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Woven Labels

Quality and Standards : No specification has been framed so far, for this product. However, the quality is to be maintained as per the requirement of the market by using good quality of yarn.
Production Capacity : Qty. : 14400000 Labels (per annum)
Value: Rs. 7200000
Uploaded on   15th December 2006

Introduction

Labels are used in every garment industry of Textile and Leather as well as by the tailors to give the identity of the manufacturers and the specifications of the material used. With the increasing awareness of the consumer towards the better quality product and feeling the brand consciousness, this has become a neacessity for the garment manufactuers and the tailors.

Market Potential

There are very few units in the State which are engaged in manufacturing lables. These labels are required by each and every type of garment manufacturing unit as well as leather products. Due to the increase in the production of garments, the demand of labels is also being increased day-by day. The export of readymade garments to different countries has also been increased. Still there is a gap of supply of labels to the manufacturing units. There is good scope if some units come forward for manufacturing of labels.

Basis and Presumptions

1. The scheme has been prepared on the basis of 75% efficiency on single shift considering 25 working days in a month.

2. The rate of 12% interest in the scheme has been worked out on the basis of 12% on an average however, this figure is likely to vary depending on the financial out-lay of the project as well as location of the unit.

3. The break-even point in the scheme has been calculated on the full capacity utilization basis.

4. The cost of machinery and equipment as indicated are approximate which are fuling locally at the time of preparation of the scheme when a tailor cut project profile is prepared, necessary changes are to be made.

5. The rate quoted in respect of salaries and wages for workers and others are the minimum rates in the State, neighbouring states.

6. Margin money required is minimum 30% of the Projected investment.

7. After the initial gestation period of one and half year, it will require approximately 4 years to pay back the loans.

8. Working capital for 3 months has been taken into consideration for smooth running of the project.

Implementation Schedule

Sl.No. Activity Period
1.

Preparation of the Project Report:

a) Calling quotations
b) Preparation of Project report

 


1 month
2 weeks

2. Provisional registration as SSI unit 1 week
3. Financial arrangements 3 months
4. There is no need for Pollution Control equipment. Even then NOC from Pollution Control Board is required 1 week
5. Purchase and procurement of machinery and equipments 3 months
6. Installation of machines and equipments 2 months
7. Electrification 1 month
8. Recruitment of staff and workers 2 months

Technical Aspects

Process of Manufacture

The main raw material required to manufacture Labels is Polyester Yarn/ Silkyarn/Cotton yarn/Viscose yarn/ Blended yarn of different counts and colours. The yarn normally comes in the market on cones, from these cones warp is made on warping machine. The design which is required to be produced is punched through punching machine on card. Some people use few ends of Jari yarn to enhance beauty of the label. The width of the label depends from one inch to two inches. Accordingly, the warp is made and the yarn is inserted to shuttle for weaving the labels in a continous length. These labels are checked and packed for marketing to the garment manufacturers.

Quality Control and Standards

The Bureau of Indian Standards has not brought out any specifications for labels. Labels are manufactured as per the customer design and selection of material. So far, no unit is adopting any quality standard for this purpose. However, quality of the woven labels depends upon the materials use and the fast colour of the yarn used for manufacturing woven labels.

Production Capacity
(per annum)
(a) Quantity
1,44,00,000 Labels
(b) Value
Rs. 37,44,000-00

Motive Power 20 H.P.

Pollution Control

No effluents are required, since the process involves weaving of yarn into woven labels. So, there is no requirement of installation of effluent plant.

Energy Conservation

Energy Conservation has become essential in these days. It becomes the individuals duties to realise its necessity.

Financial Aspects

A. Fixed Capital

(i) Land and Building
Value (Rs.)
Rented 500 sq. mtr @ Rs. 100 sq.mtr.
50,000

(ii) Machinery and Equipments

Sl. No. Description Unit Rate (Rs.)
Total (Rs.)
1. Reel Winder 8 spindle. 1
30000
30000
2. Pirn winder 8" 1
40000
40000
3. Beam winding M/c Warping) 1
30000
30000
4. Woven Labels making machine with Jacquard 8
150000
1020000
5. Creel Stands 1
20000
20000
6. Card punching and stitching machine 1
60000
60000
Total
1200000

(iii) Other Fixed Assets
(Rs.)
1. Electrification and Installation Electric Motors
100000
2. Furniture and office equipments
200000
G.Total
1500000

