PROJECT MANAGEMNET FEASIBILITY REPORT ON GENTS GARMENT COMPANY

TO: Prof. DIYA UDASI FROM : PRAVEEN R RAMDARAS SY MMS 47 MIM COLLEGE

Ex !"#$% &"''(r)
A Feasibility Studys main goal is to assess the economic viability of the proposed business project. The Feasibility Study needs to answer the question: !oes the idea ma"e economic sense#$ The study should provide a thorough analysis of the business opportunity% including a loo" at all the possible roadbloc"s that may stand in the way of the successful reali&ation of the project. Feasibility study is used to support the decision ma"ing process% i.e. in the planning phase of the projects development cycle. 't is an analytical tool that includes recommendations and limitations% which are utili&ed to assist the decision(ma"ers when determining if the business concept is viable. Among many business ideas% only some of them are actually commercially viable. Therefore% a Feasibility Study is effective way to safeguard against wastage of further investments. 'f the results of the Feasibility Study are positive% then the ne)t logical step is to proceed with the full business plan. Feasibility Study contains much information% which is also necessary for the creation of the business plan* therefore Feasibility Study will support the business planning stage. For e)ample% a good mar"et analysis is necessary in order to determine the business concepts feasibility. Study should contain the full supporting evidence for its recommendations% based on a combination of numerical data with qualitative and e)perience( based documentation. This report includes feasibility study on:
V.R. GENTS GARMENTS COMPANY +A,- .F T/- 01.!23T : 52A6'T7 8 STA+!A1! : 4arment 5uality 4uide 1eadymade 4arment 4arment 4uide for 9 9 9 4-+TS S/'1TS A+! T1.2S-1S. The following 'ndian Standards may be referred. 'S::;<=>. 'S:?@AB. 0ac"aging for -)port. 'S::@:B?. 0ositioning of 6abels.

INTRODUCTION: ,anufacturing of Shirts and Trousers are under the category of readymade 4arment industry. 1eadymade garment industry has occupied a unique place in the industrial scenario of our country by generating substantial e)port earnings and creating lot of employment. 'ts contribution to industrial production% employment and e)port earnings are very significant. This industry provides one of the basic necessities of life. The employment provided by it is a source of livelihood for millions of people. 't also provides ma)imum employment with minimum capital investment. Since this industry is highly labour(intensive% it is ideally suited to 'ndian condition. This project report is prepared for the manufacture of gents shirts% gents trousers as they find wide acceptance in local and international mar"ets. Any person having the "nowledge of cutting and stitching operations can easily set up such establishments. MAR*ET POTENTIAL: 1eadymade garments are the choice of urban people. 't is also gaining wider acceptance in semi(urban and rural areas. The huge charges made by tailors and delay in delivery has made people to switch over to readymade garments. 'n domestic mar"et and e)port mar"et% it has made spectacular progress in the last decade. This industry is becoming very vibrant and lot of foreign investment pouring in this industry because of low ris" and high earning nature of this industry. As these products are fashion oriented% entrepreneurs should always "eep in mind the changing fashion styles. 3onsidering its advantageous position% it is assumed that there will be no constraint in mar"eting of gents readymade garments. BASIS + PRESUMPTIONS: :. This project is based on single shift basis and A@@ wor"ing days in a year. ;. Since this industry is labour(intensive% the wor"ing efficiency is considered at =>C. A. 3osts of machinery and equipmentD material indicated refer to a particular ma"e and appro)imately to those prevailing at the time of preparation of this project. ?. 'nstallation and electrification cost is ta"en E :@C of cost of machinery and equipment. >. +on(refundable deposits% project report cost% trial production% security deposits with -lectricity Foard are ta"en under pre(operative e)penses. <. !epreciation has been considered: GaH.n Fuilding E >C GbH.n plant and machinery E :@C

