Auction Days: 30

Business Valuation as on Feb 2022: 15 lakhs, taking into consideration the development of this handloom business from scratch to till now and considering brand value.

7.35 lakhs to be paid for a stake of 49% share in the business. I will be selling 49% of shares for this business and it can be purchased by one Business Partner or multiple partners depending upon the share you wish to purchase.

Some of the expenses did for brand awareness and for doing business for the past 2 years:

Ads running for the last 2 years on platforms like:
Facebook,
Instagram
and Amazon website.

30,000 paid for developing our own Website
25,000 for making brand video using film actress Tanaaz Irani
Currently gift boxes per piece costs around 75 Rs as ordering small quantities of 200-500 at a time.
50,000 spend to get the database of all weavers and weavers societies details from each and every state in India

Also completed:
Trademark registration for categories like Cloth, Metal and Wooden. Clothing registration completed. Wood and Metal trademark registration is in process and will be getting soon. Then we will be moving to sell Handmade metal and wooden handicrafts as well.


Employees payments:

Amazon Account Management : 3500/monthly
Amazon Ad Management : 4000/monthly
Auditor : 1500/monthly
Site hosting and domain : 1000/monthly
Room on rent to keep stocks: 6000/monthly


Brand Video made with Film Actress Tanaz Irani. Amazon Store setup and currently revamping the Store and will go live next week with new look and feel and also with contents to educate people about our products and why it is healthy to use Handloom products and why handlooms are costly compared to power loom products.

Visited many Handloom clusters in South India to learn about handloom and weavers and artisans. Difficulties faced by them and how we can help them through our brand.

Spend a lot of time on this business to learn the handloom history and present situation and how to work on this niche. I purchased a lot of materials, attended a lot of training and seminars. Attended many offline and online Amazon seminars and training. Spend a lot of money daily in building this brand from scratch and that too as a premium brand. For eg: sellers in Amazon are selling single dotis of 3 for as cheap as 300-500 Rs and even claiming as handloom. We are selling one single dhoti for 1000 Rs and it has good demand on Amazon. Many of our customers are repeat customers. My only problem is I don't have the money all the time to restock the fast moving products. Because of that we are losing sales due to Out of Stock of fast moving products. We get a gross margin of 20%+ on each product sold on Amazon. Got Advanced Seller award from Amazon for brand DMZ INTERNATIONAL.

I am currently looking for a co-founder / Business Partner at this point of time by selling a share of maximum 49%. For this 49% there can be more than 1 partner. I will be holding 51%. At present my company is registered as Sole Proprietorship. So all new partners will need to go for a new company formation and can discuss whether to register an LLP or Pvt Ltd and distribute the shares.

I will be taking 7.35 lakhs for all the expenses in maintaining the business for the past 2 years and taking in consideration the brand value of our business. After paying me 7.35 lakhs we will register a new PVT Ltd or LLP as per our discussion with a Lawyer and will start working together to take this business to the next level.

I have made a full road plan for the next 5 years on what all we can do to take this business to the next level.

As I have the full database of currently active Master Weavers and Weavers society across India, as a next course we can have contracts with those weavers who still don't have any online presence. Also, I have plans in place to add Handicrafts as well to our portfolio soon. Indian Handicrafts from GI Certified places in India have very high demand in abroad markets. This business also for testing the market we can do with Amazon marketplaces across the globe. I have an export license and all customs formalities are also completed. Currently I have exported some handpicked products of our handloom and I am testing our brand in the US and Canada market. DMZ products are available in Amazon US and Amazon Canada. Recently only had all formalities and Import / Export license taken and customs clearance done for exporting handloom products across the globe.

How I work is I approach a Master Weaver or a Weavers society who doesn't have any online presence and sign contracts with them and get stocks. As of now , funding for it is found from my day job salary only. So not able to take stock in that much bulk quantity and bargain for more discounts. Also, the weavers are all very poort, so no place for bargaining as this business is for a social cause as well. The main satisfaction I am getting from this business is that compared to other businesses, I am able to help many weavers and their families , especially in this pandemic situation who did not have any source of income. Literally they were starving.

I am attaching my Amazon sales here, which shows that there is scope for selling in Amazon at premium price though majority of Amazon customers are looking for cheap and discounted products. My Ads strategy helped a lot in it. Once we start selling on our site after our brand gets a little popularity , from our website we will be able to sell all these products for half the price quoted in the Amazon site at present. Amazon eats up more than 30-40% for FBA Prime Products as commission.

Once our brands are popular we will sell on all platforms like Flipkart, Paytm, Snapdeal, Reliance Mart, Meesho and mainly on our own website across the globe.

So, if you would like to be part of this journey let me know. We can discuss further and prepare the road plan ahead. If you want to bring anyone to this business who has knowledge on Handloom market or not, you both can also share 49% and come on board as well. I am also actively looking for Partners and in discussions with some contacts and discussions are in progress to share the 49% of equity.

P.S: I am currently working full time and next one year will be working due to personal commitments with the company  ( Till March 2023) . After 1 year, I will be deciding on leaving the job and doing this business full time depending on the Business demands at that point of time.


Thanks & Regards,
Nishanth Muraleedharan ( DMZ INTERNATIONAL )