CLAY SMITH
Eco-Green Cookware
Made by-
Nikhil Gulati 2016/2596
Riya jamwal 2016/2388
Aastha Aneja 2016/2240
VISION
At Clay smith, our vision is to bring the best of clay in front of the entire world. We want to
highlight all the amazing benefits of using clay products. Not only do you get much more
tasty and nutritious food but clay also adds more health points to the cooked food. Plates
smith also abides by and support various government schemes and campaign like Clean
India, Make in India, Rural Employment Scheme etc.
We intend to be admired for our people, partners, and products globally. Clay smith targets
to launch a customer friendly environment and symbolize our culture worldwide.
We aim to represent India at the international level. Our mission is to bring forth our precious
knowledge of science and cooking and introduce it in the eastern countries and around
the globe. We target to set new standards and plant ideas to discover opportunities
overseas. Plates smith aims to set presence in more than 50 countries in the upcoming
years.
Feasiblity Study
TECHNICAL FEASIBLITY
We do not have a particular technology instead we have skilled labour and easily available
moulds. We have expertise in choosing raw material and the machinery required for heating
the clay moulds is easily available in the market
So technically, our idea is 100% feasible.
LEGAL FEASIBLITY
Basically, there is no legal obligation to make a product, we have ownership rights of our own
land.
We also do not have any kind of intellectual property
The Government does not have any obligation in making of the product
Feasiblity Study
Financial Feasiblity
With The availability of cheap raw material, less fixed assets. The overall cost of
making the product is completely Feasible.
FIXD COSTS Variable cost
Cost of Land = Rs 2000000 electricity cost= 10000 to 20000per
Machinery= Rs500000 month
Moulds = Rs50000
Labour= on contract business
Marketing Expense- 5000 per month
EXECUTIVE SUMMARY
Description
• The Problem we want to solve through this venture is need to create a
healthy alternative for people to cook food. We all have understood
the growing importance of using organic food products but we also
have to take care of how to make those food.
• By this business plan, we want to bring back the traditional Earthen
Utensils with a lot of innovation in the market
• With the growing importance of healthy and nutrition in the new world,
we want to provide a complete natural and healthy cooking solution
which is free from harmful substances and also has authentic rich taste
of traditional clay utensils.
MARKET SEGMENTATION
& TARGET MARKET
TARGET MARKET
Our main target market will be
Urban households in the rich- middle class and high class category.
We will be focusing on people who are more inclined towards health and fitness.
Women and especially housewives who are more inclined towards cooking..
COMPETITIVE ADVANTAGE
Our main focus is on the idea that when it comes to cooking whole, nutritious meals,
people know that every ingredient counts. They read labels, buy organic products. they
think about everything to put into a recipe. But have anyone ever considered what
they’re putting it in?
The main pin point in our product is that it provides an healthy alternative from the basic
steel and aluminium cook wares. Our product is totally natural, eco friendly, and does not
contains any harmful chemicals like lead, cadmium which usually leaches in our food
when we cook in normal cook wares .
Rising trend of health consciousness among people will increase the demand of our
product over other brands
GROWTH PROSPECTS
Firstly we will enter in the cook wares industry where we feel we
have the most competitive advantage, particularly in the segment
of pressure cookers in the domestic market . Then, gradually we will
expand our business by launching other cookware products like
Tawa, Kadai. When we feel we made a pace in the local
cookware market, then we will try to move in other tableware
products like glasses, plates, spoons, bowls etc.
Then we have plans to move in other europian counries
BUSINESS ENVIRONMENT ANALYSIS
Basically we will be collecting clay from different regions across India like Jaipur, Udaipur,
Kolkata etc to make different products .we will be using these different clays in different
proportion so that it will increase the quality ,durability and heat resistance of the products
we make.
We are concerned about one thing that the clay we are using should not contain any
harmful chemicals for that we will be buying the best quality and the clay available in the
market and will be inspecting our products on the monthly basis so that our product can
reach to level of expectations of the people
We will be inspecting our products by doing laboratory test to check if the presence of
harmful chemicals.
