22

Watch Strap Metallic

PRODUCT CODE : 349906009

QUALITY AND STANDARDS : Buyers’/Manufacturers’ own specifications
PRODUCTION CAPACITY : Qty. : 30,000 Nos. (per annum)
Value : Rs. 13,44,000
MONTH AND YEAR : April, 2003
OF PREPARATION
PREPARED BY : Small Industries Service Institute
22, Godown, Industrial Estate,
Jaipur-302006
(Rajasthan).
Phone Nos.: 212098, 213099
Fax No. : 0141-210553
E-mail: [email protected]

INTRODUCTION of life, male, female, educated,

uneducated, young and old etc. Watch
There are many types of Watch strap being an integral part of wrist
Straps, made of Leather, Nylon, Stainless watch, it has a good market for supply
Steel and Brass etc. Watch straps are to meet original demand and in the
made in various designs including replacement market. Apart from the
ornamental one, being used by the large scale wrist watch manufacturers,
public now a days. In this Project Profile, such as Titan, HMT, Maxima, Allwyn,
it is intended to manufacture stainless Timex etc., a good number of small
steel watch straps out of stainless steel scale units in many States have also
sheet scrap and wire. Since the scrap come up with their phased production
of required gauge is easily available from programme for wrist watches. The
the manufacturers of stainless steel demand for the production of the item
utensils, it is comparatively more is therefore likely to increase rapidly in
profitable than manufacturing these near future. Further, due to durability
items out of virgin stainless steel sheets of the product it is preferred over all
or coil. other types of straps.
Moreover, due to fast changes in the
MARKET POTENTIAL design and liking of people, there is good
Wrist watch has become necessity for replacement prospects for the product
the present day life of human beings. It as well. Therefore, there is a good and
is being used by people from all walks assured future for the product.
 W ATCH ST R A P METALLIC 113

B ASIS AND PRESUMPTIONS On the basis of the report

financial Institutions may take 8
(i) This report is worked out on 75% to 10 weeks’ time for sanctioning
capacity utilization, on single and disbursing the loan.
shift and 300 working days per Accordingly, orders for plant and
year. machinery may be finalized and
(ii) The machinery and equipment placed. Simultaneously, orders
are of standard make. for purchase of raw materials are
(iii) The cost of raw materials and also to be finalized and
other expenditure is approximate recruitment of key staff is to be
and based on current market done. This would require 3 to 4
rates. weeks.
(iv) The period for achieving 4. The plant and machinery
envisaged capacity utilization received may be installed and
estimated to be one year after commissioned within 4 to 6
commencement of trial production. weeks time and the Workshop
(v) Interest rate for fixed and working staff should also be recruited.
capital has been calculated at The production may be
16% per annum. commenced after trial run of the
installed plant and machinery.
(vi) Pay back period would
commence after a period of 12
months and the repayment period
TECHNICAL ASPECTS
is estimated as 3 years. Process of Manufacture
The Metallic Watch Straps consist of
IMPLEMENTATION SCHEDULE
7 to 8 components according to its
1. The entrepreneur has to arrive at design. These components are made by
a decision in order to select this balaking, piercing, and binding as per
product. The guiding factor in this the requirements, and then these
regard would be the market components are sent for assembly to
potential, demand and supply form a chain. These chain pieces are
gap and availability of resources. grounded to size on a surface grinder.
It may take 2 to 3 weeks. Mat finish on the straps can also be
2. After selecting the product, the given by using surface grinder. After
entrepreneur has to get mating, straps may be polished on a
provisional registration from DIC, buffing lathe. Links, locks and barrels
so that he can apply for allotment are fitted to these pieces with the help
of land, power, etc. of spring loaded pins. Then these
3. In order to obtain financial assembled straps are cleaned in
assistance from the financial kerosene oil to remove the luster
Institutions like Commercial particles. Finally, the final buffing is
Banks or State Financial done to give polishing touch on straps.
Corporations, a detailed project These straps are packed suitably and
report is required to be prepared. marketed.
114 W ATCH ST R A P METALLIC

Quality Control and Standards Sl. Description Ind/ Qty. Rate Total
No. Imp Nos. (Rs.) (In Rs.)
Most of the watch manufacturers like
Titan, HMT, Alwyn, Maxima, Timex etc., With 0.5 HP
motor.
have formulated their own specifications
and design for this product, and these 4. Buffing lathe -do- 1 8,000 8,000
with 1 HP Motor.
may be obtained from them for supply
5. Disc and Belt -do- 1 8,000 8,000
to them. However, in view of sand grinding
sophistication and individual liking the Machine,
appearance of the straps must be good 1200 mm x
150 mm with
and have free link movement and endless belt,
reliable locking system along with titling type table
appropriate polish. and with 0.5
HP motor.
Production Capacity (per annum) 6. Pedestal -do- 1 4,000 4,000
grinder 200
Quantity 30,000 nos. mm wheel dia.
with 0.5 HP
Value Rs. 13,44,000
motor.
7. Surface grinder, -do- 1 50,000 50,000
Motive Power 15 HP. table size 550
mm x 200 mm
Pollution Control with 1 HP motor.
The activity does not create any 8. Work bench, -do- L.S. - 30,000
pollution. However, proper ventilation is Vice, Hand tools,
Dies, Punches,
provided for safe working conditions. Measuring
tools etc.
Energy Conservation 9. Installation - - - 17,900
General awareness is required for and Electrification
energy conservation. @ 10% of the
cost of Machines

