“A Case Analysis on Gowma non leather private ltd &Sakshi Financial

Solutions”

Authors: Mr. S.Zeshaan.Ali.

MBA Student – KLE’s IMSR Hubli, Affiliated to Karnatak University

Dharward. Karnataka, India.580031.

Email Address: zeeshaan2696@gmail.com

Mr.Ningraj.Garag (Student – KLE’s IMSR)

MBA Student – KLE’s IMSR Hubli, Affiliated to Karnatak University

Dharward. Karnataka, India.580031.

Email Address: muttug404@gmail.com

Co-Author: Prof. Saptarshi Mukherjee (Faculty – KLE’s IMSR)

Faculty – KLE’s IMSR Hubli, Affiliated to Karnataka University Dharward.

Karnataka, India.580031.

Email Address: saptarshim@ymail.com

 Gowma non leather private ltd

Owners Description:
Shubham S Jain is registered with the ministry of corporate affairs with DIN (director
0identification number) of 07685520, and is currently associated with 1 company, and he is the
owner of this company. Gowma non leather pvt ltd is one year old company, and company
incorporated in 10/February/2017, it is classified as non-government company and is registered
at ROC-Bangalore, it has 4 directors presently and 12 employees are working in this company, it
is located in Hubli and more than 8 branches are working across the Karnataka, to turn his idea
into a successful business. GOWMA ventured by animal lovers with a Noble Cause of saving
animals by providing leather substitute products which are WORLD CLASS in DESIGN and
QUALITY at AFFORDABLE PRICE. Our products are available offline through our Franchise
and Retail outlets and Online at www.gowma.com.

The owner said “There was no alternate available in the market, and people had to struggle
with the non leather products, this inspired us to start this company.” By this the gowma
entered into the market with the unique business as start up as leather substitute.

The leather and leather products industry is one of India’s oldest manufacturing industries that
catered to the international market right from the middle of the nineteenth century, the demand
for its products being both domestic as well as international right from the beginning. About 46
per cent of the production in the sector is exported and it ranks eighth in the list of India’s top
export earning industries and contributes roughly Rs. 10,000 crores per annum, i.e., about 4 per
cent to export earnings. The sector accounts for 2.5 per cent of the global leather-related trade of
Rs. 387,200 crores. An estimated 15 per cent of total purchase of leading global brands in
footwear, garments, leather goods & accessories, in Europe, and 10 percent of global supply is
outsourced from India. The owner said “Probably only company in the Globe to have all the
leather Substitutes under one roof exporting to two countries London and Australia. Be a
Part of our revolution for a Noble Cause of Saving Animals as GOWMA non leather pvt
Ltd.”

Type of Business:
Leather is one of the oldest materials in the world, created by killing an animal, stripping its
skin of hair and fat, and treating the leftover materials with oils and chemicals (or way back in
the day, urine and lime). Ancient Egyptians made leather sandals; cowboys rode on leather
saddles. If any material seems outside the reach of innovation, it’s leather. But in modern
meadow, The test tubes and vats in the facility in Nutley are integral to its process of growing
what it’s calling the world’s first biofabricated leather, made not from animals, but from lab-
grown collagen that’s assembled into flexible, adaptable forms of a new, leather-esque material
that has the same properties as animal skins, but much less of the footprint. Leather substitute
business in non leather products. Vagan bags made from bio-degradable petrochemical from a
startup called gowma non leather private
 Companies’ vision and mission:
 To educate our prospects about 100% leather substitutes.
 To Promote Philosophy – Live and Let Live.
 To educate brutally killing of animals for leather products and promote use of Non Leather
Products. “Save Millions of Animals” like Gow-Mata, God Snake, Goats, Sheep and many more
give a healthy environment to the society.

When it got incorporated?

