|
Leather Sandal with P.U. Sole
| Product Code |
: |
2913 |
| Quality and Standards
|
: |
There are no BIS standards
for all raw materials
and grinderies. However, IS 6493:1971 may |
| Production Capacity
|
: |
Qty. 72000 pairs (per
annum)
Value : Rs. 27360000 |
| Uploaded
on |
: |
March
2007 |
Introduction
Leather Sandals and Chappals in different designs and forms
are made of leather which is a natural protective material
for the foot. The purpose of using sandals is mainly to protect
the feet from injury, thorn, insects, heat and cold. With
the rapid increase of population and civilization more and
more people are using footwear. It may be either chappal or
sandal or shoe.
The term footwear covers mainly:
| (i) |
Chappal |
| (ii) |
Sandal |
| (iii) |
Shoe and |
| (iv) |
Boot |
The project profile deals with sandals
with top made of upper leather and the bottom made of PU sole,
which are available in the market readily. PU sole, being
more durable, will eliminate a number of operations.
Market Potential
Footwear in India is manufactured in cottage,
small and large units. About 90% of the total output of footwear
is made by cottage and small-scale sector.
Sandals are in more demand from the countries,
which have moderate climate or hot climate. Sandals will be
more useful than the chappal in populous cities like Kolkata,
Mumbai, Delhi, Chennai, Bangalore and many other cities/towns
because due to buckle/strap sandals will not come out of feet
as the chappal does in a crowded bus or train. Hence from
the utility point of view the sandals have also very good
market in our country as well as abroad where climate is not
cold.
Basis and Presumptions
| 1) |
Efficiency and working
Hours: 240 pairs of Gents sandal with leather upper and
P.U. sole per day on double shift basis, where single
shift is of 8 hours and 25 working days in a month. Or,
72,000 pairs of sandal/year. |
| 2) |
Time period for achieving
full/envisaged capacity utilisation: The project may take
12 months to achieve the full capacity utilisation. |
| 3) |
Labour wages: On monthly
basis including perquisites.(at prevailing rates of market)
|
| 4) |
Interest rate: Assumed
at 12% per year on capital investment. |
| 5) |
Margin money: The entrepreneurs
share is 20-25% of the capital. |
| 6) |
Operative period of
the project: 10-15 years |
| 7) |
Land and Construction
Cost: Own |
| 8) |
Moratorium Period: 3-5
years. |
Implementation Schedule
| Sl. No. |
Activity |
Period (in month)
|
| 1. |
Registration and other
formalities |
1 |
| 2. |
Allotment of shed |
2 |
| 3. |
Machinery procurement
and installation |
3 |
| 4. |
Recruitment of personnel
|
1 |
| 5. |
Arrangement of electric
supply |
3 |
| 6. |
Trial production |
1 |
| 7. |
Commercial production
|
1 |
| |
Total
|
12 |
Technical Aspects
Process of Manufacture
The upper components i.e. leather straps,
split lining leather for outside straps and inside straps
are cut. The straps are skived wherever necessary and pasted
with latex or rubber solution. The front straps, which are
having selflining, are folded and stitched. The outside and
inside straps are pasted and nicked at the deep carved portion
to facilitate folding. The split linings are pasted and attached
with the outside and inside straps. The buckle holder pieces
are also cut and buckles are fixed. The buckle holder piece,
which is carrying the buckle, is fixed on the outside by rivets.
The ends of the straps are fitted between outside strap and
lining, and inside strap and lining. The upper is secured
by stitching.
The bottom surface of synthetic insoles
(PVC) is buffed lightly. These are temporarily fixed under
the bottom of the sandal last. The uppers are fitted on the
last and lasted under the insole by pasting. Adhesive is applied
under the buffed surface of the PVC insole and lasted upper.
Mock welts (4 to 5 mm width) are attached on the PU soles
all round the edges.
The top surface of PU soles treated by
primer and then halogenated by chemical. Slight heat treatment
is given on PU. The top surface of PVC insoles are buffed
lightly and adhesive (SR-NL) is applied and slight heat treatment
is given. After proper drying, both the surfaces are stuck
together by cementing press. The upper complete with sole
is removed from the last. The sandals are cleaned, polished
and packed.
