Académique Documents
Professionnel Documents
Culture Documents
Sr.
Particulars
No.
1. Introduction to SSI
2. Introduction to the product
3. Products look - At a Glance
4. Justification of Location
5. Management setup
6. Partners background
7. Product Details
8. Sources of raw material
9. Market potential
10.Competitors & competitive
strategy
11.Production process
12.Implementation schedule
13.Basic & Presumptions
14.Sales Details
15.Details of Land & Building
16.Details of Plant & Machinery
17.Other fixed assets
18.Total Fixed assets
19.Raw material requirements
Page
No.
7
8
9
11
14
15
18
19
20
23
24
29
30
31
32
32
33
33
34
20.Utilities
21.Man power requirement
22.Other administrative Exps.
23.Total working capital
24.Total cost of project
25.Sources of fund
26.Interest
27.Depreciation
28.Maintenance & Repairs
29.Cost of Production
30.Profitability Analysis
31.BEP Analysis
32.Ratio Analysis
33.Cost Analysis
34.Risk Factors
35.Future Plans
36.Conclusion
37.Name & Address of machinery
suppliers
38.Name & address of Raw material
suppliers
34
35
37
38
38
39
39
40
40
41
42
43
44
46
48
49
50
51
53
Introduction to
SSI
Cottage
&
small
scale
industry
have
scale
industry
in
India
roughly
growth
of
small
scale
industry
i.e.
technical,
financial
and
other
relevant
Introduction to
the product
Today Jeans are become popular product
in the casual garment. The demand for Jeans is
increasing day by day with the increase in
growth
the
demand
for
Jeans
is
very
multinational
popular
companies
due
in
to
entry
India
and
of
the
huge
Project At a
Glance
Name of the company
JRV Jeans MILLS
Address of the company
JRV Jeans MILLS,
G- 1875 Lodhika GIDC
Metoda
Rajkot (Gujarat)
Scale of the organization
Small scale industry
Type of firm
Partnership Firm
Nature of the product
Garments (Jeans)
Justification of
Location
Location of any industry plays a dominant
role in the success or failure of the company. It has
been rightly said that the mistake of selecting the
wrong site cannot be corrected without heavy
losses. Selecting a proper site for establishing SSI
thus increase, as finance is a major constraint for
a SSI unit.
The
proposed
location
for
the
10
the
availability
of
labour
is
convenient
&
economic.
3. Transportation
Transport facilities are mainly required for
distribution of finished products to the retailers
and
wholesalers.
The
transportation
cost
is
11
addition
to
above
mentioned
12
Management Setup
The three partners are entitled to take the
post of directors. All the two partners i.e. Mr.Tej
Patel, & Miss. Juhi Patel are the working parteners.
Miss.
Juhi
Patel
will
look
after
the
13
Partners
Background
Partner - 1
Full Name
Age
Address
Academic
Qualification
Juhi Patel
21
MBA (Marketing)
Role in Unit :
He is a fresher with leadership
quality who
will look after
marketing & trade setting
Experience
14
30%
Partner=2
Full Name
Age
Address
Academic
Qualification
Role in Unit :
Finance &
Tej patel
24
:
He
B. Com, C.A.
will
look
after Accounting,
Personnel
Experience
:
2 years of experience
managing accounting
financing department at Park Avenue,
Rajkot
in
&
15
Financial
Contribution
40%
Rameshbhai patel
Partner - 3
Full Name
Age
Address
38
Academic
Qualification
:
fashion designing
Role in Unit :
designing
MBA
advance
diploma
in
16
Experience
:
12
designing garments at
Mills ltd.
Financial
Contribution
years
experience
in
Arvind
30%
Product Detail
Raw Material :
The
main
raw
materials
required
to
17
Sources of Raw
Material
Generally, the raw material of Jeans is
available from outside Gujarat.
18
Denim Cloth
Mumbai
Cotton Cloth
Ahmedabad
Thread
Sirmour
Button
Delhi
Rivet
Delhi
Zip
Delhi
Stickers
Ahmedabad
Market Potential
19
Quality
Our
maximum
emphasis
is
given
on
because
we
know
that
mere
20
21
Price
The prices of our products are affordable
to middleclass people who are our target market.
Our firm understands Value for money very
well and so High sales at low margins is our
motto.
Distribution channel
For
distribution
our
products
to
our
involving
only
one
intermediary
i.e.
22
Manufacturer
Customers
Money flow
Retailers
Product Flow
Advertising
Advertising is an important element of
marketing mix, particularly of promotion mix.
Advertising is a tool for communication. In other
words we can say that is an art to create demand
for product by making people aware and pursuing
them to purchase the product.
As our firm is still in the infancy stage and
the market is limited, it is not possible to bear the
heavy expenditure on advertising. The product is
advertised on a small scale through big wall
23
Competition &
Competitive
Strategy
Jeans are high fashioned products which
are
continuously
affected
by
the
change
in
competition
in
our
field
we
have
to
24
Production Process
25
the
product
with
the
use
of
man,
INPUTS
Materials
Labour
Capital
Energy
Information
RESOUCRCES
OUTPUTS
PRODUCTION
FUNCTION
Products
Service
Information
Products or
Services
26
27
Storing
FOLLOWING
ARE
THE
STEPS
OF
THE
28
stitch
machines
and
10
simple
stitch
29
30
7. Ironing
After washing all the Jeans ironed through
big electric iron it is ready for the fold.
