PROJECT REPORT CONTENTS

1. Cover Page
Title Of The Project
Submission Date
Batch and Group Number
Names and Roll Numbers of all Group Members who participated in the preparation of the Project
Document

2. Table of Contents

3. Executive Summary

We at Smart Furniture Incorporated have a vision of taking the evolution of household furniture to
the next level by incorporating state of the art technology and innovative design features in our
products that would allow an average city dweller staying in an apartment to get the most out of
his furniture in terms of its utilization, the space it occupies and the visual appeal that it has.

When you imagine the furniture of the future, you may envision slick or industrial pieces that
resemble the set of your favorite science fiction film. But consider the possibility that instead of
products looking more technological, furniture may be adapting in subtle ways to
accommodate technology. And with electronics getting less bulky and sleeker, it would only
make sense that home furnishings would follow a similar path.

We at Smart Furniture Incorporated strongly believe that being a foldable piece of furniture or
furniture that can transform from a bed to a sofa or a sofa to a bed in not truly smart unless it has
technology embedded in it. In alignment to our vision to incorporate technology in our furniture
products we have come up with several innovative ideas.

When we sleep in our bed we have our air conditioner/room heater cooling/warming the entire
room. Isnt just cooling or warming our bed good enough for a comfortable sleep as well as
energy efficient? Keeping this thought in mind we have designed smart beds that have a built-in
cooling and heating systems. Whats more interesting is that our smart beds would stay cool/warm
by utilizing 1/10thof the electricity that a normal air conditioner or room heater would require. As
per our calculations our smart bed customers would recover the cost of purchase in just 2 years
though the savings that would result from reduced electricity consumption.

Another strong product that we have in our portfolio has to do with the ordinary table. Of course,
we have smart tables in the market i.e. cupboards or beds that could transform into a table and
vice and versa but we at Smart Furniture Incorporated want to move beyond these simple
transformations by incorporating technology in our ordinary table. To this end we have partnered
with leading computer equipment manufacturer Klinovo to design smart tables that can transform
from a simple table with a touch screen interface to a full-fledged workstation.

The USP of our product is that we are the only company offering such products in India and
whats even more compelling is that fact that since the entire design and assembly of the product
is being done in India we can price our products competitively. Our products would not be
competing against other furniture but instead they would be competing against their technological
counterparts. For example, our smart beds would be competing primarily against air conditioners
because at a very slight premium over the air conditioner the customer will be getting our smart
beds that would fulfill two needs i.e. one for an air conditioner and the other for a comfortable
bed. Similarly, our smart tables will compete against existing workstations being sold in the
market.
Business Idea/Concept

Business concept -

I. Smart Beds:

This revolutionary product employs our patented Double Temp technology. It features active air
technology that heats or cools each side and allows you to select your ideal temperature at the
simple touch of a button. So, you can both have your sleep experience exactly the way you like.

Our smart bed package includes -

One smart bed

Two Heating and Cooling Sources
Two Wireless Remotes
Two Power Supplies
Two Power Cords
II. Smart tables:

Building a computer into a desk is a great idea, the problem is that you dont always want to use your
computer when you use the desk. Hence, we have our next product, the smart table. The massive flip-
up LCD touch screen is so smartly integrated into the system that at the press of a button you can
transform your workstation into a table.

Target Market:

Our customer base would only be limited to big IT hubs i.e. cities like Mumbai, Pune, Bangalore,
NCR, as we understand that it is the technology driven crowed that would most likely be
interested in our offerings. We want to help these customers satisfy their technological as well as
furnishing needs with a single purchase.

Industry/Business classification:

It will fall under manufacturing industries as per International Standard Industrial Classification of
all Economic Activities (ISIC) revision 3.0.

Value Proposition (USP):

Our USP is advantage of our uniqueness in Indian market, we are the only company offering such
products in the Indian market.

