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PROJECT PROFILE : ETHINIC FOOTWEAR
INTRODUCTION
As per the traditional and modern demands
of the people, footwear’s are made in various designs.
The Ethnic Footwear’s are made according to the
requirements of the customers. This type of chappal, which
serves multi-purpose, is mainly used in villages, deriving
the name “Ethnic Footwear”.
This chappal is prepared with leather/velvet
upper. Embroidery work is done on the upper which is stitched
on to the leather sole. This chappal is made completely
as one piece. This is without lace so it is easy to wear
and remove. It is famous among the people of Rajasthan
and is known as “Jodhpuri chappals”. Since
Madhya Pradesh is bordering Rajasthan, about 90% of the
people of MP in villages also use these chappals. According
to the liking and demands of customers, various colours
and designs of these chappals are made. Wearing these
chappals has become fashion, including special occasions
like marriages and festivals.
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MARKET POTENTIAL
At present, there is heavy demand for
this item in the market. This item is far more convenient
also for agro-work. The villagers, therefore, like to
wear them. As it is also a fancy wear, embroidery work
is done to make it more attractive and embossing. There
is a lot of demand for this item in Haryana, Punjab, Uttar
Pradesh, Madhya Pradesh, etc other than its home-state
Rajasthan. In order to exploit the said market potential,
some units can also be started in States like Kerala.
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BASIS AND PRESUMPTION:
| 1. Efficiency and Working Hours |
Single Shift basis
consisting of 8 Hours per day, 25 working days in
a A month and 300 working days in a year |
| 2. The time period for achieving the
full-envisaged capacity utilization
|
1 to 1 1/2 years |
| 3. Labour wages |
Monthly basis |
| 4. Interest Rate for fixed working
capital |
18 % |
| 5. Margin Money |
25 % |
| 6. Operative Period of the Project |
2 to 10 years |
| 7. Land and Building |
Rented |
| 8. Pay back period of Loan |
10 Years |
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IMPLEMENTATION SCHEDULE
| 1. Registration and Other formalities
|
1 month |
| 2. Land acquisition and Quotation |
2 months |
| 3. Construction Work |
4 to 5 months |
| 4. Machinery Purchasing and its Installation |
2 to 3 months |
| 5. Trail Production |
1 month - (total 12 months) |
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TECHNICAL ASPECTS
(i) PRODUCTION DETAILS AND PROCESS OF MANUFACTURE
First the pattern is cut according to
the size for preparing Ethnic Footwear. According to the
Pattern foam, Velvet is cut and design is made on that
and Embroidery work is done. After Embroidery work Goat
Leather As there is stitched in lower side and is cut
according to the upper. After preparing upper sole is
cut according to the pattern.
After cutting the sole and upper is
placed inner portion of sole and hand stitch is made by
thread. At least one small piece of leather is stitched
on the back portion of the chapel stitching the upper
chappal is given correct shape by putting chappal last
and after finishing it is inspected and is packed.
(ii) Quality Specification:
At present no quality specifications for Ethnic Footwear
are available. But for export order, specifications are
provided by the buyers only. The raw materials for Ethnic
Footwear should have good quality of uppers and have soft
type sole should be uniform co lour.
Care should be taken to click the right
components from the right portion of the leather. Before
taking different components to the closing section, inspection
is to be done to ensure quality. Good quality thread is
to be used to ensure proper stitches between different
components.
(iii) Production Capacity (Per
Annum)
| i) Quantity - |
22,500 pairs |
| ii) Value - |
Rs. 32,17,500 |
(iv) MOTIVE POWER -
3 K.W.
(v) Pollution Control
Not Applicable
(vi) Energy Conservation:
Regular power supply is required to run the unit smoothly
as the sewing machines are motorized. |
FINANCIAL ASPECTS |
1.FIXED CAPITAL:
Land & Building
Covered Area 100 Sq. Met.
