PROJECT ON PRAMS COLLECTION
FACULTY: Dr. SANJAY FULORIA
SUBMITTED BY:
SUJIT DAGA
ENROLL No. 09ESHYD039
INTRODUCTION
OSWAL ELECTRONIC CO. established in 1972 is a leading player engaged in manufacturing & trading of electronic circuit boards and accessories used in televisions, CD/DVD players, DC convertors, solar panels, etc.
PRAMS is a sister concern of OSWAL set up with 5 full time partners from OSWAL. PRAMS is into import and distribution of fancy kid’s stationery from CHINA and KOREA.
OBJECTIVE
To enter into a lucrative business of kid’s stationery. With the growth of service sector and ever increasing disposable income, middle class Indian family is now moving from necessities to comforts. Moreover the sheer volume of Indian population and booming education sector provides ample opportunity for a new business line.
To start with we will 1st enter into Delhi’s market and also its surrounding markets like Punjab, Haryana, Himachal Pradesh and other neighboring states. Next in line would be Kolkata and its surrounding markets.
COST
The project involved a initial capital investment of Rs. 10 crores to Rs. 12 crores in a phased manner. An assorted 40 feet high cube container would cost around Rs. 2-2.5 crores.
The steps involved for an entire cycle are:
Purchasing 25 days
Shipment 25 days
Sales 40 days
Collection 30 days
As the entire cycle took around four months, capital for the rotation of four containers was engaged.
TIME LINE
2 Years. Since we are into trading business, we have to check the consistency of the revenue stream. A short time line is not a accurate measure, in a business like that of stationery there are several seasonal variations, like new academic year, festivals, etc.
METHODOLOGY
New business opportunity was identified and feasibility study was conducted. It was found that kid’s stationery had a huge potential and suppliers were few and scattered. Since we primarily wanted to get into trading activities, quality suppliers at reasonable cost were identified in Korea and China. Since the design and trends keep changing, one of the partners was relocated to China to keep a close watch.
Photographs of the samples were sent from China and on approval goods were dispatched.
SWOT ANALYSIS
Strengths
Pan India presence in other business line. Strong internal marketing team.
Weaknesses
No prior knowledge of this kind of business
Opportunities
Large market size.
Scattered suppliers.
Threats
Competitors.
Uncertainty of market preference. Currency fluctuation. Government policies.
IMPLEMENTATION
From the five partners, one was to permanently reside in China, two were to take care of marketing and sales activities, and the other two were engaged in financial part and other import – export compliance activities.
For Delhi operations two separate offices were taken on rental basis. One of them was dedicated to much of the paper work and the other was taking care of marketing activities. The second setup comprised of a office and a three storied warehouse. A small display was also setup beside the office.
Five sales representatives were hired on salary plus commission basis. Apart from that some twelve to fifteen people were also hired to take care of loading & unloading and also other petty office errands.
Seven motor bikes were purchased for sales representatives and other office jobs. Two delivery vans were also purchased for timely delivery of goods to the customers.
MONITORING AND CONTROL
Monthly and quarterly sales target were fixed and any deviation was closely monitored. Deviations could range from change in customer preference to some seasonal variation. Feed back used to be taken from customers to correct the variation.
CONCLUSION
The project was a huge success. The goods which were imported were done so keeping in mind Delhi’s market, so the business steadily picked up in Delhi’s market. The neighboring states also responded very well.
The container full of goods was imported in Delhi and then marketing was done in Kolkata. The drawbacks here were:
• The goods were a little costly for the Kolkata market and as such large volumes were not generated.
• There were direct importers based in Kolkata, giving tough competition.
• As the container was opened in Delhi and the goods were resent to Kolkata, it further increased the cost by almost 10%.
Therefore the project was not as successful in Kolkata.
FACULTY: Dr. SANJAY FULORIA
SUBMITTED BY:
SUJIT DAGA
ENROLL No. 09ESHYD039
INTRODUCTION
OSWAL ELECTRONIC CO. established in 1972 is a leading player engaged in manufacturing & trading of electronic circuit boards and accessories used in televisions, CD/DVD players, DC convertors, solar panels, etc.
PRAMS is a sister concern of OSWAL set up with 5 full time partners from OSWAL. PRAMS is into import and distribution of fancy kid’s stationery from CHINA and KOREA.
OBJECTIVE
To enter into a lucrative business of kid’s stationery. With the growth of service sector and ever increasing disposable income, middle class Indian family is now moving from necessities to comforts. Moreover the sheer volume of Indian population and booming education sector provides ample opportunity for a new business line.
To start with we will 1st enter into Delhi’s market and also its surrounding markets like Punjab, Haryana, Himachal Pradesh and other neighboring states. Next in line would be Kolkata and its surrounding markets.
COST
The project involved a initial capital investment of Rs. 10 crores to Rs. 12 crores in a phased manner. An assorted 40 feet high cube container would cost around Rs. 2-2.5 crores.
The steps involved for an entire cycle are:
Purchasing 25 days
Shipment 25 days
Sales 40 days
Collection 30 days
As the entire cycle took around four months, capital for the rotation of four containers was engaged.
TIME LINE
2 Years. Since we are into trading business, we have to check the consistency of the revenue stream. A short time line is not a accurate measure, in a business like that of stationery there are several seasonal variations, like new academic year, festivals, etc.
METHODOLOGY
New business opportunity was identified and feasibility study was conducted. It was found that kid’s stationery had a huge potential and suppliers were few and scattered. Since we primarily wanted to get into trading activities, quality suppliers at reasonable cost were identified in Korea and China. Since the design and trends keep changing, one of the partners was relocated to China to keep a close watch.
Photographs of the samples were sent from China and on approval goods were dispatched.
SWOT ANALYSIS
Strengths
Pan India presence in other business line. Strong internal marketing team.
Weaknesses
No prior knowledge of this kind of business
Opportunities
Large market size.
Scattered suppliers.
Threats
Competitors.
Uncertainty of market preference. Currency fluctuation. Government policies.
IMPLEMENTATION
From the five partners, one was to permanently reside in China, two were to take care of marketing and sales activities, and the other two were engaged in financial part and other import – export compliance activities.
For Delhi operations two separate offices were taken on rental basis. One of them was dedicated to much of the paper work and the other was taking care of marketing activities. The second setup comprised of a office and a three storied warehouse. A small display was also setup beside the office.
Five sales representatives were hired on salary plus commission basis. Apart from that some twelve to fifteen people were also hired to take care of loading & unloading and also other petty office errands.
Seven motor bikes were purchased for sales representatives and other office jobs. Two delivery vans were also purchased for timely delivery of goods to the customers.
MONITORING AND CONTROL
Monthly and quarterly sales target were fixed and any deviation was closely monitored. Deviations could range from change in customer preference to some seasonal variation. Feed back used to be taken from customers to correct the variation.
CONCLUSION
The project was a huge success. The goods which were imported were done so keeping in mind Delhi’s market, so the business steadily picked up in Delhi’s market. The neighboring states also responded very well.
The container full of goods was imported in Delhi and then marketing was done in Kolkata. The drawbacks here were:
• The goods were a little costly for the Kolkata market and as such large volumes were not generated.
• There were direct importers based in Kolkata, giving tough competition.
• As the container was opened in Delhi and the goods were resent to Kolkata, it further increased the cost by almost 10%.
Therefore the project was not as successful in Kolkata.