INTRODUCTION TO SMALL SCALE INDUSTRY (SSI)
Small scale industries are the one of the most popular form of business organisation in Kerala
as it helps in the growth of the economy. SSI is started with a main motive of generating
employment opportunity and also as a feeder to large business. This form of business is the
most natural, oldest, simplest and the most popular form of business organisation. In Kerala
the proprietor alone provides necessary capital required for business. Small-scale production
units can be opened in any part of the country, even in remote village. Spread of
industrialisation throughout the country can be done easily. Small-Scale Industries can check
imbalances created by the large scale industries.
Thus it has contributed to the overall growth of Gross Domestic Product. It has been
contributing almost 45% of the industrial production and nearly 30% of direct exports.
Some of the merits of having SSI are as follows:
1. They are autonomous and free from day to day government interference in their control
and management.
2. They can adjust their plans and policies according to the demands of the people, industry
and business conditions.
3. Their long term planning is not affected by changes in the government.
4. The owner do not have to comply much of the legal formalities, they can start the
business immediately after they get the license from Kerala Chamber of Commerce and
Industry (KCCI).
INTRODUCTION TO HANDICRAFT (ARTIFACT AND ARTISANS)
The traditional craft or skills that has mastered for centuries are known as B.M. Handicrafts.
Due to the development of tourism in Kerala and as a result people from different parts of the
world were attracted to this small state day by day. They were coming not only to see the
sights but also to gain knowledge about the history tradition of Kerala. A handicraft also tells
the same subject. In B.M. Handicrafts we most probably engaged in the creation of objects
which are related to Kerala’s history and tradition. Here we create models of Kathakali, House
boats, Elephants, Jewel box etc. with highest quality and durability and we are one of the
leading manufacturers and exporters of rosewood handicrafts in Kerala.
The idea of establishing handicraft is mainly to make the crafts available all the time. Kerala is
the country with rich traditional values and beliefs and that indicates the need to preserve
our values and beliefs and that indicates the need to preserve our values and beliefs through
handicrafts. On the other hand, the boosting market for tourism is also one of the important
factors for handicraft market.
(What is B.M stands for)
BUSINESS PLAN
Selection of the product
Due to the increase in number of tourist visiting in Kerala where the tourist loves to buy the
unique artefact made by the craftsmen I chose handicraft. The handicraft would benefit
government through taxes and generate foreign exchanges by sales of craft to tourist. Not
only are these employment opportunities also created by benefiting the local people. The
craft making mainly requires specially designed machineries for different kinds of projects
Selection of location
Thrivuamkulam, Aiswarya Nagar, Ernakulam, Kerala
The main reason for this selection is the availability of land, the most ideal location for
handicraft industry and furthermore it is the very first tourist destination and it also hosts
many tourist festivals annually which attracts an ample number of tourist. The labour is easily
available along with easy accesses to the raw materials. The proprietor already owns the
location or property which indicated that there is no need to purchase or rent out the
location.
Selection of ownership
The selected ownership is sole proprietorship. As the size of the business is small and
adequate finance is available with the owners, single ownership is chosen.
(you must write project in third person language)
HRM STRATEGY
Firms philosophy
To ensure the employees motivational levels are high, in order to have better production of
unique and high quality products improving the status of the company along with reaching
the projected profit at the end of the year.
Strategy for selection
The selection is based on personal interview and skill interview, where is the interviewee is
provided with a situation and asked to solve it with the candidate’s skill and for the craftmen,
they will be judged through their creativity skills in crafting. The notification for interview is
posted in employment newspaper by providing a clear description of the job with the
qualification and traits required for the particular post.
Strategy for training
On the job training is opted. The trainer cum supervisor trains the labours in each aspect of
making the product. Then they are shown different videos on how manufacturing takes place
in different countries using the old and new technologies in the market to provide clear cut
understanding of the product required in the market. The worker will be taken into various
institutions for short term trainings in and around the country.
Strategy for promotion
As the company grows, the employs could be promoted based on their dedication to work.
Strategy for performance appraisal
The employees are totally screened for a period of first 6months, after which incentives will
be provided for the later works in comparisons with the first 6months. This keeps the
employee more innovative and motivated towards the work.
Strategy for employee retention
Motivating an employee with incentives and clearly letting them know their importance in the
development of the firm. The new and unique scheme helps the employees develop a sense
of belongingness towards the firm.
MARKETING PLAN
Market Segmentation
The selected product caters to the consumers in all sections of the society with no bias to age,
religion, community and social groups.
A. Business Organisations: The contemporary national & multi-national business
organisations or corporate promote the unique culture will be as one of their main business
objectives and aim. Our product will appeal this segment as the product is highly in demand
and comes with the design and graphics that can be done according to their customisation.
B. Distributors: This product will be sold to the consumers directly as well as it will be
displayed to some other places apart from Ernakulam hence the product will be displayed
both in Ernakulam and other cities.
Target Market Segmentation
In order to attract the business organisations or corporate, it is highly necessary to conduct
workshops in almost all the organisations or corporate. This will help in obtaining spot
orders which can be taken as a project initially for designing the crafts as per the
organisation or corporate choice and the buyer’s demands.
There is very wide market for handicrafts in Kerala. The outmost important target would be to
enhance the firm in Ernakulam and expand to other places. The international market is also
targeted in the long run.
