sm spinning wheels

STRATEGIC

MANAGEMENT

GARMENTS INDUSTRY

We support environment, do u?

Presented By:

Aboli Ambardekar 71

Anuja Ayre 73

Prateek Dabholkar 81

Urvi Nair 103

Sukanya Salunke 113

Ajinkya Sawant 114

Kshipra Tiwatane 122

Amit Rathore 123

Krupali Patel 125

Tanveer Lokhandwalla 126

Payal Shinde 129


ACKNOWLEDGEMENT

We would like to thank Jayshree Ma’am for giving us an opportunity to work on this topic.

Also would like to congratulate all our group members for working successfully on this project in a proper co-ordination and systematic manner.


CONTENTSSR.NO.

PARTICULARS

PAGENO.

1. Preface 7 2. Mission & Vision 8 3. About Us 9 4. Why organic clothes? 15 5. Types of fabrics 17 6. Indian Apparel Industry 19


7. Segments with PLC 20 8. BCG 25 9. Strategies 30 10. Competitors 39

11. SWOT 41 12. Future Prospects 43 13. Why us? 46 14. Message 47 15. References 48


PREFACEHere at Spinning Wheels we care about the product, the people and the planet.

Our fabrics are grown and sewn with love.

Our garments are crafted with conscience.

styled with a soul.

We started the organic revolution by entering into the market and producing eco friendly clothes.


We continue to be at the forefront of sustainability, with organic and recycled fabrics dominating our collections.

MISSION“The mission of Spinning Wheels is to sustain as a responsible commercial by producing organic clothes & to be successful as a global marketing company.”

VISION“We are committed to offer all of our customers the best service, unrivalled quality, eco friendly products, the latest


innovations and exceptional value for money.”

ABOUT USIn year 1947 Mohandas Karamchand Gandhi , Bapu of India brought freedom for India. Spinning wheel and Organic Clothes (Natural Fabric) were among his favourites. Following the Gandhian philosophy, today with the production capacity of 1000 clothing pieces per day and with more than 2000 artisans working with us, we are one of the major Organic fabric producer and trader in India with more than 30 retail stores in India with more stores in planning process. Our products are nature friendly and made from pure natural fabrics. Our specialty is designer clothes made by organic cotton fabrics.


Spinning Wheels established in 1999 has been a front runner in the field of Textile manufacturing. The factory is situated in the industrial area of GIDC, Ankleshwar, which is well connected to all cities by road, train, and air (via Vadodara formerly known as Baroda). The company has been serving huge clientele of domestic clients by fulfilling their needs of quality garments. The main production area occupies about 1/3rd of the plot. With the unit running 24/7 and the production being tracked by highly experienced and able personnel’s, quality and quantity of the highest caliber is assured. Some of the intermediates required for our captive consumption are also manufactured in-house. Laboratory technicians test the raw materials in process batches as also the finished products to ensure that only the best quality is delivered to our customers. We have been manufacturing eco-friendly and specialized fabrics for more than 10 years. However the never-ending quest for


unmatched excellence continues.

Start Up

Post 20th century was signified by two events i.e. entry of foreign clothing brand in India and incitation of our company “Spinning Wheels” in the market. The time when people where lured by colourful, bright, fancy as well as expensive cloths our company entered the market with authentic, traditional yet modernised cloths. These cloths were a no less then this branded clothes in terms of quality and price. With a view of restoring the cultural and ethical values which are the two pillars of company, organic clothes were chosen as the product which we would like to sale it in d market. Unlike the branded clothes,this clothes are more eco friendly which is a real need of the century. Result of joint venture of five friends of Mumbai “Spinning Wheels” came into existence ten years ago. With


