ENTREPRENEURSHIP PROJECT

REPORT
{ NOTT }

Submitted to :- Submitted By :-

Dr. Sunil Luthra (Astt. Prof.) Sushil Kumar(8716352)

Mechanical Dept. Lalit Rohilla (8716320)
Avninder Singh(87175305)
Vineet Kumar (87175323)
Company Name –

NOTT (None Other Than This)

LOGO -
1. Objective of Report
For the overview on all the aspects coming in the way
of setting up a new industry of normal use slippers for
ladies and gents.

2. Promoter’s Profile

1. Sushil kumar
Qualification – b.tech mechanical engineering
Project related experience – visited to Krishna
chappals pvt. Ltd. Bahadurgarh
Not having any past experience

2. Vineet kumar
Qualification – b.tech mechanical engineering
Project related experience – visited to krishna
chappals pvt. Ltd. Bahadurgarh
Not having any past experience
 3. Lalit Rohilla
Qualification – b.tech mechanical engineering
Project related experience – visited to krishna
chappals pvt. Ltd. Bahadurgarh
Not having any past experience

4. Avninder singh
Qualification – b.tech mechanical engineering
Project related experience – visited to Krishna
chappals pvt. Ltd. Bahadurgarh
Not having any past experience

3. Location and Building

Plot no. 634, lajwana khurd, julana, jind-126101

300 sq. feet plot
4. Machinery

A 2 hp power press sleeper making machine, sole

cutting machine.
5. Production Process
NOTT Chappal upper straps are cut by
hand/machine out of goat and sheep skins of bark
turned leather and the laces/thongs. The upper
components are then skived by upper skiving
machine provided to obtain uniformity in thickness
and ensure quality. - The cut -out laces are supplied
to outside parties for weaving. pleated ready laces
are fitted to the uppers along with other preliminary
operations such as instep strap fitting, stiching,
decorative creasing, punching, gimping, pinking, etc.
finally as the upper components such as studs.,
flowers and other fittings, link loops etc. are
assembled and fitted and the prick marks done on
uppers. Thus, the uppers, ready for fitting between
the top and bottom soles, are fitted in the slots
marked on the top sole; and the finishing done by
hand/machine. Then, they are paired sized and
packed.

QUALITY SPECIFICATION
At present, no quality specification are available for
NOTT Chappal . But for export orders, specifications
are provided by the buyers only. Uppers and soles
should be made of good quality Bark tanned leather
in order to have uniform colour. Care should be
 taken to click the right components from the right
portion of the leather. Before taking different
components to the closing section, inspection is to
be done to ensure quality. Good quality adhesive is
to be used to ensure a proper bond between
different components

6. Raw Materials
1. Rubber sheet for sole
 2. Different colour straps according to sole

7. Market Potentials
Footwear industry in India has been identified as thrust sector
for export production endowed with rich cattle wealth, century
old tradition of leather making skills and backed up by the most
modern facilities. Indian Leather Footwear Goods ,has over the
years acquired a significant place in the world market. Today
some 120 Countries import Indian Leather Footwear and Leather
goods. Besides internal demand of leather products, the country
has traditionally Remained as an exporter of leather goods,
leather footwear. Of latae, however, the internal-demand has
shown a rising trend. The Leather Sector occupies a prominent
position in export profile of India.. In fact, this is one important
 industry where there is immense potential for growth and value
addition. India has been steadily transforming its traditional
leather industry in the past two Decades into a modern industry.
There is beter application of new technologies for producing
elegantly designed wide range of. footwear maintaining high
standards and better design elements. It is expected that some
units can be motivated to start the production of NOTT Chappals
to meet the export demand.

8. Personnel
Personnel(Administrative and Supervisory) per month

SI. Designation No. Salary Total (Rs.)

No. @ Rs.
01 Manager cum Designer 1 25,000 25,000
02 Supervisor 1 21,000 21,000
03 Accountant cum Clerk 1 15,000 15,000
04 Peon-cum-Watchman 1 7,500 7,500
05 Skilled Worker 10 12,000 12,000
06 Semi-Skilled Workers 4 9,000 9,000
07 Helper-Part Time 2 4500 4500
08 Chowkidar/Peon 1 7,500 7,500
Total 2,41,000
Perquisites @ 20% 48200
Grand Total 2,89,200
 9. Financial Implication

FIXED CAPITAL
Land & Building Rented

Covered Area 100 Sq. Mtr. Rs. 3000/- per month.

