DUTTA BROTHERS

ESTIMATED PROJECTION
APPAREL PRODUCTION UNDER ONE ROOF
By Dipankar Dutta

2012

KOLKATA, WEST BENGAL, INDIA

Estimated Projection
The Estimated Projection is based on an approximately estimated cost.
The entire project compound will be divided virtually in three parts i.e. the Constructed Area, Area for Future Expansion & Green Area and the ratio will be 20:20:60. The Green area will consists of water body which maintain water level of the Land.

The entire project will be implemented in three phase.

A. Phase-I B. Phase-II C. Phase-III Knitting & Dyeing Apparel Manufacturing & Embroidery and Printing Yarn Spinning

Initially we will implement only the Phase-I of the project on the very first years.
The basic infrastructure facilities will require for implementation of Phase-I of the project as follows: 1) Land / Site development for the Project. a) Soil & pilling of Land b) Construction for Sanitation & Drainage c) Construction for boundary wall and roadways 2) Knitting Unit a) Construction of Factory Shed for Knitting. b) Machineries for Knitting c) Necessary Furniture & Fixture for Knitting. 3) Dyeing Unit Construction of Factory Shed for Dyeing. Machineries for Dyeing Necessary Furniture & Fixture for Dyeing Unit. 4) Development of Office Building The Office building is consists of Store, Logistics, Laboratory, Canteen and Power House Construction of Office Building Interior Decoration, Furniture & Fixture c) Office Equipment, Computers & Stationary etc. 5) Development of Dormitory Construction of Dormitory for Labors Lodging Furniture for Dormitory. 6) Motor Vehicles for Transportation & Delivery 7) Connectivity of Electricity, Water supply, Telecom and Internet 8) Safety & Security Measures 9) Fees for Consultancy and Licensing 10) Miscellaneous Expenses

a) b) c) a) b) a) b)

[Note: Calculation of required land will be found at last]

Knitting Unit
Total Knitting capacity of the project will be 1.6 Ton/ day.
The Knitting project consists of three basic requirements 1) Required Constructed Area 2) Machineries for Production 3) Furniture & Fixture 1) Required Constructed Area Constructed facilities required for Knitting Unit: A. Knitting Shed B. Stock Room C. Compressor Room D. Oil Room Total: 2000 sq /ft 1000 sq /ft 200 sq /ft 200 sq /ft 3400 sq /ft

2) Machineries for Production

Machineries needed for production:

Specification
A. Reversible Circular Machine B. Interlock Circular Machine C. Rib knitting Machine D. Compressor E. Electric thread winder F. Fabric Inspection Machine Total:

Qty.
02 02 01 01 01 01

Price/Lac
30.00( 15.00 Lac each) 30.00( 15.00 Lac each) 12.00 0.70 0.85 1.50 75.25 Lac

3) Furniture & Fixture

An approximate Budget for Furniture & Fixture has been assumed. Furniture & Fixture 01.00 Lakhs

Dyeing Unit
Total Dyeing capacity of the project will be 3.0 Ton/ day. The Dyeing project consists of four basic requirements: 1) Required Constructed Area 2) Machineries for Production 3) Furniture & Fixture 1) Required Constructed Area
Constructed facilities required for Dyeing project: a) Dyeing Shed b) Stock Room c) Water Treatment and Boiler Room d) Salt Room e) Soda Room f) Dyes Room Total 5000 sq /ft 2000 sq /ft 2000 sq /ft 200 sq /ft 200 sq /ft 200 sq /ft 9600 sq /ft

2) Machineries for Production

Machineries needed for production: Specification a) Boiler (400 kg.) b) Winch c) Sallow d) Hydro Structer e) Dryer (Automatic) f) Calendaring g) Compacting h) Water Treatment1 i) HTHP Vessel Total: Qty. 1 5 7 2 2 1 1 3 10.00 Price./ Lac 15.00 5.00 50.00 6.00 12.00 5.00 7.00 7.50 109.50

3) Furniture & Fixture

An approximate Budget for Furniture & Fixture has been assumed. Furniture & Fixture 05.00 Lakhs

Office Building
The Office Building comprises of an Official Staff area, a Management Area, a Meeting cum Conference Room, a Designing Studio, a Guest House and a Show Room for New Product Display. Building the Office requires three basic things:

1) Required Constructed Area 2) Interior Decoration, Furniture & Fixture 3) Office Equipment & Stationary 1) Construction of office Building
The office building will consists of office area cum store, a laboratory, a logistics cum packaging dept., a generator room, a canteen. Constructed facilities required for Office Building: 1. Office cum Store 500 sq/ft 2. Laboratory 500 sq/ft 4. Logistics cum packaging dept. 1000 sq/ft. 5. Generator Room 200 sq/ft 6. Canteen 500 sq/ft 7. Toilet 100 sq/ft Total: 2800 sq/ft

