PROJECT PROFILE HURRAICHI CHAPPALS & SANDALS. Product code : Quality & Standards : As per customer specification and standards

Transcription

1 PROJECT PROFILE ON HURRAICHI CHAPPALS & SANDALS Product code : Quality & Standards : As per customer specification and standards Production capacity : Quantity 1,20,000 pairs Value Rs. 91,50,000/- Month & year. : December,2005 Prepared by : Small Industries Service Institute, E-17/18 Industrial Estate Naini, Allahabad Phone: (0532) Fax: (0532) (20)

2 INTRODUCTION: Hurraichi Chappals and Sandals are mainly used in Rajasthan and Gujarat. This Item is solely manufactured in India and not likely to have competition from other Countries. Its production and productivity have to be increased in relation to increasing Demand. The process of manufacture is on craft basis and fully hand-made. Standardization should be effected to ensure unformity in quality and increase in Production at minimum cost. This industry should be broad-based to enable trade to earn more and more foreign exchange and continue to maintain its grip; on the export market. Raw materials for the manufacture of these chappals and sandals are indigenously available and there is no dearth of raw materials as well as labour for manufacture of this item. There is, therefore, good scope for setting up SSI units for the said manufacture. MARKET POTENTIAL Leather footwear industry in India has been identified as thrust sector for export production endowed with rich cattle wealth, century old tradition of leather making skills and backed up by the most modern facilities. Indian Leather Footwear Goods,has over the years acquired a significant place in the world market. Today some 120 Countries import Indian Leather Footwear and Leather goods. Besides internal demand of leather products, the country has traditionally Remained as an exporter of leather goods, leather footwear. Of latae, however, the internal-demand has shown a rising trend. The Leather Sector occupies a prominent position in export profile of India.. In fact, this is one important industry where there is immense potential for growth and value addition. India has been steadily transforming its traditional leather industry in the past two Decades into a modern industry. There is beter application of new technologies for producing elegantly designed wide range of. footwear maintaining high standards and better design elements. It is expected that some units can be motivated to start the production of Hurraichi Chappals & Sandals to meet the export demand. BASIS & PRESUMPTION (i) (ii) the production is based on single shift basis of 8 hours per day and 25 working days in a month. Time period for achieving full capacity utilization is 3 years. (iii) Labour will be engaged on monthly basis keeping in view the present rates prevailing in the market. (21)

3 (iv) Rate of interest for fixed and working 15% (v) Margin money 25% (vi) Land and building rented built up area 100 Sq. Mtrs. IMPLEMENTATION SCHEDULE. It will take 6 months to 1 year time to complete all the formalities before starting the commercial production. TECHNICAL ASPECTS (i) PRODUCTION DETAILS AND PROCESS OF MANUFACTURE Hurraichi Chappal & Sandal upper straps are cut by hand/machine out of goat and sheep skins of bark turned leather and the laces/thongs. The upper components are then skived by upper skiving machine provided to obtain uniformity in thickness and ensure quality. - The cut -out laces are supplied to outside parties for weaving. pleated ready laces are fitted to the uppers along with other preliminary operations such as instep strap fitting, stiching, decorative creasing, punching, gimping, pinking, etc. finally as the upper components such as studs., flowers and other fittings, link loops etc. are assembled and fitted and the prick marks done on uppers. Thus, the uppers, ready for fitting between the top and bottom soles, are fitted in the slots marked on the top sole; and the finishing done by hand/machine. Then, they are paired sized and packed. ii) QUALITY SPECIFICATION At present, no quality specification are available for Hurraichi Chappal & Sandals. But for export orders, specifications are provided by the buyers only. Uppers and soles should be made of good quality Bark tanned leather in order to have uniform colour. Care should be taken to click the right components from the right portion of the leather. Before taking different components to the closing section, inspection is to be done to ensure quality. Good quality adhesive is to be used to ensure a proper bond between different components. iii) (iv) (v) (vi) PRODUCTION CAPACITY (Per annum) i) Quantity 1,20,000 pairs ii) Value Rs. 91,50,000 MOTIVE POWER 8 H.P. POLLUTION CONTROL: This industry does not generate any pollution. ENERGY CONSERVATION: Power operated machinery must be switched off when not in used. (22)

