|
Injection Moulded Shoes
| Product Code |
: |
291101003 |
| Quality and Standards
|
: |
There is no specific
BIS specification for Injection
Moulded Shoes. |
| Production Capacity |
: |
Quantity: 6,00,000 pairs
shoes (per annum)
Value: Rs. 199800000 |
| Uploaded
on |
: |
March
2007 |
Introduction
Injection moulding is one of the many
processes adopted for shoe manufacture. Injection moulding
of shoes with rubber as soling material by vulcanization process
is very popular. It attained popularity during the early 1960's
when PVC followed by PU were developed for use as soling materials.
Injection moulded shoes has certain advantages over other
shoes and is still one of the preferred methods for manufacture
of shoes.
Market Potential
The international market for shoes is
dominated by Italy, China, Thailand, Indonesia, India and
some other South East Asian countries. The footwear industry
in all major developed countries is showing a decreased trend
due to a rise in the cost of production. Shoes being a low
technology and high labour intensive product, India stands
a favourable chance to be the largest exporter of footwear.
The Indian domestic market is also huge and there is a lot
of scope for setting up units manufacturing injection moulded
shoes.
Basis and Presumptions
| 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 shoes
and footwear field and /or venturing to start Injection
based units. |
| 4. |
Location |
: |
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, lining leather,toe puff, insole and PVC.
|
| 8. |
Salary and Wages |
: |
All the employees are
paid on monthly basis.at the prevailing market rates |
| 9. |
Transportation and Taxes
on Purchase |
|
Not Included in purchase
price |
| 10. |
Power Charges |
: |
Rs.4.5 per KWH from power
supply source |
| 11. |
Depreciation |
: |
5% on building and civil
construction
10% on plant and machinery
20% on furniture and fixture
|
| 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 (In months)
|
| 1. |
Registration and other
formalities |
2 |
| 2. |
Land acquisition |
3 |
| 3. |
Construction of shed,
office etc. |
8 |
| 4. |
Machinery purchasing
and installation |
4 |
| 5. |
Trial production |
1 |
| |
Total |
18 |
Technical Aspects
Process of Manufacture
The graded patterns of the components
of the selected design are clicked for upper and lining materials
and passed on to closing section for making the upper. In
closing section, the edges are skived and components stitched
and eyelets fixed as per buyers specification. In the making
section, the insole is stapled to the making last, shank attached,
the upper is then lasted over the last either by adhesive
or tacks. Bottom roughing of the lasting allowance is done
which can be a little over the lasting edge. The shank is
attached securely by tacks and heel filler is attached in
seat area to cut down PVC around the heel, shorten cooling
time and prevents distortion of head shape. A one part or
two part polyurethane adhesive is applied by machine or hand
brush over the whole bottom only in case of PVC and not required
for PU and is completely dried. The shoe is slipped from the
making last and put on to alloy last mould. The shoe in the
inverted position is then slid into the injection moulding
machine. The side and sole moulds close and lock into position.
Molten PVC is then injected into the mould, cutting off supply
when full. It is then cooled by refrigeration chamber and
moulds unlock after cooling time and shoe unloaded. The spue
is then removed. Shoe is then send for finishing and then
checked and packed. For PU injection moulding a different
kind of injection moulding machine is used which is more critical.
Expanded PVC is now a days popular as soling material. Vulcanized
rubber soles are still in use.
Quality Control and Standards
The quality of footwear is guided by the
physical and chemical properties of the material, destructive
test on footwear and wear trials. Various organizations like
SATRA, BLMRA, SLTC (UK), CTC (France), TNO (Netherlands),
PFI (Germany), VESLIC (Switzerland), ALCA, ASTM (USA) and
CLRI(India) have contributed to achieve quality standards
for footwear and footwear materials. Test procedures and testing
equipments of Bally (Switzerland) and SATRA (UK) and specification
of British Standard (BS), German Standards (DIN) and international
standards (ISO) are widely used. In India BIS (Bureau of Indian
Standards) have worked out specifications for various footwear
and footwear materials. Shoes are to be manufactured as per
the buyer's specification.
Production Capacity
| Quantity |
: |
6,00,000 pairs injection
moulded shoes (per annum) |
| Value |
: |
199800000 |
Motive Power
The proposed unit will consume 20,000
kWH units of electricity per month.
Pollution Control
There is no pollution in the manufacture
of injection moulded shoes.
Energy Conservation
Workers should be properly trained to
minimize wastage of electrical energy by proper running and
maintenance of the machines.
