PROJECT PROFILE

PRODUCT/PROJECT: GARMENT

CAPITAL INVESTMENT:

RS

812200

MONTH AND YEAR OF PREPARTION MARCH 2011

PREPARED BY:

UMAKANTA NAYAK GLOBAL INSTITUTE OF MANAGEMENT BHUBANESWAR, ORISSA

INTRODUCTION::

Garment is an article of clothing which covers human body. Wearing garments has become a habit to all of us in today's world. There are different kinds of material available to make a dress, attire, apparel or garments. We wear clothing primarily to protect our body from natural elements. Social reasons and functional reasons are secondary. Since the beginning of mankind humans have used some kind of garments for their body. The archaeologists and anthropologists say that the earlier clothing was made of fur, leather, leaves or grass, draped or tied to the body. We in the modern times still drape, wrap or tie our cloths. The difference is that of different materials or fabrics we use to make our garments. There are two categories of Fabrics we use : Natural Artificial

Natural fabric is made out of : Cotton Silk Wool Fur Leather

Artificial fabrics for clothing are: Nylon

Polyester Terylene Terycot Lycra

The modern man uses different fabrics to make garments. Types of Garments: Man, woman and child use different garments. Usually men wear pants and shirts. Women wear skirts, dresses, or pants and shirts as well. In India women mostly wear sarees or Salwar Kurta. In the old days people used to stitch their cloths in the house, but now we can get readymade cloths. There is a huge market for readymade garments. You get : Men's wear Ladies wear Kids wear

MARKET DEMAND:
Kendra para districts population 1301856, and 60% people depend upon
readymade garment remain 40% making their garment in tailor..in this districts people income is different individual to individual, if measure in percentage then 15% people are richest family they require minimum 3 pair garment in a year,30% people medium family they require 2 pair minimum garment in a year,55% people are poorest family they require 1 pair minimum garment in year.

There is no garment industries in Kendra para, it depends other districts and state, mostly people are purchasing from the local market. According the following specification will have a very good demand in local market of kendrapara

Basis and presumptions:

1. The scheme is based on 12 hours per day and 336 days per

annum. 2. The cost in respect of machinery and equipment, raw materials and selling prices of the3 finished products etc .those are normally prevailing at the time of preparation of the project profile and may vary depending on various factors.

3. Minimum wages have been considered in preparation of the scheme.

4. 12% interest rate has been considered on the total capital

investment.

IMPLEMENTATION SCHEDULE:
1. Preparation of project profile and registration With 1 month 2. Selection 1 month 3. Availability 3 month
4. Machinery

D.I.C of of procurement, of site finance installation staff

1 month 5. Recruitment 1 month 7 months

Process of garment
There are four major kinds of textiles processing .fiber processing yarn processing. Fabric processing and garment processing. Garment processing has grown to a to great extent during the past few years, this growth can be attributed mainly to the denim garment, which is the largest garment segment today. Garment finishing is mainly through wet processing .garments are dyed for imparting color of them .proper finishing can provide a better look to the apprarel, change the feel and texture of the fabric ,and can also9 add value to the product .various types of finishes are given to the garment .which include peach finish, antimicrobial finish, wrinkle finish, aroma finish ,UV guard finish,

acid wash, enzyme wash, moisture management, laser coating etc.the factor to be considered while processing include the choice of chemicals, production limitation and types of machinery used .usually garment processing is done on small scale which minimize the damages risk. if some changes are to be made or the process of finishing has to be replaced ,it could be done easily in small scale productions.

Quality control
For every industry or business, to get increased sales and better name amongst consumers and fellow companies it is important to maintain a level of quality There are a number of factors on which quality fitness of garment industry is

based such as - performance, reliability, durability, visual and perceived quality of the garment. Quality needs to be defined in terms of a particular framework of cost. The national regulatory quality certification and international quality programmers like ISO 9000 series lay down the broad quality parameters based on which companies maintain the export quality in the garment and apparel industry. Here some of main fabric properties that are taken into consideration for garment manufacturing for export basis: . Overall look of the garment. . Right formation of the garment. . Feel and fall of the garment. . Physical properties. . Color fastness of the garment. . Finishing properties . Presentation of the final produced garment.

Pollution conrol
As this product is manufactured from cloth there is no pollution problem involved.

Production Target (p.a) item Shirts Pant s 5376000 quantity 10080 6720 rate 300 350 value 3024000 2352000

FINANCIAL ASPECTS: Land -1500sq.ft

Building and raw materials and storing-700 sq.ft. Own

FIXED CAPITAL
MACHINARY VALUE IN RS Sew machine 200000 Zig zag machine 60000 Button machine 160000 Fan 10000 430000 QUANTITY 20 4 1 10 RATE 100000 15000 160000 1000

FURNITURE

Table
31500 Chair 6600 38100 PRE-OPERATIVE RUPEES Preparation 300 Telephone 1500 Electricity 2000 Travel 7000 Stationary 500 Other 500 11800 miscellaneous and of

21 22

1500 300

EXPENDITURE project profile connection installation miscellaneous expenditure

expenditure

FIXED CAPITAL=430000+38100+11800=479900 WORKING CAPITAL ANALYSIS (PER MONTH)

RAW MATERIALS RATE Shirt clothes .45 QUANTITY VALUE 184800cmtrs 84000 0

Pant clothes 1.33 Needles 5 Threads 2 173800

67200cmtrs 89600 20 100 50 100

STAFF AND LABOR PAYMENT Supervisor 10000 Skilled worker 6000 Un skilled worker 3500 Accountant 4000 Watch man 3000 151000 1 10000 20 120000 4 14000 1 4000 1 3000

OTHER Rs
Tele 500 Stationary 500 Travel 5000

EXPENDITURE(PER

MONTH)
phone

and

transport

Electricity 1500 7500

bill

WORKING CAPITA =173800+151000+7500=332300

(P.M)

TOTAL CAPITAL INVEST MENT: FIXED = 479900 WORKING = 332300 812200 CAPITAL CAPITAL

COST RS
Recurring 3987600 Depreciation 43000 Depreciation 7620 Interest 97464 4135684 on on

OF

PRODUCTION(P.A)
expenditure

on furniture total capital

machinery

@10% @20%

investment

@12%

TURN OVER (P.A)

PROFIT=RS 5376000-4135684=1240316 NET PROFIT RATIO = PROFIT X 100 = 1240316 X 100 =23.07% TURN OVER 5376000

RATE OF RETURN = PROFIT X 100 = 1240316 X 100 = 152.7% INVESTMENT 812200

BREAK EVEN ANALYSIS

FIXED COST Depreciation 43000 on machinery @10%

Depreciation 7620 Interest 40610 40% 724800 40% 36000 852030 on

on total

furniture capital investment

@20% @5% salary

other

expenditure

BREAK EVEN POINT:

Fixed Cost FC+Profit

X 100 = 852030 x 100 852030+1240316

= 40.72%

Manufacturer
Some of the Garments Manufacturers and suppliers:
Subhadrea Exports- ladies fashion knitwear. Hindutch Overseas Limited- exporter and wholesale supplier of leather garments. Triglobe Designs and weaves-exporter of woven fabrics and garments. Anand International, Mumbai-ladies apparel, readymade garments. Shikhit Exports,Delh-exporter of ladies embroidered garments