PROJECT AT A GLANCE

Units Name Address for Communication : : GRAVITY JEANS GRAVITY JEANS A 52, GIDC, Phase - 2 Jamnagar 361 004 Partnership Firm Denim Jeans, Jackets & Cotton shirts Applied for No Subsidy Taken GRAVITY JEANS A 52, GIDC, Phase - 2 Jamnagar 361 004

Type of Unit Product S.S.I Registration No. Subsidy Registration No. Location of the Unit

: : : : :

DETAILS OF PROMOTERS
Name & Address: college, Age Qualification Experience Contribution : : : : Pujara Hetal P., HETU, Soham nagar Nr. Haria Radar Road, Jamnagar - 361 001. 23 Years BBA Fresh 50% Marketing & Finance Department Pujara Keya J. Varias dela, Near Jain temple, Chandibajar Jamnagar 361 001 25 Years Fashion Designer 2 Years 50% Production & Purchase Department
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Responsibility : Name & Address:

Age Qualification Experience Contribution

: : : :

Responsibility :

PROPOSED LOCATION JUSTIFICATION

Location has great effect on success or failure of any industry. The necessary factors in the selection of industry location change among industries and with the changing technical and economical condition same industries have to follow their different trends of the market. The location of the project is very important factor. Initially the location should be decided on the basis of the proximity to the sources of raw material, consumption centre and availability of the skill in the surrounding areas. 1. Raw Material: The procurement of raw materials is mainly from the place of order which further highlight that the person who places the order supplies the raw material for that product. The following are the raw materials are used: Fabric: Cotton, Poplyene, Denim fabric, Cotton Vill, Printed Cotton, Oxford fabric in cheks, Pocket lining, Sheeting fabric. Other Items: Needles, Threads, Buttons, Labels, Zippers, Velcro, Plastic Bags, Shirt supporters, Plastic Butterfly, Plastic colour strip, Machinery & other general items.

2. Labour: In spite of having many capitals intensive machines any unit whether small or big depends upon manpower. They are skilled as well as unskilled laborers working here as a unit. 80 skilled workers and 25 unskilled workers mainly working in stitching, checking, pressing and machine handling. 3. Power: In order to start any industry it is necessary to get the adequate supply of power. The company will require 20 H.P. electric loads. 4. Water: The water is an essential element for any activity. So water is requiring for domestic purposes is 1000ltrs. per day. 5. Transportation: This is an important criterion. As the factory sight is near to Jamnagar highway it becomes easy to send the goods from one place to another. 6. Market: This is also an important factor. Without market no firm can survive. Basically the goods are sold in national market, but a part of goods are exported to USA, New Zealand & Australia.

MARKET ANALYSIS
Market Status, Competition and Potential The demand for ready made garments arises both from domestic and international market. The garment industry in India is highly decentralized in small & timely sector & the domestic market was confined to childrens wear in earlier period whereas new increased use of garments boosted by younger has led the development of garment industry in Gujarat for last 5 years. It is estimated that approx. 600 small scale units are operating in the state mostly concentrated at Ahemdabad, Surat, and Jamnagar & Gandhidham. The domestic market for ready made garments however is limited range from 15% to 20%. Only of the total production whereas 80% of production is estimated to be exported. Still Indias share in the world market is just 2% of the international trade garments. Whit the recent liberalized policy govt. has already taken several steps to encourage flow of exports in desire direction by granting additional 5% concession on export to non-quota countries, sanction of 25% air fright subsidy for availability of garments to far places. Thus, future of exports of readymade garments industry have many advantages over its counterparts in the other countries in the other countries due to availability of raw materials i.e. fabric from mill sector, power loom sector, handloom sector & also availability of largest labor forces in the world at a very low wages.

MANUFACTURING PROCESS
1. Design Creation Design is an imprint activity in process of garments manufacturing. For this purpose the company collects latest data & information in the market trends on going bases. Qualified & experience designers based in this data & their own experience & creativity prepares various design on paper. The visualize introduces & combines new patterns, style & color setting in design with the focus on the excellence in the product quality. Particular emphasize is given to appeal to change in fashion world. 2. Sampling As this stage the video master comes to prominence. Masters study design section & prepare appropriate samples from the fabric with the emphasis on overall quality of product. 3. Cutting Layers of fabric are placed on cutting table & on the top of the layers the marking are plotted. The cutters cut the fabric as per the samples & specification at a very high speed with the help of cutting machines. The cut pies are sorted as per the sample & send to the stitching department. 4. Stitching This is the basic operation of manufacturing. The piece is stitched together as per the sample under the effective supervision of the supervisor. The company uses singer machines which are known world wide for excellent stitching.

