|
Full PVC Footwear
| Product Code |
: |
301201005
|
| Quality and Standards
|
: |
(1) PVC Sandals IS 2167:1972
(2) PVC Industrial Boots IS 12254:1993
|
| Production Capacity
|
: |
Quantity: Pairs 1,50,000
Value: RS. 41,25,000
|
| Uploaded on |
: |
March 2007 |
Introduction
Full PVC Footwear such as Chappal, Sandals
and Shoes are popular in Indian Market due to their cheap
prices, durability and easy maintenance and affordability
by a common man. Used PVC footwear containing basic rawmaterial
i.e. PVC can again be used for making cheaper types of footwear.
The plant and machinery and raw materials are available indigenously.
The PVC Footwears are generally light weight and very comfortable
to wear in rainy seasons.
Market Potential
PVC Footwears were introduced in 1964
and it gained momentum in 1967. Initially, plants and moulds
were being imported generally of multisation type. Although
the capacity creation was restricted due to shortage of rawmaterial,
additional capacity continued to be created with indigenously
available two-station machinery and moulds. The capacity at
present is estimated 300 million pair per annum. There is
scope for setting up these units in rural and backward areas
using PVC granules in combination units PVC Scrap materials.
Basis and Presumptions
It is proposed to manufacture 500 pairs
per day on double shift(each shift=8hr) basis of 16 hours
duration and 25 working days in a month.
The project may take 3 year to achieve
full capacity utilisation depending on various factors.
Labour charges has been given on per month
basis including 15% of perquisites for 25 working days.
The rate of interest for both fixed and
working capital is assumed at 12% per year.
The entrepreneur is expected to raise
20 to 25% of the capital as margin money.
The operative period of the project may
be given 10 to 15 years considering obsolescence of technology.
The loan may be paid back within 10 years. The unit is proposed
to function in own building.
Cost of machinery and equipment has been taken as per the
rates quoted by machinery manufacturers/suppliers.
Implementation Schedule
It is assumed that the rented building
is available in the area of implementation of the Scheme for
the entrepreneur. Considering the remaining activities, a
tentative schedule of implementation is given below:
|
Sl. No.
|
Activity
|
Duration (in Week)
|
|
1.
|
Arrangement of Finance
|
1st to 8 th
|
|
2.
|
Arrangement of Electric Supply
|
8th to 30 th
|
|
3.
|
Procurement of Machinery
|
15th to 30th
|
|
4.
|
Selection of personnel
|
20th to 30th
|
|
5.
|
Installation of Machinery
|
30th to 38th
|
|
6.
|
Trial Production
|
39th to 40th
|
|
7.
|
Commencement of Commercial Production
|
40th
|
The unit is expected to start commercial
production from 40th week onwards.
Technical Aspects
Process of Manufacture
As per the design of the sample, PVC Footwear
to be manufactured, the moulds are obtained and fitted in
the machine. Then the PVC compound is fed according to requirement
into a heated cylinder from sopper either in strip, granular
or powder form. Ceramular form is more common. The Injection
Cycle starts with closing and locking of the moulds under
pressure either applied by hand or mechanical levers or automatically
by hydraulic or pneumatic power. When PVC in the cylinder
is sufficiently softened by heat, the same is forced forward
by ram or screw action through an intermediate channel known
as ‘SPRUE' into the mould until it has cooled down to a state
of sufficient rigidity and the pressure in the mould relaxed.
The time cycle, therefore, can be adjusted into several stages,
namely, mould filling time, dwell time under pressure, cooling
time and mould opening time. The cooling time usually is the
longest of all and has to be cut especially in small machine
and the same has been recommended in the project.
PVC compounds are available as natural/transparent
granules. Prior to use, colour concentrate granules known
as master batches are mixed with the natural PVC Compound
in the required proportion to give the desired colour. Initial
mixing can be done in any convenient container units, a scoop
or small showel. The final mixing is automatically achieved
in the cylinder of the moulding machine.
The PVC compound, suitably mixed with
the master batch is fed into the sopper of the machine. Normally
10 to 12 kg. PVC compound are fed at a time. Shore hardness
of 70 to 78 for PVC granules temperature of 160oC and pressure
of 80 lbs/square inch gives satisfactory results.
The main operations are:
1. Feeding of PVC granules into the sopper
2. Trimming of surplus materials
3. Cleaning and spraying (if required)
4. Fixing of fittings
5. Checking and Packing.
Quality Control and Standards
Following specifications are followed
to customer's requirements:
1) PVC Sandals IS 2167:1972
2) Polyvinyl Chloride Resins Method of text IS 4669:1968.
Production Capacity
| Quantity |
: |
1,50,000 pair |
| Value |
: |
Rs. 41,25,000 |
| |
|
|
| Motive Power |
|
2 KW. |
Pollution Control
There is no pollution in the manufacturing
of PVC Footwear.