4 FINANCIAL ASPECTS 1. FIXED CAPITAL Land & Building Covered Area 100 Sq. Mtr. Rented Rs. 3000/- per month. 2. MACHINERY AND EQUIPMENT Sl. Machinery & IMP./ QTY. RATE Value No. Equipments IND. (Rs.) 01. Upper Leather Skiving Imp. 1 65,000/- 65,000 Machine 02 Upper Strap Cutting Ind. 1 25,000 25,000 Machine (For Lace Cutting) 03 Industrial Swing Ind. 4 10,000 40,000 Machine, Flat bed (45K) (Power ½ H.P.) 04 Bottom Sole Cutting Ind. 1 75,000 75,000 Press(Power operated) 05 Bottom Components Ind. 1 30,000 30,000 Splitting Machine (Power operated) 06 Rolling Machine Ind. 1 35,000 35,000 (Power operated) 07 Weighing Machine Ind. 1 10,000 10, Tools & Equipments 10,000 10, Wooden Lasts Ind ,000 pairs 10 Office Equipment 30,000 30, % 28, Cost of Dies Ind. 6 3,000 18, Spare Parts on 28,000 Imported 20% (23)

5 Sub- Total(A) 4,74,000 15% Pre-operative Expenses (B) 31,600 Total A+B 5,05,600 Total Fixed Capital Rs. 5,10,600/- WORKING CAPITAL PM; Personnel(Administrative and Supervisory) per month SI. Designation No. Salary Total (Rs.) Rs. 01 Manager cum Designer 1 5,000 5, Supervisor 2 4,000 8, Accountant cum Clerk 1 2,500 2, Peon-cum-Watchman 1 1,500 1, Skilled Worker 10 2,000 20, Semi-Skilled Workers 4 1,000 4, Helper-Part Time Chowkidar/Peon 1 1,500 1,500 Total 43,500 20% 8700 Grand Total 52,200 i) Raw Material (P.M.) (a) Ladies Chappal Sl. Description Qty. Rate Value (Rs) No. 01 Bark tanned Goat/Sheep 200 kgs. skins 200 kgs. 200/- kg. 40, Bark tanned Buff calf 125 kgs. 180/- kg. 22, Bark tanned Cow Hide 250 kgs. 175/- kg. 43,750/ (24)

6 04 Bark tanned Buff hide 350 kgs. 190/- kg. 66, Grindries For 5000 pairs 10/- prs. 50, Packing Material For 5000 pairs 5/- pair 25,000 Total 2,47,750 (b) Ladies s Sandal Sl. Description Qty. Rate Value No. (Rs.) 1. Bark tanned Goat/Sheep skins 125 Kgs. 200/kg. 25, Bark tanned Buff calf 70 kgs. 180/kg. 12, Bark tanned Cow Hide 125 kgs. 175/kg. 21, Bark tanned Buff hide 175 kgs. 190/kg. 33, Grindries For /pair 37,500 pairs 6. Packing Material For /pair 12,500 pairs Total: 1,42,725 (C) Gents Chappal Sl.No. Description Qty. Rate Value (Rs.) 1. Bark tanned Goat/Sheep /kg. 30,000 skins Kgs 2. Bark tanned Buff calf 80 kgs 180/Kg. 14, Bark tanned Cow Hide 150 kgs 175/kg. 26, Bark tanned Buff hide 175 kgs 190/kg. 33, Grindries For 20/pair 50, pairs (25)

7 6. Packing Material For 2500 Pairs 6/pair 15,000 Total: 1,68, Say Grand Total a+b+c 5,59,375 Say 5,59,400 ii) Utilities (PM) Sl. No. Description Amount (Rs.) 1. Power Water 500 Total: 7500 iii) Other Contingent Expenses (P.M.) Sl.No. Description Value (Rs.) 1. Rent 5, Postage & Stationery 2, Transport charges 4, Telephone 2, Repair & Maintenance 1, Advertisement & Publicity 3, Insurance 2, Misc. Expenses 1,000 Total: 20,000 iv) Total Recurring Expenditure (P.M.) Sl.No. Description Amount (Rs.) 1. Personnel 52, Raw Materials 5,59, Utilities 7, Other Contingent Expenses 20,000 Working Capital Per Month 63,91,00 Total Working Capital for 3 months : Rs. 19,17,300 (6,39,100x 3) (26)

