VIRASAT

-BY-
BHASKARA SHARMA-315
GARGI KULKARNI-335
SNEHAL SINGH- 373
DIVYA VERMA-378
1. INTRODUCTION

A. NAME OF THE BUSINESS- VIRASAT

B. NAME OF THE PROMOTERS- BHASKARA, GARGI, SNEHAL & DIVYA
C. NATURE OF THE BUSINESS- SERVICE
D. CAPITAL INVESTMENTS- 30 Lakhs
2. EXECUTIVE SUMMARY
A. What is the business concept or model?
• The current business is of providing a platform to the local and poor artists and craftsman to
sell their products.
B. How is this business concept or model unique?
• Online operation which requires less capital investment and provides direct delivery to the end
consumer eliminating the middlemen.
C. Who are the individuals starting this business?
• Talented Law students who have graduated.
D. How will they make money and how much?
• By selling and promoting the products on the platform created.
3. BUSINESS DESCRIPTION

A. General description of the business

B. Industry Background
C. Goals and potential of business and milestones (if any)
D. Uniqueness of Product or Service
E. Future outlook and Trends
A. GENERAL DESCRIPTION

• The business is all about providing an online platform for needy and poor craftsmen to showcase their
art and earn money.
• It is observed that middlemen exploit these craftsmen to an extent where they cannot sell their
products individually.
• This platform will help them to register these craftsman and sell their product under with a joint name
of ‘VIRASAT’.
B. INDUSTRY BACKGROUND

• In the craft industry having a online portal is a common thing. The best examples of such portals are
fabindia.com, craftsvilla.com. But the problem with these websites is that they hide the identity of the
artist who has made the product.
• But, VIRASAT is a platform through which the identity of the artists and the craftsmen is not lost. It is
enhanced with the name of the website.
C. GOALS AND POTENTIAL OF BUSINESS AND
MILESTONES

• Largest e-commerce operators in specific products with ethnicity, GI and antiques.

• Earn profit and revenue.
• Preserve the identity of ethnic goods.
• Provide employment to the low-income artists and save them from exploitation.
D. UNIQUENESS OF SERVICE

• Creating a platform with regard to a particular product which is region specific but provide a portal for
the customers to choose from a myriad array of options in the field of handicraft which may be used in
the form of gifts, clothes, decorating items, home décor or any form of craft that can be promoted
across regions
• Connecting State’s ethnicity to people as we provide more employment and jobs to the socially
exploited and downtrodden classes of society, artists and craftsmen.
• We employ people who are skilled and inherit the skill of creating a product from their ancestor and the
generations over a period of time
• making the final customers as our target group but also the vendors and manufacturers of our product.
• Collaborating with government to encourage initiatives, schemes and incentives to provide subsidies to
the labour community across the nation.
E. FUTURE OUTLOOK AND TRENDS

• Craze towards ethnicity

• Authentic state products
• Genuine product
• Indo-western combination
• Emotional touch
4. DESCRIPTION OF THE VENTURE- A. OFFICE
EQUIPMENT AND PERSONNEL

• Initially no requirement for physical office

• Everything will be dealt through online mode
• Basic requirement of few computers with strong software and internet facility is required
B. BACKGROUND OF ENTREPRENEURS

• Graduates with honours degree in law and business

• Having knowledge of latest technology in graphics and other necessary area
• Having knowledge of related business laws
C. SERVICE

• VIRASAT is an online website bridging the gap between the vendors and traditionally routed customers
to promote the ethnicity and interaction between the north – south, east-west and cross generations.
The speciality of the platform is the skill used by the labourers who are situated in the haats of the
country, the skill is unique as it is passed from generation to generation. The investment made in the
business is low and the labour available is cheap. VIRASAT also creates a link between the government
and the labourers as the workers shall be identified through this platform where the government will
identify them and provide initiatives, incentives, schemes and subsidies that will help the community
grow. The working of VIRASAT is simple in nature. VIRASAT shall market its platform in various rural and
production hubs where the vendors can approach the website to sell their product for which VIRASAT
will charge a small commission in return and the order shall be placed with them which shall reach the
customer through the speediest courier service to the place of residence of the customer.
5. MARKETING- A. RESEARCH AND ANALYSIS

I. Target Market
We are targeting craftsmen, artisans, smith(s) engaged in the making of the specific products which have obtained
a Geographical Indication and the consumers who buy such products as our customers. In addition, craftsmen and
consumers are the primary end of our business as we are dedicated to act as a platform for trade between these
craftsmen and consumers by supplying different products which have Geographical Indication as well as the
products which are losing its ethnicity by providing various incentives to the craftsmen and artisans and the
products are delivered at the doorstep of the consumer at discounted rate through various postal and courier
services. ‘VIRASAT’ takes the advantage of the low- level demand for such products and is engaged in providing
service through different formats, which are uniquely positioned to fulfil and cater the desires of different
segments of the society.
II. MARKET SIZE AND TRENDS

