Supplier Due Diligence

Looking to do business with new vendors, but have limited information about them,  these simple supplier due diligence methods can save you lot of time and money.

  • The firm and promoters:

Information on suppliers experience in the industry and   their financial profile can be found through the following sources.

Table 1: Resources for supplier due diligence


  •     Technical competence and after sales service:

This comprises information on supplier’s capacity, type of machines, products and testing facility. Some of the sources for obtaining this information are provided below:

1. Product certifications

In some industries, where there are industry specific quality certifications such as HCAAP for food processing, CE for electronics, NABL for healthcare/hospitals, the technical due diligence requirements are reduced to a large extent.

2. Industrial goods market places such as India Mart

These website allow you to search for a number of suppliers for a product and have information on production capacity, product certification, and product range. Some of the websites have user ratings, which may offer some perspective on the vendor.

Most important part of the due diligence is to ascertain if vendor’s vision for his business is compatible with your expectations from the vendor.  For example, for a company that is concentrating on minimizing product returns, the vendors would also need to be obsessed with quality.

How can we help?

FineTrain enables entrepreneurs to assess and understand new business opportunities. Our services include supplier due diligence, market research and business feasibility studies. We can identify new vendors for you and also assist you in doing due diligence of your existing vendors.


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On Demand Laundry Service

On demand laundry refers to a service whereby people/organizations can outsource the washing, drying and ironing of their clothes at their convenience. The service which has been traditionally provided by dhobis is now attracting new players, who take order through a website/app, and provide delivery at the customers’ doorstep.

The customers include urban population, people living in hostels, paying guest accommodation as well as institutions such as Indian Railways, hotels, hospitals and guest houses who are looking to outsource their laundry services. The opportunity is large and is estimated to be over Rs. 5200 crores.[1]

Hyderabad Market

Other than the neighborhood dhobi, there are a number of organized players already in the market (see table 1). These players offer self-service (whereby people can wash their clothes themselves by using the washing machines provided by the company) as well as pick up, wash and delivery of clothes.

Table1: Hyderabad market


 Capital requirements and profitability

The capital is required for rentals, machinery, working capital and marketing expenses. The machinery includes washer, water remover, dryers and ironing equipment.  Price of the machinery would vary based on the capacity of machine and can be up to Rs. 7 lakhs for a capacity of  60 kg/cycle. Further, one needs funds for paying the rent, electricity bills and marketing expenses. As such, the business can be started within a budget of Rs. 20 lakhs and profitability would depend on your ability to market your services.

How can we help you

FineTrain enables entrepreneurs to assess and understand new business opportunities. Our services include market research, business feasibility studies and business diagnostics. We can help you understand the feasibility and viability of laundry services and related opportunities including market study, machinery, overall capital requirements and profitability.


Reach us:

Call us @ 800 888 4932,

Write to us-

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[1] As per KPMG report the organised laundry market is estimated to around Rs. 5200 crores.

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