A Journey to

RE-CREATION.

February

Dream phase:

*Great ambition

*Determination

March

Concept phase:

*Industry research

*Affiliation build up

*Technology development

2013

Business idea

Unutilized materials

Useful products

Entirely for-profit No values in mind

April 24 2013

A huge blow to the nation

Impact 1,138 people died

150,000 injured

5th worst industrial disaster in the world

7 national mourning days announced

April onwards

We went into soul searching

Findings“Rana Plaza was not the first tragedy to occur

in Bangladesh’s garments industry and

without intervention, more might follow.”

John A Quelch

Margaret L Rodriguez

Harvard Business School

9-514-04

February 4, 2014

This was not an accident!

1996-2000 2001-2005 2006-2010 2011-20151990-1995

17 December 1990 – A fire at Sareka Garments killed 32

1996 – A fire killed 22 at Lusaka Garments near Dhaka

1997 – 27 died at Tamanna

Garments (fire incident)

1997 – 22 died at Rahman &

Rahman Apparels

25 Nov 2000 - 53 people

killed at a fire at the Sagar

Chowdhury Knitwear and

Garment factory

2001 - 24 killed at Maico Sweater

2002 - 12 killed at Global Knitting

2004 - 9 killed at Misco Supermarket Building and 64 died (3 incidents) in different locations

2005 - 23 killed at Shan Knitting, Godnail, in January;

11 Apr 2005 – 64 people are killed when the Spectrum factory near Dhaka collapses.

23 Feb 2006 - A fire killed 67 peopleat the KTS Textile Mill

2006 - 6 died at Jamuna Spinning Mill

2006 - 22 died at Phoenix Garments(building collapse)

25 Feb 2010 – A fire kills 21 workersat Garib & Garib Newaj Factory

14 Dec 2010 – A fire swept throughHa-Meem Group factorykilling at least 29.

24 Nov 2012 – A fire at the TazreenFashions factory near Dhaka kills 124.26 Jan 2013 – 8 dies at the Smart Fashions factory

24 April 2013 – Rana Plaza: 1,133.

08 May 2013 – A fire at the Tung Hai Sweaters Ltd. killed 9 people.

09 October 2013 –10 killed in a fire at the Aswad Composite Mills Ltd

32 124 132 135 1,284

Timeline of “INCIDENTS”

Total death toll: 1,707Source: Stein & Partners

W H Y

Unfair distribution of profit Only mass sales translate to survival

W H Ocan save the industry?

Government of Bangladesh RMG clients

Disney Corporation shifted all its production from Bangladesh

Protects $21 billion RMG industry from extinction

78% of country’s export

15% of country’s GDP

9.6M Employment

June

Concept modification: Value centered enterprise

2014

Shanjibon™

Unutilized materials

Unused labor

Environment concern

translates to

Sustainable business

Business only with RMG units that would invest the revenue from jhoot for workers’ safety and ETPs

1 2 3

Unutilized materials

Jhoot (scrap of clothes)

1

YarnThe major product of

Shanjibon.

HandicraftPremium product made

from jhoots, old thrown

away or donated clothes.

Paper and

Shopping bagsProduced from by-product of

yarn production

Cushion fillingsThe unusable jhoots and

smaller portion of jhoots

from residue of the

making of handicraft.

Our Products

Diverese, multipurpose, green

Unused Labor

Hijras (transvestites)

2

Situation Ostracized from society

No respectable means of living

No contribution to economy

Negative image: harassers, prostitutes

and beggars

C H A N G E

the life of hijras in Bangladesh160,000

First organization to

specifically employ

Respectable and decent

earning opportunity

Promote social inclusion

3 Environment concern

Most have noeffluent treatment plants (ETP)

Nearly 4 million

people directly suffer the consequence

Around

35,000𝒎𝟑

of toxic wastefrom RMG sectors

=stark OUR BUSINESS PHILOSOPHY

Mission:Turning waste scrap of clothes from RMG factories to resources.

