Sagar Project 1

Denim.com Jeans Smt.M.T.
Dhamsania
Product Project Report on

Denim.com Jeans
Prepared by
MILAN GAJERA D.
Class
BBA SEM-2
Roll no: 18
Year : 2021-2022
Submitted to
Smt.M.T.Dhamsania College
Of Commerce & B.B.A.
RAJKOT
Guided By
Prof. Dr. Haresh B. Vaishnani
1
Denim.com Jeans Smt.M.T.Dhamsania
Declaration
I undersigned, Mr. GAJERA MILAN D., student of BBA sem-2, declare that the
product project report (p.p.r) is my own work and has been carried out under the guidance of
prof. HARESH VAISHNANI of Smt.M.T.Dhamsania commerce & BBA college.
Further, I declared that this report is not submitted to any other university for appearing
any examination.
Date: 16-04-2022
Place: RAJKOT
Signature
( MILAN GAJERA)
2
Preface
For socio economic growth and balanced structural development, small- scale industries
are a very important tool. It is considered highly for the creation of employment opportunities as
well as development of entrepreneur skills. The better use of scarce financial resources and
appropriate technology is also ensuring by the small-scale industries.
In the growth rate of the country, the small scale industries give vital contribution.
Therefore it is essential to understand management
3
INDEX
SC.NO PG NO.
PARTICULARS
1. INTRODUCTION 6
2. PROJECT AT GLANCE 7
3. MANAGEMENT SET UP 8
4. IMPLEMENTATION SCHEDULE 10
5. ORGANIZATION STRUCTURE 11
6. JUSTIFICATION OF LOCATION 12
7. DETAILS OF PRODUCT 14
8. IMAGE OF PRODUCT 15
9. RAW MATERIAL REQUIREMENT 17
10. MANUFACTURING PROCESS 18
11. PRODUCTION PROCESS 19
12. PRODUCTION CAPACITY 22
13. HOW IS DENIM FABRIC USED ? 23
14. TIME KEEPING SYSTEM 24
15. QUALITY CONTROL 25
16. MARKET PLANING 26
17. DISTRIBUTION CHANNEL 27
18. MARKET POTENTIAL 28
19. PRICING POLICY 29
20. SALES PROMOTION STRATEGY 31
21. STAFF & LABOUR DETAIL & WAGES AND SALARY DETAIL 32
22. PRODUCTION CAPACITY SCHEDULE 33
23. SOURCE OF FINANCE 35
24. DEPRECIATION 37
25. PROFITABILITY 39
26. BREAK EVEN ANALYSIS (UNIT) 42
27. BREAK EVEN ANALYSIS (RUPEES) 43
4
28. COST SHEET 45

29. TRAINING & PROFIT AND LOSS A/C. 46
30. BALANCE SHEET 48
31. RISK FACTOR 50
32. FUTURE PLAN 51
33. CONCLUSION 52
5
INTRODUCTION
In today’s era where global competition exists, there is a need for

professional management in every sector. Hence, the economists always say that the
S.S.I. is the only base or pillar of the Indian Economy. Most of the businesses
carried out in India are on a small scale.
The S.S.I. is enjoying the success of department economy because it is the
main part of the economy. It also provides the platform and opportunity to the new
entrepreneur. It provides the employment opportunities, raw material or inputs to large
scale and middle scale industries.
S.S.I. is the base for the middle and large scale industries. It also gives a
chance to new entrepreneurs to start a unit with a limited capital and it would
ultimately play a major role in sharing the development of the company.
The S.S.I. makes the perfect entrepreneurs through experience and

provides high quality of development towards personality, skill and sense.
6
Project At Glance
Name of unit “ DENIM.COM”
Communication Address “DENIM.COM
c-263 Lodhika GIDC
Metoda , Rajkot
Type of organization Partnership firm
Size of organization Small Scale Industry
Partners 1. Nayan Patel

2. Sagar Patel
Brand of the Product Jeans
S.S.I. Registration No. Application has been Made
Subsidy Registration No. Application has been Made
Budgeted cost of Project 72,00,000
Means of Finance Owned Capital and Loan from SBI Bank

