BED SHEET WITH PILLOW COVER SET

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1 BED SHEET WITH PILLOW COVER SET PRODUCT CODE NA QUALITY AND STANDARDS There is no standard specification for the Bed sheet with pillow cover set. The bed sheets are manufactured to the customer s specification, design and style. There is some specification by the Govt. dept. like Railway, Police and Tourism etc. PRODUCTION CAPACITY 40,000 Nos. (per annum) Value Rs. 1,60,00,000/- MONTH AND YEAR May, 2014 OF PREPARATION PREPARED BY Sh. Neeraj Sharma Assistant Director (Tailoring) 1. INTRODUCTION In a well-furnished home, bed room is very important one, as a part of overall interior of a House. So a good bed cover matching with colour of the room & pillow cover is very important as a part of interior bed room. This reflects taste and status of the owner, who has spent enormous sum of money to decorate the house. So the demand of above textile product such as bed cover and pillow cover is increasing in the domestic as well export market every day. The made up products are very easy to manufacture and easily marketable. The above products have been finding acceptance due to low cost of fabrication, saving of cloth as well as saving of time. 2. MARKET POTENTIAL The demand in the market specially to cater both middle and upper class of families settled in urban areas, bed cover and pillow cover demand is increasing day by day to cater the taste of owner. The market of bed sheet and pillow cover has good scope in India and abroad. The marketing is not a problem provided the customers are made aware of the cost benefit. There is a good market in Delhi, Kolkata, Chennai, Punjab, Haryana and Andhra Pradesh. The export market for Indian bed sheet is in Germany, USA, Canada, U.K., Indonesia and Austria. There is a good demand in Government departments like Railways, Tourism, Defense and Police etc

2 Tailoring Division 3. BASIS AND PRESUMPTIONS The 250 sq. mt. covered area is required on rental Rs. 30 per sq. mt. depends upon area to area. The machinery and equipment are of a particular make and price of machines are drawn on the basis of present market rates. The working capital has been taken on 3 months basis or 75% efficiency basis. After one or two years the full capacity may be utilized. The technical staff and skilled labour of this industry is locally available. The calculation is based on bed sheet of 5 mtrs. and 1.5 mtr. for pillow cover. The unit will work on single shift basis 300 days in a year. Interest on capital investment has been 15% Depreciation has been considered as a) On plant and 10% b) On office furniture and 15% c) On other fixed 15%. 4. IMPLEMENTATION SCHEDULE First step is to get the project report prepared/revised in two weeks time. Second step is to locate the premises for factory before delivery of the machines. Third step is to get provisional registration from DIC/ Commissioner of Industries. Fourth step is to contact financial institutions for loan, if required. Fifth step is to arrange technical staff and labour for the manufacturing unit. 5. TECHNICAL ASPECTS 5.1. Process of Manufacturing In woven cotton fabric/grace fabric/ terrycot fabrics different colors and shades are available in the open market. To check unevenness of fabric and defect in color dyes, the cloth is laid on the table for visual inspection of the said defects before cutting of cloth. The fabric is then cut as per length of bed sheet and pillow cover and stitched, embroidered by stitching machines. The products are labeled, pressed and then packed in polythene packets followed by cartoon boxes for dispatch Quality Control and Standards There are a number of BIS prepared on fabrics so precaution should be taken while purchasing of raw material in fast shade and good quality

3 5.3. Production Capacity Bed Sheet With Pillow Cover Set This scheme envisages manufacturing of 40,000 Nos. Bed sheet set with pillow cover of different design and shade Motive Power 2 kw 6. FINANCIAL ASPECT 6.1. Fixed Capital Building: Covered area of 250 sq. meters on rent Machinery and Equipments Particulars Qty. Amount (Rs.) Foot operated stitching machine with all accessories 8 64,000 Double needle stitching machine with motor & accessories 1 45,000 Flat lock stitching machine with motor and accessories 1 45,000 Embroidery machine with motor and all accessories 1 8,000 Installation with electrification etc. 16,000 Workshop and testing equipment LS 14,000 Office equipment 16,000 Pre-operative Expenses 15,000 Total 2,23,200 Say 2,23, Working Capital (per month) Personnel Staff and Labour No. Salary (Rs.) Amount (Rs.) Cutting master 1 9,000 9,000 Supervisor 1 8,000 8,000 Accountant cum clerk/(part time) 1 4,000 4,000 Skilled workers 10 7,500 75,000 Un-skilled workers 2 5,000 10,000 Peon cum Chowkidar 1 4,000 4,000 Total 1,10,000 (+) 20% 22,000 Total 1,32,

4 Tailoring Division Raw Material & Packaging Materials Particular Qty. Rate (Rs.) Amount (Rs.) Cotton/grace fabrics of different colours, design and shade Sewing/embroidery thread and other accessories including packing material 19,500 mtr. 45/mt. 8,77,500 25/set 75,000 Total 9,52, Utilities Power/Electricity and Water charges (L.S.) Rs. 5, Other Contingent Expenses Description Amount (Rs.) Rent 7,500 Advertisement and publicity 1,500 Postage, stationery & Telephone 3,500 Travelling/transportation charges 3,500 Taxes/Insurance 2,000 Misc. 2,000 Consumable store 1,000 Total 21, Total Capital Investment Fixed capital Rs. 2,23,000 Working capital (for 3 months) Rs. 33,31,500 Total Rs. 35,54,500 Machinery Utilisation Capacity is utilized 75% of the installed capacity

5 Bed Sheet With Pillow Cover Set 7. FINANCIAL ANALYSIS 7.1. Cost of Production (per annum) Description (Rs.) Total recurring expenditure 1,33,26,000 Depreciation on m/c and 17,600 Depreciation on office equipment and 20% 6,440 Interest on total 5,33,175 Total 1,38,83,215 Say 1,38,83, Turnover (per annum) Bed sheet sets with pillow covers of different colours, design and shades 40,000 Nos. at Rs. 400/set Rs. 1,60,00, Net Profit (per annum) Turnover cost of production Rs. 1,60,00,000 1,38,83,000 Rs. 21,17, Net Profit Ratio Net profit per year Turnover per year 21,17,000 1,60,00, % 7.5. Rate of Return Net profit per year Total Capital Investment 21,17,000 35,54, % -235-

6 Tailoring Division 7.6. Break-even Point Fixed Cost (Rs.) Depreciation 24,040 Rent 90,000 Interest 5,33,175 40% of wages for staff and labour 6,33,600 40% of other expenses including utilities 79,200 Insurance 24,000 Total Fixed Cost 13,84,015 B.E.P Fixed Cost Fixed Cost + Net Profit 13,84,015 13,84, ,17, % Addresses of Machinery Manufacturers and Suppliers M/s. Kapoor Sewing Machine F-174-B, Laxmi Nagar, Delhi M/s. K. C. Sewing Machine Jagatpuri, Delhi M/s. Paul Brothers & Co. 1523, Nai Sarak, Delhi M/s. Rajan Hosiery Enterprises 21-B, New Qutab Road, Delhi M/s. Gupta Sewing Machine Co. 2639, Sadar Thana Road, Sadar Bazar, Delhi-6 Addresses of Raw Material Suppliers Raw materials are available in local market -236-

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