PROJECT REPORT OF MAUVI DESIGNS

ADDRESS : # 268, S.NO.62/4, 2ND FLOOR, BOMMANAHALLI VILLAGE, BEGUR HOBLI, BANGALORE 560 068.

INDEX MEMO

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PARTICULARS INTRODUCTION BACKGROUND OF PROMOTERS PROCESS LOCATION OF THE UNIT INFRASTRUCTURE FACILITIES MARKET POTENTIAL CREDIT FACILITIES CONCLUSION COST OF THE PROJECT PROJECTIONS OF PERFORMANCE PROJECTED BALANCE SHEET CASH FLOW STATEMENT SCHEDULE OF DEPRECIATION ASSESSMENT OF WORKING CAPITAL REPAYMENT OF TERM LOAN DEBT SERVICE COVERAGE RATIO

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BREAK EVEN ANALYSIS ASSUMPTIONS

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PROJECT AT A GLANCE
1. Name of the unit 2. Address : : MAUVI DESIGNS #268, S.No.62/4, 2nd Floor, Bommanahalli Village, Begur Hobli, Bangalore 560 068. Proprietorship Manufacturing of Ladies wears. SME 1. Mrs.Mary Bargavi A. Age : 29 Years Qualification : Diploma in Fashion Design Experience : 5 years : Rs. In Lakhs 1. Building Leasehold 2. Plant & Machinery 51.43 3. Furniture and Fixtures 2.50 4. Computers/UPS 1.20 5. Electrical Installation 1.50 6. Deposits 2.50 7. Working Capital Margin 16.50 TOTAL 75.63 : 1. Promoters Margin 2. Term loan TOTAL 9. Performance of the unit : First Year Rs. In Lakhs 33.63 42.00 75.63

3. Constitution 4. Nature of Activity 5. Type of Industry 6. Name of promoters, Age, qualification, Experience

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7. Project Cost

8. Source of Finance

Sales Operating Profit Net Profit 10. Working Capital Requirement 11. Debit Equity Ratio 12. VAT No 13. D S C R : : : :

286.65 Lakhs 35.04 Lakhs 6.99 Lakhs

Rs. 50.00 Lakhs Cash Credit Limit ( against Book debts/stock) 1.25 : 1 29321158113 2.84

PROJECT REPORT
INTRODUCTON:
The Ready-made garments is a highly growth oriented area of business. Export of this is the highest net foreign exchange earner of the country. Big Industrialists and exporters are subcontracting their orders to small garment industry. Hence there is good scope for small garment industry in supplying the shirts and trousers. These industries are more or less export-oriented industry, because their main job is to stitch the cloth as per the pattern and design of the garment exporters and supplying the ready made garments to the exporters and others. The Indian garment industry is looking up since last 2 years even with the recession in the Asian and Europe countries in view of quality and durability. Bangalore is one of the important hub for ready garments as more than 120 units are located in and around. Some of the big industries are closed in last 4 years because of the labour problem but however the small units are not affected as they are engaging the labours on piece rate basis. The prospect for the garment is very bight in view of vast demand for Indian readymade garments. The promoter of the unit M/S. Mauvi Designs is Mrs. Mari Bargavi A who has done the diploma in Fashion Technology from U K and gained adequate knowledge in U K in a Garment Industry which has got good market potential. She has more than 3 years experience in Garment Industry. Encouraged by the market potential and export market the promoter has determined to set up a garment industry having capacity to manufacture 100 Tops/ Kurthas per shift and 300 Tops/Kurthas per day by installing the new automatic stitching and embroidery machines. The unit is looking for credit facility from the bank to the extent of Rs. 92.00 lakhs of which Rs.42.00 lakhs towards Term Loan and balance of Rs.50.00 lakhs towards Working capital.

BACKGROUND OF PROMOTER:
The propreitrix of M/S. Mauvi Designs is Mrs. Mary Bargavi A aged about 29 years did Diploma in Fashion Technology from U K. She has worked in U K on part time basis and returning to India she worked with Garment Industry. She has gained adequate knowledge in Garment Industry. Encouraged by the good market potential and export market for garments she has determined to start a Garment Industry in Bangalore with the minimum infrastructure. She is comfortable to achieve the sales projected in the coming years with the assistance of her family members and recruited experienced staff.

PROCESS:

The raw material required for the manufacture of readymade garments are Tops/Kurthas cloth of spun, cotton, wool etc material which are procured from the company showrooms or factories directly in bulk. The cloths are cut in to pieces by the tailor manually through the seizer as per the customer specification and then it will stitched as per the standard sizes with the help of automatic machines. The next process is buttoning and ironing. Finally the same will be packed in the plastic folders by tagging. The efficient tailor can stitch up to 15 shirts per day.

LOCATION OF THE UNIT :

The proprietrix has already taken the building on rental basis located at SY. No. 62/4, 268, 2nd Floor, Bommanahalli Village, Begur Hobli, Bangalore South Taluk with the security deposit of Rs.2,50,000/-. The monthly rent fixed for the building premises is Rs. 30,000/-. The location is ideal from the point of telecommunication, transportation and marketing.

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INFRASTRUCTURAL FACILITIES :
a) BUILDING : The unit has taken the following building premises at Sy. No. 62/4, 268, 2nd Floor, Bommanahalli Village, Begur Hobli, Bangalore for a period 3 years on rental basis. The building space is sufficient to carry on the process with the present capacity of 100 Nos. per shift. b) POWER: The building premises has power connection of 10 HP which is adequate for running the unit. c) RAWMATERIALS: The raw material required by the unit is Fabric, cloth, thread, needles, buttons, measurement tape etc., The materials are available in the local market and there is no problem in getting the raw material. d) LABOUR: The unit will engage qualified technical staff and the structure of the salary is under: Sl.No Particulars No Salary P M Total Salary 1 Tailors 60 8,000.00 57,60,000.00 2 Helpers 20 5,000.00 12,00,000.00 3 Cutters 30 12,000.00 43,20,000.00 4 Assistants 15 6,000.00 10,80,000.00 5 Total 125 1,23,60,000.00

MARKET POTENTIAL:
The market for woman wears is very vast and the demand is always on the rise as new designs are coming in to the market. Bangalore is the next market following Mumbai in terms of export revenue as many industries are located. The unit is expecting orders for bulk quantity from merchant exporters in Bangalore. As such there is no problem in marketing the product or envisaged for the long run. The promoter has done the market survey and the response for the product is overwhelming. The unit also wishes to sell the product through on line. The promoters do not foresee any problem in marketing the product.

CREDIT FACILIITES:
The unit is seeking Credit facility of Rs.92.00 lakhs of which Rs.42.00 lakhs towards Term Loan, for a period of 6 years with moratorium of 6 months, and remaining Rs.50.00 lakhs towards Working Capital facility in the form of Cash Credit against book debts and stock-in Trade. The facilities will be secured further by collateral in the form of immovable property stands in the name of promoter and her father situated at Bellary. The collateral property value is estimated at Rs.125.00 lakhs. The unit plan to buy the fabric from the factories or showrooms from Ahmedabad and Mumbai and carry inventory of raw material of at least 30 days and finished stock of 15 days. The unit will extend credit to the showrooms of at least 30 days initially. The working capital assessment has been done base on the inventory and receivables.

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CONCLUSION:
From the foregoing, the project would run satisfactorily and would enable the promoter to pay the bank interest and have something for subsistence also. As such it has been felt that the project would be highly successful one barring any unforeseen circumstances.