Vision:To make RMG business more sustainable and in the process improve workers’ safety, reduce pollution and empower the socially ostracized hijra (transvestite) community.

Value creation:1. Bring revenue and save cost for the RMG units of Bangladesh2. Empower transvestites of Bangladesh3. Reduce environmental pollution

Social Impact

“Buying jhoots only from RMG units that would

invest the revenue for workers’ safety and ETPs”

After breakeven, a

certain portion of net profit will be allocated to BGMEA

Train and employ 140 hijras

in 5 years per franchise

Inject $2 million revenue to RMG per franchise

Garbage reduction:

790 tones

SROI: 16.43For $1 of investment, there will

$16.43 worth of social contribution

Total Jhoots: 351,000 tonnes

Total earning potential: $318 million

Total revenue potential for RMG: $178 million

High industry growth

Market Potential

Local Expansion2 other factory franchises in 3 years located at ExportProcessing Zones.

Far in the future, Shanjibon™ wants to spread near everymajor garments hub.

Shanjibon™ Global FranchiseThe innovation once becomes successful in the entire nation can be franchised to Sri lanka, India, Cambodia, Laos, Vietnam and other top RMG exporters that are facing similar problems like that of Bangladesh.

Scalability

Shanjibon™ Botique Store Handicraft products of Shanjibon havehigh potential due to design and supportof social cause.

Shanjibon™ Online StoreDepending on internet penetration and increased motivation to buy online in Bangladesh, Shanjibon™ has plans to start its own online.

September

Pilot project

preparations and

fund collection

2015

*Factory space lease

*Initiation of pilot of yarn

production

*Trail order for handicraft items

2014

January till now

Technology

Supported by:

New synthesis of machineries from existing technology

Under the collaboration of Engr. Mohammad GolamMostafa, Prof Qamrul Islam and Zafi Hyder

=stark Yarn and Paper making Process

Sales and Marketing

Competition

Branding

Distribution

Partnership

PromotionProjection

Competition

Why would RMG units sell jhoots and buy yarn from Shanjibon™?

Shanjibon™ almost buys all

types of Jhoots. Even

Sheras (jhoots that can’t be

processed) are shaped to

use as cushion filling by

Shanjibon™.

Can sell all jhoots

RMG units can buy yarn

from Shanjibon™ at a price

much lower than that of

imported yarn

Save cost

Fulfilling the contract for the

trade would open doors to a

number of high-end brands

as clients

Get more new clients

The price offered for jhoot is

5 times the existing price

Highest revenue from waste

Selectively buys

jhoots at minimalprice and exports

competitors:

HandicraftYarnTargets entirely the RMG units.

Buy with the highest price in the industry and sell at 18% less

price compared to import price.

Paper and shopping bags

To be the cost leader in the

market. Ensure both sales and

product concept to be successful

in the market.

Branding

Targets niche market:

Income High

Inspired to contribute to society

Offerings: Unique, attractive items

Positioning with social cause

HandicraftThe product line with highest potential

2 batch trail orders from reputed brands

Ms Afsin Trisha, Founder

and Chief Designer at Kagojami

Great designers in the design team:

Ms Sarah Ahmed & Sahila Sanzana, design prodigies

Distribution and Promotion Partners:

Handicraft

Advertisements at

Social media platform

Posters at

partners’ storeFeatures in

mass print media

Shelf Space Donation Basket

=stark Distribution

Located near garments hub

Low to no transport cost

Specialized local distributors

Yarn Paper

=stark

2015 2016 2017 2018 2019

Sales $148,786 $366,497 $566,000 $795,134 $1,111,021

Expense $177,173 $370,345 $498,233 $684,845 $911,601

Net profit -$28,387 -$3,848 $67,767 $110,289 $199,420

$1

48

,78

6

$3

66

,49

7

$5

66

,00

0

$7

95

,13

4

$1

,11

1,0

21

$1

77

,17

3

$3

70

,34

5 $4

98

,23

3

$6

84

,84

5

$9

11

,60

1

-$2

8,3

87

-$3

,84

8

$6

7,7

67

$1

10

,28

9

$1

99

,42

0

Sales Expense Net profit

Sales Projection

Financial Summary

Start-up expenditure:

