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 Building	Amount (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.	Description	Imp./ Ind.	Qty.	Rate (Rs.)	Value (Rs.)
1.	Flat bed single needle industrial sewing machine power operated 1/2 HP motor	Ind.	5	10000	50000
2.	Cylinder bed single needle industrial sewing machine power operated 1/2 HP motor	"	2	15000	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.	Designation	No.	Salary (Rs.)	Total (Rs.)
1.	Production Manager	2	8000	16000
2.	Accountant	1	5000	5000
3.	Salesman	1	5000	5000
4.	Clickers	4	4000	16000
5.	Stitchers	14	4000	56000
6.	Unskilled Workers	8	4000	32000
7.	Sweeper/Watchman	2	3000	6000
	Total			136000
	Add perquisites @ 22% on Salary			29920
	Total			165920

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

Sl. No.	Description	Qty.	Unit	Rate @/unit (Rs.)	Value (Rs.)
1.	Chrome tanned Split leather (3.5 Pairs per kg.)	3571	Kg	50	178550
2.	Thread	12500	Pairs	0.75	9375
3.	packing material (Carton pack for 100 pairs, poly packing for individual pairs)	126	No.	40	5040
	Total				192965

(iii) Utilities (per month)

S. No.	Description	Amount (Rs.)
1.	Power	3000
	Total	3000

(iv) Other Contingent Expenses (per month)

Sl. No.	Description	Amount (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.	Description	Amount (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.	Description	Amount (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.	Description	Amount (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.	Items	Qty.	Rate (Rs.)	Value (Rs.)
1.	Industrial hand gloves	150,000 pairs	35 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.	Description	Amount (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

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 person	Self
Skilled Workers	8
Semi skilled workers	10
Helpers	5
Supervisor	1
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 Contribution	8.24
Term Loan	15.42
Total	23.66

11) Profitability:(70%capacity)

	Rs. lakhs
Sales	58.80
Raw material	21.22
Salary	18.00
Utilities	2.90
Stores & Spares	0.30
Repairs & Maintenance	0.36
Selling expenses	5.88
Administrative expenses	0.60
Depreciation	1.70
Interest on T.L	2.00
Interest on W.C	0.60
Cost of production	53.29
Profit	5.51

12) Requirement of Working Capital

		Margin	W.C	Margin Money
Raw material	15 days	30%	1.06	0.32
Stock of finished goods	15 days	25%	2.18	0.55
Working expenses	1 month	100%	1.50	1.50
Sale on credit	15 days	25%	2.94	0.73
Margin money for W.C				3.10

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