Quality Control and Standards
Quality and specifications are as per
buyer's specification and for export, certain quality and
specifications are maintained, but for local market, no strict
quality standards are followed.
IS 578:1971 and IS 3890:1966 can be seen
for chrome tanned upper leather and lining leather respectively.
The upper leather should be uniform in
thickness and colour and should have water fastness property.
Very good quality adhesive and chemicals are to be applied
for fixing sole and insole. Proper care should be taken while
doing final inspection before packing.
Production Capacity (per annum)
| Quantity |
: |
72000 pairs |
| Value |
: |
Rs. 27360000 |
| |
|
|
| Motive Power |
: |
3 HP. |
Pollution Control
There is hardly any pollution except a
little noise pollution on account of running of the machine.
Energy Conservation
Normally it is not required.
Financial Aspects
A. Fixed Capital
| (i) Land and Building
|
Amount
(In Rs.) |
| (i) Land 300 sq. mtr.
@ Rs. 5000 per sq. mtr including registration |
1500000
|
| (ii) Total built-up
area 200 sq. mtrs. as follows: |
| Administrative office,factory
shed 200 sq. mtrs. construction cost @ Rs. 6000 per sq.
m |
1200000
|
| Water System (including
Bore Well + over head tank etc) |
200000
|
| Electricity backup(generator
and others equipment) |
100000
|
| Total civil cost= cost
of land + building |
3000000
|
(ii) Machinery and Equipments
| Sl. No. |
Description |
Ind./ Imp. |
Qty. |
Rate |
Amount (Rs.) |
| 1. |
Flat bed single-needle
stitching machine, power operated with 0.33 H.P. Motor
|
Ind. |
3 |
18000 |
54000
|
| 2. |
Strap cutting machine,
power operated with 0.5 HP Motor |
Ind. |
1 |
35000 |
35000
|
| 3. |
Upper leather skiving
machine complete with table, stand with 0.5 HP motor.
|
Ind. |
1 |
100000 |
100000
|
| 4. |
Hand operated strap
folding machine |
Ind. |
1 |
12000 |
12000
|
| 5. |
Buffing and roughening
machine with 0.5 HP motor |
Ind. |
1 |
20000 |
20000
|
| 6. |
Polishing Machine with
0.25 HP motor |
Ind. |
1 |
10000 |
10000
|
| 7. |
Sole cementing press-4
bed operated with Air compressor 1 HP motor |
Ind. |
1 |
40000 |
40000
|
| 8. |
Trademark embossing
machine hand operated |
Ind. |
1 |
15000 |
15000
|
| 9. |
Wooden sandal last |
Ind. |
100 pairs |
250 |
25000
|
| 10. |
Tools, equipment etc.
|
Ind. |
L.S. |
|
30000
|
| 11. |
Office equipment, furniture
etc. |
Ind. |
L.S. |
|
100000
|
| 12. |
Taxes ,Electrification
and Installation charges @ 40% |
Ind. |
L.S. |
|
124400
|
| |
Total
|
565400
|
| (iii) Pre-operative
Expenses |
50000
|
| Total Fixed Capital
(i+ii+iii) |
3615400
|
B. Working Capital
(per month)
(i) Personnel
(per month)
| Sl. No. |
Designation |
No. |
Salary (Rs.) |
Total (Rs.) |
| 1. |
Manager |
1 |
20000 |
20000
|
| 2. |
