Yours Free Business Plan

BUSINESS PLAN

NAVANA LINGERIE LTD

Introduction:

In the Garments Industry, Lingerie Project in Bangladesh, from the side of the Investment as a production organization, there lac behind from the other production countries of the world. There are very little in number about the Lingerie item production factory in Bangladesh. Those only in a few numbers which counts by hand. But in the world market, there is a wide demand of it. In the world, the large scale of production country about Lingerie in world is China. Besides, Vietnam, South Africa, Sreelanka and India, there are also extended it gradually. But as there is comparatively the labour cost in Bangladesh is less and as there is present of the relevance chance facility, extension of this Industry in Bangladesh is much hopeful and there could be made investment as a profitable industry. Although it is an exception production base industry. But as the quality standard is increased in Bangladesh and as the labour cost is less, the Buyers are showing their eagerness for the production of Lingerie Garments and they are making of their influence to the large scale of Garments Industry entrepreneurs to the Lingerie Project  for the investment.

Due to the eagerness and demand of the customers and after considering the importance of this industry in the world market, Navana Textile Ltd., as its sister concern  Navana Lingerie, of a new unit of it, there is going to begin and the production activity of it will be started from the month of June 2007.

According to the standard Layout of this project, the number of the sewing line will be in total 25, amongst 10 will be Basic Bra Line and 15 will be Bottom Line. But that may be raised up to the 28 Lines as the classification of the Order Booking and Style. The man power of this project will  total 1080 person including the Management and the Worker. The yearly production target will be 9 million pieces. From it, each year, as the factory CM, there will made of the gross earn about 1.62 million dollars. Which will base on the Navana Lingerie Sales and in the 2^nd and 3^rd year of production, there will be made of the Sales target.

In the 1^st year of the project starting, for the "Navana Ingerie Factory" set-up, there will be started of its production running after made of stock order and the garments of this stock order, in later period as the Fragment pcs, to the different stock order customer, there will be sold in step to step. Which will be made help for take to Breakeven to the income-expense for the 1^st year of the company.

It is mentionable that for the Factory Operation Execute duty, there will be the operation incharge and he will be made report directly from the Factory CEO in any matter related about the factory. The CEO will be considered for any matter about requirement of the Factory Incharge and to the interest for the development of the factory, there will be co-operated.

The Corporate Office will be arranged meeting at least one time in a month with the Factory Management. There will be discussed here about Factory progress, development, Sales, Production, Factory Plan and about Income-Expense and after made judgement-analysis in the said meeting, there will prepared for the next planning.

Sale's : It is seen in generally that any production factory in our country, in the primary stage, there remains the basic concept of the Factory owner/Adviser, to make start of the factory with sub-contract. Their view in it that there is needed less amount of working capital. In side by side, to make trend-up of the worker, it makes help. But this sub-contract concept is not fully applicable for the under garments. Because, there is little number of Lingerie Project in Bangladesh. As there gets for the sub-contract, it is less than the demand of the factory needs and in the new stage, such kind of pressure remain for the sub-contract, for it, the delivery date of the Buyer and to meet Quality, it comes very hard for a new Factory.

Not only this, for the purpose of sub-contract, the Mother Factory which kind of CM gives for per piece of Garments, for it, there is impossible for to maintain production cost for a standard factory.

For the above cause, it remains for the possibility about that factory to a seek project at the beginning. In side by side of it, the delivery date of the customer and there does not make the quality fulfil, it harms the goodwill of the factory at the beginning. For the result, in later period, from the customer, to get the direct order, it may be much hard for that factory. Which may be make influence to the working capital of the factory.

For this, after made of judgement-analysis in all sides, Navana Lingerie will be started of its production with its own stock order.

For to make of this stock order, there will be made about leftover Raw material purchase as the requirement  for all the Raw materials from the different factory of China and Bangladesh. We will be purchase of these raw materials from different factory through the rate of per Kg and for which the approximate value will be 61 thousand of dollars.

