Tuesday, 12 June 2012

Start a Umbrella Manufacturing Unit

 


(322). Start a Umbrella Manufacturing Unit
The umbrella as we know it today is primarily a device to keep people dry in rain or snow. Its original purpose was to shade a person from the sun.Umbrellas are very commonly and extensively used in our country to protect against sun and rain. The demand for umbrellas depends on different climatic conditions, increase in population, and general increase in income and change in social outlook. There are different types of umbrellas such as straight (ordinary) and folding umbrellas used by gents, ladies and children.
Although the Egyptians, like the Mesopotamians, used palm fronds and feathers in their umbrellas, they also introduced stretched papyrus as a material for the canopy, thereby creating a device that is recognizably an umbrella by modern standards.



MARKET POTENTIAL
The demand for umbrellas depends on climatic conditions, increase in population, change in social outlook and customs, export possibility etc. The maximum demands are in the rainy season. The demand for umbrellas is expected to increase by 7 to 10% during the next five years in our domestic market. 



History

About 2,000 years ago, the sun-umbrella was a common accessory for wealthy Greek and Roman women. It had become so identified as a "woman's object" that men who used it were subjected to ridicule. In the first century A.D., Roman women took to oiling their paper sunshades, intentionally creating umbrellas for use in the rain. There is even a recorded lawsuit dating from the first century over whether women should be allowed to open umbrellas during events held in amphitheaters. Although umbrellas blocked the vision of those behind them, the women won their case.
It was not until 1750 that the Englishman Jonas Hanway set out to popularize the umbrella. Enduring laughter and scorn, Hanway carried an umbrella wherever he went; not only was the umbrella unusual, it was a threat to the coachmen of England, who derived a good portion of their income from gentlemen who took cabs in order to keep dry on rainy days. (In the late 1700s and early 1800s, another name for an umbrella was a "Hanway.") Braving similar ridicule in 1778, John MacDonald, a well-known English gentlemen, carried an umbrella wherever he went.
Due to the efforts of Hanway, MacDonald, and other enterprising individuals, the umbrella became a common accessory. In nineteenth-century England, specially designed handles that concealed flasks for liquors, daggers and knives, small pads and pencils, or other items were in high demand by wealthy gentlemen. The umbrella became so popular that by the mid-twentieth century, if not earlier, etiquette demanded that the uniform of the English gentleman include hat, gloves, and umbrella.
Among the qualities one might look for in an umbrella is the comfort of the handle, the ease with which the umbrella is opened and closed, and the closeness with which the canopy segments are connected to the ribs.

Raw Materials

Materials used to manufacture umbrellas have, of course, improved through the years. One of the most important innovations came in the early 1850s, when Samuel Fox conceived the idea of using "U" shaped steel rods for the ribs and stretchers to make a lighter, stronger frame. Previously, English umbrellas had been made from either cane or whalebone; whalebone umbrellas especially
Modern umbrellas are made by a hand-assembly process that, except for a few critical areas, can be done by semi-skilled workers. First, the shafthether wood, metal, or fiberglasss made, and then the ribs and stretchers are assembled. Next, the nylon canopy is hand-sewn in sections (a typical umbrella has 8 sections).
Modern umbrellas are made by a hand-assembly process that, except for a few critical areas, can be done by semi-skilled workers. First, the shafthether wood, metal, or fiberglasss made, and then the ribs and stretchers are assembled. Next, the nylon canopy is hand-sewn in sections (a typical umbrella has 8 sections).
were bulky and awkward. Rounded ribs and stretchers are frequently seen today only on parasols and patio umbrellas. Advancements in metal-producing technology have made rounded metal ribs and stretchers more feasible, however, and some manufacturers produce umbrellas with these components. Modern rain umbrellas are made with fabrics (nylon, most commonly) that can withstand a drenching rain, dry quickly, fold easily, and are available in a variety of colors and designs.

The Manufacturing Process

Modern umbrellas are made by a hand-assembly process that, except for a few critical areas, can be done by semi-skilled workers. Choices of materials and quality control occur throughout the manufacturing process. Although a well-made umbrella need not be expensive, almost every purchasing decision impacts directly upon the quality of the final product.
Collapsible rain umbrellas that telescope into a length of about a foot are the most recent innovations in umbrellas. Though mechanically more complicated than stick umbrellas, they share the same basic technology. Among the differences between a stick umbrella and a collapsible umbrella is that the collapsible uses a two piece shaft that telescopes into itself, and an extra set of runners along the top of the umbrella. This section will focus on the manufacture of a stick umbrella.

