2. Prepared By
KOTHARI SHIVANG V.
Class
M.B.A.
Academi Year
2009 - 2011
Roll No.
114
Institute
N.R.VEKARIA INSTITUTE OF BUSINESS
MANAGEMEMNT STUDIES, JUNAGADH
Submitted To
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3. Mr. Dr.RAJESH PATEL
DECLARATION
The undersigned KOTHARI SHIVANG the student of
NRVIBMS, JUNAGADH of M.B.A. hereby declare that the project
work presented in this report is my own contribution and by my own
efforts.
This work has not been previously submitted to any other
university for any other examination
Date :-
Place :- JUNAGADH
Signature
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4. KOTHARI SHIVANG
INDEX
I. INTRODUCTION OF THE INDUSRTRY
II. PROJECT AT GLANCE
III. BIO DATA OF THE PROMOTORS
IV. LOCATION & SITE LOCATION
V. RAW MATERIAL & ITS SOURCES
VI. MARKET SURVEY
VII. PRODUCTION PROCESS
VIII. QUALITY CONTROL & STANDARDS
IX. STAFF & LABOUR
X. TECHNICAL & FINANCIAL DETAILS
XI. COST OF PRODUCTION
XII. PROFITABILITY OF PROJECT
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5. XIII. BREAK EVEN POINT ANALYSIS
XIV. SUPPLIERS OF RAW MATERIALS
XV. COMPETITORS
XVI. FUTURE PROSPECT
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6. INTRODUCTION
There are already many competitors of our product in the market
as shirt manufacturing is one of the most important in fashion &
design. So the quality of our product is better, it will achieve the
desire position in the market in future. As we produce qualitative
products with the reasonable price, it wills the main points of our unit
will consider and work accordingly.
Now a day the product of shirt is uses in everywhere most likely in
official uses. So market of our product will be huge in the future. So
our product must have some unique features than others and we are
trying to concentrate more on this point to beat this cutthroat
competition.
The main objective of our unit is to provide the best quality to the
consumers and by this way we will try to capture the maximum share
in the market.
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7. The unemployment is the prevailing economic diseases in most of
the developed and developing countries, the problem of
unemployment is becoming more and more active day by day.
This problem is further added by rapidly increasing population.
The population is increasing at fast rate. To provide employment to
such a large number is difficult task.
Large-scale industries are capital intensive, so their capacity to
provide employment is very little; so, large industries also cannot
solve this problem. As cottage and small-scale industries being labor-
intensive employment can be provide through their development.
So, in developing countries with large reserves of surplus labors,
there is undoubtedly an opportunity for paying special attention
labor-intensive industries. So it is often argued that one of the most
promising opportunities lies in developing small-scale industries
would help in solving human welfare problem of unemployment and
would moreover provide a strong bases for stable growth of a large
sector of the Indian economy.
In India, today, the cottage and small-scale industries provide
employment roughly to 24 million people; where as large sale
industries provide employment only to 4.5 million people. As far as
employment is concerned, they stand next to agriculture.
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8. One more benefit of small-scale industries is that a large industry
requires huge amount of capital while small industries can be
established with limited capital, if we invest scare capital in small-
scale industries, the returns are quick and hence the generated returns
may again form capital.
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10. NAME OF THE UNIT GLADIUS PVT. LTD
OFFICE ADDRESS “GLADIUS PVT.LTD.”
197 More Choice,
Place Road,
RAJKOT.
FACTORY ADDRESS “GLADIUS PVT.LTD.”
8 –NEW ATIKA MAIN ROAD DHEBAR
ROAD SOUTH RAJKOT :- 360002
SIZE OF THE UNIT Small Scale industry.
PRODUCT ‘SHIRT’
FORM OF
ORGANISATION Proprietorship Firm.
PROPSED INSTALLED 100 %
CAPICITY
PROPSED CAPICITY 100 %
UTILIZATION
TOTAL PROJECT COST 2000000000
MEANS OF FINANCE Owned Capital & loan from GSFC
TOTAL LAND AREA 1400 (Sq.Mt.)
BUILD UP AREA 1000(Sq.Mt.)
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12. BIO DATA OF THE PROMOTORS
NAME OF OWNER KOTHARI SHIVANG V.
