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Textile Business Plan

Production of Gray Cloth, a raw
material for textile processing
factories in Tz, using local
processed cotton yarn in Tanzania.
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Ihembe Textile is considering providing an upscale full-product service to
textile companies. The firm is aimed at offering customers a state of art
technology in the provision of raw materials.
The firms¶ core business is to produce textile fabrics in form of Gray fabrics
which are raw materials for textile companies. Due to under capacity, the
company is underserving its customers who imports raw materials from
abroad due to unreliable availability domestically. This proves a tremendous
availability of customers for Ihembe Textiles products.
a

xegal status business
Formally registered

  number of Employees

This year (forecast):
30

Finance needed
Finance needed for fixed assets (buying
of machines, buildings, ...)
700,000
Finance needed for working capital
(salaries, stock, rental, leasing,
transport, ...)
0
Total finance needed (US$)
700,000
The Business
What is your product/service?
The business is currently producing gray cloth which is sold to as a raw
materiasl for other textile companies for manufacture of Kitenge, Kanga, bed
sheets, Boutique and other garments. Due to under capacity, the company is
serving only two customers namely African Pride Textiles (Gray Fabrics) and
Adabu Associates Co xtd ( Kikoy). The former¶s requirement is over 250,000
meters per day and the later 5000pcs per week. The market for Ihembe
Textile is still virgin as most of these fabrics are imported from China and
India.
What customer need/problem do your products/services satisfy?
The business is currently producing under capacity. Other textile companies
like KTM, Urafiki Textiles, xakhani and Nida Textiles are importing raw
materials from abroad due to unreliable availability domestically. This proves
a tremendous availability of customers for Ihembe Textiles products. Since
most of the gray fabric produced locally does not satisfy the market, textile
companies rely on imported yarn. Ihembe is focused to offer yarn at the
required quantity to these businesses.

How will you make the product/service?

Ihembe Textiles depends on raw polyester acrylic and cotton yarn from
suppliers. These materials are manufactured to finished products using the
weaving machines. The company has a total of 60 weaving machines which
will be running on a 12 hour shift basis with a capacity of 450 meters of Gray
fabrics per hour.
The production process is planned to run for 24 days per month and an
operational efficiency of 70% leaving a provision of change and machine
service.

Explain how you will sell your product/service (marketing strategy) and how
you will reach your customers (distribution strategy)?
Ihembe has been participating in Trade fairs through Small Industry
Development Organisation (SIDO). Together with participation in trade fairs
Ihembe will use of personal selling through the network of established small
medium enterprises and textile companies domestically. Other marketing
strategies will be though the use of Clusters, Tanzania Investment Centres,
Tanzania Chamber of Commerce and Industry. Use of calendars printed in