|
Children Shoes
|
Product Code
|
:
|
291101003 (Leather shoe)
|
|
Quality and Standards
|
:
|
As Per Buyer's Specification
|
|
Production Capacity
|
:
|
Qty. : 1,80,000 pairs (per annum)
Value : Rs. 49200000
|
| Uploaded
on |
: |
March
2007 |
Introduction
Children Shoes are used for protecting
the children foot from injuries from stones, nails, broken
glass pieces fallen on the road, infection from the dust,
dirt, mud, water and to feel comfort during different climatic
conditions. Children shoes in particular, are very important
in order to save the foot not only from above incidents but
also from the deformation of foot in the childhood because
of their softness and growing tendency. Now a days, the children
shoes are very common part of school uniforms introduced by
many governments as well as public schools and these are mainly
of a specific style i.e. derby with black colour. The shoes
worn by the children are multifunctional such as to serve
the purpose of uniform as well as for feeling comfort during
sitting, walking, playing and so to say for every casual and
rough uses. Therefore these type of shoes need to be well
designed in order to have enough space inside the shoe, flexible,
light weight, descent look in addition to correct fitting.
In this project, it has been proposed to manufacture both
children school shoes and children fancy shoes. Although these
products are available with different materials like coated
fabrics, textile, and a combination of variety of materials,
yet leather shoes are having popularity due to comfort, durability,
aesthetic look and up-manship. The children school shoes are
suggested to be made black coloured derby style with PVC soles
and the fancy shoes can be made with different styles such
as boots, trainers and other descent look models by using
single or multi coloured leather components and PVC or TPR
soles.
Market Potential
The demand of the Children shoes is increasing
day by day in tune with the growth of population, their economic
standards, education system and fashion consciousness every
where in the country. The increasing number of public schools
vis-a vis the number of school going children and foot care
awareness along with the fashion orientation increases the
demand of such products every day. Thus it is felt that there
is an ample requirement of children shoes in every locality.
Moreover, the export worthiness of such products from our
country is bright, seeing the present trend. Shoe units aiming
to manufacture children shoe of different types, can, therefore,
sustain viably by catering to the increasing needs.
Basis and Presumptions
This project profile has been prepared
based on the following assumptions:
|
1.
|
Working Hours
|
:
|
Double shift of 8 hours each i.e
16 hours a day for 300 working days in a year
|
|
2.
|
Capacity Utilisation
|
:
|
60% during first year
70% during second year
80% during 3rd year and onwards
|
|
3.
|
Entrepreneur
|
:
|
Preferably by one or group of promoters
having knowledge/experience in leather and footwear
field and /or venturing to start leather based units.
|
|
4.
|
Location
|
:
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Any where in India, preferably near
any township.
|
|
6.
|
Land and Building
|
:
|
Cost is calculated as per prevailing
market rates
|
|
7.
|
Important Raw Materials
|
:
|
Chrome tanned cow softy upper leather,
flexible insole and PVC/TPR Soles.
|
|
8.
|
Salary and Wages
|
:
|
All the employees are paid on monthly
basis.
|
|
9.
|
Transportation and Taxes on Purchase
|
|
Included in purchase price
|
|
10.
|
Power Charges
|
:
|
Rs.4 per KWH from power supply source
|
|
11.
|
Depreciation
|
:
|
5% on building and civil construction
10% on plant and machinery
25% on Tools and equipments
20% on furniture and fixture
10% on other fixed assets
|
|
12.
|
Margin Money
|
:
|
30% of total capital investment
|
|
13.
|
Interest Charges
|
:
|
12% has been calculated on total
capital investment.
|
|
14.
|
Fixed Cost For BEP Analysis
|
:
|
100% insurance, interest and depreciation
40% of total salary and wages
40% of total utilities and other Contingent expenses
excluding insurance
|
Implementation Schedule
|
Sl. No.
|
Activity |
Period
|
|
1.
|
Site selection, negotiation with
land lord, market survey, Preparation of project report
and other formalities |
2 months
|
|
2.
|
Seeking quotation of machines, purchase
and installation and power connection |
2 months
|
|
3.
|
Trial production, arranging working
capital, Procurement of raw material and market tie-up
|
2 months
|
|
|
Total period required for commencing
commercial production |
6 months
|
Technical Aspects
Process of Manufacture
In this project, the children shoes are
proposed to be manufactured in two different types i.e.:
(i) Children school shoes, and (ii) Children
fancy shoes. The former is derby type and is normally made
from black coloured chrome tanned cow softy upper leather
and the later is of fancy type with single or brilliant multi
colour. Both types are made in different sizes and fittings.
