|
Elastic Tape
| Product Code |
: |
267904002 |
| Quality and
Standards |
: |
IS 9686:1980
|
| Uploaded on |
: |
August 2007 |
Introduction
Garment forms one of the basic needs of
human being. In a country like India with growing population,
the increase in demand for the readymade garments is a continuing
process. A good dress should give importance to three basic
parameters. These are comfort to wearer, matching colours
and climate adjustments.
Elastic tapes are required for the purpose
of holding the garments tightly when it is worn by the persons.
In addition to providing comfort, it also increases the life
of the garments. Generally, the elastic tapes are used in
undergarments like briefs, panties, brassiers, baggies, children's
dress etc. It is also used in suitcases for inside straps
for better grip holding and in car seats for safety driving
etc.
Market Potential
With the increasing demand for the undergarments
and readymade garments, there is enough scope for the garment
ancillary units including the elastic tapes. There is always
good demand for the elastic tapes.
Basis And Presumptions
1. This project is based on single shift
basis and 300 working days in a year.
2. Time period for achieving maximum capacity utilisation
is considered from 3rd year from the date on which production
is started.
3. Building is considered of its own
4. Costs of machinery and equipment/material indicated refer
to a particular make and approximately to those prevailing
at the time of preparation of this project.
5. Cost of installation and electrification is taken @ 10%
of cost of machinery and equipment.
6. Non-refundable deposits, project report cost, trial production,
security deposit with Electricity Board etc. are taken under
preoperative expenses.
7. Depreciation has been considered as 10% on plant and machinery,
15% on office furniture and fixtures and 20% on workshop accessories.
8. Interest on capital investment has
been taken @ 14% per annum.
Implementation Schedule
| Sl. No. |
Activity |
Period |
| 1 |
Selection of site/working
shed |
1 month |
| 2 |
Formation of company
(ownership/partnership) |
1 month |
| 3. |
Registration with Commissioner
of Industries/ DIC |
1 month |
| 4. |
Procurement of machinnery
and equipment |
1 month |
| 5. |
Arrangement of finance
(Term loan and working capital) |
3 months |
| 6. |
Selection of market channel
|
1 month |
| 7. |
Plant erection and electrification
|
2 weeks |
| 8. |
Arrangement of raw material
including packaging material |
1month |
| 9. |
Recruitment of manpower
|
1 month |
| 10. |
Miscellaneous works like
power/water connection etc. |
2 months |
Note: Considering that some of the above
activities may be overlapping, the project implementation
will take a total period of six months approximately for starting
the production.
Technical Aspects
Process of Manufacture
Different types of yarn like viscose,
nylon and cotton are placed on creel for working purpose as
per design. Warp is prepared on warping machine. It is to
be ensured that no loose threads are present in the warp sheet
in order to run the machine without stoppage. Prepared warp
beam is shifted to needle loom and individual threads are
drawn as per design. When the machine starts weaping, the
woven tapes will come out of the machine and finally wound
on the rolls, After finishing on finishing machine, rolls
are packed into polythene packs for supply to the customers.
Quality Control and Standards
The product should be clean from oil stains,
cuts, any other defects etc. Care should be taken while manufacturing
to avoid occurrence of the above faults.
Production Capacity (per annum)
| Product |
Quantity |
Amount (In Rs.) |
| Elastic Tape |
16,80,000 |
10920000
|
Motive Power
25 HP is required to run this unit.
Pollution Control
Although not required, however, entrepreneurs
have to contact State Pollution Control Board for necessary
guidance.
Energy Conservation
Energy can be saved by proper housekeeping.
Financial Aspects
A. Fixed Capital
| (i) Land
and Building |
| Covered area |
100 sq.mt. |
| Uncovered area |
200 sq.mt. |
| Cost of land @ Rs. 2000/sq.mt
|
600000
|
| Cost of construction
@ 4000/sq.mt |
400000
|
|
Total
|
1000000
|
(ii) Machinery and Equipment
| Sl. No. |
Description |
No. |
Rate
(In Rs.) |
Amount
(In Rs.) |
| 1. |
High speed needle loom
12 shaft front reed 12" without back frame and beam
Model 6/27 Varitex |
2 |
600000 |
1200000
|
| 2. |
Warping machine type
b 350 suitable or 350 mm dia and 250 mm width with warp
speed 180 mts./ min.max. |
1 |
1400000 |
1400000
|
| 3. |
Creel for 250 ends |
1 |
80000 |
80000
|
| 4. |
Aluminium flanged beams
bolted |
50 |
1500 |
75000
|
| 5. |
Finishing machine series
FS-2 main drum guide rollers made of SS 304 dia 800mm,
length 1210mm, 36 heaters, maximum speed 36 mts./min.