$145,778Internal Rate of return:

20.1%

Profit from 2017 onwards

Consistent positive cash flow

=stark MEET THE TEAM

Ahmed Istehad

ShoumikChief Executive Officer

Al Amin ShuvoChief Marketing Officer

Abdullah

Muhammad

DhruboChief Financial Officer

Jabid RaiyanChief Technical Officer

MD Tapan Mahmmud

Faculty Advisor

Assistant Professor

Bangladesh University of Professionals

Board of Advisors

Tapan Mahmud, (Legal expert)

Assistant Professor Faculty of Business StudiesBangladesh University of Professionals

Dr Qamrul Islam (Operational expert)

ProfessorDepartment of Mechanical EngineeringBangladesh University of Engineering and Technology

Muhammad Abdul Gani (Training and Support)

PresidentHuman Safety Foundation

Ｚａｋｉ Ｈａyｄｅｒ (Technical expert)

Managing DirectorHuman Safety Foundation

Md. Nurul Alam, FCMA, ACA,

(Financial expert)General Manager Janata BankAccounts & Financial Management Division, Head Office

M.K.H. Khasru (Successful

entrepreneur at RMG industry)Managing Director Newgen Group, New Generation Fashion Limited, Nextgen Style Limited, Needle-Work Limited, Everest Washing Plant Limited

Engr. Mohammad GolamMostafa, (Textile Expert)

General Manager P.N. Composite LTDBSc in Textile EngineeringBangladesh University of Textiles

Board of Advisors

Kanak Aditya, (Business Partner)

Owner

Deshal Fashion

Anjan Dutta (Business partner)

Owner

Anjan’s Fashion House

MilestonesThank you!

Appendix

Assumptions

1 USD= 80 BDTDiscount rate is considered as 10%Time frame: 5 yearsWaste disposal cost*: $1,000,000/MTTax rate: 30%Qualitative to quantitative conversion factor: EMES standardsIncreased Self-Esteem: 5%Improved Lifestyles: 3%

*Source: Cleaner is Cheaper, The Energy and Resource Institute publication, 2007, IBSN 81-7993-118-8

SROI breakdown

Wage earned by hijras: 17700+39860+45174+60440+67541=$230,715Income tax by government: 230715*15% = $34,607.25Tones of waste reduced: 790 tonnes; money saved from waste disposal: $790,000Worker’s safety improvement: COGS+ cost savings+ profit distribution = 770,804.86+526215.402+24528 = $1,321,548.262Qualitative to quantitative conversion factor: EMES standardsIncreased Self-Esteem: 230715*5%= $11535.75Improved Lifestyles: 230715*3%= $6921.45

Total social contribution: 230715+ 34607.25+ 790000

+1321548.262+11535.75+6921.45 = $2,395,327.712

*3rd EMES International Research on Social Impact Measurement Phil Sital-Singh and Robin JohnLondon South Bank University, United Kingdom

Investment: $145,778

SROI=𝑆𝑜𝑐𝑖𝑎𝑙 𝐼𝑚𝑝𝑎𝑐𝑡

𝑇𝑜𝑡𝑎𝑙 𝐼𝑛𝑣𝑒𝑠𝑡𝑚𝑒𝑛𝑡= 2395327.712

145,778 = 16.43

Social contribution indicators:

Products 2016 2017 2018 2019

June July August SeptemberOctober NovemberDecember Total

Cash Inflow

Beginning Balance$60,000 $49,040 $40,866 $36,046 $32,158 $30,746 $29,999 $60,000 $31,613 $27,765 $95,532 $205,820

Gross Profit $2,310 $3,696 $7,060 $11,177 $16,908 $17,573 $21,074 $78,658 $203,292 $309,598 $427,607 $596,618

