VAGHELA MILS MBA Porject Report Prince Dudhatra

8/6/2019 VAGHELA MILS MBA Porject Report Prince Dudhatra

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Product Project ReportOn

JEANSVAGHELA MILLS

Prepared ByVaghela Amit H.

Class

T.Y.B.B.A.

Roll No.

Seat No

CollegeGrace College of Commerce

Rajkot

Academic Year2006-07

Submitted ToSaurashtra University

Guided By

Ms. Bhavna Vyas

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DECLARATIONDECLARATION

I, the undersigned Amit H.Vaghela student of T.Y.B.B.A. here by

declare that the project work presented in this

report is my own work and has been carried

out under the supervision of Ms. Bhavna

Vyas of Shree H.N. Shukla Collage, Rajkot.

This work has not been previously

submitted to any other university for any

examination.

Date : Student

signature

Place : RAJKOT Amit H.

VaghelaT.Y.B.B.A.

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PREFACEPREFACE

Small is beautiful, so also, small scale

industry. It is significant segment of the Indian

economy & the objectives underlying its

development are increase in the supply of

manufactured goods, the promotion of capital

formation, the development of indigenous

entrepreneurial talents and skills and the

creation of employment opportunities.

Students with initiative, creativity and

Indian orientation have wonderful opportunities

of becoming successful entrepreneurs of small

scale business unit which have attained a lot of

protection and encouragement from govt.

The subject Entrepreneurship &

Management of small scale business

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adds further to the vocational guidance

through the course of Bachelor of Business

Administration (B.B.A.).

ACKNOWLEDGEMENTACKNOWLEDGEMENT

I feel great pleasure to present this

report of Readymade clothes. I would like to

heartily thanks to all the persons who havehelped me in this report and give me adequate

guidance and information for preparing this

report.

I am thankful to Ms. Bhavna Vyas

who isguide of our subject.

Date : Student

signature

Place : RAJKOT Amit H.

Vaghela

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T.Y.B.B.A.

INDEXINDEX

Sr.No.

Particulars PageNo.

1. INTRODUCTION TO SSI 72. PROJECT AT GLANCE 83. PARTNERS BACKGROUND 104. JUSTIFICATION OF LOCATION 135. PRODUCT DETAILS 14

6. RAW MATERIAL AND ITS SOURCES 167. DETAILS OF SUPPLIERS 178. PRODUCTION PROCESS 189. STAFF AND LABOUR 2310.

ADMINISTRATIVE WORK 26

11.

FINANCIAL DETAILS 27

12.

BEP ANALYSIS 28

13.

FIXED ASSETSAND WORKING CAPITAL 29

14.

COST OF PRODUCTION & SALESDETAILS

31

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15.

PROFITABILITY ANALYSIS & RATIOANALYSIS

33

16.

MARKET POTENTIAL 35

17.

COMPETITORS & COMPETITIVESTRATEGY

36

18.

RISK FACTORS 37

19.

FUTURE PLANS 38

20

.

CONCLUSION 39

INTRODUCTIONINTRODUCTION

Cottage & small scale industry have

flourished in India since the early times. Even

today they are a principal source of income &

employment and their product find ready

market in the country as well as abroad.

Small scale industry in India roughly

provides employment to about 4.4 million

people and constitutes a large position of the

countrys exports. The govt. of India is well

aware of the importance of small scale industry

in our economy and growth of small scale

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industry i.e. establishment of various SSIs. All

India Boards that give technical, financial and

other relevant guidance to small scaleindustries, other benefits & concessions.

Our objective is to produce ready madeOur objective is to produce ready made

JEANSJEANS

PROJECT AT A GLANCEPROJECT AT A GLANCE

Name of the company

EVEREST MILLS

Address of the company

EVEREST MILLS,G- 180 Lodhika GIDC

MetodaRajkot (Gujarat)

Scale of the organization

Small scale industry

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Type of firm

Partnership Firm

Nature of the product

JEANS

Proposed name of the Brand

Ambar

Partners names

Amit Vaghela

Mitesh Vaghela

Sanjay Asaraniya

Estimated cost of the project61, 28,000

Market Area

Limited to Gujarat & Maharashtra

SSI Registration No.