8. Folding
All the Jeans goes into the folding machine
and the machine operator fold it according to the
Jeans fold style and it goes for packaging.
9. Packaging & Storing
After folding the Jeans are packed into the
poly bags and paper boxes then store into the
finished goods storage.
From
the
above
way
the
production
31
Implementation
Schedule
I take maximum one and half year to
implement this type of project the time required
for completing each activity of the project till
commercial production is as follows:
No
.
1
2
3
4
5
6
Activity
Preparation of Project
Selection of a site
Comple
tion
Time
1 month
2
Registration of SSI
Availability of finance
months
1 month
3
Construction of building
Arrangement of machines
months
7 month
& 1 month
32
equipments
Erection
&
including electrification
Recruitment of personnel
commissioning 1 month
& 2 month
Labour
Basic &
Presumptions
1) The proposed production of 30,000 per annum
of Jeans in the 1 shift basic 9 hours in more than
300 working days in a year
Shift
Working hours
Single Shift
:
P.M.
Break 1:00 P.M. to 2:00
P.M.
33
Sales Details
34
Sales
Quota
7000
8000
10000
5000
30000
Price
Total
200
275
325
390
14,00,000
22,00,000
32,50,000
19,50,000
88,00,000
35
Financial
Details
Details of Land & Building
No.
1
2
Particulars
Land
Building
Area
2000 yards
2000 sq. ft.
Rate
225
350
Total
Total
4,50,000
7,00,000
11,50,000
Particulars
Simple stitch machine
Chain stitch machine
Folding machine
Stain removing machine
Washing machine
Cutting machine
Fitting machine
Embroidery machine
Iron
Printing machine
Over lock machine
Logo-making machine
Handling equipment
Total
Qty.
10
6
1
1
2
1
1
2
1
1
2
1
-
Amount (Rs)
2,00,000
4,80,000
1,50,000
70,000
3,00,000
2,00,000
1,00,000
1,00,000
25,000
75,000
1,00,000
25,000
75,000
19,00,000
36
Particulars
Delivery Van
Furniture
Total
Qty.
2
-
Amount (Rs)
5,00,000
3,50,000
19,00,000
Particulars
Land & Building
Plant & Machinery
Other Fixed Assets
Preliminary & Pre-operative Exps.
Total
Amount (Rs)
11,50,000
19,00,000
8,50,000
5,00,000
44,00,000
Raw Material
Requirements
37
No.
Particulars
Qty.
Rate
Monthly
Annually
Monthly
1
2
3
4
5
6
7
Denim cloth
Cotton cloth
Thread
Button
Zip
Stickers
Pocketing
4000 m
2000 m
35000
5000
35000
500 m
60
60
0.7
4.8
1.5
8
2,40,000
1,20,000
15,000
24,500
24,000
52,500
4,000
7,20,000
3,60,000
45,000
73,500
72,000
1,57,500
12,000
28,80,000
14,40,000
1,80,000
2,94,000
2,88,000
6,30,000
48,000
4,80,000
14,40,000
57,60,000
Clothes
Total
Utilities
No.
Particulars
Qty.
Rate
Monthly
Annually
Monthly
1
2
Electricity
Water
1000 KWH
Total
10
-
10,000
1,000
11,000
30,000
3,000
33,000
1,20,000
12,000
1,32,000
38
Man Power
Requirements
Top Level
No.
Particulars
No. of
Monthly
Yearly
Employees
Salary
Monthly
Salary
Salary
1
2
3
Manager
Accountant
Designers
2
1
1
Total
10,000
5,000
5,000
20,000
30,000
15,000
15,000
60,000
1,20,000
60,000
60,000
2,40,000
Middle Level
No.
Particulars
No. of
Monthly
Yearly
Employees
Salary
Monthly
Salary
Salary
1
2
3
Salesman
Clerk Typist
Store keeper
Total
5
1
2
10,000
1,500
2,500
14,000
30,000
4,500
7,500
42,000
1,20,000
18,000
30,000
1,68,000
39
Middle Level
No.
Particulars
No. of
Monthly
Yearly
Emp.
Salary
Monthly
Salary
Salary
40
Other
Administrative
Expenses
41
No.
1
2
Particular
Telephone
Postage & stamp
Monthly
1,500
500
3 Monthly
4,500
1,500
Annually
18,000
6,000
Duty
Advertising &
4,500
13,500
54,000
4
5
Marketing
Consumer stores
Miscellaneous
1,200
300
3,600
900
14,400
3,600
8,000
24,000
96,000
Total
Total Working
Capital
42
No.
1
2
3
4
5
Particular
Raw Material
Utility
Wages & salary
Administrative Exp.
