vaghela mils mba porject report prince dudhatra
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Product Project ReportOn
JEANSVAGHELA MILLS
Prepared ByVaghela Amit H.
Class
T.Y.B.B.A.
Roll No.
Seat No
CollegeGrace College of Commerce
Rajkot
Academic Year2006-07
Submitted ToSaurashtra University
Guided By
Ms. Bhavna Vyas
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DECLARATIONDECLARATION
I, the undersigned Amit H.Vaghela student of T.Y.B.B.A. here by
declare that the project work presented in this
report is my own work and has been carried
out under the supervision of Ms. Bhavna
Vyas of Shree H.N. Shukla Collage, Rajkot.
This work has not been previously
submitted to any other university for any
examination.
Date : Student
signature
Place : RAJKOT Amit H.
VaghelaT.Y.B.B.A.
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PREFACEPREFACE
Small is beautiful, so also, small scale
industry. It is significant segment of the Indian
economy & the objectives underlying its
development are increase in the supply of
manufactured goods, the promotion of capital
formation, the development of indigenous
entrepreneurial talents and skills and the
creation of employment opportunities.
Students with initiative, creativity and
Indian orientation have wonderful opportunities
of becoming successful entrepreneurs of small
scale business unit which have attained a lot of
protection and encouragement from govt.
The subject Entrepreneurship &
Management of small scale business
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adds further to the vocational guidance
through the course of Bachelor of Business
Administration (B.B.A.).
ACKNOWLEDGEMENTACKNOWLEDGEMENT
I feel great pleasure to present this
report of Readymade clothes. I would like to
heartily thanks to all the persons who havehelped me in this report and give me adequate
guidance and information for preparing this
report.
I am thankful to Ms. Bhavna Vyas
who isguide of our subject.
Date : Student
signature
Place : RAJKOT Amit H.
Vaghela
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T.Y.B.B.A.
INDEXINDEX
Sr.No.
Particulars PageNo.
1. INTRODUCTION TO SSI 72. PROJECT AT GLANCE 83. PARTNERS BACKGROUND 104. JUSTIFICATION OF LOCATION 135. PRODUCT DETAILS 14
6. RAW MATERIAL AND ITS SOURCES 167. DETAILS OF SUPPLIERS 178. PRODUCTION PROCESS 189. STAFF AND LABOUR 2310.
ADMINISTRATIVE WORK 26
11.
FINANCIAL DETAILS 27
12.
BEP ANALYSIS 28
13.
FIXED ASSETSAND WORKING CAPITAL 29
14.
COST OF PRODUCTION & SALESDETAILS
31
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15.
PROFITABILITY ANALYSIS & RATIOANALYSIS
33
16.
MARKET POTENTIAL 35
17.
COMPETITORS & COMPETITIVESTRATEGY
36
18.
RISK FACTORS 37
19.
FUTURE PLANS 38
20
.
CONCLUSION 39
INTRODUCTIONINTRODUCTION
Cottage & small scale industry have
flourished in India since the early times. Even
today they are a principal source of income &
employment and their product find ready
market in the country as well as abroad.
Small scale industry in India roughly
provides employment to about 4.4 million
people and constitutes a large position of the
countrys exports. The govt. of India is well
aware of the importance of small scale industry
in our economy and growth of small scale
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industry i.e. establishment of various SSIs. All
India Boards that give technical, financial and
other relevant guidance to small scaleindustries, other benefits & concessions.
Our objective is to produce ready madeOur objective is to produce ready made
JEANSJEANS
PROJECT AT A GLANCEPROJECT AT A GLANCE
Name of the company
EVEREST MILLS
Address of the company
EVEREST MILLS,G- 180 Lodhika GIDC
MetodaRajkot (Gujarat)
Scale of the organization
Small scale industry
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Type of firm
Partnership Firm
Nature of the product
JEANS
Proposed name of the Brand
Ambar
Partners names
Amit Vaghela
Mitesh Vaghela
Sanjay Asaraniya
Estimated cost of the project61, 28,000
Market Area
Limited to Gujarat & Maharashtra
SSI Registration No.