DATE OF BIRTH 07 / 02 / 1989
22
AGE
M.B.A.(Mktg)
QUALIFICATION
“NIRMAL”
RESIDENTIAL 8-NEW MEGHANI NAGAR ,
ADDRESS SAHKAR MAINROAD,
RAJKOT – 360002.
“GLADIUS PVT. LTD.”
BUSINESS 8-NEW ATIKA MAIN ROAD
ADDRESS DHEBAR ROAD SOUTH
RAJKOT;-360002
MOBILE NO. 9724102319
State Bank of Saurashtra
BANK
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14. INTRODUCTION
The unit is located at such area where it can avail the
concerned business easily. Moreover exact location is a
place where there us minimum of cost and maximum
profit can be achieved.
Before setting a unit, entrepreneur has to kept in mind
the various location factors such as availability of land,
power, water such infrastructure facilities availability of
labor etc.
1. LOCATION OF THE FACTORY
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15. It is quite know that GIDC is an industrial area and we can
obtain any facility as a convenient way. Surrounding area is
containing a big market for the shirt product. There are many other
facilities of factors which inspired us to choose proposal location.
2. DISTANCE FROM THE RAW MATERIAL MARKET
There is more transportation facility because of center point of the
city. From this we can easily get the raw materials which is important
for the manufacturing of our product. We purchase raw materials in
Ahemdabad, Bombay, and remaining in Delhi.
3. SKILLED LABOUR AVAILABLE
For the production of our product we require skilled and unskilled
workers. So location of the factory is in city, we can get labours easily.
So our production this place is fulfill our satisfaction labour.
4. TRANSPORTATION FACILITY
Now a days there are many useful facilities are available. We can
uses the road facility and railway facility to transport the our finished
goods. So, we can get easily both the facilities for transporting the
goods.
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17. THE RAW MATERIAL MARKET
Raw material is a basic component of the
product. Raw material cost is the major cost in the
overall cost of the production. There is more
transportation facility because of center point of the city.
From this we can easily get the raw materials which is
important for the manufacturing of our product. We
purchase raw materials in Ahmadabad, Bombay, and
remaining in Delhi.
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19. MARKET SURVEY
1. MARKET SURVEY:
Market survey is one of the essential tool of necessary to get the
feedback of a product and the consumers. Through market survey
several other information can be obtained like product’s potentiality,
reaction of consumer’s towards our product, demand of the product
and according to that our supply, competitors force in market price
difference from the competitors price, innovation needed in our
products etc.
2. MARKET DEMAND:
Market demand means consumers need, wants & potentiality to
purchase the product.
Through consumer’s survey we can know the market demand. It is
necessary to know the demand of an item from our product. Thus
through demand we can come to know the actual production to be
made and the supply of the needed products.
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21. INTRODUCTION
Production process of any business unit is concerned with the
creation of any particular product or service required to satisfy
customer needs and desires. Besides, production management is the
process of effectively programming., co-ordination and controlling
production activities.
Production means creation of utilities and it covers all the activities
of procurement, allocation and utilization of the resources available to
the firm such as labour energy, material etc.
Differently saying, production function is regarded as a subsystem
of the company, manufacturing plants are on the realistic sales or
demand forecasts. In simple words, we can say that production is a
process of converting raw material into the finished goods.
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22. PRODUCTION PROCESS
STEP- 1
CUTTING CLOTHES
STEP- 2
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23. COUNTER SLEEVES
ATTACH SLEEVE
SEW FRONT FLY TO LEFT FRONT
SEW BUTTON ON FRONT
SEW POCKETS
SEW BUTTONHOLE ON FRONT
SEW BUTTON TO TOP OF FRONT
& CUFF
SEW SIDE & UNDER SLEEVE
SEW BUTTON TO TOP OF FRONT
& CUFF
SEW YOKE TO BACK
RUNSTITCH CUFFR
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26. After completing shirt finishing we can take further step for
ironing in a electric boiler it’s call a vacuum ironing. All shirts are
making a ironing and go for further process.
PACKING:
This is final operation of our product and that is packing. In this,
the shirts are packed in some boxes or some packed in plastic bags.