B. Working Capital (per month)

(i) Staff and Labour (per month)
(Rs.)
Administrative and Supervisory
1. Manager 1
12000
12000
2. Supervisor/Accountant 1
6000
6000
3. Peon/Watchman 3
3500
10500
Skilled/Unskilled Worker
1. Operators for label making machines 4
5000
20000
Skilled/Unskilled Worker
2. Operators (Real winder pirn winder/Beam winder) 3
5000
15000
3. Helpers 2
3000
6000
Total
69500
Perquisites @ 22%
15290
Total
84790
Say
85000

(ii) Raw Material (per month)
(Rs.)
Polyester yarn III denier 600 kg. @300
180000
Viscose yarn 120 denir 200 kg. @250
50000
Total
230000

Note : Woven Labels are also made out of cotton, silk and nylon yarn. For calculations purpose, we have mentioned here Polyester and viscose yarn.

(iii) Utilities (per month)
(Rs.)
Power and Electricity
20000

(iv) Other Contingent Expenditure
(Rs.)
1. Rent
50000
2. Postage and stationery
2500
3. Repair and maintenance
3000
4. Telephone
5000
5. Transportation charges/cartage
15000
6. Insurance
5000
7. 8. Office expenditure
30000
9. Packing expenses
7500
10. Sales & Marketing Expenses
5000
Total
123000

(v) Working Capital (per month)
(Rs.)
Staff and Labour
85000
Raw Material
230000
Utilities
20000
Other expenditure
123000
Total
458000
(vi) Total Working Capital for 3 months = 458000 x 3 =
Rs. 1374000

C. Total Capital Investment

(i) Machinery and Equipments
Rs.1500000
(ii) Total working capital for 3 months
Rs. 1374000
Total
Rs. 2874000

Financial Analysis

(1) Cost of Production (per annum)
(Rs.)
Raw Material
2760000
Staff and Labour
1020000
Utilities
240000
Other contingent expenses
1476000
Depreciation on Machinery @ 10%
120000
Interest on total investment @ 12%
344880
Depreciation on Office furniture.
40000
Total
6000880

(2) Turnover (per annum)
(Rs.)
By sale of : 1,44,00,000 Labels @ Rs. 500 per thousand
7200000

(3) Net Profit (per year)

(Rs.)
Profit = Sales - Production Cost
= 7200000-6000880
1199120

(4) Net Profit Ratio  
=
Net Profit per year ×100
-----------------------------
Turn over per year
=
1199120
------------x100
7200000
=
16.6%
 
(5) Net Rate of Return  
=
Net Profit per year ×100
-----------------------------
Total Investment
=
1199120
------------x100
2874000
=
41.7%

(6) Break-even Point

Fixed Cost (per annum)
(Rs.)
1. 40% of salaries
408000
2. 40% of utilities
96000
3. 40% of other expenditure
2198400
4. Depreciation on machinery
120000
5. Depreciation on office furniture
40000
6. Interest on total investment
Total
2862400

B.E.P.
=
Fixed Cost ×100
---------------------
    Fixed Cost + Profit
     
 
=
2862400
-------------x100
    3962520
 
=
72.2%

Addresses of Machinery Manufacturers and Suppliers

1. M/s. Nota Machinery Works
Industrial Area-A,
Ghorrawali Factory,
Ludhiana.

2. M/s. Nota Machinery Corporation
Sherpur,
Ludhiana.

3. M/s. Hamdard Textile Engineers
Putlighar,
Amritsar.

4. M/s. Guru Nanak Textile
Machinery Manufacturers
G.T. Road,
Amritsar.

5. M/s. Nanak Chand and Sons
Ganesh Nagar,
St. No. 3, Link Road,
Ludhiana.

Raw Material Manufacturers and Suppliers

1. M/s. J.C.T. Ltd.
Phagwara (Punjab).

2. M/s. Modi Cone Ltd.
Modinagar-201204.

3. M/s. Esslon Synthetics Ltd.
Dakshineshwar Building,
10-Hailey Road,
New Delhi.

4. M/s. Shree Shyam Filaments
15/17, Barwar House,
Ajmer Road,
Jaipur-110065.

5. M/s. Rajasthan Patro Synthetics Ltd.
4, Community Centre,
East of Kailash,
Delhi-110065.

6. M/s. J.K. Synthetics Ltd.
Kota.

7. M/s. Vardhman Spinning and General Mills Ltd.
Samrala Road,
Ludhiana.

8. M/s. Mahavir Spinning and
General Mills Ltd.
Hoshiarpur (Punjab)

9. M/s. Govindwal Cooperative Spinning Mills.
Goindwal Sahib,
Amritsar (Punjab)

Contact for more information:

Information Manager
TIMEIS Project
E-mail: timeis@ficci.com

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