This business plan proposes linking the CSR activities of textile industries with the Khadi industry and local microfinance institutions. It aims to revitalize the Khadi industry by improving product quality and variety, and ensuring sales through textile company partnerships. The plan outlines collaborating with NGOs and MFIs to provide training, loans and market access to artisans. Products would include modernized Khadi clothing sold through textile retailers. Initial funding would come from banks, with promotion handled through industry partners. The goal is to make Khadi a profitable, fashionable product that generates rural employment.

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Business Plan
Tuhin Sarkar, Kumar Rajan & Anupam Biswal
PRAYAS
Xavier Institute Of Social Service
Dr. Camil Bulke Path
Ranchi - 834001
+91-9006813662
anupambiswal2001@gmail.com

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Table of Contents
Table of Contents................................................................................................................................................................2
Executive Summary.............................................................................................................................................................3
PRAYAS. .............................................................................................................................................................................5
Products and Services.........................................................................................................................................................9
Marketing Plan...................................................................................................................................................................10

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Executive Summary
The PRAYAS is certainly a new face lift given to the age old Ghandhian idea of
‘Swadeshi’.Through this we intend to fuse the Corporate Social Responsibility with the core
strategy of the company by keeping in mind the civil society. With the advent of Dr. C.K
Pralhad’s idea of consumers at the ‘bottom of pyramid’ and eradicating poverty through
profit,We hereby stand in favour of putting the last first and paving a way for the long forgotten
‘Khadi’ industry.
Khadi-In the present context
In today’s context the globalized generation has literally forgotten about ‘khadi’. A cascading
effect of this change has brought about the change even in the dressing style of the older
generation; which hitherto has always been seen as the main proponent of this fabric. The only
people with whom this fabric is associated today are the politicians, most of whom see more as a
ideological baggage that is a compulsion.
The two main reasons for this situation are;
1. Lack of adaptability: Khadi clothes are generally hard to maintain, however newer
variants of this fabric not only is more fine and hence comfortable but relatively easy to
maintain.
2. Limited range which in turn has limited its appeal to just the older generation.

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ACTIVITIES
The following are the major activities;
-
To involve the Microfinance institutions and NGO’s in providing the requisite resources
like training, loans etc for capacity building.
-
Textile firms can closely work with Microfinance institutions and NGO’s and provide the
necessary resources to the weaver’s and farmers.
-
The product offering needs to be a varied and contemporary with variety of garments like
cargos, kurtas etc.
-
The textile companies can assure, at least initially, to take up the entire produce produced
at market rate (for eg. In case of ITC’s e-choupal)
-
Promoting Khadi extensively in own organisation. (For eg. Uniforms given to employees
could be procured from these producers)
-
Proper promoting and branding of this product by engaging icons like Kiran Bedi, Mohd.
Yunus, Rahul Bose etc

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PRAYAS.
The PRAYAS is certainly a new face lift given to the age old Ghandhian idea of ‘Swadeshi’. Through
this we intend to fuse the Corporate Social Responsibility with the core strategy of the company by
keeping in mind the civil society. With the advent of Dr. C.K Pralhad’s idea of consumers at the
‘bottom of the pyramid’ and eradicating poverty through profit we hereby stand in favor of putting
the last first and paving a way for the long forgotten ‘Khadi’ industry.
We hereby propose to link the CSR of any textile industry (feasible) with its core strategies by
introducing the Khadi industry in its activities. We will liaise with the NGOs/ Microfinance (local)
to provide financial support along with the necessary training to the artisans. The training would be
under the oversight of the CSR activities of the company/ industry. Through this we will be
acting as the service provider by providing our intellectual ideas to link the dying Khadi
industry with the very vibrant and discussed CSR and the fast growing Microfinance
working at its backdrop. This business would be driven by the CSR and majorly supported
by the Microfinance.
Mission Statement:
Improve the status of Khadi and increase its overall demand in order to carve a niche in the
textile industry along with the upliftment of the rural artisans.
Company Goals and Objectives:
To help position Khadi garments as garments of choice across various age-groups and to
satisfy the growing demand for Khadi. According to a recent survey there is a strong demand for
Khadi products in both the domestic and international market. Therefore, alleviating this
industry to the next level- by increasing its supply as per the new demands, and catering for
the needs of both national and international markets.
Business Philosophy:
The most important consideration in our business plan is that we are successfully able to sell our
idea regarding the possible venture in Khadi, i.e., to produce the quality products which in turn
would be collected by the textile industry from the Khadi Bhandars. This would further require the
marketing and distribution in the markets. The finished products made should be of the required
quality standards; further ensuring that the entire products to be bought by the industry in order to

