PROJECT PROFILE - CRICKET BATTING GLOVES

INTRODUCTION

         The Cricket Batting Gloves are used as safety guards by the players while playing the cricket to save hard from any injury being caused by the cricket ball and these gloves also absorbs the shock caused by hitting the ball, thus also help to keep the hand in comfortable condition during the play for longer period by absorbing the perspiration, etc. Initially, Batting Gloves were manufactured of leather but due to fast changing technology, the new synthetic material has been developed which is suitable, more durable and cheaper than the leather material. The process of manufacturing the Batting Gloves is the same as for other industrial gloves. The only difference is that for the safety of fingers, pads are used made out of woolen rug or foam attached on the upper side of the gloves.

MARKET POTENTIAL

         Due to the growing interest among younger generation and Government of India’s interest to develop Cricket, some Cricket Academies in some States have come up and many more may come up. In addition, there is great demand from overseas, market also. This industry can earn a lot of foreign exchange by way of exporting the cricket gloves. Due top frequent change in design, it is advised to manufacture quality synthetic gloves.

BASIS AND PRESUMPTIONS

         The production envisaged is based on the single shift basis of 8 hours a day and 25 working days a month.

- Five years period for achieving full capacity utilization.
- Labour on monthly salary basis.
- Rate of interest – 15%
- Margin Money – 25%
- Pay back period 8 to 10 years.
- Land and building rented @ Rs.10,000 p.m.
- Covered area – 2500 sq. ft.

IMPLEMENTATION SCHEDULE

         It is anticipated that all the formalities will be completed within 6 – 8 months of period before starting the commercial production.

TECHNICAL ASPECTS

         (i) Production Details & Process of Manufacture:

As per graded pattern, the components are clicked manually or by clicking process:

- Pre or post printing of monogram log, etc is carried out. This depends upon the price of the product agreed upon.

- Components are stitched together and padding is attached separately over the post bed-stitching machine.

- Fixing of buckle and button, etc.

- Finishing, i.e., excess thread/material or oily matter etc is removed.

- Inspection and signing of Tag with full description, etc.

- Packing as per buyer’s instruction.

         (ii) Quality Specification: IS 3800 Batting Gloves

         (iii) Production Capacity:

Cricket Batting Gloves: 60,000 pairs (per annum)

Value: Rs.1,02,00,000

         (iv) Motive Power: 3 HP (approx.)

         (v) Pollution Control:

         This industry does not create any pollution; therefore, State Pollution Control Board’s permission is not binding to start the industry.

         (vi) Energy Conservation:

         There is no scope of energy conservation in this unit.

FINANCIAL ASPECTS

1.Fixed Capital:

         2500 sq. ft. covered area rented @ Rs.10, 000 (per month): Rs.10,000

2.Machinery and Equipment:

Sl No.
 Description
Imp/Ind
Qty.
Rate (Rs.)
Value (Rs.)
1.
 Cylinder bed compound, Feed Machine (JUKI) No.MS-335
Imp.
2
70,000
1,40,000
2.
 Post bed Lock Stitching Machine (Juki No.MS-810)
,,
2
70,000
1,40,000
3.
 Electrification and installation charges @ 10%
 
 
 
28,000
4.
 Tools and equipment
 
 
 
20,000
5.
 Cost of furniture and fixture
 
 
 
40,000
 
 Total
 
 
 
3,38,000

3. Pre-operative Expenses -- Rs. 20,000

Total Fixed Capital (2 + 3) = Rs.3,88,000

WORKING CAPITAL (per month)

(i) Personnel/Technical (per month)

SI.No.
 Description
No.
Salary (Rs.)
Total (Rs.)
1.
 Manager
1
9,000
9,000
2.
 Supervisor
1
6,000
6,000
3.
 Skilled Worker
5
5,000
25,000
4.
 Accountant/Clerk
1
4,000
4,000
5.
 Peon/Chowkidar
1
2,000
2,000
6.
 Sweeper/Helper
1
2,000
2,000
 
 Total
 
 
38,000
 
 Add perquisites @ 20% on salary
 
 
9,500
 
 Total
 
 
57,500

(ii) Raw Materials (per pair)

SI.No.
 Description
Qty.
Rate
Amount (Rs.)
1.
 Single Thick Cloth
0.10 kg
140 per kg.
14.00
2.
 PVC (fingers)
0.12 meter
80 per meter
9.60
3.
 Sweat Band
0.50 meter
60 per meter
30.00
4.
 PVC for quirk
0.02 meter
90 per meter
180.00
5.
 Thread No.50
0.1 Reel
175 per pc.
17.50
6.
 Gusset-Nylon tape
0.050 kg.
400 per kg.
20.00
7.
 Velcro 2’ H/L
0.40 meter
30 per meter
12.00
8.
 Thimbla
 
Re.1
1
9.
 Logo/Monogram Printing
L.S.
 
