|
Industrial Hand Gloves
| Product Code |
: |
292007000 |
| Quality and Standards
|
: |
The following Indian
Standard specifications are available to guide the manufacturer
of industrial hand gloves and to maintain quality control.
Leather gauntlets for workers IS 2573:1963.
Leather gauntlets for workers in iron and steel industry
IS 2574:1963
Leather Mittens for workers in iron and steel industry.
IS 3575:1963
The split chrome leather used must have been processed
properly to give the required pliability and stitch tear
strength for assuming quality of gloves produced. The
thread used for stitching must also conform to the prescribed
standard. |
| Production Capacity
|
: |
Qty. : 1,50,000 pairs
(per annum)
Value : Rs.5250000 |
| Uploaded
on |
: |
March
2007 |
Introduction
Industrial hand gloves serve as an item
of protective apparel for workers in factories. Hand gloves
are of various types and sizes. Fast moving sizes are 14",
16", 18" etc. The materials that go in the production
of hand gloves vary from cotton fabrics and asbestos to variety
of leathers. Leather, however, since supreme in the production
of industrial hand gloves. Amongst leather chrome tanned split
leather is predominantly in use possibly because of its cheap
price and peculiar qualities needed for hand gloves as compared
to other kind of leather. Chrome tanned split leather imparts
special qualities to withstand roughness of the handling material
and gives enough flexibility and softness for the hand to
move in the gloves easily and swiftly while working in the
workshop. Such industrial gloves are widely used in industry,
Railway and Defence. Due to rapid industrialization and expansion
of railway the use of industrial hand gloves is expected to
grow considerably.
Market Potential
Looking to the internal and external demand
it appears that we are not in a position to cope with the
demand and as such there is a good scope for starting new
units for manufacture of industrial hand gloves. Fortunately
the raw material is available in the country especially split
leather due to increase in production of finished leather
based on hides.
Basis and Presumptions
1. The production is based on a double
shift, where shift is of 8 hours per day and 25 working days
in a month.
2. Time period for achieving full capacity
utilisation is 3 years.
3. Labour will be engaged on monthly basis
keeping in view the present rate prevailing in the market.
4. Rate of interest for fixed and working
capital @ 12% per annum.
5. Margin Money, 25%
6. Land and Building, own. Builtup area,
100 Sq. meters.
Implementation Schedule
It will take one year to complete all
the formalities before starting the commercial production.
Technical Aspects
Process of Manufacture
The leather is checked for uniform thickness,
holes and flying cuts, if any. It is then marked with the
pattern and then cut with the help of scissors or clicking
knife into different components. After stitching all the components
suitably, the gloves are turned inside out. The gloves are
then ready for packing and despatch.
Production Capacity
| (a) Industrial hand
gloves |
: |
1,50,000 pairs (per
annum) |
| (b) Value |
: |
Rs.5250000 |
Pollution Control
This industry does not create any kind
of pollution and as such there is no need to take any preventive
measures for pollution control.
Financial Aspects
A. Fixed Capital
| (i) Land and Building
|
Amount
(In Rs.) |
| (i) Land 200 sq. mtr.
@ Rs. 3500 per sq. mtr including registration |
700000
|
| (ii) Total built-up
area 100 sq. mtrs. as follows: |
| Administrative office,factory
shed 100 sq. mtrs. construction cost @ Rs. 6000 per sq.
m |
600000
|
| Water System (including
Bore Well + over head tank etc) |
200000
|
| Electricity backup(generator
and others equipment) |
100000
|
| Total civil cost= cost
of land + building |
1600000
|
(ii) Machinery and Equipments
| Sl. No. |
Description |
Imp./ Ind. |
Qty. |
Rate (Rs.) |
Value (Rs.) |
| 1. |
Flat bed single needle
industrial sewing machine power operated 1/2 HP motor
|
Ind. |
5 |
10000 |
50000
|
| 2. |
Cylinder bed single
needle industrial sewing machine power operated 1/2 HP
motor |
" |
2 |
15000 |
30000
|
| 3. |
Cost of tools and fixtures
|
|
|
|
10000
|
| 4. |
Cost of office furniture
and workshop furniture |
|
|
|
80000
|
| 5. |
Erection ,Taxes, Electrification
and Installation of machinery @ 40% |
|
|
|
68000
|
| |
Total
|
238000
|
| |
(iii) Pre-operative
Expenses |
20000
|
| |
Total Fixed Capital
(i+ii+iii) |
1858000
|
B. Working Capital (per month)
(i) Staff and Labour (per month)
| Sl. No. |
Designation |
No. |
Salary (Rs.) |
Total (Rs.) |
| 1. |
Production Manager |
2 |
8000 |
16000
|
| 2. |
Accountant |
1 |
5000 |
5000
|
| 3. |
Salesman |
1 |
5000 |
5000
|
| 4. |
Clickers |
4 |
4000 |
16000
|
| 5. |
Stitchers |
14 |
4000 |
56000
|
| 6. |
Unskilled Workers |
8 |
4000 |
32000
|
| 7. |
Sweeper/Watchman |
2 |
3000 |
6000
|
| |
Total
|
136000
|
| |
Add perquisites @ 22%
on Salary |
29920
|
| |
Total
|
165920
|
(ii) Raw Materials Including Packing
Requirements (per month)
| Sl. No. |
Description |
Qty. |
Unit
|
Rate @/unit (Rs.)