mutual understanding of the partners , the business was setup in Mumbai and the office was also setup in suburbs of the city. The manufacturing unit was put up in the outskirts of Mumbai. With proper management in the field of HR, finance and marketing the company was successfully set up. It took around 2 years to settle down in the market and in this phase many investors and wholesaler collaborated with us. The USP of our company was out motto which is “ GO GREEN”. People could relate to us as the earth is facing serious ecological threat. And also the modernised look that we offered attracted the customers of all segment. Men accepted the designer shirts, trousers and Indian wear and on other hand women liked the colour combinations. Branding strategies we adopted were in newspaper, radio, television, and hoardings. With Gandhian approach, we thought of Gandhiji as our brand image as no bigger personality in Indian history. The spinning wheel


which he used inspired our name. But just branding our product wont sell our products. The thing which is going to sell the product is quality in which we firmly believe and we strive for the same. Our supplier included the best raw materials providers in the states Maharashtra, Punjab and Kerala. This raw materials are processed in our manufacturing unit. Maximum output in minimum wastage is something we try to achieve. This was the base of our company which we used to build on the same for a sustainable business.

DIVISIONAL STRUCTURE OF SPINNING WHEELS

Spinning wheels have flourished geographically as its headquarters in Mumbai, and other regional branches in Pune, Ahemdabad, Kolkata and Chennai. We provide online shopping also.


Accordingly, our each division has its own set of functional units such as research, manufacturing, marketing etc and is completely self-contained. We have our product or project departmentalization to facilitate expansion (because our company can easily add a new division to focus on a new profit opportunity without having to significantly alter existing systems). In addition, accountability is increased because divisional performance can be measured more easily. Furthermore, divisional structures permit decentralized decision making, which allows managers with specific expertise to make key decisions in their area.


WHY ORGANIC CLOTHES?

Go green is our motto. Our products are Helpful in prevention of Global warming: Organic Clothes are made from totally environment friendly fibers that lead to helping environment by using none of synthetic and harmful chemicals while production in the era of increasing global warming.

Authentic organic fabrics and clothing can help the environment in a number of ways, such as:

•Manufacture of chemicals is not required.

•Chemical residues are not entered accidentally into the environment.


•Humans and animals are not exposed to chemicals.

•When the fabric is finished with chemicals are not returned to the earth in landfill, or enter into recycling process.

Eco-friendly Fashion fabric Versatile fabric, cool in summers & hot in winters Symbol of Empowerment & Pride Buying ‘Hand-woven Organic Fabric (Khadi) 'lightens a lamp in rural huts, helps in Rural Self-employment Hand woven organic fabric (Khadi) played a major role in the freedom of India.

Your values need to be represented clearly in your business. Create more awareness for sustainable world and help environment by having organic attire - all made in socially responsible manner from eco-friendly fibre and dyed with environmentally friendly dyes.

Our natural clothing store can help you with all the steps of the process.


TYPES OF FABRICS

•Organic Cotton: We are one of the biggest producers of Organic Cotton Fabrics in India. Our Range of Products in Cotton are:-

O White (Simple/Muslin)O Coloured (Simple/Muslin)O Cross dyed Cotton FabricO Stripes (Yarn Dyed)O Printed Cotton Fabric

•Hand woven Poly Cotton: We are one of the prime producers of hand woven Poly Cotton Fabrics in India. Our Range of Products in Poly Cotton are:-


O WhiteO ColouredO Cross dyed FabricO Stripes (Yarn Dyed)O Printed Fabric

•Organic hand-woven Silk: We have Varieties of Silk Fabrics both natural and coloured.O Matka SilkO Tussar SilkO Dupian Silk

•Organic hand-woven Woollen Fabric: We have Varieties of Woollen Fabrics in different colour patterns and designs.


INDIAN APPAREL INDUSTRY


SEGMENTS

Menswear

•Whites: We have wide range of white Kurta with different designs in Organic Cotton, Poly-cotton and Organic Silk Fabric. Production on demand is also available.

•Plain Colours: Wide range of plain colour Kurtas are available in Organic Silk, Poly-Cotton and Organic Cotton Fabrics to choose from. We also have Silk Kurtas in Matka Silk, Tassar Silk and Dupian Silk.

