bamboo and Cane treatment Process

Protection of Bamboo and Cane Plantations

The common insect pests of standing cane are defoliators, bamboo stem
beetles, weevil borers, sap suckers and etc.
Dangers from fungal attacks are low in plantations and vigilance is necessary
during normal silvicultural practices in the event that some protection/control
is needed.

Dying process
Green bamboos may contain l00-150% moisture content, depending on the
species, area of growth and felling season. In addition, bamboos possess
hygroscopic materials in the parenchyma and, therefore, take a longer time to
dry compared with wood of similar density. The liability to biological
degradation and to deformation owing to excessive shrinkage (which occurs
even above the fiber saturation point) necessitates quick drying of bamboo.

Kiln Drying

At the present level of drying technology, kiln drying of round bamboos is not
feasible. Even under mild drying conditions, higher temperatures enhance the
incidence of cracking and collapse Split bamboos can, however, be kiln dried.

Air Drying
Air drying takes 6-12 weeks, depending on the initial moisture content and wall
thickness. Collapse may be a major problem in some species, owing to
excessive and non-uniform shrink-age of the Culm. However, problems are
mostly seen in drying of immature culms. It is recommended that only mature
culms are used.

Split bamboos do not pose any problems in air drying and can be dried even in
the open sun. Split bamboos standing upright dry faster than horizontal
stacking. Round bamboos can also be dried standing upright or in stacks, using
bamboo crossers of appropriate diameter.
ADVANTAGE OVER SUBSTITUTES

 Appearance and style

 Lightweight, easy to move around
 Inexpensive and artistic
 Durability
 Sustainability
 To introduce traditional craft skill in the international market.

TRADEMARK

Arundinaria Crafts

An infringement of trademark will result in penalties.

Marketing Plan

The making of cane products is an important and growing cottage industry of

the State which abounds in cane. Extrication of the thorny cane from the thick

jungles is a difficult task. The forest authorities grant leases to the Mahaldars

to extricate cane from forests.

Market & Demand Aspect

There is un-ending demand of the product in domestic and international

market. Different designed furniture and decorative items can be exported to

other countries. There is also good demand of the products in our domestic

market. At present it is also used for interior decoration of house, commercial

places like hotel, office, Restaurants etc. in India and abroad. Different artistic

work of cane products made by Indian artists and craftsmen are sold both in

domestic and International market with high appreciation.

Market segmentation

Three types of people live in our society upper class, middle class and lower

middle class. To recognize customer differences we segment our product in

demographic basis.

Income

Income does not always predict the best customer for a given product. Middle

class people prefer to get product at a lower price.

Behavioral

We divide our segment based on customer benefit &use .

Benefit - We provide our product at low cost which they seek.

Uses - We will focus on the potential users.

SWOT Analysis

Strength:

 Production process is Eco–friendly.

 Availability of raw material.

 Price level is responsible for the target customers.

 Unique design. (Discreet design)

 Waste reduction of resources by recycling method.

 The properties of toughness, strength, flexibility and elasticity of cane.

Weakness:

 High transportation cost.

 Low production level at initial stage of the firm.

Opportunity:

 Less competitors.

 Attractive market by lucrative offers.

 Exporting product generate foreign currency.

Threat:

 Inflation.

 Natural disaster.

 Risk of new product.

Marketing Mix Analysis:

Pricing

Price of agro based products can be determined either by-Manufacturer’s price

quoted . Considering target market price should be kept as minimum as

possible. We set our price in order to penetrate market quickly and deeply to

attract large member of buyers quickly and win a large market share.

Distribution

According to product type i.e. furniture and handicraft and its demand it is

necessary to distribute the product directly to the consumer group, by avoiding

the influence of middleman.

Product forecasts

Product is mainly two categories. Those are:

 Furniture

 Crafts

Best quality product is suitable for targeted customer. Product is available

in both forms. Furniture includes various types of chair, Sofa, boxes, cradles,

cane-stool (murrha), traditional hat (jaapi), office trays, Tiffin baskets, bottle

carriers, bicycle baskets, waste paper baskets etc. Craft includes various

types of handmade show piece which is used for decoration.