Financial Aspects
A. Fixed Capital
| (i) Land and Building
|
(Rs.) |
| Land 2 acres @ Rs. 15,00,000
per acre |
3000000
|
| Building area for workshed
of 10,000 Sq. ft. @ Rs. 500 per sq. ft (Factory, Test
laboratory, Stores, rest room etc.) |
5000000
|
| Administrative Block
of 5000 sq. ft. @ Rs. 700 per sq. ft. (Administration,
Inspection, Guest Room etc.) |
3500000
|
| Compound wall, gate,
road, water pump etc. |
500000
|
|
Total
|
12000000
|
(ii) Machinery and Equipments
| Sl. No. |
Description |
Ind./ Imp. |
Qty. |
Rate (Rs.) |
Value (Rs.) |
| 1. |
Computer with design
and grading software and cutter |
Imp. |
1 |
1200000 |
1200000
|
| 2. |
Swing beam hydraulic
beam press 20 tonnes |
Ind. |
4 |
250000 |
1000000
|
| 3. |
Band knife upper splitting
machine |
Imp. |
1 |
500000 |
500000
|
| 4. |
Upper perforating machine
|
Ind. |
1 |
150000 |
150000
|
| 5. |
Strap cutting machine
|
Ind. |
1 |
80000 |
80000
|
| 6. |
Stamping machine for
upper and lining |
Ind. |
1 |
50000 |
50000
|
| 7. |
Sock stamping machine
|
Ind. |
1 |
45000 |
45000
|
| 8. |
Upper skiving machine
|
Ind. |
4 |
80000 |
320000
|
| 9. |
Thermocementing folding
and attaching machine |
Imp. |
1 |
280000 |
280000
|
| 10. |
Rotary Ironing machine
|
Imp. |
1 |
150000 |
150000
|
| 11. |
Stitch marking machine
|
Ind. |
1 |
30,000 |
30000
|
| 12. |
Flat bed single needle
machine |
Imp. |
4 |
38,000 |
152000
|
| 13. |
Post bed single needle
machine |
Imp. |
4 |
60,000 |
240000
|
| 14. |
Flat bed double needle
machine |
Imp. |
1 |
50,000 |
50000
|
| 15. |
Post bed double needle
machine |
Imp. |
1 |
80,000 |
80000
|
| 16. |
Flat bed zig-zag machine
|
Imp. |
1 |
55,000 |
55000
|
| 17. |
Cylinder bed binding
machine |
Imp. |
1 |
75,000 |
75000
|
| 18. |
Steam rubbing machine
|
Ind. |
1 |
45,000 |
45000
|
| 19. |
Steam pressing machine
|
Ind. |
1 |
25,000 |
25000
|
| 20. |
Punching and eyeleting
machine |
Ind. |
1 |
55,000 |
55000
|
| 21. |
Conveyor (closing department)
|
Ind. |
4 |
30,000 |
120000
|
| 22. |
Insole moulding machine
|
Ind. |
1 |
90,000 |
90000
|
| 23. |
Counter moulding machine
|
Ind. |
1 |
110000 |
110000
|
| 24. |
Insole stapling machine
|
Ind. |
1 |
45,000 |
45000
|
| 25. |
Toe puff attaching machine
|
Ind. |
1 |
55,000 |
55000
|
| 26. |
Forepart lasting machine
|
Imp. |
1 |
850000 |
850000
|
| 27. |
Seat and side lasting
machine |
Imp. |
1 |
1000000 |
1000000
|
| 28. |
Humidifier for seat lasting
|
Ind. |
1 |
30000 |
30000
|
| 29. |
Pounding and ironing
machine |
Ind. |
1 |
150000 |
150000
|
| 30. |
Moist wrinkle classer
|
Ind. |
4 |
10000 |
40000
|
| 31. |
Humid heat setting machine
|
Imp. |
1 |
300000 |
300000
|
| 32. |
Bottom toughing machine
|
Ind. |
1 |
60,000 |
60000
|
| 33. |
Cementing machine |
Imp. |
1 |
60,000 |
60000
|
| 34. |
Last removing jack |
Ind. |
1 |
25,000 |
25000
|
| 35. |
Heat activator |
Ind. |
1 |
50,000 |
50000
|
| 36. |
4 station injection moulding
machine |
Imp. |
1 |
1600000 |
1600000
|
| 37. |
Finishing machine |
Ind. |
1 |
100000 |
100000
|
| 38. |
Spray booth |
Ind. |
1 |
22000 |
22000
|
| 39. |
Air compresser |
Ind. |
1 |
50000 |
50000
|
| 40. |
Generator set |
Ind. |
1 |
500000 |
500000
|
| 41. |
Testing equipments |
Ind. |
LS |
300000 |
300000 |
| 42. |
Cost of power connection
including transformer |
|
|
|
350000 |
| |
Total
|
10489000
|
| 43. |