The manufacturing process outline is as
follows:
Designing and pattern cutting: As per
the selected designs, the patterns are prepared, checked for
accuracy, and then master patterns are developed. Then these
patterns are graded into different sizes and dies are prepared.
Clicking: The upper, lining and sock components
are cut from suitable materials by the help of dies with the
clicking press. While clicking, it is essential to consider
the importance of the components and the corresponding portion
of leather, directional properties of components and that
of leather portion, degree of defects, and the best possible
inter lock to have minimum wastage. The components are to
be necessarily marked with sizes and sides are kept separately
to avoid the confusion.
Closing: The cut components are checked
to sizes and defects, skived to the edges, folded and other
edge treatments are done as per specification. These are then
assembled together initially with adhesive and finally with
stitching. The eyelets are fixed, the upper is checked and
then sent for next operation.
Bottom components preparation: Bottom
components such as the insole, toe-puff and stiffeners are
cut from suitable materials and skived as per specification.
The PVC sole is cleaned with the solvent like Methyle-Ethyle-Ketone
(MEK) and the TPR sole is cleaned and applied with chemical
primer (Halogen) and dried.
Construction and shoe making: The toe-puff,
stiffeners are inserted between upper and lining at the toe
and back part. The insole is fixed on the last and the upper
is mounted (Lasting) onto it by pulling the toe part, back
part and finally the side portion. The edges are hammered
for smooth feather edge. The bottom filling is done into the
cavity formed due to lasting. The surface is then scoured
and roughened to get levelled but rough surface is then cleaned
with solvent like MEK and dried. Both the sole and lasted
upper surface are then applied polyurethane adhesive and allowed
to dry completely. The dried surfaces are then reactivated
to gain adhesion properties and then the sole is fitted on
the lasted upper accurately and pressed under sole attachment
machine for strong and permanent bond. In this condition the
shoe is kept for few hours for a permanent shape.
Finishing:The upper and sole is then cleaned
and finished with the wax and other finishing chemicals. The
shoe is then de-lasted, cleaned from inside, inserted with
stamped sock lining, the laces are attached, inspected and
packed for dispatch.
Quality Control and Standards
The quality of children shoe has to be
maintained as per buyer's specification. However, the main
criteria for quality control are selection of suitable materials
(especially the leather with required thickness, shade, strength
and softness) cutting components from suitable portions of
leather, assembling, regular stitching with suitable thread
with specified stitch length and finishing, lasting, alignment,
sole attachment, finishing and packing.
Production Capacity
|
i) Children school shoes 90,000
Pairs of
|
Rs. 19200000
|
|
ii) Children fancy shoes 90,000
Pairs of
|
Rs. 30000000
|
Pollution Control
Although shoe industry does not discharge
any pollutants, the following precautions are to be considered
for a better environment:
The adhesives prescribed are mainly solvent
based and are inflammable and toxic in nature. It can cause
problems, if inhaled. Therefore, a solvent extraction system
is required in adhesive application area. Further the dust
developed during scouring and roughing or even during finishing
are necessarily to be collected through an exhaustion system
attached to the concerned machine for making the work place
dust free.
Energy Conservation
All machines are power driven and are
run individually, whenever required.
Financial Aspects
A. Fixed Capital
|
(i) Land and Building
|
(Rs.)
|
|
Land 500 sq. mtr @ Rs 3500/- per
sq.mtr
|
1750000
|
|
Office building, Lab. Store 100sq.mtr.