The shaft

  • 1 The stick umbrella will usually begin its life as a shaft of either wood, steel, or aluminum, approximately 3/8 inch (.95 centimeter) thick. Fiberglass and other plastics are occasionally used, and in fact they are common in the larger golf umbrella. Wood 
    The fabric for the canopy is usually a nylon taffeta with an acrylic coating on the underside and a scotch-guard type finish on the top. The coating and finish are usually applied by the fabric supplier. Other fabrics besides nylon might be used according to need or taste; a patio umbrella attached to an outdoor table does not have to be lightweight and waterproof as much as a customer might want it to be large, durable, and attractive.
    The fabric for the canopy is usually a nylon taffeta with an acrylic coating on the underside and a scotch-guard type finish on the top. The coating and finish are usually applied by the fabric supplier. Other fabrics besides nylon might be used according to need or taste; a patio umbrella attached to an outdoor table does not have to be lightweight and waterproof as much as a customer might want it to be large, durable, and attractive.
    from various types of ash trees, including Rowan wood from Asia, is among the popular choices for a sturdy wood shaft. While wood shafts are made using standard wood-shaping machines such as turning machines and lathes, metal and plastic shafts can be drawn or extruded to the proper shape.

Ribs and stretchers

  • 2 The ribs and stretchers are assembled first, usually from "U" shaped or channeled steel or other metal. Ribs run underneath the top or canopy of the umbrella; stretchers connect the ribs with the shaft of the umbrella. The ribs are attached to the shaft of the umbrella by fitting into a top notch thin, round nylon or plastic piece with teeth around the edges, and then held with thin wire. The stretchers are connected to the shaft of the umbrella with a plastic or metal runner, the piece that moves along the shaft of the umbrella when it is opened or closed.
  • 3 Next, the ribs and stretchers are connected to each other with a joiner, which is usually a small jointed metal hinge; as the umbrella is opened or closed, the joiner opens or closes through an angle of more than 90 degrees.
  • 4 There are two catch springs in the shaft of each umbrella; these are small pieces of metal that need to be pressed when the umbrella is slid up the shaft to open, and again when the umbrella is slid down the shaft for closing. Metal shafts are usually hollow, and the catch spring can be inserted, while a wood shaft requires that a space for the catch spring be hollowed out. A pin or other blocking device is usually placed into the shaft a few inches above the upper catch spring to prevent the canopy from sliding past the top of umbrella, when the runner goes beyond the upper catch spring.

Canopy

  • 5 The cover or canopy of the umbrella is hand sewn in individual panels to the ribs. Because each panel has to be shaped to the curve of the canopy, the cover cannot be cut in one piece. Panels are sewn at the outer edges of the ribs, and there are also connections between the ribs and the panels about one-third of the way down from the outer edge of the canopy. Each panel is cut separately from piles of materials called gores; machine cutting of several layers at once is possible, although hand-cutting is more typical. The typical rain umbrella has eight panels, although some umbrellas with six panels (children's umbrellas and parasols usually have six panels) and as many as twelve can occasionally be found. At one point, the number of panels in an umbrella may have been an indication of quality (or at least of the amount of attention the umbrella maker paid to his product). Today, because of the quality of the material available to the umbrella maker, the number of panels is usually a matter of style and taste rather than quality.
    The fabric used in a good-quality umbrella canopy is usually a nylon taffeta rated at 190T (190 threads per inch), with an acrylic coating on the underside and a scotch-guard type finish on the top. The coating and finish are usually applied by the fabric supplier. Fabric patterns and designs can be chosen by the manufacturer, or the manufacturer might add his own patterns and designs using a rotary or silk screening process, especially for a special order of a limited number of umbrellas. Similarly, other fabrics besides nylon might be used according to need or taste; a patio umbrella attached to an outdoor table does not have to be lightweight and waterproof as much as a customer might want it to be large, durable, and attractive.
  • 6 The tip of the umbrella that passes through the canopy can be covered with metal (a ferrule) that has been forced over and perhaps glued to the tip, or left bare, depending on the desire of the manufacturer. The handle is connected to the shaft at the end of the process, and can be wood, plastic, metal, or any combination of desired ingredients. Though handles can be screwed on, better-quality umbrellas use glue to secure the handle more tightly.
  • 7 The end tips of the umbrella, where the ribs reach past the canopy, can be left bare or covered with small plastic or wood end caps that are either pushed or screwed on, or glued, and then sewn to the ends of the ribs through small holes in the end caps.
  • 8 Finally, the umbrella is packaged accordingly and sent to customers.
FINANCIAL ASPECTS

