BHAVAN’S COLLEGET.Y. B.M.S. ‘B’2010 – 2011

GROUP NO. : 17

A REPORT ON SMALL SCALE INDUSTRIAL UNIT

DRAGAON JEANS & CASUAL

ENTREPRENEURSHIP AND MANAGEMENT OF SMALL AND MEDIUM INDUSTRIES

SUBMITTED BY:

SAKSHI SARAOGI……………….…………97

RITEN SAKHIYA……………….…………..98

ZEENAL WAGHELA……………………….99

NIKHILA CHEVURI………….……………..100

PARI VAYA…………………………………101

ROHAN SONAWANE………………………102

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ACKNOWLEDGEMENT

We the group members take this opportunity to thank Prof.D’costa for giving us the opportunity to prepare a project report on SSI unit.

The project work helped us to understand how a small scale industry operates and sustains its share in the market. We learned various aspects of entrepreneurship and the methods adopted by businesses to tackle competition. It widened our knowledge on the subject.

We thank him for his constant encouragement and support for the same.

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INDEX

S. No. PARTICULARS PAGE No.1 INTRODUCTION 5

2 SMALL AND MEDIUM SCALE INDUSTRIES 6

3 ROLE AND IMPORTANCE OF SMALL SCALE INDUSTRIES 7

4 CHARACTERISTICS OF SMALL SCALE INDUSTRY 8

5 DRAGAON JEANS AND CASUALS 9

6 RAW MATERIALS 10

7 JEANS PRODUCTION 11

8 MANUFACTURING PROCESS 12

9 WASTAGE 21

10 CURRENT MARKET 22

11 4Ps OF DRAGON JEANS 23

12 COMPETITION 24

13 QUALITY CONTROL 25

14 CONCLUSION 26

15 BIBLIOGRAPHY 27

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INTRODUCTION

Entrepreneurship is the act of being an entrepreneur, which can be defined as "one who undertakes innovations, finance and business acumen in an effort to transform innovations into economic goods". This may result in new organizations or may be part of revitalizing mature organizations in response to a perceived opportunity. The most obvious form of entrepreneurship is that of starting new businesses (referred as Start-up Company); however, in recent years, the term has been extended to include social and political forms of entrepreneurial activity. When entrepreneurship is describing activities within a firm or large organization it is referred to as intra-preneurship and may include corporate venturing, when large entities spin-off organizations.

Definition of Entrepreneurship

According to Arthur H Cole:

“Entrepreneurship is the purposeful activity of an individual or a group of associated individuals, undertaken to initiate, maintain or aggrandise profit by production or distribution of economic goods and services.”

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SMALL AND MEDIUM SCALE INDUSTRIES

Small scale industrial units are those engaged in the manufacture, processing or preservation of goods and whose investment in plant and machinery (original cost) does not exceed Rs.1 Crore. These would, inter alia, include units engaged in mining or quarrying, servicing and repairing of machinery. In the case of ancillary units, the investment in plant and machinery (original cost) should also not exceed Rs. 1 Crore to be classified under small-scale industry.

The investment limit of Rs. 1 Crore for classification as SSI has been enhanced to Rs.5 Crore in respect of certain specified items under hosiery, hand tools, drugs & pharmaceuticals, stationery items and sports goods by the Government of India.

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ROLE AND IMPORTANCE OF SMALL SCALE INDUSTRIES

Small and medium enterprises play an important role in the development of a country. SMEs contribute to economic development in various ways: by creating employment for rural and urban growing labor force, providing desirable sustainability and innovation in the economy as a whole .In addition to that, a large number of people rely on the small and medium enterprises directly or indirectly.

Most of the current larger enterprises have their origin in small and medium enterprises. SMEs are different from large scale enterprises in three main aspects; uncertainty, innovation and evolution. The SME sector itself can be classified into micro enterprises, small enterprises and medium enterprises. SMEs are the starting point of development in the economies towards industrialization. However, SMEs have their significant effect on the income distribution, tax revenue, and employment, efficient utilization of resources and stability of family income.

According to the United Nations Industrial Development Organization UNIDO, for developing countries, integration into the global economy through economic liberalization, deregulation, and democratization is seen as the paramount way to triumph over poverty and inequality. Important to this process, is the development of an animated private sector, in which small and medium enterprises can play a central role.

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CHARACTERISTICS OF SMALL SCALE INDUSTRY

A few examples of small-scale businesses include a flea market or shopping mall booth, a consultancy business, or even a computer repair shop that moves into retail space. Small-scale businesses typically consist of one owner and his shop. The business owner sells products and/or services supplied by a franchise company or created by the owner himself. This type of business is flexible, which means that the owner can generally set hours at any time to accommodate customers.

Start-up-The initial start-up costs for a small-scale business are usually pretty low, depending on the specific business model and what products/services are being sold. A small-scale business selling retail goods at flea markets will only need require funds to purchase initial inventory and pay for a spot at the flea market. Likewise, the owner of a small business selling homemade goods only needs to worry about purchasing materials to make the goods. Small-scale businesses that offer consultation services, such as tax preparation or nutritional services also have very low overhead costs.

