PROJECT PROFILE with Covers Set

PRODUCT CODE : 13924

QUALITY AND STANDARDS : As per Customer’s requirements

PRODUCTION CAPACITY (ANNUAL) : 36000 Nos.

MONTH AND YEAR OF PREPARATION : June, 2020

PREPARED BY: M.S.M.E-Development Institute, Kokar Industrial Area, Ranchi-834001(Jharkhand) Phone No. : 0651-2546133 E-mail. : [email protected] Website: msmediranchi.nic.in

INTRODUCTION

In a well furnished home, bed room is very important one, as a part of overall interior of a House. So a good bed cover matching with colour of the room and pillow cover is very important as a part of interior bed room. This reflects taste and status of the owner, who has spent enormous sum of money to decorate the house. So the demand of above product such as bed cover and pillow cover is increasing in the domestic as well export market every day. The made up products are very easy to manufacture and easily marketable. The above products have been finding acceptance due to low cost of fabrication, saving of cloth as well as saving of time. Also at the present COVID-19 pandemic bed linen is in great demand and use at Hospitals and Quarantine centre.

MARKET POTENTIAL

The demand in the market specially to cater both middle and upper class of families settled in urban areas, bed cover and pillow cover demand is increasing day by day to cater the taste of owner. The market of bed sheet and pillow cover has good scope in India and abroad. The marketing is not a problem provided the customers are made aware of the cost benefit. There is a good market in Delhi, Kolkata, Hyderabad, Lucknow, Chennai, Ranchi, Mumbai and other major cities. .The export market for Indian bed linen is in Germany, USA, Canada, U.K. Indonesia and Austria. There is a good demand in Government departments like Railways, Tourism, Defence, Healthcare, Hospitals, Quarantine centre and Police dept etc.

QUALITY AND STANDARDS: There is no standard specification for the Bed linen with pillow cover set. The bed sheets are manufactured by the customer’s specification, design and style. There is some specification by the Govt. dept. like Railway, Police and Tourism etc.

PRODUCTION CAPACITY Qty.: 36,000 Nos. (Per annum)

Value: Rs. 1,53,00,000

BASIS ANDPRESUMPTIONS

1. The 250 sq. mt. covered area is required on rental basis @Rs. 20per sq. mt. depends upon area to area.

2. The machinery and equipment are of a particular make and price of machines are drawn on the basis of present market rates.

3. The working capital has been taken on 3 months basis or 75%efficiency basis. After one or two years the full capacity may be utilized.

4. The technical staff and skilled labour of this industry is locally available.

5. The calculation is based on bed sheet of 5 mtr. and 1.5 mtr. For pillow cover.

6. The unit will work on single shift basis 300 days in a year.

IMPLEMENTATION SCHEDULE: Sl.No. Activity Period

1. Preparation of Project report 2 weeks

2. Provisional registration 1 week

3. Proposal of Loan 1 weeks

4. Approval of plan 2 weeks

5. Sanction of loan from Bank 4 weeks

6. Procurement of Raw materials 3 weeks

7. Approval from other Govt. agencies 3 weeks

8. Procurement of machinery &Equipments 6 weeks

9. Recruitment of Staff & Labour 3 weeks

10. Trial production 1 weeks

TECHNICALASPECTS

Process of Manufacture

In woven cotton fabric/grace fabric/terrycot fabrics different colors and shades are available in the open market. To check unevenness of fabric and defect in color dyes, the cloth is laid on the table for visual inspection of the said defects before cutting of cloth. The fabric is then cut as per length of bed sheet and pillow cover and stretched, embroidered by stitching machines. The products are labeled, pressed and then packed in polythene packets followed by cartoon boxes for dispatch.

Quality Control and Standards

There are a number of BIS prepared on fabrics so precaution should be taken while purchasing of raw material in fast shade and good quality.

Production Capacity (per year)

Item Qty Amount in Rs Bed sheet set with pillow 36,000 Nos 1,53,00,000 cover of different design and shade

Motive Power Requirement : 2 kW.