It is need for mention here that through the raw material of this price Navana Lingerie  will be made of production near about 2 million Pieces of Basic Bra and Bottom Production. Which will be made of the production support to the factory for about (9-11) months and will be made help for the work skillness of the Factory worker, Quality development and Factory Production Efficiency and to make of the primary level Factory set-up.

In the normal observation, although this stock order will be added with the capital as the Extra Investment. But this stock order, gradually at the end of the production, through  the sale  of the different stock customer, there will be make help to return of the working capital for the year of the factory. We will be made production of the stock order about 50% Bra and 50% Bottom production of which the per pieces stock Sale (FOB) value as following :

Basic Bra = per pc 0.20 x 10,000,00 x 66  =  1,32,00,00 (Tk)

Bottom    = per pc 0.18 x 10,000,00 x 66  = 1,18,80,00   (Tk)

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Total FOB Sale Price                                = 2,50,80,000  (Taka)

For which on year Average in each month Gross Earn will be = 20,90,000 (Taka).

We will be adopted for the following steps to make stock order :

×                     For to do purchase of the Stock Raw material purchase, there would be made to come out of the Bond License.

×                     Three month before of the production, there will be appointed for the peoples in the Production Technical Division and the Merchandising Department who will be made of sample development for the stock order, will be made consumption check. In side by side of the sample development and for the stock order, there will be selected 40 to 45 styles, there will be prepared of the material budget for the production. Over all for the sale of the stock order, there will be contacted to the different stock buyer.

As the number of skill technician of this project is little, for this, after considering the matter of demand of production and quality, there will be given appointment at least 4(four) numbers of production Supervisor before two months of the production starts.

At first, for the Registration of the company and for the Memorandum of Article and Memorandum of Association of the company, we will be prepared it through a Lawyer or any Chartered Accountant Farm and through them, for the Company Registration, to the Register of the Joint Stock Company, for the approval letter of the business start of the company, there will be submitted of the documents. After received of the approval letter/certificate for to do business from the Register of the Joint Stock of Company, we will be collected about the business related and other documents for to make application for the Bond License.

It is need for mention here that for the smooth completion of the above mentioned works, there will be appointed of one person in the Commercial Department of the Navana Lingerie.

For to get Bond License, the documents which will be collected by us are herewith shown in the following chart:-

×                     Those who by their skillness, experience, for making of quality standard garments, there will be trained in the sample division.

×                     Two months before starting of production, for to make stock order , there will be done of Stock Raw-material  Inhouse.

×                     After imported of the production Raw material and there will be made for storage and for this, there will be at first, the place would be selected. Not only this, to keep the full account of these raw materials, there will be made a Warehouse Software Implement in the store. Two months before of the production, there will be appointed man power in the ware house.

×                     Later for the period of three months after of the stock order production, there will be started to make appointment of the man power in different department of the factory in gradually. Which is shown in step by step as the plan chart.

Sales Policy : The Sale's Office Merchandiser will make when the price Quote of any Buyer order directly, then the sale's office, for a order and upon the FOB value, for the 15% extra order handling charge, during the price Quote, there will be added Material budget. For our understand, a copy of material budget is herewith attached.

Sales Office DP contract or on the basis of CM, there will be given work to the factory and for the factory of which per piece garments CM will be fixed. Bra = 0.20 cent and Bottom = 0.12 cent. It is need for mentioned here that this rate of CM, there will be applicable for the next three years after begins of the factory production and this rate could be made change or amendment.

This CM cost of Sales Office Production, while order price quote, there will be mentioned it in the material budget. Sales Office Merchandise, in a fixed order, on the basis of style in the Material budget, there will be mentioned of the production CM cost (per pcs). It will not to be in any how in below of the 20% to 25% per pcs FOB value. In later period, if be needed, due the discussion with the Buyer per pcs CM cost, there would be made increase or decrease.

Sale's Office Merchandise will be made when the price quote for any direct customer of any fixed order. Then in the respective merchandise material budget, in the side by side of the Sewing allowance, the sleeping condition after made 5% Extra material price charge, there will be made of price quote. But when sale's Office for to production will be purchase of Material, then the Order Material Actual Consumption + Sewing Allowance, taking it, for the fixed order, will be bought of the Raw material. If do so, we would be made save of material cost upto 3%-5% on the categories of order and style from the Raw Material Purchase. Which will be make help for keeping Extra Profit Margin in the fixed order up to 3%-5%.