•Stripes/Linings: Wide range of Kurtas with stripes pattern in Poly-Cotton and Organic Cotton Fabrics to choose from. We also manufacture On Demand.

•Printed Kurta: Various designs of printed Kurta like traditional ‘bhuj’ print and block print, are available. We also manufacture printed Kurta on demand.


Women Wear

•We have a committed team of fashion designers who are innovative and always look to provide best of their work. We are manufacturers of big range of ladies Kurti Tops, In different types of Organic Cotton, Hand-woven Polycotton, Silk Organic fabrics with variety of prints and designs.

•Short kurta

•Long kurta

•Salwar-suits

•Salwars, Chudidars, dupattaWe also manufacture party dresses and summer dresses made from hand-woven organic fabrics ( e.g. cotton and silk) our team of committed and innovative fashion designers always take care of present and future fashion trends and provide us with best of their works.


Kids Wear

We offer super comfortable, fashionable organic children’s clothing. Whether you are looking for organic baby gifts or kids’ clothing, we have something you’re going to love.

Certified organic fabrics and hand-made Low-impact fibre reactive dyes suitable for

sensitive individuals No flame retardants Kid-tested, Kid approved.

Clothing for the Organic BabyDress your little one in healthy, untreated fabrics. Our Garden Kids organic payjamas, made from super-soft 100% organic cotton, are available in all-natural or striped fabrics – summer or winter styles. We also carry one-piece rompers, t-shirts and pull-on pants in sizes from newborn to 24 months. All of our children’s clothing items are hand-made.


Clothing for the Organic ToddlerLet them play! Garden Kids' hand-made clothing is known for its durable, hand-made quality and comfort. All our products are dyed using only low-impact, fibre reactive dyes. Whether you are looking for organic t-shirts, long sleeve shirts, pants, leggings, skirts and shorts, you can find them here in sizes from 2T to 5. And don’t forget about our organic pajamas – we make them WITHOUT flame retardants.

Clothing for the Organic KidNot just for the little ones! Our famously comfortable clothing is available in sizes 6 up to size 12. Organic dresses, skirts and tops for girls - and pants, t-shirts and shorts for boys.

PLCWe support environment, do u?


Children's wear

Men's wear

Women's wear

BCG

CASH COWS: Men’s wear formals


It includes shirts, trousers, pants, ties, blazers etc. men’s tend to prefer such types of clothes because they are in organisational areas. Most of the time they are at the work place and thus suits them the most. Formals are most suitable on men. Majority of men prefer formals and the industrial growth of men’s formal wear is also good as most of men’s are into co-operate sector. Varieties in shirts and trousers are available as per the fashion trends.

QUESTION MARK: Men’s wear casuals

Age group of 14 to 28 men’s normally opt for casual wear which includes t-shirts, jackets, cargos, jeans, etc. looking at the growing fashion trends there are variation s in pattern design etc, and based on this youngsters tend to go for such new and upcoming clothes which are of good quality at an affordable price and gives a trendy look. The market share of men’s casual wear is enough good as compared to men’s formals wears


Women’s formal wear

Women western formals includes shirts, trousers, scarfs, skirts, blazers, & Indian formal wear includes- sarees, kurtis, and churidaars. Office going women specially prefer cotton materials which is an organic material. As days goes by, there are new and new technologies coming up in the market with attractive collections of clothes and thus this enhance more sales which ultimately results in good market share of the companies.

STAR: Women Casual Wear

The unit of casual wear for women is included in the Star section of BCG matrix.

Women’s wear constitutes a large part of the sales of organic garments.

Women consumer’s focus is shifting towards organic garments.


Women’s casual wear in terms of organic garments includes tops, kurtas, t-shirts, skirts, salwar-kameez, etc.

Women tend to prefer it as it is highly comfortable and great quality of cloth.

Another reason for its high sales is that organic garments are affordable as compared to the non-organic garments.

Women indulge in shopping as per the new fashion trends.

