set-up plant for jeans final project
TRANSCRIPT
SURYA JEANS MANUFACTURING UNIT
PRESENTED BYSURYABHAN CHAUDHARY
COMPANY INFORMATION
COMPANY MANUFACTURING UNIT ADDRESS:- Plot No. 4304-5, GIDC Garments Zone Sarigam, dist. Valsad, Gujarat 396115.CONT. NO:- 0260-2780393, FAX:- 2410673EMAIL ID:- [email protected]:- www.suryajeans.com• Type of unit: Garments (Jeans)• Requirement of Land and Building (Sq. yards/ sq. meters.): Land: 1400 yards Building: 2000 Sq. ft
• Scale of the organization: medium scale industry• Estimated cost of project: 60,41,500
This manufacturing unit comes under EOU area.
INTRODUCTION
Surya jeans Co. is a team of young & dynamic professional designers in the trade of Denim jeans & Levi's clothing, we are manufacturers producing high quality custom made men's & women's and kid’s Denim and Levi's clothing such as Jeans in a very lowest price.
Vision
We are ethically run business to provide energy to compete the fashion in today’s era.
Mission
Our mission to provide DENIM & LEVI’S jeans for the next generation family from every walk and stage in life, for every occasion, with a wide range of excellent quality that makes them look and feel good.
Cost of project
The sum total of all funds required to complete a business purchase transaction.What it MeansTypical project costs include:Business purchase price.Working capital.Closing costs.Professional fees such as those charged by the CPA and attorney.Lender fees.Business appraisal fees.Business license fees.We need to set a budget for the business purchase which includes all expenses. In asset business purchases, the seller typically retains cash and short-term investment assets. The buyer then will need to inject additional funds into the business to ensure that it has sufficient working capital.
Particulars Amount
Building 11,50,000
Land development expenses 1,50,000
Plant & Machinery 19,00,000
Other Fixed Assets 8,50,000
Computer 50,000
Working capital margin 19,41,500
Total 60,41,500
Cost of project
Source 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
Preliminary & Pre-Operative ExpensesPreliminary & pre-operative Expenses is 50,000
Interest rate 14% per annual .
Customers
1- LEVI’S jeans USA and JAPAN - A outsourcing contract between Levi’s jeans and Surya jeans manufacturer
company. 24k pieces/ Annual price US$ 9/ Jeans Exchange rate US$1 = 60 INR
2- DENIM jeans USA and JAPAN - A outsourcing contract between DENIM jeans and Surya jeans manufacturer
company. 21k pieces/Annual price US$ 9/ Jeans Exchange rate US$1 = 60 INR
Operation plan
• No. of working days per annum : 260 days• No. of working shifts 8 hr per day : 1• Installed capacity : 50000 jeans/ Annual
Production Programme
Raw Material:The main raw materials required to produce the Jeans are Denim & cotton clothes, thread, button, rivet, zip, stickers.Raw Material supplier:1- Arvind Clothe mills pvt ltd
2- Mufatlal clothe mills pvt ltd
Sources of Raw Material
Generally, the raw material of Jeans is available from outside Gujarat.
Sr. no. Material Sources
1 Raw materials Cloth Mumbai
2 Cotton Cloth Ahmadabad
3 Thread Sirmour
4 Button Delhi
5 Rivet Delhi
6 Zip Delhi
7 Stickers Ahmedabad
8 Plastic Ahmedabad
9 Washing acid Ahmadabad
No. Particulars Qty. Rate Monthly Annually
1 Denim cloth 6000m 40 2,40,000 28,80,000
2 Cotton cloth 3000 m 40 1,20,000 14,40,000
3 Thread - 15,000 1,80,000
4 Button 6000 0.7 4,200 50,400
5 Zip 5000 4.8 24,000 2,88,000
6 Stickers 7000 1.5 10,500 1,26,000
7Pocketing
Clothes500 m 8 4,000 48,000
8 Plastic Box 2700 2 5,400 64,800
9 Washing Acid 500 lt 20 10,000 1,20,000
Total 4,33,100 51,97,200
Raw materials cost
Production Process
OUTPUTS ProductsServiceInformation
INPUTSMaterialsLabourCapitalEnergy
PRODUCTION FUNCTION
Storing
Packing
Folding
Ironing Washing
Fitting
Stitching Process
Embroidery Work
Over lock
STEPS OF PRODUCE THE JEANS
Manufacturering unit Manufacturering Process
Warehouse
Export to US & JAPAN
Particular Monthly Expenses Annually Expenses
Transport and Logistics 25,000 3,00000
Total 25,000 3,00000
Transport and Logistics Expenses
Manpower Requirements
TOP LEVEL
No. Particulars No. of Employees
MonthlySalary
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.
