Sei sulla pagina 1di 14

Contents

Project Description ..................................................................... Error! Bookmark not defined. The denim History.................................................................. Error! Bookmark not defined. Significant Potential ................................................................ Error! Bookmark not defined. Project Brief ............................................................................. Error! Bookmark not defined. Market and Demand Analysis ................................................... Error! Bookmark not defined. Some Facts ................................................................................. Error! Bookmark not defined. Figures ..................................................................................... Error! Bookmark not defined. EXPORTS FROM PAKISTAN ............................................... Error! Bookmark not defined. SECTOR & INDUSTRY ANALYSIS ......................................... Error! Bookmark not defined. Competitive analysis .................................................................. Error! Bookmark not defined. Technical Analysis...................................................................... Error! Bookmark not defined. Manufacturing Process.......................................................................................................12 Raw Material ........................................................................... Error! Bookmark not defined. Utilities Requirement .............................................................. Error! Bookmark not defined. Location and Site .................................................................... Error! Bookmark not defined. MACHINERY REQUIREMENT ............................................. Error! Bookmark not defined. Product Mix.............................................................................. Error! Bookmark not defined. Plant Capacity ......................................................................... Error! Bookmark not defined. ENVIRONMENTAL & PROTECTION ASPECTS ................ Error! Bookmark not defined. Land & BUILDING REQUIREMENTS .................................. Error! Bookmark not defined. HUMAN RESOURCE REQUIREMENT ............................... Error! Bookmark not defined. Financial Analysis....................................................................... Error! Bookmark not defined. Cost of Project ......................................................................... Error! Bookmark not defined. Plant and machinery ............................................................... Error! Bookmark not defined. Office Furniture & other Items ............................................... Error! Bookmark not defined. Means of Finance ................................................................... Error! Bookmark not defined. Capital Requirement ............................................................... Error! Bookmark not defined. Key Assumptions .................................................................... Error! Bookmark not defined.

Amortization of Loan............................................................... Error! Bookmark not defined. Forecasted Income Statement .............................................. Error! Bookmark not defined. Forecasted Balance Sheet..................................................... Error! Bookmark not defined. Calculation of NPV.................................................................. Error! Bookmark not defined. Conclusion .................................................................................. Error! Bookmark not defined.

History:

Mens work clothing in the form of sturdy woven cotton pants have been a staple for centuries. The term denim comes from the French serge dNimes or fabric of the city of Nimes. The term jeans can be traced to the sturdy work fabric used by dockworkers in the Italian port city of Genoa. Today, the jeans sold in the shopping centers by Levi's, Lee, and other brands come from Mexico, China, Bangladesh, Vietnam, andPakistan and from other minor exporters These jeans were particularly created for the sailors due to their multipurpose functionality! (And to think these are a major style statement now!) These sailors felt jeans were a versatile piece of garment. They could be worn when wet and it could even be rolled over with ease. This was particularly useful when the sailors were busy with their everyday chores and required garments that were comfortable with great durability.

Significant Potential: Pakistan has become denim hub in the region in less than a decade and is considered as one of the leading supplier of quality denim fabric to the world's known brands. Pakistan's denim is second to none. There has been a phenomenal increase in the production capacity of denim mills in Pakistan and at present numerous denim mills are in operation. The denim industry is contributing substantially towards exports creating job opportunities and has invested billions in the denim sector. The denim industry is not only fully catering to the needs of the local apparel industry but is also catering to the foreign market and earning valuable foreign Exchange for the country.

Project Brief: The proposed Denim Jeans Stitching unit is a project of the Textile Sector, producing standard five pocket jeans trouser. The unit will cater to the local as well as export denim market. The jeans produced will be of export, high quality fabric. Through the use of high-tech equipment and modern techniques the company can produce jeans of latest trends without compromising on quality. The process flow includes purchase of raw material, cutting, stitching, washing, finishing, pressing and packing. Quality control checks will be taken care of throughout the process. Pakistan has become denim hub in the region in less than a decade and is considered as one of the leading supplier of quality denim fabric to the world's known brands. Pakistan's denim is second to none. There has been a phenomenal increase in the production capacity of denim mills in Pakistan and at present numerous denim mills are in operation. The denim industry is contributing substantially towards exports creating job opportunities and has invested billions in the denim sector. The denim industry is not only fully catering to the needs of the local apparel industry but is also catering to the foreign market and earning valuable foreign exchange for the country. This particular stitching unit is proposed to have an installed capacity for producing 1000 denim jeans per day. The units initial capacity utilization is kept at 70%, which eventually goes up to 90% in the fifth year. A Denim Garment Stitching Unit with an installed capacity to produce 1,000 pieces per day needs an investment estimated at Rs. 14.150 million. The project is financed through 50% debt and 50% equity. Projected IRR, Net Present Value and Payback of this project are 71.11%, Rs. 165.680 million and 3.71 years respectively. The legal business status of this project is proposed as Sole Proprietorship.

GENERATION OF IDEAS

Strength: There is a ready made market for this product. Relatively low labour costs Ample available work force. Well-situated industrial estate with all major facilities available Weakness: The requirement of credit and/or delay of payments from customer side might cause disturbance in the cash cycles. Very small base of available skilled machinists. Lack of trained technicians and line / middle management. Uncertain investment climate Opportunities: WAPDA/KESC will provide off peak hour rates and bulk rates for industrial consumers to lower the electricity cost of manufacturing. Manufacturers-cum-exporters are allowed to import samples of each kind or quality having value up to US$ 100 at zero duty rates. Two special export zones focusing on textile sector particularly in dyeing, processing and finishing sectors will be established at Karachi and in one of the industrial cities of Punjab. Threat: Skilled operators in the denim garments are quite unorganized. Stitching expertise is not available at the best possible level. This restricts the industry to the basic garments and only limits the entry into the manufacturing of high quality garments. Cost of doing business may increase as the energy, raw material prices, wages and mark up rates may rise.