SWOT ANALYSIS
STRENGTH WEAKNESS
• First time 100% natural clay products with • Extensive monopolistic competition by
excellent finish and quality major steel cookware brands
• Significant Cost advantage as the raw High labour cost as the products are
material is only clay handmade
• Less work in marketing as the Indian
consumers are already aware of the
benefits of clay product
OPPORTUNITIES THREATS
• Growing trend towards healthy cookware in • Due to so many cookware options available,
india there will be difficult to catch up the
• High prices of other available cookwares in competition
the market • The product is less durable than other steel
products available in market
Internal Environment Analysis
INTERNAL FACTORS-
• Policies and Rules- The organizational structure has strict plans like appointment of employees,
personnel management and Debt recovery etc. Certain procedures are followed to perform any
activity. The information flows in a organized way.
• Human Resource- The Company has strict procedures to appoint skilled new human resource. It is
insured that the employees work with dedication by providing them satisfactory monetary and
non monetary incentives. It is insured that the employees should always give first priority to the
integrity of the organization.
• Management and Culture- The whole organization is departmentalized in different groups. Each
department has managers who manage their activities separately. The working culture in the
organization is very healthy which always motivates to innovate something new and work
ethically with dedication
External Environment Analysis
External Enviourment-
• Political & Legal Factors- There are no Regulatory obligations for the frim. Clay Smith will
take benefit from various goverement schemes like Skill India, Swachh Baharat Abhiyan,
Startup India etc.
• Economic Factors- The economic environment overall seems in the favour as with the rising
disposable income of households. The depreciation in rupee and rising inflation might hurt
the overall cost of production and and export
• Technological Factors- Clay smith will strongly use the new digital marketing techniques
and advanced ad-sense technology which help us to find the right customers interested in
the product.
• Environmental Factors- Environmetal factors like rainfall may affect the quality of raw
material we buy from market. The product we form is completely bio degradable without
causing any harm to the enviourment
Competitive Analysis
Cookware’s industry’s market cap is around $350 to $400 million. Organized players are
involved in this like prestige, Hawkins. They have 50 to 60% share in the market and the
remaining share is in the hands of various small manufacturers.
The remaining 40% is still in the hands of small manufacturers, which will be our main target to
cover by providing safe & cheap alternatives.
By observing the market gap in the pressure cooker industry which is still facing a lot of
problems due to in efficiency in providing customer satisfaction, our aim is to focus on
pressure cookers eventually.
Penetration level of pressure cookers by organized players in the market is 75% and still 25% of
people are adopting traditional methods of cooking food.
Market Research Analysis-
Market Segmentation
Based on our research we have segmented in 3 categories-
• Customers who want cheap and they might cook in normal earthen pots in
or in cheap steel utensils sold by local sellers
• Lower Middle to Middle class customer with normal disposable income,
who care about their nutrition but price is also a big factor for them to
decide
• Customers in the upper income segment who want best high end product.
They don’t care much about price they give more importance to value
they get in terms of design, safety etc.
Target Market and Positioning
TARGET MARKET_
Our target segment will be the high end customer who are cautious about their health and
want the best quality products. They don’t focus much on price as far as the price is not way
too high
POSITIONING-
• We will be positioning as a high end potential cookware brand which provides all safe,
natural , superior products
• We believe by positioning our brand in this way will be most helpful reaching our target
customers and who can understand the value preposition we are offering.
Marketing Plan
• Initially, our marketing strategy will include hitting different retail stores in big cities like
Big Bazaar, Easy Homes, Vishal Mega mart etc.
• We will be investing good time digital marketing including Social media marketing,
Search engine optimization in order to advertise our products to potential customers
• We will try to sell our products to various luxury hotels, restaurants who prefer quality
products for their customers.
• Showcasing our products in various trade fairs and Expos to grab the attention of
various wholesalers and traders.
