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Woollen Mufflers Knitted
| Product Code |
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260209007 |
| Quality and Standards
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As per IS 2422:1963
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| Uploaded
on |
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September
2007 |
Introduction
Hosiery Industry is an ancient industry
in the field of textiles and at present, this industry occupies
an important place in the Industrial Scenario of our country
by giving jobs to lakhs of people directly or indirectly and
by earning valuable foreign exchange.
In this report, efforts have been made
to give detailed Project Report for manufacturing of Woollen
Mufflers Knitted (Acrylic) which were worn by the people for
protection of neck and head portion of the body from cold,
and is feasible in this area.
Market Potential
Woollen Mufflers are generally used by
gents during winter season specially in the hilly areas, to
protect neck and head portion of the body from cold. Being
a very cheap product, it becomes within the easy reach of
common man, hence there is ample scope to start this industry
in any part of India both in towns and villages. The manufacture
of Mufflers is very simple and can be managed with a little
knowledge of knitting. Moreover, machinery and raw materials
required to start this industry are indigenously available.
Basis and Presumptions
1. The Project Profile has been prepared
on the basis of double shift of 16 hours each day, 25 days
in a month and at 75% efficiency.
2. It is presumed that in the Ist year,
the capacity utilisation will be 60% followed by 75% in the
next year and 80% in the subsequent years.
3. The rates quoted in respect of salaries
and wages for skilled workers and others are the minimum rates
in the State/neighbouring States.
4. Interest rate for fixed and working
capital has been taken @ 14% of an average, whether financed
by the Banks or by Financial Corporation.
5. Margin money required is minimum 30%
of the Projected investment.
6. Pay back period of the Project will
be after the initial gestation period of one and a half year,
it will require 2 years to pay back the loans.
7. Built up & covered area is taken
of its own
8. The rates quoted in respect of machines,
equipments and raw materials are those prevailing at the time
of preparation of this Project Profile and are likely to vary
from supplier to supplier and place to place. When a tailor
made Project Profile is prepared, necessary changes are to
be made.
Implementation Schedule
| Sl.No. |
Activity |
Period |
| 1. |
Preparation of Project
Report: |
|
| |
a) Calling quotations
|
1 month |
| |
b) Preparation |
2 weeks |
| 2. |
Provisional Registration
as SSI |
1 week |
| 3. |
Financial arrangements
|
3 months |
| 4. |
Purchase and Procurement
of machinery |
2 months |
| 5. |
Installation of machines
|
1 month |
| 6. |
Electrification |
1 month |
| 7. |
Recruitment of staff
and labour |
1 month |
Technical Aspects
Process of Manufacture
Dyed woollen/mixed yarn in different shades
is purchased from the market and is wound on the wooden bobbins
by a process known as winding. These bobbins are placed on
Hand-operated Circular Knitting Machines and Yarn is converted
into knitted cloth. This knitted cloth is cut into pieces
as per length of mufflers required. Both end of these cut
pieces are stitched or overlooked and fringes are attached
with hand process by ladies. The mufflers are then pressed
and packed in card board boxes and marketed.
Quality Control and Standards
The product proposed for manufacturing
is a fashioned item and having different designs and colour
combinations depending upon the demand of the consumers. So,
proper quality control on the product is not possible to be
maintained. However, for quality goods, the quality of yarn
in respect of evenness and correct counts and colour fastness
can be maintained. For this proposed items the specification
IS 2422:1963 may be followed.
Production Capacity (per annum)
Motive Power 5 HP.
Pollution Control
There are no pollution control measures
required as this industry does not involve any pollution.
Energy Conservation
As the power requirement is very small,
this can be conserved by proper house keeping.
Financial Aspects
A. Fixed Capital
(i) Land and Building
| (i) Land
and Building |
| Land 600sq.mt.