The category of the company is company limited by shares and the company was incorporated in
the state of Karnataka, gowma non leather private limited company principal business activity as
per MCA /MCA1/ROC record is business services. The class of gowma non leather private
limited is private. Gowma non leather pvt ltd is one year old company, and company
incorporated in 10/February/2017, it is classified as non-government company and is registered
at ROC-Bangalore, it has 4 directors presently and 12 employees are working in this company, it
is located in Hubli and more than 8 branches are working across the Karnataka, turn this idea
into a successful business.

Capital investment:
Required as an initial capital for investment of rupees 25 lakhs. It was funded by own like
family, friends & relatives. The breakup of capital contributed is more than 5 lakhs. More money
is spent on branding like 15-20 lakhs so still the company has not achieved its break even and it
is still expecting in coming years. Revenue generated in the month of March was 8-10 lakhs
through export of goods. Managing the cost with 12 employees in hand as a unique start-up
through the profits generated by sales.

Challenges faced:
There were many challenges the startup had to undergo as; the owner said “In the last three
month struggle for the start up is to keep capital rotating in the business. In the last six
month struggle was extremely difficult to sell the products our concept of live a leather free
life, so the capital was not moving early”. There other challenges were as; marketing a start-
up is a different ball game from marketing a traditional business or corporation. For starters, you
don’t have any brand recognition to get you in the door, your budget is usually limited and most
times, you’re dealing with your potential customers in an intensely competitive atmosphere.
It’s important that sound content is put out there to sell your business in the best light to your
target audience. Most start-ups don’t see the need to hire creative professionals solely for quality
content creation. Most times, you find yourself struggling with writing business plans, sales
pitches, articles, essays for major publications all in the bid to put your business out there.
Thankfully such roadblocks can be scaled with the help of advanced writers who better
communicate your message to your potential clients.
Customer is king, and correctly so. Winning a customer’s trust is one of the most important
hurdles that businesses in general ought to overcome. With a highly satisfied and loyal customer
base, start-ups can scale fast and make progress towards excellence.
To win customers’ trust and loyalty, start-ups need to work aggressively to implement customer-
centric working philosophies. This would clearly enable them succeed in the pursuit of attaining
sustainable growth in this fast paced world.
Managing the business, creating this innovative idea and implement it requires cost to run the
business and even to make the clients and customer to get satisfied it requires huge branding and
marketing strategy. The Gowma is pushing its business with overcoming all these challenges and
stretching its business at a large scale as to export it products and create a brand in national and
international markets. The owner said “This year 2018-2019 the Company is coming up with
huge brand promotion through JITO and trade organizations, and also targeting lot of
revenue more than ten times from the previous year.”

Conclusion:
Gowma non-leather Pvt Ltd is a unique start up which spreads the message of protecting the
animals with its remarkable idea of non leather products as a leather substitute marks its products
with great brand value with its sophisticated branding in National and International Markets by
providing wide range of categories to corporate, ladies and men accessories by its global
recognition in the field of start up.
 Sakshi Financial Solution

Owners Description:

Navaneet G Malagi & Shweta are the registered founders of the Sakshi Financial Solution. It is
the young and emerging start up which consists of providing the various financial products and
financial advice to the clients. It provides financial Services like loans, tax planning, tours and
travels and so on provided at one particular place. The owner said “Big Bazaar inspired me to
take this kind of challenge in service sector”.

Sakshi Financial Solution is into the business of providing all the financial products at one roof
which means they give services like loans, tax planning and tours & travels facility for the
customer at their convenience. It even provides the financial advice to the various clients who
want to go for any financial investment. It is the business which covers the financial services
sector and focuses on revolutionizing the sector with the base of converting the traditional
problems of customer by providing the most feasible and convenient solution at one place.

The country’s financial services sector consists of the capital markets, insurance sector and non-
banking financial companies (NBFCs). India’s gross domestic savings (GDS) as a percentage of
Gross Domestic Product (GDP) has remained above 30 per cent since 2004. It is projected that
national savings in India will reach US$ 1,272 billion by 2019. Over 95 per cent of household
savings in India are invested in bank deposits and only 5 per cent in other financial asset classes.

