Pre Feasibility Report on Dying & Printing

& Arti les

Submited by
2009-10 !ame "# "& "( *+ ,&
Roll !o.
1

Asodariya Mayur $haroliya %aurav $hoi Se'al )hopada Manish %oyani !ilesh

Submitted to Prof. Mahesh Trivedi

-:INDEX:NO. CONTENT
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 Introduction Of The Industry Introduction Of The Company Infrastructure Acquirement Description Of Machineries Production Capacity !or"in# Capita$ %equirement Per Month %a& Materia$ 'sed In Dyein# Production Process P$ant )ayout Or#ani+ationa$ ,tructure )a.or Ana$ysis Capita$ ,tructure Cost of capita$ Cost /o$ume Profit Ana$ysis 0irst 1ear 2stimate And 0uture Pro3ections Capita$ .ud#etin# 2stimated 5a$ance sheet 0or The 0irst 1ear Mar"et Potentia$ 6ecessary )icenses

PAGE NO.
2 3 4 7 1 11 12 1( 1* 12 22 24 2( 24 2* 23 31

INTRODUCTION OF THE INDUSTRY

The te7ti$e industry in ,urat is a "ey industry .ecause ma3ority of the peop$e of the ,urat are depended on the te7ti$e industry inc$udin# te7turisin#8 po&er $ooms8 dyein# and printin# mi$$s8 co$our and chemica$s8 em.roidery8 &ho$e se$$in# and retai$in#8 transportation and .ro"era#e is &e$$9

:enera$$y the pattern &hich is fo$$o&ed in the te7ti$e industry is the te7turisers manufacture yarn and se$$ it to the &ai;ers8 they manufactures #ray c$oth and se$$ it to the &ho$e se$$ers8 the &ho$e se$$ers #i;e the 3o. &or" to the mi$$s and<or em.roidery and se$$ it to the retai$ers &ithin the city or outside the city or e7port it to the forei#n countries9 And then the retai$ers se$$ to the fina$ customers9

INTRODUCTION OF THE COMPANY

Name of the company:DIVINE INDUSTRIES PVT.LTD.

Location of the factory:G.I.D.C. PANDESARA, SURAT-394221

Constitution:PRIVATE LIMITED COMPANY

The company &as set up for a dyein# house in one of the industria$ areas of ,urat accordin# to the Indian company=s Act 1-(48 re#istered to the state re#istrar of :u3arat and the unit &i$$ .e en#a#ed in the manufacturin# > Dyein# process of art si$" c$oth of ;arious types and &i$$ .e doin# 3o. &or"9

INFRASTRUCTURE ACQUIREMENT
To esta.$ish dyein# mi$$ &e need to acquire fo$$o&in# infrastructure .asica$$y9 )and 5ui$din# P$ant ? Machinery 0urniture ? 0i7tures /ehic$es

Total Investment:@%upees In $ac"sA

NO.
1 2 3 4 5 6 7

DESCRIPTION
)and 5ui$din# p$ant ? machinery furniture ? fi7tures /ehic$es pre$iminary e7penses mar#in for &or"in# capita$ TOTAL INVESTMENT

NO. !TY COST AMOUNT

4 sq9 yard 1 17 2 * * * 22397 ( ( 29( 3( 431.2

Land
To esta.$ish the dyein# mi$$ &e &i$$ need to acquire 4 &i$$ cost us around * $ac"s on the .asis of rupees 2 in the current scenario9 sq9 yard $and and it sq9 yard pre;ai$in#

Building
The company &i$$ ha;e to construct the .ui$din# on the $and as &e$$ it has to construct the .ui$din# in the area around 2( sq9 yard &hich &i$$ .e sufficient to inc$ude a$$ the machineries8 offices8 stora#e faci$ities etc9 and it &i$$ cost around * $ac"s to the company on the .asis of the rate pre;ai$in# of the cement8 stee$8 sand8 .ric"s and the $a.our char#es9

Table of plant & machineries with their costs are as follows

TA"LE O# PLANT $ MAC%INERIES SR.NO.
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17

NAME O# M C.
A9C9 M<C9 AI% COMP%2,,'%2 M<C9 5OI)2% COMP'T2%, D9:9,2T 2TP P)A6T 0O)DI6: M<C9 :A, 5'%62% B2T D12I6: M<C9 )OOP MACCI62 PADDI6: M<C9 P%2,,'%2 D%'M M<C9 ,T26T2% M<C !A,CI6: D'6DI M<C !AT2% 5O%I6: M<C9 !2I:CI6: ,CA)2 M<C9 E2%O E2%O M<C9

