National Institute of Fashion and

Technology, Banglore

FEASIBILITY ANALYSIS OF A
BUSINESS IDEA
25th September 2019
GROUP MEMBERS:
RAKSHA NIVEDA
SHIVANI PANDIT
SUBMITTED TO: MUKUND ANAND
Ms. NETHRAVATHI T S RAKESH RANJAN
 IDEA 1

1. NATURAL DYEING

IDEA IN BRIEF: ALKANNA

To establish a start up with the idea of natural dyeing on cellulosic

fabrics like cotton and linen as an initiative towards sustainability.
 MARKET ANALYSIS

The global natural dyes market is anticipated to generate revenues of approximately

$5 billion by 2024, growing at a CAGR of around 11% during 2018-2024.The
increasing focus on quality and performance coupled with stringent government
environmental regulations regarding pollution will encourage the use of natural
ingredients in the global market. The rising awareness about the depletion of natural
resources, distortion of ecological imbalance, pollutants resulting in a disturbed
environment caused by the over usage of hazardous chemicals and specifically
synthetic dyes will enable vendors to launch a more sustainable and safer alternative
in the market. The global natural dyes market is driven by the innovations in
treatment plants and systems. The improvement in living standards and an increase
in per capita disposable income will propel the demand for natural colorants in the
global market.
 MARKET DYNAMICS

Growth Enablers
• Growing Number of Environment-conscious Consumers
• Improving Standards of Living and Increasing Urbanization
• Growing End-user Industries
Growth Restraints
• High Competition from Synthetic Dyes
• Lack of Wastewater Treatment Practices
• High Cost yet Low Color Effectiveness
Opportunities & Trends
• Innovations in Dyeing Technology
• Increased Awareness about Natural Dyes through Internet
 ORGANISATIONAL FEASIBILITY

It is to define the legal and corporate structure of a business. An organizational

feasibility study may also include professional background information about the
founders and principals of the business and what skills they can contribute to the
business.

Organizational feasibility basically deals with the structure of human resource and
sourcing of materials, equipment’s etc. for a systematic functioning of the startup.

Human Resource:
Marketing
Design
Research and Development
Finance
Human Resource
 RAW MATERIALS AND EQUIPEMENTS

Raw Materials: Yarns, dyes, mordants, soaps and degum salts

Equipment: Dye baths, vessels, storage vessels, stirrers, stove, hangers or rods etc.
Vendors: Dharma Dyeing and Co.
Sodhani Biotique
Sri Devi Dyes and Chemicals
Sri Nagaraja Dyes and Chemicals

The dyes, salts and equipements must be acquired keeping in mind the exposure to
high temperature and pressure conditions. Also, that the chemicals and dye stuff
would tend to contaminate the storage vessels over a prolonged period of time.
Hence, it is of utmost importance that the quality of the capital is looked after and
assured.
 TECHNICAL FEASIBILITY

A technical feasibility study assesses the details of how we intend to deliver a product
or service to customers. Think materials, labor, transportation, where your business
will be located, and the technology that will be necessary to bring all this together. It’s
the logistical or tactical plan of how the business will produce, store, deliver, and
track its products or services.

A technical feasibility study is an excellent tool for both troubleshooting and long-
term planning. It can serve as a flowchart of how your products and services evolve
and move through your business to physically reach your market.
Here, for the smooth functioning of the start up a set of atleast 4 computers along
with a proper wi-fi connection is a pre- requsite to support the r&d and the finance
team so as to manage the sales. Also, enough structural support must be provided for
the quality assurance of the fabrics post dyeing.
 COMPETITIVE FEASIBILITY

Helps us to determine the competition that the particular product/service would be

facing when launched into the market. Directs us to the design intervention or
solution that would help us to place the product well in the current market.

Given the current idea of the start up some of the competitive brands would be:
Tharangini
Sodhani Botique
IndiaMART

However, Alkanna is initiated with the idea of making the entire process of natural
dyeing more transparent to the customers thus, making them a part of the process
and making them aware and appreciate the essence of the craft.
 FINANCIAL FEASIBILITY

A financial feasibility study projects how much start-up capital is needed, sources of
capital, returns on investment, and other financial considerations. The study
considers how much cash is needed, where it will come from, and how it will be
spent. It can focus on one particular project or area, or on a group of projects (such
as advertising campaigns).

The study is an assessment of the financial aspects of something. It could be

anything, but is most often used to consider a few key points that, if refined
correctly, should answer most of the basic questions of anyone who takes a seat at
the table.
 START UP REQUIREMENTS

Start-up capital is how much cash you need to start your business and keep it
running until it is self-sustaining. You should include enough capital funds (cash, or
access to cash) to run the business for one to two years.

