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1.0 EXECUTIVE SUMMARY

A handicraft, sometimes more precisely expressed as artisanal handicraft, is any of a wide


variety of types of work where useful and decorative objects are made completely by hand or
by using only simple tools. The demand of handicraft is rising day by day because of it‟s
attractiveness. People are seeking more toward handicraft items.

Secondary data were collected form company prospectus, internet, books, blogs, different
publications. There are also some limitations such as privacy or reluctance to disclose
confidential data was another important problem, cost constraints, lack of experiences.

I have always admired entrepreneurship and hoped that someday I will have what it takes to
be one. For the love to the environment and for my personal and professional interests, I
have decided to make a business plan for wood and handicraft items, the name of the
company is „Craftworld‟ with a slogan “Bring Elegance to your Home”. The main objective
of it is to improve the handicraft industry. Craftworld will be established in 2017 as a
partnership business. We will use bamboo, crane, wood such type of things as raw material
to produce the products. Thus our operational activity will be environment friendly

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1.1. INTRODUCTION

Nowadays handicrafts are very popular in Bangladesh. It is also known as craftwork or


simply craft is a type of work where useful and decorative devices are made completely by
hand and using only simple tools. Usually the term is applied to traditional means of making
goods. The individual artisanship of the items is a paramount criterion, such items often have
Cultural and religious significance. In Dhaka city, it is very difficult to find handicrafts
because only fashionable people collect it to decor their home. Most of the people have a
Little idea about it. For this reason, in our handicrafts shop, we are providing different kinds
of handicrafts-Textile products (Wall mat Soft Toys, Make-up bags) Ceramics and
pottery(salad bowls, nut bowls, amphorae, plate and pencil holders), Mosaic products (small
gift items, wall to wall artwork, pictures and furniture, Photo Frame). The most common
materials used for making handicrafts products are Wicker, Jute, Paper, pottery, wood
,textiles, Stone, Glass, and a combination of different metals. Our target consumer is couple
those who both Husband and wife are Job owners, Fashionable women, both middle and high
class people. Young generations are not so interested for handicrafts. We also target young
generations but they are not our main focus. We have selected 3 divisions Dhaka, Sylhet &
Chittagong for our main showroom and different areas of Dhaka such as Dhanmondi,
Gulshan, Banani, Bashundhara and Uttara for sub-showroom to sell handicrafts.

1.2 Business Description


Craft world is a new SMI (Small and Medium Industry) invesing in an existing but
prosperous sector of Bangladesh. In Bangladesh there are lots of people who are looking for
different kinds of Handicraft products from different districts of Bangladesh. But one might
not find all the handicraft products from one place.

On the other we are the only handicraft shop having both online and normal Product selling
system. Besides, we are creating jobs for the urban people who are currently unemployed
because of not having any proper guideline to reach their products to the customer.

We are adding people and operating from major 3 Divisions of Bangladesh. So that we can
collect, make, sell our product easily.

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We know handicraft shops are nothing new but why our company is different from others.
Because we have designed operating our product channels system in such a unique way so
that we can reach and give after sales service of the product within company rules.

1.3 Mission Statement

It is Craft World‟s mission is to convert the creativity into reality in hand. The most
important thing to remember is that every customer must be satisfied with our services.

1.4 Vision of Craftworld

1. To become the first choice of the customers in the chosen areas


2. To build beneficial and lasting relationship with customers
3. To continuous improvement of the products and services.

1.5 Objectives

 Main objective
Main objective of craftworld is to glorify the different occasions of our customers by
providing exclusive and quality products.

a. Commitment to well being


We believe well being is the cornerstone of personal and professional growth. Without
personal and professional well being our mission cannot be achieved.