12.00
10.
 Packing and forwarding
 
 
6.00
 
 Total
 
 
123.90
  Say    
124.00
  (Per Month 124 x 200 x 25)    
6,20,000.00

(iii) Utilities (per month)

SI.No.
Description
Amount (Rs.)
1.
Power
3,000
2.
Water
500
 
Total
3,500

(iv) Other Contingent Expenses (per month)

SI.No.
Description
Amount (Rs.)
1.
Rent
10,000
2.
Postage and Stationery
2,000
3.
Repair and Maintenance
2,000
4.
Transportation
6,000
5.
Advertisement and publicity
3,000
6.
Insurance
1,000
7.
Consumable Stores
2,000
8.
Other contingent expenses
4,000
 
Total
30,000

(v) Total Recurring Expenditure (per month)

SI.No.
Description
Amount (Rs.)
1.
Raw Materials
6,20,000
2.
Staff and Labour
57,500
3.
Utilities
3,500
4.
Other contingent expenses
30,000
 
Total
7,11,000

(vi) Working Capital for 3 months:

         7,11,000 x 3 = 21,33,000

(vii) Total Capital Investment

SI.No.
Description
Amount (Rs.)
1.
Fixed Capital
3,88,000
2.
Working Capital
21,33,000
 
Total
25,21,000

FINANCIAL ANALYSIS

(i) Cost of Production (per year)

SI.No.
Description
Amount (Rs.)
1.
Total recurring cost
35,32,000
2.
Depreciation on machinery @ 10%
28,000
3.
Depreciation on tools and equipment @ 25%
5,000
4.
Depreciation on furniture and fixtures @ 25%
10,000
5.
Interest on Total Capital Investment @ 16%
4,03,360
 
Total
89,78,360
 
Say
38,78,400

(ii) Turnover (per year)

SI.No.
Descriptiion
Qty.
Rate
Amount (Rs.)
1.
Cricket Btting Gloves
60,000 pairs
170 per pair
1,02,00,000
 
Total
 
 
1,02,00,000

(iii) Net Profit per annum

Turn Over
1,02,00,000
Cost of Production ( - )
89,78,400
Totsl
12,21,600

(iv) Net Profit Ratio:

         = Net Profit per year x 100 / Turnover per year

         = 12,21,600x 100 / 1,02,00,000

         = 11.9%

(v) Rate of Return on Total Investment

         = Net Profit per year x 100 / Total Investment

         = 12,21,600 x 100 / 25,21,000

         = 48%

BREAK EVEN ANALYSIS:

(i) Fixed Cost

SI.No.
Description
Amount (Rs.)
1.
Rent
1,20,000
2.
Total Depreciation
28,000
3.
40% of salary and wages
2,76,000
4.
40% of other contingent expenses
96,000
5.
Total Interest
4,03,360
 
Total
9,23,360

BREAK EVEN POINT

B.E.P. = Fixed cost x 100 / Fixed cost + Net Profit

            = 9,23,360 x 100 / 9,23,360 + 12,21,600

            = 43 %

Addresses of Machinery & Equipment Suppliers:

1.          M/s Jay Cee Enterprises Ltd, 6, South Model Gram,
             Dutta Building, Ludhiana.

2.          M/s J.C. enterprises, E-357, Greater Kailash – II, New Delhi

3.          M/s Singer Sewing Machine Co., Anna Salai,
            Chennai – 600 002.

4.          M/s Leather Packaging Machinery Corporation,
             1/23B, Asaf Ali Road, New Delhi 110002

5.          M/s Srinivasan, No.32, Bishop Garden, Chennai – 600 028

6.          M/s Apparel & Leather Technics Pvt Ltd,
             515, Avanashi Road, Tirpur – 641 602

Addresses of Raw Material Suppliers:

1.          M/s Global Enterprises, Kotwali Bazar,
             Jalandhar (Punjab).

2.          M/s Kerala Rubber House, Kotwali Bazar,
             Jalandhar (Punjab).

3.          M/s Rasulbhai Adamji and Co., 163, Near Basoo Street,
             Mumbay – 3

4.          M/s Bharani Agencies, 126, Thumbu Chetty Street,
             Chennai 600 001

5.          M/s Synthokem Industries,
             Hindi Prachar Sabha Street, Chennai 600 017