Has been applied for
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PARTNERSPARTNERS
BACKGROUNDBACKGROUND
Partner - 1
Full Name : Amit Hemantbhai Vaghela
Age : 21
Address : SHIV KRUPABhakti Nagar -1GandhigramMo. 98981 73384
Academic
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Role in Unit : He will look afterAccounting, Finance &Personnel
Experience : 2 years of experience inmanaging accounting &financing department at ParkAvenue, Rajkot
FinancialContribution : 40%
Partner - 3
Full Name : Mitesh Hemantbhai
Vaghela
Age : 28
Address : Matru KrupaVrundavan SocietyUni. RoadRajkot 360001
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Ph : 2482432
Academic
Qualification : MBA advance diploma infashion designing
Role in Unit : He will look after production &designing
Experience : 2 years experience indesigning garments at ArvindMills ltd.
FinancialContribution : 30%
JUSTIFICATION OF LOCATIONJUSTIFICATION OF LOCATION
Location of any industry plays a
dominant role in the success or failure of thecompany. It has been rightly said that the
mistake of selecting the wrong site cannot be
corrected without heavy losses. Selecting a
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proper site for establishing SSI thus increase,
as finance is a major constraint for a SSI unit.
The proposed location for the
establishment of manufacturing facilities for
my unit is GIDC, Metoda, Kalavad Road, Rajkot.
Govt. has declared this area as an industrial
area in past. Due to govt. incentives and
initiatives, this are has developed very well
with easy availability of infrastructure facilities.
PRODUCT DETAILPRODUCT DETAIL
Raw Material :
The main raw materials required to
produce the Readymade Clothsare Denim &
cotton clothes, thread, button, rivet, zip,
stickers etc.
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2. JACKATS, BARMUNDAS etc.2. JACKATS, BARMUNDAS etc.
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3. T-SHIRTS & PENTS3. T-SHIRTS & PENTS
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SOURCES OF RAW MATERIALSOURCES OF RAW MATERIALGenerally, the raw material ofJEANS
is available from outside Gujarat.
Denim Cloth Mumbai
Cotton Cloth Ahmedabad
Thread Sirmour
Button Delhi
Rivet Delhi
Zip Delhi
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Stickers Ahmedabad
DETAILS OF RAW MATERIAL
SUPPLIERS
1. PASUPATI SPG & WVG MILLS LTD.
Village Kheri Kata Amb
Nahan, Dist. Sirmour (H.P.)
2. ARVIND MILLS LTD.
Ahmedabad
3. RADHE MILLS LTD.
40, Govt. Industrial EstateKandiwali (E)
Mumbai 400006
Maharashtra
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INPUTSMaterialsLabourCapitalEnergy
Information
RESOUCRCES
OUTPUTS
ProductsService
Information
Products orServices
PRODUCTIONFUNCTION
4. SHRINATH INDUSTRY PVT. LTD.
Naraina Industrial Area,New Delhi
PRODUCTION PROCESSPRODUCTION PROCESS
Production is the basic activity of all
industrial units. All other activities revolvearound this activity. The end product of the
production activity is the creation of goods &
services for the satisfaction of human wants.
Production means to make finish product from
the raw material & semi finished goods
production. Process means how to produce the
product with the use of man, machine, material
& management.
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EVEREST MILLS produces theJEANS in the
following steps
Cutting Process
Over lock
Embroidery Work
Stitching Process
Fitting
Washing
Ironing
Folding
Packing
Storing
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FOLLOWING ARE THE STEPS OF THE
PRODUCTION PROCESS OF THE
JEANS
1. Cutting
EVEREST MILLS uses computerized
machine to cut the Garments. First of all the
designer give the programmed of all detail
aboutJEANS which include size & shape in
computer. In the computer arrange the
machines part for the cutting and the cutting
man put 10 pieces of clothes under cutting
table then he starts the machine to cut the
entire cloth into needed pieces when all the
pieces of cloth are ready for the over lock
process.
2. Over Lock
The over lock knight the cloth border
so that cloth cant be scattered. In the process
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of over locking the machine operator over lock
the needed pieces of cloth for stitching.
3. Embroidery Work
The EVEREST MILLS use the
computerized embroidery machine for the
embroidery work. The designer gives the
programmed in computer and makes article
design in cloths.
4. Stitching
The stitching of Garments is divided
into 20 parts of work division among the 20
machines. In this process the garments is to be
stitched through 10 chain stitch machines and
10 simple stitch machines. The machines are
arranged according to the stitching process.There are 3 departments of the Garments
stitching. Finally, Stitched Cloths go for the
further production process.
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5. Fitting
Fitting means to attach the button and
make button holder through the machine in
the JEANS. After if the CLOTHS go for the
rivets attach in the machine and then they are
ready for the acid wash.