Financial Aspects
A. Fixed Capital
| (i) Land and Building |
Amount
(In Rs.)
|
| (i) Land 500 sq. mtr. @ Rs. 3500
per sq. mtr including registration |
1750000
|
| (ii) Cost of land development, fencing,
approach road, inside roads, land scaping, drainage etc.
@ Rs. 1000 per sq. mtr. |
500000
|
| (iii) Total built-up area 425 sq.
mtrs. as follows: |
|
| Administrative building 75 sq. mtrs.
construction cost @ Rs. 7,500 per sq. m |
562500
|
| Factory shed 300 sq. mtrs. construction
cost @ Rs.5000 per sq. mtr. |
1500000
|
| Stores, staff canteen etc. 50 sq.
mtrs. @ Rs. 6,000 per sq. mtr. |
300000
|
| Water System (including Bore Well
+ over head tank etc) |
500000
|
| Total civil cost= cost of land +
building = 17,50,000+3362500 |
5112500
|
(ii) Machinery and Equipments
|
Sl. No.
|
Description
|
IMP./ Ind.
|
Qty. Nos.
|
Value (Rs.)
|
|
1.
|
Six Station PVC Injection Moulding
Machine fully automatic Rotary Type
|
Ind.
|
1
|
1000000
|
|
2.
|
Cost of Moulds 4 Sets each consists
of four sizes sandal and shoes
|
|
1
|
200000
|
|
3.
|
Tools and Equipments/ Jigs and Fixtures
|
|
|
50000
|
|
4.
|
Cost of Office Equipments, Working
Table, Racks, Trollies, Stools etc.
|
|
|
250000
|
|
5
|
Excise, sales tax & erection
and installation charges 40% of total of 1 to 4
|
|
|
600000
|
|
|
Total(ii)
|
2100000
|
|
|
(iii) Pre-operative Expenses
|
100000
|
|
|
Total(i+ii+iii)
|
7312500
|
B. Working Capital
(per month)
(i) Personnel
(per month)
|
Sl. No.
|
Designation
|
No.
|
Salary (Rs.)
|
Total (Rs.)
|
|
1.
|
Manager
|
1
|
15,000
|
15000
|
|
2.
|
Engineer Mechanical/Electrical
|
1
|
10,000
|
10000
|
|
3.
|
Designer
|
2
|
7,000
|
14000
|
|
4.
|
Supervisor
|
2
|
7,000
|
14000
|
|
5.
|
Accountant/Cashier
|
1
|
6000
|
6000
|
|
6.
|
Clerk-cum-typist
|
1
|
5,000
|
5000
|
|
7.
|
Chowkidar
|
1
|
3000
|
3000
|
|
8.
|
Skilled Workers
|
6
|
6,000
|
36000
|
|
9.
|
Un-skilled Workers
|
12
|
4000
|
48000
|
|
|
Total
|
151000
|
|
|
22% Perquisites on Total Salary
|
33220
|
|
|
Total
|
184220
|
|
|
Say
|
184220
|
(ii) Raw Material (per month)
|
Sl. No.
|
Description
|
Qty.
|
Unit
|
Rate/unit (Rs.)
|
Value (Rs.)
|
|
1.
|
PVC Granules
|
5600
|
Kg
|
70
|
392000
|
|
2.
|
Master Batch (Colour)
|
110.
|
Kg
|
130
|
14300
|
|
3.
|
Fittings, Buckles, Button and Lacer
etc.
|
12500
|
Pairs
|
5
|
62500
|
|
4.
|
Packing Material
|
12500
|
Pairs
|
4
|
50000
|
|
|
Total
|
518800
|
| (iii) Utilities
(per month) |
(Rs.)
|
|
i)
|
Power 5,000 kWH
|
25000
|
|
|
Total
|
25000
|
(iv) Other Contingent Expenses (per month)
| Sl. No |
Description |
Value (Rs.) |
|
1.
|
Repair and Maintenance
|
10000
|
|
2.
|
Postage and Stationery
|
15000
|
|
3.
|
Travelling Expenses
|
15000
|
|
4.
|
Telephone/internet etc
|
10000
|
|
5.
|
Consumable Stores |
20000
|
|
6.
|
Advertisement and Publicity
|
100000
|
|
7.
|
Insurance |
7000
|
|
8.
|
Sales Expenses |
40000
|
|
9.
|
Misc. Expenses |
20000
|
| |
Total
|
237000
|
(v) Total Working Capital (per month)
|
Sl. No.
|
Description
|
Amount (Rs.)
|
|
1.
|
Personnel
|
184220 |
|
2.
|
Raw Material
|
518800 |
|
3.