FINANCIAL ASPECTS 10. Office furniture -

and equipments.
- - 15,000

A. Fixed Capital (iii)Pre-operative - - - 5,000

Expenses
(i) Land and Building (In Rs.) Total 2,16,900

400 sq. meter (rented) 4,500 Say 2,17,000

(ii) Machinery and Equipment

B. Working Capital (per month)
Sl. Description Ind/ Qty. Rate Total (i) Personnel
No. Imp Nos. (Rs.) (In Rs.)
1. Inclinable Ind. 1 35,000 35,000 Sl. Designation Nos. Salary Amount
Power Press No. (Rs.) (In Rs.)
10 Tonnes with 1. Manager 1 4,000 4,000
5 HP Motor
2. Supervisor-Cum- 1 3,000 3,000
2. Power Press -do- 2 20,000 40,000 Inspector
with 2 HP Motor
3. Skilled Workers 4 2,500 10,000
3. Bench Drill -do- 1 4,000 4,000
12 mm cap. 4. Un-Skilled Workers 4 2,000 8,000
 W ATCH ST R A P METALLIC 115

Sl. Designation Nos. Salary Amount C. Total Capital Investment

No. (Rs.) (In Rs.)
(i) Fixed Capital Rs. 2,17,000
5. Clerk-cum-Accountant 1 2,500 2,500
6. Peon 1 2,000 2,000 (ii) Working Capital (for 3 months) Rs. 2,48,000

7. Chowkidar/Watchman 1 2,000 2,000 Total Rs. 4,65,000

Total 31,500
FINANCIAL ANALYSIS
Additional perquisites @ 15% 4,725
Total 36,225 (1) Cost of Production (per year) (In Rs.)
Say 36,200 Recurring Expenditure 9,92,000

(ii) Raw Materials Depreciation on Machinery and

Equipments @ 10% 17,900
Sl. Description Qty. Rate Amount
No. (Rs.) (In Rs.) Depreciation on Office Furniture @ 20% 3,000

1. Stainless Steel/Scrap 0.9 34,000 30,600 Interest on total capital investment @16% 74,400
16/20/26/28/30 MT
SWG Total 10,87,300

2. Spring Bars and Link 108 40 4,320 Say 10,87,000

Bars
(2) Turnover (per year)
3. Packaging Material L.S. - 1,080
Total 36,000 Sl. Item Qty. Rate Total
No. (Rs.) (In Rs.)
(iii) Utilities (In Rs.)
1. Stainless Steel 30000 44 13,20,000
Electric Power @ 4 per unit 2,500 Watch Straps Nos. each
Water Charges L.S. 350
2. Sale of Scrap 2 MT 12000 24,000
Total 2,850
Total 13,44,000
(iv) Other Contingent Expenses (Rs.)
(3) Net Profit (per year) (Before Taxation)
Rent 4,500
Profit = Turnover - Cost of Production
Transport and Cartage Charges 500
= Rs. 13,44,000 - 10,87,000
Postage and Stationery 300
= Rs. 2,57,000
Telephone 1,000
(4) Net Profit Ratio
Publicity 300
Insurance/Taxes 100 = Net Profit per year × 100
Turnover per year
Repair and Maintenance 400
= 257000 × 100
Miscellaneous Expenses 500 1344000
Total 7,600 = 19.12%
(v) Total Recurring Expenditure (per month) (5) Rate of Return
[(i) + (ii) + (iii) + (iv)] = Rs. 82,650 = Net Profit per year × 100
Total Capital Investment
(vi) Total Working Capital for 3 Months
= 257000 × 100
3 × 82650 = Rs. 2,47,950 4,65,000

Say 2,48,000 = 55.26%

116 W ATCH ST R A P METALLIC

(6) Break-even Point 2. M/s. Gurusharan Industries

Fixed Cost (In Rs.) 920, New Colony,
Rent 54,000
Opp. Railway Station (Old),
Depreciation on Machinery 17,900
Faridabad–121001 (Haryana).
Depreciation on office furniture 3,000 3. M/s. Lefoot Machines Pvt. Ltd.
Interest on total capital investment 74,400 110 (N.P.), SIDCO Industrial
40% of Salary and Wages 1,73,760
Estate, Ambattur,
Chennai - 98.
40% of other contingent expenses 14,880
(excluding rent) 4. M/s. Imperial Products of India
Total 3,37,940 414–A, Industrial Area - II,
Say 3,38,000 Chandigarh - 160002.
B.E.P. 5. M/s. Atlas Works Pvt. Ltd.
= Fixed Cost × 100 S. No. 119,
Fixed Cost + Profit Ribbon Street,
= 338000 × 100 Kolkata.
338000 + 257000
338000 × 100
6. M/s. International Machine Tools
=
595000 Corporation
= 56.8% 5 Bank Street,
P.O. Box No. 799,
Addresses of Machinery Equipment Behind State Bank,
Suppliers Fort, Mumbai - 400023.
1. M/s. SARB Presses Pvt. Ltd.
P. No. 52, Sector–24, Raw Materials Available in the Local
Faridabad-121001 (Haryana) Market.