It is need for mentioned here that a fixed order, while confirming with buyer, from order confirm to make delivery, there would fixed of the delivery date taking at least 60 days.

30 days before of the Sale's Office Merchandise Overseas Raw Material delivery date, there will be arranged in house in the factory and in the case of local material, 20 days before, there will be arranged for the goods in house.

If the Sale's Office, in a fixed order and within the Raw material fixed production lead time, if not to be reached to the factory. Then all the responsibilities of this order, there will be borne by the Sale's Office. It is need to mentioned here that by the Sale's Office and for the production of a fixed order, there will be given to the factory at least 20 days.

Production  Department :

Three months before of the production start, for the preparation of Stock Order, there would be made set-up of the sample room. There will be made style develop there. Pattern, Consumption check, Layout Plan and Stock Order, for it, there will be made sample. In side by side of it, for the production, there will be given training to the production supervisor.

We will be bought of the factory machine in four step for the factory and for the production. We will be bought 15 machines in different brand for the sample room and for the test basis. By this process, we could be learnt about the quality and merit-demerit of the machine. In the later period and of which brand machines are favorable for the production, the machines of these brand, we will be bought for the production factory.

There will be made in total 25 Sewing Line in the Navana Lingerie project, of which 10 will be for the Bra and 15 will be for the Bottom Lines. Keeping the skill and standard quality production and within 16 to 18 months of the factory production, we will be tried for to start of all the production line of the factory. Those are given in below in the shape of description :

(1) At the beginning of the factory, will be bought for the 8 Bottom Line and 2 Bra Line Machine.

(2) Within the next 4-5 months of the factory starting, we will be bought more 8 Bra Line and 2 Bottom Line Machine.

(3) Within the one year of the production starts, we will be bought more 5 Bottom Line Machine. In this manner and gradually, there will be able to buy 25 Lines Machines.

(4) It is need for mention here that  the supply machines for sewing, we will be started to buy at the beginning month of the project and we will be finished to buy within 5 months from the project starting period.

(5) Keeping the consistency with the machine buying and after considering for the skill worker and for the standard quality garments production, in the 5 steps Navana Lingerie Factory, there will be appointed of the man power for 25 production lines. Those are shown in details as below in the manner of chart:

(i) To the view of establishing for model factory, within the six months of production, we will be prepared of the production Manual and Quality Manual. In this Manual, there will be broadly mentioned about the procedure and job responsibility. Which will be kept for active role to pass for the Code of Conduct Audit.

(ii) The procession of the Navana Lingerie Factory Production will be Quality First.

(iii) As the Navana Lingerie is a production oriented factory and also the labour related,  hence to make free of different type of labor dis-satisfaction and to keep free of the factory and in the case of the worker, we will be make prefer the girls than the boys.

Administration : For to counduct of the factory administration activities in smoothly, we will be appointed 3 personals in the administration department before two months begins of the factory production and their work will be as follows in needs:

(1) To make advertisement for to appoint of the man power and to make appointment.

(2) To do maintain for the personal file for each worker/staff.

(3) To do make the attendance/over time to make record.

(4) To do prepare of Pay Roll.

(5) To do make councelling.

(6) To do make follow-up of the canteen.

(7) To do make follow-up of the transport management.

(8) To do prepare of the leave policy.

(9) To do pass the leave through the approval of the production manager/ to make approval of the gate pass.

In the second part, within the four months of the production starting, there will be made appointment one HRD consultant and one Administration Manager.  Two of these person with jointly, will be prepared for  the direction sides for the factory administration and will be gradually implemented into the factory.

It is need for mention here that we will be appointed to the HRD consultant for contract basis to the period of one year. In later period, the duration period of the contract could be made extension if in need.

Factory HRD consultant will be kept for the principal role to the prepare of  the following directions for the factory and for to pass of the Code of conduct Audit.

(1) Rules and Regulations of the Factory Administration.