Portability-A small-scale business is generally portable, making it easy to set up and tear down products. Small-scale businesses also need a way to accept payments.

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DRAGAON JEANS AND CASUALS

RAMUKA APPARELS

Ramuka apparels were established in the year 1985 with vision of becoming the most recognised manufacture of garments in the Country. The company have been into manufacturing of jeans for around 26 years.

Earlier the company was a textile industry which they converted into a jeans manufacturing factory. The reason for these conversion low sales in this market.

The company is registered under their own brand name which is dragaon.

Ramuka apparels started Dragaon with ladies jeans wear and in due course they have expanded their product line and length to gents, codroy, gent’s jeans wear, Capri trousers, and jackets.

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RAW MATERIALS

True blue jeans are made out of 100 percent cotton, including the threads.

Polyester blends are available; however, the over-whelming majority of jeans

sold are 100 percent cotton. The most common dye used is synthetic indigo.

The belt loops, waistband, back panel, pockets, and leggings of a pair of blue

jeans are all made of indigo-dyed denim. Other features of blue jeans include

the zipper, buttons, rivets, and label. Rivets have been traditionally made of

copper, but the zippers, snaps and buttons are usually steel. Designers' labels

are often tags made out of cloth, leather, or plastic, while others are

embroidered on with cotton thread. The company purchases its raw material

from Raymond mills and other small scale mills.

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JEANS PRODUCTION

The jeans production process is in actual facts made of different stages which come one after the other in order to result in the finished product.

The actual jeans production begins within the rooms with the cutting of the fabrics, which then go to the confection laboratories and eventually terminate in the finishing structure.

Concluding the process are the washing or dye-works treatments following which the product is ready for the final phase which ends in the pressing room. As far as washings are concerned, those are managed in collaboration with the most important Italian laundries, which are avant-garde and able to perform the most complex and innovative treatments.

At the end of the process, the denim garment is tagged with pricing and brand identification information, folded and packed in a plastic bag.

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MANUFACTURING PROCESS

Once the garments have been finalized and selected, the pattern maker creates manufacturing patterns for production. These are then sloped, or sized, to accommodate various body measurements. Often, a jeans or denim garment will use an old pattern that has sold well, rather than creating a fresh pattern.

The denim fabric is brought into the factory, and the cutting process begins. From there, the jeans are stitched by hand, or completely by machine. Interior labels are added before the waistband is stitched. The denim garment is still the old-fashioned indigo jean fabric with no conditioning or distressing. It reaches the conditioning stage of the assembly process, where the apparel is battered, beaten, painted, scrubbed or acid-treated to achieve the desired wash. After this, machines then add rivets, outer branding labels, or any other specialized trims.

The steps in manufacturing jeans are as follows:-

A. Pre-Production And Cutting Process

B. Stitching Process

C. Colouring Process

D. Washing Process

E. Finishing

F. Ironing

G. Packaging Process

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A. PRE-PRODUCTION AND CUTTING PROCESS

To start, the jeans are designed for a certain type of denim, with a pattern created for that particular variety of textile. Stretch denim will need a different sort of construction than non stretch denim, so patterns must be specific to the fabric to get the desired fit. After the pattern is produced and sloped to make a whole range of sizes, the pattern goes to the cutting floor. Once the pattern is placed on the denim, the many layers of fabric are cut into pieces for legs, pockets, waistband and accents. The pieces are bundled together by component, with up to 100 layers of cuts ready to go.

Cutting process-

First, a pattern maker draws a jeans pattern based upon measurements (of samples) that were supplied by the jeans designer or the buyer's merchandiser.

A person, or a computer program, will then calculate the optimal fabric consumption by puzzling all the pieces of the jeans pattern on a paper that is placed on top of the denim fabric. After drawing the cutting lines onto this paper:

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The fabric is ready to be cut, the denim is laid out in layers on a cutting table. Up to 100 layers of denim are stacked and weights are put on top of it to hold the denim fabric in place, while it is being cut.

The separate parts of the jeans are cut with a textile cutting machine and each piece is then marked with its size, using a piece of chalk so it won't show after washing.

All of these pieces of cut denim are then put into bundles by size.

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B. STICHING PROCESS

The jeans head over to the sewing machines, where they're sewn by workers on incredibly fast industrial machines. An industrial machine can sew thousands of stitches a second, so these employees must be highly skilled to avoid injury in their haste. According to Jeans Info, an average worker can piece together a whole pair of jeans in about 15 minutes. Afterward, the stitched garments are washed in industrial machines and processed for color.

It takes about 1.6 meters of denim fabric, several hundred meters of sewing thread, 6 rivets, 1 or 5 jeans buttons, 4 labels (usually imitation leather), and optionally a zipper to make a pair of jeans.Different parts of jeans are stitched on different machines which are later stitched as one jean.

There are different machines for each handling.

On average, it will take about 15 days for producing 2000 pair of jeans.

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C. COLOURING PROCESS

Colouring means bleaching, dyeing or stone washing, as well as other embellishments.