|
Utilities
|
25000 |
|
4.
|
Other Contingent Expenses
|
237000 |
|
|
Total
|
965020 |
vi) Working capital is considered
for an average working Capital cycle of 1½ months
|
Hence, Working Capital (965020 *
1.5)
|
1447530
|
C. Total Capital Investment
| Sl. No. |
Description
|
Amount (Rs.)
|
| 1. |
Fixed Cost
|
7312500
|
| 2. |
Working Capital
|
1447530
|
| |
Total
|
8760030
|
|
Machinery Utilisation
|
70% - 80%
|
Financial Analysis
(1) Cost of Production (per annum)
|
Sl. No.
|
Description
|
Amount (Rs.)
|
|
1.
|
Total Recurring Expenditure
|
11580240 |
|
2.
|
Depreciation on Machinery @ 10%
|
120000 |
|
3
|
Depreciation on Building @ 5%
|
255625 |
|
4.
|
Depreciation on Tools-dies @ 25%
|
12500 |
|
5.
|
Depreciation on Furniture @20%
|
50000 |
|
6.
|
Interest on Total Investment @ 12%
|
1051204 |
|
|
Total
|
13069569 |
(2) Turnover (per annum)
|
Sl. No.
|
Item
|
Qty.
|
Rate (Rs.)/pair
|
Value (Rs.)
|
|
1.
|
PVC Shoes and Sandals pairs
|
1500000
|
100
|
150000000
|
|
(3) Net Profit (per annum)
|
|
|
|
|
=
|
Total Turnover – Cost of Production
|
|
|
=
|
1,50,00,000- 13069569
|
|
|
=
|
1930431 |
|
(4) Net Profit Ratio
|
|
|
|
|
|
Net profit x 100
|
|
|
= |
————————
|
|
|
|
Turnover per annum
|
|
|
|
|
|
|
|
1930431 x100
|
|
|
= |
————————
|
|
|
|
1,50,00,000
|
|
|
|
|
|
|
= |
1.29 |
|
|
|
|
|
(5) Rate of Return on Total Capital
Investment
|
|
|
|
Net Profit x 100
|
|
|
= |
——————————
|
|
|
|
Total Capital Investment
|
|
|
|
|
|
|
|
1930431 x100
|
|
|
= |
——————
|
|
|
|
13069569
|
|
|
|
|
|
|
= |
14.77 |
(6) Break-even
Point
Fixed Cost (per
annum)
| Sl. No. |
Description |
Amount (Rs.)
|
| 2. |
Depreciation on Machinery
@ 10% |
120000
|
| |
Depreciation on building
@ 5% |
255625
|
| 3. |
Depreciation on Tools-dies
@ 25% |
12500
|
|
4.
|
Depreciation on Furniture @20%
|
50000
|
| 5. |
Interest on Total Investment
@ 12% |
1051204
|
| 5. |
40% of Salary Wages
|
884256
|
| 6. |
40% of other Contingent
expenses |
1137600
|
| |
Total
|
3511185
|
| B.E.P. |
|
|
| |
|
Fixed Cost x 100 |
| |
= |
———————— |
| |
|
Fixed Cost +Profit |
| |
|
|
| |
|
3511185 x 100 |
| |
= |
———————— |
| |
|
3511185 + 1930431 |
| |
|
|
| |
|
3255560 x100 |
| |
= |
———————— |
| |
|
5441616 |
| |
|
|
| |
= |
59.83% |
Addresses of Machinery and Equipment
Suppliers
1. M/s. Indian Hydraulic Industries,
70, Najafgarh Road,
New Delhi –15
2. M/s. J.K Traders & Engineering,
Industrial Area, Kirti Nagar,
New Delhi – 15
3. M/s. Ambika Dies and Moulds
B-217, Naraina Industrial Area,
Phase-1, New Delhi –28
4. M/s. National Engineering Works
New Nagapada Road,
Mumbai-8
5. M/s. R.H. Windser India Ltd.,
E-7, U. Road,
Thana Indl. Estate,
Mumbai.
Raw Material Suppliers
1. M/s. Pioneer Plastic Industries,
Industrial Estate, Okhla,
New Delhi – 20
2. M/s. National Organic Chemical Industries
Ltd.
Worli, Mumbai – 18
3. M/s. Calico Plastic and Chemicals
Anik Chamber,
Mumbai – 400 074
4. M/s. Chemicals and Plastic,
Mettur, Tamil Nadu
5. M/s. Kundatia Industries,
No. 69, Najafgarh Road,
New Delhi.
6. M/s. Omega Polymicrons Pvt. Ltd.
Meerut Road,
Mawana- 250401
Meerut (U.P.)
Contact for more information:
Information Manager
TIMEIS Project
E-mail: timeis@ficci.com
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