NOS.
2 1 1 2 1 1 2 2 * 1 1 4 2 1 2 3 1

COST
2 * 17 3 1( 2( 7( 1 ( 1( 7( 3 * 4 1 1

AMOUNT
4 * 17 4 1( 2( 1( 2 4 1( 3 4 * * 3 1 22370000

TOTAL COST O# MAC%INARY

DISCRIPTION OF MACHINARIES
Air compressor machine
This machine is used to operate the ;a$;es of the machineries9 It operates the ;a$;e throu#h the air9 And a$so used to #i;e the pressure on the ro$$s9 It can .e acquired from the $oca$ mar"et

Boiler
It con;erts &ater into steam and than the steam is used in 3et dyein# and $oop a#er machine8 &ashin# "undi and drum &asher9 It is operated &ith the ener#y of coa$9

Fol in! machine

It is used to fo$d the c$oth after the comp$etion of dyein# process9

"as burner
It is used to #i;e heat to the stanter machine and $oop a#er machine9 :as supp$y of :u3arat #as $td9 It is used to operate it9

10

#et yein! machine

It is used to scour8 &hiten and dyein# the c$oth it is "ey machine in the dyein# process9 Co$ours8 chemica$s and &ater are used in this machine

Loop machine
It is used to cure the padded c$oth &ith the use of dry steam

$a

in! machine
This machine is used to pad the co$our on the c$oth after &hitenin#

the c$oth9

$ressure rum machine

This machine is used for scourin# and s&e$$in# purpose in te7ti$e9 !e can set the shrin"a#e of the fa.ric and #i;e soft compactin# structure to the fa.ric .y #i;in# pressure of a.out 3 "#9 5y steam

%tenter machine

11 It is the heart of dyein# mi$$9 It is used for settin# of &hite and dyein# materia$ &ith particu$ar &idth and shrin"a#e9 It is used for finishin# of dyein# materia$

&ashin! machine
It is used for &ashin# the padded c$oth after $oop a#in# to #i;e e7tra .ri#htness to the c$oth &ith the use of chemica$s9

'ero (ero machine

It is used to #i;e e7tra fee$ to the c$oth after finishin# .y ru..er .e$t9

12

PRODUCTION CAPACITY
The company &i$$ .e ha;in# the production capacity of 19 meters Per day i9e9 3 9 $ac"s meter p9a9 on the .asis of 3 &ith the acquired insta$$ments of p$ants and machinery9 $ac"s

&or"in# days

Availability of power water etc Power

'nit &i$$ .e ha;in# :25 po&er supp$y9 0urther there &i$$ .e D9:9 set of 32 D/A as stand .y arran#ements9

Water
The unit &i$$ .e ha;in# its o&n &ater arran#ement throu#h 5ore &e$$ in the p$ant9 Cence the unit &i$$ .e ha;in# sufficient &ater arran#ements9

)e*uirement of +mployees

13 There &i$$ .e need of a.out 200 nos9 of emp$oyees inc$udin# casua$ &or"ers8 staff etc9

WORKING CAPITAL REQUIREMENT PER MONTh

NO.
1 2 3 4 5

PARTICULAR
co$our chemica$s Cash ? 5an" 5a$ance Po&er #as ? coa$ sa$ary ? &a#es

AMOUNT
12( 3 4 * 7(

T&'()

3500000

14

RAW MATERIAL USED IN DYEING

N&.
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19

COLOURS
Disperse ye$$o& C4: Disperse # ye$$o& 2:6 Disperse .$ue ,% Disperse ye$$o& 1 :6 Disperse .ro&n 35, Disperse ne;y .$ue 3: Disperse .ro&n 3%2) Disperse scar$ate %% Disperse d red 25 Disperse ;io$et 3% Disperse ru.ine 35 Disperse red ;io$et 05) Disperse oran#e 3% Disperse pin" (56 Disperse red 45 Disperse ye$$o& .ro&n 2%C Disperse "ha"hi 2%. Disperse .$ue D5% Disperse scar$ate 5%

A$$ the co$ours are a;ai$a.$e in the ,urat from the chemica$ factories or from the chemica$ traders the #i;en a.o;e are the current rates pre;ai$in# in the mar"et of co$ours and chemica$s9

15

Chemicals use in yein! Used in ro!ess

N&.
1 2 3 4 5 6 7 8 9 10 11 12

C%EMICALS
Caustic soda Cydro ,oap ,oda , Dye scour ,&e$$in# a#ent O7a$ic acid Acetic acid )e;aco$ P5 Citric acid !hite % CC)