• Propelled by rising smartphone penetration, the launch of the 4G networks and increasing consumer wealth,
the E-Commerce market in India is expected to have a significant growth. Online retail sales in India are also
expected to have a growth rate reaching up to INR 2 Crores. In specific, products which are very rarely available
like the products which have a Geographical Indication, Antique products will have a huge demand in the
market leading to an unexpected growth rate.
III. COMPETITION

• VIRASAT would commence its operations from March, 2019. Within 5 years of VIRASAT’s existence in the Indian
e-Commerce market, it will become the largest e-Commerce service provider leaving Amazon, Flipkart behind.
The major issue whether VIRASAT would be successful in retaining old customers and attracting new customers
keeping in mind the e-Commerce operators would later become a threat to VIRASAT as the products are very
rare or specific and they cannot be modified as they’ll lose their ethnicity and the Geographical Indication.
IV. Estimated Market share

• At the initial stage, it is difficult to estimate the market share of VIRASAT. But after a year of
commencement VIRASAT would gather around 20-30% of market share.
B. MARKETING PLAN OR STRATEGY

• Sales and distribution- Sales would take place through the online portal called ‘VIRASAT’.
• Pricing- The price of the products would primarily be divided 40:30:30 ratio. 40% would
be the manufacturer’s part. And rest 60% would be divided equally among VIRASAT and
the delivery network.
• Advertising and Promotion- 1. media platforms.
2. Social networking promotion
3. Banners in metropolitan cities
B. MARKETING STRATEGY
Solitude leads to loneliness, but our service is here to bridge the gap
A. DEMOGRAPHICS:
• Craftsmen
• Consumers
• All age groups
• Any income group of people
• All Ethnic groups.
B. POSITIONING STRATEGY-Leading e-Commerce provider in such specific products.
C. UNIQUESELLINGPROPOSITION-Connecting State’s ethnicity to people.
6. OPERATIONS

A. Identify location advantages

Our business is based on an online platform, it does not have an offline store, and therefore the advantage
is that we can reach all across the country.
B. Special operation procedures
VIRASAT will be tying up with multiple courier service companies that will be supplying all the products
across India, and at later stage we will have our own courier service for faster delivery.
6. OPERATIONS

C. Personnel needs and users

At the very beginning we will be needing a manpower of 10 employees; amongst them the work will be
diversified.
D. Proximity
We will be providing new machineries and new techniques and will be providing training so that efficiency
can be increased.
E. Technology Utilization
We will have a setup of multiple servers and computer systems that will be hosting our websites.
7. MANAGEMENT/ORGANISATIONAL PLAN

A. Management team-key personnel

Among the 10 employee, 3 will be taking care of operations, 1 will be taking the control of shipping, 3 will
be employed in in all the technicalities taking care of networking and servers, and the remaining 3 will be
will see the business all over, and will also be handling the grievances of customers as well as our suppliers.
7. MANAGEMENT/ORGANISATIONAL PLAN

B. Legal Structure, Employment agreements, Ownership

It will be a yearly contract with all the suppliers, i.e. our handicraft people, and the courier company,
during the period we will be training them and the profit sharing ratio will be 3:3:4 with 30% going to the
courier company and the other 30% to the suppliers and 40% to VIRASAT. The ownership will be
completely with the business owners and we just are there to give them the recognition.
7. MANAGEMENT/ORGANISATIONAL PLAN

C. Board of Directors, Advisors, Consultants

The person incorporating the company, i.e., all four of us will be the directors, with 2 advisors and
consultants will be appointed via interview on the basis of specialisation.
8. FINANCIAL

• FINANCIAL DETAILS INCLUDING PROFIT & LOSS ACCOUNT AND BALANCE SHEET ARE ATTACHED IN THE
APPENDIX.
9. CRITICAL RISKS

A. Potential Problems
In the initial years, our suppliers will be very hesitant to sell their products, because online platform will be
something very new for them and they will be dubious to sell it online because of cyber-attacks. So it will
be the duty of VIRASAT to convince them under the government of India initiative i.e., digital India, and to
make them aware of Make in India programme and give them a recognition.
B. OBSTACLES AND RISKS

Most of the works are very precise like Zardosi, embroidery, patchwork, etc. which is mostly done by
older generation of people, and convincing them to carry the legacy forward will be biggest obstacle we
have to face. Moreover, the biggest risk will be of losing the track the order of the products that people
has placed.
C. EVALUATE WEAKNESS OF BUSINESS

VIRASAT has been made with such an idea that its foundation is very strong and has no lacunae, but
since every business has its strengths and weakness, VIRASAT weakness is that it is solely dependent on
the craftsmen, artisans, artists, etc., if they break a tie-up with us we will suffer a huge loss and
ultimately we will not be able to cater the demands of our customers and its repercussions will be very
bad for our balance sheet.
D. NEW TECHNOLOGIES