Has been applied for

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PARTNERSPARTNERS

BACKGROUNDBACKGROUND

Partner - 1

Full Name : Amit Hemantbhai Vaghela

Age : 21

Address : SHIV KRUPABhakti Nagar -1GandhigramMo. 98981 73384

Academic

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Role in Unit : He will look afterAccounting, Finance &Personnel

Experience : 2 years of experience inmanaging accounting &financing department at ParkAvenue, Rajkot

FinancialContribution : 40%

Partner - 3

Full Name : Mitesh Hemantbhai

Vaghela

Age : 28

Address : Matru KrupaVrundavan SocietyUni. RoadRajkot 360001

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Ph : 2482432

Academic

Qualification : MBA advance diploma infashion designing

Role in Unit : He will look after production &designing

Experience : 2 years experience indesigning garments at ArvindMills ltd.

FinancialContribution : 30%

JUSTIFICATION OF LOCATIONJUSTIFICATION OF LOCATION

Location of any industry plays a

dominant role in the success or failure of thecompany. It has been rightly said that the

mistake of selecting the wrong site cannot be

corrected without heavy losses. Selecting a

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proper site for establishing SSI thus increase,

as finance is a major constraint for a SSI unit.

The proposed location for the

establishment of manufacturing facilities for

my unit is GIDC, Metoda, Kalavad Road, Rajkot.

Govt. has declared this area as an industrial

area in past. Due to govt. incentives and

initiatives, this are has developed very well

with easy availability of infrastructure facilities.

PRODUCT DETAILPRODUCT DETAIL

Raw Material :

The main raw materials required to

produce the Readymade Clothsare Denim &

cotton clothes, thread, button, rivet, zip,

stickers etc.

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2. JACKATS, BARMUNDAS etc.2. JACKATS, BARMUNDAS etc.

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3. T-SHIRTS & PENTS3. T-SHIRTS & PENTS

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SOURCES OF RAW MATERIALSOURCES OF RAW MATERIALGenerally, the raw material ofJEANS

is available from outside Gujarat.

Denim Cloth Mumbai

Cotton Cloth Ahmedabad

Thread Sirmour

Button Delhi

Rivet Delhi

Zip Delhi

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Stickers Ahmedabad

DETAILS OF RAW MATERIAL

SUPPLIERS

1. PASUPATI SPG & WVG MILLS LTD.

Village Kheri Kata Amb

Nahan, Dist. Sirmour (H.P.)

2. ARVIND MILLS LTD.

Ahmedabad

3. RADHE MILLS LTD.

40, Govt. Industrial EstateKandiwali (E)

Mumbai 400006

Maharashtra

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INPUTSMaterialsLabourCapitalEnergy

Information

RESOUCRCES

OUTPUTS

ProductsService

Information

Products orServices

PRODUCTIONFUNCTION

4. SHRINATH INDUSTRY PVT. LTD.

Naraina Industrial Area,New Delhi

PRODUCTION PROCESSPRODUCTION PROCESS

Production is the basic activity of all

industrial units. All other activities revolvearound this activity. The end product of the

production activity is the creation of goods &

services for the satisfaction of human wants.

Production means to make finish product from

the raw material & semi finished goods

production. Process means how to produce the

product with the use of man, machine, material

& management.

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EVEREST MILLS produces theJEANS in the

following steps

Cutting Process

Over lock

Embroidery Work

Stitching Process

Fitting

Washing

Ironing

Folding

Packing

Storing

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FOLLOWING ARE THE STEPS OF THE

PRODUCTION PROCESS OF THE

JEANS

1. Cutting

EVEREST MILLS uses computerized

machine to cut the Garments. First of all the

designer give the programmed of all detail

aboutJEANS which include size & shape in

computer. In the computer arrange the

machines part for the cutting and the cutting

man put 10 pieces of clothes under cutting

table then he starts the machine to cut the

entire cloth into needed pieces when all the

pieces of cloth are ready for the over lock

process.

2. Over Lock

The over lock knight the cloth border

so that cloth cant be scattered. In the process

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of over locking the machine operator over lock

the needed pieces of cloth for stitching.

3. Embroidery Work

The EVEREST MILLS use the

computerized embroidery machine for the

embroidery work. The designer gives the

programmed in computer and makes article

design in cloths.

4. Stitching

The stitching of Garments is divided

into 20 parts of work division among the 20

machines. In this process the garments is to be

stitched through 10 chain stitch machines and

10 simple stitch machines. The machines are

arranged according to the stitching process.There are 3 departments of the Garments

stitching. Finally, Stitched Cloths go for the

further production process.

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5. Fitting

Fitting means to attach the button and

make button holder through the machine in

the JEANS. After if the CLOTHS go for the

rivets attach in the machine and then they are

ready for the acid wash.

6. Washing

After fitting theJEANS waterman wash

the in acid and detergent

powder in the washing machine and dry it in a

drier and thenJEANS are ready for the ironing.