@ 7000/mtr.
|
700000
|
|
Floor area construction ,factory
shed, Boundary wall etc. 300 sq.mtr. @ 5000
|
1500000
|
|
Total
|
3950000
|
(ii) Plant and Machinery
| Sl. No |
Name of the Machine
and Specification |
Ind/ Imp |
Qty (Nos.) |
Price (Rs) |
Total (Rs) |
| 1. |
Swing arm hydraulic clicking
press, 16 ton |
Ind |
1 |
220000 |
220000
|
| 2. |
Pneumatic stamping machine-stamping
wheel (0-9 Nos,) (A-Z) |
-do- |
1 |
110000 |
110000
|
| 3. |
Upper Skiving machine
|
-do- |
2 |
60000 |
120000
|
| 4. |
Flat bed single needle
sewing machine |
-do- |
3 |
30000 |
90000
|
| 5. |
Post bed single needle
sewing machine |
-do- |
3 |
54000 |
162000
|
| 6. |
Roughing and Scouring
machine |
-do- |
1 |
4,000 |
45000
|
| 7. |
Reactivation chamber
|
-do- |
1 |
22000 |
22000
|
| 8. |
Pneumatic Sole attachment
machine |
-do- |
1 |
70000 |
70000
|
| 9. |
Combined finishing machine
|
-do- |
1 |
36000 |
36000
|
| 10. |
Pneumatic de-lasting
machine |
-do- |
1 |
30000 |
30000
|
| 11. |
Spray booth and spray
gun |
-do- |
1 |
13000 |
13000
|
| 12. |
Air compressor and distribution
system |
-do- |
1 |
23000 |
23000
|
| 13. |
Lasting jack |
-do- |
10 |
60000 |
60000
|
| 14 |
Cost of tube well, OHD,
Water Supply system |
|
|
|
100000
|
| |
Excise, sales tax &
erection and installation charges 40% of total of 1 to
13 |
|
|
|
400400
|
| |
Total
|
1501400
|
(iii) Tools
and Equipments and Other Fixed Assets
| Sl. No. |
Name of the Equipments
|
Ind/ Imp
|
Qty (Nos.)
|
Price (Rs)
|
Total (Rs)
|
| 1. |
Shoe designer's tool kit
|
Ind
|
2 set
|
5000
|
10000
|
| 2. |
Shoe maker's tool kit
|
-do-
|
10 sets
|
2500
|
25000
|
| 3. |
Machine maintenance and electricians
tool kit
|
-do-
|
1 set
|
LS
|
5000
|
| 4. |
Clicking dies-2 sets each
|
-do-
|
20 sets
|
7200
|
144000
|
| 5. |
PVC last
|
-do-
|
200 prs.
|
600
|
120000
|
| 6. |
Clicking pads, spray gun, and other
misc. equipment
|
-do-
|
LS
|
-
|
48000
|
| 7. |
Testing equipments-thickness gauge,
measuring scales etc.
|
-do-
|
-
|
LS
|
30000
|
| 8. |
Workshop tables, racks etc.
|
-do-
|
-
|
LS
|
100000
|
| 9. |
Office furniture and equipments
|
-do-
|
-
|
LS
|
200000
|
| |
Total
|
682000
|
| |
(iv) Total Plant and Machinery,
Tools and Equipments, Furniture and fixture and Other
Fixed Assets (ii + iii)
|
2183400
|
|
(v) Pre-operative Expenses
|
(Rs.)
|
|
1.
|
Preparation of project report and
consultancy
|
100000
|
|
2.
|
Administrative expenses
|
20000
|
|
3.
|
Travelling, Market development and
tie-up
|
50000
|
|
4.
|
Other formalities and expenses prior
to production
|
50000
|
|
|
Total
|
220000
|
|
|
Total Fixed Capital Requirement
|
(Rs.)
|
|
1.
|
Land & Building
|
3950000
|
|
2.
|
Plant & Machinery
|
1501400
|
|
3.
|
Tools & other Equipments
|
682000
|
|
4.
|
Other Pre-Operative Expensive
|
220000
|
|
|
Total
|
6353400
|
|
|
Total Fixed Capital Requirement
|
6353400
|
B. Working Capital
(per month)
(i) Raw Materials
(Including Packaging Materials) (per month)
|
Sl. No.
|
Name of the Materials
|
Quantity |
unit |
Price (Rs.)
|
Total (Rs.)