New patterns, designs, exclusive artwork, hand-crafted garments are the main attractions in d casual wear for women in organic garments.

DOG: Kids wear

The unit of kids wear is included in the Dog section of the BCG matrix.

Kids prefer fancy and attractive outfits.


Comfort level or simplicity takes a backseat for them in their choice.

Parents mostly go with their children’s wants and choice in case of purchase of clothes.

Organic garments for kids don’t have much public awareness.

Also it is less likely that majority of people will opt for it.

They generate cash just to break-even.

Hence its sales are very low, thus profits are negligible.

Its sales are very less compared to those of non-organic garments company.


STRATEGIES

FUNCTIONAL STRATEGIES:

FINANCIAL STRATEGY

It is important for a business to have a clear financial strategy. This is true for both new companies and those with a long history. The strategy constitutes your company's guiding principles in all its financial decisions.

First year a sale of $750,000, with an annual growth rate of 25% ensures that the company is profitable. With a 70% product margin every year initially, Spinning wheels will be able to accumulate enough cash to become attractive as a takeover target by a larger organic apparel company. Founder investments, as well as outside equity investments, will help the company maintain cash reserves, while helping the company grow at a rapid rate.


FUNDS REQUIRED & USE

The company had raised $200,000 through founder investments, and is currently seeking an additional $100,000 from an equity investor. These funds will be used to cover inventory, staffing, rent, production costs and general operating expenses.

FINANCIAL PLAN

REQUIREMENTS

Our founders had invested $50,000 to launch Spinning wheels. Additional $100,000 was needed to ensure that proper working capital is maintained through the first year of operations.

USE OF FUNDS

Start up costs had primarily been attributed to product development and inventory ($100,000) and marketing costs ($30,000). Additional costs include, staffing, rent, office equipment, furnishings and supplies. There were also being legal and web development costs.


INCOME STATEMENT PROJECTIONS

First year sales were $750,000 with expenses totaling $790,000. This left a loss of approximately $40,000 in the first year of operations. By Year 2 revenues was projected to grow by 25%, equaling $940,000 in sales. Expenses totalling $800,000 lead to a second year profit of $140,000. Gross margins increased from 60% to nearly 70% in Year 2 due to economies of scale and manufacturing efficiency. Division Spinning wheels were successful to sustain a 25% annual growth rate as it expands nationally for the first five years. As the company continues to rise over the next 5 years

BREAKEVEN ANALYSIS

Our monthly fixed costs are over $35,000. Variable costs in Year 1 were approximately 31%, leading to a monthly breakeven point of just over $50,000. At an average selling price of $45 per unit, an estimated 1100 units were sold per month to breakeven.


PROJECTED CASH FLOW

Spinning wheel has become cash flow positive on a month to month basis by the end of Year 1. The initial founders’ investments, along with the outside investment, ensured that working capital were available to cover start up costs plus losses for over twelve months. It is anticipated that the company will experience negative cash flow months in the winter and fall, however strong sales during the summer months will make up for any losses that will be incurred. Sales through our website will help maximize profit margins and reduce collection delays.

BALANCE SHEET

The balance sheet show first year assets of $300,000 and no debt. After acquiring inventory, equipment and furnishings, we retain the balance in cash for operations. We arrange a line of credit for emergencies and to maintain a comfortable cash balance during periods when our receivables are high.


MARKETING STRATEGIES

Spinning wheels is challenger dominant. It has brought and will bring in variety of products to fulfil the demand of the customers. Though organic clothing is not in fashion, Spinning wheels have brought it in fashion by promoting it on a large market. Since, we have online shopping from the last 2 years; we have encouraged official blogs on facebook, BlogSpot, Twitter and many more. Spinning wheels give the pleasure of larger branded clothes in context to the quality, trend, fashion but the pricing is quiet reasonable as compared to them. There are frequent sales, discounts, gift hampers provided; to attract customers. We have located all our outlets in such a way that the market areas in particular regions are covered. It is also to capture a bigger market share in the market.