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b. Commitment to goal attainment


We believe every individual shoid have economic and personal goals. A joint effort will be
put forward to identify and achieve our long term objectives.
c. Commitment to the team objective
We believe in total commitment to the team. The team is a guide for us to follow in our
service to our clients, support of each other, and team growth.
d. Commitment to innovation
We believe our strength lies in our passion to implement new ideas and embrace change. We
realize that innovation involves risk of failure, but we choose to face risk of failure in our
pursuit of success rather than fail passively.
e. Commitment to excellence
Our philosophy is to achieve excellence in all that we do. All efforts of our team are directed
towards achievement of maximum quality
f. Commitment to Value added service
Value added service means doing and giving more than what is expected. We believe each of
us needs to go beyond the call of duty.
g. Commitment to incredible, outstanding, unbelievable customer service
We believe in extending such incredible service to all customers that they feel real sense of
creativity in our establishment.

 Long term objectives


a. To expand business activities in other cities
b. To satisfy the customers who uses our products and services every time.
c. To be socially responsible by utilizing the waste materials for making new and
innovative products.

2.0 BUSINESS OPERATIONS, PRODUCT & SERVICES


2.1 Operational activity
We use Bamboo, Cane, Cloth, Jute, Spin, Clay & many more to produce our product.
We‟ve decided to set our business at Dhaka, Shylet & Chittagong division that are the main
showroom 7 in attractive place of Dhaka city like Dhanmondi, Gulshan, Bonani,
Bashundhara & Gazipur. Because here the place is crowd & here is a huge market for

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handicraft. Our main labor force form northern part of Bangladesh. Because there agriculture
development in not so good. Most of the time there have drought. We have stowage at
Motihar Rajshahi & supply all products from there to each main 7 Sub-showroom. Here the
transportation and all other resources are available. The surrounding environment is quite
good. We can transport our manufactured items to Dhaka easily. We have to keep some
experienced worker in marketing side to convince the customer. We have to give different
look to our showroom for attraction of customer.
All handicrafts businesses are our competitors like “Bangla craft”. We will not conceder
“Arong” & this type of institute isn‟t our competitor.
We will also increase our product line later. There will be adding Jamdani sharee, Nokshi
katha, Non- traditional jewelry item, wood made table & many more.

2.2 Services
We are going to launch a new handicraft company; through our company we will sell almost
every district best handicraft products of Bangladesh. We will sell the handicrafts products
directly to the customers in Bangladesh. We would also sell them through the suppliers where
reaching to the customer directly impossible. For the Foreign and international customers we
will reach them through suppliers too. Some of the Service we are going to provide that
others hardly do.

1. Taking Custom design orders for handicrafts items.

2. We will give three days free product changing opportunity.

3. We will take product orders from online and also going to provide free home delivery.

4. We will give 1 month replacement warranty for any kind of factory fault.

5. Environment-friendly products.

6. Highly professional quality control team.

7. Modern warehouse facilities, with moisture

8. Regular process of product development detector and moisture control system.

9. Well equipped office with modern communication facilities.

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10. Self-sustaining organization, without any external dependency

2.3 Some of the products name and detail

1. Bamboo Fancy Clock. 2. Table Lamp


Code: BFC0121 Code: LMP0131
Price: 2500 BDT Price: 1500 BDT

3.Busket 4. Jwellary Box


Code :BS201 Code: JB0145
Price: 1200 Price: 3000 BDT

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5. Sari(Female) 6. Cloths(Female)
Code: ClF056 Code: ClF056
Price: 4000 BDT Price: 4000 BDT

7. Wallet 8. Cane single Sofa


Code: Wa568 Code: Css650
Price: 500 BDT Price: 4000 BDT

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9. Photo Frame 10. Fruit Basket


Code: Pf950 Code: Fb100
Price :1000 BDT Price:1500 BDT

11.Tea Tre 12. Wall Mat


Code: Tt250 Code: Wm500
Price: 4000 BDT Price: 1400 BDT

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13. Cane Sofa 14. Cane Rocking Chair


Code: Cs 300 Code: Crc 650
Price: 6000 BDT Price :2000 BDT

15. Weigh Bridge 16. Flower Vassal


Code: Wb520 Code: Fv500
Price : 2000 BDT Price: 1000 BDT

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Here are Lot's more Products made of bamboo and other natural elements. There are more
products and other details on the website.
Website address: www.craftworld.com.bd

3.0 INDUSTRY ANALYSIS


3.1 Competitive Analysis
For Bangladesh this is a new impression and hence there is hardly and commercial
competition. That‟s why it holds competitive advantage. The market is relatively new and has
a high growth potential. Since it has no major competitor, it is easier for Craft world to
invest in the industry. The fact that we invested in this new industry is in itself innovative, so
craft world is also trying to come up with more innovate ways to solve customer problems.
And this is reflected in its workplace environment.

