E-Commerce platform- Designer Dresses for Women

The project is about expansion of current business in designer ready made dresses into E-Commerce. The project is focusing in the state of Kerala in India with highest broadband density and 100% literacy. The project cost is 0.15 Million USD with funding sought for 0.13M USD.

Our Company was incorporated under Indian companies Act 1956 as a private limited company. It started its commercial operation on 15th August 2010.

The company was promoted by two young new generation entrepreneurs.
The company is operating in women’s ready-made apparels. We believe that ready-made as such is not a suitable thing in Indian style of dresses. The wide variations in the body structure make it almost impossible to provide standard measurements applicable to Indian dresses. Hence company introduced the concept of Designer ready-made dresses. It is a mid-path between Designer dresses which are creations for individual customer and ready-made which are mass production materials in standard measurements. Unlike Gents wear, the fitment of women’s wear, particularly Indian dresses is not depending upon the chest size or shoulder sizes. In the designer Ready-made each design is produced in Limited numbers and provided at the measurements of the client. This is possible with the use of Internet and developments in the logistics field.

Giving fine fitment to the customer measurements which are taken remotely (through the net) requires some tools and skill. For the last one and half years we were in the process of developing the same. Now the company is successful in offering its design to the customers in their measurements at desirable fit. The sale also has also grown up, from INR 400000 (USD 8000) in the first year to INR 3000000 (USD 60000) in the second year.

The company is located in the state of Kerala, in India. The 100% literacy rate and highest broad band density in India are two things which provide locational advantage. Also the fact that the length of Keral state is only 600KM which is 300KM north and south from Kochi, where the project is located and is servable in 48 hours maximum by courier service is of good advantage. In this short area we get 40 million populations and its fifty percentages is the targeted women clients.

The investment sought is INR 6500000 equivalent to 130000 USD. The financial projection for next five years is as below. The investing partner is welcome to the board of directors.

Financial Projections:
Year 1 Year II Year III Year IV Year V
Turn Over 154740 729860 1414880 1889980 2532680
% Growth 372.00% 94.00% 34.00% 34.00%
Margin 45060 212400 411720 549800 736660
% Growth 371.00% 94.00% 34.00% 34.00%
Operating Profit -23460 31600 129540 189120 271680
% Growth -235.00% 310.00% 46.00% 44.00%
Operat.Profit -15.16% 4.33% 9.16% 10.01% 10.73%
Net Profit -46960 10480 43440 101340 160680
% Growth -122.00% 315.00% 133.00% 59.00%
Net Profit as % -30.35% 1.44% 3.07% 5.36% 6.34%
ROI % -31.00% 7.00% 29.00% 68.00% 107.00%
Cumulative ROI % -31.00% -24.00% 5.00% 72.00% 179.00%
EPS( USD) -7.83 1.75 7.24 16.89 20.09
CPS -3.91 5.27 10.48 20.75 22.7

* The first serious attempt on online shopping business in Kerala for women's Dresses.
* The concept of Designer ready-made dress is established and procedure is stabilized.
* The deigning department is well established and the creations are widely appreciated.
* Ideal location. Kochi is the commercial capital and almost at the center of the state with almost every place in Kerala within 24 hours reach by courier.
* Kerala is the state in India with highest broad band density and population is 100% Literate.

Online shopping is fast growing and the concept "Designer ready made dress" is one of the very apt product for this vehicle.

The geographical advantage of 20M women population living within a distance of 250 KM south and north from the business and almost all these habitats connected with Broad band and logistics service providers is the biggest opportunity.

Kerala women are increasingly getting employed in higher end executive and IT related jobs resulting in higher disposable income, need for better dressing and makes a tech savvy population who will accept this opportunity for its convenience and uniqueness.

The funding is expected in both equity and preference share route.The preference share will carry a cumulative dividend of 15% the first disbursement being planned at the end of year three(45%). Preference share will be redeemed at end of fourth year. The equity portion will yield dividend. The project will start making profit in the second year of operation and EPS of face value USD 10 is expected to be 1.75, 7.24,16.89 and 20.09 for years 2 to 5 respectively.

Representation in board will be considered for substantial investors. Also person with a passion for fashion and glamour industry will find active participation in the business interesting.

The investment is sought for formation of new online entity and the fund requirement is at the beginning of the project. Once the formation of the company is finalyzed fund is to be provided in three installments of one month interval between the inflows.