1 .Land & Building
Covered area 100 sq. meter – Rented

Rs.1500/PM

2. Machinery & Equipments
a) Sewing Machine 1 No4500
b) Hand Tools – Scissors, chisel, hammer, stamping block, punches, measuring tape (tailors) etc.1500
c) Furniture – Racks, cutting table etc10000
Total16000
3. Working Capital (per month) 

a) Staff & Labour (Salary & Wages) (PM)
S No.DesignationNoRate(Rs)Amount(Rs)
1Manager130003000
2Skilled Workers220004000
3Un-skilled worker115001500
4Clerk115001500
 Plus perquisites @ 15% of salaries  
10000
1500
 Total  11500

(1)
b) Raw materials (PM)
1) Steel Ribs
2) Plastic handles – various designs                   )
3) Steel tubes (chrome plated)                          )
4) Ferrule caps                                                 ) 800 Nos. – Double
5) Notches                                                       ) fold & thrible fold types
6) Runners                                                       ) umbrella (500/550 mm size)
7) Spring ball cups                                           )
8) Water proof cloth                                        ) Rs.55,000/-                                                                          (2)
c) Other expenditure (PM)
1) Rent
2) Electricity, Water
3) Consumables
4) Postage & Sationery
5) Travelling & Freight expenses
6) Packing & forwarding
7) Sales promotion
---- ----------
Total 

1,500
300
300
700
3000
1500
1500
8800


(3)
d) Total recurring expenditure (PM) 
a + b+ c                        
  75,300
e) Total working capital (for 3 months)  2,25,900
f) Total Capital Investment2,41,900

Financial Analysis
 
1. Cost of Production (PA) 
a) Recurring expenditure9,03,600
b) Interest on Capital Investment @ 18%43,542
c) Depreciation on machinery & equipment @ 10% 1,600
Total9,48,742

2. Turnover/Total Sales (P.A.)
 
By sale of 9,600 Nos. (800 doz.) 500/550mm Umbrellas – 5000 Nos. two-fold @ Rs.105/- each, 4600 three-fold @ Rs.125/each11,00,000

3. Net Profit (PA)
 
11,00,000 – 9,48,742= 1,51,258
Profit=Rs.1,51,258/-

4. Net Profit Ratio
 
Profit x 100               = 1,51,258 x 100
--------------------   --------------------
Total Sales                   11,00,000 
= 13.75%

5. Rate of Return
Profit x 100              = 1,51,258 x 100
--------------------   --------------------
Capital Investment               2,41,900

Say = 62.50% 
=62.53%

6. Breakeven point
Fixed Cost x 100
--------------------------
Fixed cost + Profit 
 

Fixed Cost (PA)
Rs.
1) Rent18,000
2) Interest on Capital @ 18%43,542
3) Depreciation on Machinery @ 10%1,600
4) 40% of Salary & Wages4,600
5) 40% of other expenses (excluding rent)3,520
Total71,262

BEP =
           71,262 x 100
             ---------------------      = 35.19%
                 71,262 + 1,51,258) 
 

SUPPLIERS OF MACHINERY:
1. M/s. Appliances Corner
    Chettiyangadi Junction
    Trichur-1.
2. Local dealers of Usha & Merrit Sewing Machine

SUPPLIERS OF UMBRELLA PARTS
1 .M/s. All India Tube Corporation
    Mahal Industrial Estate
    Mahakali Caves Road
    Andheri East, Bombay-400 093
2. M/s. A.1. Tube Corporation
    B-15, First Floor
    Mohd. Kishore Industrial Estate
    Off Mahakali, Caves Road
    Andheri East, Bombay-400 093
3. M/s. M.P. Metal Industries
    Kalbadevi Road, Bombay-400 002
4. M/s. Lion Engg. Company
    94, Eat Avanimoola Street
    Madurai, Tamilnadu

5. Excell Engg. Company
    Plot No.18, Street No.3
    Maharashtra Indl. Development Corpn. (MIDC)
    Andheri East, Bombay-400 093
6. M/s. Sunil & Company (P) Ltd.
    Mumbai,, Maharasthra (India)
7. M/s. Kothari & Co.
    71, Wheeler Road
    Cox Town, Bangalore-560 005
8. M/s. Three M. Metal Manufacturing Co.
    82/84, Babujanu Road, Bombay-400 002
9. M/s. Lakoda Plastics
    10/17, Sadguru Kadam Baba Lane
    Dr. M.B. Velker Street
    Bombay-400 002

10. M/s. Saint Nagjee Purushotham & Co. (P) Ltd.
      P.B. No.36, Trikoil Lane
      Big Bazar, Calicut-673 001
11. Shree Tarakeshwar Supply Co.
      1/8, Jayamohan Shah Lane
      Calcutta-700 007

12. M/s. Goyal Brothers
     10, West Sardar, Thana Road
     New Delhi-110 006

13. M/s. Fujee Umbrella Pvt. Ltd..
      Mysore-570 016

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