Set-up plant for jeans Final Project

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:- suryajeans@gmail.comWEBSITE:- 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 )