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Canvas Shoes
Introduction
Canvas shoes are a casual wear item and
are extensively used by armed forces personnel, police, Home
guards, NCC and civilian personnel. In the present age of
health consciousness these are also utilized for jogging,
aerobic exercises. The poor and people with low income who
cannot afford costly leather shoes utilize it as a standard
wear for work. These shoes are very popular amongst students
and children. As the name suggests the shoes are made of canvas
cloth. The shoe upper is of canvas while the base is moulded
rubber. Its cheapness as well as its comfort is the main reasons
for its popularity. The technology for such shoes is available
with Government research laboratories.
2. Industry Profile and Market Assessment:
Footwear are an essential part of everyday
life through out the year be it during hot summer months of
winter. Both the summer and winter months are extreme in many
parts of the country. The feet have to be protected hence
it is essential to wear shoes. Canvas shoes are one of the
cheapest available for the purpose. Although shoes made from
other material such as leather, PVC etc. are also available
in the market but, are many times costly. Canvas shoes are
also a popular sportswear and are preferred foe children.
These shoes are extensively used by labourers, industrial
workers, farmers, and roadside vendors. There is a good demand
for such shoes as such a number of renowned shoe makers are
in the field.
The shoes manufactured by these big units have the market
in the richer class of the society and cannot be afforded
by the general public. A small scale unit with low overheads
can easily market its products with such units if it can keep
the prices low. The population of the country is nearing 120
crores, assuming that such cheap shoes can be afforded by
25% the requirement is 30 crore pairs over an extended period
assuming a life span of 3 years for a pair. The demand for
children shoes is higher as they grow fast and shoes have
to be replaced periodically. It has a good demand in rural,
urban areas and metropolitan cities. Once the product establishes
its Brand, export opportunities can also be explored. Middle
East countries and other western countries are places where
it has demand.
3) Manufacturing Process & Know How
The process of manufacturing is simple
and standardized. It is divided into four sections:
1. Rubber mixing section.
2. Canvas upper checking and sewing section.
3. Assembly section.
4. Finishing and packing section.
Rubber mixture for sole is mixed taking different ingredients
such as rubber, filler, sulphur, organic accelerators, pine
oil & resin. This is thoroughly mixed and kept in a tank
with electrically operated paddle. Naphtha is added and the
mixture is churned out for calendaring the cloth for making
rubberized cloth to be used as tongue, thick insole and for
applying this binder for lasting.
Various components of canvas upper are cut stitched, eyelets
are fixed on upper. The inner sole is placed on the lasts
and the upper is pressed with hand roller and the bottom is
pasted.
Cement is applied on the bottom of the shoe and sole is pressed
on it with the help of roller. Noak is pasted on the toe.
The pasted shoes are then vulcanized.
After vulcanization the shoes are cooled stripped from the
lasts and trimmed, inspected for defects and packed.
The Process flow Chart is presented as under:

Know how is available with Central Government
research Laboratories. The machinery is all indigenously
available.
The production capacity envisaged is 1.20 lakh pairs per
annum on single shift basis for 300 days.
4) Plant and Machinery:
The main plant and machinery required comprise
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Mixing Mill and accessories. - 1 no.
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Rubber Spreading m/c - 1no.
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Vulcaniser. - 1nos
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Baby Boiler - 1 no
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Embossing m/c - 1 no.
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Churner with motors. - 1 no
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Eyeleting m/c - 4 no
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Clicking Press with motors - 2 no
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Industrial power operated sewing m/c -
10 no.
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Shoe Lasts - 100 no.
-
Calendaring m/c.
-
Storage Tank for Naphtha
The total cost of machinery including
miscellaneous assets such as trollies, tools and equipment,
Transformer etc. is estimated to be Rs.17.03 lakhs.
The total requirement of power shall be 125 HP; the unit
will need 3000 lits of water daily.
6) Raw material and Packing Material:
The basic raw material for the unit
are canvas cloth, lining, Rubber insole, Rubber sheet for
toe, Insole calendar cloth, laces, packing material etc.
The total cost of raw material and consumables is estimated
to be Rs.30.31 lakhs per annum at rated capacity.
At 70% capacity in 1st year the cost
works out to Rs 21.22 lakhs.
7) Land and Building:
The unit will require a covered area of 600 sq. mts and
the same can be taken on a nominal rent of Rs 12000/- per
month.
8) Manpower:
For smooth functioning of the unit the requirement of man
power is expected to be around 37 persons.
| Sales person |
Self |
| Skilled Workers |
8 |
| Semi skilled workers
|
10 |
| Helpers |
5 |
| Supervisor |
1 |
| Watchman/Peon |
| The annual salary
bill is estimated to be around Rs.18.00 lakhs |
9) Sales Revenue: (100% capacity)
Selling price varies depending
on the product mix quality. An average price of Rs 70/-
per pair has been taken. The annual income at installed
capacity of 120000 pairs is Rs 84 lakhs.
10) Cost of Project:
|
|
Rs. lakhs
|
|
Land & Building
|
on rent
|
|
Plant & Machinery
|
17.03
|
|
Other assets
|
0.75
|
|
Contingencies
|
1.78
|
|
P & P expenses.
|
1.00
|
|
Margin money
|
3.10
|
|
Total
|
23.66
|
| |
|
| Means of Finance |
|
| Promoters Contribution |
8.24 |
| Term Loan |
15.42 |
| Total |
23.66 |
11) Profitability:(70%capacity)
| |
Rs. lakhs |
| Sales |
58.80 |
| Raw material |
21.22 |
| Salary |
18.00 |
| Utilities |
2.90 |
| Stores & Spares |
0.30 |
| Repairs & Maintenance |
0.36 |
| Selling expenses |
5.88 |
| Administrative expenses
|
0.60 |
| Depreciation |
1.70 |
| Interest on T.L |
2.00 |
| Interest on W.C |
0.60 |
| Cost of production
|
53.29 |
| Profit |
5.51 |
12) Requirement of Working Capital
| |
|
Margin |
W.C |
Margin Money |
| Raw material |
15 days |
30% |
1.06 |
0.32 |
| Stock of finished goods
|
15 days |
25% |
2.18 |
0.55 |
| Working expenses |
1 month |
100% |
1.50 |
1.50 |
| Sale on credit |
15 days |
25% |
2.94 |
0.73 |
| Margin money for W.C
|
3.10 |
13) Break Even point: 45%
Addresses of Machinery Suppliers
1. M/S Sohal Engg.
Works, L.B. Shastri Marg,
Mumbai 400078
2. M/s Indin Expellar Works P. Ltd.
Naroda Indl. Estate,
Ahmedabad 382330.
3. M/S Premier Engg.
Works, Sirhind,
Punjab
Contact for more information:
Information Manager
TIMEIS Project
E-mail: timeis@ficci.com

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