3.2 Market Analysis:


A target market is a group of customers towards which a business has decided to aim its
marketing efforts and ultimately its merchandise.

For our handicrafts product we will need to target customer as their need want & demand.
Our craft world target markets are high class and middle class.

Men & women both are wanted to decorate their home. Those types of customer are front
line customer for our product. Through research, we come up with a list of demographics
statistics, characteristics and qualities that represent our ideal target market. Demographics
can be segmented into several markets to help us to target our consumers more accurately.
The geographical location of our products is all over Bangladesh & foreign country.
As we might expect, demographic segmentation variables are amongst the most popular
bases for segmenting customer groups. This is partly because customer wants are closely
linked to variables such as income and age. Also, for practical reasons, there is often much
more data available to help with the demographic segmentation process.

4.0 SALES & MARKETING PLAN


4.1 Identify Target Customer:

We can identify our target market by demographically, like:


 Age: Above 12

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 Location: 1st 3 Divisions Dhaka, Sylet, Chittagong (Main Showroom) & 4 Sub-
showroom In attractive part of Dhaka City.
 Gender: Both male & Female.
 Income level: Middle & higher class people.
 Education level: Minimum knowledge about handicrafts
 Marital or family status: Single, married, Unmarried.
 Occupation: Housewives, corporate worker, Student.
 Ethnic background: Bengali & Foreign people.

Also we can identify our target market psychologically. For this segmentation we will see:
 Lifestyle: Fashionable man & women.
 Belief: Know & understand our culture and traditions
Besides we‟ll identify our customers by their behavior (knowledge, occasion, benefits. User
status) in next in International Business we‟ll segment our customers geographically also.

4.2 Marketing Mix:


The main thing for marketing any type of product is effective advertising. It‟s a part of
marketing mix under product promotion.

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a. Product:

Product is anything that can be offered to a market to satisfy a need or want. Our product is
different types of handicrafts work. That contains a tradition of a country. These are: Jute
made Bag, Moneybag, Tea tray. Flower vessel, Terracota vassel, glass, Show piece, Cane
made chair, fruit basket, Trash can etc.

b. Price: Price is a amount of money which is charged for a product or service. We have
charged reasonable price for our customer, which is easily affordable for our customer. We
have different types of package like terracotta package. We priority any customer needs.
Nobody‟s necessity is tiny to us. By using market penetration we can make a very high profit
within short time. For using low price our sell will be high. Our per unit cost will be also
reduce for unique selling so that we can achieve our success very short time.

c. Place: Place is very important for any business. Success of business depends on strong
distribution channel. Our distribution channel is very strong. In some markets distribution
channel is complex because of existing product. We sell our product through our showrooms
& retail shops. we select some specific place for our shop for selling our products so we‟ll
easily sell our product easily. We select Dhanmondi, Gulshan, Banani, Basundhara and
Uttara for selling our products.

d. Promotion: We promote our products by using different policies. We promote our


products through

 Advertising
 Personal selling

Advertising: We advertise our product via internet (own website), bill board, print media
like noksha page of Prothom- alo. The reason of choice Noksha page is our target consumer
are mainly women‟s. So that people can understand about our product easily.

Personal selling: For personal selling we‟ll appoint some strong qualified salesperson who
represent our company to customers by communicating, selling, servicing, information
gathering relationship building to the customers. Besides sales person customer can buy our

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products from our main showrooms or sub-showroom. We have 3 main showrooms. There
are in Dhaka, Chittagong & Sylet. Inside Dhaka we have some sub-showrooms. That‟ll be
situated at Dhanmondi, Banani, Gulshan & Bashundhara.