MonthlySalary
Yearly Salary
1 Salesman 3 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
Lower Level
No. Particulars No. of Emp. MonthlySalary
Yearly Salary
1 Stain stitch machine Operator 6 15,000 1,80,000
2 Simple stitch machine Operator 10 20,000 2,40,000
3 Folding machine Operator 1 1,500 18,000
4 Washing machine Operator 1 1,200 14,400
5 Cutting & Fitting machine Operator 1 1,500 18,000
6 Embroidery machine Operator 2 3,000 36,000
7 Over Lock machine Operator 1 1,500 18,000
8 Printing machine Operator 1 1,500 18,000
9 Iron Machine Operator 1 1,200 14,400
10 Packing machine Operator 1 1,200 14,400
11 Watchman 2 2,900 34,800
Total 50,500 606000
Level Of Management
Levels Of Management Monthly Salary Annual Salary
Top Level 24,000 2,88,000
Middle Level 20,500 2,46,000
Lower Level 50,500 6,06,000
Utilities & Overhead CostsUtility
No. Particulars Qty. Rate Monthly Annually
1 Electricity 1000KWH 5 10,000 1,20,000
2 Water - - 1,500 18,000
Total 11,500 1,38,000
No. Particular Value Rate Amt.
1
Building
11,50,000 5% 57,500
2
Machinery
19,00,000 5% 95,000
3
Other Fixed Assets
9,00,000 5% 45,000
Total 1,77,500
Maintenance & repair
Administrative Expenses
No. Particular Monthly Annually
1Telephone
1,500 18,000
2Postage & stamp Duty
500 6,000
3Advertising & Marketing
7,000 84,000
4Consumer stores
1,200 14,400
5Miscellaneous
1,000 12,000
Total 11,200 1,34,400
No.Particular Value Rate Amt.
1 Building 11,50,000 15% 1,72,500
2 Machinery 19,00,000 20% 3,80,000
3 Other Fixed Assets 8,50,000 15% 1,27,500
4 Computer 50,000 20% 10,000
Total 6,90,000
Depreciation Calculation
Particulars Amt. (Rs.) Amt. (Rs.)
Sales 2,43,00000
(Less) Variable Cost
Raw Material 51,97,200
Utilities 1,38,000
Manpower ( Lower ) 6,06,000
Admin. Exp.
Transport & Logistics
1,34,400
3,00000
Other contingencies 36,000 64,11,200
Contribution 1,78,88,800
(Less) Fixed Cost
Manpower ( top & Middle ) 5,34,000
Depreciation 6,90,000
Maintenance & Repairs
Pre- operative Expenses
1,77,500
5,0000
Insurance 20,000
Int. on loan 3,83,168 18,14,668
Profit Before Tax (PBT) 1,60,74,132
(Less) 2% Tax ( Service tax on foreign exchange conversion ) 3,21,482
Profit After Tax (PAT) 1,57,52,650
Profitability Analysis
Net Profit Ratio
NPR = PAT x 100 Sales
NPR = 1,57,52,650*100/2,43,00000 = 64.82 %
Future Strategy
1- Market Expansion.2-Tie-up other jeans Company. - like. Lee, Wrangler and others.3-Open own outlet.4-Product line Extension.5-Brand strategy for own business.6-Move to domestic sales.7-Launch E-Retailer websites.8-Tie-up with India Defence for Uniform supplier ( Khaki )
