Operational Plan

The operation of the company includes various stages. Since we are a new company we
would be able to get buyers only by pitching our products to potential customers by
contacting them. First the customer will either choose a design from our design catalogue or
he will provide a design of his own. In case the customer has an idea about the design, our
design team will help them in conceptualising that idea. Depending upon the complexity of
the design and the size of the order the pricing of that particular order would be finalised and
an estimate will be given to the customer. Once the order is finalised the manufacturing
process will start. There are several stages involving the manufacturing process. Procurement
of raw material i.e. cloth, once the cloth is procured the manufacturer will start the process of
cutting, sewing, printing and dying. When the finished product is ready the quality is checked
and packaging is done.
Location:
Being a new company, the main focus would be on building a customer base and grow the
brand. Initially we will be outsourcing the manufacturing process. Among various locations
in India having apparel manufacturing hubs we have zeroed in on a location Tiruppur in
Tamil Nadu. Tiruppur has a huge apparel manufacturing industry. The fact that there are so
many manufacturers in Tiruppur and there is so much competition among them,
manufacturers are willing to provide apparels at prices which suit our business model.
According to Tiruppur District Collectorate there are 6250 units in Tiruppur engaged in
manufacturing of various types of apparel. The following table shows the number of apparel
units in Tiruppur1.

Operations

Number of
Units
Knitting Units
1500
Dyeing and Bleaching
700
Fabric Printing
500
Garment Making
2500
Embroidery
250
Other Ancillary Units
500
Compacting and Calendaring
300
Total
6250
Sparkle Innovations, Michael T-shirts and Vishnu Clothing Company are few among the
many garment manufacturers in Tiruppur which we shortlisted after doing due diligence of
the supplier base, the parameters being price and quality. These companies are leading
manufacturers of garments in Tiruppur. We will be getting into contracts with them making
them our exclusive vendors. This way we will have good relations with the companies and
1. TIRUPUR CLUSTER A SUCCESS STORY. (n.d.) Retrieved from
http://tiruppur.nic.in/textile.html

we will also be able to get the lowest quote from among the three companies. Once we get an
order we will place it in front of all the three vendors, whoever offers better price, less
delivery time and better quality of garments will get the order.
Personnel
The company will have a small team of 7. Avinash Vadapalli, Priyank Verma, Vipin Kumar,
Mehul Popat and Vivek Singh who are the partners in the company will look after sales,
marketing, accounts, operations and other day to day activities of the company. The company
will be employing two designers who will be looking after the designing part of the business.
Inventory
The company will keep zero inventories, which will help us in reducing the capital
investment. By having a policy of zero inventories the company will save on the cost of
renting or buying warehouses, their maintenance and cost of employing additional staff. Zero
inventory policy will also help the company in reducing the working capital. The company
will have a policy of collecting the finished and packed garments from the manufacturers and
delivering them directly to the customers.
Logistics
For moving our products from the point of collection i.e. factories of the manufacturer to the
point of delivery we have four ways of transportation as options, namely road transportation,
transportation by railways, transportation by air and waterways. Transportation using
waterways being time consuming was not considered. Railways was good and cheap option
for transporting the merchandise from factories to the customers but that will require a team
of employees who are present in every town where we have our customer base. This will
limit the areas where we will be able to deliver and hence slow down the growth of the
company. Thus transportation by rail was also not considered feasible. Transportation by road
will be our mode of delivery. For that we have shortlisted some logistics companies which
offer such end to end logistics services. The companies which we have shortlisted after going
through the services offered by various companies in the field are TVS logistics, DIESL, LCL
Logisticx and DHL. These logistics companies will pick up the packed product from the
garment factory and deliver it to the customers, thereby reducing our efforts and cost.
Credit Policy
We do not plan to sell out goods on credit. We will have a model in which the customer
makes an advance payment of 50% while placing the order. The rest of the payment can be
done at the time of delivery. As we have calculated 50 percent payment from the customer
will cover around 75% of the payment which the company will pay the garment manufacturer
while placing the order. We have searched and found that most of the logistics companies
take 3-4 days to deliver the products. We will try to get into an agreement with our vendor
which allows us to make 50% payment at the time of placing order and rest 4 days after the
date of dispatch. In this way we would be able to keep our working capital close to zero. The

company keeps inventory to a level close to zero and along with if it gets a credit period of 4
days from the manufacturer, it will be big boon for the company.
Shareholding in the company
All the partners Avinash Vadapalli, Priyank Verma, Vipin Kumar, Mehul Popat and Vivek
Singh will have an equal share in the company. Each partner will have 20% share in the
company.