5. Embroidery It is an important part in manufacturing process. Its like diamond in the gold jewellery. The company has 12 embroidery machines. 6. Washing Washing of garments is carried out at companies washing plant facility at Jamnagar. Garments are washed through washing machines and sent for drying. Drying is carried out through industrial dryer machines. 7. Ironing After washing of garments ironing process is carried out. Here the garments are ironed in manner in which it gives appearing look out and will be ready in manner in which it gives appearing look out and will be ready for final packaging. 8. Inspection & Quality Control Garments so manufactured are thoroughly inspected in these department b competent supervisors for excellent quality control.

PRODUCTION CAPACITY
The installed capacity of the company is 1.20lakh pieces per annum approx. of different size. The utilized capacity of the plant will be 0.80lakh pieces. Sr. No. 1 2 3 Name of the product Jeans Denim Jackets Cotton shirts Daily Production unit 1,000 4,000 5,000 Rate/ Total value Unit 450 4,50,000 300 250 12,00,000 12,50,000

FINANCIAL DETAILS OF THE PROJECT

Land: The land is situated at Jamnagar the area of land is about 1000 sq. mts. The land is required for different activities. The land is used for constructing the office & factory building. Sr. No. 1 2 Particulars Open land Building Sq. Mts. 1,000 1,500 BUILDING Sr. No. 1 2 3 4 Particular Factory Godown Office Room Compound (Table No. 1 Building Cost) Area Rate Total Cost 800 200 300 200 200 200 200 200 1,60,000 40,000 60,000 40,000 Rates 200 200 Total 2,00,000 3,00,00

DETAILS OF MACHINERY Sr. No. 1 2 3 (Table No. 2 Machinerys detail) Machine No. of Suppliers Machine Name Sewing Machines 100 Singer Embroidery Machines Electronic item 12 5 Stichman Shah S. Nahar

FIXED CAPITAL & FIXED COST OF PROJECT Sr. No. 1 2 3 4 5 (Table No. 3 Fixed Capital & Fixed Cost of Project) Particular Amount (Rs.) Land 2,00,000 Building 3,00,000 Machinery 8,00,000 Contingency 1,00,000 Preliminary Expenses 75,000 Total 14,75,000

WORKING CAPITAL REQUIREMENT

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Sr. No. 1 2 3 4 5

Particular Stock of Raw Material Work- in- Progress Finished Goods Bills Receivables Current Expenses

(Table No. 4 Working Capital) Amount Duration (Rs.) 1,50,000 1 Month 1,00,000 80,000 1,00,000 75,000 15 Days 7 Days 1 Month 1 Month

TOTAL COST OF THE PROJECT Sr. No. 1 2 3 Total Particular Total Fixed Cost Total Variable Cost Total Working Capital (Table No. 5 Total Cost of Project) Amount (Rs.) 14,75,000 1,50,000 5,05,000 21,30,000

FINANCIAL PROVISION & SOURCES OF FINANCE

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(Table No. 6 Financial provision & Sources of Finance) Sr. Particular Amount Bank Loan Owned No. (Rs.) Capital 1 Land 2,00,000 -----2,00,000 2 Building 3,00,000 2,00,000 1,00,000 3 Machinery 8,00,000 4,00,000 4,00,000 4 Contingenc 1,00,000 -----1,00,000 y 5 Prelim. Exp 75,000 -----75,000 6 Working 5,05,000 45,000 4,60,000 Capital

DETAILS OF SOURCE OF FINANCE (Table No. 7 - Details of Source of Finance) Sr. No. Details Interest Amount 1 Bank loan 18% 1,16,100 2 Deposit 10% 10,000 3 Contributio 15% 1,98,750 n

DETAILS OF SALES

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(Table No. 8 Sales Details) Sr. No. Particulars Rate Quantity Amount (Rs.) 1. Jeans 450 1,000 4,50,000 2. Denim Jackets 300 4,000 12,00,000 3. Cotton Shirts 250 5,000 12,50,000 Total Annual Sales 29,00,000 RAW MATERIAL INCLUDING PACKAGING Sr. No. 1. 2. 3. 4. 5. Details Cotton Denim fabric Needles & Threads Button Packaging Total Rates 100 200 100 15 25 Quantity 1,000Kg. 1,500Kg. 100Pcs. 1000Pcs. 2700Pcs. Amount 1,00,000 3,00,000 10,000 15,000 67,500 6,27,500