Promotion

We use various ways to advertise our furniture and crafts. Those are:

 Regional newspaper and magazines is the direct way to reach the

customer.

 Social media marketing

 Billboard

 Poster

 Banner

 Taking parts in furniture fair & Trade fairs

 Leaflets
 Operational plan
Plant Location

The proposed business location for the cane furniture store will beat
Choukham, Arunachal Border.

This area will include showcasing our latest furniture designs and traditional
decorative pieces. An area will consist of a tea and snack serving area and a
restroom. A small room adjacent to the showcasing area will be the sales
manager’s office area.

The store will be located close to the resort inorder to catch customers going
to or from the visiting place while they are out exploring nearby places or on a
shopping expedition.

The business will operate from Monday through Sunday. Hours of operation
will depend entirely on the area.

Material requirement
The several types of tools and raw materials required for cane furniture are as
follows:

Cane: Cane is the raw material used for weaving the caned furniture.

Hacksaw: Hacksaw is used to cut the cane into a required size.

Nails: Nails are used in nailing the cane to the frame of the soap.

Hammer: Hammers are used in nailing the nails in the sofa frame.

Blow Torch: Blow torch is used to heat up the cane stem so that it can bent
easily.

Flattened Knife: Flattened knife is used to peel out the outer layer of the cane
and also the cane strips.

Hollow Iron Rod: The iron rod helps in giving support to the cane while it is
being hammered.
 Wooden piece: The wooden piece helps in shaping the heated cane into any
required shape.

Measuring tape

Cane and bamboo Tool- Kits

CONTENTS:
Sl. Items Quantity
1. Hacksaw 8
2. Hammer 13

3. Hand drill 4mm drill bits 8

4. Measuring Tape 5
5. Steel rule 12” 4
6. Compass 3
7. Flattened Knife 7
8. Wooden piece 6
9. Blow Torch 8
10. Fine Splitting Knife 7
11. Nose Plier 8” 5
12. Screw driver 6’’ 10
13. Assam Cane Stick -
14. Assam Galla Cane Stick -
15. Sundi Cane -
16. Cane Tar -
17. Polishing materials- Gala, Spirit, Sand paper -

Some raw materials are available locally.

 Inventory management
A small area will be taken on lease from Siang Destination Holidays which will
be used for storing the raw materials and finished goods. The storage unit will
be provided by Siang Destination Holidays and will be supervised by a person
employed by our firm. The rent amount is Rs. 25000 yearly.

Raw materials
Cane, Bamboo of different species, Nuts and bolts, Ball bearings, Glass etc

Finished goods

All the finished goods.

Quality Assurance
The quality of the finished goods will be dependent on the quality of the raw
materials we use. If the raw material is not well furnished and of standard
quality, the demand of the product will not meet our expectations.

Plan

Act Do

Check
Plan- We have planned and established the process related objectives and
determine the processes that will help us to deliver a high quality end product.

Do- Development and testing of processes and also "do" changes in the
processes. Modifications in the goods (if required).

Check- Monitoring of processes, modify the processes, and check whether it

meets the predetermined objectives.

Act- Implement actions that are necessary to achieve improvements in the

processes. (Such as ensuring availability of labourers at the required time to
meet deadlines).

The above quality assurance process will reduce problems and errors in the
final product.

Organisational Plan
Form of ownership
Our business is a partnership business. So all business related matters will be
under concern of all the promoters. This firm is owned& managed by the
partners of the firm. Here the Partnership Act 1932 is followed that is all the
partners have got the same or equal liabilities. The partnership of the firm is
based on a written contract which is duly signed by all the partners of the firm.
So by law the firm is operated & managed by the articles of partnership.
Organisational Chart

Managing
Director

Marketing Administrative Operating

Manager Manager Manager

Trainer &
Supervisor

Labourers

Management Team Background

Name Qualification Address Ph no.