|
Rented
Rs.5, 000 per month |
2. Machinery & Equipments |
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| SL. No. |
Machinery & Equipments Description |
IMP. /IND |
QTY. |
RATE Rs. |
Value Rs. |
| 1 |
Flat Bed Sewing Machine with Motor, Stand &
Table Clutch Type |
Ind |
2Nos. |
10,000 |
20,000 |
| 2 |
Combined Finishing Machine |
Ind |
1 |
80,000, |
80,000 |
| 3 |
Stappling Machine |
Ind |
1 |
30,000 |
30,000 |
| 4 |
Plastic Last (Chappal) |
Ind |
100 pairs |
300 |
30,000 |
| 5 |
Tools, Equipments |
|
L.S. |
|
10,000 |
| 6 |
Electrification and Installation Charges @ 10% of
machine cost |
|
L.S. |
|
14,000 |
| 7 |
Office Equipment, Furniture etc. |
|
L.S. |
|
20,000 |
| |
Total |
|
|
|
2,04,000 |
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PRE OPERATIVE EXPENSES |
Rs. 20,000 |
| Total Fixed Capital (2+3) |
Rs 2,24,000 |
3. Working Capital (per month)
a) Personnel (Administrative and Supervisory)
per month
| S No. |
Description |
No |
Salary @ Rs. |
Total (Rs.) |
| 1 |
Footwear Technologist/Production Manager |
1 |
7000 |
7000 |
| 2 |
Designer |
1 |
6000 |
6000 |
| 3 |
Supervisor |
1 |
5000 |
5000 |
| 4 |
Accountant-cum-Cashier |
1 |
4000 |
4000 |
| 5 |
Clerk-cum-Typist |
1 |
3000 |
3000 |
| 6 |
Mechanic |
1 |
3500 |
3500 |
| 7 |
Machine Operator/Skilled Worker |
5 |
3500 |
17,500 |
| 8 |
Semi Skilled Worker |
4 |
2000 |
8000 |
| 9 |
Store Keeper |
1 |
2500 |
2500 |
| 10 |
Peon/Chowkidar |
1 |
2000 |
2000 |
| |
Total |
|
|
58,500 |
| |
Perquisites @ 20% |
|
|
11,700 |
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Total |
|
|
70,200 |
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b) Raw materials (PM)
| SL No |
Description |
Qty |
Rate |
Value (Rs) |
| 1 |
Velvet |
124 meter |
Rs 100/met. |
12,400 |
| 2 |
Goat leather |
9,300 dcm. |
Rs 4/dcm. |
37,200 |
| 3 |
V-T Sole |
450 kg |
Rs 125/kg |
56,250 |
| 4 |
Canvas/Foam |
90 meter |
Rs 60/met |
5,400 |
| 5 |
Embroidery |
1875 pairs |
Rs 5/pair |
9,375 |
| 6 |
Grindery item |
1875 pair |
Rs 5/pair |
9,375 |
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Total |
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|
1,30,000 |
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c) Utilites (PM)
| SL.NO |
Description |
Amount(Rs) |
| 1 |
Power |
4,500 |
| 2 |
Water |
500 |
| |
Total |
5,000 |
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d) Other Contingent Expenses (PM)
| SL No |
Description |
Value (Rs) |
| 1 |
Rent |
5,000 |
| 2 |
Postage & Stationery |
2,000 |
| 3 |
Transport Charges |
2,000 |
| 4 |
Telephone |
2,000 |
| 5 |
Repair & Maintenance |
2,000 |
| 6 |
Advertisement & Publicity |
4,000 |
| 7 |
Insurance |
1,000 |
| 8 |
Taxes |
1,000 |
| 9 |
Misc. Expenses |
1,000 |
| |
Total |
20,000 |
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| e) Total Recurring Expenditure
(PM)
| SL No |
Description |
Amount(Rs) |
| 1 |
Personnel |
70,200 |
| 2 |
Raw Materials |
1,30,000 |
| 3 |
Utilities |
5,000 |
| 4 |
Other Contingents Expenses |
20,000 |
| |
Working Capital Per Month |
2,25,200 |
|
| Total Working Capital for 3 months: |
Rs 6,75,600 |
5. TOTAL CAPITAL INVESTMENT
| Sl No |
Description |
Amount(Rs) |
| 1 |
Fixed Capital |