GcH.n office furniture and fi)tures E :>C GdH.n other fi)ed assets E :>C. =. 'nterest on capital investment has been ta"en E :<C per annum. I. ,inimum ;>C of total investment is required as margin money. IMPLEMENTATION SC,EDULE 'mplementation period in months for e)ecuting this project in stage(wise is given below:
Sl. +o. :. ;. A. ?. >. <. =. I. B. Selection of mar"et channel :@. ::. ,iscellaneous wor"s li"e powerDwater connection etc. ; month : month Formation of company GownershipDpartnershipH 0reparation of feasibility report 1egistration with commissioner of 'ndustriesD!'3 Arrangement of finance GTerm loan and wor"ing capitalH 0rocurement of machinery and equipment 0lant erection and electrification Arrangement of raw material including pac"aging material etc. 1ecruitment of manpower : month : month : month A month : month ; wee"s : month : month Activity Selection of siteDwor"ing shed 0eriod : month

TEC,NICAL ASPECTS Pro! && of M(-"f(!#"r : The manufacturing process involves the following steps: .. Pro!"r ' -# of F(/r$!& 0rocurement of Fabric: !yedDbleachedDprinted cottonDsynthetic fabrics as per demand are to be procured from the open mar"et. The fabric will be inspected by laying on the inspection table against light before cutting so that unevenness in colourDshade or any other fault% if any visible in the fabric are eliminated. 3utting and Stitching: The inspected fabric is placed on the cutting table in layers and then the different parts of the respective garments are demar"ed by a chal" as per different si&es. 3utting is carried out by the cutting machine. Stitching is carried out for individual portion of the garments by s"illed wor"ers with the help of over(loc"% loc" stitch machines etc. Jashing% 3hec"ing% 0ressing and 0ac"ing: All garments are charged into washing machine containing mild detergent and washed for ? hours in order to remove dirt and stains acquired during the manufacturing process. After washing% the garments are hydro e)tracted to remove e)cess water and after this% these garments are dried in tumbler dryer. Final chec"ing is done before pressing and pac"ing on the chec"ing table so that any fault in the piece may be removed and protruding threads eliminated. The individual pieces are pressed by steam presses to remove any wrin"le mar"s and pac"ed in the carton bo)es.

L 0(1 A&2 !#
3UALITY CONTROL + STANDARD: The quality of garments mainly depends on quality of fabric used. Therefore% care must be ta"en while purchasing fabrics to ensure good colourfastness properties% uniformity in shade etc. 4enerally garments are made as per customerKs specification in respect of si&e% design and fashion. S1. No. BIS No. :. T$#1

'S::;<=> 4arment 5uality 4uide 'S::@:B?

;. 'S:?@AB 1eadymade 4arment 0ac"aging for -)port. A. 4arment 4uide for 0ositioning of 6abels. 01.!23T'.+ 3A0A3'T7 G0er ,onthH: 0roducts 5uantity G0cs.H ?%<I%@@%@@@D(4ents Trousers Lalue G1s.H 4ents Shirts B@%@@@

B@%@@@

MOTIVE PO4ER RE3UIRED: Total A@ /0 is required to run this unit at installed capacity. POLLUTION CONTROL: The process of manufacture does not generate pollution. /owever% entrepreneurs are to contact State 0ollution 3ontrol Foard for necessary guidance.

ENERGY CONSERVATION: ,a)imum care should be ta"en while selecting the machinery and other electrical equipments so as to ensure minimum power consumption. F'+A+3'A6 AS0-3TS: 5A6 F$x 7 C(2$#(1 5$6 L(-7 + B"$17$-0: 6and : I@@ sq. mtr. E 1s. A@ per sq. mtr. Fuilding Area ;@@ sq. mtr.