|
|
1
|
Chrome tanned cow softy upper leather
Black colour (1.2 mm)
|
10000 |
Sq.ft. |
60
|
600000
|
|
2
|
Chrome tanned cow softy upper leather
Fancy colour (1.2 mm)
|
13000. |
Sq.ft |
70
|
910000
|
|
3
|
Lining leather (1.0 mm)
|
7500 . |
Sq.ft |
28
|
210000
|
|
4
|
Drill Cloth for lining
|
600 |
meters |
40
|
24000
|
|
5
|
Cellulose Board
|
750 |
sheets |
125
|
93750
|
|
6
|
PVC soles Children school Shoes
|
8000 |
pairs |
34
|
272000
|
|
7
|
PVC/ TPR soles for fancy shoes
|
8000 |
pairs |
50
|
400000
|
|
8
|
Adhesive- rubber Solution
|
150 |
liters |
120
|
18000
|
|
9
|
Adhesive- polyurethane
|
300 |
liters |
180
|
54000
|
|
10
|
Adhesive- polychloroprene
|
150 |
liters |
120
|
18000
|
|
11
|
Eyelet, lace and thread and other
grindery
|
10 |
Per pair |
15000
|
150000
|
|
12
|
Packing materials
|
8 |
Per pair |
15000
|
120000
|
|
|
Total
|
2869750
|
(ii) Salary and Wages (per month)
A. Personnel For Workshop
| Sl. No |
Name of the Post |
Numbers
|
Salary
(Rs.)
|
Total (Rs.)
|
|
1
|
Production manager (Leather
technologist) |
1
|
20000
|
20000
|
|
2
|
Designer |
2
|
9000
|
18000
|
|
3
|
Supervisors-Technical
|
2
|
7000
|
14000
|
|
3
|
Skilled worker/ Machine
operator |
30
|
6000
|
180000
|
|
4
|
Semi skilled worker |
20
|
4500
|
90000
|
|
5
|
Unskilled worker |
8
|
3000
|
24000
|
|
6
|
Electrician and mechanic
|
2
|
5000
|
10000
|
| |
Total |
356000
|
|
B. Personnel For Administration
|
| Sl. No. |
Name of the Post |
Numbers
|
Salary (Rs.)
|
Total (Rs.)
|
|
1
|
Accountant cum Cashier
|
1
|
8000
|
8000
|
|
2
|
Store Keeper |
1
|
4500
|
4500
|
|
3
|
Watchman |
2
|
3000
|
6000
|
| |
Total
|
18500
|
| |
Total Salary and Wages per month
(i+ii)
|
374500
|
| |
Add 20% perquisites
|
74900
|
| |
Total
|
449400
|
|
(iii) Utilities (per month)
|
(Rs.)
|
|
Electricity
|
15000
|
|
Total
|
15000
|
| |
(iv) Other Contingent Expenses
(per month)
|
Rs.
|
| i. |
Repair and maintenance
|
7500
|
| ii. |
Other consumables
|
10000
|
| iii. |
Insurance
|
6000
|
| iv. |
Travelling Expenses
|
10000
|
| v. |
Telephone, fax and other postal
expenses
|
10000
|
| vi. |
Stationery and printing
|
10000
|
| vii. |
Other miscellaneous expenses
|
20000
|
| |
Total
|
73500
|
| |
(v) Total Recurring Expenses
(per month) (i+ii+iii+iv)
|
3407650
|
(vi) Total Working Capital
|
Requirement for 1 and half Months
Rs. 1.5 x 3407650
|
5111475
|
C. Total Capital Investment
| i. |
Fixed capital |
6353400
|
| ii. |
Working capital |
5111475
|
| |
Total
|
11464875
|
Financial Aspects
|
|
(1) Cost of Production (per annum)
|
(Rs.)
|
|
i.
|
Recurring Expenses |
40891800
|
|
ii.
|
Depreciation on Machinery @10% |
150140
|
|
iii
|
Depreciation on Building@ 5 % |
197500
|
|
iii.
|
Depreciation on Tools and Equip.@
25% |
170500
|
|
iv.
|
Depreciation on Furniture and Fixture
@20% |
20,000
|
|
v.