(2) HRD policy.

(3) Recruitment and dismiss procedure.

(4) Counseling procedure.

(5) Welfare Fund Policy.

(6) Leave procedure.

(7) Provident Fund/Gratuity.

(8) Prepare of Salary scale as per the code of conduct.

(9) Direction for Fire Extinguisher.

(10) Factory General Principle and Workers Help matter.

(11) Overall we will try to apply for the Factory Code of conduct audit  and to achieve the certificate through the work of him.

When the HR consultant will be prepared about the Directive Manual on the above matters, he must be determined with the consistency about the Bangladesh Labor Law and Code of conduct for the principles and which will be acceptable for all.

When will be apply for Factory Code of conduct Audit within the 5-7 months of the factory opening that means after came some of the maturity and we will be arrange to make COC certificate of the factory.

There will be given preference of the following matters to make COC certificate of the factory :-

(1) Child Labor.

(2) Forced Labor.

(3) Health and Safety.

(4) Freedom of Association.

(5) Working HRS.

(6) Compensation.

(7) Management system.

It is need to mention here that we will be stopped to make appointment to a worker below 18 years in the company.

As per of the Labor Law of Bangladesh and the Factory Code of  Conduct, there will be arranged for work about 60 hours in a week and there will be fixed for one day as common leave.

Administration Department will be make appointment in step to step as per of the Factory Recruitment Plan in side by side of the above activities.

It is need for mention here that the logistic department will be started of their work for two months before about the factory begins. Their first work will all of Electrical Warring, Production  Line tracking in the set-up and also set-up for Transmeter, voltage Stabilizer  and for the production, cutting table, tools for sitting of the workers,  after bought of chair/table for the management persons and to do set up as the layout plan of the factory and to do buy different type of stationery item for the factory.

The principal work of the logistic department will be to make supervise if have rightly supplying the electric power in the factory.

Medical and Day Care:

Within the 2(two) months of starting for the Factory Production and considering about the health matter of our workers and as per of the Labor Law of Bangladesh and Factory Code of Conduct, we shall be provide about the health services.

For the Medical Aid, we shall be appoint a Nurse to the beginning period and on the basis of the contract, there will be made appointment of a doctor. In the later period and increasing of the man power in different department of the company and as per need of the Medical Section, there will be appointed of the doctor and nurse.

In this Medical, we shall be provide to the worker as primary aid and the needed medicines shall be borne by the company to this medical aid. The company will be maintained a Fund in the Factory Budget for each month to the needs for buying of these medicines. In side by side, for to buy of the medicines, we will be taken the assistance from different social organizations.

Day Care Facility:

As per of the Factory Code of Conduct, the child's of the labors and those who are within 2-5 years age, we shall be arranged for nursing aid in the Factory Day Care Centre as per of its capacity.

This Day Care centre shall be conducted under of our Medical Centre and there will be appointed a maid servant servant for all the time to the nursing aid of the childs.

This Day Care Centre will be provide nursing with free of cost and will arranged for feeding to the childs.

This Day Care Centre will be arranged for nursing for the highest 25-35 number of babies.

To conducting for this Day Care Centre, the company will be reserved a fund for each month. In side by side, there will be taken assistance from different social organization.

IT Department:

The activities of the IT Department will be started two months of beginning of the factory. Their first work will be in the primary level, to make set-up about the IT related necessary equipment's in the  Factory.  In side by side, Warehouse Software, HR Pay Roll and Punch Machine Installation, they will be done. After this and in gradually and as per of the factory needs, Network Expansion, Radio Link Installation, Server set-up etc. work, there will be implemented.

To the interest for the development of the Factory Communication, they will be informed to the top management about the new idea of the information technology and will be paid for the principal role to the work of implementation.

Bonus : Navana Lingerie will be provided to the Workers and the Management Staffs as per Labour Law and Factory Code of Conduct for two Festival Bonus which will be equal of the Gross Salary for one month.