4.3 Distribution channel:

All decisions, goals & future plans are taking in our meeting. Then give direction to our
worker where we manufacture our product. Then final goods are shifted to our showroom &
finally sold to our customers to domestic & abroad.

4.4 Selling system:


Our product sell trough showroom, sub-showroom, online & sending abroad through Fedex.
Any one from Bangladesh would be get home delivery with a minimum charge by the quantity.
We‟ll take Debit, Credit & MasterCard transaction. Customer get total product category in our
website with an image of each product & ordered through online also can ordered from Facebook
fan page.

5.0 MANAGEMENT SUMMARY


The organizational plan is the part of the business plan that described the ventures form of
Ownership. This business will start out as a general partnership business, including myself ,
Mr. Sanjay Saha and Mr. Washim Sazzad.

5.1. Human Resource:


We‟ve a CEO who have a very good skills about Handicrafts. He‟s highly educative and
experienced in this area. Under him there are two managers. They are also experienced.
We‟ve a General Manager. We also have accountants, marketing manager and others
administrative manager who have lots of experiences. The each engineer has 10 workers and
technicians. There are also supervisors under each departmental manager.

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5.2 Management Team Background:


The business will be formed as partnership business. The entrepreneurs of the business are
Mr. Biplab Babu, Mr. Sanjay Saha and Mr. Wahim Sazzad with 50%, 30% and 20% share of
investment and profit respectably.

 Mr. Biplab Babu


(BBA in Management Studies at BSMRSTU)

 Mr. Sanjay Saha


(BBA in Human Resource Management at NUB)

 Mr. Washim Sazzad


BBA in Marketing at AIUB

6. PRODUCTION PLAN

6.1 Manufacturing
Our products will be manufactured at the production outlet. There will be a separate portion
behind outlet that will serve as production area. We will produce the products ourselves. A
joint production will be made by all the members for production process. Creative ideas for
innovative products will be explored through brain storming sessions.
Production process includes:
a. Purchase of material and accessories
b. Production process
c. Packing

6.2 Merchandizing
Craftworld has also planned to acquire finished products from household artisans to sell them
on reasonable prices for earning profit both parties. Thus craftworld is not earning for itself
but also serving as platform for those investors who want to commercialize their handmade
products.

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7.0 FINANCIAL PLAN

As we are starting a handicrafts company, we have a huge financial budget plan.. At first we
are intending to buy land for setting our business. We‟ve decided our manufacturing
company will be at Kajla, Motihar Rajshahi. For getting a land and making building structure
of our handicrafts Company whatever the cost is needed we‟ve mentioned above. We‟ll buy
our all accessories and machineries from China. Because they are popular to do it and also
they take less cost from another country because of their employee cost is not as much as
high in other countries. For our plant we will have to pay Machine settlement cost,
Transportation cost, Engineer cost etc. For our product‟s promotion we are taking more
budgets in marketing than advertising. Because we know marketing is the best way to
increase our product sales. We are hoping that we‟ easily reach our break-even point within 7
months. Management cost is including with salary, we also categorize employer‟s salary with
their skills. Here is a huge expense to buy, transportations, maintenance etc.

General Assumption Amount


(Taka)
Receipts :
Sales 50,00000
Disbursements :
Land 1,500000
Structure 970000
Plant 1000000
Setting (Machine & Transportations Cost ) 1,000000
Raw Materials 1,300000
Advertising 15,00000
Marketing 15,00000
Management 40,00,000

7.1 Pro-forma income statement for the first year

Particulars Amount

Sales 160500000
Less: Cost of Goods Sold 20000000

Gross Profit 140500000

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Gross Profit percentage 87.54%

Less: Operating Costs


Sales & Marketing exp. 2000000
Administrative exp. 5000000
Depreciation exp. 14500000
Maintenance exp. 500000
Utilities exp. 100000