New Technology will obviously be a hindrance for the craftsmen since they are used to their old
techniques, and are efficient in that, but for VIRASAT this will not be a great obstacle since, with the
machinery we will also be training them and guiding them for few weeks so that they earn mastery in
them.
E. ALTERNATIVE COURSE OF ACTION

Since, the first day of incorporation our plan is to do business all over India, but in case if for the first five
years the orders are not up to the expectation, then we will target that state from where we are getting
max. orders and then we will also plan of setting-up of offline stores.
10. MILESTONE SCHEDULE

A. Timing and Objectives

• Website will be built by 2nd month
Objectives- 1. To unite the traders selling separately.
2. To train them and make more efficient.
3. To deliver various diversified products should reach at every doorstep.

B. Deadlines and milestones

• All the objectives, goals and profits expected will be achieved and earned by the end of 5th year from
the incorporation of VIRASAT. The projected statements are also attached further.
SWOT ANALYSIS- STRENGTHS

• Large, diversified and potential market

• There is large product variety and range is available because of diversified culture
• Supportive retail infrastructure
• Cheap labour rates that result to competitive market
• Need low capital investment
• Low barriers of new entry
• Easy creation and development of production centres
• Industry provides potential sources of employment
• It is potential source of foreign revenue because of higher export
SWOT ANALYSIS- WEAKNESSES

• Lack of infrastructure and communication facilities.

• Unawareness about international requirements and market.
• Lack of co-ordination between government bodies and private players.
• Inadequate information of new technology.
• Inadequate information of current market trends.
• Less interest of young people in craft industry.
• Lack of skilled labor.
• Still confined to rural areas and small cities and untapped market.
• Lack of promotion of products.
SWOT ANALYSIS- OPPORTUNITIES

• Rising demand for handicraft products in developed countries such as USA, Canada, Britain, France,
Germany, Italy etc.
• Developing fashion industry requires handicrafts products.
• Development of domestic and international tourism sector.
• E-Commerce and Internet are emerged as promissory distribution channels to market and sell the craft
products.
• No major competitor.
SWOT ANALYSIS- THREATS

• Competition in domestic market.

• Balance between high demand and supply.
• Quality products produced by competing countries like China, South Africa.
• Better Trade terms offered by competing countries.
• Increased and better technological support and R&D facility in competing countries.
• Machine made Chinese handicrafts which are produced in bulk
APPENDIX

• PROFIT AND LOSS A/c

• CASH FLOW STATEMENT
• BALANCE SHEET
• AGREEMENT
YEARS 1 2 3 4 5

Sales 1,80,00,000 2,00,00,000 2,50,00,000 3,00,00,000 3,25,00,000

Other incomes 5,00,000 7,00,000 10,00,000 12,00,000 15,00,000

Total cost of sales 1,85,00,000 2,07,00,000 2,60,00,000 3,12,00,000 3,40,00,000

Expenses

Payroll - - - - -

Sales and marketing and other expenses - - - - -

Depreciation - - - - -

Research and development - - - -

Utilities - - - - -

Insurance - - - - -

Rent - - - - -

Other operating expenses - - - - -

Total Operating Expenses 60,00,000 80,00,000 90,00,000 1,000,000 1,000,000

Profit before interest and taxes 1,25,00,000 1,27,00,000 1,80,00,000 2,12,00,000 2,40,00,000

EBITA - - - - -

Interest expenses - - - - -

EBITA - - - - -

Interest Expenses - - - - -

Taxes incurred 40,00,000 40,00,000 40,00,000 40,00,000 40,00,000

Net Profit 85,00,000 87,00,000 1,40,00,000 1,72,00,000 2,00,00,000

Year 1 2 3 4 5

Balance at the beginning of the year

30,00,000 28,00,000 26,00,000 24,00,000 22,00,000

Current activities cash flow
- - - - -
Investment activities cash flow
- - - - -

Financial activities cash flow - - - - -

Cash balance at the close of the accounting period 28,00,000 26,00,000 24,00,000 22,00,000 20,00,000
ASSETS

Years 1 2 3 4 5

I. NON-CURRENT ASSETS 21,00,000 20,00,000 25,00,000 24,00,000 23,00,000

II. CURRENT ASSETS 19,00,000 25,00,000 30,00,000 35,00,000 40,00,000

RESULT
- - - - -
LIABILITIES

III. CAPITAL AND RESERVES

Authorized Capital 30,00,000 30,00,000 30,00,000 30,00,000 30,00,000

Surplus 85,00,000 87,00,000 1,40,00,000 1,72,00,000 2,00,00,000

Capital reserve 10,00,000 10,00,000 5,00,000 5,00,000 5,00,000

IV. LONG-TERM LIABILITIES - - - - -

V. SHORT-TERM LIABILITIES - - - - -

RESULT - - - - -
GLIMPSE OF THE PRODUCTS ON THE WEBSITE