Wednesday, 30 November 2011

Start a Industrial Hand Gloves Manufacturing

Start a Industrial Hand Gloves Manufacturing    
     

       




Product Code:292007000
Quality and Standards:The following Indian Standard specifications are available to guide the manufacturer of industrial hand gloves and to maintain quality control.
Leather gauntlets for workers IS 2573:1963.
Leather gauntlets for workers in iron and steel industry IS 2574:1963
Leather Mittens for workers in iron and steel industry. IS 3575:1963
The split chrome leather used must have been processed properly to give the required pliability and stitch tear strength for assuming quality of gloves produced. The thread used for stitching must also conform to the prescribed standard.
Production Capacity:Qty. : 1,50,000 pairs (per annum)
Value : Rs.5250000
Uploaded on:March 2007

Introduction

Industrial hand gloves serve as an item of protective apparel for workers in factories. Hand gloves are of various types and sizes. Fast moving sizes are 14", 16", 18" etc. The materials that go in the production of hand gloves vary from cotton fabrics and asbestos to variety of leathers. Leather, however, since supreme in the production of industrial hand gloves. Amongst leather chrome tanned split leather is predominantly in use possibly because of its cheap price and peculiar qualities needed for hand gloves as compared to other kind of leather. Chrome tanned split leather imparts special qualities to withstand roughness of the handling material and gives enough flexibility and softness for the hand to move in the gloves easily and swiftly while working in the workshop. Such industrial gloves are widely used in industry, Railway and Defence. Due to rapid industrialization and expansion of railway the use of industrial hand gloves is expected to grow considerably.

Market Potential

Looking to the internal and external demand it appears that we are not in a position to cope with the demand and as such there is a good scope for starting new units for manufacture of industrial hand gloves. Fortunately the raw material is available in the country especially split leather due to increase in production of finished leather based on hides.

Basis and Presumptions

1. The production is based on a double shift, where shift is of 8 hours per day and 25 working days in a month.
2. Time period for achieving full capacity utilisation is 3 years.
3. Labour will be engaged on monthly basis keeping in view the present rate prevailing in the market.
4. Rate of interest for fixed and working capital @ 12% per annum.
5. Margin Money, 25%
6. Land and Building, own. Builtup area, 100 Sq. meters.
Implementation Schedule
It will take one year to complete all the formalities before starting the commercial production.

Technical Aspects

Process of Manufacture

The leather is checked for uniform thickness, holes and flying cuts, if any. It is then marked with the pattern and then cut with the help of scissors or clicking knife into different components. After stitching all the components suitably, the gloves are turned inside out. The gloves are then ready for packing and despatch.

Production Capacity

(a) Industrial hand gloves:1,50,000 pairs (per annum)
(b) Value:Rs.5250000

Pollution Control

This industry does not create any kind of pollution and as such there is no need to take any preventive measures for pollution control.

Financial Aspects

A. Fixed Capital

(i) Land and BuildingAmount
(In Rs.)
(i) Land 200 sq. mtr. @ Rs. 3500 per sq. mtr including registration
700000
(ii) Total built-up area 100 sq. mtrs. as follows:
Administrative office,factory shed 100 sq. mtrs. construction cost @ Rs. 6000 per sq. m
600000
Water System (including Bore Well + over head tank etc)
200000
Electricity backup(generator and others equipment)
100000
Total civil cost= cost of land + building
1600000

(ii) Machinery and Equipments

Sl. No.DescriptionImp./ Ind.Qty.Rate (Rs.)Value (Rs.)
1.Flat bed single needle industrial sewing machine power operated 1/2 HP motorInd.510000
50000
2.Cylinder bed single needle industrial sewing machine power operated 1/2 HP motor"215000
30000
3.Cost of tools and fixtures
10000
4.Cost of office furniture and workshop furniture
80000
5.Erection ,Taxes, Electrification and Installation of machinery @ 40%
68000
Total
238000
(iii) Pre-operative Expenses
20000
Total Fixed Capital (i+ii+iii)
1858000

B. Working Capital (per month)

(i) Staff and Labour (per month)