8 TOTAL CAPITAL INVESTMEN Sl. No. Description Amount (Rs.) 1. Fixed Capital Working Capital for 3 months 19,17,300 Total: 24,27,900 MACHINERY UTILISATION The machinery utilisation will be the 60% during the first year of its production and will be reach 80% by the third year. FINANCIAL ANALYSIS i) COST OF PRODUCTION SI.No. Description Amount (Rs.) 1. Total Recurring Expenditure per year 76,69, Depreciation of Machinery & 10% 28, Depreciation on Office 20% 6, Interest on total 15% 3,47, Depreciation on tools & 20% Depreciation on wooden 20% Depreciation of 20% 3,600 Total: 80,72,650 TURN OVER (PER ANNUM) SI.No. Description Qty. Pcs. Value(Rs.) 1. Ladies Chappal 60,000 pairs Rs.70/pair 42,00, Ladies Sandal 30,000 pairs Rs. 75/pair 22,50, Gents Chappal 30,000 pairs Rs. 90/pair 27,00,000 Total: 91,50,000 (27)

9 3) NET PROFIT PER ANNUM Annual Turnover- Cost of Production : Rs. 91,50, = Rs /- 4) NET PROFIT RATIO Net Profit x 100 Turn over per annum = x ,50,000 = 11.7% RATE OF RETURN Net Profit x 100 = Total capital investment BREAK EVEN ANAL YSIS (i) Fixed Cost (Per Annum) x l00 24,27,900 = 44% Sl.No. Description Amount (Rs.) 1. Depreciation on machinery and equipment 28, Rent for one year 36, Depreciation on Office Equipment 6, Depreciation on Tools & 20% Depreciation on wooden 20% Interest on Capital Investment 3,47, % salary % of other Contingent Expenses 72,000 excluding Rent Total 7,62,010 BREAK EVEN POINT BEP = FIXED COST X 100 FIXED COST = PROFIT = x 100 = 41% 7,62, ,350 (28)

10 Name & address of Machinery & equipment suppliers:- 1. M/s Leather & packaging Machine Corporation, 1/23, B, Asaf Ali Road, New Delhi Singer Sewing Machine Co. Ltd,21, Netaji Subhash Marg, Darya Ganj,Delhi M/s Raj Machine Home, 35/116,D Lashkarpur, Kamla Nagar Agra M/s Precision Shoe Last Factory, 60, Industrial Estate, Nunhai, Agra. 5. M/s Sanghvi Shoe Accessories Pvt., Ltd., Agra, Mathura Road, Agra. 6. M/s Harman Sales Union, 24, Kala Bhavan, Mathew Road, Mumbai M/s Srinivasan, No. 32, Bishop Garden, Chennai M/s Solar Atur House, Warli Nagar, Mumbai M/s Tuin Star Engineering, No.2, Thiruneer Malai Road, Pammal, Chennai M/s Apparal & Leather Technics Pvt. Ltd., 515, Avanasi Road, Tirpur Name & addresses of Raw Material Suppliers. 1. M/s Shroff Sales Corporation, Thingki Mandi, Agra M/s Basant Leather Corporation, Thing ki Mandi, 3. M/s Esskay Sales Corporation, 4. M/s General Leather Store Hing Ki Mandi,Agra M/s Valliappa Leather Corporation 3/5 & 6, Narayana Chitty Street, Periamet, Chennai M/s T. Abdul Wahid & Co. 26, Veppery High Road, Chennai M/s Synthokem Industries, 5, Hindi Prachar Satha Street, Chennai M/s Zag Tanning, Zajmau, Kanpur. 9. M/s Super Tannery, Zajmau, Kanpur. (29)