7. Ironing

After washing all the JEANS ironed

through big electric iron it is ready for the fold.

8. Folding

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STAFF AND LABOURSSTAFF AND LABOURS

N

o.

Particula

rs

No. of

Employe

es

Monthl

y

Salary

Yearly

Salary

1 Manager 2 10,000 1,20,00

02 Accounta

nt

1 5,000 60,000

3 Designers 1 5,000 60,000Total 20,000 2,40,0

00

MIDDLE LEVELNo. Particula

rs

No. of

Employees

Monthl

y

Salary

Yearly

Salary

1 Salesman 5 10,000 1,20,0002 Clerk

Typist

1 1,500 18,000

3 Store

keeper

2 2,500 30,000

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Total 14,000 1,68,000

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N

o

Particulars No. of

Emp.

Monthl

ySalary

Yearl

ySalar

y1 Stain stitch machine

Operator

6 10,800 1,29,0

002 Simple stitch machine

Operator

10 16,000 1,92,0

003 Folding machine

Operator

1 1,500 18,00

04 Washing machine

Operator

1 1,000 12,00

05 Cutting & Fitting

machine Op.

1 1,500 18,00

06 Embroidery machine

Operator

2 3,000 36,00

07 Over Lock machine

Operator

1 1,200 14,40

08 Printing machine

Operator

1 1,200 14,40

0

9 Iron Machine Operator 1 1,000 12,00

010 Packing machine

Operator

1 1,000 12,00

011 Watchman 2 1,800 21,60

0

Total4,80,000

BOTTOM LEVEL


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ADMINISTRATIVE WORKADMINISTRATIVE WORK

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Levels of ManagementLevels Of

Management

Monthly

Salary

3 Monthly

Salary

Annual

SalaryTop Level 20,000 60,000 2,40,000Middle Level 14,000 42,000 1,68,000Lower Level 40,000 1,20,000 4,80,000

74,000 2,22,000 8,88,000


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I take maximum one and half year to

implement this type of project the time

required for completing each activity of theproject till commercial production is as follows:

FINANCIAL DETAILFINANCIAL DETAIL

Sources of FundSources of Fund

No.

Particulars Per.(%) Amt. (Rs.)

1 Owned Capital

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No.

Activity Completion Time

1 Preparation of Project 1 month

2 Selection of a site 2 months3 Registration of SSI 1 month4 Availability of finance 3 months5 Construction of building 7 month6 Arrangement of machines &

equipments

1 month

7 Erection & commissioning

including electrification

1 month

8 Recruitment of personnel &

Labour

2 month


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Mr. Sanjay Asaraniya

(30%)

Mr. Kamlesh Asaraniya

(40%)

Mr. Ashish Asaraniya

(30%)

60 % 36,76,800

2 Borrowed Capital 40 % 24,51,200Total 61,28,000

Total Working CapitalTotal Working CapitalBEP ANALYSISBEP ANALYSIS

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No. Particular Monthly 3 Monthly Annually1 Raw Material 4,80,00 14,40,000 57,60,0002 Utility 11,000 33,000 1,32,0003 Wages &

salary

74,000 2,22,000 8,88,000

4 Administrative

Exp.

8,000 24,000 96,000

5 Other

contingencies

3,000 9,000 36,000

Total 5,76,00

0

17,28,00

0

69,12,00

0

No. Particulars Amt. (Rs.)1 Sales 88,00,0002 Variable cost 64,20,0003 Fixed Cost 20,94,696


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PVR = Contribution x 100Sales

= 23, 80,000 x 100 =27.05%

88, 00,000

BEP (in Rs.) = Fixed CostPVR

= 20, 94,696 = 77,43,793 Rs.

27.05%

BEP (in %) = Fixed cost x utilizedcapacity

Contribution

= 20, 94,696 x 60 =52.81%

23, 80,000

FIXED ASSETSFIXED ASSETS

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Total Fixed AssetsNo

.

Particulars Amount

(Rs)1 Land & Building 11,50,0002 Plant & Machinery 19,00,0003 Other Fixed Assets 8,50,0004 Preliminary & Pre-operative Exps. 5,00,000

Total 44,00,00

0

Details of Land & Building

No

.

Particulars Area Rate Total

1 Land 2000 yards 225 4,50,0002 Building 2000 sq. ft. 350 7,00,000

Total 11,50,000

Details of Plant & MachineryNo

.

