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ON
HURRAICHI CHAPPALS & SANDALS
Product code
291301002
As per customer
specification and standards
Production capacity
December ,2005
Prepared by
(20)
INTRODUCTION:
Hurraichi Chappals and Sandals are mainly used in Rajasthan and Gujarat. This Item is
solely manufactured in India and not likely to have competition from other Countries. Its production
and productivity have to be increased in relation to increasing Demand. The process of manufacture
is on craft basis and fully hand-made. Standardization should be effected to ensure unformity in
quality and increase in Production at minimum cost. This industry should be broad-based to enable
trade to earn more and more foreign exchange and continue to maintain its grip; on the export
market.
Raw materials for the manufacture of these chappals and sandals are indigenously available
and there is no dearth of raw materials as well as labour for manufacture of this item. There is,
therefore, good scope for setting up SSI units for the said manufacture.
MARKET POTENTIAL
Leather footwear industry in India has been identified as thrust sector for export production
endowed with rich cattle wealth, century old tradition of leather making skills and backed up by
the most modern facilities. Indian Leather Footwear Goods ,has over the years acquired a significant
place in the world market. Today some 120 Countries import Indian Leather Footwear and Leather
goods.
Besides internal demand of leather products, the country has traditionally Remained as an
exporter of leather goods, leather footwear. Of latae, however, the internal-demand has shown a
rising trend.
The Leather Sector occupies a prominent position in export profile of India.. In fact, this is
one important industry where there is immense potential for growth and value addition.
India has been steadily transforming its traditional leather industry in the past two Decades
into a modern industry. There is beter application of new technologies for producing elegantly
designed wide range of. footwear maintaining high standards and better design elements. It is
expected that some units can be motivated to start the production of Hurraichi Chappals & Sandals
to meet the export demand.
BASIS & PRESUMPTION
(i)
the production is based on single shift basis of 8 hours per day and 25 working days in a
month.
Hurraichi Chappal & Sandal upper straps are cut by hand/machine out of goat and sheep
skins of bark turned leather and the laces/thongs. The upper components are then skived by upper
skiving machine provided to obtain uniformity in thickness and ensure quality. - The cut -out laces
are supplied to outside parties for weaving. pleated ready laces are fitted to the uppers along with
other preliminary operations such as instep strap fitting, stiching, decorative creasing, punching,
gimping, pinking, etc. finally as the upper components such as studs., flowers and other fittings, link
loops etc. are assembled and fitted and the prick marks done on uppers. Thus, the uppers, ready
for fitting between the top and bottom soles, are fitted in the slots marked on the top sole; and the
finishing done by hand/machine. Then, they are paired sized and packed.
ii)
QUALITY SPECIFICATION
At present, no quality specification are available for Hurraichi Chappal & Sandals. But for
export orders, specifications are provided by the buyers only. Uppers and soles should be made
of good quality Bark tanned leather in order to have uniform colour.
Care should be taken to click the right components from the right portion of the leather.
Before taking different components to the closing section, inspection is to be done to ensure
quality. Good quality adhesive is to be used to ensure a proper bond between different components.
iii)
(iv)
1,20,000 pairs
ii) Value
Rs. 91,50,000
MOTIVE POWER
8 H.P.
(v)
POLLUTION CONTROL:
This industry does not generate any pollution.
(vi)
ENERGY CONSERVATION:
Power operated machinery must be switched off when not in used.
(22)
FINANCIAL ASPECTS
1.
FIXED CAPITAL
Land & Building
Rented
2.
Sl.
No.
Machinery &
Equipments
IMP./
IND.
QTY.
01.
Imp.
02
03
RATE
Value
(Rs.)
65,000/-
65,000
Ind.
25,000
25,000
Industrial Swing
Machine, Flat bed
(45K) (Power H.P.)
Ind.
10,000
40,000
04
Ind.
75,000
75,000
05
Bottom Components
Splitting Machine
(Power operated)
Ind.
30,000
30,000
06
Rolling Machine
(Power operated)
Ind.
35,000
35,000
07
Weighing Machine
Ind.
10,000
10,000
08
10,000
10,000
09
Wooden Lasts
200
80,000
10
Office Equipment
30,000
30,000
11
Installation @ 10%
12
Cost of Dies
13
Spare Parts on
Imported Machine
@ 20%
Ind.
400
pairs
28,000
Ind.
