Entrepreneurship

Management
Business Plan
on
Alcmene Apparels LLP
by:
Bittu Singh
Shubham Singh
DFT-VI
NIFT Gandhinagar
Athleisure : Introduction
 Style of clothing worn as athletic apparel but also
suitable for casual, everyday wear.
 It is a trend in fashion in which clothing designed
for workouts and other athletic activities is worn
in other settings, such as at the workplace, at
school, or at other casual or social occasions.
 Yoga pants, leggings, tights, shorts, tops, bras,
etc. are some athleisure outfits.
 Improvements have been made in functionality
due to innovations in textile and technology to
make such garments more breathable,
lightweight, and waterproof.
 The new garments are performance enhancing.
Market Overview
 Estimated market size of $44 billion in the US alone,
according to research firm NPD Group.
 While the apparel sales, as a whole, increased 2% year-
on-year in 2015, the rise in active wear sales was a
whopping 16%.
 NPD stated : If this category is excluded, the total
clothing sales would have declined 2%.
 Predicted a growth to $83 billion by 2020.
 Alcmene Apparels
 Heracles is the ancient
Greek god widely
attributed to sports and
athletics.
 Alcmene was the mother
of Heracles.
 The name of our
athleisure apparel
manufacturing company
will be Alcmene Apparels
LLP, taking cue from the
ancient Greek mythology.
 SWOT Analysis
Strength
•Futuristic design
•Quality of textile fabric and
production
•Availability of labour
•High class training to workers by
Industrial Engineering specialist
•Short lead time
Opportunities
•Increase in population between the
age group of 18-35 years.
•Financial and logistic support
provided by the state and central
government to entrepreneurs in
garment manufacturing
•Value of labour
•Consumer’s wish of a new design
•Better equipped and facilities to
produce high value added garment
unlike Bangladesh
Weakness
•Lack of experience in foreign
market values
•Higher charge for order quantity
below Minimum Order Quantity
•Lack of skilled human resource
•Lack of proper image and
marketing initiative
Threats
•Competitors have a wide
distribution net with more sales
place.
•Lack of skilled personnel.
•Competitors having more advanced
technology base.
•Import of similar products at lower
price from countries like China and
Bangladesh.
 Mission Goals Target Customers

• To be a market • To become a • Athleisure apparel

leader in athleisure socially, ethically retailers around the
apparel and world
manufacturing. environmentally • Businesses dealing
• To provide responsible apparel in athleisure
fashionable manufacturing apparels on online
athleisure apparel company. platforms such as
at affordable prices. • To live up to the Amazon
• To innovate, and expectations of
become cost customers by
effective and addressing
globally complaints
competitive. • To manufacture
• To gain the world class quality
confidence of athleisure garments
athleisure apparel
retailers around the
world.
 Gender – both males
and females

Age group – people

between age group Market Income – middle
18-35 the primary Segmentati class & higher class
target on

Lifestyle – people who

are more interested in
sports and yoga the
primary customers
Why now?
 India - Rapidly developing economy.
 50% of population in India falls in the age group
of 18-35 years.
 Every investment of $0.15 million made in the
apparel sector generates between 56 and 84
jobs, compared with an average of 6 jobs across
all industrial sectors.
 So, the government is providing a lot of financial
and logistics support to lure entrepreneurs in
garment manufacturing.
Apparel Policies of Jharkhand
Component Grant Assistance

100% grant-in-aid will be provided

towards infrastructure support not
exceeding Rs 4 crores per incubatee
Infrastructure support
and Rs. 12 crores per Incubation
Centre

I00% grant -in-aid towards Capacity

Capacity building through Building Services and Linkages @
support & linkages Rs 31 lacs (maximum) per incubate

Plan B – If we are unable to get an opportunity for setting up a garment

manufacturing facility by the government due to hassles such as bureaucratic red
tape, we can rent customised shades available for apparel manufacturing in places
such as Ahmedabad, Bengaluru etc.
Operation Plan
List of assets required for initial setup:
S. No. Asset Quantity
1 Marker Plotter 1
Machine
2 Automatic Spreader 1
Machine
3 Straight Knife Cutting 4
Machine
4 Overlock Machine 38
5 Flatlock Machine 38
6 Single Needle Lock 4
stitch Machine
7 Steam Boiler 1
8 Iron + Ironing Table 6
9 Needle Detection 1
Machine
10 Thread Sucking Machine 1
11 Finishing Room Table 4
12 Machine for Tape Attach 1
on Carton
13 Table-Chair Set for 15
Desktop
14 Desktop 15
15 Wi-Fi Router 2
16 Fire Extinguisher 10
17 Printer 1
18 Camera 5
19 Cool Water Dispenser 2
20 Racks for Storage 30
21 Sofa-Set 1
22 Ticketing Machine 1
23 Cut Parts Bin 10
Manpower Requirement
S. No. Designation No. of People
1 Managing Director 1
2 Director-Administration 1
3 Director-Finance 1
4 Director-Merchandising 1
5 Manager-Production 1
6 Manager-Quality 1
7 Head-Industrial 1
Engineering
8 Factory Head 1
9 Maintenance 2
Department
10 Administration 2
Department
11 Finance Department 2