Total inflow $62,310 $52,736 $47,926 $47,223 $49,066 $48,319 $51,073 $138,658 $234,905 $337,363 $523,139 $802,438

Operating Expense

Salaries $1,600 $1,800 $2,200 $2,500 $3,200 $3,200 $3,200 $17,700 $39,860 $45,174 $60,440 $67,541

Rent $2,200 $2,200 $2,200 $2,200 $2,200 $2,200 $2,200 $15,400 $32,850 $35,698 $43,978 $58,733

Marketing $0 $0 $800 $5,000 $7,000 $7,000 $7,000 $26,800 $32,850 $20,000 $15,000 $15,000

Legal $150 $150 $150 $0 $0 $0 $0 $450 $1,500 $2,000 $2,000 $2,000

Maintenance $200 $200 $200 $350 $400 $400 $400 $2,150 $7,650 $16,804 $46,247 $62,840

Interest $750 $750 $750 $750 $750 $750 $750 $5,250 $10,500 $10,500 $10,500 $10,500

Recruitment and Training$4,500 $3,000 $1,800 $0 $0 $0 $0 $9,300 $8,000 $6,000 $6,000 $6,000

Utilities $2,000 $2,000 $2,000 $2,500 $3,000 $3,000 $3,000 $17,500 $48,930 $51,612 $60,887 $64,118

Insurance $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $8,750 $17,500 $17,500 $17,500 $17,500

Stationary $120 $20 $30 $15 $20 $20 $20 $245 $500 $500 $500 $500

Miscellaneous $500 $500 $500 $500 $500 $500 $500 $3,500 $7,000 $7,000 $7,000 $7,000

Total Outflow$13,270 $11,870 $11,880 $15,065 $18,320 $18,320 $18,320 $107,045 $207,140 $212,788 $270,052 $311,732

Net Cash before Tax$49,040 $40,866 $36,046 $32,158 $30,746 $29,999 $32,753 $31,613 $27,765 $124,575 $253,087 $490,706

Less Tax (30%) 0 0 0 0 0 0 0 0 0 29043.09 47266.54 $85,466

Rolling Cashflow$49,040 $40,866 $36,046 $32,158 $30,746 $29,999 $32,753 $31,613 $27,765 $95,532 $205,820 $405,241

Ending Balance $31,613 $27,765 $95,532 $205,820 $405,241

Shanjibon™ Pro Forma Cashflow Statement

2015

Details Cost

Pilot test $7,670

Legal and registration $2,120

Factory setup $28,680

Recruitment and Training $12,840

Machinery $78,968

Utility deposits $7,000

Advance Salary $5,000

Miscellaneous $3,500

Total start-up expense $145,778

Start-up Expenditure

Shanjibon™

2015 2016 2017 2018 2019

Current Assets

Cash and Equivalent $4,366 $518 $68,285 $178,573 $377,994

Inventories $0 $2,500 $1,000 $1,500 $1,748

Short term investment $1,200 $2,000 $2,180 $2,221 $2,368

Recievables $3,000 $1,256 $2,569 $1,895 $1,400

Prepaid expenses $7,000 $0 $0 $0 $0

Fixed Assets $15,566 $6,274 $74,034 $184,189 $383,510

Property and plant $30,000 $37,000 $48,000 $55,000 $79,000

Machinery $75,000 $68,000 $60,450 $51,000 $42,850

Total Assets $120,566 $111,274 $182,484 $290,189 $505,360

Current Laibilities

Accounts payable $0 $0 $5,600 $4,200 $12,000

Short term debt $15,000 $0 $0 $0 $0

Long term Liabilities

Loans and bonds $63,000 $85,000 $120,000 $135,000 $110,000

Owners' Equity $42,566 $26,274 $62,484 $155,189 $395,360

Total Liabilities and Equity $120,566 $111,274 $182,484 $290,189 $505,360

Pro forma Balance Sheet

Shanjibon™

Products 2016 2017 2018 2019

June July August SeptemberOctober November December Total

Yarn (kg) 3000 4800 5000 8000 10,000 10,000 10,000 50,800 146,865 212,974 279,000 385,324