Taxes ,Erection, Electrification
and installation charges @ 40% of the cost of machinery
and equipments |
|
|
|
4195600
|
| 44. |
Hand tools |
Ind. |
LS |
|
20000 |
| 45. |
Clicking dies |
Ind. |
LS |
|
50000 |
| 46. |
Plastic lasts |
Ind. |
LS |
|
120000 |
| 47. |
Metal Moulds |
Ind. |
LS |
|
280000 |
| 48. |
Furniture and office
equipments |
Ind. |
LS |
|
500000 |
| |
Total
|
15654600
|
| (iii) Pre-operative
Expenses |
(Rs.) |
| Project Cost -non-refundable
deposits |
400000 |
| (iv) Total
Fixed Capital |
(Rs.) |
| 1. |
Land and Building |
12000000
|
| 2. |
Machinery and Equipments
|
15654600
|
| 3. |
Pre-operative Expenses
|
400000
|
| |
Total
|
28054600
|
B. Working Capital
(per month)
(i) Personnel
(per month)
| Sl. No. |
Designation |
Nos. |
Salary (Rs.) |
Total (Rs.) |
| (a) |
Administrative and Supervisory
Staff |
| 1. |
General Manager |
1 |
20000 |
20000
|
| 2. |
Manager (Administration)
|
1 |
18000 |
18000
|
| 3. |
Manager (Production)
|
2 |
14000 |
28000
|
| 4. |
Supervisor |
10 |
6000 |
60000
|
| 5. |
Accountant |
1 |
6000 |
6000
|
| 6. |
Clerk cum Typist |
2 |
4000 |
8000
|
| 7. |
Storekeeper |
1 |
5000 |
5000
|
| 8. |
Peon |
1 |
3000 |
3000
|
| 9. |
Sweeper |
3 |
3000 |
9000
|
| 10. |
Watchman |
3 |
3000 |
9000
|
| (b) |
Technical Staff (Skilled
and Unskilled) |
| 11. |
Skilled worker |
60 |
6000 |
360000
|
| 12. |
Semi-skilled worker |
40 |
4500 |
180000
|
| 13. |
Helper |
30 |
3000 |
90000
|
| 14. |
Mechanic |
2 |
6000 |
12000
|
| 15. |
Electrician |
2 |
6000 |
12000
|
| |
Total
|
820000
|
| |
Perquisites @ 22% of
Salary |
180400
|
| |
Total
|
1000400
|
(ii) Raw Materials (per month) (50 thousand
pairs per month)
| Sl. No. |
Particulars |
Ind./Imp. |
Unit |
Qty. |
Rate |
Value |
| 1. |
Upper Leather @ 2.5 sq.
ft./pair |
Ind. |
Sq. ft |
125000 |
55 |
6875000
|
| 2. |
Lining Leather @ 1.25
sq. ft./pair |
Ind. |
Sq. ft |
62500 |
30 |
1875000
|
| 3. |
Textile lining tape |
Ind. |
Pair |
50000 |
2.4 |
120000
|
| 4. |
Self adhesive cloth tape,
threads, foam, cushion, eyelets |
Ind |
Pair |
50000 |
18 |
900000
|
| 5. |
Toe puff and stiffener
|
Ind |
Pair |
50000 |
15 |
750000
|
| 6. |
Insole shanks |
Ind |
Pair |
50000 |
14 |
700000
|
| 7. |
PVC |
Ind |
Kgs |
10000 |
60 |
600000
|
| 8. |
Shoe finishing chemicals
(cleaner, filler, finish and wax) |
Imp. |
Pair |
50000 |
15 |
750000
|
| 9. |
Shoe laces |
Ind. |
Pair |
50000 |
7 |
350000
|
| 10. |
Packing (tissue papers,
antifungal tablet, carton box) |
Ind. |
Pair |
50000 |
14 |
700000
|
| |
Total
|
13620000
|
| |
(iii) Utilities (per
month) |
(Rs.) |
| 1. |
Power 20,000 kWH units
@ Rs. 4.50 per unit |
90000
|
| 2. |
Fuel for Generator |
15000 |
| |
Total
|
105000
|
| |
(iv) Other Contingent
Expenses (per month) |
(Rs.) |
| 1. |
Postage and stationery
|
10000 |
| 2. |
Telephone |
10000 |
| 3. |
Consumable Stores |
30000 |
| 4. |
Repairs and Maintenance
|
25000 |
| 5. |
Transport charges |
25000 |
| 6. |
Advertisement and Publicity
|
200000 |
| 7. |
Insurance |
20000 |
| 8. |
Sales Expenses |
30000 |
| 9. |
Miscellaneous Expenses
|
20000 |
| |
Total
|
370000
|
| |
(vi) Total Recurring
Expenditure (per month) |
(Rs.) |
| 1. |
Personnel |
1000400
|
| 2. |
Raw material |
13620000
|
| 3. |
Utilities |
105000
|
| 4. |
Other Contingent Expenses
|
370000
|
| |
Total
|
15095400
|
| (vii) Total Working