Rajkot.
No. of Employees 37
Plant Installed Capacity 97 %
7
Management setup/biodata
Partner - 1
Name : NAYAN PATEL
Age : 22
Address : VARACHA
SURAT -395003
Contact : 96032XXXXX
Email : nayanpatel20@gmail.com
Academic
Qualification : BBA (Finance)
Role in Unit : He is a accountant with leadership

quality who will look after marketing & trade setting
Experience : 3Year
Financial contribution : 40%
8
Partner - 2
Name : Sagar Patel

Age : 27
Address : Mohan nagar, Amreli-

365601
Contact : 93286XXXXX
Email : sagarmetaliya2002@gmail.com
Academic
Qualification : B.B.A. , M.B.A. (HR)
Role in Unit : He will look after owner and Human Resource Management
Personnel Experience: 06 year of experience in accounting
Financial
Contribution : 60%
9
Implementation Schedule
No. Particular Days
1. Acquisition of land and building 13 Days
2. Arrangement of Power 12 Days
3. Acquisition of Machinery 75Days
4. Installation of Machinery (including trial runs) 18 Days
5. S.S.I. Registration 36 Days
6. Financial Arrangement
For Machinery 16 Days
For Others 5 Days
7. Staff Appointment 15 Days
TOTAL 190 Days or 6

months approx.
As many of the above activities are practically carried on simultaneously at a time all
average a period of 6 or 7 Months will be required to install and implement this project in its
totality.
10
ORGANISATIONAL STRUCTURE
11
Justification of location
This unit will be situated at C- 263 Lodhika G.I.D.C. Metoda Therefore all the benefits,
which are attached with the Rajkot city, will be available to unit. The second benefit is that
Lodhika G.D.I.C. is concerned with Industrial Zonal Area and Government of Gujarat is
continuously trying to mobilize industrialization in this area. Here, all types of facilities like
water supply, electricity, infrastructure, communication etc are easily available at reasonable
rate.
The various factors considers for selection of proposed location are as follows.
1. Supply of raw material
Raw material is the basic input, which must be given equal importance. The most
of raw material is made available from SURAT.
2. Availability of labors
Availability of labor influences the selection of location. Unit requires
12
both semiskilled and skilled labors. Both types of labors can be made available from the
local are so availability of labors never creates problem.
3. Transportation facilities
Transportation is required for assembling of raw material and distribution of
finished product. As most of the raw materials are supplied from SURAT. It is to carry
out it by transportation vehicle. For the distribution of the finished product; rickshaw,
matador and trucks will be used. As the product is of lightweight and not of costly nature,
it will not require any special type of transportation facilities. All transportation facilities
are available from Rajkot.
4. Land
The basic necessity for each and every industry is land. Without land no industry
can be come into existence. In the Lodhika G.I.D.C. land is available at subsidized rate
by government of Gujarat.
5. Power, water supply and other facilities
As LODHIKA G.I.D.C. is declared as industrial zone by the government of

Gujarat, the state government provides, water, power and other facilities like road, shed
etc at cheaperrates.
13
Product Information
 Product: -
The product that our firm is going to manufacture is, Jeans.
 Brand: -
The brand name of our product is “ Denim jeans”.
 Type of product: -
1. Regular fit jeans

2. Skinny fit jeans
3. Tapered fit jeans
4. Narrow fit jeans
5. Relaxed fit jeans
14
15
16
Raw material requirement
Raw material is a basic need of each & every industrial unit. This, it is necessary have
proper availability of raw material in proper quantity required and at proper time is an
important factor.
A raw material or feedstock is something that is acted upon or used by

human labor or industry, for use as the basis to create some product or structure. Often the term
is used to denote material that came from nature and is in an unprocessed or minimally processed
state. Raw material is the most basic requirement for production. The selection of raw material
should be perfectly done because the quality of final product highly depends on raw material
which is used in production.
The main raw materials required to produce the Jeans are Denim & cotton
clothes, thread, button, rivet, zip, stickers etc. are obtained from Delhi, Mumbai, Ahmedabad and
Sirmour. It takes time to purchase the raw materials so the order of raw materials is given huge
quantity so that there is smooth flow of production.
17
PRODUCTION PROCESS
DENIM.COM JEANS produce the jeans in the following steps:
18
FOLLOWING ARE THE STEPS OF THE