Factory Shed :

5$$6 M(!8$- r) + E9"$2' -#& Sl. +o 1. ,achinery !escription Single +eedle 6oc" Stitch ,achine with motor. <$ 0ower driven cloth cutting machine ; +eedle .verloc" Safety Stitching ,achine with Trimmer !ouble +eedle 6oc" Stitch ,achine Futton /ole ma"ing ,achine Futton Stitching ,achine /ot Fusing 0ress 4arment Jashing ,achine ;> Mg 5ty +os. >@ 1ate G1s.H ;A%<>@D( Lalue G'n 1s.H ::%I;%>@@D(

: :

>@%@@@D( >@%@@@

>@%@@@D( >@%@@@D(

2. 3.

; : : : :

=>%@@@D( :%?>%@@@D( =>%@@@D( <>%@@@D( :%?>%@@@D(

:%>@%@@@D( :%?>%@@@D( =>%@@@D( <>%@@@D( :%?>%@@@D(

4. 5. 6. 7. 8.

9. 10. 11. 12. 13. 14. Total

capacity /ydro e)tractor ;> Mg capacity Tumbler !ryer ;> Mg capacity Flat Fed Steam 'ron 0ress with Lacuum Table. Nig Nag -mbroidery ,achine 4enerator Set A@ MLA Jash 1oom Trolleys

: : ? : : ?

=@%@@@D( :%?@%@@@D( =>%@@@D( ?>%@@@D( :%@@%@@@D( :@%@@@D(

=@%@@@D( :%?@%@@@D( A%@@%@@@D( ?>%@@@D( :%@@%@@@D( ?@%@@@D( ;>%>=%>@@D(

5$$$6 O#8 r F$x 7 A&& #&

i. ii. iii. -rection and installation .ffice Furniture 0re(operative e)penses Total Total Fi)ed 3apital : : ;%:=%>@@D( ?@%@@@D( A@%@@@D( ;%I=%>@@D( ;I%?>%@@@D(

5%6 i. ii. iii. iv.

To#(1 R !"rr$-0 x2 -& & 5 2 r 'o-#86: Staff 8 6abour 1aw ,aterial 2tilities .ther contingent e)penses Total: 1s. 1s. 1s. 1s. 1s. A%A<%@@@D( A@%:<%;>@D( A:%@@@D( AB%@@@D( A?%;;%;>@D(

GviH 5C6

Total Jor"ing 3apital for A months: A?%;;%;>@ O A P 1s. :%@;%<<%;>@D( TOTAL CAPITAL INVESTMENT: 1s. 1s. 1s. ;I%?>%@@@D( :%@;%<<%;>@D( :%A:%::%=>@D(

:. ,achinery 8 -quipment ;. Jor"ing 3apital for A months Total :

MAC,INERY UTILISATION: 3apacity utili&ation of plant and machinery is considered as =>C of installed capacity. /owever% this can be improved to I@C during Ard year of production.

FINANCIAL ASPECTS: 5A6 F$x 7 C(2$#(1 5$6 L(-7 + B"$17$-0:

: : : : : I@@ sq. mtr. ;@@ sq. mtr. >@ sq. mtr. >@ sq. mtr. A@@ sq. mtr. 1s. ;?%@@@D( E 1s. A@ per sq. mtr.

6and Fuilding Area Factory Shed Store G1aw ,aterialH Store GFinished 4oodsH Total 3overed Area: Total

5$$6 Sl. +o 1.

M(!8$- r) + E9"$2' -#& ,achinery !escription Single +eedle 6oc" Stitch ,achine with motor. <$ 0ower driven cloth cutting machine ; +eedle .verloc" Safety Stitching ,achine with Trimmer !ouble +eedle 6oc" Stitch ,achine Futton /ole ma"ing ,achine Futton Stitching ,achine /ot Fusing 0ress 4arment Jashing ,achine ;> Mg capacity /ydro e)tractor ;> Mg capacity Tumbler 5ty +os. >@ 1ate G1s.H ;A%<>@D( Lalue G'n 1s.H ::%I;%>@@D(

>@%@@@D(

>@%@@@D(

2.

>@%@@@

>@%@@@D(

3.

=>%@@@D(

:%>@%@@@D(

4.

