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LOCATION
The unit here mentioned will set up in a rented building. Location plays a major role in
overall output of the unit . There will not be any problems if the required power and
communication facilities are available . Then with out any doubt one can easily say that the
land selected is very suitable these type of units.
PROMOTER
Name : Smitha John
Experience : 2yrs
OTHER EXPENSES
The probable other experiences are considered in the economics of the project. They include
rent, electricity charges, transportation, communication, travelling, maintenance, postage &
stationery etc.
POWER
The total connected load required for running the unit is estimated as 10 H.P. only- single
phase.
MANUFACTURING PROCESS
The clothes are to be bought from the market. Sewing aids are to be procured.
MARKETING
The marketing of any product is the decision making factor of the existence of the unit and on
considering that the promoter has taken all the possible ways for marketing such as direct
sales and personal contacts etc. In fact the promoter had made a wide network of marketing
for the last one year and is capable for the forthcoming years also. The marketing area is
concentrated in retail shops of small towns and there are a number of dealers through which
the product can be sold. Most care will be taken in the change of fashion and trends as they
are much affected in the field of ready-made garments.
MODE OF FINACE
The promoter expects financial assistance from Dhanalakshmi Bank.
ASSUMPTION
It is assumed that there will not be any major increase in the rate of raw material and any
major changes in prices will be compensated with corresponding change in product.
CONCLUSION
On revealing the various aspects of the project and studying the financial & technical features
of the scheme it can easily be noted that the above project will be a great success. The
economics of the project is detailed as follows.
FINANCIAL ASPECTS
1 FIXED CAPITAL
1.1 Land and Building
Rented at rate of Rs. 16000 per month.
1.2 Building Works
a. Flooring with vitrified tiles 25000
b. Ceiling works 20000
c. Electrification 40000
d. Interior 300000
e. Painting 30 sqm 300 9000
Sub Total 394000
1.3 Machinery and Equipments
a. Stitching Machine 5 12000 60000
b. Overlock Machine 1 15000 15000
c. Interlock Mchine 1 15000 15000
d. Button Hole Machine 1 16000 16000
e. Scissors 5 500 2500
Sub Total 108500
1.4 Office Furniture items
a. Working table 1 10000 10000
b. Cutting table 1 11000 11000
c. Chair 6 1500 9000
d. Steel almirah 2 7000 14000
e. Glass Top Table 1 8000 8000
f. Mirror 3 5000 15000
Sub Total 67000
1.5 Electrical Appliances
a. Ceiling Fan 4 3000 12000
b. Pedastal Fan 1 4500 4500
c. Inverter 1 20000 20000
d. Iron box 1 2500 2500
Sub Total 39000
2 WORKING CAPITAL
2.1 Raw Materials
a. Stock 600000
2.2 Utilities and Other Contingent Expenses (per month)
a. Power 1500
b. Water 50
c. Stationary 100
d. Repair and maintenance 1000
e. Transportation 2500
f. Telephone 250
g. Miscellaneous 1000
Sub Total 6400
3 TOTAL CAPITAL INVESTMENTS
3.1 Land Rented
3.2 Building 394000
3.3 Plant & Machinery 214500
3.4 Working Capital 606400
Grand Total 1214900