Implementation Strategy and Implementation Plan:

We plan to start our business in Mumbai since our manufacture and assemble unit will be coming
up there. We will accept orders for our products through our website and would initially service
only selected locations at Mumbai and Pune only.
Business Model

Key Value Customer Customer

Key Activities Propositions Relationships Segments
Partners
INBOUND MULTIPURPOSE A DEDICATED INITAIALLY
KLINOVO LOGISTICS PRODUCT TEAM OF THIS
FOR CRAFTING ENERGY CUSTOMER SERVICE
SUPPLYIN FURNITURES IN EFFICIENT RELATIONSHIP WILL BE
G OUR WORKSHOP PRODUCTS EXPERTS LAUNCHED
COMPUTE INTEGRATING EFFICIENT OFFERING IN MUMBAI
R FISNISHED SPACE 24*7 SUPPORT AND PUNE
HARDWAR PRODUCTS UTILIZATION ONLY
E FOR WITH FRESH IDEA IN PLAN TO
OUR TECHNOLOGY THE INDIAN EXPAND IN
PRODUCT SALES AND MARKET OTHER
S MARKETING CONVENIENCE METRO
SAI BABA OUTBOUND OF ORDERING CITIES IN
WOODS LOGISTICS ONLINE
 AND PLY Key Resources Channels THE NEAR
LIMITED FUTURE
FOR CRAFTSMEN ONLINE
SUPPLYIN ENGINEERS MARKETING
G THE COMPUTER DEDICATED
RAW TECHNICIANS INBOUND
MATERIAL AND
S TO PROCUREME OUTBOUND
CRAFT NT AND SALES LOGISTICS
FURNITUR DEPARTMENT TEAM
ES PERSONEL A FLEET OF
KURLON CUSTOMER 5 MERCEDES
INDIAN RELATIONSHI BENZ
PVT. LTD. P EXPERTS TRUCKS, 10
FOR MINI VANS
SUPPLING
RAW
MATERIAL
S FOR
FURNITUR
E
Cost Structure Revenue Streams

HIGH INITIAL CAPITAL EXPENDITURE SALE OF SMART FURNITURES

MODERATE OPERATING EXPENSES
ESTIMATED NET PROFIT OF 50%

Social & Environmental Cost Social & Environmental Benefit

RAW MATERIALS LIKE WOOD, PLY ARE ENERGY EFFICINET PRODUCTS

PRODUCTS OF CUTTING DOWN TREES
TECHNOLOGY WASTE

Proposed Location:

I. Head office in Mumbai:

i. As the city is a big market and will have a huge number of technology loving and
financially strong folks who may like to go for our product.
ii. Near ports will reduce cost during import of material.

II. Other locations : Will target only IT hubs initially

i. Pune
ii. Mumbai
iii. NCR

SWOT:
Key Success Factor:

New concept in market

Energy efficient product
Value to money

Proposed Legal Form of Business

,
Private limited company

Prerequisite (as we plan to sell our product online through already existing online sellers):

Personal ID Proof
PAN card
Address Proof
Current account
Registered Company
Apply for name of the company that flouts no trademark/copyright rule by filing Form
INC-1
Photograph of each Director
PAN card of each Director
Address proof of each Director (Passport, Election Card or Voter Identity Card, Ration
Card, Driving License, Electricity Bill, Telephone Bill, Aadhaar Card). In case of bills,
it cant be older than 2 months.
Residential Proof of each Director (Bank Statement, Electricity Bill, Telephone Bill)
Registered Office Proof (Ownership/lease/rent agreement, NOC from landlord and
telephone/electricity/gas bill not older than 2 months)
DIN
Register for service tax
Company PAN card
VAT/TIN/CST certification
Company s bank account
 Trademark certificate

Taxes

Service Tax
Custom duty
Excise duty
Income Tax

Labor Regime and Regulatory requirements

The Employees Provident Fund and Miscellaneous Provisions Act, 1952

The Employees State Insurance Act, 1948
Apprentices Act, 1961
The Contract Labor (Regulation & Abolition) Act
The Factories Act, 1948
The Industrial Disputes Act, 1947
The Industrial Employment (Standing Orders) Act, 1946
The Maternity Benefit Act, 1961
Minimum Wages Act,1948
The Payment of Bonus Act, 1965
The Payment of Gratuity Act, 1972
The Payment of Wages Act, 1936
The Workmen Compensation Act, 1923
The Factories Act of 1948