Financial planning and funding needs
Total requirement of funds
Cost of land- 20 lakhs
Factory premisis- 10 lakhs
Machinery- 15 lakh
Preliminary costs and legal expenses- 1lakh
Office setup- 10 lakh
Other recurring expenses for labour, employees( for marketing & operations), advertisement
includes
Marketing and Advertisements- 2 lakh per year
Labour (8 workers initially)- Rs 10000*8= Rs 9.6 lakhs per year
Other miscellaneous expenses= Rs 5 lakh per year
TOTAL COSTS= Rs 75 lakhs approximately
Financial Planning and Funding needs
Cost of Capital and source of funds-
Basically, our organizational structure will be a private company
There will be 3 directors in the firm will be provide them a loan from bank of Rs 10 lakhs each
Along with that We will be taking private equity funding of around 50 lakhs from private equity
investors or v/c firms.
Total debt- 30 lakhs
Total Equity- 50 lakhs
Debt equity ratio= 3:5
Management and organizational
Structure
In that start,
We will be having a small organization with formal communication structure
At start, our main department will be focusing on are the finance and marketing departments
where we will be investing our resources
After a Sufficient period of time when the business will grow, we will separate our organization
into different departments with separate department managers.
On the top of that will be the higher officials
Intellectual property rights
and launching the enterprise
Intellectual Property rights
We will be registering our brand name and logo of our products
Instead of that
we do not have any technology for which we require any
INTELLECTUAL PROPERTY RIGHTS
Launching of Enterprise
After carefully examining the business plan
And completing the preliminarry legal work like registration of company,
trademark etc.
After that getting funding from the equity investors
We will start our business…
Risk problem assumption
Risk analysis in earthenware
Although these cookware are eco-friendly method of cooking but it has it some cons also we
have to analyze them in future so that it cannot hamper our growth in the market so some risk
we have analyzed till now.
Product related risks
Burns
While ceramic cookware is able to withstand high temperatures, burns can still occur if
adequate safety precautions are not taken. Gloves must always be worn when handling hot
ceramic cookware to minimize the risk of burns.
Cuts and Bruises
Ceramic cookware can break under thermal and physical stress. It is important that all ceramic
cookware be thoroughly examined for cracks before use. Cracked or chipped ceramic
Risk problem analysis
Toxic Chemicals
Coated and glazed ceramic cookware may contain perfluorooctanoic acid (PFOA),
polytetrafluoroethylene (PTFE) and cadmium — all toxic chemicals. These substances are
liable to react with food and cause food poisoning. Perfluorooctanoic acid causes
reproductive ailments and liver damage when ingested in large quantities and
polytetrafluoroethylene can cause respiratory problems. According to the Occupational
Safety and Health Administration (OSHA), long-term exposure to cadmium has numerous
adverse health effects, including prostate cancer, lung cancer and kidney dysfunction.
So these are the risk we have examined which can cause hindrance in our business .we
have to be very sure of the quality aspects of our product. So we will focus more on this
area.
Exit Strategy
When it comes to exit strategy
There are some ways to end the business in case our business is not going uptothe
mark
• Shut It Down
• Drain It
• Sell your business
• Friendly Buy-Out
After observing the investment done by our business we will try top for
either SELL YOUR BUSINESS or FRIENDLY BUY OUT
Sell your business
Advantages:
Can generate significant revenue
Exit Strategy
Disadvantages
Can take longer than expected
Requires suitable buyers
Less buyers, lower price
Friendly Buy-Out
Advantages:
Can feel better letting a business go to a friend or family member
Disadvantages
Relationships can cloud judgement during sales negotiations
Given above are the advantages or disadvantages of the strategies we think to opt for
.According to the current scenario of our business we will opt a single strategy. which we
think beneficial for us at that instant.
Appendix
Next 5 year plan
Our next 5 year plan includes firstly making good pace in the domestic Indian market
particularly in cook wares segment
After that we will move on to table ware segment and some other products like bottles etc
Our target will be to collaborate and establish good relations with various multinational
departmental stores who are selling physically and online also like flipkart, amazon, big
bazaar etc
Then we will focus on exports and entering into other european markets.
