Business Plan

Executive Summary Introduction to company and market HUE DESIGN COMPANY (HDC) is looking for funds to start a new business venture in Nottingham. HDC is looking to capitalise the fast growing Indian apparel market through a British Brand name. Indian apparel market is large and is the fastest growing amongst major economies with a CAGR of 13%. It is currently estimated at USD 40billion and is estimated to increase to USD 124billion by 2020. Indian market is opening to FDI and now allows 100% investment by a single foreign brand. Recently introduced trade policies between India and Britain have opened new doors for business opportunities between the two countries. Mr Bhuvan Thapar owns a well-established garment manufacturing unit and retail chain in India and has worked for more than 6 years. This established association will prove to be a great benefit in running HDC’s business in the UK as trading can start as soon as the setup is established in the Nottingham. The Product HDC is a fashion design house creating designer clothing and accessories to sell in the UK markets. HDC would make fashion apparels for women, men and children. The fashion design house will be the base for creative and designing work that requires sophisticated technological knowledge. Then these designs would be transferred to India for production and shipped back to the UK for selling. HDC would sell in UK’s growing fashion clothing markets through owned retail stores, online selling, and franchises. The ultimate goal is to expand internationally with a British based brand, starting its international expansion from India. Accomplishing these goals would end up creating an established brand based in the UK. The next stage of expansion, which is entering Indian retail market, would commence as soon as HDC sets its hold in the UK markets. New fashion trends in India usually arrive late by six months to one year when compared to the UK. Most of the international companies launch their product in England before anywhere else and it takes almost a year to reach the Asian markets. HDC would then create fashionable designs to cater in both the markets, INDIA and UK at the same time. These designs will then be transferred to the already established Indian counterpart for production in bulk to achieve economies of scale. Although, some luxury products like Cashmere will be manufactured in the UK as the Cashmere produced here is the finest in the world and the HDC will also create designs specific to these. UK is known throughout the world for producing high quality apparels for luxury fashion brands. The UK fashion industry contributes USD 35.11 billion (2009) to UK’s GDP. Investment Proposal and Growth estimates HDC proposes an investment for £100,000; this amount is the additional funding required to partner’s capital of £30,000. Terms of returns are subjected to negotiation. Further, company will take advantage of the NTEC grant fund, which allows a grant of 20% of the first year total expenses and also the Nottingham Jobs funds of £4900. Total Sales projected at the end of 5th financial year is 3.15 million pounds and Net profit projected is approximately 190,000 pounds. Investing in this business plan, which is bound to succeed, would be highly beneficial for the University of Nottingham and Santander bank. This is a first of a kind attempt by the University and a successful venture will mark a new beginning in producing much-needed entrepreneurs. The success would gather universal appreciation and generate huge publicity for the Bank and University. HDC’s one of the strategies involve featuring in London Fashion Week, which generates 200million pounds of worth business yearly and is a global platform. This would add value to the Brand image of the university globally and specially India, which would attract more Indian students {every year 200,000 Indian students go abroad for studies, Indian students coming to Nottingham is only 790 (estimates: 2012)}