PROJECT FEASIBILITY REPORT

ONCRICKETING GLOVES

Mayank Agrawal (MT14IND012)

Academic session - 2014-2015

Mechanical Engineering Department

Visvesvaraya National Institute of Technology, Nagpur

• Introduction • Demand study• Basis and presumptions• Location study • Raw material study• Implementation schedule • Technical Aspects• Financial Aspects• Project capital cost estimates and source of

finance

CONTENTS

• The Cricket Batting Gloves are used as safety guards by the players while playing cricket to save the hand from any injury.

• Gloves also absorbs the shock caused by hitting the ball.

• Initially, Batting Gloves were manufactured of leather.

• I have decided to manufacture gloves using new synthetic material which is suitable, more durable and cheaper than the leather material.

INTRODUCTION

• The process of manufacturing the Batting Gloves is the same as for other industrial gloves.

• The only difference is that for the safety of fingers, pads are used made out of woolen rug or foam attached on the upper side of the gloves.

• As less number of cricket gloves maker are there in Chhattisgarh (RAIPUR) chances of more and more demand will gono be there.

CONTINUE

• Due to the growing interest among younger generation, large number of Cricket Academies has come up in every states.

• In addition, there is great demand from overseas market also.

• Industry can earn a lot of foreign exchange by way of exporting the cricket gloves.

• Due to top frequent change in design, it is advised to manufacture quality synthetic gloves.

MARKET POTENTIAL AND DEMAND STUDY

CONSUMPTION OF GLOVES BY INDIA IN 2014

SOURCE: ESTIMATED FROM INDIAN DEPARTMENT OF COMMERCE DATA.

Work gloves 45%

Dress gloves 15%

Sports gloves 20%

Medical gloves 20%

• The production undergoes on the single shift basis of 8 hours a day and 25 working days a month.

• Five years period for achieving full capacity utilization.

Labour on monthly salary basis. Rate of interest – 16%Pay back period 3 to 3.5 years. Land and building rented @ Rs.12,000 p.m. Covered area – 1000 sq. ft.

BASIS AND PRESUMPTIONS

• Project location is near to the Shaheed Veer Narayan Singh International Cricket Stadium NAYA RAIPUR.

• Around 5 km away from stadium.• Nearest to airport.• Nearest to market.• Industry is been setup near to the residental area

as my industry is a pollution free and less noisy.• Adequate Water supply is available.• Chhattisgarh Housing Board is constructing 4000

more houses, which are already allotted.

LOCATION STUDY

CONTINUE….• 3 sport academy are going to be open nearby

the stadium which has been approved by Chhattisgarh State Cricket Sangh.

• This geographical place have large surface as well as land water.

• There is no cricket component making industry in this region around 4-5 KM from my location.

• Naya Raipur is going to be declared as a new capital of Chhattisgarh.

• More traffic intensity as more new complex have been developed.

IN THIS PROJECT RAIPUR IS THE GOOD LOCATION

22%

19%

17%

24%

17%

Population

BilaspurDurgRaigarhRaipurRajnandgaon

• Pittards Leather.• Thermoplastic polyurethane for protection.• Sponge-padded polyurethane for better fit.• Lightweight and rounded high-density foam

finger rolls.• Two-piece sidebars on lead hand.• Toweled wristband with embossed Velcro

fastener.

RAW MATERIAL REQUIRED

Sl.No. Activity Estimated period required

1 Market survey 20-30 days

2 Procurement of know-how/experts 40 days

3 Arrangement of premises/area 40-50 days

4 Registration and financing 25-40 days

5 Recruitment of personnel and training 45-60 days

6 Obtaining power connection 30-45 days

7 Procurement of machines and equipments 45-60 days

8 Installation and electrification of machinery 20-30 days

9 Procurement of raw materials 5-10 days

10 Product development/trial production 5-10 days

11 Commercial production 5 days

IMPLEMENTATION SCHEDULE

1. Production Details & Process of ManufactureComponents are stitched together and padding

is attached separately over the post-bed stitching machine.

Fixing of buckle.Pre or post printing of monogram logo is

carried out. This depends upon the price of the product agreed upon.