India has a diversified financial sector undergoing rapid expansion, both in terms of strong
growth of existing financial services firms and new entities entering the market. The sector
comprises commercial banks, insurance companies, non-banking financial companies, co-
operatives, pension funds, mutual funds and other smaller financial entities. The banking
regulator has allowed new entities such as payments banks to be created recently thereby adding
to the types of entities operating in the sector. However, the financial sector in India is
predominantly a banking sector with commercial banks accounting for more than 64 per cent of
the total assets held by the financial system.

The Government of India has introduced several reforms to liberalize, regulate and enhance this
industry. The Government and Reserve Bank of India (RBI) have taken various measures to
facilitate easy access to finance for Micro, Small and Medium Enterprises (MSMEs). These
measures include launching Credit Guarantee Fund Scheme for Micro and Small Enterprises,
issuing guideline to banks regarding collateral requirements and setting up a Micro Units
Development and Refinance Agency (MUDRA). With a combined push by both government and
private sector, India is undoubtedly one of the world's most vibrant capital markets. In 2017,a
new portal named 'Udyami Mitra' has been launched by the Small Industries Development Bank
of India (SIDBI) with the aim of improving credit availability to Micro, Small and Medium
Enterprises' (MSMEs) in the country. India has scored a perfect 10 in protecting shareholders'
rights on the back of reforms implemented by Securities and Exchange Board of India (SEBI).
Sakshi Financial Solution it comes under this type of sector where it provides all financial
products and financial advice to various clients at one roof.
 Type of business:

Providing the various financial products and advisory services to the clients at one roof. Like the
concept of big bazaar providing every financial facility at one roof such as loans, tax planning
and various alternatives and helps the clients in selecting the most feasible solution to their
financial problem.

The common loan types available in India:

1. Home loan::
o Loan for Land Purchase
o Loans for repairing and extension of your home
o Loan for building a home
These different types of home loans can be useful to you in buying a property or a home of your
own.
2. Personal Loan:
Personal loans are meant to meet the personal needs of an individual. People can use this money
for anything they want.
3. Vehicle loan:
Vehicle loan or to be more specific car loans fulfills your dream of having a car or a bike. This
loan is offered by almost all the banks in India.
4. Education Loan:
Banks also provide education loans to their customers. These loans provide better study
opportunities for the students who are financially backward.
5. Agricultural Loans:
India is a land of farmers. Most of the people in India till date are dependent on agriculture.
Therefore, it is very important to pay attention to the farmers also. There are different types of
loans offered by banks for the farmers which can help them in their agriculture practices. They
can buy the seeds, insecticides, tractors and other equipment needed for agriculture from the
money they get from the loan and can pay the money back once their crops are sold.

Tax planning:

Tax planning is the analysis of one’s financial situation from a tax efficiency point of view so as
to plan one’s finances in the most optimized manner. Tax planning allows a taxpayer to make the
best use of the various tax exemptions, deductions and benefits to minimize their tax liability
over a financial year. Tax planning is a legal way of reducing income tax liabilities; however
caution has to be maintained to ensure that the taxpayer isn’t knowingly indulging in tax evasion
or tax avoidance.
Tax Planning in India:
In India, there is a number of tax saving options for all taxpayers. These options allow for a wide
range of exemptions and deductions that help in limiting the overall tax liability. The deductions
are available from Sections 80C through to 80U and can be claimed by eligible taxpayers. These
deductions are made against the quantum of tax liabilities. There are various other sections under
the Income Tax Act, 1961 that can reduce your tax liabilities such as exemptions and tax credits.
Types of Tax Planning:
 Purposive tax planning: Planning taxes with a particular objective in mind.
 Permissive tax planning: Tax planning that is under the framework of law.
Companies’ vision and mission:

 To revolutionize the financial service sector

 To reach the maximum clients and provide the feasible financial service to various
customer at one roof.

When it got incorporated?

