Name of the firm

Comfort Jeans
Comfort Jeans, Sector 28, G- 1875 GIDC Gandhinagar (Gujarat)

 

Address of the company

Scale of the organization

Small scale industry

Nature of the product

Garments (Jeans)

 

Estimated cost of the project

60,41,500

Market Area
Limited to Gujarat

Raw Material:
The main raw materials required to produce the Jeans are Denim & cotton clothes, thread, button, rivet, zip, stickers.

Product & its use:

The popularity and the demand of Jeans are increasing day by day. Jeans have left behind the tailor made cloth. Consumer can wear Jeans casually with shirt or short shirts & T-shirts. Today, consumers wear Jeans even with blazers. Even in villages people have started wearing Jeans. Each & every class of people wears Jeans. So, we can say that it can be matched in any style and it can be change your style. Generally, the raw material of Jeans is available from outside Gujarat.

Material Sources 1 Denim Cloth Mumbai 2 Cotton Cloth Ahmedabad 3 Thread Sirmour 4 Button Delhi

INPUTS
Materials

Labour Capital Energy

OUTPUTS
Products Service Information 5 Rivet Delhi 6 Zip Delhi 7 Stickers Ahmedabad 8 Plastic Ahmedabad 9 Washing acid Ahmedabad
PRODUCTION FUNCTION

Cutting Process

Produces the Jeans in the following steps ocess

Over lock

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. Activity Completion Time 1 Preparation of Project :1 month 2 Selection of a site :2 months 3 Registration of SSI :1 month 4 Availability of finance :3 months 5 Construction of building :6 month 6 Arrangement of machines & equipments :1 month 7 Erection & commissioning including electrification :1 month 8 Recruitment of personnel & Labour :2 month

Details of Land & Building

No. Particulars 1 Land 2 Building Area Rate Total 1400 yards 321 4,50,000 2000 sq. ft. 350 7,00,000 11,50,000

Total

Details of Plant & Machinery

No. Particulars Qty. Amount (Rs) 1 Simple stitch machine 10 2,00,000 2 Chain stitch machine 6 4,80,000 3 Folding machine 1 1,50,000 4 Stain removing machine 1 70,000 5 Washing machine 2 3,00,000

6 Cutting machine 1 2,00,000 7 Fitting machine 1 1,00,000 8 Embroidery machine 2 1,00,000 9 Iron 1 25,000 10 Printing machine 1 75,000 11 Over lock machine 2 1,00,000 12 Logo-making machine 1 25,000 13 Handling equipment - 75,000 Total 19,00,000

Preliminary, Pre-operative & miscellaneous expenses Rs. 5, 00,000

Total Fixed Assets

No. Particulars 1 Land & Building Amount (Rs)
11,50,000

Other Fixed Assets

No. Particulars Qty. 1 Delivery Van 2 2 Furniture 3 Computer 2 Amount (Rs)
5,00,000 3,50,000 50000

Total

9,00,000

2 Plant & Machinery 19,00,000 3 Other Fixed Assets 9,00,000 4 Preliminary & miscellaneous Exps. 5,00,000 Total 44,50,000

Raw Material Requirements

No. Particulars
1 Denim cloth 2 Cotton cloth 3 Thread -

Qty. Rate Monthly Annually

3000m 80 1500m 60 2,40,000 28,80,000 1,20,000 14,40,000 15,000 1,80,000

4 Button 5 Zip 6 Stickers 7Pocketing Clothes 8 Plastic Box 9Washing Acid

6000 0.7 5000 4.8 7000 1.5 500 m 8 2700 25, 500lt 20

4,200 50,400 24,000 2,88,000 10,500 1,26,000 4,000 48,000 400 64,800 10,000 1,20,000

Total Utility
No. Particulars 1 Electricity 2 Water Total

4,33,100 51,97,200
Qty. Rate Monthly Annually 1000KWH 5 10,000 1,20,000 1,500 18,000 11,500 1,38,000

Man Power Requirements

TOP LEVEL
No. Particulars No. Of Employees Monthly Salary Yearly Salary 1 Manager 2 14,000 1,68,000 2 Accountant 1 5,000 60,000 3 Designers 1 5,000 60,000 Total 24,000 2,88,000

MIDDLE LEVEL
No. Particulars No. Of Emp. Monthly Salary Yearly Salary 1 Salesman 5 15,000 1,80,000 2 Clerk & computer operator 1 2,500 30,000 3 Store keeper 2 3,000 36,000 Total 20,500 2,46,000

Other Administrative Expenses

Lower Level
No. Particulars No. Of Emp. 1 Stain stitch machine Operator 6 2 Simple stitch machine Operator 10
Monthly Salary

Yearly Salary

15,000 20,000

1,80,000 2,40,000

3 Folding machine Operator 1 4 Washing machine Operator 1 5 Cutting & Fitting machine Operator 1 6 Embroidery machine Operator 2 7 Over Lock machine Operator 1 8 Printing machine Operator 1 9 Iron Machine Operator 1 10 Packing machine Operator 1 11 Watchman 2
Total

1,500 1,200 1,500 3,000 1,500 1,500 1,200 1,200 2,900 50,500 Annual Salary 2,88,000 2,46,000 6,06,000 11,40,000

