Final Report - Sumit Tonape

Sri Sri University, Cuttack
Summer Internship
Report
(May-June 2018)
Sumit Tonape
(FCMS/MBA/2017-19/023)
Rassaa Creations and Innovation Pvt. Lmt.

Financial Analysis and Market Research
by
Sumit Tonape
FMS/MBA/2017-19/023
Under the guidance of

Sagar Chanana
Director, CEO
Rassaa Creations and Innovations Pvt. Ltd.
Sri Sri University

CUTTACK - 754006
July, 2018
Date: 31/07/2018
DECLARATION
I hereby declare that this submission is my original work and that, to the best of my
knowledge and belief. I have prepare this report entitled “Financial Analysis and Market
Research” in the partial fulfilment of the requirement for the degree of the Master of
Business Administration (MBA) under the guidance and supervision of Mr. Binod
Mukherjee, supervisor assigned to me from my University- Sri Sri University.
..........................
Name: Sumit Tonape
Reg. No.: FMS/MBA/2017-19/023

Acknowledgement
The Completion of this under taking could not have been possible without the
participation and assistance of so many people whose names may not all be
enumerated. Their contribution are sincerely appreciated and gratefully acknowledged.
However the group would like to express their deep appreciation and indebtedness
particularly to the following:
Mr Binod Mukherjee, CA Vijaya Bhatt, Sagar Chanana, Abhishek Khurana,

Archana Gautam, Prof. (Dr.) Srinivas Subbarao Pasumarti, Subham Sharma, Suprava
Poddar thank you for your guidance and endless support without your support it will be
impossible to do this insightful projects.
To all relatives, friends and others who in one way or another shared their support,
either morally financially and physically, thank you.
Above all, to Sri Sri Ravi Shankar to for his knowledge and wisdom talks and the
countless love.
Thank you.
Sumit Tonape
Executive Summary
Financial Analysis and Market Research of Rassaa
This Internship Report is prepared based on the 8 weeks of Summer Internship

Program that I have successfully completed in Rassaa Creation and Innovation Pvt.
Ltd. from 16-05-2018 to 10.07.2018 as a requirement of my MBA program at Faculty
of Management Studies, Sri Sri University.
The global furniture market can be broadly categorised into four categories –
domestic furniture, office/corporate furniture, hotel furniture and furniture parts. And
the global market share of each categories are shown below.
According to a World Bank study, the organised furniture industry is expected

to grow by 20 per cent every year. In this period I learned that popularity of traditional
furniture has strengthened the demand for wood in the manufacturing of furniture in
India. Over the past few years, the utilization of wooden goods in home has increased
as people have started using wood for furnishing cupboards, decorating and for other
purposes. The rising trend of home décor and home furnishing with modular and stylish
furniture is the major reason behind the growth of furniture industry in India. The market
is expected to expand at a CAGR of 12.91% during the forecast period of 2016-2023.
India furniture market growth is driven by various attributes such as rising trend for
modular and state of the art furniture among the population living in urban cities,
growing urbanization in Indian states, rising demand for durable and hybrid seating
furniture.
Moreover, Advancements such as availability of high speed internet networks
such as 4G and these advancements further provide ease to the customers to buy
furniture through online channels. In addition, the rising number of smartphone users
across the country and online shopping is encouraging the furniture industry players
to introduce their products through online channels. The players such as Pepperfry,
Urban ladder and others are generating significant revenue through online platforms.
Top Factors Impacting World Home Decor Market
Growing consumer interest towards Home Decor:

Number of homeowners has increased significantly in the recent years, especially in
emerging economies, thereby spurring a growing interest, among these owners.
Additionally, home décor products have gained a high acceptance among home
owners who want to renovate the home interior and exteriors. The impact of this factor
would increase during the forecast period, thereby consequentially fostering the
demand of home décor products, during the forecast period. Real estate industry has
witnessed significant market growth worldwide, owing to the increasing disposable
income.
 Growth in real estate industry:
Real estate industry has experienced growth in the last few decades in residential as
well as commercial sector. Booming real estate industry is driving the growth of the
home décor market. Increasing growth rate of new constructions, especially in
developing Asian countries would influence the market by 2020.
 Increasing rate of urbanization:
Increasing urban population is one of the strong impacting factors affecting the home
decor market. Urban culture influences an individuals’ living style. Presently, most of
the world population lives in rural areas. According to the data released by United
Nations, near about 54% of the world’s population were living in urban areas in 2014,
and more of rural population is expected to shift to urban areas during the forecast
period. The impact of this factor would increase during the forecast period, thereby
consequentially fostering the demand of home décor products in the near future.
 Increasing cost of raw material:
Cost and availability of raw materials play a vital role in home decor market. Raw
materials such as metal, wood, plastic, glass, leathers, rattan, fabrics and stone are
used for manufacturing furniture. For floor covering, manufacturing tiles, wood &
laminate, vinyl & rubber, carpet & rugs and others (linoleum, cork, bamboo, concrete),
are essential raw materials. Cost of raw materials has increased significantly in the
past few years. However, by 2020, it is expected that the cost of raw materials such as
plastic and glass, would decrease owing to advancements in production technology of
these raw materials Thereby, these factors would create a favorable environment for
home decor market in future.
 Value chain analysis
Value chain of the home decor market comprises various stakeholders, such as raw
materials and components suppliers, manufacturers or furniture integrators and
distribution channel. Each of these stakeholders share a specific value at their point of
operation, which, in turn, contributes to the competitive value of the product. Materials,
design, style and furnishing of the home décor products enhance the value associated
with the end deliverable by each players.
Value Chain Analysis of Home Décor Market

Every hour spent at Rassaa Creations and Innovations Pvt. Ltd. gave me
incredible amount of learning experience that is very useful for my career. The
internship program designed is a short stints with different Tasks of Rassaa viz. Break-
Even Analysis, Unit Cost of each Product, Competitor Analysis, Developing Sales
Channel. This report is a compilation of various desk-reports I made for the use of
Rassaa and for my understanding.
The focus was to understand Furniture and Home Décor Industry and have
Insights on Financials and to gain the necessary information for a Start-up to pitch for
Investment in front of Venture Capitalist.

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Sri Sri University, Cuttack

Rassaa Creations and Innovation Pvt. Lmt.

Under the guidance of

Sri Sri University

Reg. No.: FMS/MBA/2017-19/023

Mr Binod Mukherjee, CA Vijaya Bhatt, Sagar Chanana, Abhishek Khurana,

Financial Analysis and Market Research of Rassaa

This Internship Report is prepared based on the 8 weeks of Summer Internship

According to a World Bank study, the organised furniture industry is expected

Top Factors Impacting World Home Decor Market

Growing consumer interest towards Home Decor:

Value Chain Analysis of Home Décor Market

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