|
Value (Rs.) |
| 1. |
Chrome tanned Split
leather (3.5 Pairs per kg.) |
3571
|
Kg |
50 |
178550
|
| 2. |
Thread |
12500 |
Pairs |
0.75 |
9375
|
| 3. |
packing material (Carton
pack for 100 pairs, poly packing for individual pairs)
|
126 |
No. |
40 |
5040
|
| |
Total
|
192965
|
(iii) Utilities (per month)
| S. No. |
Description |
Amount (Rs.) |
| 1. |
Power |
3000 |
| |
Total
|
3000
|
(iv) Other Contingent Expenses (per month)
| Sl. No. |
Description |
Amount (Rs.) |
| 2. |
Postage and Stationery
|
3000
|
| 3. |
Consumable Stores |
2000
|
| 4. |
Repair and Maintenance
|
2000
|
| 5. |
Transportation charges
|
5000
|
| 6. |
Telephone |
3000
|
| 7. |
Advertisement and Publicity
|
10000
|
| 8. |
Insurance |
1000
|
| 9. |
Miscellaneous Expenses
|
2000
|
| |
Total
|
28000
|
(v) Total Working Capital (per month)
| Sl. No. |
Description |
Amount (Rs.) |
| 1. |
Raw Materials |
192965
|
| 2. |
Staff and Labour |
165920
|
| 3. |
Utilities |
3000
|
| 4. |
Other Contingent expenses
|
28000
|
| |
Total
|
389885
|
| (vi) Working Capital
for 3 months |
|
| Working Capital (for
1.5 months) 389885 x 1.5 |
584828
|
C. Total Capital Investment
| Sl. No. |
Description |
Amount (Rs.) |
| 1. |
Fixed Capital |
1858000
|
| 2. |
Working capital for
1.5 months |
584828
|
| |
Total
|
2442828
|
Financial Analysis
(1) Cost of Production (per year)
| Sl. No. |
Description |
Amount (Rs.) |
| i) |
Total recurring cost
|
4678620
|
| ii) |
Depreciation on machinery
@ 10% |
8000
|
| iii) |
Depreciation on Building
@5% |
80000
|
| iv) |
Depreciation on tools
@ 25% |
2500
|
| v) |
Depreciation on furniture
@20% |
16000
|
| vi) |
Interest on Total Capital
Investment @ 12% |
293139
|
| |
Total
|
5078259
|
(2) Turnover (per year)
| Sl. No. |
Items |
Qty. |
Rate (Rs.) |
Value (Rs.) |
| 1. |
Industrial hand gloves
|
150,000 pairs |
35 per pair |
5250000
|
| |
Total
|
5250000
|
| (3) Net Profit (before
taxation) (per year) |
| Turnover
- Cost of Production |
| 5250000 - 5078259 |
| 171741 |
| (4) Net Profit Ratio
|
| |
|
Net Profit per year
x 100 |
| |
= |
——————————— |
| |
|
Turnover per Year |
| |
|
|
| |
|
1,71,741x 100 |
| |
= |
———————— |
| |
|
5250000 |
| |
|
|
| |
= |
3.27% |
| |
|
|
| (5) Rate of Return
on Total Investment |
| |
|
Net Profit per year
x 100 |
| |
= |
——————————— |
| |
|
Total Investment |
| |
|
|
| |
|
171741 x 100 |
| |
= |
———————— |
| |
|
2442828 |
| |
|
|
| |
= |
7.03% |
(6) Break-even
Point
Fixed Cost
| Sl. No. |
Description |
Amount (Rs.) |
| a) |
Depreciation on machinery
@ 10% |
8000
|
| b) |
Depreciation on Building
@5% |
80000
|
| c) |
Depreciation on tools
@ 25% |
2500
|
| d) |
Depreciation on furniture
@20% |
16000
|
| e) |
Interest on Total Capital
Investment @ 12% |
293139
|
| f) |
40% of Salary and Wages
|
796416
|
| g) |
40% of utilities and
other Contingent expenses |
148800
|
| |
Total
|
1344855
|
| B.E.P. |
|
|
| |
|
Fixed cost x 100 |
| |
= |
—————————— |
| |
|
Fixed cost + Net Profit
|
| |
|
|
| |
|
1344855 x 100 |
| |
= |
—————————— |
| |
|
1344855 + 1,71,741 |
| |
|
|
| |
= |
88.68% |
Addresses of Machinery and Equipment
Suppliers
1. M/s. Singer Sewing Machine Co.
Nehru Bazar,
Jaipur.
2. M/s. Industrial Sewing Machine
Co. (P) Ltd.,
Kakad Chambers, 5th Floor,
Dr. Annie Besant Road,
Mumbai-18.
3. M/s. Peelu Sales Corporation,
Meera Hussani Chouraha,
Hing Ki Mandi,
Agra (U.P.)
Raw Material Suppliers
1. M/s. Tata Export Tannery
Division, Agra Mumbai Road,
Dewas (M.P.)
2. M/s. Tannery and Footwear
Corporation of India,
Civil Line,
Kanpur (U.P.)
3. M/s. Gordon Woodroffee
Leather Mfg. Co. Ltd.
Pallavram,
Chennai-43
4. M/s. Usha Leather Industries
Dharavi, Mumbai-17
Contact for more information:
Information Manager
TIMEIS Project
E-mail: timeis@ficci.com
|