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sustain the entire model. The Microfinance plays a crucial role by providing the initial financial
support and also providing the necessary training in coherence with the CSR of the industry.
The basic idea is to offer a better and a varied product offering that can fulfill the requirements of
the age-group of 20 years- 40 years and thus be in a position to be “the garment of choice”. Our
proposal is to offer the target audience a wider and better variety of clothes by adapting
contemporary designs and making the garment more comfortable. The Fab-India model can be
emulated and direct outlets can be opened to cater to the tier-II and Tier –III cities in the later stage .
The industry to be ventured is certainly not new nor is the product. As this entire idea is linked to
three major fields of works, we would be related to all of them. These are as follows:
KHADI INDUSTRY: this industry is now long forgotten and only seen in few election campaigns
else in national/international ramps (fashion). Clearly it stands to get the required attention as more
and more demands are being felt for the Khadi, just that we don’t have the right service provider.
We can easily revamp it to the next level and it can address the growing fashion demands of the
youth, comfort statements of the middle aged and of course an always dear product for the aged
ones. We can thus be a pioneer in getting this notion started and thus take the first movers
advantage.
CSR: this concept is often criticized for its approach which is seen to be an eye wash. This is a
relatively new concept and here we are foreseeing a new style of business ethics through linking the
CSR with the company’s core competency and eradicating poverty through profits. Certainly there
lies wider scopes and future for CSR. In short term more and more companies to get involved in
these kinds of operations to work in the direction of rural marketing and development activities. In
the long term we foresee this to be a tool to address various problems of the nation as a whole.
MICROFINANCE: it’s a totally virgin industry just occupied by only 5% of the entire available
market. Its main strategy is to work on profits by financing the non bankable people and make them
free of the clutches of poverty. Its growth avenues lie in its successful outreach, making products
and services as per the demand (flexible) and the best possible recovery. Many more such
organizations would be soon seen in the Indian Rural Market and the best use of them can be made
by showcasing the potential customers and areas of development.
In order to keep our services workable and sustainable, we will be continuously providing the new
avenues of work for the Microfinance, linking more and more textile industries with the Khadi.

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SWOT
Strengths
Weaknesses
•
Eco-Friendly
•
Lack Of Appreciation
•
Reflects Indian Culture
•
Labor-Intensive
•
Versatility of Khadi
•
Lack of infrastructure
•
Tax Exemptions
•
•
Lack of training in business
methodologies
Economic Growth
•
•
Lack of awareness
Low cost
•
Employment generation
•
Fashion
Opportunities
Threats
•
Potential for exports
•
Competition
•
Emerging trend
•
Survival in fast-growing technology
•
Capturing an untapped markets
•
Legislative impact
•
Generation of employment
•
Growing consumer preference
One of the important strengths inherent in ‘Khadi’ is that it can be worn during all seasons as it stays warm
during the winters and is equally comfortable during the summers. It provides more desired comfort with the
quality rising. It will provide more employment opportunities in the rural front, thus a economic growth in
the small scale industry sector. This addresses the burning topic of GREEN ENVIRONMENT at the global
front. This will be a fashion revolution and a boon to young generation and pleasant surprise to the old at a
very affordable cost.
One way of doing away with the coarseness of the cloth and give it a more appealing look can be by mixing
varying degrees of silk at the making level by providing proper skills to the artisans and bringing in the
fashion statements from the students and alumni of NIFT (National Institute of Fashion Technology: as