|
Interest on Total capital investment
@ 12% |
1634040
|
|
|
Total
|
43063980
|
|
|
or Say
|
43063980
|
|
|
(2) Expected Sales (per annum)
|
|
(Rs.)
|
|
i.
|
Children school shoes
|
80,000 pairs @ 250
|
19200000
|
|
ii.
|
Children fancy shoes
|
100,000 pairs @ 300
|
30000000
|
|
|
Total
|
49200000
|
|
(3) Net profit (per year)
|
|
|
| |
|
Expected Sales – Cost
of Production |
|
|
|
Rs. 49200000- 43063980
|
|
|
=
|
6136020
|
|
(4) Net Profit Ratio
|
|
|
|
|
|
Net Profit (per year) x 100
|
|
|
=
|
———————————
|
|
|
|
Turn-0ver (per year)
|
|
|
|
|
|
|
=
|
12.47%
|
|
|
|
|
|
(5) Rate of Return
|
|
|
|
|
|
Net Profit (per year) x 100
|
|
|
=
|
———————————
|
|
|
|
Total Investment
|
|
|
|
|
|
|
=
|
14.25%
|
(6) Break-even Point
| |
Fixed Cost |
(Rs.) |
| i) |
Depreciation on building(@5%) |
197500
|
| ii) |
Depreciation on machinery(10%) |
158310
|
| iii) |
Depreciation on office equipment(20%)
|
20,000
|
|
iv)
|
Insurance
|
48,000
|
| v) |
Interest on total capital(12%) |
1634040
|
| vi) |
40% of salary |
2157120
|
| vii) |
40% of other contingencies and utilities
|
223200
|
| |
Total Fixed Cost |
4,285,670
|
|
B.E.P.
|
|
|
|
|
|
Fixed cost x 100
|
|
|
=
|
————————
|
|
|
|
Fixed cost + Profit
|
|
|
|
|
|
|
=
|
41.12
|
Addresses of Manufacturers and Suppliers
of Machines
1. NSIC Technical Service Centre
Sector B-24, Guindy Indl. Estate,
Ekkaduthangal, Chennai-32
2. M/s. Atlanta Trading (P) Ltd.,
ATUR House, Worli Naka,
Mumbai - 18
3. M/s. Twin Star Engineering,
No. 98, Pammal Main Road,
Pammal, Chennai- 75
4. M/s. S.P. Engineering Works,
Dayal Bagh Road, New Agra-5
5. M/s. Raj Machine Home,
Opp. New Jyoti building,
35/44 Karabala Road,
Agra-5
Addresses of Material Manufacturers/Suppliers
1. M/s. Alpha Global,
445/1, 6th Cross, 7th Block,
Jayanagar KPM Road,
Bangalore - 560 082
2. M/s. Amjad Finished leather Co.
54 maddox street, Choolai,
Chennai - 112
3. M/s. Arkay Leathers,
No.-3,Third Floor,
Crown Court, 34,
Chathedral Road,
Chennai- 86
4. M/s. Mow Chung Tannery Pvt. Ltd.
47, South Tangra Road,
Kolkata- 46.
5. M/s. Anka India Ltd.
Vand PO – Kherki Daula,
Gurgaon, - 122001(Haryana)
(for soles)
6. M/s. Chem Crown India Ltd.
Real Chambers, Maddox,
3rd Floor, Vepery,
Chennai- 600 012
7 M/s. Enkay HWS India Ltd.
B-3 S.M.A. Co-op Ind. Estate,
G.T. Karnal Road,
Delhi - 110 033
(for soles)
8. M/s. Flexolle Raman Ltd.,
Mysore – Ooty Road,
Thandavapura – 571 325
(for insole)
9. M/s. Pidilite Industries Ltd,
J.B.Marg, Nariman Point,
Mumbai
(for adhesive)
10. M/s. APL Poly Fab Pvt. Ltd.,
48 C, Matheswar Tala Road,
Kolkata- 46
(for lining)
11. M/s. Coats India Ltd,
144, M.G. Marg,
Bangalore-01
(for stitching thread)
12. M/s. Asia International,
1523, Qasimjan Street,
Lal Kuan, New Delhi
(for fasteners)
Contact for more information:
Information Manager
TIMEIS Project
E-mail: timeis@ficci.com
|
