NSIC

Project Profiles

HAWAI CHAPPALS
1. INTRODUCTION
Hawai chappals are lightweight footwear used by gents, ladies and children in our
country and is used by every sectionof the society by people of all ages. In the
beginning chappals are only functional utility ie. To protect the foot from thorns,
insects, etc. The chappals have become common among villagers, farmers and
labourers.
2. MARKET
People from both the urban and rural areas are using the hawai chappals. To cater to
the requirements of different users of hawai chappals, they are now made in different
types and by different manufacturing processes. There is a good scope of marke for
this product in rural and urban areas.
3. MANUFACTURING PROCESS
The hawai sheets are cut with the help of die/mould in sole cutting machine or fly
press. After cutting the soles in required sizes, they are drilled with drilling machine
for inserting the straps. The straps are then fitted by strap fitting tool made out of
iron/stainless steel. The edges are finished with the help of grinding machine. The
chappals so produced are then inspected and packed in polythene and kept in boxes.

4. PRODUCTION CAPACITY PER ANNUM

Capacity
Selling Price

Rs.

130000 chappals
13 per chappal

5. PROJECT COST/CAPITAL INVESTMENT

S.No

1
2
3

Description

Preliminary & Preoperative Expns

Fixed Capital
Working Capital for
Total Project Cost

Amount Rs.

2000
61000
133700
196700

month(s)

6. MEANS OF FINANCE
S.No

1
2
3

Description

Promoter Contribution
Subsidy/Soft Loan
Term Loan
Total

%age

Amount Rs.

15%
20%
65%

29505
39340
127855
196700

NSIC

Project Profiles

7. FINANCIAL ASPECTS
A. FIXED CAPITAL
i. Land and Buildings

Rented

Rs. 2000

per month

ii. Machinery and Equipment

S.No

1
2
3
4
5
6
7

Description

Qty.

Fly press for cutting sheet (hand operated)

Drilling machine
Finishing machine
Cutting dies of different sizes and shapes
Hand tools
Furniture and euipment
Electrification and installation expenses
Total

1
1
1
25
LS
LS
LS

Rate

Amount Rs.

14000
9000
8000
400

15000
10000
8000
10000
5000
10000
3000
61000

B. WORKING CAPITAL
i. Salaries & Wages (per month)
S.No

1
2
3
4

Description

Nos.

Manager/Entrepreneur
Skilled labour
Semiskilled labour
Unskilled labour
Total

1
6
2
2

Sal/mon. Amount Rs.

2000
1500
1200
1000

2000
9000
2400
2000
15400

ii. Raw Material (per month)

S.No

1
2
3

Description

Hawai rubber
Straps
Packing material @ 0.50 per pair
Total

Unit

Qty.

sheets
pairs
paris

2500
11000
11000

Rate

Amount Rs.

32
2
1

80000
22000
11000
113000

iii. Utilities (per month)

S.No

1
2

Description

Power
Water

Unit

LS
LS
Total

Amount Rs.

1000
300
1300

iv. Other Expenses (per month)

S.No

1
2
3
4
5

Description

Postage & Stationery Expenses

Transportation Expenses
Advertisement Expenses
Consumeble Stores
Miscellaneous Expenses
Total

Amount Rs.

200
1000
500
100
200
2000

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Project Profiles

v. Total Working Capital (per month)

S.No

1
2
3
4
5

Description

Amount Rs.

Rent
Salaries and Wages
Raw Material
Utilities
Other Expenses
Total

2000
15400
113000
1300
2000
133700

8. COST OF PRODUCTION (PER ANNUM)

S.No

1
2
3

Description

Total Working Capital

Depreciation
Interest
Total

Amount Rs.

@
@

1604400
9150
15343
1628893

15%
12%

9. TURNOVER (PER YEAR)

S.No

Description

Hawai Chappals
Total

Unit

Qty.

chappals 130000

Rate Rs. Amount Rs.

13

1690000
1690000

10. FIXED COST (PER YEAR)

S.No

1
2
3
4
5

Description

Depreciation
Interest
Rent
Salaries & Wages
@
Other Expenses incl. Utilities @
Total

Amount Rs.

9150
15343
24000
73920
15840
138253

40%
40%

11. PROFIT ANALYSIS & RATIOS

1
2
3
4

Net Profit
Percentage of Profit on Sales
Percentage of Return on Investment
Break Even Point

Rs.

61107
4%
31%
69%