For Head office and manufacturing plant:

State specific guidelines and procedures

Permission required at construction stage
Application for plot/shed, offer letter, payment of earnest money deposit
Allotment of plot/shed, payment of balance occupancy price, taking over possession
thereof
Application for issuance of NOC/SSI registration
Execution of Lease Agreement
Application for grant of connection for construction water
Application for grant of connection for construction power
Post construction clearances as
Building completion/ Drainage completion/ Tree plantation certificate
Permission for mortgage
No objection certificate from Pollution Control Board
Final fire clearance
No objection certificate from Environment Department
Industrial safety permit
Sanction of permanent power
Sanction of permanent water and sewerage connection
Employees provident fund (if workers more than 20)
 Employee state insurance

5. Promoters Profile (For each partner/promoter)

Bio :
Name of partner
Address of partner
Contact number
Mail id
PAN details

Education:
MBA marketing grads for marketing
Chartered accountant for handling finance department
LLM for handling legal issues
Engineers for production and assembly
Six sigma black belt for process streamlining

Specialized Knowledge:

Specialized knowledge in touch screen technology

Thermodynamics expert for cooling beds
Production expert for production unit
Process expert to reduce overall cost of project

Training/ Experience Acquired Skill-set:

Initially we will go for higher experience folks to make the project stable; this senior-junior
ratio will reduce once company is mature enough.

Awards & Credentials

Employees and vendors will be awarded on a quarterly basis based on their performance in
last quarter.
Awards will come in form of onetime bonus or goodies depending on company s
performance in last quarter.

Proposed role in the project-organization

Chief Executive Officer

Chief Technical Officer
Chief Financial Officer
Process expert
Engineers
Operators
Marketing Expert
Sales Executive
Human Resource Officer
The Industry & Market

Industry Dynamics and Analysis

Indian Furniture Industry is considered as a "non-organized" sector, with handicraft
production accounts for about 85% of the furniture production in India. The furniture sector
only makes a marginal contribution to the formation of GDP, representing just a small
percentage. In the year 2000, India ranked 48th among furniture exporters and 49th among
importers. This was due to the high import duty applied, and on the other hand, from the low
technological level of Indian companies and the local tastes and traditions that influence the
style of the products offered, making them difficult to export.
During 2005, data for index of industrial production, as many as 14 of the 17 industry
groups have shown positive growth as compared to the previous years. However, Wood
Products; Furniture and Fixtures have shown a negative growth of 16.7%. Today in India
Wood Products, Furniture and Fixtures carry a weight of 27.01 % in the total manufacturing
sector. This category has however shown a decline in recent some years. The visible
consumption of furniture in India is estimated to be 15 USD per year per inhabitant but this
average hide wide variation in populations and in cities. India has a favorable outlook to sell
furniture and one expects the furniture industry to grow further in the coming years. Two
important reasons for this are:

First India's large size

Indian tastes have started to be more refined and Indian people are looking for more
western furniture style

Market Dynamics and Analysis

Beds and tables form an important part of furniture. It is always in demand in the market in
which it is available in numerous different forms, shapes and sizes. Traditionally beds have
been bulky pieces for furniture that occupy a lot of space and are quite difficult to move from
one place to another. With the rise of urbanization in India and the growing number of multi
stories apartments, space is rapidly becoming a shrinking commodity. People are now looking
for furniture products that are space efficient and are able to multitask.

The Indian furniture market has seen very little to no evolution and almost all of the products
that are being sold in the market are traditional pieces of furniture.

