8

Elastic Tape

PRODUCT CODE : 267904002

QUALITY AND STANDARDS : IS 9686:1980
MONTH AND YEAR : May, 2003
OF PREPARATION
PREPARED BY : Small Industries Service Institute
Janak Kuti, Chambaghat,
Solan-173213 (H.P.)

INTRODUCTION B ASIS AND PRESUMPTIONS

Garment forms one of the basic 1. This project is based on single
needs of human being. In a country like shift basis and 300 working days
India with growing population, the in a year.
increase in demand for the readymade 2. Time period for achieving
garments is a continuing process. A maximum capacity utilisation is
good dress should give importance to considered from 3rd year from
three basic parameters. These are the date on which production is
comfort to wearer, matching colours and started.
climate adjustments.
3. Rental value indicated in the
Elastic tapes are required for the project is Rs. 20 per sq. mt.
purpose of holding the garments tightly
when it is worn by the persons. In 4. Costs of machinery and
addition to providing comfort, it also equipment/material indicated
increases the life of the garments. refer to a particular make and
Generally, the elastic tapes are used in approximately to those prevailing
undergarments like briefs, panties, at the time of preparation of this
brassiers, baggies, childrens dress etc. project.
It is also used in suitcases for inside 5. Cost of installation and
straps for better grip holding and in car electrification is taken @ 10% of
seats for safety driving etc. cost of machinery and
equipment.
MARKET POTENTIAL 6. Non-refundable deposits, project
report cost, trial production,
With the increasing demand for the
security deposit with Electricity
under gar ments and readymade
garments, there is enough scope for the Board etc. are taken under pre-
garment ancillary units including the operative expenses.
elastic tapes. There is always good 7. Depreciation has been
demand for the elastic tapes. considered as 10% on plant and
 E LASTIC TA P E 41

machinery, 15% on office TECHNICAL ASPECTS

furniture and fixtures and 20% on
workshop accessories. Process of Manufacture
8. Interest on capital investment Different types of yarn like viscose,
has been taken @ 14% per nylon and cotton are placed on creel
annum. for working purpose as per design. Warp
is prepared on warping machine. It is to
IMPLEMENTATION SCHEDULE be ensured that no loose threads are
present in the warp sheet in order to
Sl.No. Activity Period
run the machine without stoppage.
1. Selection of site/working 1 month Prepared warp beam is shifted to needle
shed loom and individual threads are drawn
2. Formation of company 1 month as per design. When the machine starts
(ownership/partnership) weaping, the woven tapes will come out
3. Registration with 1 month of the machine and finally wound on the
Commissioner of rolls, After finishing on finishing
Industries/ DIC machine, rolls are packed into polythene
packs for supply to the customers.
4. Procurement of machin- 1 month
nery and equipment Quality Control and Standards
5. Arrangement of finance 3 months The product should be clean from
(Term loan and working oil stains, cuts, any other defects etc.
capital) Care should be taken while
6. Selection of market 1 month manufacturing to avoid occurrence
channel of the above faults.

7. Plant erection and 2 weeks Production Capacity (per annum)

electrification
Product Quantity Amount (In Rs.)
8. Arrangement of raw 1month
Elastic Tape 16,80,000 84,00,000
material including
packaging material Motive Power
9. Recruitment of manpower 1 month 25 HP is required to run this unit.
10. Miscellaneous works 2 months
like power/water Pollution Control
connection etc. Although not required, however,
Note: Considering that some of the entrepreneurs have to contact State
above activities may be Pollution Control Board for necessary
overlapping, the project guidance.
implementation will take a total
Energy Conservation
period of six months
approximately for starting the Energy can be saved by proper house-
production. keeping.
42 E LASTIC TA P E

FINANCIAL ASPECTS B. Working Capital (per month)

(i) Staff and Labour Wages
A. Fixed Capital
Sl. Designation Nos. Rate Amount
(i) Land and Building No. (In Rs.) (In Rs.)
Covered area 100 sq.mt. 1. Plant Manager 1 8,000 8,000
Uncovered area 200 sq.mt. 2. Sales Officer 1 5,000 5,000
Rent/month @ Rs. 20/sq.ft. 4,000 3. Accountant/Cashier 1 3,500 3,500

(ii) Machinery and Equipment 4. Peons 2 2,250 4,500

5. Supervisors 1 4,000 4,000
Sl. Description No. Rate Amount
No. (In Rs.) (In Rs.) 6. Skilled workers 4 3,500 14,000
1. High speed needle 2 5,00,000 10,00,000 7. Unskilled workers 2 2,250 4,500
loom 12 shaft front
Total 43,500
reed 12" without
back frame and Perquisites@ 20% 8,700
beam Model 6/27
Varitex G.Total 52,200

