SMALL SCALE

INDUSTRY
MANUFACTURING
NATIONAL FLAGS
Product:-…………………………...National Flag.

Name of the Company:-……….…..Tricolor Enterprises

Registration No.:-………………….NCS007

Name of the Partners:-

• Mr. Nirav Shah
• Ms. Disha Dhar
• Ms. Yukti Mittal
• Mr. Amit Lahoti
• Ms. Karishma Ahuja
• Mr. Kaushal Rajpopat
• Ms. Anitya Bhat

Location of Manufacturing: - ……Ahmedabad.

Location of Business: -……….…..Kolkata.

 Acknowledgements

We would like to extend our sincere

thanks to Ms. Damayanti Salunkhe the
Assistant General Manager of the New India
Bank (Bandra Branch) for helping us
understand the entire process a businessman
goes through to set up a small-scale unit.

We would also like to thank our

Professor, Mr. Sameer Virani, without whom
the project wouldn’t have happened in the first
place write about
 • Idea Generation
The recent survey conducted by TOI revealed
that there was a tremendous growth and demand for the
national flag. Thus the promoter of the company Mr.
Nirav Shah took the initiative along with other members
to set up the business. Later they explored various aspects
as whether to manufacture national flags or tie up with
some other factory or to outsource.

• Market Survey
As per the survey, Kolkata has one of the highest
demands for national flags, since the willingness of the
people for buying the flags was high. Thus we analysed
the business scenario & prepared a SWOT analysis.
Strength
⇒The labour is cheaply available in Ahmedabad.
⇒The cloth and textile required is found at low cost.
⇒There is an existing demand.
⇒Being a small scale industry and also producing
national flags helps to attain various concessions and
subsidies.
⇒It is a homogeneous product.
Weakness
⇒There is lack of specialization.
⇒There is lack of modern technology in this field.
⇒Business is Highly labour oriented in manufacturing.
 ⇒It requires training of labours.
Opportunity
⇒Earlier the government had banned the use of national
flags by individuals but only the government
authorities had the right to use it. Now every individual
can use it provided they abide by the rules.
⇒There is an equal need and demand which is
conducive for the growth of the business
⇒There is seasonal demand and which can be converted
into the perennial demand.
⇒There is already an existing market which can be
further explored

Threats
⇒There are a large numbers of competitors
⇒The business is low profit margin oriented
⇒They are subjected to seasonal demand.

• Promoters and partners

Below given are the members and the amount that
they have invested.
− Mr. Nirav Shah 1,00,000
− Ms. Disha Dhar 30,000
− Ms. Yukti Mittal 20,000
− Mr. Amit Lahoti 55,000
− Ms. Karishma Ahuja 40,000
− Mr. Kaushal Rajpopat 25,000
− Ms. Anitya Bhat 30,000
Forms of ownership

The type of ownership is partnership and accordingly

registered as Tricolor enterprises partnership firm, under
the provisions of the Indian Partnership Act, 1932
Location of the business
Ahmedabad is one of the biggest textile markets in
India. Thus we have chosen Ahmedabad as the base for
production. Skilled tailors and labour are readily available
at a low cost there. The plant is located near love garden ,
ahmedabad.
Kolkata is our main target market for selling of the
product i.e. national flag. Though there are a large number
of competitors, the demand for the flags is equally high.
And as a result of which the competitors are not able to
meet the demand.
The market for Kolkata is located at Khadi bazaar,
Howrah.

Product selection
The product selected is available in various sizes, which are
as follows…
⇒5 feet * 10 feet
⇒6 feet * 12 feet
⇒7 feet * 14 feet
⇒8 feet * 16 feet
⇒10 feet * 20 feet
And the above-mentioned sizes are available in Khadi,
cotton, & silk.

Technical know how

The machinery required are drying machine, dying

machine, cutting machine.

Machinery Required

2 Dyeing machines
2 Drying machines
2 stamps with an image of Asoka Chakra imprinted on each
one of them.
We are provided with Government Subsidies for the
purchase of machinery.

