BHAVAN’S COLLEGE

T.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 women
Ladies denim capree
Trousers 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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