We have different types of series. It is based on the rate of shirts. We
are giving the packing on amount received. After all these some small
packing then it is pack in one big cartoon. It is pack in as a order of
the goods is packed in the cartoon.
FORWARDING:
And this is the final procedure of our product and it is forwarding.
These packed cartoons are either go by transport or by railway. Some
times there is some local orders are there and we have to give them
goods by our vehicle.
COUNTER SLEEVES:
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27. Newly designed machine head that was developed in pursuit of
beauty. The optimum-balance and highly rigid machine head were
created using the latest 3D-CAD design technology.
The improved machine head, such as incorporation of an eccentric
pin that is used to adjust the feed dog, ensures enhanced
maintainability. In addition, the machine is provided with
amounting seat for attachment to improve workability while a
replacing the attachment and increasing the durability of the
machine bed surface.
ATTACH SLEEVE:
The machine ensures both beautiful and upgraded seam quality at
higher speeds.
Further increased reliability bar bushings of the needle bar
mechanism improve both the durability and reliability of the needle
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28. bar unit. The machine comes standard with a cartridge type oil filter
and cooling fan for further improved reliability and durability.
SEW FRONT FLY TO LEFT FRONT :
The machine has adopted a bottom-feed mechanism. This enables
the machine to perform sewing with a low tension applied to the
material while preventing puckering and stitch skipping, thereby
improving consistency of seam quality.
The machine is capable of adapting to the sewing of lightweight
materials and newly developed materials. This means that the
machine is exceedingly effective to the process to sew top center plaits
of shirts and the sewing of foundation.
SEW BUTTON ON FRONT :
The single-thread, chain stitch,
Button sewing machine with a
Reliable knot-tying mechanism has been
Revamped with a new design. The
Machine inherits the excellent
Sewing capabilities as well as the
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29. Outstanding operability of the conventional MB Series button
sewing machine. The 4-holed button-sewing mode can be easily
switched over to the 2-holed button-sewing mode in accordance with
changing sewing specifications. Furthermore, operating the lever can
easily change the buttonhole interval.
SEW POCKET:
The machine has easy-to-operate functions to achieve improved
operability. By providing a presser foot with a higher lift (13mm), a
Light-touchstitch dial, a throat
plate with marker grooves that
can be used as guide for seam
allowance, and other easy-to-
operate functions, the burden on
the operation is lightened, and productivity is further increased.
SEW BUTTONHOLE ON FRONT :
At the very least, a g
The buttonholing position can be easily adjusted. This further
enhances ease of operation. A
newly introduced mechanism in
the needle thread trimmer prevents
interference with the positioning
of buttonholes. The shape of the
face plate is designed to provide
sufficient clearance around
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30. the needle entry position. As a result, ease of operation is further
improved The work clamp can be lifted as high as 12mm.The machine
is capable of sewing heavy-weight materials such as bulky knits. The
maximum lift of the work clamp is 12mm, enabling the machine to
make high-quality buttonholes in heavy-weight materials.
SEW BUTTON TO TOP OF FRONT & CUFF :
The 4-holed button-sewing mode can be easily switched over to
the 2-holed button-sewing mode in accordance with changing sewing
specifications. Furthermore, operating the lever can easily change the
buttonhole interval.
The number of stitches can be quickly
selected from among 8, 16 and 32 stitch
he corresponding to the change in
sewing specifications. That acthments
that are currently being used with the
conventional machine can be used
with the revamped machine without
the need for any additional machining or adjustments.
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31. SEW SIDE & UNDER SLEEVE
High-quality machine with easier
operation and increased reliability.
The MO-6900S Series is a new and
powerful overlook safety stitch
machine that has been developed to offer increased reliability and
ease-of-use, while upgrading seam quality at higher sewing speeds. It
responds to a wider range of materials and processes to finish high-
quality soft-feeling seams. With the operating noise having been reduced
and increased durability ensured, the cost-effective MO-6900S Series is a
leading machine in the new era.
SEW BUTTON TO TOP OF FRONT & CUFF :
At the very least, a good buttonholing machine should finish
seams of consistent quality and be widely adaptable to many
different kinds of materials and seam specifications.
The LBH-780 series buttonholing
machines respond to these needs
and help reduce operator fatigue,
thereby finishing high-quality
buttonholes with a higher degree
of efficiency.