Total Operating Cost 22100000

Profit before Interest & Tax 118400000

Less Interest expense 35000000

Profit before Tax 83400000

Less Tax 0

Net Profit (After Tax) 83400000


Net Profit percentage 51.96%

(Note: All those costs and revenues are rough estimates. Actual may vary)

7.2 Pro-forma Cash Flow Statement of first year

Particulars Amount

Cash Received:

Cash Received from Operations:

Cash Sales 60000000


Cash from receivables 100000000

Subtotal Cash from Operations 160000000

Additional Cash Received:

New long term liability 700000000


New investment received 800000000

Subtotal Additional Cash received 1500000000

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Total Cash Received 1660000000

Cash disbursement:

Cash Spending for Operations:

Cash Spending 7600000


Payment of Accounts Payable 20000000

Subtotal Cash spending for operations 27600000

Additional Cash Spent:

Purchase of land 600000000


Purchase of building 200000000
Purchase of machinery 300000000
Purchase of other fixed assets 100000000
Interest payment 35000000

Subtotal Additional Cash Spent 1235000000

Total Cash Spent 1262600000

Net Cash Flow 397400000

(Note: All those costs and revenues are rough estimates. Actual may vary)

7.3 Pro-forma Balance Sheet of first year

Particulars Amount (taka)

Assets:

Current Assets:
Cash 7400000
Bank 390000000
Account Receivables 500000

Total Current Assets 397900000

Fixed Assets (land, building, machinery & Other fixed 1200000000


Assets) 14500000

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Less : Accumulated depreciation

Total Fixed Assets 1185500000

Total Assets 1583400000

Liabilities & Capital:

Current Liabilities 0

Long term liabilities 700000000

Total liabilities 700000000

Paid-up Capital 800000000

Retained Earnings 83400000

Total Capital 883400000

Total Liabilities & Capital 1583400000

(Note: All those costs and revenues are rough estimates. Actual may vary)

7.4 Pro-forma Sources & Application of Fund for the end of first year

Particulars Amount(Tk.) Amount(Tk.)

Sources of funds:

Long term loan 700000000


Personal funds 800000000
Net income from operations 83400000
Add depreciation 14500000

Total funds provided 1597900000

Application of funds:

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Purchase of land 600000000


Purchase of building 200000000
Purchase of machinery 300000000
Purchase of other fixed assets 100000000
Interest payment 35000000

Total funds expended 1235000000

Net increase in working capital 362900000

1597900000

(Note: All those costs and revenues are rough estimates. Actual may vary)

8.0 ANALYSIS AND FINDINGS

8.1 Environmental Analysis (PESTEL)


Several factors in the macro environment of a business are responsible for impacting business
decisions made by management of any organization. The model consists of six different
factors namely Political, Economic, Social, Technological, Environmental and Legal and
seeks to analysis the business environment of an organization.
a. Political Forces
Political forces can highly influence any business. In Bangladesh, there is so much political
instability which directly affects affects economy because purchasing power of people will be
reduced.
b. Economic Forces
Economic forces of any country can affect the availability, production and distribution of
resources among competitive users. Now a day in Bangladesh inflation is prevailing and it
can affect Craftworld to a great extent.
c. Social Forces
Social forces of any country show the values, needs and culture of that country;s people
can affect the organization. In case of Craftworld this factor is highly in favour of
organization because people have great tendency to like handicraft items.
d. Technological forces
Technological factor in this project in a way that consumers can order products online.
No rocket science will be adopted by Craftworld for production process. Basically, idea is

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providing handmade items, so Craftworld eays of utilizing waste material will be


explored.
e. Environmental Forces
Environmental forces includes changes in weather, global climate, natural calamities etc. We
assume that this category would not significantly affect our business in near furure.
f. Legal forces
Legal forces deals with the legal environment in which our firm would be operational.
Legislative change made by the government might impact the organizations behaviour

8.2 SWOT Analysis:


Every business has Internal Strength –Weakness & External Opportunity- Threats. We must
Analysis. Big profits are depending on proper SWOT analysis. SWOT analysis of Our
business are given blew:

a. Strength:

 Diversification: Handicrafts has a various product line. So, it has a large market &
capturing the potential market.
 Cheap labour: Many people interested to do handicrafts work. So, labour are cheap
in this business.
 Low barriers: Actually there have no major barriers to enter handicrafts market.
Only need a trade licence & need capital through our plan.

