Woven Labels
| Production Capacity | 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. |
| Quality and Standards | 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
- The scheme has been prepared on the basis of 75% efficiency on single shift considering 25 working days in a month.
- 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.
- The break-even point in the scheme has been calculated on the full capacity utilization basis.
- 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.
- The rate quoted in respect of salaries and wages for workers and others are the minimum rates in the State, neighbouring states.
- Margin money required is minimum 30% of the Projected investment.
- After the initial gestation period of one and half year, it will require approximately 4 years to pay back the loans.
- Working capital for 3 months has been taken into consideration for smooth running of the project.
Implementation Schedule
Activity |
Period |
| Preparation of the Project Report: a) Calling quotations b) Preparation of Project report |
1 month 2 weeks |
| Provisional registration as SSI unit | 1 week |
| Financial arrangements | 3 months |
| There is no need for Pollution Control equipment. Even then NOC from Pollution Control Board is required | 3 months |
| Installation of machines and equipments | 2 months |
| Electrification | 1 month |
| 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) |
| Quantity | 1,44,00,000 Labels |
| 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
Fixed Capital
| Land and Building | Value (Rs.) |
| Rented 500 sq. mtr @ Rs. 100 sq.mtr. | 50,000 |
Machinery and Equipments
Description |
No. |
Rate (Rs.) |
Amount (Rs.) |
| Reel Winder 8 spindle. | 1 | 30000 | 30000 |
| Pirn winder 8" | 1 | 40000 | 40000 |
| Beam winding M/c Warping) | 1 | 30000 | 30000 |
| Woven Labels making machine with Jacquard | 8 | 150000 | 1020000 |
| Creel Stands | LS | 20000 | 20000 |
| Card punching and stitching machine | 1 | 60000 | 60000 |
| Total | 1200000 | ||
Other Fixed Assets |
(Rs.) |
| Electrification and Installation Electric Motors | 100000 |
| Furniture and office equipments | 200000 |
| G.Total | 1500000 |
Working Capital (per month)
Staff and Labour (per month)
Staff and Labour (per month) |
(Rs.) |
||
| Administrative and Supervisory | |||
| Manager | 1 | 12000 | 12000 |
| Supervisor/Accountant | 6 | 6000 | 6000 |
| Peon/Watchman | 3 | 3500 | 10500 |
| Skilled/Unskilled Worker | |||
| Operators for label making machines | 4 | 5000 | 5000 |
| Skilled/Unskilled Worker | |||
| Operators (Real winder pirn winder/Beam winder) | 3 | 5000 | 15000 |
| Helpers | 2 | 3000 | 6000 |
| Total | 69500 | ||
| Perquisites @ 22% | 15290 | ||
| Total | 84790 | ||
| Say | 85000 | ||
Raw Material (per month) |
Qty (mts.) |
Amount (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.
Utilities (per month) |
(Rs.) |
| Power and Electricity | 20000 |
Other Contingent Expenses |
(Rs.) |
| Rent | 50000 |
| Postage and stationery | 2500 |
| Repair and maintenance | 3000 |
| Telephone | 5000 |
| Transportation charges/cartage | 15000 |
| Insurance | 5000 |
| Office expenditure | 30000 |
| Packing expenses | 7500 |
| Sales & Marketing Expenses | 5000 |
| Total | 123000 |
Working Capital (per month) |
(Rs.) |
| Staff and Labour | 85000 |
| Raw material | 230000 |
| Utilities | 20000 |
| Other expenditure | 123000 |
| Total | 123000 |
| Total Working Capital for 3 months = 458000 x 3 = | Rs. 1374000 |
Total Capital Investment
| Machinery and Equipments | Rs.1500000 |
| Total working capital for 3 months | Rs. 1374000 |
| Total | Rs. 2874000 |
Financial Analysis
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 |
Turnover (per annum) |
(Rs.) |
| By sale of : 1,44,00,000 Labels @ Rs. 500 per thousand | 7200000 |
Net Profit (per year) |
(Rs.) |
| Profit = Sales - Production Cost = 7200000-6000880 |
1199120 |
Net Profit Ratio
Net Profit per year ×100 Turn over per year 1199120 ×100 7200000 16.6% |
Net Rate of Return
Net Profit per year ×100 Total Investment 1199120 7200000 16.6% |
Break-even Point
Fixed Cost |
(Rs.) |
| 40% of salaries | 408000 |
| 40% of utilities | 96000 |
| 40% of other expenditure | 2198400 |
| Depreciation on machinery | 120000 |
| Depreciation on office furniture | 40000 |
| Interest on total investment | |
| Total | 2862400 |
| B.E.P | Fixed Cost ×100 --------------- Fixed Cost + Profit 2862400×100 = 72.2% |
Addresses of Machinery Manufacturers and Suppliers
- M/s. Nota Machinery Works
Industrial Area-A,
Ghorrawali Factory,
Ludhiana. - M/s. Nota Machinery Corporation
Sherpur,
Ludhiana. - M/s. Hamdard Textile Engineers
Putlighar,
Amritsar. - M/s. Guru Nanak Textile
Machinery Manufacturers
G.T. Road,
Amritsar. - M/s. Nanak Chand and Sons
Ganesh Nagar,
St. No. 3, Link Road,
Ludhiana.
Raw Material Manufacturers and Suppliers
- M/s. J.C.T. Ltd.
Phagwara (Punjab). - M/s. Modi Cone Ltd.
Modinagar-201204. - M/s. Esslon Synthetics Ltd.
Dakshineshwar Building,
10-Hailey Road,
New Delhi. - M/s. Shree Shyam Filaments
15/17, Barwar House,
Ajmer Road,
Jaipur-110065. - M/s. Rajasthan Patro Synthetics Ltd.
4, Community Centre,
East of Kailash,
Delhi-110065. - M/s. J.K. Synthetics Ltd.
Kota. - M/s. Vardhman Spinning and General Mills Ltd.
Samrala Road,
Ludhiana. - M/s. Mahavir Spinning and
General Mills Ltd.
Hoshiarpur (Punjab) - M/s. Govindwal Cooperative Spinning Mills.
Goindwal Sahib,
Amritsar (Punjab)
For further information please contact
Information Manager
TIMEIS Project
E-mail: timeis@ficci.com