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32. SEW YOKE TO BACK
The machine head is one size larger than the conventional head,
expanding the space under the machine arm for increased operability.
With its direct-drive system, the machine starts up smoothly and
offers excellent responsiveness.
With its dry head that no longer uses an oil pan, the machine totally
eliminates oil stains on the material. The jaw of the machine arm is
located 1cm higher than that of the conventional machine. By ensuring
easy observation of the needle entry area, the operator can run the
machine in a more comfortable posture.
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33. RUNSTITCH CUFFR :
The stitch quality is consistent even during high-speed operation.
Capable of high-speed sewing, it can also flexibly respond to various
applications, thus leading to higher productivity.
The knife is sharp enough to cut
any type of material The knife is
capable of cutting any kind of
material regardless of its thick
nests or toughness, including
heavy-weight material, elastic
material and brushing material
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35. QUALITY CONTROL & STANDARDS
The quality control and standards are most important for any
producer. By changing the proportion of various ingredient. We can
makes the shirt of different qualities and types. Mainly quality is to
be decided according to the customers requirement. More over in
order to the maintain the up to date standard & quality of the product,
a special care is to be taken regarding the inputs or raw material.
Thus, attention is needed during the purchase of raw material such
in uses of our production. After completing all the process last the
packaging is important aspect of the every unit, we can make a good
packaging and to take care of all the standards.
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37. TECHNICAL & FINANCIAL DETAILS
1.Fixed Capital
2.Working Capital
3.Project Cost
4.Means of Finance
5.Total Sales
6.Cost of Production
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38. FINANCIAL DETAILS OF PROJECT
1. FIXED CAPITAL :
Finance is the life blood of business. The main objectives any
organization is to take maximum profit and survive its prosperity and
that’s objectives depends upon the efficiency of the financial debt of
that particular organization.
Finance is regarded as one of the crucial decision of business.
Now a days any activity whether commercial or non commercial
would need finance directly or indirectly.
LAND & BUILDING :
NO Particulars Total Rate Total
sq.mt. Rs. Value
1. Open Land 1200 5000 6000000
2. Build up Land
i. Factory shed 600 5000 3000000
ii. Office Block 100 5000 500000
iii. Store Room 100 5000 500000
Total 2000 5000 10000000
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39. MACHINERY & EQUPMENTSs
SR PARTICULARS BRAND QTY PRICE TOTAL
NO
1 DDL 8700 NEEDLE LOCK STITCH JUKI 14 SET 21000 294000
FLAT BED MACHINE
2 LBH 781 NEEDLE LOCK STITCH
BUTTON HOLDING M/C. WITH JUKI 2 SET 150000 300000
STD. ACCESSORIES
3 MB 377 JUKI RAND BUTTON JUKI 2 SET 115000 230000
SEWING MACHINE
4 MS 1190 FEED OF THE ARM JUKI 1 SET 115000 11500
MACHINE
42900
5 MO 6716 JUKI 5 THREAD JUKI 1 SET 42900
OVERLOCK
41000
6 TK 629 TAKING CLOTH CUTTING TAKING 2 SET 20500
MACHINE
97000
7 TEXTILE PROCESSING MACHINE RAMSONS 1 SET 97000
82000
8 HYDRO EXTRACTOR 82000
RAMSONS 1 SET
88000
9 TUMBLER DRIER 88000
RAMSONS 1 SET
23000
10
SHIRT FOLDING TABLE RAMSONS 1 SET 23000
132000
11 VACUUM IRONING STEAM RAMSONS 3 SET 41000
GENERATOR WITH ELE. BOILER
133000
12
450 GS FUSING MACHINE OSHIMA 1 SET 133000
13 7500
TK 818 BUTTON MACHINE FOR TAKING 1 SET 7500
PUSH BUTTON
65000
14 1404 KANSAI SPECIAL SET WITH KANSAI 1 SET 65000
STANDARD TABLE & MOTOR
1650400
TOTAL
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40. OTHER FIXED ASSETS :
NO. PARTICULARS Amount
1 Furniture 125000
2 Electricity fittings 25000
3 vehicles 150000
TOTAL 300000
TOTAL FIXED ASSETS :