6. Washing
After fitting theJEANS waterman wash
the in acid and detergent
powder in the washing machine and dry it in a
drier and thenJEANS are ready for the ironing.
7. Ironing
After washing all the JEANS ironed
through big electric iron it is ready for the fold.
8. Folding
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STAFF AND LABOURSSTAFF AND LABOURS
N
o.
Particula
rs
No. of
Employe
es
Monthl
y
Salary
Yearly
Salary
1 Manager 2 10,000 1,20,00
02 Accounta
nt
1 5,000 60,000
3 Designers 1 5,000 60,000Total 20,000 2,40,0
00
MIDDLE LEVELNo. Particula
rs
No. of
Employees
Monthl
y
Salary
Yearly
Salary
1 Salesman 5 10,000 1,20,0002 Clerk
Typist
1 1,500 18,000
3 Store
keeper
2 2,500 30,000
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Total 14,000 1,68,000
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N
o
Particulars No. of
Emp.
Monthl
ySalary
Yearl
ySalar
y1 Stain stitch machine
Operator
6 10,800 1,29,0
002 Simple stitch machine
Operator
10 16,000 1,92,0
003 Folding machine
Operator
1 1,500 18,00
04 Washing machine
Operator
1 1,000 12,00
05 Cutting & Fitting
machine Op.
1 1,500 18,00
06 Embroidery machine
Operator
2 3,000 36,00
07 Over Lock machine
Operator
1 1,200 14,40
08 Printing machine
Operator
1 1,200 14,40
0
9 Iron Machine Operator 1 1,000 12,00
010 Packing machine
Operator
1 1,000 12,00
011 Watchman 2 1,800 21,60
0
Total4,80,000
BOTTOM LEVEL
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ADMINISTRATIVE WORKADMINISTRATIVE WORK
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Levels of ManagementLevels Of
Management
Monthly
Salary
3 Monthly
Salary
Annual
SalaryTop Level 20,000 60,000 2,40,000Middle Level 14,000 42,000 1,68,000Lower Level 40,000 1,20,000 4,80,000
74,000 2,22,000 8,88,000
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I take maximum one and half year to
implement this type of project the time
required for completing each activity of theproject till commercial production is as follows:
FINANCIAL DETAILFINANCIAL DETAIL
Sources of FundSources of Fund
No.
Particulars Per.(%) Amt. (Rs.)
1 Owned Capital
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No.
Activity Completion Time
1 Preparation of Project 1 month
2 Selection of a site 2 months3 Registration of SSI 1 month4 Availability of finance 3 months5 Construction of building 7 month6 Arrangement of machines &
equipments
1 month
7 Erection & commissioning
including electrification
1 month
8 Recruitment of personnel &
Labour
2 month
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Mr. Sanjay Asaraniya
(30%)
Mr. Kamlesh Asaraniya
(40%)
Mr. Ashish Asaraniya
(30%)
60 % 36,76,800
2 Borrowed Capital 40 % 24,51,200Total 61,28,000
Total Working CapitalTotal Working CapitalBEP ANALYSISBEP ANALYSIS
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No. Particular Monthly 3 Monthly Annually1 Raw Material 4,80,00 14,40,000 57,60,0002 Utility 11,000 33,000 1,32,0003 Wages &
salary
74,000 2,22,000 8,88,000
4 Administrative
Exp.
8,000 24,000 96,000
5 Other
contingencies
3,000 9,000 36,000
Total 5,76,00
0
17,28,00
0
69,12,00
0
No. Particulars Amt. (Rs.)1 Sales 88,00,0002 Variable cost 64,20,0003 Fixed Cost 20,94,696
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PVR = Contribution x 100Sales
= 23, 80,000 x 100 =27.05%
88, 00,000
BEP (in Rs.) = Fixed CostPVR
= 20, 94,696 = 77,43,793 Rs.
27.05%
BEP (in %) = Fixed cost x utilizedcapacity
Contribution
= 20, 94,696 x 60 =52.81%
23, 80,000
FIXED ASSETSFIXED ASSETS
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Total Fixed AssetsNo
.
Particulars Amount
(Rs)1 Land & Building 11,50,0002 Plant & Machinery 19,00,0003 Other Fixed Assets 8,50,0004 Preliminary & Pre-operative Exps. 5,00,000
Total 44,00,00
0
Details of Land & Building
No
.