@ Rs. 2000p.s.m. Amounting Rs.1200000 |
| Building
Area |
| Factory shed |
250 sq. mt. |
| Store (Raw material)
|
50 sq. mt. |
| Store (Finished goods)
|
50 sq. mt. |
| Office etc. |
25 sq. mt. |
| Total Covered Area |
375 sq. mt. |
| Total Construction Cost
@ Rs. 3000/sq.mt. |
1125000 |
| Total Investment in
land and Building |
2325000 |
(ii) Machinery and Equipments
| Sl. No. |
Description |
Qty. |
Rate (Rs.) |
Value (Rs.) |
| 1. |
Hand Operated Circular
Knitting M/c of 6 1/2" dia with 240 needles with
designing wheels and needles. |
4 |
18000 |
72000 |
| 2. |
Overlock Machine three
thread with Motor and Stand. |
1 |
8000 |
8000 |
| 3. |
Sewing Machine with
Stand and Motor. |
1 |
3500 |
3500 |
| 4. |
Office furniture, cutting
table, pressing table, Firmas, Wooden Stands, Electric
Press. etc. |
L.S. |
L.S. |
40000 |
| |
Total
|
123500 |
| |
Total Fixed Expenditure
i+ii |
2448500 |
B. Working Capital
(per month)
(i) Staff and
Labour
| Sl. No. |
Designation |
No. |
Salary (Rs.) |
Total (Rs.) |
| 1. |
Manager/Knitting Master
|
1 |
9000 |
9000 |
| 2. |
Peon/Chowkidar |
1 |
3000 |
3000 |
| 3. |
Skilled Workers |
6 |
3500 |
21000 |
| 4. |
Overlock Machine Operator
|
1 |
5000 |
5000 |
| 5. |
Labels and fringes attachment
on contract basis (part time) |
4 |
3000 |
12000 |
| 6. |
Pressman (Part time)
|
1 |
3000 |
3000 |
| 7. |
Helpers |
1 |
3000 |
3000 |
| |
Total
|
56000 |
| |
Plus perquisites @10%
|
5600 |
| |
Total
|
61600 |
(ii) Raw Material (Including Wages and
Packing)
| Sl. No. |
Description |
Qty. |
Rate (Rs.) |
Value (Rs.) |
| 1. |
Dyed Acrylic 2/ 32×or
2/40× count (including wastage.) |
760 |
190 |
144400 |
| 2. |
Sewing thread, stickers,
labels, Polythene bags, boxes |
LS |
LS |
15000 |
| |
Total
|
159400 |
| (iii) Utilities |
(Rs.) |
| Power and Water |
7000 |
| (iv) |
Other Contingent
Expenses (per month) |
(Rs.) |
| 2. |
Advertisement |
5000 |
| 3. |
Transport |
2000 |
| 4. |
Consumable stores, needles,
oils etc. |
2000 |
| 5. |
Postage expenses/telephones
|
1000 |
| 6. |
Stationery |
1000 |
| 7. |
Repairs and maintenance
|
2000 |
| 8. |
Miscellaneous |
1000 |
| |
Total
|
14000 |
| (v) |
Total Recurring Expenditure
(per month) |
(Rs.) |
| a. |
Staff and Labour |
61600 |
| b. |
Raw material |
159400 |
| c. |
Utilities |
7000 |
| d. |
Other contingent expenses
|
14000 |
| |
Total
|
242000 |
| (vi) Total Working Capital
(on 2 months basis) |
484000 |
C. Total Capital Investment
| a. |
Fixed Capital |
2448500 |
| b. |
Working capital |
484000 |
| |
Total
|
2932500 |
Machinery Utilisation
75% machinery utilization is considered
for achieving the projected target.
Financial Analysis
| (1) Cost of Production
(per year) |
(Rs.) |
| Total recurring expenditure
|
2904000 |
| Depreciation on Land
& Building @ 5 % |
116250 |
| Depreciation on machinery
and equipments @ 10% |
8350 |
| Depreciation on office
furnitures and fixture @ 20% |
8000 |
| Interest on total investment
@ 14% |
410550 |
|
Total
|
3447150 |
(2) Turnover (per year)
| Items |
Qty. |
Rate (Rs.) per dozen
|
Value (Rs.) |
| Woollen Mufflers Knitted
(Acrylic) |
7200 |
550 |
3960000 |
| (4) Net Profit Ratio
|
|
|
| |
|
Net Profit × 100
|
| |
= |
覧覧覧覧 |
| |
|
Turnover per annum |
| |
|
|
| |
= |
12.95 |
| |
|
|
| (5) Net Rate of Return
|
|
|
| |
|
Net Profit × 100
|
| |
= |
覧覧覧覧 |
| |
|
Total Investment |
| |
|
|
| |
= |
17.49 |
6) Break-even Point
| (i) |
Fixed Cost |
(Rs.) |
| 1. |
Depreciation |
132600 |
| 2. |
Interest |
410550 |
| 4. |
40% of salary and wages
|
295680 |
| 5. |
40% of other contingent
expenses |
67200 |
| |
Total
|
906030 |
| B.E.P. |
|
|
| |
|
Fixed Cost × 100
|
| |
= |
覧覧覧覧 |
| |
|
Fixed Cost + Profit
|
| |
|
|
| |
= |
63.86 |
Addresses of the Machinery Suppliers
1. M/s. Popular Electrical and
Mechanical Works
Chawal Bazar,
Ludhiana.
2. M/s. Matharoo Mechanical Works
Bhaiwala Chowk,
Ferozepur Road,
Ludhiana.
3. M/s. S.T.M. Knitting Machine Manufacturers
Kalsi Nagar,
G.T. Road,
Ludhiana.
Raw Material Suppliers
1. M/s. Vardhman Spinning and General
Mills Ltd.
Chandigarh Road,
Ludhiana.
2. M/s. Sona Woollen Mills
156, Industrial Area泡,
Ludhiana.
3. M/s. Oswal Woollen Mills Ltd.
Industrial Area泡,
Ludhiana.
Contact for more information:
Information Manager
TIMEIS Project
E-mail: timeis@ficci.com
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