12 Human Resource 2
Department
13 Industrial Engineering 2
Department
14 Merchandiser 2

15 Supervisor 6

16 Quality Inspector 3

17 Helper 6

18 Operator 101

19 House-keeping 4

Total 140
Proposed Key Financial Performance
Indicator

 Customer repeat rate

 Revenue growth year-over-year
 Gross margin improvement
 Gross margin = Total sales revenue – Cost of goods
sold
 Payback period – Length of time required to recover
the cost of an investment
Team Goals
S. No. Department Goal

1 Administration To act as a communicating

channel among all the
departments to ensure smooth
day-to-day operations

2 Finance To ensure the financial health of

the organization is strong

3 Merchandising To ensure the buyers are

satisfied and assist the
production department

4 Production To ensure production targets are

met within the stipulated time
frame
5 Quality To ensure quality standards are met
and implementing “right quality first
time” as far as possible

6 Maintenance To ensure minimal loss of

production time due to machine
breakdown and achieve maximum
longevity of machines

7 Human Resource To ensure the right person does the

right job at the right time

8 Industrial Engineering To ensure the best utilization of man

and machine resources available in
the factory
 Production Plan
 4 lines of 20 sewing
machines each
 Intended production
capacity at 100%
efficiency = 1,500~2,000
garments per day
depending on the product
and style
 The athleisure products
we will manufacture are
T-shirts, casual trousers,
yoga pants, tights,
leggings & shorts.
 Financial needs analysis -
E Target departure date –
how much money we must
receive from the transfer of
establish a time frame for
X departure
the business in order to
achieve financial security
and independence
I
T Preliminary valuation -
Target successor- will
reliable idea of how our
reflect our successor
business will contribute to
owner preferences
our financial goals
P
L
A Future cash flow estimate -
evaluate the likelihood of
N success of various exit
paths
Executive Summary
 Product Description:
Athleisure wear: T-shirt, Trousers, Yoga pants,
leggings, tights, shorts, tops, bras.
 Target Customers:
• Athleisure apparel retailers around the world
• Businesses dealing in athleisure apparels on
online platforms such as Amazon
 Competition:
Competitors from China and Bangladesh are
importing similar products at lower prices. They
have a wide distribution net with more sales place
and having more advanced technology.
 Opportunity:
• In India, there is a great opportunity for athleisure
wear as there is about 50% of population in between
age group of 18-25 years.
• Central government and state government provide
financial and logistic support to entrepreneurs in
garment manufacturing.
• As this era is a fast fashion change, therefore there
will be a frequent style change which results in
maximum number of orders.
 Conclusions:
India is a bright spot in global opportunity in the field
of apparel production and retail. So this is the best
time to invest in athleisure wear garment
Business Model Canvas
 References
 Thompson E. What’s up with today’s active wear? 17, July, 2012. Retrieved from :
http://www.therobinreport.com/whats-up-with-todays-active-wear/
 Bailis R. Why millennials love active wear? 16 November, 2016. Retrieved from :
http://multichannelmerchant.com/blog/why-millennials-love-activewear-the-numbers-behind-this-
explosive-growth/
 Bain M. Sportswear is carrying the global apparel industry. 23 January, 2017. Retrieved from :
https://qz.com/889672/sportswear-is-carrying-the-global-apparel-industry/
 Athleisure trend is here to stay. 6 October, 2016. Retrieved from :
https://www.forbes.com/sites/greatspeculations/2016/10/06/the-athleisure-trend-is-here-to-
stay/#6ff5bbea28bd
 Jharkhand Textile, Apparel & Footwear Policy 2016. Retrieved from :
http://momentumjharkhand.com/wp-content/uploads/2016/09/Jharkhand-Textiles-Policy-2016.pdf
 Andhra Pradesh Textile & Apparel Policy 2015-2020. Retrieved from :
http://www.apindustries.gov.in/APIndus/Data/Industry/Textile%20Policy_April_2_2015.pdf
 Gujarat Garment & Apparel Policy 2017. Retrieved from :
https://www.ic.gujarat.gov.in/documents/news/17-10-2017-14-08-23gujarat-garment-apparel-policy-
20172-new-17102017.pdf
 Telangana Textile & Apparel Incentive Scheme 2017. Retrieved from https://www.tgnns.com/telangana-
new-district-news/telangana-textile-apparel-incentive-scheme-2017/2017/08/18/
 Odisha Apparel Policy 2016. Retrieved from : http://investodisha.gov.in/download/APPAREL-
POLICY.pdf
 Incubation opportunity for new entrepreneurs at Gwalior, Madhya Pradesh. Retrieved from :
https://iidcgwalior.com/PDF2018/Incubation%20Opportunity%20for%20New%20Entrepreneurs%20at%
20Gwalior%20M.P.(Advertisement+Concept%20note+Registaration%20From)pdf.pdf
 Pangariya A. Apparel industry model holds the key for India’s job creation requirements. 16 January,
2018. Retrieved from : https://economictimes.indiatimes.com/news/economy/policy/apparel-industry-
model-holds-the-key-for-indias-job-creation-requirements/articleshow/62514682.cms