2) Interior Decoration, Furniture & Fixture

An approximate Budget for Interior Decoration, Furniture & Fixture has been assumed. a) Furniture & Fixture Total 10.00/ do 10.00/Lakhs

3) Equipment & Stationary

An approximate Budget for Equipment & Stationary has been assumed: a) Lab Equipment b) Office Equipment & Stationary c) Computers d) Packaging Equipment e) Transformer f) Generator g) Canteen Equipment h) Canteen Appliances Total: 07.00 Lakhs 01.00 Lakhs 01.00 Lakhs 00.25 Lakhs 03.00 Lakhs 10.00 Lakhs 01.00 Lakhs 01.00 Lakhs 24.25 Lakhs

Dormitory
Development of Dormitory for Labors Lodging needs two basic things
1) Required Construction Area

2) Furniture & Fixture

1) Required Construction for Dormitory Constructed facilities required for Dormitory Construction for Dormitory 1000 sq/ft.

2) Furniture & Fixture for Dormitory An approximate budget for Dormitory Furniture has been assumed. Dormitory Furniture 01.00 Lakhs

Motor Vehicles for Transportation & Delivery

One of the most important requirements to make the project successful will be to have our own transportation and delivery system. For this we will need our own vehicle. An approximate budget for vehicle has been assumed.
a) Two small delivery vehicle (like TATA Jumbo) b) One medium delivery vehicle (like TATA 407) Total: 05.00 Lakhs 05.00 do10.00 lakhs

Connectivity of Electricity, Water supply, Telecom and Internet

An approximate budget for connectivity of Electricity, Water Supply, Telecom and Internet has been assumed. a) b) c) d) Electricity Connection Water Supply Telephone & Hotline Internet Connection Total: 00.30 Lakhs 01.00 do00.20 do00.10 do01.60 Lakhs

Safety & Security

Entire campus will be equipped with night vision spy camera for 24 hours security monitoring. Every employee provided with a digital identity card. The company will have a modern Fire Fighting and a Fast Aid medical facility for emergency. An approximate budget for Safety & Security masers has been assumed.

a) Fire Fighting equipment b) Spy Camera Monitoring c) Fast Aid equipment

02.00 Lakhs 00.50 -do00.10 -do-

Total

02.60 Lakhs

Fees for Consultancy and Licensing

An approximate budget for Fees for Consultancy and Licensing has been assumed. Fees for Consultancy and Licensing 02.50 Lakhs

Miscellaneous Expenses
An approximate amount for Miscellaneous Expenses has been assumed. Miscellaneous Expenses 05.00 Lakhs

Phase -I
Lets draw a table to calculate the estimated investment required for Phase I Of the project. Construction Area (Sq/ft.) Knitting Dyeing Office Building Dormitory Total 3400 9600 2800 1000 16800 Machineries & Equipment and Stationary (Rs/- Lakhs) 75.25 109.50 24.25 NA 209.00 Furniture & Fixture (Rs/- Lakhs) 01.00 05.00 10.00 01.00 17.00

Table 2 for Phase-I expenses

So from the above table what we found:

Entire Project Compound area will be = Construction Area (20%) + Future Expansion Area (20%) + Green Area (60%) = 16800 sq/ft(20%) + 16800 sq/ft(20%) + Green Area (60%) = 33600 sq/ft (40%) + Green Area (60%)

So now we have to find i.e. 33600 sq/ft constructed area is the 40% of how much land:
So first convert 33600 sq/ft areas to Bighas and Kattha. = = = = 33600sq.ft/720sq.ft 46.66 katha/20 kattha 2.33 Bigha 2 Bigha and 6 Kattha approx

So, as we said earlier the ratio of construction area and green land will be 40:60.
So, if 2 bigha-6 kattha will be 40% of total area then the entire campus will be: 2.33 bigha 40 Total Land 5.82 bigha 5 bigha and 16 kattha 100

So, investment required for Phase I of the project will be: =Land + Total construction + complete Machineries & Equipment +
Furniture & Fixture + Motor Vehicles + Connectivity of Water, Electricity, Telecom etc. + Safety & Security + Fees for Consultancy & Licensing + Miscellaneous = 5bigha, 16 kattah + 16800 sq/ft + 209.00 Lakhs + 17.00 Lakhs + 12.50 Lakhs + 1.60 Lakhs + 2.6 Lakhs + 2.50 Lakhs + 5.0 Lakhs =5bigha, 16 kattah + 16800 sq/ft + 250.20 Lakhs Now, if we assume an approximate cost of land will be: Say Rs/- 5.0 Lakhs/ Bigha, so total cost of land will be: = = 05.00 6 Bigha( in round figure) 30.00 Lakhs

So, total investment required for Phase I of the project will be:
= cost of land + cost of construction + 250.20 Lakhs = 30 Lakhs + Cost of 16800 sq/ft construction + 250.20 Lakhs