: : : :

:%?>%@@@D( =>%@@@D( <>%@@@D( :%?>%@@@D(

:%?>%@@@D( =>%@@@D( <>%@@@D( :%?>%@@@D(

5. 6. 7. 8.

: :

=@%@@@D( :%?@%@@@D(

=@%@@@D( :%?@%@@@D(

9.

10. 11.

12. 13. 14. Total

!ryer ;> Mg capacity Flat Fed ? Steam 'ron 0ress with Lacuum Table. Nig Nag : -mbroidery ,achine 4enerator Set : A@ MLA Jash 1oom Trolleys ?

=>%@@@D(

A%@@%@@@D(

?>%@@@D( :%@@%@@@D( :@%@@@D( ;>%>=%>@@D(

?>%@@@D( :%@@%@@@D( ?@%@@@D(

5$$$6 O#8 r F$x 7 A&& #& i. -rection and installation ;%:=%>@@D(

ii. iii. To#(1: To#(1 F$x 7 C(2$#(1:

.ffice Furniture 0re(operative e)penses

?@%@@@D( A@%@@@D(

:;<7;=>>?@ :<;4=;>>>?@

5B6 4orA$-0 C(2$#(1 52 r 'o-#86

5$6 S#(ff + L(/o"r 5P r Mo-#86: S1. No. :. ;. A. ?. >. 0eonDJatchman <. To#(1: B7;=>>?@ ; A@@@ <%@@@D( P r&o-- 1 ,ar"eting ,anager Sales 1epresentative Accounts .fficer 3ler"D Store( Meeper -lectrician No. : : : ; : R(# 5R&.6 :@@@@ <@@@ >@@@ A>@@ A>@@ A'o"-# 5 IR&.6 :@%@@@D( <%@@@D( >%@@@D( =%@@@D( A%>@@D(

Pro7"!#$o- S#(ff: =. I. S"illed Jor"ers B. 0ressman :@. ::. 2ns"illed Jor"ers < A@@@ :I%@@@D( :;4:;=>> ><%@@@D( ? A>@@ :?%@@@D( >> A>@@ :%B;%>@@D( 0roduction ,anager 3utting ,aster : : :@@@@ I@@@ :@%@@@D( I%@@@D(

To#(1: 0erquisites E ;@C on the total salary

Gr(-7 To#(1

B;BC;>>>?@

5$$6 R(D M(# r$(1 5 P r 'o-#86: S1. No 1. I# ' 3#). 7 &!r$2#$o- U-$# 3otton :<>@@ Fabric Shirts G,trs.H Flended :@@@@ Fabric for Trousers G,trs.H. Trims and =>@@ -mbellishm ents G+os.H Sewing :>@@@ Thread G,trs.H Jashing !etergents 0ac"ing ,aterial G+os.H :>@@@ R(# 5R&.6 I@D( V(1" 5I- R&.6 :A%;@%@@@D(

:>@D(

:>%@@%@@@D(

2.

:>D( 6S 6S A

:%I@%@@@D( :%;A%=>@D( >%@@@D( ?>%@@@D( B>;.C;:=>?@

3. 4. 5. 6. To#(1:

5$$$6 U#$1$#$ &: 5P r Mo-#86 1. 2. 3. To#(1: @ Fuel for 4enerator Set 1s. R&. >%@@@D( B.;>>>?@ -lectricity Jater charges 1s. 1s. ;?%@@@D( ;%@@@D(

5$%6 O#8 r Co-#$-0 -# Ex2 -& 5P r Mo-#86: 1. 2. 3. 4. 5. 6. 7. To#(1: 1ent 1s. ;?%@@@D( A%@@@D( :%@@@D( ;%@@@D( >%@@@D( ;%@@@D( ;%@@@D( BE;>>>?@

Advertisement 1s. 8 0ublicity 0ostage 8 Stationery 1epair and maintenance Transport DTraveling charges Telephone Fills 1s. 1s. 1s. 1s.