3,000
18,000
28,000
(23)
Sub- Total(A)
15% Pre-operative
4,74,000
Expenses (B)
31,600
Total A+B
5,05,600
Rs. 5,10,600/-
Designation
No.
Salary
@ Rs.
Total (Rs.)
01
5,000
5,000
02
Supervisor
4,000
8,000
03
2,500
2,500
04
Peon-cum-Watchman
1,500
1,500
05
Skilled Worker
10
2,000
20,000
06
Semi-Skilled Workers
1,000
4,000
07
Helper-Part Time
500
1000
08
Chowkidar/Peon
1,500
1,500
Total
43,500
Perquisites @ 20%
8700
Grand Total
i)
52,200
Sl. Description
No.
Qty.
Rate
Value (Rs)
01
200 kgs.
200/- kg.
40,000
02
125 kgs.
180/- kg.
22,500
03
250 kgs.
175/- kg.
43,750/
(24)
04
350 kgs.
190/- kg.
66,500
05
Grindries
10/- prs.
50,000
06
Packing Material
5/- pair
25,000
Total
2,47,750
Description
Qty.
Rate
Value
(Rs.)
1.
125 Kgs.
200/kg.
25,000
2.
70 kgs.
180/kg.
12,600
3.
125 kgs.
175/kg.
21,875
4.
175 kgs.
190/kg.
33,250
5.
Grindries
For 2500
pairs
15/pair
37,500
6.
Packing Material
For 2500
pairs
5/pair
12,500
Total:
1,42,725
Qty.
Rate
Value
(Rs.)
1.
150
Kgs
200/kg.
30,000
2.
80 kgs
180/Kg.
14,400
3.
150 kgs
175/kg.
26,250
4.
175 kgs
190/kg.
33,250
5.
Grindries
For
2500
pairs
20/pair
50,000
(25)
6.
7.
Packing Material
6/pair
15,000
Total:
1,68,900
5,59,375
Say
5,59,400
Description
Amount (Rs.)
1.
Power
7000
2.
Water
500
Total:
7500
Description
Value (Rs.)
1.
Rent
5,000
2.
2,000
3.
Transport charges
4,000
4.
Telephone
2,000
5.
1,000
6.
3,000
7.
Insurance
2,000
8.
Misc. Expenses
1,000
Total:
20,000
Description
1.
Personnel
2.
Raw Materials
3.
Utilities
4.
Amount (Rs.)
52,200
5,59,400
7,500
20,000
63,91,00
Rs. 19,17,300
(26)
Amount (Rs.)
1.
Fixed Capital
510600
2.
19,17,300
Total:
24,27,900
MACHINERY UTILISATION
The machinery utilisation will be the 60% during the first year of its production and will be
reach 80% by the third year.
FINANCIAL ANALYSIS
i) COST OF PRODUCTION
SI.No.
Description
Amount (Rs.)
1.
2.
3.
4.
5.
6.
16000
7.
3,600
76,69,200
28,000
6,000
3,47,850
2000
Total:
80,72,650
Qty. Pcs.
Rate @
1.
Ladies Chappal
60,000 pairs
Rs.70/pair
42,00,000
2.
Ladies Sandal
30,000 pairs
Rs. 75/pair
22,50,000
3.
Gents Chappal
30,000 pairs
Rs. 90/pair
27,00,000
Total:
Value(Rs.)
91,50,000
(27)
Rs. 91,50,000 -
8072650
= Rs. 1077350/-
1077350x 100
91,50,000
= 11.7%
1077350 x l00
24,27,900
= 44%
RATE OF RETURN
Net Profit x 100
Total capital investment
BREAK EVEN ANAL YSIS
(i) Fixed Cost (Per Annum)
Sl.No.
Description
Amount (Rs.)
1.
28,000
2.
36,000
3.
6,000
4.
5600
5.
16000
6.
7.
40% salary
250560
8.
72,000
3,47,850
Total
7,62,010
=
(28)
41%
2.
3.
4.
M/s Precision Shoe Last Factory, 60, Industrial Estate, Nunhai, Agra.
5.
M/s Sanghvi Shoe Accessories Pvt., Ltd., Agra, Mathura Road, Agra.
6.
M/s Harman Sales Union, 24, Kala Bhavan, Mathew Road, Mumbai-400004.
7.
8.
9.
10. M/s Apparal & Leather Technics Pvt. Ltd., 515, Avanasi
Road, Tirpur-6416002
Name & addresses of Raw Material Suppliers.
1.
2.
3.
4.
5.
6.
7.
8.
9.