Provisional registration

We, Tricolor enterprises have registered as per the rules

and regulations small scale industries act, 1965. Thus, are
entitled for the subsidies and tax exemption provided by the
act.

Availability of funds

After collecting the necessary funds, we would commence

our business.
Installation of the machinery

The installation of the necessary machinery like the drying

machine and dying etc are installed at the site i.e in
ahmedabad.

Insurance

The insurance of the labourers has been under taken by the

government. new India bank has recently branched out in
the insurance sector and hence have offered to insure our
assets.

Recruitment

The recruitment required is for twelve workers . the

specifications are as follows:
Five tailors were required for the bidding work.
Three men are required for the cutting of the cloth.
Four men are required for the drying purpose.
We would hire clearing and forwarding agents from
ahmedabad to kolkatta.

Raw materials
Dyes( Saffron, Blue & Green)
Cloth (Khadi, Silk, Cotton)

The procedure of making the national flags

A piece of cloth (of required cloth type and size) is

taken and put into the dying machine which is already made
ready for the process. There are partition scales on the
machine itself so there are 3 partitions with a dyer placed
above each of them. The left dyer is filled with a saffron
dye, the right with a green dye and the middle dyer is left
blank the cloth area is already white.

When the work on the Dying machine is done is

directly goes to the Drying machine where is dries upto
80% and that is dried out naturally.

After the cloth is completely dry it is carefully stamped

to imprint the Asoka Chakra on the middle-white part and
then dried naturally.

After the flag is completely dried, the tailors stitch the

edges of the flag to give it an even look.
The below given is the projection report for the year of
commencement of business.
 NO. PER
PARTICULARS OF UNITS UNIT EXPENSES

RAW MATERIALS
10,00
Khadi 0 18 18,000
Silk 2,000 20 40,000
Cotton 3,000 10 30,000

WAGES 1,00,000
INSTALLATION CHARGES 10,000

PRIME COST 1,98,000

FACTORY OVERHEADS
Machinery
13,00
Cutting m/c 2 0 26,000
13,00
Drying m/c 2 0 26,000
13,00
Dying m/c 2 0 26,000
Stamping m/c 2 1,000 2,000

FACTORY COST 2,78,000

PLANT 60,000
SUNDRY EXPENSE 9,250
COST OF PRODUCTION 3,47,250

SELLING AND DISTRIBUTION 34,625

COST OF SALES 3,81,875

 Loan Requirement Plan

Capital Investment 3,00,000

Cost of Sales 3,81,875

requirement for General Reserve 1,18,125 5,00,000

Short Fall / loan requirement 2,00,000

On the basis of the projection report and the above given

table, there is a requirement of a sum of Rs. 2,00,000/- for
which we have applied for a loan from NEW INDIA
BANK.

Terms of Repayment of Loan

As per the agreement between New India Bank & Tri-

color Ent. Have agreed on the terms that loan will be repaid
over a period of 5 years @ 9.5 %.
 Marketing
• The basic market research instrument was the survey
in the TOI that told us about a possible potential in this
field. All the partners then carried out research by
collecting primary data ourselves. We spoke to existing
manufacturers, locals etc.

• Though the market for our product is very huge, the

competition is quite tough. But flags are used by
everyone in the nation. Hence, like all of our
competitors we are using Mass Marketing.

• There is just one product line i.e. the flags with a fair
amount of variations in the product itself (as
mentioned earlier).

• The pricing method we have chosen is the cost plus

method where we plan to gradually increase the profit
margin.

• Our products will be sold both in Ahmedabad and

Kolkata. In Ahmedabad we will sell the flags outside
our manufacturing unit and in Kolkata we will sell in
Khadi Bazaar.

• We are using Quality Assurance as a key marketing

strategy as the raw materials we use are of a good
quality and the products are manufactured and stored
in a good environment.
 Conclusion
The capital invested is of RS. 4,00,000 and the total
cost of production is RS. 3,81,875 and thus resulting in a
profit of RS.18,125.

Since there is availability of funds and thus as a

company we do not need a loan from the bank.

Also in the following years the sales are expected to

grow by 10% every year.