,iscellaneous 1s. -)penses R&.

5%6 To#(1 R !"rr$-0 x2 -& & 5 2 r 'o-#86: i. ii. 2tilities iii. iv. To#(1: .ther contingent e)penses 1s. R&. AB%@@@D( B4;::;:=>?@ 1s. A:%@@@D( Staff 8 6abour 1aw ,aterial 1s. 1s. A%A<%@@@D( A@%:<%;>@D(

5%$6 Total Jor"ing 3apital for A months: A?%;;%;>@ O A P 1s. :%@;%<<%;>@D( 5C6 TOTAL CAPITAL INVESTMENT: 1. 2. To#(1: ,achinery 8 -quipment Jor"ing 3apital for A months 1s. 1s. R&. :<;4=;>>>?@ .;>:;CC;:=>?@ .;B.;..;7=>?@

MAC,INERY UTILISATION: 3apacity utili&ation of plant and machinery is considered as =>C of installed capacity. /owever% this can be improved to I@C during Ard year of production.

FIFNANCIAL ASPECTS: 5.6 Co&# Of Pro7"!#$o- 5P r A--"'6 1. 2. 1ecurring -)penses !epreciation on ,achinery E :@C !epreciation on .ffice Furniture 8 other fi)ed assets E ;@C 'nterest on Total 'nvestment E :<C 1s. 1s. ?%:@%<=%@@@D( ;%AB%;>@D(

3.

1s.

I%@@@D(

1s.

;@%B=%II@D(

4. To#(1:

R&.

4;B4;.:;.B>?@

5:6 T"r- O% r52 r ) (r6 /) S(1 & 0roducts 4ents Shirts 4ents Trousers To#(1 5uantity G+os.H B@%@@@ B@%@@@@ 1ateD0c. G1s.H ;:@D( A;@D( Lalue G1s.H :%IB%@@%@@@D( ;%II%@@%@@@D( 4;77;>>;>>>?@

5B6 N # Prof$# 52 r ) (r6 GFefore 'ncome Ta)H Sales Lalue ?%==%@@%@@@D G(H G(H ?%A?%:;%:A@D( 3ost of 0roduction R&. 4:;<7;<7>?@

546 N # Prof$# R(#$o: N # 2rof$# F .>> ? T"r- O% r?A--"' 4:;<7;<7>F .>> ?4;77;>>;>>> G G ::.C<H

5=6 R(# of R #"r- o- I-% &#' -# 5N # Prof$#?To#(1 C(2$#(1 I-% &#' -#6 A--"(1 Prof$# F .>> To#(1 C(2$#(1 I-% &#' -# G 4:;<7;<7> F .>> .;B.;..;7=> B:.7>H

5C6 Br (A E% - Po$-#?A-(1)&$&: F$x 7 Co&# 5P r A--"'6: 1. 2. 3. 4. 'nterest on 3apital 'nvestment ?@C of Jages of Staff 8 6abour ?@C of other 1s. 1s. 1s. ;@%B=%II@D( :<%:;%I@@D( =;%@@@D( 1ent 1s. ;%II%@@@D(

!epreciation

1s.

;%?=%;>@D(

5.

contingent e)penses To#(1 F$x 7 Co&#:

R&.

4B;.7;EB>?@

N(' + A77r && & of M(!8$- r) + E9"$2' -# S"221$ r&

S1. No. 1.

2.

3.

4.

N(' + A77r && ,Ds 0aras Special ,achine 3o.% ,adhopur Mucha +o. =% 1ohan 1oad% Thane ,Ds ,ehala ,achines 'ndia 6imited% 3(<;% ."hla 'ndustrial Area% 0hase(:% ,ulund ,Ds Lijay Sewing G0H 6td.% :=(!% -verest /ouse% ?<( 3% 3howringhee 1oad% Malyan ,Ds 'ndustrial ,achines 0vt. 6td.% :D;A F% Tila" 1oad% !ombivli