SALARY & WAGES

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Sr. No. 1 2 3 4 5

Particulars Supervisor Skilled Workers (8) Unskilled Workers (13) Office Staff Watchman Total

(Table No. 9 Wages & Salary) Monthly Fourthly 4,500 3,000 2,500 5,000 2,000 17,000 18,000 12,000 10,000 20,000 8,000 68,000

ELECTRICITY CONSUMED (ANNULY) The electricity consumed annually will be 20H.P.

RENT TAXES & INSURANCE

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I Tax: 1. Sales Tax 2. Octroi II Insurance: 1. 2.

Rs.60, 000 Rs.80, 000

Building P.A. Machinery P.A.

Rs.3, 00, 000 Rs.20, 000

Total Tax & Insurance per Annum: - Rs.4, 60, 000 REPAIRING & MAINTANANCE Some of extra amount is always kept for repairing and maintenance of machinery & equipments which amount to Rs. 50,000. INTEREST Sr. No. 1. 2. Details Bank Deposits Total Amount 6,45,000 1,00,000 7,45,000 Interest 1,16,100 10,000 1,26,100 Total 7,61,100 1,10,000 8,71,100

DEPRICIATION

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Sr. No. 1. 2. 3.

Details Sewing machine Embroidery machine Electronic iron Total

Amount 5,00,000 1,20,000 1,80,000 8,00,000

Rate 10% 7.5% 10%

Total 50,000 9,000 18,000 77,000

ADMINISTRATION EXPENSES Sr. No. 1. 2. 3. 4. Details Accounts Printing & stationary Postage Others Total Monthly 5,000 10,000 7,000 5,000 27,000 Yearly 60,000 1,20,000 84,000 60,000 3,24,000

SALES & DISTRIBUTION EXPENSES Sr. No. 1. 2. 3. Details Commission Advertising Salesman Total BREAKEVEN ANALYSIS Amount 2,500 5,000 3,000 10,500

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The Break Even point shows the level of production at which the company is able to cover its fixed costs. In other words, it shows the minimum production needed to ensure that the company does not incur a loss. A low B.E.P is always profitable as it shows that the company will not have any problem in covering fixed costs & chances of incurring loss are less. Details Total sales Less: Cost of Production Profit before tax B.E.P. = = = = = Fixed costs Fixed costs + Profit 14, 75, 000 14, 75, 000 + 7, 70, 000 14, 75, 000 22, 45, 000 65.7% i.e. 66% approx. Amount 29,00,000 21,30,000 7,70,000 x 100 x 100 x 100

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RATIO ANALYSIS (1) Gross profit ratio = = = = (2) Net profit ratio = = 100 29, 00, 000 = = (3) Profit on Sales = = = = 17.25% 17% approx. Profit Sales 7, 70, 000 x 100 29, 00, 000 26.55% 27% approx. x 100 Gross profit x 100 Sales 20, 00, 000 29, 00, 000 68.96% i.e. 69% approx. Net Profit x 100 Net sales 5, 00, 500 (after tax @ 35%) x x 100

SUMMARY
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DETAILS Total Sales Less: Cost of production Profit Before Tax Less: Income Tax Profit After Tax

AMOUNT 29,00,000-00 21,30,000-00 7,70,000-00 2,69,500-00 5,00,500-00

CONCLUSION
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GRAVITY JEANS Pvt. Ltd. is a small scale unit who still top the market for its quality for production and meeting the demand of its customers on time. The Profit Margin itself will speak of this companys success and change the market image in the international Market of Countries like USA, Australia and New Zealand. From the above Project Report one can surely conclude that GRAVITY JEANS Pvt. Ltd. has an effective management power and support. Being a fresh company it is well acquainted with the present trends of market. The company also possesses highly dynamic marketing techniques and Production System. Being a new company, it is well knowledge with the present trends of market. So with the valuable support of all employees and executives, it will surely make this Project a successful one.

BIBLIOGRAPHY
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Sr. No. 1. 2.

Particulars Project Management Project Management

Author Desai vasant Chandra Prassana

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