By Priyanka Mukherjee
Global Links Participant
After coming across the business model of my client Ruma Mallick, which was provided by Bandhan Bank, I found some challenges with the business such as labor, cost and market.
My client’s name is Ruma Mallick, and her business is B.K. Hosiery, which makes readymade gentleman’s undergarments and hosiery products. The business started in 2012, and was started with an initial investment from Bandhan Bank and a self-investment. The business is located in the house of the owner’s father, and the business provider is Anish Company. After orders are received from the Anish Company, the input materials, soft, colored textiles are cut, sewn, and stitched in machines and by hand. After several stages of production, the finished products comes out as output materials.
- Business turnover – approximately 32,000 rupees per month. The amount can vary per season.
- Business problems:
- Lack of regular man power
- Lack of space
- Not specific fund apart from the earnings from the ongoing business (contingency fund)
- Future targets:
- When and how the market can be increased
- Looking at and implementing the possibility of including the company under a big brand
- Business Summary: The client has acquired three loans from Bandhan Bank; this shows their reliability and dependence. The loans were 10,000, 20,000, and 70,000 rupees respectively. At the beginning, the business was initiated with two machines and one labour only, working alongside my client and her husband. Initial products were Stitched Salwars and Night dresses. Later they permanently moved to making Gent’s under garments only. All the jobs were done at my client’s father’s house. Now they have 20 labours (male and female, 10 each), and 8 fully functioning machines.
As this business produces for another big company, there is less chance to increase their market. That is why I have decided to work on the small daily problems they are facing during their production, raw-material collection, and delivery.
There are some machines that are not in use, yet they have to maintain an expense for them. This increases their production cost, and decreases their profit amount.
Output: If they start to use those machines it will increase their production and the cost for those machines will not be extra anymore.
Result: They accepted that and some of my client’s family members are running those machines.
They have labor problem as I stated before. All the laborers are all from their hometown Lakhikanta Pur, which is far away from Kolkata.
The laborers sometimes leave their work but don’t inform my client. As a result, my client faced many problems regarding production and delivery. Those laborers are contractual labors, but there is not any legal documentation about that contract.
Output: I advised them to hire local laborers, and I even looked for the sources of local labors. My client has decided that they will exercise my advice after Durga Puja when they will hire new laborers according their business policy.
New Business Idea
Due to some place issue they are not willing to enlarge their hosiery business. But already they have two “Tata magic” cars which are used in transportation business. They also have a transportation business plan.
Output: I suggested them a way to execute transportation more effectively, by giving the idea about “OLA”, “UBER,” etc. I told them if they run their car under those cabs agency, they can earn a good amount of profit. I also discussed the personal experience of my friend who was running their own car under one of this agency and making a good amount of money. I even told them about the government subsidy criteria, which will help them to buy a car to run under “GATI DHARA”.
Self-development is the main thing that was missing in Ruma Mallick. I saw her hesitate to execute her ideas and opinions in front of her family. She has her husband’s support to start up her own business but lacks the self-confidence to take a step ahead.
Output: At first I tried to ensure her about our friend ship, and then I took a step ahead to make her feel that as a woman or girl we have lots of similarities. I shared my daily experience, struggle, how I have become more confident day by day. Those things help her to realize her self-efficiency and her working ability.
As a part of self-development and women empowerment, I convinced her to start up a “Cosmetic Jewlery and Imitation Jewelry” business. I asked her to invest a very small amount of capital (rs.3000 to rs.4000). I told them about the wholesale market from where they can get all the products. I shared some business tricks from my personal experience to attract the customers. I suggested this business as it is so easy to startup and the locality where they live is very much supportive for this kind of business.
The Novelist, Rabindra Nath Tagore said,
“The highest education is that which does not merely give us information but makes our life in harmony with all existence”
This Global Links Program brings harmony in my life. Because of this program, it was possible for me to work in the practical field with lots of experienced persons.
Within this time period it was not that easy to convince them and make them ready to apply some of my business knowledge into their business which one they have been running for a while. But with the help and teaching of our teacher Dr. Sarmistha Banerjee, Abira mam and Anusree mam and Dr. Conway, it was less problematic.