2. Warping machine 1 12,00,00 12,00,00 (ii) Raw Materials (per month)

type b 350 suitable
Sl. Description Qty. Rate/ Amount
or 350 mm dia and
No. Unit(Rs.) (In Rs.)
250 mm width with
warp speed 180 mts./ 1. Crimped Nylon 1,000 200 2,00,000
min.max. yarn 1/120
3. Creel for 250 ends 1 80,000 80,000 2. Viscose 450 Dn. 750 90 67,500
4. Aluminium flanged 50 800 40,000 yarn
beams bolted 3. 32 s Cotton yarn 750 105 78,750
5. Finishing machine 1 2,25,000 2,25,000 4. Latex thread 775 100 77,500
series FS-2 main
drum guide rollers 5. Glue/starch 100 10 1,000
made of SS 304 dia
Total 4,24,750
800mm, length
1210mm, 36 heaters,
maximum speed 36 (iii) Utilities (Rs.)
mts./min. Electricity bill Water charges 12,500
6. Back frames 3 10,000 30,000 Total 12,500
7. Measuring and 1 40,000 40,000
winding machine (iv) Other Contingent Expenses (per month)(Rs.)
suitable for making
(a) Rent 4,000
rolls upto 30mm.dia
8. Fire fighting LS 10,000 10,000 (b) Postage/Stationery 500
equipments (c) Repair and maintenance 12,792
9. Lab. equipments LS 10,000 10,000
(d) Transport/travelling Charges 1,000
Total 15,55,000
(e) Insurance 1,000
(iii) Other Fixed Assets (Rs.)
(f) Telephone bills 2,000
(a) Erection and installation 1,53,500
(g) Miscellaneous 1,000
(b) Office furniture 20,000
Total 22,292
(c) Pre-operative expenses 20,000
Total 1,93,500 (v) Total Recurring Expenses 5,11,742
Total Fixed Capital 17,48,500 (per month)
 E LASTIC TA P E 43

(vi) Total Working Capital for Rs. 15,35,225 Fixed Cost (Rs.)
3 months
40% of wages of staff and labour 2,50,560
C. Total Capital Investment 40% of other contingent expenses 83,000
(i) Machinery and equipment Rs. 17,48,500 Insurance 12,000
(ii) Working capital for 3 months Rs. 15,35,225 Total 10,14,782

Total Rs. 32,83,725 B.E.P. = FC 100

FC + Profit
MACHINERY UTILISATION = 1014782 100
1014782+797879
Capacity utilisation is considered as
75% of installed capacity. = 56%

FINANCIAL ANALYSIS Addresses of Machinery and

Equipment Suppliers
(1) Cost of Production (per year) (Rs.)
1. M/s. Baku Bhai Ambalal
Recurring expenses 61,40,900
3-Madrwah Estate,
Depreciation on machinery @ 10% 1,53,500 Saki Vihar Road, Sakinaka,
Depreciation on office furniture, other 8,000 Mumbai-72.
fixed assets @ 20% 2. M/s. Prashant Engg. Co.
Interest on total investment @ 14% 4,59,721 Plot No. 4/1-A,
Total 67,62,121 GIDC Estate, Vatva,
(2) Turnover (per year) (Sales)
Ahmedabad-382445.
Product Nos. Rate Amount Addresses of Raw Material
(In Rs.) (In Rs.)
Suppliers
Elastic Tape 16,80,000 4.50 75,60,000
1. M/s. Moupan Ltd.
Total 75,60,000
Modi Nagar, (U.P.)
(3) Net Profit (per year) Rs. 79,7,879
2. M/s. Lohia Machine Ltd.
(4) Net Profit Ratio (Net profit/Turnover 10.50%
(per year) (Fibre Div.)
(5) Rate of Return on Investment 24.2% C-3 and 4, Panki Indl. Estate,
(Net Profit/Total Capital Investment) Kanpur.
(6) Break-even Point
3. M/s. Vardhman Spinning and
Gen. Mills Ltd.
Fixed Cost (Rs.)
Chandigarh Road, Ludhiana.
Depreciation 1,61,500
4. M/s. India Spinners and Processors
Rent 48,000
5309, Basti Harphool Singh,
Interest on capital investment 4,59,721
Delhi-110006.