Target Customers primary, secondary and tertiary

Our primary target customers would include techies in major IT hubs in India. Our secondary
customer base would include IT companies spread across the country that are looking for space
efficient and technology driven smart furniture for their offices. The tertiary customer base would
include. Tertiary customers would include large hotel chains.
Market Segmentation and Reachable/Serviceable Size
of Each Segment
We would start our first workshop in Mumbai and would initially sell our products in Mumbai and
Pune only. Within a year of inception, we plan to open our workshops in Pune, Bangalore and
Hyderabad. Our workshops would also serve as service centers for our products and we would
have separate team of technicians and carpenters that would be responsible for initial set up as
well as for fulfilling service requests for the installed furniture products.

Methodology of Market Research

As of now smart furniture with technology integrated in them are not being marketed in India,
although there are many global startups that have started companies that design and sell
furniture with technology embedded in them. To judge if such a venture would succeed in India
we conducted a marketing survey asking the participants if they would be interested in furniture
that has technology embedded in it. The survey included participants from Mumbai and Pune
and the most of the respondents were employed in tech firms. We got an overwhelming
response in favor of our products.

Survey link
https://docs.google.com/forms/d/e/1FAIpQLSfW5M1GxiYMWJwEj5YpJE0E13R2PWxfZLxroiJk
WQPqJsdA3A/viewform?usp=sf_link

Competition analysis
As of now we dont have any direct competitors in India.

Anticipated Market Share

We expect to capture 1% of the furniture market share in Mumbai and Pune within one year of
our launch.

Available Distribution Channels

Our products will be manufactures in a workshop in Mumbai and from there they would be
transported to customers located in Mumbai or Pune via the road. Our outbound logistics will be
outsourced to Amaze Transports LTD.

Marketing Plan
Market Entry Strategy

Initially we would market our product only in Mumbai and Pune. We would organize an event
where we would invite tech geeks to demo our products.

Pricing Strategy- Positioning

The pricing of our products would be driven more towards the technology that would be used in
them. For example, the price of our smart tables would be more towards the price of a
workstation than towards the price of a table. Initially our products would be positioned more
towards a niche category.

Advertising & Promotion Strategy

Our advertising and promotion strategy would include

Social media like Facebook

Advertisement on YouTube
Product demos at malls and other public places
We would also market our products through our websites
We would have our marketing representatives demo our products to corporates who are
in need of furnishing

Distribution Strategy
Manufactured products would be stored at a warehouse in Mumbai and would be transported
from that location to the customers. The outbound logistics will be handled by our partner
Amaze Transport Limited. A team of two would be responsible for setting up the furniture at the
customers place. Smart equipment for transportation of furniture would reduce the need for
more labor in transportation and installation of the furniture.

Sales Operation Planning

Sales and operations planning would be headed by our sales team. Currently we have two
individuals in our sales and operations team and with the growth of our business this number is
expected to rise.

Post-entry Market Growth and Sustenance Strategy

After the first year, we are hoping to expand to Bangalore, Hyderabad and Delhi. To keep up
with this growth we would be raising more capital through funding from various sources and
would boost our infrastructure and manpower.
Customer Management & Relationship Strategy
There will be separate team for CRM and there would be dedicated helpline number that would
be active from Monday through Friday from 9 A.M. to 6 P.M. We would also be having a mail as
well as a chat facility to address customer grievances. Our team would be working from our
Mumbai office.

Sales and Marketing Manpower Plan

Initially there would be two members in our sales and marketing team. Other manpower
requirements would be met by contracting carpenters for manufacturing of furniture as per our
design specification, there would be two master carpenters who will be on our payroll and rest
of the carpentry work would be outsourced to other carpenters. We would have a dedicated
team if 8 individuals on our payroll who would be responsible for assembling technology with
the furniture. We would have a team of 4 individuals who will be looking after our inbound
logistics. There would be one person for HR. Contract labor will be hired on a need basis.

Operations Plan

Production
Our smart furniture would be initially assembled at our workshop in Mumbai. As we expand into
other cities we would have separate workshops for them.

Process Layout
Envisaged Organization Structure

Smart Furniture Incorporated Organization Structure

Estimated Cost of Project, Estimated Financials and
Breakeven analysis

Breakeven
analysis.xlsx