Paper (bundles) 0 0 5,000 8000 14000 16000 18000 61,000 113,000 173,000 254,000 345,000

Shopping bag (piece) 0 0 3000 3100 3400 3900 4200 17600 35080 67976 88,959 105,978

Handicraft items (units) 0 0 0 0 200 0 800 600 7000 13000 19,000 30,000

Revenue $3,000 $4,800 $12,950 $20,465 $32,792 $34,585 $42,758 $148,786 $366,497 $566,000 $795,134 $1,111,021

Less. COGM 690 1104 5890 9288 15884 17012 21684 70128 163205.35 256402.1 367526.72 514402.76

Gross Profit $2,310 $3,696 $7,060 $11,177 $16,908 $17,573 $21,074 $78,658 $203,292 $309,598 $427,607 $596,618

Operating Expense

Salaries $1,600 $1,800 $2,200 $2,500 $3,200 $3,200 $3,200 $17,700 $39,860 $45,174 60,440 67,541

Rent $2,200 $2,200 $2,200 $2,200 $2,200 $2,200 $2,200 $15,400 $32,850 35,698 43,978 58,733

Marketing $0 $0 $800 $5,000 $7,000 $7,000 $7,000 $26,800 $32,850 20,000 15,000 15,000

Legal $150 $150 $150 $0 $0 $0 $0 $450 $1,500 $2,000 $2,000 $2,000

Maintenance $200 $200 $200 $350 $400 $400 $400 $2,150 7,650 $16,804 46,247 62,840

Interest $750 $750 $750 $750 $750 $750 $750 $5,250 $10,500 $10,500 $10,500 $10,500

Recruitment and Training$4,500 3,000 1,800 0 0 0 0 $9,300 8,000 6,000 6,000 6,000

Utilities $2,000 $2,000 $2,000 $2,500 $3,000 $3,000 $3,000 $17,500 48,930 $51,612 60887 64118

Insurance $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $8,750 17,500 17,500 17,500 17,500

Stationary $120 $20 $30 $15 $20 $20 $20 $245 500 500 500 500

Miscellaneous $500 $500 $500 $500 $500 $500 $500 $3,500 7,000 7,000 7,000 7,000

Total $13,270 $11,870 $11,880 $15,065 $18,320 $18,320 $18,320 $107,045 $207,140 $212,788 270,052 311,732

Income before Tax -$10,960 -$8,174 -$4,820 -$3,888 -$1,412 -$747 $2,754 -$28,387 -$3,848 $96,810 $157,555 $284,886

Less Tax (30%) 0 0 0 0 0 0 826.2 0 0 29043.09 47266.539 85465.782

Net Income -$10,960 -$8,174 -$4,820 -$3,888 -$1,412 -$747 $1,928 -$28,387 -$3,848 $67,767 $110,289 $199,420

2015

Pro Forma Income Statement

Shanjibon™

Years Cash-In Cash-Out Net Cash Flow

0 145778 -145778

0.5 28387 -28387

1.5 3848 -3848

2.5 67767 0 67767

3.5 110289 0 110289

4.5 199420 0 199420

Total Inflow Total Outflow Total Net Flow

Total 377476 178013 199463

Shanjibon

Internal Rate of Return (IRR) 20.08%

Net Present Value $33,390.99

Profitability Index 1.2291

Equivalent Annual Annuity $9,961.05

Break Even Period 3.5

Qualitative conversionRevenue from a Shanjibon™ franchise can be used to buy

around 76 waste disposal plant

with capacity to process

228𝒎𝟑of wastes.

BIOROCK-E MID SIZED ETPCost: $300,000

Financial Summary

Start-up expenditure:

$145,778Internal Rate of return:

20.1%Net present value:

$33,391

Breakeven in 3.5 years

Thank you!