2,40,000 18,000 14,400 36,000 18,000 18,000 14,400 14,400 34,800

606000

Level Of Management
Levels Of Management Top Level Middle Level Lower Level Total Monthly Salary 24,000 20,500 50,500 95,100

Total Working Capital

No.
1 2 3 4 5 Total

Particular
Raw Material Utility Wages & salary Administrative Exp. Other contingencies

Monthly
4,17,700 11,500 95,100 11,200 3,000 5,30,500

Annually
50,12,400 1,38,000 11,41,200 1,34,400 36,000 64,26,000

No.
1 2 3 4 5

Particular

Monthly

Annually
18,000 6,000 84,000 14,400 12,000

Telephone 1,500 Postage & stamp Duty 500 Advertising & Marketing 7,000 Consumer stores 1,200 Miscellaneous 1,000

Total

11,200

1,34,400

Total Cost of Project

No. 1 2 Particulars
Total Fixed Capital Total Working Capital

Amt. (Rs.)
44,00,000 17,28,000

Total

61,28,000

Sources of Fund
No. Particulars Percentage Amt. (Rs.) 1 Owned Capital 60 % 36,24,900 2 Borrowed Capital 40 % 24,51,200 Total 60,41,500

Interest
No. 1 2 Total Particulars Owned Borrowed Loan (SBS) Percentage 9.5 % 12.5 % Amt. (Rs.) 3,44,365 3,02,075 6,43,498

Depreciation Maintenance & Repair

No. 1 2 3 4 Total Particular Building Machinery Other Fixed Assets Computer Value 11,50,000 19,00,000 8,50,000 50,000 Rate 15% 20% 15% 20% Amt. 1,72,500 3,80,000 1,27,500 10,000 6,90,000

Cost of Production
No. Particular 1 Building 2 Machinery 3 Other Fixed Assets Total Value 11,50,000 19,00,000 9,00,000 Rate 5% 5% 5% Amt. 57,500 95,000 45,000 1,77,500

No. 1

Particulars Raw Material

Amt. (Rs.) 51,97,200

2 3 4 Total

Utilities 1,38,000 Manpower 11,40,000 Repairs & Maintenance 1,97,500 66,72,700

Cost Analysis
Variable Cost Raw Material Particulars Denim Cloth Cotton Cloth Thread Button Zip Stickers Pocketing Clothes Plastic box Washing Acid Other contingency Semi Variable Cost Utilities Administrative Exps. Man Power (Lower Level) Amt. (Rs.) 28,80,000 14,40,000 1,80,000 50,400 2,88,000 1,26,000 48,000 64,800 1,20,000 36,000 52,33,200 1,38,000 1,34,400 6,06,000 8,78,400 50,000 5,34,000 6,43,498 6,90,000 1,97,500 21,14,998 82,26,598

Fixed Cost Preliminary & Pre-operative expenses written off Man Power (Middle & Top level) Interest on capital Depreciation Repairs & Maintenance Total Cost

Profitability Analysis
Particulars Sales (Less) Variable Cost Amt. (Rs.) 88,15,000

Raw Material 51,97,200 Utilities 1,38,000 Manpower 6,06,000 Admin. Exp. 1,34,400 Other contingencies 36,00 0 61,11,6 00 Contribution 27,03,400 (Less) Fixed Cost Manpower 5,34,000 Depreciation 6,80,000 Maintenance & Repairs 1,97,500 Insurance 20,000 Int. on loan 6,43,498 20,74,998 Profit Before Tax (PBT) 6,28,402 (Less) 35% Tax 2,19,941 Profit After Tax (PAT) 4,08,461 Break-even analysis is a scientific analysis, which leads producers towards more systematic and scientific production planning or sales planning. It is because of break-even analysis that the firm can accordingly work out the required size of the plant. By break even analysis the smallscale entrepreneur can get proper guidelines about volume of sales to be achieved to avoid the danger of loss. Break-even analysis indicates a point where total revenues are equal total cost. It means a volume of sales where firm earns neither profit nor suffers loss in called Break-even point. No. Particulars Amt. (Rs.) 1 Sales 88,15,000 2 Variable cost 61,11,600 3 Fixed Cost 20,74,998

BEP = Fixed Cost Contribution = 20 , 7 4 , 998 x 60% = 46.05%. 27, 03,400 BEP (Rs.) = Fixed cost x sales Contribution = 2 0, 74,998 x 88, 15,000=67, 65,512Rs.

27, 03,400 Return on Investment ROI = EBIT x 100 Project Cost = 12, 71.900 x 100 60, 41, 500 = 21.05% EBIT = PBT + TOTAL INTEREST = 6, 28,402 + 6, 43,498 = 12, 71,900

Net Profit Ratio

NPR = PAT x 100 Sales = 4, 08,461 x 100 88, 15,000 = 4.63%

Fixed Assets Turnover Ratio

F.A.T.R. = Sales Fixed Assets = 88, 15,000 = 2.23% 39, 50,000
Todays generation is very much conscious about the garments. The consumption of new fashionable garments increases 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 will increase in India as well as foreign culture the company has wide spread market. It indicates future expansion and development of the project according to proposed project is considered to have better prospects.