|
1 |
260000 |
260000
|
| 6. |
Back frames |
3 |
10000 |
30000
|
| 7. |
Measuring and winding
machine suitable for making rolls upto 30mm.dia |
1 |
60000 |
60000
|
| 8. |
Fire fighting equipments
|
LS |
10000 |
10000 |
| 9. |
Lab. equipments |
LS |
10000 |
10000 |
|
Total
|
3125000
|
| (iii) Other Fixed
Assets |
(Rs.) |
| (a) Erection and installation
|
312500
|
| (b) Office furniture
|
50000 |
| (c) Pre-operative
expenses |
30000 |
|
Total
|
392500
|
| Total Fixed Capital
(i)+(ii)+(iii) |
4517500
|
B. Working Capital (per month)
(i) Staff and Labour Wages
| Sl. No. |
Designation |
Nos. |
Rate
(In Rs.) |
Amount
(In Rs.) |
| 1. |
Plant Manager |
1 |
16000 |
16000
|
| 2. |
Sales Officer |
1 |
9000 |
9000
|
| 3. |
Accountant/Cashier |
1 |
5000 |
5000
|
| 4. |
Peons |
2 |
3000 |
6000
|
| 5. |
Supervisors |
1 |
9000 |
9000
|
| 6. |
Skilled workers |
4 |
4500 |
18000
|
| 7. |
Unskilled workers |
2 |
3500 |
7000
|
|
Total
|
70000
|
| Perquisites@
20% |
14000
|
|
G.Total
|
84000
|
(ii) Raw Materials (per month)
| Sl. No. |
Description |
Qty. |
Rate/ Unit
(Rs.) |
Amount
(In Rs.) |
| 1. |
Crimped Nylon yarn 1/120
|
1000 |
240 |
240000
|
| 2. |
Viscose 450 Dn. yarn
|
750 |
120 |
90000
|
| 3. |
32 s Cotton yarn |
750 |
140 |
105000
|
| 4. |
Latex thread |
775 |
140 |
108500
|
| 5. |
Glue/starch |
100 |
12 |
1200
|
|
Total
|
544700
|
| (iii) Utilities |
(Rs.) |
| Electricity bill Water
charges |
15000 |
|
Total
|
15000
|
| (iv) Other Contingent
Expenses (per month) |
(Rs.) |
| (a) Postage/Stationery
|
1000 |
| (b) Repair and maintenance
|
15000 |
| (c) Transport/travelling
Charges |
3000 |
| (d) Insurance |
1000 |
| (e) Telephone bills |
4000 |
| (f) Miscellaneous |
4000 |
|
Total
|
28000
|
| (v) Total Recurring Expenses
(per month) |
671700
|
| (vi) Total Working Capital
for 2 months |
1343400
|
C. Total Capital Investment
| (i) Land Machinery and
equipment |
4517500
|
| (ii) Working capital
for 2 months |
1343400
|
|
Total
|
5860900
|
Machinery Utilisation
Capacity utilisation is considered as 75% of installed capacity.
Financial Analysis
| (1) Cost of Production
(per year) |
(Rs.) |
| Recurring expenses |
8060400
|
| Depreciation on machinery
@ 10% |
312500
|
| Depreciation on Building
@ 5 % |
50000
|
| Depreciation on office
furniture, other fixed assets @ 20% |
78500
|
| Interest on total investment
@ 14% |
820526
|
|
Total
|
9321926
|
(2) Turnover (per year) (Sales)
| Product |
Nos. |
Rate (In Rs.) |
Amount (In Rs.) |
| Elastic Tape |
1680000 |
6.50 |
10920000
|
|
Total
|
10920000
|
| (3) Net Profit (per year):
|
1598074
|
| (4) Net Profit Ratio
(Net profit/Turnover (per year) |
14.63% |
| (5) Rate of Return on
Investment (Net Profit/Total Capital Investment) |
27.27% |
(6) Break-even Point
| Fixed Cost |
(Rs.) |
| Depreciation |
441000
|
| Interest on capital investment
|
820526
|
| 40% of wages of staff
and labour |
403200
|
| 40% of other contingent
expenses |
129600
|
| Insurance |
12000 |
|
Total
|
1806326
|
| B.E.P. |
|
|
| |
= |
Fixed cost × 100
------------------------ |
| |
|
Fixed cost + Profit |
| |
|
|
| |
= |
53.06% |
Addresses of Machinery and Equipment
Suppliers
1. M/s. Baku Bhai Ambalal
3-Madrwah Estate,
Saki Vihar Road, Sakinaka,
Mumbai-72.
2. M/s. Prashant Engg. Co.
Plot No. 4/1-A,
GIDC Estate, Vatva,
Ahmedabad-382445.
Addresses of
Raw Material Suppliers
1. M/s. Moupan Ltd.
Modi Nagar, (U.P.)
2. M/s. Lohia Machine Ltd.
(Fibre Div.)
C-3 and 4, Panki Indl. Estate,
Kanpur.
3. M/s. Vardhman Spinning and Gen. Mills Ltd.
Chandigarh Road, Ludhiana.
4. M/s. India Spinners and Processors
5309, Basti Harphool Singh,
Delhi-110006
Contact for more information:
Information Manager
TIMEIS Project
E-mail: timeis@ficci.com
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