HRM STRATEGIES

Clearly defined role of Human Resources in Recruitment process is very important for measuring the success of the whole Recruitment Process to bring in the most talented people to Spinning wheels as employees. The overall setting of the HR Role in Recruitment is directly linked to


Recruitment Strategy and HR Strategy. The Recruitment Strategy has clearly define the role of Human Resources and of Hiring Managers as it is a very important for setting the correct measures and to identify potential gaps in the whole recruitment process.

A traditional role of HR in Recruitment of Spinning wheels was an administrative part of the whole process. The HRM was responsible for maintaining the vacancies advertised and monitored, but the real impact of HRM to the performance of the whole recruitment process was minimal. But as the role of Human Resources in the business was increasing, the HR Strategy was changed. From making the process working to the real management of HR Processes and the Recruitment Process was the first to manage. The Recruitment Strategy changed - the efficiency and costs to the company were more important.

The HR Role in Recruitment changed in Spinning wheels and HRM:

decides about the design of the recruitment processes and to decide about the split of roles


and responsibilities between Human Resources and Hiring Manager

decides about the right profile of the candidate decides about the sources of candidates decides about the measures to be monitored to

measure the success of the process

The role of HR in Recruitment is very important as HRM is the function to work on the development of the recruitment process and to make the process very competitive on the market. As the job market gets more and more competitive, the clearly defined HR Role in Recruitment will be growing quickly. HRM is not a function to conduct all the interviews today, the main role of Human Resources is to make the recruitment process more attractive and competitive on the job market.

Successful Recruitment Strategy

Hiring and selection of employees is one of the most visible HR processes within the organization. Recruitment is a very sensitive area to succeed and it always generates a lot of complaints from the managers.


http://hrguide.applezoom.com/2007/09/successful-recruitment-strategy/

For the successful recruitment process, the clear position of the organization on the job market has to be defined. It provides recruitment processes with the right focus on areas to search employees from.

HR Strategy

Spinning wheels main drivers for deciding about the appropriate HR Strategy is:

competition on the market complexity of skills and competencies

required possibility of investments into human capital

The HR Strategy must clearly react to these conditions and it has also project the future development supposed by the overall business strategy. And it is the main task of the HR Management to find a suitable solution to make a complex alignment of the HR Strategy and Business Strategy.

HR Role in the Business

Spinning wheels have divided the role of HR into 4 main segments:


http://hrguide.applezoom.com/2007/08/hr-role-in-the-business/

http://hrguide.applezoom.com/2007/09/hr-strategy-and-business-strategy/

Business Partner Employee Advocate Change Agent Admin Star

It is important to mention, the 4 roles have the same importance. The HR Department cannot decide about the stress to one role and ignoring issues in different segments. All the roles must be played at the same level to be a “trustful” business partner by other managers.


COMPETITORNATURAL CLOTHING COMPANY

Features

Natural Clothing Company, Exporter for quality Knitted and Woven garments from the reputed Knitwear City of Tirupur, located in Tamilnadu state, India is the competitor of Spinning Wheels.

With the strength of 130+ skilled people and equipped with state of art machines they have a production capacity of 1,50,000 T-Shirts per month.

They deal with a wide variety of Fabrics like SINGLE JERSEY, PIQUE & CO-ORDINATES, RIB KNITS, AUTO ENGINEERED STRIPE KNITS, TERRY / FRENCH TEERY, INTERLOCK, JACQUARDS, FLEECE & CO-ORDINATES, DESIGNED KNITS etc.,

Their Menswear include T-SHIRTS, VEST, CO-ORDINATES, POLO SHIRTS, SWEATERS JACKETS, BERMUDAS, TROUSERS, BOXER


SHORTS, SPORTS WEAR or SETS etc in wide range of Chest Prints, Embroidery and Mix. Ladies wear ranges across T – SHIRT, VESTS, BLOUSES, P.J.SETS, SWEAT SHIRTS, NIGHT WEAR & COORDINATES.Kids Wear of FANCIED T–SHIRTS, BABY SUITS, SLEEP SUITS, SETS, BABY BODY etc.,

PRODUCTS –

Babies: Natural Clothing Company is in the field of Garment manufacturing and exporting for nearly 12 years and hence has an accumulated library of garment patterns from Infants to Adults Garments. Fabric range has also well expanded from baby safe organic cottons, specially treated cottons, various blends, speciality fabrics for sports and winter and the artistic touch of Batik and Tie and Dye.