PRODUCTION PROCESS OF JEANS IN DETAIL:
1. Cutting
DENIM.COM JEANS uses computerized machine to cut the
Jeans. First of all the designer give the programmed of all detail about Jeans, which include size
& shape in computer. In the computer arrange the machine’s part for the cutting and the cutting
man put 10 pieces of clothes under cutting table then he starts the machine to cut the entire cloth
into needed pieces when all the pieces of cloth are ready for the over lock process.
2. Over Lock
The over lock knight the cloth border so that cloth can’t be scattered. In the
process of over locking the machine operator over lock the needed pieces of cloth for stitching.
3. Embroidery Work
19
The DENIM.COM JEANS use the computerized embroidery
machine for the embroidery work. The designer gives the programme in computer and makes
article design in cloths.
4. Stitching
The stitching of Jeans is divided into 20 parts of work division
among the 20 machines. In this process the Jeans is to be stitched through 10 chain stitch
machines and 10 simple stitch machines. The machines are arranged according to the stitching
process. There are 3 departments of the Jeans stitching. Finally, Jeans go for the further
production process.
20
5. Fitting
Fitting means to attach the button and make button holder
through the machine in the Jeans. After if the Jeans go for the rivet attach in the machine and
then they are ready for the acid wash.
6. Washing
After fitting the Jeans waterman wash the Jeans in acid and
detergent powder in the washing machine and dry it in a drier and then Jeans are ready for the
ironing.
7. Ironing
After washing all the Jeans ironed through big electric iron it is
ready for the fold.
8. Folding
All the Jeans goes into the folding machine and the machine
operator fold it according to the Jeans fold style and it goes for packaging.
9. Packaging & Storing

After folding the Jeans are packed into the poly bags and paper boxes then
store into the finished goods storage.
21
PRODUCTION CAPACITY
Particular Per Per Per

Day Month Year
Installed 250 7500 90,000

Capacity Jeans Jeans Jeans
Utilized 125 3750 45,000
Capacity Jeans Jeans Jeans
Utilized 50% 50% 50%
Capacity
(%)
No. of 1 Day 25 300
working Days Days
days
No. of 1 25 300
Shifts Shift Shifts Shifts
No. of 8 200 2400
working Hours Hours Hours
Hours
22
How is Denim Fabric used ?
FOR APPAREL
- Common use include jeans, skirts, shirts and vests.
FOR ACCESSORIES
- Used in belts, shoes, purses and hats.
FOR HOMEWARE
- Denim is often found in drapes/ curtains, upholstery, blankets/duvets and pillows.
23
Time keeping system
The timing of the work is as below:
For officers : 8:00 am to 12:45 pm
12.45 pm to 2:00 pm Break
2:00 pm to 6:30 pm
For workers : 8:00 am to 12:00 pm
12:00 pm to 1:50 pm Break
1:50 pm to 7:00 pm
24
Quality Control
In addition to the initial checks to make sure the product meets specifications,
other quality control checks are made. For example, line inspectors watch the bottles at specific
points on the filling line to make sure everything looks right. They notice things like fill levels,
label placement, and whether the cap is on correctly. The product is also routinely checked to see
if there has been any microbial contamination. This is done by taking a bottle off the filling line
and sending it to the QC lab. Here, a small amount of the shampoo product is smeared onto a
plate and inoculated with bacteria and other organisms to see if they grow. Additionally, the
packaging is also checked to see if it meets specifications. Things such as bottle thickness,
appearance, and bottle weight are all checked.
25
Market potential/planing
The product has been traditionally made by our ancestors and was widely used before the
advent of chemical or syntactic over periods of time consumer have become aware of advantage
of using shampoo made form herbal unlike syntactic chemical shampoo There is absolutely no
side effect of using herbal shampoo hence there is growing demand for such herbal product in
urban and semi urban area. It the product is alternatively packed given some publicity distributed
and price competitively the shampoo will have a good and growing demand.
For distribution of our products to our valuable customers we have not to chosen any
complex channel but we have adopted one level channel involving only one intermediary i.e.
retailers. This is only to ensure the availability of our products on demand. Due to adoption of
such type of channel we have been able to change reasonable price for our product as it is well
known that every new addition in channel costs something extra to its ultimate customer.
26
Distribution channel
27
Competitor and there strategy
 Mafatlal jeans
 Levi’s
 Tommy hilfiger
 Lee
 Diesel
 Blue buddha
Above all company have a competitor of the firm
They all multy branded company so they promote there