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interns and fests). The Microfinance will cater for the major financing for the machine- tools, training and
making of better quality Khadi. The marketing part will be covered initially by the textile industry itself along
with its major line of products. The CSR will also focus on the advocacy part including the training and
making policies for the use of the finished products, also in its own industry employees.
The major opportunity which lies within the perceived idea is that we have better market at low cost and the
best part is that it’s novice. As we can also plan in future for the Public Private Partnership, it can be tax
exempted. There lie immense foreign trade opportunities as per the ever growing international demands.
The immediate competition would be with the fashionable- existent apparel industry. The first mover
advantage and the low cost, fashionable, and all user products will mitigate major challenges imposed. The
government’s interest in Khadi, Rural and Handloom (Small Scale) will be aiding to keep up with the
legislative issues.
The dynamic and fast developing service industry along with the three major sectors (previously discussed)
provides numerous avenues of business. But, all these being already existent and functional, we just need to
congregate all of these to make a profitable venture. We personally having the management skills in all the
core departments of marketing, development and human resourcing should make a perfect match for the
outset.
Legal form of ownership
As this will be a service venture, we would start with the Sole proprietor form of ownership i.e., we will be
the intellectual service provider for all the three sectors (CSR- textile, Khadi and Microfinance- Joint Liability
Group model) and getting them for a common cause. In future as we foresee this venture will grow rapidly,
we propose to make direct outlets through the Franchising model.

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Products and Services
The services provided by us would be in the form of ideas, liaison, and proper marketing through the textiles.
We would harp on the fact that the success of our venture would lie on the quality products and their sale
ability. The products would contain apparels (Indian formals/ traditional, casuals, etc.) in the form of Kurtas,
Shalwars Suit, shirts, trousers, jackets, etc.
Creating a consistent pull for the product by tying up with the various retail and fashion houses would be
necessary. Eg- Megamart is an Arvind Mills initiative with pan-India presence. As Arvind Mills is a mill it can
be involved in the above-mentioned way along with providing the required shelf-space to these products.
The charges for the services provided by us would be based on the quality services provided to the CSR
(textile) and the Microfinance for providing each of them the underlying scope to better their business
profitably. These would be basically on the line of existing consultancy market.

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Marketing Plan
Market research
No matter how good your product and your service, the venture cannot succeed without effective marketing.
And this begins with careful, systematic research. It is very dangerous to assume that we already know about
our intended market. We need to do market research to make sure we’re on track.
As this business model is all about the present textile industry (Khadi Related), we would make efforts to find
the existing demand and provided supply. Also the quality of goods present, along with the detailed analysis
of the interests of the CSR and Microfinance.
Market research
There are two kinds of market research: primary and secondary.
A present scenario Secondary research is carried out through the published information such as industry
profiles, trade journals, newspapers, magazines, census data, and demographic profiles. This type of
information is available in public libraries, industry associations, chambers of commerce, from the present
microfinance industry, and from government agencies. E.g. KVIC portals, Microfinance.com, Ethical
Performance.com, documentaries of C K Prahalad, Rural Journals like Yojana, Kurukshetra, Karmayog.
[Ref: www.fibre2fashion.com, www.kvic.org.in, www.articlebase.com. etc.]
Primary research means gathering our own data. For example, we could do our own traffic count at a
proposed location, use the yellow pages to identify competitors, and do surveys or focus-group interviews to
learn about consumer preferences. Professional market research can be very costly, but there are many books
that show small business owners how to do effective research themselves.
The surveys can be carried out on different stakeholders like the Khadi Bhandars, Microfinance institute
(present), customer surveys, CSR team (management), fashion designers and the artisans.
Economics
The capital investment in this venture would be basically with the infrastructure for building the office, along
with the charges for legal entity. The initial funding for meeting these can be through procurement of loans
from the banks (as appropriate). The personal systems can be used for the initial computing work.

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The exclusive database of the customers would be maintained along with web blog provision for different
marketing ideas, advertisement of new products, online complaints, etc. for the other customers we would
provide with book post pamphlets (no charges – also for post) to write their reviews, suggestions and
complaints.
Promotion
The initial promotion will be the baby of the textile industry and will be done as a part of their usual
promotion strategy. Basic advertisements through low cost media (print and visual), radio propaganda, CSR
advocacy, Government’s promotion of new Khadi etc.
Also as the shelves will be provided next to the existing apparel selling counters, the very visibility will always
be there.
Promotional Budget
The budget will be covered as per the textile industry’s strategies and not much needed to be allotted
separately.
Before startup- About 1% more than the usual expenditure on promotions shall be required.
Ongoing- Will become negligible and will only be required on launch of new products.
Proposed Location
The proposed location initially will be the Tier II and Tier III cities and towns in/ around the textile industry.
This can be extended depending on the demands and feasibility.
Distribution Channels
This will be same as that of the textile industry. Future needs can be catered with new franchise.