Traditionally, jeans are dyed to a blue colour using indigo dye. Some colours that can be achieved however are pink, blue, yellow, black, and white. These colours are achieved by colouring other fabrics to resemble jeans. Approximately 20 million tons of indigo are produced annually for this purpose, though only a few grams of the dye are required for each pair of these trousers

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D. WASHING PROCESS

After the Dragaon jeans are sewn together, they go out to a jeans washing plant where they are washed in what could best be described as: standard, yet very big, washing machines.

A stonewash for 150 pairs of jeans takes 150 kilos of pumice stone and more than 750 litres of water. Depending on how faded the look will have to be, they will be washed somewhere between 30 minutes and 6 hours.

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E. FINISHING

After the stone-washing process the denim garment is inspected for faults and loose threads are cut.

Next the button(s) and rivets are placed using a special type of press.With finishing sewing we mean the sewing of the buttonholes, decorative lines on the back pockets as well as other decorative stitching. Finished denim products are shipped out to stores for sale or stocked in warehouses for future distribution. Wastage is generally scraped. Defected products are generally sold as defected products.

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F. IRONING

Before packaging the jeans are ironed to remove the creases and to make it appealing to the buyers. Ironing is done on a table which is kept on the top of a hot air blower or heater so as to quicken the process. It helps in proper ironing of the jeans.

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G. PACKAGING

After that the jeans go on to the garment packing room where final quality inspection takes place and paper tags and labels are placed or attached.When this step is completed, workers apply branding labels and tags, ending the process by bagging the finished garment in a plastic sack.

Every single piece of garment is manual packed and therefore double checked in packing department. It is believed that the human influence is essential in maintaining the high quality of the products.

A typical pair of jeans will have a hang tag, joker ticket, pocket flasher, leg sticker, inside care label with product of origin and assorted product id tags. When all is done, the jeans will be placed in a poly bag with proper warning text and packed in a box or bag, depending on the destination.

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WASTAGE

The process of cloth making involves treating the fabric with a number of chemicals in order to produce clothing with such desirable characteristics such as durability, colourfastness, and comfort.

Each step of finishing the cotton fabric (dyeing, sanforizing, etc.) produces by-products.

The waste products are sold. Defective products are also sold in the market as a defective product.

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CURRENT MARKET

Dragon Jeans is currently present in these areas (denoted in blue colour).

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4Ps OF DRAGON JEANS

1. PRODUCTS Jeans for men and womenLadies denim capreeTrousers for men

2. PROMOTION Ramuka apparels promotes its products through, catalogues, posters advertising programs on television channels and magazines. Ramuka apparels tries to position itself as a stylish casual wear retailer in a fair price. Its marketing efforts are oriented to reach out to all levels of consumers.

3. PLACE Ramuka Apparels main opportunity to reach its customer is through its stores. Its main market is south. Southern market brings out more sales. The products are transported by roads and also through railways.

4. PRICING The cost of the jeans ranges from 400-500.The company does not follow any advancement payment technique. Generally the textile market is on credit.

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COMPETITION

It is because as an apparel business, a jeans company is a complicated one to run.

One must not only be an entrepreneur, but also be a fashion expert . He will need these combinations of knowledge and skills when dealing with many issues that face garment manufacturers like international competition, high cost of local labour, and the ever changing trends in fashion.

It would greatly help if one has training or experience in sales and administrative functions, product merchandising, advertising, inventory control and cash handling.

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QUALITY CONTROL

Cotton is a desirable natural fibre for several reasons. Cloth made from cotton is wear resistant, strong, flexible, and impermeable. Blue jeans are only as good as the cotton that goes into them, however, and several tests exist for cotton fibre. All bales of cotton are inspected by the denim manufacturer for the desired colour, fibre length, and strength. Strength is the most important factor in blue jeans. It is measured by using a weight to pull it. When the fibre breaks, the force used to break it is measured. The cotton's strength index (weight of weight divided by weight of sample) is then calculated.

The finished denim cloth is carefully inspected for defects. Each defect is rated on a government-defined scale ranging from one point for very small flaws to four points for major defects. Although government regulations allow cloth with a high defect rating to be sold, in reality customers will not accept denim with more than seven to ten defect points per square meter. Poor cloth is sold as damaged. Denim is also tested for durability and its tendency to shrink. Samples of cloth are washed and dried several times to see how they wear.

Blue jeans are also inspected after they are completed. If a problem can be corrected, the jeans are sent back for re-sewing. The pair is then inspected again and passed. The buttons are inspected to ensure that they and the buttonholes are of the proper size; the snaps, metal buttons, and rivets are checked for durability and their ability to withstand rust. The zippers must be strong enough to with-stand the greater pressures of heavy cloth, and their teeth durability must be checked as well. This is done by subjecting a sample zipper to a lifetime of openings and closings.

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CONCLUSION

It can be inferred from the findings that a SSI unit faces various challenges, but as the company establishes itself in the market, they figure out ways to tackle the same.

Dragon jeans over a course of time have managed to penetrate into the market. Their strategy is to provide quality products at fair price. it needs to be noted that a SSI unit has to keep itself updating as per the changing trends in the market.

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BIBLIOGRAPHY

HUMAN SOURCE:

Mr. R.C. Ramuka

WEB SOURCE

www.wikipedia.com

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