Competition Analysis
None of these competitors has their own hired craftsman where they can come up with their
own new creative skills.
There is one competitor well known and is stable with good financing but their weakness is
their finishing and their pricing is high with low quality of product.
Product Strategy
The Competitor’s weakness will be used as an advantage and quality crafts with unique style
as well as good finishing ordered by organisations will be made as it’s the quality that heats
the fame.
Pricing Strategy
Based on the cost of production (factor of production), prices will be set. The prices will differ
for tourist and local people. Tourist will be charged more as per the taxes imposed by the
government.
Promotion Strategy
It is one area where the firm can decide its future. Electronic media will be basically used for
advertising. Promotion is done through facebook pages, to which people can connect
themselves better. Even a website will be designed for the firm. Moreover the best promotion
can make the impression in the market, and it can be done by offers on price, products and so
on.
Distribution Strategy
Handicraft shop would be the main area where the major products will be sold. Based on
order or bid , the distribution of crafts to different organisations in the country can also
increase sale.
The handicrafts can also be distributed to other cities of the country through partnership with
other firms on share.
Marketing Strategy
Designs will be created based on the taste of the customers. At present the market is big
enough and in the future it might grow in a high pick due to the increase in number of tourist
visiting the country.
TECHNICAL FEASIBILITY
Type of machinery and equipments required
The handicraft firm does not require sophisticated machineries. It can be operated by using
very few machines like:
1. Curving machine
2. Colouring machine
3. Weaving machine
4. Miscellaneous
Raw materials required
Wood
Different types of colour
Threads
List of Suppliers
Mr. Jeevraj Kumawat
Ernakulam Kerala
Inventory control system
The process of maintaining stock is very minimal as the demand for Handicraft is high. At
times, the stock is kept in order to reduce the cost of production and during prior orders in
bulk.
Quality Control
The finished products will go through various tests by the experts and only the best products
will be brought in the market.
FINANCIAL PLAN
(Monthly basis)
Inputs:
Raw materials(wood):
1. One truck load monthly – 5000/-
2. Local materials – 15,000/-
3. Miscellaneous – 20,000/-
Total- 40,000/- (Forty thousand only)
Machineries:
1. Curving machine - 4000/-
2. Colouring machine - 3,500/-
3. Weaving machine – 5,000/-
Total – 12,500/- (Twelve thousand and five hundred only)
Employee:
1. Manager (one) – 16,000/-
2. Supervisor (one) – 10,000/-
3. Marketing/ Accounts officer (one) – 10,000/-
4. Craftsman ( three) – 20,000/- (3*20000)
5. Weaver ( three) – 15,000/- (3*15000)
6. Helper (two) – 10,000 – (2*10000)
Total – 1,61,000/- (One lakh and fifty one thousand only)
Total input cost per month:
1. Raw materials(wood), Total – 45,000/-
2. Machineries, Total – 12,500/-
3. Employee, Total – 153,000/-
Grand total (input): 45,000+12,500+153,000=210,500/- (Two hundred ten thousand
and five hundred only)
Output sale per month:
1. Masks (all type): 20 numbers per month
Cost per mask – 4,500
Total- 90,000/- (20*4500)
2. Paintings: 30 numbers per month
Cost per painting – 3,500
Total-105,000/- (30*3500)
3. Textile: 6 numbers per month (3 each).
Cost per textile – 9,000
Total-54,000/-(6*9000)
4. Miscellaneous
Total-10,000/-
Grand Total (output): 90,000+105,000+54,000+10,000=259,000/- (Two hundred fifty nine
thousand only)
Profit statement (month):
Input-output (sale) – 210,500-259,000=48,500/- (Forty eight thousand five hundred only)
Conclusion
The following information that have been presented in the project plan of an entrepreneur
who wishes to start her own HANDICRAFT . The background information and the
current market trend that has been researched clearly shows that the market for
handicraft has a good scope.
The finance that has been projected shows that the business venture is a
profitable venture. The report discusses the various aspects of the project and the
profitability of the unit.
HR PLAN
Key Personal Resources:
1. Mrs. Sonia Kalra
Proprietor,
#4 Main Street,
Ernakulam
Kerala
2. Mr. Faizan Ahmed
Manager,
# M.G Road
Kochi
Kerala
3. Mr. Praveen Nair
Supervisor,
Queens Road
Thiruvalla
Kerala
4. Mrs. Parvathy Harikumar
Marketing/Accounts officer,
G.T Road
Alapuzha
Kerala
5. Craftsman
6. Helpers
Job Description
Top level:
Manager
Mr. Faizan Ahmed is the manager with 3 years of experience.
He would take direct control over the overall running of the business.
Middle level:
Supervisor
Mr. Praveen Nair is an expert in the field of crafting with an experience of 15 years.
He would involve in the overall productions, investing new designs and training the
labourers in the process of manufacturing.
Accountant/ Marketing and Sales
Mrs. Parvathy Harikumar, BBM would look after the financial part with paying of
taxes, salary and the finalisation of balance sheets. She would also do marketing,
sales and promotion of the product.
Operational level:
Labour
3 employees will be working in Crafting and 2 employees will be kept as helpers. 3
employees will be kept as weavers. None of the employees need prior experience or
specific education, but should have the basic technique of crafting and should be
committed to the company’s ideology and willingness to co-operate with the
management.
Write conclusions in the last