FINANCIALASPECTS

A. Fixed Capital

(i) Land and Building (Rented) ( per month) (Rs)

Covered area 250 sqmt @Rs 20 per sqmt =5,000

(ii) Machinery and Equipment S.no Particulars Qty Amount in Rs 1 Foot operated stitching machine with all accessories 2 24000.00 2 Double needle stitching machine with motor and all 1 35000.00 accessories 3 Flat lock stitching machine with motor and 1 35000.00 accessories 4 Installation charges @10 % with electrification etc 9400.00 5 Workshop and testing equipment LS 15000.00 6 Office equipment 30000.00 (iii) Pre-operative Expenses 10000.00 Total 1,58,400.00

B. Working Capital (per month)

(i) Staff and labour S.no Designation No Salary( inRs) Amount (in Rs) 1 Cutting Master 1 7000.00 7000.00 2 Supervisor 1 8000.00 8000.00 3 Accountant cum 1 1500.00 1500.00 clerk/ part time 4 Skilled workers 4 7000.00 28000.00 5 Un-skilled workers 1 5000.00 5000.00 6 Peon cum 1 5000.00 5000.00 Chowkidar perquisties@ 20% 10900.00 6,54,00.00

(ii) Raw Material and packaging Material

S.no Particular Qty Rate Amount (in Rs) 1 Cotton / grace 19500mtr 52/mt 10,14,000.00 fabrics of different clours,design and shade 2 Sewing/ embroidery 3000pcs 25/set 75,000.00 thread and other accessories including packing material Total 10,89,000.00

(iii) Utilities

Description Rs Power/Electricity and water charges 3000.00

(iv) Other Contingent Expenses

S.no Item Amount ( in Rs) 1 Rent 5000.00 2 Advt and Publicity 5000.00 3 Postage, Stationary and Telephone 2500.00 4 Travelling/transportation charges 6000.00 5 Insurance 1000.00 6 Misc 2000.00 7 Consumable store 2000.00 Total 23500.00

(v) Total Working Capital

S.no Item Amount (in Rs) 1 Salary and wages 65400.00 2 Raw Material 1089000.00 3 Utilities 3000.00 4 Other Expenses 23500.00 Total 11,80,900.00

C. Total Capital Investment

S.no Capital Amount in Rs 1 Fixed Capital 1,58,400.00 2 Working Capital (for 3 months ) 35,42,700.00 Total 37,01,100.00

MACHINERY UTILISATION

Capacity is utilized 75% of the installed capacity.

FINANCIAL ANALYSIS

(1) Cost of production (per annum) In Rs (a) Total recurring expenditure 1,41,70,800.00 (b) Depreciation on m/c and equipments @10% 10,340.00 (c) Depreciation on m/c and equipment and 9,000.00 fixtures @ 20% (d) Interest on total investment @ 14 % 5,18,154.00.00 Total 1,47,08,000.00

(2) Turnover (per year)

Item Qty Rate in Rs Amount in Rs Bedhseet sets with 36000 nos 450.00 1,62,00,000.00 pillow covers of different colors, design and shades

( Net Profit (per year)

Turnover - Cost of production = Net Profit

Rs. 1,62,00,000 - 1,47,08,000 = 14,92,000.00

4. Net Profit Ratio:

Net Profit per year x 100 14,92,000 x 100

Turn over per year 1,62,00,000.00

= 9.21 %

5. Rate of Return:

Net Profit per year x 100 14,92,000 x 100

Total Investment 37,01,100

= 40.31%

6. Break Even Point Fixed Cost: Depreciation : 19340.00

Rent : 60000.00

Interest : 484134.00

40% of other expenses including utilities : 84000.00

40% of salary & Wages : 313920.00

Insurance : 12000.00

Total Rs. 9,73,394.00

Break Even Point :

Fixed Cost x 100 9,73,394 x 100

Fixed Cost + Net profit 9,73,394 + 14,92,000

= 39.48 %

Name and Address of Machinery Suppliers:

1. M/s Kapoor Sewing Machine F-174-B Laxmi Nagar Delhi-110092

2. M/s K.C Sewing Machine Jagatpuri Delhi-110051

3. M/s Rajan Hosiery Enterprises 21-B,New Qutab Road Delhi-110006

4. M/s.Paul Brothers & Co. 1523,NaiSarak, Delhi-110006

Name and Address of Raw Material Suppliers:

1. M/s Handloom Cloth Emporium C/o M R Associates Jugsalai, Jamshedpur Jharkhand

2. M/s Babulal Prem Kumar Upper Bazar, Ranchi Jharkhand