NO. PARTICULARS Amount
10000000
1 Land & Building
1650400
2 Machinery & Equipments
300000
3 Other Fixed Assets
TOTAL 11950400
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41. 2.WORKING CAPITAL :
RAW MATERIAL :
NO. Particular Amount
1 CLOTHES 5282500
2 THREADS 348000
3 BUTTONS 184000
4 OTHER MATERIALS 270000
TOTAL 6084500
WAGES & SALARIES :
NO Particular No of Amount Amount
Employees (Monthly) (Yearly)
1 Production manager 1 6700 80400
2 Sales manager 1 6700 80400
3 Chief manager 1 8000 96000
4 Super visor 2 2700 64800
5 Designer 3 3200 115200
6 Skilled workers 12 2200 316800
7
Semi skilled worker 8 1700 163200
8
Unskilled workers 6 1200 86400
TOTAL 1003200
REPAIRS AND MAINTAINANCE :
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48. PROFITABILITY RATIO:
Total Sales 15760800
Less :- Variable Cost 6670100
CONTRIBUTION 9090700
Less :- Management expenses 1003200
PROFIT BEFOR DEPRICIATION 8087500
Less: Depreciation 1365040
PBIT/ EBIT 6722460
Less :- Interest on loan 1277400
PBT/EBT 5445060
Less :- Income Tax @ 20% 1089012
PROFIT AFTER TAX 4356048
Add :- Depreciation 1365040
CASH FLOW 5721088
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50. BALANCE SHEET
Particulars Amount (Rs.) Amount (Rs.)
Capital & Liabilities
Promoter’s Capital 7361200
Borrowed Loan
Bank loan 7410000
GSFC 4852500 12262500
Profit and Loss A/C 4356048
Total Liabilities 23979748
Assets
Land & bulding
(Less: Depreciation)
Machinery 8800000
(Less: Depreciation) 1485360
Debtor 3694388
Cash on Hand 500000
Cash at bank 3500000
Closing Stock 2000000
Investment in Govt. security 4000000
Total Assets 23979748
PROFITABILITY RATIO:
51. Profitability Ratio = Net Profit 100
Net Sales
= 4356048 100
15760800
= 27.64 %
Return on Capital = Net Profit 100
Net Capital
= 4356048 100
19623700
= 22.18 %
52. BREAK EVEN POINT ANALYSIS :
FIXED COST :
Depreciation 1365040
Interest 1277400
55. 2. WAGHA TREDING : PUNE
3. MORE DESION : AHMEDABAD
4. SMART ZONE : DELHI
5. EXCLUSIVE POINT : AHMEDABAD
6. JOHNSON & JOHNSON : U.K.
7. ROSY BRAND : U.K.
56. FUTURE PLANS
In modern age, popularity of our product is
increasing. Therefore the demand of it is increasing
57. day by day. In future we are looking for producing
pent, trousers, T-shirts.
This indicates about expansion and development
of the project. Accordingly the present project is also
expected have a better prospects.
CONCLUSION
Today’s generation is very much
conscious about the garments. The consumption of
new fashionable garments increases day by day
especially SHIRTS.
58. SHIRTS became popular garment in
all over the world. So, the demand increases day
by day and the fashion trend changes every day in
SHIRTS. At present take an example of world
leading SHIRTS producing company Wrangles,
Lee, GAP, Flying machine etc. have launched the
range SHIRTS trend. So, the SHIRTS are a
forever product in the garments.
PREFACE
Knowledge is an ocean that cannot be fathomed – the deeper
you go, the more you see its unbounded profundity yet, in the
competitive world of today. It is very essential for young
entrepreneurs to have the basic knowledge about how SSI can be
started and which type of plan is to be submitted to the bank or
other financial institution for the purpose of loan because SSI
plays a vital role in promoting the economic condition which aids
in raising the total national income.
59. Practical study plays a vital role in the field of education. It has
been introduced for the students to get practical knowledge along
with the theoretical knowledge is not the right way of learning
anything especially for the management students. How
management principles are implemented in business can only be
known through practical study through visit, students can very
well become aware about industrial environment like problem,
opportunities, different situations etc. This helps the students for
better understanding & also gives then a chance to their skills &
ability.
So I have chosen to make project on ‘SHIRT’
manufacturing.