Particulars Qty. Amount

(Rs)1 Simple stitch machine 10 2,00,000

2 Chain stitch machine 6 4,80,0003 Folding machine 1 1,50,0004 Stain removing machine 1 70,0005 Washing machine 2 3,00,0006 Cutting machine 1 2,00,0007 Fitting machine 1 1,00,0008 Embroidery machine 2 1,00,0009 Iron 1 25,000

10 Printing machine 1 75,00011 Over lock machine 2 1,00,00012 Logo-making machine 1 25,00013 Handling equipment - 75,00014. Delivery Van 2 5,00,00015. Furniture - 3,50,000


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PROFITABILITYPROFITABILITY

RATIO ANALYSISRATIO ANALYSIS

Return on Investment

ROI = EBIT x 100Project Cost

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Particulars Amt. (Rs.) Amt. (Rs.)Sales 88,00,000

(Less) Variable CostRaw Material 57,60,000Utilities 84,000Manpower 4,44,000Admin. Exp. 96,000Other contingencies 36,000 64,20,000

Contribution 23,80,000

(Less) Fixed CostUtilities 48,000Manpower 4,44,000Depreciation 7,49,500Maintenance &

Repairs

1,77,500

Insurance 20,000Int. on loan 6,55,696 20,94,696

Profit Before Tax (PBT) 2,85,304(Less) 35% Tax 99,856Profit After Tax (PAT) 1,85,448


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= 9, 53,000 x10061, 28,000

= 15.55%

EBIT = PBT + TOTAL INTEREST

= 2, 85,304+6, 55,696

= 9, 41,000

Net Profit Ratio

NPR = PAT x 100Sales

= 1,85,448 x 10088,00,000

= 2.11%

MARKET POTENTIALMARKET POTENTIAL

Marketing now-a-days, has become

more important and complex than before. It is

very essential to have a sound marketing

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system which includes a well selected

distribution channel, well worded and

attractive advertisement, reasonable as well asaffordable price and above all a good quality

product.

We are giving stress on all these four

factors of marketing to achieve the greater

market share. Because we know that if the

marketing system is sound, 89% of problems

will be solved automatically.

Quality

Our maximum emphasis is given on

quality. The quality of our product is not only

competitive because we know that mere

competitiveness is not sufficient for viability.

We always want to be one step ahead fromothers.

COMPETITORS &COMPETITORS &COMPETITIVE STRATEGYCOMPETITIVE STRATEGY

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JEANS are high fashioned products which

are continuously affected by the change in

fashion, preference etc. So to stand with and

face the competition in our field we have to

continuously watch the changes going in our

field. We introduced some new designs, new

styles, high fashioned JEANS also in the

market to overtake the competitors.

We remain continuously in touch with the

fashion and style introduced in foreign markets

so that we can give totally new styles &

designs to home market.

Main Competitors are:-Main Competitors are:-

1.1. KAJARIYA MILLSKAJARIYA MILLS

2.2. ZENITH COTTONSZENITH COTTONS

3.3. JOHNSON FASHIONSJOHNSON FASHIONS

RISK FACTORSRISK FACTORS

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1. Competition

There is always risk of competition

from existing and potential units will be there.

But to avoid this risk, cost reduction through

minimum utilization of resources, use of good

quality of raw materials, operating efficiency

etc. will be helpful.

2. Adaptability to changes

Constant changes take place in the

design and pattern of JEANS. Moreover

changes in government policy and such otherchanges also affect the unit. The risk of

remaining unable to adopt such changes is

there but constant check of these aspects will

be useful to avoid the risk. In short, the factor

positioning risk is not much strong and thus

securing the success for the unit.

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FUTURE PLANFUTURE PLAN

Future plan is advance thinking of the

future activity. Every company has ambition to

achieve bright future. So, they are starting at

present to achieve the future target. Future

plan is a presentation of future activity and

position.From the above discussion EVEREST

MILLS has an ambition to achieve bright

future. The following are future plans of

EVEREST MILLS.

1. EVEREST MILLS have an ambition of

leading company in the garment world.

2. EVEREST MILLS want to have its retail

stores all over India as well in abroad.

3. EVEREST MILLS want to do business

abroad and compete with the company.

From the above we can say that EVERESTMILLS wants to earn more & more prestige inthe garment world.

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CONCLUSIONCONCLUSION Todays generation is very much

conscious about the garments. The

consumption of new fashionable garments

increases day by day especiallyJEANS.

AJEANS became popular garment

in all over the world. So, the demand increases

day by day and the fashion trend changes

every day in

. At present

take an example of world leading JEANS

producing company Wrangles, Lee, GAP, Flying

machine etc. have launched the range JEANS

trend. So, theJEANS is a forever product in the

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VAGHELA MILS MBA Porject Report Prince Dudhatra

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