Sl. No.DesignationNo.Salary (Rs.)Total (Rs.)
1.Production Manager28000
16000
2.Accountant15000
5000
3.Salesman15000
5000
4.Clickers44000
16000
5.Stitchers144000
56000
6.Unskilled Workers84000
32000
7.Sweeper/Watchman23000
6000
Total
136000
Add perquisites @ 22% on Salary
29920
Total
165920

(ii) Raw Materials Including Packing Requirements (per month)

Sl. No.DescriptionQty.UnitRate @/unit (Rs.)Value (Rs.)
1.Chrome tanned Split leather (3.5 Pairs per kg.)
3571
Kg50
178550
2.Thread12500Pairs0.75
9375
3.packing material (Carton pack for 100 pairs, poly packing for individual pairs)126No.40
5040
Total
192965

(iii) Utilities (per month)

S. No.DescriptionAmount (Rs.)
1.Power3000
Total
3000

(iv) Other Contingent Expenses (per month)

Sl. No.DescriptionAmount (Rs.)
2.Postage and Stationery
3000
3.Consumable Stores
2000
4.Repair and Maintenance
2000
5.Transportation charges
5000
6.Telephone
3000
7.Advertisement and Publicity
10000
8.Insurance
1000
9.Miscellaneous Expenses
2000
Total
28000

(v) Total Working Capital (per month)

Sl. No.DescriptionAmount (Rs.)
1.Raw Materials
192965
2.Staff and Labour
165920
3.Utilities
3000
4.Other Contingent expenses
28000
Total
389885


(vi) Working Capital for 3 months
Working Capital (for 1.5 months) 389885 x 1.5
584828

C. Total Capital Investment

Sl. No.DescriptionAmount (Rs.)
1.Fixed Capital
1858000
2.Working capital for 1.5 months
584828
Total
2442828

Financial Analysis

(1) Cost of Production (per year)

Sl. No.DescriptionAmount (Rs.)
i)Total recurring cost
4678620
ii)Depreciation on machinery @ 10%
8000
iii)Depreciation on Building @5%
80000
iv)Depreciation on tools @ 25%
2500
v)Depreciation on furniture @20%
16000
vi)Interest on Total Capital Investment @ 12%
293139
Total
5078259

(2) Turnover (per year)

Sl. No.ItemsQty.Rate (Rs.)Value (Rs.)
1.Industrial hand gloves150,000 pairs35 per pair
5250000
Total
5250000


(3) Net Profit (before taxation) (per year)
Turnover - Cost of Production
5250000 - 5078259
171741


(4) Net Profit Ratio
Net Profit per year x 100
=———————————
Turnover per Year
1,71,741x 100
=————————
5250000
=3.27%
(5) Rate of Return on Total Investment
Net Profit per year x 100
=———————————
Total Investment
171741 x 100
=————————
2442828
=7.03%
(6) Break-even Point
Fixed Cost
Sl. No.DescriptionAmount (Rs.)
a)Depreciation on machinery @ 10%
8000
b)Depreciation on Building @5%
80000
c)Depreciation on tools @ 25%
2500
d)Depreciation on furniture @20%
16000
e)Interest on Total Capital Investment @ 12%
293139
f)40% of Salary and Wages
796416
g)40% of utilities and other Contingent expenses
148800
Total
1344855


B.E.P.
Fixed cost x 100
=——————————
Fixed cost + Net Profit
1344855 x 100
=——————————
1344855 + 1,71,741
=88.68%
Addresses of Machinery and Equipment Suppliers

1. M/s. Singer Sewing Machine Co.
Nehru Bazar,
Jaipur.
2. M/s. Industrial Sewing Machine
Co. (P) Ltd.,
Kakad Chambers, 5th Floor,
Dr. Annie Besant Road,
Mumbai-18.
3. M/s. Peelu Sales Corporation,
Meera Hussani Chouraha,
Hing Ki Mandi,
Agra (U.P.)

Raw Material Suppliers

1. M/s. Tata Export Tannery
Division, Agra Mumbai Road,
Dewas (M.P.)
2. M/s. Tannery and Footwear
Corporation of India,
Civil Line,
Kanpur (U.P.)
3. M/s. Gordon Woodroffee
Leather Mfg. Co. Ltd.
Pallavram,
Chennai-43
4. M/s. Usha Leather Industries
Dharavi, Mumbai-17


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