Ladies:Night wear shown here for Ladies is a rare blend of large print on a soft cotton. The print technology ensures soft finish which requires special care of printing. A strict quality regime can only output such a delicate fashion product like this and you can sample our capacities further with your own ideas.


SWOTStrength:

Increasing disposable income of people

Brand conscious customers

Availability of cheap finance

Growing domestic market

Increase in number of malls.

Weakness: Predominance of unorganized Sector.

Technological obsolescence in supply.

Effect of Historical Government Policies.


Opportunities: Increasing demand for luxury brands from

the middle class

Research and new product development can help the company to move across the value chain

Increased use of CAD to develop designing capabilities.

Threats: Increased competition in the domestic

markets

Cheaper imports

Changing Government’s policy.


FUTURE PROSPECTS1.Diversifying our products from traditional and

formal to jeans. Planning to launch organic jeans in next 2 years with new improved technology. As the LEVIS company is one of the company which offers organic jeans but this are not acceptable by the masses specially in metropolitan cities. Many customers gave negative feed back for this jeans as the material used for this jeans wasn’t comfortable and also wasn’t rigged as the material used by them in normal conventional jeans. So to take over this segment, we are planning to get into the same and also expand.

2.As we tried to diversify our product we also want to expand our market all over the country as well as abroad. Punjab, Delhi, Assam, Bangalore,Kerla and few cities in north are the


markets which we are planning to target in next 4 years. Also we are planning to expand abroad in the country on Canada in the next 6 years as we settle in India first. The reason behind entering into Canadian market is large no. of Indian people which includes Punjab in Canada.

3. Spinning Wheels is trying to collaborate with the leading fashion designers in the Indian industry such as Manish Malhotra, Wendell Rodricks, Sandeep Kosla etc. and also launch special collection for all the segment of clothing industry such as winter wear and summer wear collections which will b sold as very reasonable rate as all the middle class society have a desire to wear clothes which are designed by a professional.

4.Now for a hugh business there is always need of advertisement. If the business is big but is not recognize the sales wont reach to itz capability. So advertisement is a must for a company to survive. So advertisement will be majorly done


to boost the sale and make people aware of the brand and its product. The best way of branding is hugh events like sports events, fashion shows, film award ceremony etc. Investment in such events may not only brand the name but also may bring large amount of returns out of it .

5.A company’s goodwill is speaks about the company’s image in the market. So CSR is really important for a company. Investment in the values of our country is what we try to achieve. We believe in our ethics rather than profit. So in order to bring those values up we plan to invest in social events and college events.


WHY US? We offer the best prices in the entire

region.

We produce eco friendly clothes.

We have a track record of excellent performance.

We are quality conscious.

We offer best after sales services to our customers.

We are not likely to out price ourselves in at least the next two decades.


MESSAGEYes,

We love the world!

That’s why we take care of the environment

And the farmers

And the workers

Now that you know the people behind the production of your clothes, Us..

Now you can look good and feel good

At the same time without the world there would be no clothes and fashion for that matter.

We support environment, do you?


REFERENCES

http://www.google.co.in/images/ spinning+wheel

http://www.apparelresources.com/

http://www.textileassociationindia.

http://www.google.co.in/imgres? q=product+life+cycle&um org

http:// www.indiangarmentexporters.com

http://www.google.co.in/imgres? q=bcg&um

http://www.cci.in/pdf/ surveys_reports/indian-textile-industry.pdf


sm spinning wheels

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