Used in finish
NO.
1 2 3 4 5 6 7 8

#INIS% C%EMICALS
Ci.a soft Micro 06 Po$y so$ Cationic softener P2 5ody fi$$er P'% %esin

%uppliers of colours

16 0o$$o&in# are some of the ma3or supp$iers from &here &e can acquire different co$ours

N&.
1 2 3

COLOURS SUPPLIERS
Co$ourta7 ,pectrum dye hem 6o;a dye stuff

PLACE
,urat ,urat ,urat

%uppliers of chemical
0o$$o&in# are some of the ma3or supp$iers from &here &e can acquire different chemica$s9

N&.
1 2 3 4 5

C%EMICALS
Co$urta7 ,ando+ Co$our Chem9 ICI Chemica$ %o+ari Chemica$s

PLACE
,urat ,urat ,urat ,urat ,urat

PRODUCTION PROCESS

17

',W M,*%'I,L &'UM M,)$I#% -%* &.I#+ S*%#*%' M,)$I#% P'I#*I#+ M,)$I#% /S,'%%S0 '(*,'. M,)$I#% /&'%SS0 L((P M,)$I#% W,S$I#+ S*%#*%' M,)$I#%

1%'(-1%'( M,)$I#% "(L&I#+ M,)$I#% "I#IS$%& P'(&U)*

)aw material or "ray epartment

18 It inc$udes #ray chec"in# for &ea;in# dra&.ac"s and $en#th ? &idth9 Mar"in# on the c$oth accordin# to .atch8 and is #ot ready for the dyein# process9

,rum process
Then it is ta"en into the pressure drum machine for s&e$$in# and for #i;in# soft compactin# structure9

#et yein! process

In it the dyein# process is done accordin# to the requirement of co$ours such as pin"8 .$ue8 #reen8 ye$$o&8 red8 .ro&n etc9 on the fa.ric9 Materia$ is !hitten for the paddin# process9 This &ho$e process is conducted in the 3et dyein# machine9

%etenter process
In this process fa.ric is sett$ed accordin# to the &idth8 $en#th and shrin"a#e9 And fa.ric is sett$ed on hi#h temperature for permanent $en#th and &idth9 This process is carried out on stenter machine9

$a

in! machine for sarees & ress

Paddin# means coatin# the co$our on the &hite sett$ed c$oth9

Different shades of co$ours are #i;en on the one piece on$y9 It is done throu#h the paddin# machine9

Loop machine

19 Than the fa.ric is ta"en to the $oop a#er for curin# and de;e$opin# the co$ours on it on hi#h steam temperature the fa.ric is "ept in the machine unti$ the co$our is de;e$oped9

&ashin!
The fa.ric is &ashed after the a#er process in .oi$ed &ater &ith chemica$s9 Co$our is .ri#htened due to the &ashin# It remo;es access padded co$ours on the c$oth9

%tenter machine
Once a#ain ,tenter machine comes into a process9 At first time ,tenter machine is used for settin# on #rey @unprintedA and this time it is used for settin# on printed c$othes8 after c$othes ha;in# &ashed9

'ero-(ero machine
It is used to iron the c$othes9 Its capacity to iron the c$othe is 4 per day9 A.out 4>1 "#9 Pressure is #i;en to this machine9 >7 meter

Fol in! machine

Cere the finished materia$ is fo$ded appropriate$y for fina$ dispatchin# to the customers9

Final ispatchin!
And in the $ast the fo$ded materia$ is dispatched to the c$ients &ith the pac"a#in# in the p$astic .a#9

PLANT LAYOUT

20

&. +. S%*

+AS%ING &'UM B(IL %'

LOOP M C

E T P P L A N T

*ET DYEING

#OLDING

STENTER

COLOUR STORE MAINTENAN CE STORE

,ER O ,ER O MC

C%AIRMAN DYEING MASTER

MANAGER A C STA## GATE

PAD DING MAC %INE

GATE EE

21

ORGaNISATIONAL STRUCTURE

C:(.54(/

D12./3 4(-'25

M(/(325

A--.-'(/' 012./3 4(-'25 M(-'25 I/ 6:(532 S7925 ;.-&5 L(>&7525

A66&7/' (/' A/' E<6.-2 #.''25 C)25=

T.42 822925

E/3./2 25 E5

P756:(25 S'&52 %2)925 822925

C(-:.25 +.524(/

22

LABOUR ANALYSIS

23

L(>&75 6&/'5(6'&5

L(>&75 ./ 6:(532

M(6:./2 &925('&5

A--.-'(/' &925('&5

%2)925

"23(5.