Capital |
(Rs.) |
| Working capital is calculated
for 1.5 months i.e. Total Recurring Expenditure x 1.5
( 15095400 x 1.5) |
22643100
|
C. Total Capital Investment
| (i) |
Fixed Capital |
28054600
|
| (ii) |
Working Capital |
22643100
|
| |
Total
|
50697700
|
Financial Analysis
| |
(1) Cost of Production
(per year) |
(Rs.) |
| 1. |
Total Recurring Cost
|
181144800
|
| 2. |
Depreciation on Building
@ 5% |
600000
|
| 3. |
Depreciation on Machinery
and Equipments @ 10% |
1515460
|
| 4. |
Depreciation on Office
Equipments and Furniture @ 20% |
100000
|
| 5. |
Interest on Total Capital
Investment @ 12% |
6083724
|
| |
Total
|
189443984
|
(2) Turnover (per year)
| Item |
Quantity(in pairs)
|
Rate (Rs.)/pair |
Value (Rs.) |
| Shoes Grade-I |
570000 |
340 |
193800000
|
| Shoes Grade-II |
30000 |
200 |
6000000
|
|
Total
|
199800000
|
| (3) Net Profit (per
year) (Before Income Tax) |
| |
= |
Turnover – Cost of Production
|
| |
= |
Rs. 199800000 – 189443984
|
| |
= |
10356016
|
| |
|
|
| (4) Net Profit Ratio
|
|
|
| |
|
10356016 x 100 |
| |
= |
———————— |
| |
|
199800000 |
| |
|
|
| |
= |
5.18% |
| |
|
|
| (5) Rate of Return on
Total Investment |
|
|
| |
|
Net Profit per year x
100 |
| |
= |
——————————— |
| |
|
Total Investment |
| |
|
|
| |
|
10356016 x 100 |
| |
= |
———————— |
| |
|
50697700 |
| |
|
|
| |
= |
20.43 |
(6) Break-even Point
| |
Fixed Cost |
(Rs.) |
| 1. |
Depreciation on Machinery
|
1515460
|
| 2. |
Depreciation on Office
Equipments and Furniture |
100000
|
| 3. |
Depreciation on Building
|
600000
|
| 4. |
Interest on Capital Investment
|
6083724
|
| 5. |
Insurance |
240000
|
| 6. |
40% of salary and wages
|
4801920
|
| 7. |
40% of other contingent
expenses |
1680000
|
| |
Total
|
15021104
|
| B.E.P. |
|
|
| |
|
Fixed Cost x 100 |
| |
= |
———————— |
| |
|
Fixed Cost + Profit |
| |
|
|
| |
= |
59.19 |
Addresses of Machinery and Equipment
Suppliers
1. M/s. Leather and Packaging Machinery
Corporation,
1/23-B, Asaf Ali Road,
New Delhi-110 002.
2. M/s. Torielli
1090, Periyar EVR High Road,
Chennai-600 084.
3. M/s. Rakesh Sukhia and Company Limited,
62-A, Wulhucattan Street, Periamet,
Chennai-600 003.
4. M/s. Bensen Industries
96, Sri Arobindo Road, Salkia,
Howrah-6.
5. M/s. Lefoot Machines,
373, Sideo Industrial Estate,
Chennai-600 098.
Footwear Components, Grinderies and Chemical
Suppliers
1. M/s. Agra Leather Board,
Nunhai Industrial Estate,
Agra.
2. M/s. Flexole Raman Limited,
Mysore Ooty Road, Tahandvapura,
Mysore.
3. M/s. Atlanta Trading Pvt. Company,
Atur house, Worli Naka,
Mumbai - 400 018.
4. M/s. Chandra Chemicals Enterprises
Limited,
P-35, CIT Road,
Kolkata - 700 014.
5. M/s. Salma International
Salma House, 142,
Purasawalkam High Road,
Kellys,
Chennai - 600 012.
6. M/s. Toscana Lasts Limited
Thapar House,
124, Janpath,
New Delhi - 110 001.
7. M/s. Sanghavi Shoe Accessories
3, Hari Krupa, 10th Road,
Chembur,
Mumbai - 400 071.
8. M/s. Vardhman Threads Private Limited
4/6, D.B. Gupta Road, Paharganj,
New Delhi - 110 055.
9. M/s. Indian Eyelet Industries
5, Dr. Rajendra Prasad Sarani,
Kolkata - 700 001.
10. M/s. Skandia Cutting Dies Private
Limited
1-B, General Collin Road,
Chennai - 600 122.
11. M/s. India Shoe Lace Works
8/359, Hing Ki Mandi,
Agra - 3.
Contact for more information:
Information Manager
TIMEIS Project
E-mail: timeis@ficci.com
|