Particulars Area Rate Total
1 Land 2000 yards 225 4,50,0002 Building 2000 sq. ft. 350 7,00,000
Total 11,50,000
Details of Plant & MachineryNo
.
Particulars Qty. Amount
(Rs)1 Simple stitch machine 10 2,00,000
2 Chain stitch machine 6 4,80,0003 Folding machine 1 1,50,0004 Stain removing machine 1 70,0005 Washing machine 2 3,00,0006 Cutting machine 1 2,00,0007 Fitting machine 1 1,00,0008 Embroidery machine 2 1,00,0009 Iron 1 25,000
10 Printing machine 1 75,00011 Over lock machine 2 1,00,00012 Logo-making machine 1 25,00013 Handling equipment - 75,00014. Delivery Van 2 5,00,00015. Furniture - 3,50,000
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PROFITABILITYPROFITABILITY
RATIO ANALYSISRATIO ANALYSIS
Return on Investment
ROI = EBIT x 100Project Cost
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Particulars Amt. (Rs.) Amt. (Rs.)Sales 88,00,000
(Less) Variable CostRaw Material 57,60,000Utilities 84,000Manpower 4,44,000Admin. Exp. 96,000Other contingencies 36,000 64,20,000
Contribution 23,80,000
(Less) Fixed CostUtilities 48,000Manpower 4,44,000Depreciation 7,49,500Maintenance &
Repairs
1,77,500
Insurance 20,000Int. on loan 6,55,696 20,94,696
Profit Before Tax (PBT) 2,85,304(Less) 35% Tax 99,856Profit After Tax (PAT) 1,85,448
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= 9, 53,000 x10061, 28,000
= 15.55%
EBIT = PBT + TOTAL INTEREST
= 2, 85,304+6, 55,696
= 9, 41,000
Net Profit Ratio
NPR = PAT x 100Sales
= 1,85,448 x 10088,00,000
= 2.11%
MARKET POTENTIALMARKET POTENTIAL
Marketing now-a-days, has become
more important and complex than before. It is
very essential to have a sound marketing
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system which includes a well selected
distribution channel, well worded and
attractive advertisement, reasonable as well asaffordable price and above all a good quality
product.
We are giving stress on all these four
factors of marketing to achieve the greater
market share. Because we know that if the
marketing system is sound, 89% of problems
will be solved automatically.
Quality
Our maximum emphasis is given on
quality. The quality of our product is not only
competitive because we know that mere
competitiveness is not sufficient for viability.
We always want to be one step ahead fromothers.
COMPETITORS &COMPETITORS &COMPETITIVE STRATEGYCOMPETITIVE STRATEGY
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JEANS are high fashioned products which
are continuously affected by the change in
fashion, preference etc. So to stand with and
face the competition in our field we have to
continuously watch the changes going in our
field. We introduced some new designs, new
styles, high fashioned JEANS also in the
market to overtake the competitors.
We remain continuously in touch with the
fashion and style introduced in foreign markets
so that we can give totally new styles &
designs to home market.
Main Competitors are:-Main Competitors are:-
1.1. KAJARIYA MILLSKAJARIYA MILLS
2.2. ZENITH COTTONSZENITH COTTONS
3.3. JOHNSON FASHIONSJOHNSON FASHIONS
RISK FACTORSRISK FACTORS
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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 government policy and such otherchanges also affect the unit. The risk of
remaining unable to adopt such changes is
there but constant check of these aspects will
be useful to avoid the risk. In short, the factor
positioning risk is not much strong and thus
securing the success for the unit.
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FUTURE PLANFUTURE 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.From the above discussion EVEREST
MILLS has an ambition to achieve bright
future. The following are future plans of
EVEREST MILLS.
1. EVEREST MILLS have an ambition of
leading company in the garment world.
2. EVEREST MILLS want to have its retail
stores all over India as well in abroad.
3. EVEREST MILLS want to do business
abroad and compete with the company.
From the above we can say that EVERESTMILLS wants to earn more & more prestige inthe garment world.
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CONCLUSIONCONCLUSION Todays generation is very much
conscious about the garments. The
consumption of new fashionable garments
increases day by day especiallyJEANS.
AJEANS became popular garment
in all over the world. So, the demand increases
day by day and the fashion trend changes
every day in
. At present
take an example of world leading JEANS
producing company Wrangles, Lee, GAP, Flying
machine etc. have launched the range JEANS
trend. So, theJEANS is a forever product in the