Designer-cum-Supervisor
|
1 |
10000 |
10000
|
| 3. |
Accountant-cum-Store
Keeper |
1 |
7000 |
7000
|
| 4. |
Clerk-Cum-Typist |
1 |
5000 |
5000
|
| 5. |
Clickers |
4 |
6000 |
24000
|
| 6. |
Upper assembly and preparation
|
4 |
6000 |
24000
|
| 7. |
Semi-Skilled Workers
for bottoming |
4 |
4500 |
18000
|
| 8. |
Machine Operators |
14 |
6000 |
84000
|
| 9. |
Unskilled Workers |
4 |
4000 |
16000
|
| 10. |
Watchman |
1 |
3000 |
3000
|
| 11. |
Sweeper |
1 |
3000 |
3000
|
| |
Total
|
214000
|
| |
Add. 22% perquisites
|
47080
|
| |
Total
|
261080
|
(ii) Raw Materials (6000 pairs) (per
month)
| Sl. No. |
Description |
Ind./ Imp. |
Qty. |
Unit |
Rate (Rs.) |
Value (Rs.) |
| 1. |
Chrome upper leather
lower quality |
Ind. |
6000 |
sq. ft. |
55 |
330000
|
| 2. |
Split lining leather
(approx. 1/2 sq. ft. to be used for buckle strap and side
strap only) |
Ind. |
3000 |
sq. ft. |
30 |
90000
|
| 3. |
PVC readymade insole
|
Ind. |
6000 |
pairs |
38 |
228000
|
| 4. |
P.U. Sole |
Ind. |
6000 |
pairs |
140 |
840000
|
| 5. |
Grinderies like Mock
welt, Adhesive, Thread, Buckle etc. |
Ind. |
L.S. |
Per pair |
20 |
120000
|
| 6. |
Packing |
Ind. |
L.S. |
Per pair |
8 |
48000
|
| |
Total
|
1656000
|
(iii) Utilities (per month)
| Sl. No. |
Description |
Amount (Rs.) |
| 1. |
Power and fuel |
20000
|
| |
Total |
20000
|
(iv) Other Contingent Expenses (per month)
| Sl. No. |
Description |
Amount (Rs.) |
| 2. |
Postage and Stationery
|
10000
|
| 3. |
Telephone |
10000
|
| 4. |
Consumable stores |
15000
|
| 5. |
Repair and Maintenance
|
10500
|
| 6. |
Transport charges |
20000
|
| 7. |
Advertisement and publicity
|
100000
|
| 8. |
Insurance |
8000
|
| 9. |
Sales Expenses |
10000
|
| 10. |
Misc. Expenses |
20000
|
| |
Total
|
203500
|
(v) Total Recurring Expenditure (per
month)
| Sl. No. |
Description |
Amount (Rs.) |
| 1. |
Salary and Wages |
261080
|
| 2. |
Raw Materials |
1656000
|
| 3. |
Utilities |
20000
|
| 4. |
Other contingent expenses
|
203500
|
| |
Total
|
2140580
|
(vi) Working Capital for 1.5 months
C. Total Capital Investment
| Sl. No. |
Description |
Amount (Rs.) |
| 1. |
Total Fixed Capital
|
3615400
|
| 2. |
Working capital for
1.5 months |
3210870
|
| |
Total
|
6826270
|
Financial Analysis
(1) Cost of
Production (per year)
| Sl. No. |
Description |
Amount (Rs.) |
| i) |
Total recurring cost
|
25686960
|
| ii) |
Depreciation on Building
@ 5% |
150000
|
| ii) |
Depreciation on machinery
@ 10% |
31100
|
| iii) |
Depreciation on office
furniture and equipment @ 20% on Rs. 50,000 |
20000
|
| iv) |
Depreciation on tools
and equipment @ 25% of Rs. 35,000 |
7500
|
| v) |
Interest on Total Capital
Investment @ 12% |
819152
|
| |
Total
|
26714712
|
(2) Turnover (per year)
| Sl. No. |
Items |
Qty./pair |
Rate/pair |
Price (Rs.) |
| 1. |
Gents sandal with P.U.