Rubul Nath B.tech Gossaigaon, Dist.- 8011088458
Kokrajhar, Pin-
783360.
Swapneel Saikia BBA Bokel tea estate, 9957002497
lahoal- 786010
Jinamoni Phukan B.COM Chowkidingee, Dist.- 7086336667
Dibrugarh, Pin-
786001.
Shyamolima Das B.COM Chabua, Dist.- 7575915700
 Dibrugarh- 786184

The promoters
Without successful promoters successful business is impossible. Our firm has
four promoters. They are-

Rubul Nath

Swapneel Saikia

Jinamoni Phukan

Shyamolima Das

Manpower Planning
 Management Team – 4 persons
 Sales manager – 2 persons
 Logistics and Delivery – 5 persons
 Inventory supervisor – 2 persons
 Trainer- 2 persons
 Labourers – 12 persons

Legal aspects of labour

 Minimum Wages Act, 2018
 Workmen’s Compensation Act, 1923
 Factories Act, 1948
 Child Labour (Prohibition & Regulation) Act, 1986
 Unorganised Workers’ Social Security Act
 Financial structure for the year 1st year:-
Estimated Cost of the Project 12,00,000
Classification of Funds
A. Sources of Funds
Owner’s Fund 5,00,000
Term Loan 2,55,000
Total 7,55,000

B. Application of Funds
Capital Expenditure 1,75,000
Operating Expenditure 2,70,000
Total 4,45,000

Production Capacity per annum (at 70% capacity

utilization):

Items No. s Average Rate Total

1.Sofa with 123 8500.00 10,45,500
Centre Table
2.Repairing 40 3862.5 1,54,500
Charges
Total Turnover 12,00,000
(incl. tax)
 FINANCIAL ASPECTS
Fixed Capital:

1. Land & Building:

Workspace 1800 sq. mtrs on long term monthly rental basis
Rs.45000.00
2. Plant & Machinery:
Sl. No. Particulars Number Rate Total (Rs. )
a. Hand Saw 6 150.00 900.00
b. Hack Saw 6 110.00 660.00
Frame
c. Blow Lame 3 350.00 1050.00
d. Pliers 6 70.00 420.00
e. Nose Pliers 6 75.00 450.00
f. Hammer 6 50.00 300.00
g. Wooden 7 150.00 1050.00
Commando
h. Big Knife 6 100.00 600.00
i. Small Knife 6 70.00 420.00
j. Measurement 3 70.00 210.00
Tape
k. Cane Cutter 2 250.00 500.00
Total 6560.00
3. Furniture & Fixture:

Office furniture like almirah, table, chair, rack etc. Rs.10,000.00

A. TOTAL NON RECURRING EXPENDITURE/ FIXED CAPITAL:

1. Land & Development Nil

2. Plant & Machinery 65000.00

3. Furniture & Fixture 85000.00

TOTAL 1,50,000

B. Working Capital per month:

1. Monthly expenses for Salary & Wages:

Sl. NO. Particulars Employee Remuneration TOTAL (Rs.)
a. Manager Cum 1 5000.00 5000.00
Salesman
b. Skilled Labour 4 3500.00 14000.00
c. Helper 3 2000.00 6000.00
250000.00
Add: 25000.00
Perquisite @
 10%
TOTAL 275000.00

C. Monthly Other Expenses:

i . Rent 2500.00
ii. Tax & Insurance 1500.00
iii. Electricity & Utility S 2000.00
iv. Office & Administrative Expenses 1200.00
v. Traveling & Transportation 2000.00
vi. Misc. Expenses 1250.00
TOTAL 10450.00

D. Total Working Capital per month:

i. Raw Material Consumption 50000.00
ii. Salary & Wages 30000.00
iii. Other Charges 10000.00
TOTAL 90000.00

E. Total Working Capital for 3 months:

i. Raw Material Consumption 150000.00

ii. Salary & Wages 90000.00
iii. Other Charges 30000.00
TOTAL 270000.00

F. Total Capital Investment:

1. Fixed Capital Rs. 17000.00
2. Working Capital for 3 months 270000.00
TOTAL 287000.00

4.FINANCIAL ANALYSIS:

I. Cost of Production per year:

1. Total Recurring Expenditure Rs. 1000000.00
2. Depreciation on Plant & Machinery @ 15% p.a. Rs. 750.00
3. Depreciation on Furniture @ 10% p.a. Rs. 1000.00
4. Interest on total Capital Investment @ 12% p.a. Rs. 34440.00
TOTAL Rs. 1036190.00