1. MACHINERYAND EQUIPMENT

Sl. Machinery & IMP./ QTY. RATE Value

No Equipments IND. (Rs.)
.
01 Upper Strap Cutting Ind. 4 25,000 100,000
Machine (For Lace
Cutting)
02 Bottom Components Ind. 4 5,000 20,000
Cutting Machine
(Power operated)
03 Rolling Machine Ind. 4 5,000 20,000
(Power operated)
04 Weighing Machine Ind. 1 10,000 10,000
05 Tools & Equipments 10,000 10,000
06 Office Equipment 30,000 30,000
07 Installation @ 10% 28,000
08 Cost of Dies Ind. 18 3,00 54,00
09 Spare Parts on 44680
Imported Machine
@ 20%
 Sub- Total(A) 268080
15% Pre-operative
Expenses (B) 40212
Total A+B 308292
Total Fixed Capital Rs. 311292/-

WORKING CAPITAL PM;

Rubber Sheet Rs 540 per sheet or 540 per 20 pairs

Straps Rs 5 – 7 per pair

Other Contingent Expenses (P.M.)

Sl.No. Description Value (Rs.)

1. Rent 3,000
2. Postage & Stationery 2,000
3. Transport charges 4,000
4. Telephone 2,000
5. Repair & Maintenance 1,000
6. Advertisement & Publicity 3,000
7. Insurance 2,000
8. Misc. Expenses 1,000
Total: 18,000
iv) Total Recurring Expenditure (P.M.)

Sl.No. Description Amount (Rs.)

1. Personnel 2,89,200
2. Raw Materials per 100000 pairs 27,00,000
3. Utilities 7,500
4. Other Contingent Expenses 18,000
Working Capital Per Month 30,14,700
Total Working Capital for 3 months : Rs.
90,29,400 (6,39,100x 3)

TOTAL CAPITAL INVESTMENT

Sl. No. Description Amount (Rs.)
1. Fixed Capital 3,11,292
2. Working Capital for 3 months 90,29400
Total: 93,40692

MACHINERY UTILISATION

The machinery utilisation will be the 60% during the first year of its
production and will be reach 80% by the third year.
 FINANCIAL ANALYSIS

i) COST OF PRODUCTION

SI.N Description Amount (Rs.)

o.
1. Total Recurring Expenditure per year 3,61,76,400
2. Depreciation of Machinery & Equipment @ 10% 31,130
3. Depreciation on Office equipment @ 20% 6,000
4. Interest on total Investment @ 12% 11,20,883
5. Depreciation on tools & equipment @ 20% 2000
6. Depreciation of Dies @ 20% 1080
Total: 3,73,37,493

TURN OVER (PER ANNUM)

SI.No. Description Qty. Pcs. Rate @ Value(Rs.)
1. Chappal 1200000 pairs Rs.40/pair 4,80,00,000

Total: 4,80,00,000

NET PROFIT PER ANNUM

Annual Turnover- Cost of Production :

Rs. 4,80,00,000 -3,73,37,493= Rs. 1,06,62,507/-

3) NET PROFIT RATIO
Net Profit x 100
Turn over per annum = 10662507x 100 = 22.21%
48000000

RATE OF RETURN
Net Profit x 100 = 10662507x l00 = 28%
37337493
Total capital investment

BREAK EVEN ANALYSIS

(i) Fixed Cost (Per Annum)

Sl.No Description Amount (Rs.)

.
1. Depreciation on machinery and 28,000
equipment
2. Rent for one year 36,000
3. Depreciation on Office Equipment 6,000
4. Depreciation on Tools & Dies @ 20% 3080
5. Interest on Capital Investment 1120883
6. 40% salary 1389600
7. 40% of other Contingent 86400
Expenses excluding Rent
Total 26,69,963
BREAK EVEN POINT

BEP = FIXED COST X 100

FIXED COST = PROFIT

= 2669963 x 100 = 21%

2669963 + 10662507

10. Sources of Finances

Capable enough for the all investments and the
fixed deposit but also try to get some financial
help from banks or financial Institute.

11. Transport and Communication

Contract given to the S.K. Roadlines.
At 70Rs./km.

12. Products
Ladies and Gents casual slippers