Sole |
72,000 |
380 |
27360000
|
| |
Total |
27360000
|
| (3) Net Profit (per
year) (before Income Tax) |
| Turnover - Cost of Production
|
| 27360000- 26714712 |
| = 645288 |
| (4) Net Profit Ratio
|
|
|
| |
|
Net Profit per year
x 100 |
| |
= |
——————————— |
| |
|
Turnover per year |
| |
|
|
| |
|
645288 x 100 |
| |
= |
———————— |
| |
|
27360000 |
| |
|
|
| |
= |
2.36
|
| |
|
|
| (5) Rate of Return
on Total Investment |
| |
|
Net Profit per year
x 100 |
| |
= |
——————————— |
| |
|
Total Investment |
| |
|
|
| |
|
645288 x 100 |
| |
= |
————————— |
| |
|
6826270 |
| |
|
|
| |
= |
9.45 |
(6) Break-even
Point
Fixed cost
| Sl. No. |
Description |
Amount (Rs.) |
| ii) |
Depreciation on Building
@ 5% |
150000
|
| ii) |
Depreciation on machinery
@ 10% |
31100
|
| iii) |
Depreciation on office
furniture and equipment @ 20% on Rs. 50,000 |
20000
|
| iv) |
Depreciation on tools
and equipment @ 25% of Rs. 35,000 |
7500
|
| v) |
Interest on Total Capital
Investment @ 12% |
819152
|
| vi) |
40% of salary and wages
|
1253184
|
| vii) |
40% of utilities |
938400
|
| viii) |
Insurance |
96000
|
| |
Total
|
3315336
|
| B.E.P. |
|
|
| |
|
Fixed cost x 100 |
| |
= |
————————— |
| |
|
Fixed cost + Profit
|
| |
|
|
| |
|
3315336 x 100 |
| |
= |
————————— |
| |
|
3315336 + 645288 |
| |
|
|
| |
= |
83.71% |
Addresses of Machinery and Equipment
Suppliers
1. M/s. Benson Industries
96, Sri Aurobindo Road,
Salkia,
Howrah.
2. M/s. Bengal Machinery Co. (P) Ltd.
9-A, New Tangra Road,
Kolkata-700046.
3. M/s. PTDC (Under NSIC),
Industrial Estate,
P. O. Ekkaduthangal,
Chennai-600 097.
4. M/s. Indian Leather Machines
6, Sangita Indl. Estate.,
Pokkram Road, No. 1, Upwan,
Thane, Mumbai - 400 606.
Sandal Last
1. M/s. Alison Singh and Co.
174, Baluganj,
Agra-1.
2. M/s. Sanghavi Shoe accessories Pvt.
Ltd.
11, Harikripa, 10th Road,
Chembur,
Mumbai-400 071.
3. M/s. Footform,
30, Banerjee Para Road,
Sarsuna,
Kolkata-700 061.
Raw Material Suppliers
1. M/s. Modern Leather Stores
1, Bidhan Sarani,
Kolkata-12
(Misc. items)
2. M/s. Kohinoor Leather Co.
P-14, Bentinck Street,
Kolkata
(Misc. items)
3. M/s. Valliappa Leather Corporation
3/5 and 6, Narayana Chetty Street,
Periamnt,
Chennai-600 003
(Misc. items)
4. M/s. Bengal Tanning Company
11/2, Harshi Street,
Kolkata-9
(Leather only)
5. M/s. Super Tannery (India) Ltd.
Jajmau, Kanpur.
6. M/s. Omega Polymicrons Pvt. Ltd.
Meerut Road,
Mawana-250 401.
7. M/s. Sethu Exports Agencies
114, Vepery High Road,
Chennai - 600 003.
8. M/s. Saxon India
59/2, Cockburn Road,
Bangalore-560 051.
9. M/s. Chemet,
Taj Building, 1st Floor,
P. B. No. 195,
Dr. D. N. Road, Fort,
Mumbai-400 001.
10. M/s. Peoples Enterprises Pvt. Ltd.
16/1, G. C. Avenue,
Kolkata-700 013.
11. M/s. Pidilite Industries Ltd.
Ramkrishna Mandir Road,
Andheri (E), P. B. No. 17401,
Mumbai-59.
12. M/s. Nanavati Engineering Co. Pvt.
Ltd.
A-195, 4th Cross Road,
Peanya Indl. Estate,
Bangalore-560 058.
13. M/s. Atlas Trading Corporation
7627, (P) Daroga Street,
Resham House, Sadar Bazar,
New Delhi-110 006.
14. M/s. Star Processors Ltd.
3, Chingrighata Lane,
Kolkata-700 015.
15. M/s. Bharani agencies
126, Thambuchetty Street,
3rd Floor,
Chennai-600 001.
Contact for more information:
Information Manager
TIMEIS Project
E-mail: timeis@ficci.com
|