24

%alary statement
@,a$ary in monthA

SR. NO.
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21

SALARY STATEMENT EMPLOYEES AMOUNT

dyein# master asst9 dyein# master in char#e ,uper;isor Mana#er Accountant time "eeper 2n#ineer Purchaser e7cise C$ar" Cashier store "eeper 0itter !ireman Ce$per Peon ,ecurity ,&eeper $a.our char#es 29T9P9 emp$oyees .oi$er emp$oyees TOTAL SALARY ( 1( 14 1 2 * 4 1( * (( ( (( 12 12 12 4 12 3 ( 1( 2 750000

25

CAPITAL STRUCTURE
%ources of fun s
NO.
1 2 3 4

PARTICULAR
share capita$ secured $oan unsecured $oan cash credit

AMOUNT
1( 2 ( 3(

TOTAL

43500000

In the a.o;e ta.$e the tota$ fund consist of %s943( comprisin# of 1( ( equity shares @ 1( of %s9 1 eachA8 2 &i$$ .e .orro&ed from the .an" at the interest rate of 1 F p9a9 and further &i$$ .e .orro&ed from the out side at the interest rate of 1 F p9a9 the at the interest company &i$$ .e usin# .an"=s cash credit &orth rupees 3( rate of 4F p9a9 for the &or"in# capita$9

26

Application of fun

NO.
1 2 3 4 5 6

PARTICULAR
)and 5ui$din# Machineries furniture ? fi7tures /ehic$es &or"in# capita$

AMOUNT
* *33 2237 4 7 3(

TOTAL

43500000

Cere is the app$ication of fund is sho&n9 0rom the 43( rupees 4 further 3( &i$$ .e in;ested in the fi7ed assets inc$udin# $and8 rupees !i$$ .e used as a &or"in# capita$9 construction of .ui$din#8 machineries8 furniture ? fi7tures and ;ehic$es and

27

COST OF CAPITAL
The company &i$$ .e issuin# rupees 1( .y shares from the share ho$ders and has estimated to dec$are di;idend of rupees 11-1-( to the shareho$ders for the first year on the .asis of that the cost of equity capita$ is ca$cu$ated .e$o&9

Cost of e*uity
C&-' &? 2@7.'1 GDi;idend<share price
G11-1-( <1( G 9 * G8A The company &i$$ further ta"e the .orro&in#s of rupees 2 from the .an" and ( from the outsiders at the interest rate of 1 F p9a9 of .an"=s cash credit for the and the company &i$$ .e usin# rupees 3(

&or"in# capita$ so the cost of de.t is ca$cu$ated .e$o&9

Cost of ebt
C&-' &? 02>' GInterest @1>ta7A<tota$ de.t
G271 G 9 4 G6A @1> 93(A<2*(

28

COST VOLUME PROFIT ANALYSIS

6(9(6.'1 7'.).B('.&/ A&? 6(9(6.'1 C95&076'.&/ ./ )(6 42'25-D

P(5'.67)(5 co$or chemica$s po&er ? fue$ Coa$ sa$ary ? &a#es administrati; e e7p9 other e7p9 6&-' 4.'25 97( 93 92( 94 92 91 25A C75 D (42( 22( 1*7( 3 1( 7( 50A C150 D 112( 4( 37( 4 3 1( 75A C225 D 14*7( 47( (42( 4( 22( 90A C270D 2 2( *1 47( 1 * (4 27 100A C300D 22( 7( 12 4 3

'&'() 6&-' P5&?.' E&> 6:(532

2 0.5 2.5

1500000 0 3750000 1875000 0

3000000 0 7500000 3750000 0

4500000 0 1125000 0 5625000 0

5400000 0 1350000 0 6750000 0

60000000 15000000 75000000

Cere in a.o;e ta.$e the ana$ysis of cost8 ;o$ume and profit is #i;en at the different uti$i+ation of capacity such as 2(F8 ( F8 7(F8 - F and 1 .y uti$i+ation of &hich the company can earn the respecti;e amount of profit9 F