To the interest of the production and for to increase of the Factory Productivity, there will be arranged of the Production Incentive/Production Bonus for the workers. To this view, the company will be made a Production Target Fixing for each of the Line. If any line be made for the Target achieving, then this line will be get the production Bonus. This production Bonus shall be depended only of the company management and the decision. Policy shall not be applicable for all the time in the Factory Production.

The company shall be arranged for some of the incentive to the Sale's team of the company for to the view of Sale's increasing of the company(which will be applicable for the first two years after begins of the factory production).

For to make more and more influence of the Navana Lingerie Ltd of its Overseas and Local Sale's Office, there will be provide of Incentive on 1% rate on the basis of the profit in each year of the Sale's Office. This Incentive shall be distributed in equally amongst of all. This bonus will be helpful for the stop ness of adopting of different dis-honest principles for the Officers of the Sale's Office.

It is need for mention here that all the above mentioned  Incentive Bonus will be gradually effected as per of the discussion and taken decision of the company management after got of the Direct Order.

Increment :

As per of the Labour Law and Factory Code of conduct in Bangladesh, the Navana Lingerie Ltd. of their worker and management staff and for the presence in the factory, skill ness of the work, experience, conduct, behavior etc., on the basis of theses, there will be made evaluation of each of the employee to the company and for one time in a year, after made evaluation of his/her work, there will be provided of his/her yearly increment. It will as in each working year and for the individual working performance of the workers, there will be provided on the basis of it.

This yearly will increment shall be made effect in the month of April in each year.

The company will be taken for to activated  of the yearly Increment Policy after got Direct order by the Navana Lingerie Ltd. and as per decision of the Company Management.

It is more need to mention here that this yearly Increment would not be exceeded at any stage up of the Factory Gross Salary about 3%-5%.

Promotion : The company could be given promotion to its appointed officer and employees in Management Staff and Worker after considering about their work skill ness, eligibility, duty performed and preparation of planning  capacity. Any proposal in related to the proposal, there will be made about the proposition  through the head of the department for the relevance department. Any kind of promotion proposal shall be reserved to the top management of the factory for to considering of it.

This promotion proposal  shall be submitted  once in a year within a fixed period of the year.

All kinds of the promotion case shall be made active from the next year after received of the Direct Order by the company.

Salary Structure : Navana Lingerie Ltd., as per of the Labour Law and Factory Code of Conduct in Bangladesh, there will be determined about the salary structure of the Management Staff and the worker.

It is need for mention here that there will be brought up of the payable salary according to the different department from the near by production organization of the factory while preparing of the salary structure. If so applied, there will be difference about the salary for a far/less amount with the relation of the nearby factories. If in need in later period, there will be the chance for this salary structure to make re-arrangement according to the departments.

Confirmation : The company will be provided about the appointment letter while appointing of its appointed officer and employees and the workers. They will be at least six months observation under the company from the dated of employment. Later the period, if his/her activities are treated satisfactory by the authority, then the company will be made permanent of his service through the recommendation of the fixed departmental head.

Provident Fund : According to the Labor Law and Factory Code of conduct, each of the officer and employee  and labor, after made permanent of their service, there could be participated in to the provident fund of the company. It is need for mention here that to do participate in to the provident fund, it completely   depends on the willing of the workers and the staffs.

After ended of two year for the deposition for the money of the Provident Fund, there will be kept of the eligibility to make withdraw for the deposited part of the company.

As per of the existing rate for the basic salary (8.33%), there will be deposited in each month to the Provident Fund for the company.

Gratuity : According to the Law  and Factory Code of Conduct in Bangladesh, after considering the future of or the Officer, Employees and the Labors, the Navana Lingerie will be provided at a time payment as the gratuity while releasing to the fixed worker/staff  treating the service benefit for an equal amount of money of a salary in a year.

This service benefit shall be activated after made of permanent to the officer and employees and the labors of the company.

Income Tax : Under the Taxes rules, all the officers and the employees of the company, there will made deduction of Tax according to the Taxes rule from his/her salary and there will be deposited to the Govt. Treasury Fund. Those who officers and the employees are under the Taxes rules, this Tax will be made deduction from their each month's salary.

It will be made active according to the decision of the Navana Lingerie Ltd.