Although many business or sole proprietorships determine their capital

requirements individually, larger corporations may use the help of their respective
bank or capital firm to pinpoint capital requirements for either a round of funding
or business launch.
 REQUIREMENTS AND PRICES

Dye Stuff and Chemicals

ESTIMATION FOR UTENSILS: DYE QUANTITY PRICE

1,00,000-1,50,000INR STUFF/CHEMICA
LS
Dye baths: 3 sizes (5 small, 10 medium,
MYROBALAN 10KGS 1750INR
4 big) (175INR/KG)
Stirring Rods INDIGO 8KGS 9600INR
Plastic Mugs (1200INR/KG)
MADDER 8KGS 8000INR
Measuring Tools
(1000INR/KG)
Spoons etc. DEGUM SOAP 8KGS 4000INR
Other Sources of Expenditure (500INR/KG)
Space
Transportation
Plumbing
Quality Assurance etc
 INVESTORS

Infuse Ventures: Infuse is a

venture catalyst. Housed at
IIM Ahmedabad’s Centre for
Innovation Incubation and
Entrepreneurship (CIIE), they
partner with exceptional
entrepreneurial teams in
India to help create, build and
scale new cleantech business.
they provide entrepreneurs
with hands-on business and
mentoring support, a world-
class ecosystem of Indian and
global partners, and seed &
early-stage capital.
 IDEA - 2

Our start-up is about an upcycling service provided to customer who wish to reuse or
find an alternative use of their old and discarded clothes as a new garment or a
product.

There are people who look for new fashion trend might not like wear clothes which
are out of trend, some will have brand new clothes in their wardrobe which they will
never use thinking it’s not fashionable enough to wear or due to fitting issues. Our
start-up will be a platform for those people who can donate and stylize clothes that
doesn’t fit or is stained/ torn and turn them into wearable products.

Clothing will be upcycled into new clothing or accessories, skirts, vests, headbands,
pillows, ties and scarves with various surface techniques like tie-dye, bleaching,
embroidery, patchwork, quilting etc.
Upcycling helps one save money as you reinvent old clothes and avoid shopping for
new ones.
 MARKET FEASIBILITY

The new-age consumer behavior includes interest in sustainability. They are aware of
the textile industry’s environmental and social shortcomings. The global fashion
industry has thus hit upon this new drift now. Considering the environmental trend
(climate change and global warming) people are moving towards sustainable
practices like reuse, recycle and upcycle etc. upcycling process in new ways, sparking
a trend that’s gaining serious momentum.

With this, Poignant says that beyond wanting to buy stuff that doesn’t make a person
feel guilty, more consumers are showing a desire for alternative, creative fashion that
is made in limited numbers. The rise of these upcycled garments not only contribute
to sustainable shopping as a whole, but also serve as art pieces, cultural commentary
and a sense of connection.
Upcycling helps lessen the amount of waste going into landfills which can take
thousands of years to break down. It helps preserve our natural resources and reduce
pollution.
 ORGANISATIONAL FEASIBILITY

Organizational feasibility is used to define are there enough resources and

competences to launch and run the business. Management powers evaluates the
management team’s skills and passion to run the business. Resource sufficiency
focuses on the non-financial resources to run the business, such as the author’s own
resources. It is really important for us to have people who are passionate about the
environment and protecting it.

Affordable and available premises at the area

- Good location – easy access
- Good network to gain and share knowledge
- Designer who shares the same vision
- Pattern master
- Dyer
- Embroiders - good at surface embellishments
- Tailors
 TECHNICAL FEASIBILITY

Upcycling utilizes non-traditional methods, in which post-consumer garments are

treated as flat cloth. New pattern pieces are cut directly from these discarded clothes,
requiring more flexibility in making up, as often minor adjustments are needed in cut
or construction to create garments of a standard size. upcycling the clothes can be
achieved through various techniques like patchwork, tie-dye, bleaching, surface
embellishments. Considering these requirements within the production there is

- A washing unit with a washing machine,

- A dyeing unit with dye bath, dyes and salts,
- A wooden frame for hand embroidery,
- A machine embroidery and single needle sewing machines.
-An online site which allows the customers to share their sustainability ideas and how
they use, wear and recycle our products.
 COMPETITIVE FEASIBILITY

The global fashion industry has thus hit upon this new drift now. more and more
fashion designers are discovering the sustainability gains and positive creative
challenges of working with discarded textiles. Some designers make use of second-
hand clothes, while others turn to spill material and leftovers from garment factories.

Many brands like Abraham and Thakore, Péro by Aneeth Arora, Doodlage by Kriti
Tula. House of Wandering Silk, AM.IT by Amit Aggarwal taking the sustainable route
and giving us reasons to take a break from fast fashion on the concept of upcycling–a
method wherein leftover fabric also known as deadstock is used to create new
products.
 FINANCIAL FEASIBILITY

Financial feasibility is the last element

of the feasibility analysis. It should
include calculations of capital ITEM QUANTITY PRICE (INR)
requirements, estimated earnings and Single needle sewing 2 x 15,000 30,000 INR
return on investment. Capital machine

requirements means all the costs when Embroidery machine 1x 20,000 20,000 INR

starting a business, such as registration Washing machine 1x 15,000 15,000 INR

costs, producing costs, warehouse costs, Sewing thread 100 275 INR

marketing costs and labor costs.

Embroidery thread 100 500 INR

Dye stuff & chemicals 5 kg 2,500 INR

Estimated earnings can be defined by
forecasting the potential earnings.
 CONCLUSION

By comparing the two-business idea we found upcycling is a

time-consuming marking, fear of product failure, no definite
product category, more of manual work, no considerable
profit that can be paid to the workers. Therefore, the
upcycling business idea didn’t pass the financial feasibility
test.