MONITORING THE ENVIRONMENT

Porter five forces:

THREAT OF NEW ENTRANTS

YES (+)

NO ( )

Do large firms have a cost or performance advantage in your segment of the industry? Are there any established brand identities in your industry? Do your customers incur any significant costs in switching suppliers? Is a lot of capital needed to enter your industry? Is serviceable used equipment expensive? Does the newcomer to your industry face difficulty in accessing distribution channels? Does experience help you to continuously lower costs? Does the newcomer have any problems in obtaining the necessary skilled people, materials or supplies? Does your product or service have any proprietary features that give you lower costs? Are there any licenses, insurance or qualifications that are difficulty to obtain? Can the newcomer expect strong retaliation on entering the market?

BARGAINING POWER OF BUYERS

YES

NO

(+) Are there a large number of buyers relative to the number of firms in the business? Do you have a large number of customers, each with relatively small purchases? Does the customer face any significant costs in switching suppliers?

( )

Does the buyer need a lot of important information? Is there anything that prevents your customer from taking your function in-house? Your customers are not highly sensitive to price. Your product is unique to some degree or has accepted branding.

BARGAINING POWER OF SUPPLIERS

YES (+)

NO ( )

My inputs (materials, labour, supplies, services, etc.) are standard rather than unique or differentiated I can switch between suppliers quickly and cheaply. My suppliers would find it difficult to enter my business or my customers would find it difficult to perform my function in-house. I can substitute inputs readily. I have many potential suppliers. My business is important to my suppliers. My cost of purchases has no significant influence on my overall costs.

THREAT OF SUBSTITUTES

YES (+)

NO ( )

The customer will incur costs in switching to a substitute. Your customer has no real substitute. Your customer is not likely to substitute.

Rivalry
The industry is growing rapidly.

YES (+)

NO ( )

The industry is not cyclical with intermittent overcapacity. The fixed costs of the business are a relatively low portion of total costs. There are significant product differences and brand identities between the competitors. The competitors are diversified rather than specialized. It would not be hard to get out of this business because there are no specialized skills and facilities or long-term contract commitments, etc. My customers would incur significant costs in switching to a competitor. My product is complex and requires a detailed understanding on the part of my customer. My competitors are all of approximately the same size as I am.

OVERALL INDUSTRY RATING

Favorable

Moderate

Unfavorable 3

Implications

Threat of new entrants

Threat of new entrants is low favorable Bargaining power of buyers 5 0 2 Bargaining power of buyers is low favorable Threat of substitutes 0 1 2 Threat of substitutes is high UnFavorable Bargaining power of suppliers 3 2 2 Bargaining power of suppliers is low Favorable Intensity of rivalry among competitors 2 2 5 Intensity or rivalry is Moderately High Unfavorable Total 16 8 14 attractive

Conclusion : Market and Demand Analysis:

Manufacturing process: As the business is st itching denim jeans. Which require different raw materials. So the process will be as such: first Purchasing of raw material fro m the market like denim fabric and that will further be put into the process. And then he purchased fabric must be washed and this will be done through outsourcing as washing in house requires a plant whic h is also very expensive and thus this purchase can further increase huge costs. Thus washing cost per Denim piece can cost rs 30. And the production process will be:

Process Flow Chart for Denim Garments Stitching Unit:

TECHNICAL ANALYSIS Manufacturing Process: denim jeans only manufactured through machines, there is no any other alternative to manufactur denim.

The Manufacturing the Denim jeans requires different types of raw materials like Fabric , Pocket Lining , Stitching thread , Imported buttons.
Choice of Technology  Plant capacity : we are using high tech machines which have capability to manufacture required capacity level.  Principal inputs : Pakistan is well known for its best quality fibre and yarn .  Investment outlay and production cost Appropriateness of Technology In Pakistan the technology used such as Lock Stitch (Single Needle )to manufactured denim is appropriate interms of Utilization of local raw materials,Utilization of local labor . Technical arrangements  Nature and support provided by the suppliers  Process and performance guarantees  Licensing fee and periodic royalty fee  Period of the collaboration agreement  Sharing of management control if technical collaboration is backed by financial collaboration

Material Inputs and Utilities  Main raw material are fabric, Stitching thread , which are agro- based products .  There is requirement of utility for plant main especially electricity to run stiching machines. Product Mix: We manufacture Variation in size and quality of jeans as well as Flexibility to alter product mix in response to changing market conditions. Plant capacity  Technological requirement Minimum economic size

 Input constraints  Investment cost  Market conditions  Resources of the firm  Government policy Location and site

The clusters of stitching industry exist predominantly in Lahore, Karachi, Faisalabad and Sialkot. Most of the garment manufactures are based in these major cities, so it is recommended that such unit should be started in these cities. Basic raw material i.e. denim cloth, is also conveniently available in these cities
Machineries and equipment  Levels of production over time  Various machining and other operations  Machine hours required for each type of operation  Select equipment which could be classified as: Plant (process) equipment Mechanical equipment

Electrical equipment Instruments Controls Internal transportation

Structures and Civil Works Environmental aspects  Types of effluents and emissions generated  Requirements for disposal  Environmental clearances  Compliance with statutory requirements

Potrebbero piacerti anche