It is incorporated as young start up since this year and the operations is commenced from this
particular year. It is just started and shaping up still in the market.

Capital investment:

Invested as an initial capital of rupees 1.5 lakhs and it is funded by own from the savings & Still
hiring the people who can work for an expert in financial sector.

Challenges faced:

The sakshi financial solution is an emerging start-up and shaping itself to make its place in the
market with is unique idea. There were many challenges faced to make the idea into a business.
The owner said “Service required terms and time anything in service sector to develop need
to meet maximum customers and clients every day”. The only financial struggle is to make up
for the clients to agree for the loans to be provided to business people as unsecured loan
compared to secured loan taken by the salaried people and advising them financially. It is purely
service related of providing the all financial aid to various people at one roof. At present there is
no any loan or debt taken by the company at this stage. But the following are the challenges it
had to undergo as:

1) To make people understand about this concept.

2) Convince the clients and make them realize about how it functions practically.
3) Bringing everything at one roof as financial products.
4) To manage the funds as it was invested by owner himself and not taken from any outsiders.

Financial services organizations are currently facing unprecedented public and government
scrutiny. For many of them this involves an uphill struggle to re-establish economic strength and
customer trust. Additionally, in this era of telephone and internet banking, the distance between
institutions and customers has increased to the point where discerning customers are now
defining customer service as a crucial element in their choice of financial institution. The Data
Monitor Report 2010 states that ‘Service must be innovative and flawless’, with institutions
distinguishing themselves through consistently excellent delivery and problem solving.Doing
more with less is an ongoing business mantra, but recent economic changes have made it a
particular focus for the financial sector. Many companies are conducting entire reviews of
existing business procedures to see where efficiencies can be found, and the processes used to
manage business information should not be overlooked in this.
Competition in the financial sector is fierce - market consolidation, technological advances and
global, 24/7 business environments have intensified the competition for market share and profit
in the financial services industry. As the demand for innovative products and services continues
to increase, time-to-market and brand differentiation have become key factors for success. Using
technology to respond rapidly to both opportunities and challenges will mark out the financial
leaders of tomorrow. But where do you start with the solutions on offer?

Sakshi financial solution is trying to overcome all the challenges by its sophisticated idea of
providing the better financial solution to the various customers and clients at one roof with its
unique idea as start up.

Conclusion:

Sakshi Financial Solution is emerging and young start up which has established and making its
presence in the market and unique concept of providing the every type of financial service and
advice to the various business clients and customer and making the customer to utilize the
platform for getting every financial aid at one umbrella. It is merely focuses on business people
for solving their financial struggle of getting the various alternatives and choosing the best option
and at the least cost.
References:
1. Interview carried out with Shubham S Jain Founder of GOWMA non – leather Pvt Ltd as
on 7th April 2018 & on 11th April 2018.
2. Interview carried out with Siddu the incharge at SANDBOX START-UPS, Deshpande
Foundation, Shirur park vidyanagar Hubli as on 7th April 2018.
3. Collected the information from Deshpande Foundation, BVB Campus as on 7th April
2018.
4. Collected the information from the websites www.gowma.com http://www.cec-
india.org/libpdf/1437550410LeatherIndustryinIndia.pdf.
5. Interview carried out with Navaneet G Malagi founder of Sakshi Financial Solution as on
6th April 2018.
6. https://www.ibef.org/industry/financial-services-presentation
7. https://blog.bajajfinserv.in/different-types-of-loans-available-in-india/
8. https://www.fastcompany.com/40475098/how-modern-meadow-is-fabricating-the-
animal-free-leather-of-the-future
9. https://www.huffingtonpost.com/ursula-nwobu/most-common-challenges-faced-by-start-
ups_b_11701900.html
10. http://www.ironmountain.com.sg/en/Knowledge-Center/Reference-Library/View-by-
Document-Type/Best-Practices/A/Addressing-4-Key-Challenges-In-The-Financial-
Sector.aspx