29

FIRST YEAR ESTIMATE & FUTURE PROJECTIONS

#IRST YEAR ESTIMATE AND #UTURE PRO*ECTIONS 2-'.4('20 95&E26'.&/PARTICULAR sa$es<3o. char#es other income Tota$ income tota$ cost 35&-- 95&?.' CE"ITD interest ? other char#es depreciation /2' 95&?.' >2?&52 '(< pro;ision for ta7ation 95&?.' (?'25 '(< /2' F&5': retention '&'() 0.;.02/0 tota$ de.t d<e ratio 29P9,9 D.P.S. retention ratio return on equity capita$ 2008-09 37( ( 37(( 3 7550000 271 2237 2603000 -11 ( 1691950 16691950 ( 1191950 2*( 917 1913 0.79 2-9((F
1192*F

2009-10 (42( 7( (432( 4( 11325000 271 2237 6378000 22323 4145700 19645700 2 2145700 27 914 2974 1.43 4*924F
27944F

2010-11 47( 1 474 (4 13600000 271 2237 8653000 3 2*(( 5624450 22624450 3 2624450 2( 911 397( 1.75 (3934F
379( F

In the a.o;e ta.$e there are ;arious estimated fi#ures for the current year and pro3ected fi#ures for the ne7t t&o years are sho&n

30

%ome specifications
The sa$es are estimated on the .asis of ( F capacity uti$i+ation for the

first year and 7(F ? - F for the ne7t t&o years and future demand9 Interest is ca$cu$ated 1 F on the .an" $oan and unsecured $oan and 4F on the .an"=s cash credit9 Depreciation is char#ed 1 F on the machineries9

Pro;ision for ta7ation is made 3(F on the net profit9

31

CAPITAL BUGETING CALCULATION

PARTICULAR
re;enue cost E"IT depreciation 25T Ta7 EAT depreciation C#AT P/0 AT1 F 952-2/' ;()72

2008-09
37(( 3 7550000 2237 (313 1*(-(( 3453450 2237 5690450 9- 5172619

2009-10
(432( 4( 11325000 2237 - ** 31* * 5907200 2237 8144200 9*24 6727109

2010-11
474 (4 13600000 2237 11343 3-77 ( 7385950 2237 9622950 97(1 7226835

Cere are the estimated cash f$o&s after ta7 for the three years are sho&n &hich are discounted at 1 F

32

ESTIMATED BALANCESHEET FOR THE FIRST YEAR

LIA"ILITIES AMOUNT ASSETS AMOUNT

33 -&7562 &? ?7/0share capita$ 52-25;2 $ -759)7net profit 11-1-( retained earnin#s ( -267520 )&(/ .an" $oan 7/-267520 )&(/ $oan from outsiders cash credit 2 ( 3( 67552/' (--2'stoc" of co$our chemica$s 12( stoc" of coa$ * Cash 1( .an" .a$ance 237*-( De.tors 1( 742*-( 1( ?.<20 (--2')and * 5ui$din# *33 Machineries 2237 )ess dep9 2237 2 133 0urniture 4 /ehic$es 7

14-1-(

37743

TOTAL LIA"ILITIES

45191950 TOTAL ASSETS

45191950

MARKET POTENTIAL
In ,urat there is hu#e mar"et for te7ti$e industry9 There are 4 8 &ho$e se$$ers8 shops in ,urat &ho ma"e the dyein# mi$$ 3o. &or" on the c$oth9

34 They supp$y the c$oth a$$ o;er India as &e$$ as e7port in the forei#n countries9 There are more than 1 te7ti$e mar"ets and 4 8 &ho$e se$$ers &ho #i;es the 3o. &or" to the mi$$s8of a.out 1 meters in one month on an a;era#e9

6o& a day=s em.roidery &or" and other additiona$ &or"s $i"e sequence em.roidery8 mu$ti head em.roidery8 and sif$y machine9 on the c$oths are in #reat demand in the mar"et &hich requires on$y dyein# on the c$othe so it seems to ha;e a hu#e amount of &or" for the dyein# mi$$s in the near future There are a.out 4 em.roidery machines in the ,urat on$y 9

In synthetic fa.ric there are so many qua$ities $i"e %ussian si$"8 dani sifon8 premium sifon8 orient sifon8 $esser8 "imaya8 crap si$"8

NECESSARY LICENSES TO BE TAKEN FOR STARTING A DYEING MILL

35

NO.
1 2 3

LICENSE
,ma$$ sca$e industry po$$ution contro$ ,a$es ta7

TO "E ISSUED "Y

:u3arat #o;ernment :u3arat po$$ution contro$ .oard @:u3arat sa$es ta7 ? Centra$ sa$es ta7A

Permission from :9I9D9C9

:u3arat industria$ de;e$opment corporation

5 6

Po&er )a.our8 29,9I9 ? P9 09

:u3arat e$ectricity .oard )a.our commissioner