product in multy level.
We remain continuously in touch with the current trends introduced in foreign markets so
that we can give totally new designs to home market.
Ours is a business of heavy competition, but we manage it by remaining in touch with the
current trends in the fashion in our market area. Advertising is also a helping factor to face the
competition and to maintain our market.
28
Pricing policy
Pricing is a very important for the product selling in the market. Because pricing is decide the
profit of the company. When company start new he show low profit margin because he want the
promote the product but after he want high profit marine so he increase the price of product.
Also pricing is decide through cost benefit. Because cost is very important so pricing decide
with the cost recover and profit
In any organization pricing policy is decided by the organization general manager or

marketing manager.
In short,
Price= cost + profit
While setting the price, the firm may aim at the following objectives
 Profit Satisfaction
 Sales Maximization and Growth
 Making Money
 Preventing Competition
 Market Share
 Survival
 Market Penetration
 Marketing Skimming
 Early Cash Recovery
 Satisfactory Rate of Return
29 29
Promotion strategy
1. Advertisement
Advertisement is very important for promotion so firm use best strategy through
advertisement.
2. Sales promotion
Sales promotion also a promotion strategy so it is very useful for promote the
product.
3. Personal selling
Personal selling is very useful when product is new in the market so personal selling is
very useful and important to promote the product.
29 30
• Types of Sales promotions / Sales promotion techniques.
Below is some of the most common type of sales promotion techniques used across all industries.
 Discounts – Trade / consumer

 Gifting
 Coupons
 Financing
 Sampling
 Bundling
 Contests.
 Refunds &
Rebates
 Exchange offers
 Free trial
 Email Marketing
31
Staff & labour detail,& Wages and salary details.
Sr. Particulars No. of Rate Amt. Amt.

Person (per (p.a.)
No.
Month)
1 Supervisor 5 5000 25,000 3,00,000
2 Accountant 2 6000 12,000 1,44,000
3 Computer 5 8000 40,000 4,80,000
Operator &
Clerk
4 Unskilled 12 4000 48,000 5,76,000

Worker
5 Salesman 8 5000 40,000 4,80,000
6 Peon 3 2000 6,000 72,000
7 Watchman 3 2000 6,000 72,000
TOTAL 37 1,77,000 21,24,000
32
Production Capacity Schedule
(1) Installed Capacity: -
The install capacity of the firm is following Total 25kg/hr

The yearly capacity
25*2400=60,000 kg
(2) No. of Shifts Per Day: -

3 Shift.
(3) No. of Working Hours Per Shift: -

8 Hours.
(4) No. of Working Days in a Month: -

26 Days.
33
(5) No. of Working Days in a Year: -
285 Days.
(6) No. of Working Hours in a Year: -
2280 Hours (8 hrs. × 285 days)
(7) Working days in a Week: -
6 days
34
Sources of finance
No. Description Amount
1. Owned Capital 50,00,000
2. Borrowed Capital 22,00,000
Total 72,00,000
Partners Capital
1. Nayan Patel (40%) 20,00,000
2. Sagar Patel (60%) 30,00,000
Total 50,00,000
35
Borrowed Capital
1. SBI. Bank Loan 22,00,000
Interest on capital
No. Description Rate Amount
1. Owned Capital 10% 5,00,000
2. Borrowed Capital 13% 2,86,000
Total 7,86,000
36
Depreciation
Sr. No. Particulars Rate of Depreciation Amount
(a) Building 10% 1,80,000
(b) Furniture & Fixture 10% 35,000
(c) Plant & Machinery 10% 50,000
(d) Computers 10% 25,000
(e) Other Equipments 10% 10,000
TOTAL DEPRECIATION 3,00,000
37
Detail of Fixed Assets
No. Particular Amount Amount
1. Building 18,00,000 36,00,000
2. Machinery 24,00,000 22,00,000
3. Furniture 2,00,000 3,00,000
38
Profitability
Profit & Loss account shows profit standing of company and Balance Sheet shows
financial position of the company. Any company cannot survive without making profits as it is
it’s the soul goal.
Sales 45,00,000
Less- variable cost 12,00,000
Contribution 33,00,000
Less- fixed cost 8,00,000
EBIT 25,00,000
Less- interest 2,50,000
EBT 22,50,000
Less- tax 2,70,000
EAT 19,80,000
39
1. Gross profit ratio
= Gross profit *100
Sales
= 6,00,000 * 100
45,00,000
= 13.33%
40
2. Net profit ratio
= Net profit * 100
Sales
= 18,43,000 * 100
45,00,000
= 40.96%
41
Break even analysis (unit)
= fixed cost
Contribution
= 8,00,000
250
= 3200 unit
42
Break even analysis(rupees)
= fixed cost * 100