2,24,000 |
| 2 |
Working Capital for 3 months |
6,75,600 |
| |
Total |
8,99,600 |
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6. MACHINERY UTILISATION
As stitching process is a bottleneck in production, care
should be taken
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FINANCIAL ANALYSIS
1) COST OF PRODUCTION
| Sl.No |
Description |
Amount(Rs) |
| 1 |
Total Recurring Expenditure per year |
27,02,400 |
| 2 |
Depreciation of Machinery & Equipment @ 10%
|
14,000 |
| 3 |
Depreciation on PVC Last @ 20% |
6,000 |
| 4 |
Interest on total Investment @ 18% |
1,61,928 |
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Total |
28,84,328 |
2) TURN OVER (PER ANNUM)
| Sl No |
Description |
Qty Pcs |
Rate @ Rs |
Value (Rs) |
| 1 |
Chappals |
22,500 Pairs |
Rs 143/pair |
32,17,500 |
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3) NET PROFIT PER ANNUM
|
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Annual Turnover – Cost of Production :
|
Rs. 32,17,500- 28,84,328 |
| |
= Rs. 3,33,172 |
4) NET PROFIT RATIO |
|
Net Profit x 100/
Turnover per Annum
|
3,33,172x 100/ = 10.3 %
32,17,500 |
5) RATE OF RETURN |
|
Net Profit per year x 100/
Total Capital Investment
|
3,33,172x100/ =
37%
8,99,600 |
| Profit |
=Rs.1,51,258/- |
BREAK EVEN ANALYSIS
(i) Fixed Cost (Per Annum)
| Sl No |
Dscription |
Amount(Rs) |
| 1 |
Depreciation on machinery and equipment |
14,000 |
| 2 |
Rent for one year |
60,000 |
| 3 |
Depreciation on Office Equipment |
4,000 |
| 4 |
Depreciation on PVC Last |
6,000 |
| 5 |
Interest on Capital Investment |
1,61,928 |
| 6 |
40% Salary |
3,36,960 |
| 7 |
40% of other Contingent Expenses excluding Rent |
72,000 |
| |
Total |
6,54,888 |
BREAK EVEN POINT
B E P = FIXED COST X 100/
FIXED COST +PROFIT
= 6,54,888 x 100/
6,54,888+3,33,172
= 6,54,888 x 100/
9,88,060
= 66%
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| ADDRESSES OF MACHINERY
& EQUIPMENT SUPPLIERS |
1. M/s. Leather & PackingMachinery Corporation,
1/23B, Asaf Ali Road, New Delhi
110 02
2. M/s. Harman Sales Union,
24, Kala Bhavan, Mathew Road, Mumbai
400 004
3. M/s. Srinivasan,
No. 32, Bishop Garden, Chennai 600
028
4. M/s. NSIC Technical Services Centre,
Sector B.24, Guindy Indl. Estate,
Eakkatuthangal Post, Chennai 600 097
5. M/s. Solar,
Atur House, Worli Nagar, Mumbai 400
018
6. M/s. Raj Machine Home,
35/118-D, Lashkarpur, Near Kamla Nagar,
Agra 282 005
7. M/s Twin Star Engineering,
No.2, Thiruneer Malai Road, Pammal,
Chennai – 600075
9. Apparel & Leather Technics Pvt Ltd,
515, Avanashi Road, Tirpur –
641602
ADDRESSES OF RAW MATERIAL SUPPLIERS:
1. M/s. Valliappa Leather Corporation,
3/5&6, Narayana Chetty Street,
Periamet, Chennai 600 003
2. M/s. T. Abdul Wahid & Co., 26, Veppery High Road,
Chennai 600 003
3. M/s. Synthokem Industries,
5, Hindi Parachar Sabha Street,
Chennai 600 017 Adhesive
4. M/s. Bharani Agencies,
126, Thanmbuchetty Street, Chennai
600 001 Grinderies
5. M/s. Sanghvi Shoe Accessories Pvt. Ltd.,
3, Hari Kripa, 10th Road,Chembur,
Mumbai 400 071 Shoe Last
6. M/s. Toscana (Shoe lasts) Limited.
Flat No. 190,Block 48,LIC Colony,
Anna Nagar West Extn., Chennai-
600101 Shoe Last
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