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 Innovative and Passionate Partner: All the partners are very much energetic,
innovative and has a great passion to the work.
 Strong market research before entry in the market: To make entry in a new
market, strong market research will be conducted

b. Weakness:

 Lack of skilled labour: In this sector have not enough skilled labour. Skilled labour
can add a new era of this business. They can make handicrafts market more attractive.
 Less interest: Today‟s young generation are interested to buy mechanical product.
They think handicrafts only for old generation.
 Lack of promotion: Handicrafts market demand is not so very high. For that reason
many publication company don‟t interested to give advertise of handicrafts.
 Lack of practical experience in mass production of stock: Pure knowledge about
the production is not sufficient.

c. Opportunity

 Rising Demand: Demands of handicrafts are rising day by day in developing


countries. This is a positive side for this business.
 Developing Fashion Industry: Now people are interested on fashion. Fashionable
product has huge demand on today‟s market.
 Tourism Sector: Our country are developing in tourism sector. Tourist have interest
on this type of products.
 No direct competitor: No direct competitor in Bangladesh Market.
 Availability of supplier: Easy availability of supplier providing innovative products.

d. Threats
 Competition: There are many old and renowned competitors in this sector. As a new
it‟s a great problem.
 Quality Products: Quality products are produced by many renowned companies. For
new company it‟s difficult to control the quality.

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 Decreasing purchasing power: Decreasing purchasing power of people due to


political instability in the country.

9.0 RISK MANAGEMENT

Opening a new company in a new industry has its limitations especially because of the
political instability in the country. We also have some different problem to start our business.
The major issues that might be a barrier to our company:
 Political pressure for investing in a new industry
 Price exploitation
 Waste management
 Working conditions and treatment of workers etc.

To solve this kind of problem we will take some step:


 We will do a insurance policy for our industry and also our workers
 For Transportation, we will use our personal van
 To satisfy our workers we provide many different types of advantages. Like bonus,
treatment cost, vacation etc.

10.0 MILESTONES

Milestones are a very important aspect of a business plan. They provide concrete,
achievable, yet lofty goals that the business must concentrate on. By targeting lofty goals,
Craftworld ensures that it is aiming high, therefore it is more likely to achieve more. The
milestones that Craftworld has chosen are very specific to the company and will be
embraced by all employees.

 To enhance business activities all over Bangladesh


 To capture maximum market share
 To provide a wide range of innovative and creative products
 To build strong customer relationship
 Increase product lines.

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11.0 CONCLUSION:
Handicrafts are a valuable part and culture of the Bengali people. Besides regular basis,
people buy handicrafts on special cultural occasion such as pahela Falgun and Pahela
baishakh. Sometimes teenagers and members of the family buy handicrafts as a gift. So, only
for this occasion, we decide to offer many kinds of package for them. Our main motto is
getting profit with customer satisfaction. For that, we try to provide best service for the
customer. We also provide some other facility such as ATM Booth and kids‟ zone. We use
market penetration for pricing our handicrafts. So that, consumer can gets our products with a
low price. Also, our project and marketing strategies are explained in the marketing and
promotion mix. We hope that people will get the best service from us. Because in here, we
are not selling only handicrafts, also we are giving people our hope and love for handicrafts
which come from the core of our heart.

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12.0 REFERENCES
 http://en.wikipedia.org/wiki/Handicraft [Referenced 02.06.2016]
 http://www.crafts.com/business-reports/bangladesh-handicraft-industry/swot-analysis-
handicraft-industry.html [Referenced 08.06.2016]
 http://www.creativehandicrafts.org/ [Referenced 02.06.2016]
 http://www.banglacrafts.org/ [Referenced 14.06.2016]
 www. Eventive.com [Referenced 12.06.2016]

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