Profit value ratio
Profit value ratio
= Contribution * 100
Sales
= 40,00,000 * 100
45,00,000
= 88.89%
43
= fixed cost * 100

Profit value ratio
= 8,00,000 * 100
88.89
= 8,99,988.75 RS.
44
Cost sheet
Particular 2020-21 2021-22
Printing & Stationary 10,000 12,000
Audit Fees 15,000 20,000
Legal Charges 1,00,000 80,000
Bank Charges 10,000 5,000
Salary 1,77,000 3,50,000
Repair and maintain expenses - 70,000
Advertisement 50,000 60,000
Postage & Telegram 20,000 30,000
Commission 25,000 35,000
Interest 60,000 70,000
Insurance 1,00,000 80,000
Employee Benefit 40,000 50,000
Loss by Theft 3,00,000 -
TOTAL 9,07,000 8,62,000
45
Trading & profit and loss a/c.
TRADING A/C
Particulars 2020-21 2021-22 Particulars 2020-21 2021-22
Opening Balance 24,00,000 28,00,000 Sales 45,00,000 50,00,000

Purchase 25,00,000 30,50,000 Closing Stock 5,00,000 6,50,000
(-)Purchase Returne (2,50,000) (4,00,000)
Customeduty 3,00,000 3,00,000
Royalites 2,00,000 3,00,000
Other Direct 7,50,000 6,00,000
Expenses
Gross Profit 6,00,000 5,00,000

Total 50,00,000 56,50,000 Total 50,00,000 56,50,000
46
PROFITE & LOSS A/C
Particulars 2020-21 2021-22 Particulars 2020-21 2021-22
Salary 1,77,000 3,50,000 Gross Profit 6,00,000 5,00,000

Postage & Telegram 20,000 30,000 Commission 10,00,000 12,50,000
Received
Advertisements 50,000 60,000 Interest 7,00,000 8,00,000
Received
Printing & 10,000 12,000 Royalty 4,00,000 5,00,000
Received
stationery
Legal Charges 1,00,000 80,000 Sundry Income 3,50,000 5,00,000
Insurance 1,00,000 80,000
Interest 60,000 70,000
Bank Charges 10,000 5,000
Audit Fees 15,000 20,000
Employee Benefit 40,000 50,000
Commission 25,000 35,000
Repairs & - 70,000
Maintenance
Net Profit 18,43,000 27,68,000

Total 30,50,000 35,50,000 Total 30,50,000 35,50,000
47
Balance sheet
Balance sheet
Particulars 2020-2021 2021-2022
LIABILITIES
Owner's Capital 50,00,000 41,00,000
TDS Payable 8,00,000 9,00,000
Profit and Loss

appropriation 13,50,000 9,45,000
Creditor 14,00,000 19,00,000

Current Liabilities 12,50,000 15,00,000
Unsecured Loan 7,50,000 8,00,000
General Reserve 10,00,000 9,50,000
Bills Payable 7,00,000 9,00,000
Reserves and Surplus 6,00,000 4,50,000
TOTAL 1,28,50,000 1,24,45,000
ASSETS
Building 40,00,000 36,00,000
Machinary 24,00,000 22,00,000
Bank 21,00,000 17,00,000
Debtors 12,00,000 15,00,000
Goodwill 3,50,000 6,00,000
Duties & Texes 3,00,000 1,45,000
48
Investment 8,00,000 7,00,000

