Wednesday, 30 November 2011

Start a Canvas shoes Manufacturing unit


    
(228)Start a Canvas shoes Manufacturing
         

Canvas shoes are a casual wear item and are extensively used by armed forces personnel, police, Home guards, NCC and civilian personnel. In the present age of health consciousness these are also utilized for jogging, aerobic exercises. The poor and people with low income who cannot afford costly leather shoes utilize it as a standard wear for work. These shoes are very popular amongst students and children. As the name suggests the shoes are made of canvas cloth. The shoe upper is of canvas while the base is moulded rubber. Its cheapness as well as its comfort is the main reasons for its popularity. The technology for such shoes is available with Government research laboratories.
2. Industry Profile and Market Assessment:
Footwear are an essential part of everyday life through out the year be it during hot summer months of winter. Both the summer and winter months are extreme in many parts of the country. The feet have to be protected hence it is essential to wear shoes. Canvas shoes are one of the cheapest available for the purpose. Although shoes made from other material such as leather, PVC etc. are also available in the market but, are many times costly. Canvas shoes are also a popular sportswear and are preferred foe children. These shoes are extensively used by labourers, industrial workers, farmers, and roadside vendors. There is a good demand for such shoes as such a number of renowned shoe makers are in the field.

The shoes manufactured by these big units have the market in the richer class of the society and cannot be afforded by the general public. A small scale unit with low overheads can easily market its products with such units if it can keep the prices low. The population of the country is nearing 120 crores, assuming that such cheap shoes can be afforded by 25% the requirement is 30 crore pairs over an extended period assuming a life span of 3 years for a pair. The demand for children shoes is higher as they grow fast and shoes have to be replaced periodically. It has a good demand in rural, urban areas and metropolitan cities. Once the product establishes its Brand, export opportunities can also be explored. Middle East countries and other western countries are places where it has demand.
3) Manufacturing Process & Know How
The process of manufacturing is simple and standardized. It is divided into four sections:

1. Rubber mixing section.
2. Canvas upper checking and sewing section.
3. Assembly section.
4. Finishing and packing section.
Rubber mixture for sole is mixed taking different ingredients such as rubber, filler, sulphur, organic accelerators, pine oil & resin. This is thoroughly mixed and kept in a tank with electrically operated paddle. Naphtha is added and the mixture is churned out for calendaring the cloth for making rubberized cloth to be used as tongue, thick insole and for applying this binder for lasting.
Various components of canvas upper are cut stitched, eyelets are fixed on upper. The inner sole is placed on the lasts and the upper is pressed with hand roller and the bottom is pasted.
Cement is applied on the bottom of the shoe and sole is pressed on it with the help of roller. Noak is pasted on the toe. The pasted shoes are then vulcanized.
After vulcanization the shoes are cooled stripped from the lasts and trimmed, inspected for defects and packed.
The Process flow Chart is presented as under:
Know how is available with Central Government research Laboratories. The machinery is all indigenously available.

The production capacity envisaged is 1.20 lakh pairs per annum on single shift basis for 300 days.
4) Plant and Machinery:
The main plant and machinery required comprise
  • Mixing Mill and accessories. - 1 no.
  • Rubber Spreading m/c - 1no.
  • Vulcaniser. - 1nos
  • Baby Boiler - 1 no
  • Embossing m/c - 1 no.
  • Churner with motors. - 1 no
  • Eyeleting m/c - 4 no
  • Clicking Press with motors - 2 no
  • Industrial power operated sewing m/c - 10 no.
  • Shoe Lasts - 100 no.
  • Calendaring m/c.
  • Storage Tank for Naphtha
The total cost of machinery including miscellaneous assets such as trollies, tools and equipment, Transformer etc. is estimated to be Rs.17.03 lakhs.

The total requirement of power shall be 125 HP; the unit will need 3000 lits of water daily.
6) Raw material and Packing Material:
The basic raw material for the unit are canvas cloth, lining, Rubber insole, Rubber sheet for toe, Insole calendar cloth, laces, packing material etc. The total cost of raw material and consumables is estimated to be Rs.30.31 lakhs per annum at rated capacity.
At 70% capacity in 1st year the cost works out to Rs 21.22 lakhs.
7) Land and Building: The unit will require a covered area of 600 sq. mts and the same can be taken on a nominal rent of Rs 12000/- per month.

8) Manpower:
For smooth functioning of the unit the requirement of man power is expected to be around 37 persons.
Sales personSelf
Skilled Workers8
Semi skilled workers10
Helpers5
Supervisor1
Watchman/Peon
The annual salary bill is estimated to be around Rs.18.00 lakhs
9) Sales Revenue: (100% capacity)

Selling price varies depending on the product mix quality. An average price of Rs 70/- per pair has been taken. The annual income at installed capacity of 120000 pairs is Rs 84 lakhs.

10) Cost of Project:
 
Rs. lakhs
Land & Building
on rent
Plant & Machinery
17.03
Other assets
0.75
Contingencies
1.78
P & P expenses.
1.00
Margin money
3.10
Total
23.66
  
Means of Finance 
Promoters Contribution8.24
Term Loan15.42
Total23.66
11) Profitability:(70%capacity)
 Rs. lakhs
Sales58.80
Raw material21.22
Salary18.00
Utilities2.90
Stores & Spares0.30
Repairs & Maintenance0.36
Selling expenses5.88
Administrative expenses0.60
Depreciation1.70
Interest on T.L2.00
Interest on W.C0.60
Cost of production53.29
Profit5.51
12) Requirement of Working Capital
  MarginW.CMargin Money
Raw material15 days30%1.060.32
Stock of finished goods15 days25%2.180.55
Working expenses1 month100%1.501.50
Sale on credit15 days25%2.940.73
Margin money for W.C3.10
13) Break Even point: 45%
Addresses of Machinery Suppliers
1. M/S Sohal Engg.
Works, L.B. Shastri Marg,
Mumbai 400078
2. M/s Indin Expellar Works P. Ltd.
Naroda Indl. Estate,
Ahmedabad 382330.
3. M/S Premier Engg.
Works, Sirhind,
Punjab

No comments:

Post a Comment