Other contingencies
Total
Monthly
4,80,00
11,000
74,000
8,000
3,000
5,76,000
3 Monthly
14,40,000
33,000
2,22,000
24,000
9,000
17,28,000
Annually
57,60,000
1,32,000
8,88,000
96,000
36,000
69,12,000
Total Cost of
Project
No
Particulars
.
1 Total Fixed Capital
2 Total Working Capital
Total
Amt. (Rs.)
44,00,0000
17,28,000
61,28,000
43
Sources of Fund
No.
Particular
Value
1 NoBuilding
11,50,000
Particulars
2 . Machinery
19,00,000
3
Other Fixed Assets
8,50,000
1 Owned Capital
Total
Miss.Juhi Patel (30%)
Mr. Tej Patel(40%)
2
Rate
15%
Percentag
25%
e
12%
Amt.
1,72,500
Amt.
(Rs.)
4,75,000
1,02,000
7,49,500
60 %
36,76,800
40 %
24,51,200
61,28,000
Interest
No
Particulars
.
1 Owned
2 Borrowed Loan (SBS)
Total
Percentag
e
9.5 %
12.5 %
Amt. (Rs.)
3,49,296
3,06,400
6,55,696
Depreciation
44
No.
1
2
3
Particular
Value
Building
11,50,000
Machinery
19,00,000
Other Fixed Assets
8,50,000
Total
Rate
5%
5%
5%
Amt.
57,500
95,000
25,000
1,77,500
Maintenance &
Repair
45
Cost of Production
No
.
1
2
3
4
Particulars
Raw Material
Utilities
Manpower
Repairs & Maintenance
Total
Amt. (Rs.)
57,60,000
1,32,000
8,88,000
1,77,500
69,57,500
46
Profitability
Particulars
Sales
(Less) Variable Cost
Raw Material
Utilities
Manpower
Admin. Exp.
Other contingencies
Contribution
(Less) Fixed Cost
Utilities
Manpower
Depreciation
Maintenance & Repairs
Insurance
Int. on loan
Profit Before Tax (PBT)
(Less) 35% Tax
Profit After Tax (PAT)
Amt. (Rs.)
Amt. (Rs.)
88,00,000
57,60,000
84,000
4,44,000
96,000
36,000
64,20,000
23,80,000
48,000
4,44,000
7,49,500
1,77,500
20,000
6,55,696
20,94,696
2,85,304
99,856
1,85,448
Analysis
BEP Analysis
No.
1
2
3
Particulars
Sales
Variable cost
Fixed Cost
Amt. (Rs.)
88,00,000
64,20,000
20,94,696
47
PVR
=
=
Contribution x 100
Sales
23,80,000 x 100
88,00,000
27.05%
Fixed Cost
PVR
20,94,696
77,43,793
27.05%
BEP (in %) =
52.81%
Ratio Analysis
Return on Investment
ROI
EBIT
100
48
Project Cost
=
EBIT
9,53,000 x 100
61,28,000
15.55%
PBT
2,85,304+6,55,696
9,41,000
+ TOTAL INTEREST
= PAT
Sales
x 100
1,85,448
x 100
88,00,000
2.11%
=
=
18,42,500 x 100
49
88,00,000
=20.94
=
Sales
Fixed Assets
=
=
88,00,000
39,00,000
2.26%
Cost Analysis
50
Particulars
Variable Cost
Raw Material
Amt. (Rs.)
Denim Cloth
28,80,000
Cotton Cloth
14,40,000
Thread
1,80,000
Button
2,94,000
Zip
2,88,000
Stickers
Pocketing Clothes
6,30,000
48,000
Other contingency
36,000
Amt. (Rs.)
57,96,000
1,32,000
96,000
4,80,000
7,08,000
Fixed Cost
Preliminary & Pre-operative expenses
50,000
written off
Man Power (Middle & Top level)
4,08,000
Interest on capital
6,55,696
Depreciation
Repairs & Maintenance
7,49,500
1,77,500
Total Cost
20,40,696
85,44,696
51
52
Risk Factors
1. Competition
There is always risk of competition from
existing and potential units will be there. But to
avoid this risk, cost reduction through minimum
utilization of resources, use of good quality of raw
materials, operating efficiency etc. will be helpful.
2. Adaptability to changes
Constant changes take place in the design
and
pattern
of
Jeans.
Moreover
changes
in
53
Future Plan
Future plan is advance thinking of the
future activity. Every company has ambition to
achieve bright future. So, they are starting at
present to achieve the future target. Future plan is
a presentation of future activity and position.
54
Conclusion
Todays generation is very much conscious
about the garments. The consumption of new
fashionable
garments
increase
day
by
day
especially Jeans.
A Jeans became popular garment in all
over the world. So, the demand increases day by
day and the fashion trend changes every day in
jeans. At present take an example of world leading
Jeans producing company Wrangles, Lee, GAP,
Flying machine etc. have launched the range Jeans
trend. So, the Jeans is a forever product in the
garments. It indicate that the demand of the Jeans
55
indicate
future
expansion
and
56
50%
of
the
machineries
are
57
58
3.
59
60
New Delhi
61