Cash 15,00,000 17,00,000
Furniture 2,00,000 3,00,000
TOTAL 1,28,50,000 1,24,45,000
49
RISK FACTOR
In each & every business activity, there are some hindrances risk, uncertainties etc.
which the Co. has to face and overcome them. Risk factor means those factors which created
hindrances in the growth of the Co. and also its development. These factors act as challenges or
threats to the Co. for its product. Thus, maximum care must be taken into consideration by
promoting the Co.
At present there is a high competition in the market. Many national & multinational Co.’s
enjoy a good market share in the urban areas & rural areas. Some of the risk factors of our unit
are as follows:
(1) As our product is under the list of F.M.C.G. items so if license is not provided & also the
govt. authority within specific time, it is difficult to start the production.
(2) There is also possibility that the loan amount necessary is not obtained from bank.
(3) In near by future there will be cut-throat competition in the market and it may be
difficult to continue the business.
50
Future Plan
Every units airs at its growth and development in future at the time of establishment.
The future development of any unit shows its success in the market. Future development may be
get through the increasing installed capacity or utilizing the existing resources of the unit to the
full extend.
So far as our unit is concern we have to utilize fully the available resources of our unit
and by increasing production capacity we want to cover none market share with maintenance of
good quality.
There are so many varieties of shampoo in the market. The consumption of shampoo
has been increasing over the year. We wants to cover more market in rural as well as in urban
areas.
Looking to this good prospect I select the product of herbal shampoo. It is for medium
clays people as well as poor class people also.
51
CONCLUSION
As a part of E.M.S.B.Subject, after preparing this product project report, I can conclude
that , this product has such characteristics which build the power to explore new market
boundaries because it is of general use at every place. Proper planning & management will
definitely up bring this product & hence, it will contribute at some or the other extent to the
saving of ir-reversible & exhausting resource.
At last it can be said that future of this product is very bright.
52
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Denim.com Jeans Smt.M.T.

Product Project Report on

Prof. Dr. Haresh B. Vaishnani

28. COST SHEET 45

In today’s era where global competition exists, there is a need for

The S.S.I. makes the perfect entrepreneurs through experience and

Name of unit “ DENIM.COM”

Communication Address “DENIM.COM

c-263 Lodhika GIDC

Type of organization Partnership firm

Size of organization Small Scale Industry

Partners 1. Nayan Patel

Brand of the Product Jeans

S.S.I. Registration No. Application has been Made

Subsidy Registration No. Application has been Made

Budgeted cost of Project 72,00,000

Means of Finance Owned Capital and Loan from SBI Bank

Plant Installed Capacity 97 %

Name : NAYAN PATEL

Role in Unit : He is a accountant with leadership

Financial contribution : 40%

Name : Sagar Patel

Address : Mohan nagar, Amreli-

Personnel Experience: 06 year of experience in accounting

No. Particular Days

1. Acquisition of land and building 13 Days

2. Arrangement of Power 12 Days

3. Acquisition of Machinery 75Days

4. Installation of Machinery (including trial runs) 18 Days

5. S.S.I. Registration 36 Days

For Machinery 16 Days

For Others 5 Days

7. Staff Appointment 15 Days

TOTAL 190 Days or 6

5. Power, water supply and other facilities

As LODHIKA G.I.D.C. is declared as industrial zone by the government of

The product that our firm is going to manufacture is, Jeans.

The brand name of our product is “ Denim jeans”.

1. Regular fit jeans

Raw material requirement

A raw material or feedstock is something that is acted upon or used by

FOLLOWING ARE THE STEPS OF THE

The DENIM.COM JEANS use the computerized embroidery

9. Packaging & Storing

Particular Per Per Per

Installed 250 7500 90,000

How is Denim Fabric used ?

Time keeping system

The timing of the work is as below:

For officers : 8:00 am to 12:45 pm

12.45 pm to 2:00 pm Break

For workers : 8:00 am to 12:00 pm

12:00 pm to 1:50 pm Break

Competitor and there strategy

Above all company have a competitor of the firm

They all multy branded company so they promote there

In any organization pricing policy is decided by the organization general manager or

Price= cost + profit

 Sales Maximization and Growth

 Early Cash Recovery

 Satisfactory Rate of Return

• Types of Sales promotions / Sales promotion techniques.

 Discounts – Trade / consumer