II. Turnover per year:-

Items No. s Average Rate Total

1.Sofa with 123 8500.00 10,45,500
Centre Table
2.Repairing 40 3862.5 1,54,500
Charges
Total Turnover 12,00,000
(incl. tax)

III. Net profit per year:-

Turnover per year – Cost of production per year
= Rs. 1200000- 1036190 = Rs. 163810.00

IV. Profit Ratio on Scale = 163810 x 100 = 13.65%

1200000
V. Rate of Return = 163810 x 100 = 57.077%
287000

ARTICLES OF PARTNERSHIP OF
ARUNDINARIA CRAFTS
Partners of the firm

An Article of Partnership is created and signed by these partners with a view to

establish a partnership firm named Arundinaria Crafts. All concerned parties of
the article are mature and capable to perform the restrictions of the article. All
of them are Indians by birth.

Name Qualification Address Ph no.

Rubul Nath B.tech Gossaigaon, Dist.- 8011088458
Kokrajhar, Pin- 783360.
Swapneel Saikia BBA Bokel tea estate, lahoal- 9957002497
786010
Jinamoni Phukan B.COM Chowkidingee, Dist.- 7086336667
Dibrugarh, Pin- 786001.
Shyamolima Das B.COM Chabua, Dist.- 7575915700
Dibrugarh- 786184
Concerns of the article
Name: Arundinaria Crafts

Address: Chowkham

Type of business: The firm is involved with production, and marketing of

bamboo and care crafts and furniture.

Area of Operation: The firm will operate its activities within the boundary of
India.

Capital: At the starting point the firm will have a capital of Rs.12,000,000. In
case of necessity additional capital can be collected from the partners or by
loan.

Drawing: Every partner can draw maximum Rs.20,000 from the business
every month and subsequent interest he has to pay the rate for which is 20%.

Distribution of Profit: According to the ratio of capital the profit will be

distributed or loss will be covered equally among all partners.

Management and Operation: Four partners will take part in the operation of
the business. The first partner will work as the Managing Director. Three active
partners will get monthly payment of Rs. 6,000 for their responsibility.
Managing Director & General Manager will get Rs. 9,000 accordingly for
his/her duty.

Preparation of Financial Statement: That proper Books of Accounts of the

business shall be maintained and kept at the office and the partners shall have
free access to the Books of Accounts. That an Annual balance sheet for profit
and loss shall be prepared which shall be shared by the parties
proportionately.

Accounting Period: The firm will maintain its accounts in a fiscal year.
Banks: Account of the firm shall be opened in the name of the firm with any
schedule bank or banks of India. This shall be operated under the joint
signature of any two partners of the firm respectively. In banking transaction
the signature of managing partner is mandatory.

Admission of Partnership: For the overall welfare of the firm new partners can
be admitted in the firm but no new partners can be added without the full
written consent of the partners.

Retirement &Death of Partners: Any partner can take retirement from the firm
by providing a three months prior notice. In case of death of any partner his
nominee or successor can become a partner on the consent of other partners.

Repayment Of capital: In the event of the death or retirement of a partner, the

remaining partner will pay the state or retiring partner the full amount of the
original investment. The payment will be made within 1year of the death or
retirement of the partner.

Grievance Procedure: If grievances between partners cannot be resolved,

an arbitrator will be hired that is acceptable to all partners. The decision
reached after arbitration is binding.

Termination: In case of necessity or according to the occurring situation if the

termination of the firm has to done, the termination procedure will be
followed by the Indian Partnership Act 1932.

Change of Condition: With the consent of all parties, rules & terms of the
article can be amended.

Legal Manager: Mrs. Rina Ahmed is a advocate for different organizations. She
is the legal manager of the firm and acts as an administrative consultant of the
firm. She performs all the legal activities that are partnership format, deed
paper, banking transactions & etc.

Banks: For the starting of the business we have taken loan from IDBI.

We the aforesaid parties agreed with the terms and conditions above and
signed consciously with mental soundness mentioned above dated.
Signatures of the witnesses:

(signature of 1st party)

(signature of 2nd party)

(signature of 3rd party)

(signature of 4th party)

CONTENTS