An Assignment On BUSINESS MODULE

Submitted to;

Submitted by;

Dr. D.K. Garg Chairman IIM, Greater Noida MEER LEATHER

Ritu Raj BM-15027 (A) Marketing

Name of business
Meer Leather (Reflection of Personality) Email [email protected] Phone No 011-42365782 Business address 10/2 JaamNagar Peeragari Colony New Delhi, India Vision Become the Indias largest exporter of leather garments by 2020. Mission Provide customers satisfaction through quality products Core values Respect Honesty Equality

Nature of business It is manufacturing business of leather garments including jacket, ladies hand bags, key chain, shoes, skirts, belts and wallet. We shall purchase finished leather from different suppliers then

make different products mentioned above according to the customers demand. At early stage of business we will focus on jacket, skirts and handbags, with the passage of time we will expand our product line. In other words we have defined wallet, belts and shoes as expansion of business. Identification of Capacity First of all we have decided our capacity of units per month that is 350 pieces.

Industry analysis
There are about 350 leather garment manufacturing units in the organized sector in the country. Total annual installed capacity of these units is estimated to be 15 Million leather garments (of all kinds) per annum. Business trend/ future need Leather product is a fashion symbol for teenager and youth generation in the western world like UAS, Canada, Germany, France and Italy. Now in these days every business is facing decline due to the global crisis but in future it is predicted that the winter season period is increasing as compare to the summer. Leather products are treated as fashion symbol and to protect the bodies against cold. So we have forecast that the future need/trend is bright due to the above two reasons. Total Market Size 95% of the leather garments manufactured in the country are targeted towards exports. In 2009, an estimated 8 million pieces of leather garments were exported from the country. Local consumption of leather garments is minimal and is estimated to be less than 90,000 pieces per annum. Target Customers Export market is the primary market for a leather garment-manufacturing unit. In the export market, major customers include chain stores and major garment brands in Europe and USA. Major customers of India leather garments are Germany, USA, United Kingdom, and UAE & France. The business is done either directly to the buyers or through middlemen.

Competitors analysis It is very important to analyze the competition environment of the industry in order to compete successfully. It is good for strategy making to identify the strengths and weakness of competitors and try to differentiate itself from them. Our main focus to export our garments (goods) in western world, Indian garments products are our rivals because they have high market share in leather garments. Indian designers are innovator in garments. In our business customers are the main innovators and designer of the products, they can customize their products through our website and can send their order along their own designs. We shall also target the South African market where quality is not issue because they are price conscious. It means that we are dealing two kind of customers as price and quality conscious. Direct competitors It includes the following local and international competitors. In Sahiwal there are many small and larger producers are competing our products as Mirza International Ltd.

The rexion sheet makers are also main competitors in the national market and international market.

Description of Venture
Product We are dealing in leather garments including Leather jacket Ladies handbags Leather shoes Leather belts Leather skirts

Leather wallet Leather gloves

Mostly company will focus on global market including Canada, USA, Germany, France, Italy and UK. Local demand is very small as compare to international market but the leather shoes demand is high. Service Company will give online sale services for its customers to access the global market. Customers can order through company website for customize their products. We are also giving shipping facility or service for the delivery of goods on behalf of customers.

Production Plan
Manufacturing process After receiving the finished leather from the supplier the following procedure is adopt by the organization. Matching Leather made from different skin/hides inherently varies in grain style for each other. In the matching process the grain and color of leather are matched on per garments requirement. This is most critical part in the whole process and requires expertise of the matcher. Cutting After the matching, the cutter cuts different panels of a jacket with the help of the design patterns and knives. The list of panels includes Front, Back, Collar, Sleeves, and Cuff etc. Generally, design patterns made of cardboard are used in cutting process. In case single type/design garments are to be manufactured in large quantities, then press machines with metal dyes can also be used. Average wastage of leather in cutting process ranges between 15 to 25%. In India, a cutter cuts 15 to 20 jackets per day per shift (shift 8 hours). Assembly

After the cutting process, fusing is added to different panels of the garment, as per design requirement. Fusing machines or irons are used for this purpose. Generally, half fusing is done on the end area where stitching is to done and full fusing is applied on front & back panel for providing garment outlook. Fusing reduces stretch ability and adds stiffness to the leather making it convenient for the stitchers to stitch. In this process, accessories are added and rolled together for sending to the stitching section. Major accessories include lining (Cotton, Viscose, and Satin), zippers (Metal, Nylon), padding, wadding, shoulder pads, buckles, buttons, labels and thread. Stitching Next to assembly is the stitching of different panels of the garments by using sewing machines. Two stitching methods, depending upon the quantity produced, are currently being employed in the industry. 1. One stitcher one garment 2. Chain process (Assembly Line) In the first method, one stitcher stitches together all the panels of the garment. All the allied processes (folding etc.) required during sticthing are also performed by one person. Depending upon the garment type & size, on an average, output per stitcher per shift is 1 to 2 garments. The second method is more efficient and average productivity level per stitcher in some cases rises between 4-8 garments per day. In the chain process, an assembly line is made in which each stitcher is assigned one specific process out of the total processes required for garment manufacturing. Ultimately, the stitcher gets specialized by constantly performing one task resulting in production efficiencies and better quality. In each assembly line, there are seven stitchers who perform the following sub-processes: Folding Lining Stitching Sleeves Back

 Finishing

Front Pocket Panel Joining

Finishing is the last process in leather garments manufacturing. In the finishing process, buttons/snaps are attached to the garment, extra thread and fibers are clipped off. After this process garments passes through touching process, in which chipped off and out of matching leather grains are treated to give the garment a good look. The garment then moves to ironing stage after which hangtags, price tickets, etc are attached. The final stage is the quality check by the quality inspectors. Their job is to check the conformance of the manufactured garment to the customers specifications. The quality check is followed by the final packing of the garment. Physical plant In our physical plant only one thing is included Building of hostel but this building is also rented. Company operations require a building having 6 to 7 rooms. Details is given below Raw Materials Store Cutting and matching room Stitching room Fusing or finishing room Packing room Company office