Finishing, i.e., excess thread/material or oily matter etc is removed.

Inspection and Packing.

TECHNICAL ASPECTS

Cylinder bed compound, Feed

Machine

Post bed Lock Stitching Machine

2. Quality Specification: IS 3800 Batting Gloves3. Production Capacity: Cricket Batting Gloves: 23,000 pairs(annually) Value : Rs. 149500004. Motive Power : 3 HP (approx.)5. Pollution Control : This industry does not create any pollution,

therefore, State Pollution Control Board’s permission is not binding to start the industry.

CONTINUE….

FINANCIAL ASPECTS…….

CONTINUES…….

Fixed Capital: 1000 sq. ft. covered area rented @ Rs.12,000 (per

month) Machinery and Equipment:

Sl No.

Description Qty Rate(Rs.) Value(Rs.)

1 Cylinder bed compound, FeedMachine (JUKI) No.MS-335

2 85,000 1,70,000

2 Post bed Lock Stitching Machine (Juki No.MS-810)

2 85,000 1,70,000

3 Electrification and installation charges @ 10%

40,000

4 Tools and equipment 25,000

5 Cost of furniture and fixture 50,000

Total 4,55,000

Sl No. Description No. Salary (Rs.) Total (Rs.)

1 Manager 1 25000 25000

2 Supervisor 1 20000 20000

3 Skilled Worker 5 10000 50000

4 Accountant/Clerk 2 12000 24000

5 Peon/Chowkidar 2 5000 10000

6 Sweeper/Helper 2 5000 10000

Total 139000

Add perquisites @ 20% on salary 27800

Total 166800

WORKING CAPITAL (per month)

3. PRE-OPERATIVE EXPENSES:

20000 TOTAL FIXED CAPITAL (2 + 3): Rs.4,75,000

Sl No. Description Qty Rate(Rs.) Amount(Rs.)

1 Single Thick Cloth 0.10 kg 170 per kg 17

2 PVC (fingers) 0.12 meter 100 per m 12

3 Sweat Band 0.50 meter 80 per m 40

4 PVC for quirk 0.02 meter 100 per m 2

5 Thread 0.1 Reel 200 per pc. 20

6 Nylon tape 0.050 kg 500 per kg 25

7 Velcro 0.50 meter 50 per meter 20.5

8 Thimble Rs.2.00 2

9 Logo/Monogram Printing M.A. 15

10 Packing and forwarding 10

Total 163.5

Round off value 163

(per month 200 x 25) 815000

2. RAW MATERIALS (PER PAIR)

Sl No. Description Amount (Rs.)

1 Power 5000

2 Water 1000

Total 6000

3. UTILITIES (PER MONTH)

Sl No. Description Amount (Rs.)1 Rent 120002 Postage and Stationery 20003 Repair and Maintenance 30004 Transportation 60005 Advertisement and publicity 50006 Insurance 20007 Consumable Stores 20008 Other contingent expenses 4000

Total 36000

4. OTHER CONTINGENT EXPENSES (PER MONTH)

Sl No. Description Amount (Rs.)1 Raw Materials 815000

2 Personnel/Technical 166800

3 Utilities 6000

4 Other contingent expenses 36000

Total 1023800

5. TOTAL RECURRING EXPENDITURE (PER MONTH)

6. WORKING CAPITAL FOR 3 MONTHS:

1023800 x 3 = 3071400

Sl No. Description Amount (Rs.)

1 Fixed Capital 4,75,000

2 Working Capital 3071400

Total 3546400

7. TOTAL CAPITAL INVESTMENT

• Loan Organization – State Bank of India• Loan amount - Rs. 2600000 • Rate of Interest – 16% per annum

SOURCE OF FINANCE

Sl No.

Description Amount (Rs.)

1 Total recurring cost 12285600

2 Interest on Total Capital Investment @ 16% 567425

3 Total 12853024

Say 12853000

FINANCIAL ANALYSIS

1. COST OF PRODUCTION (PER YEAR)

SlNo.

Description Qty Rate(Rs.)

Amount(Rs.)

1 Cricket Batting Gloves 23,000 pairs

650 per pair

14950000

Total 14950000

2. TURNOVER (PER YEAR)

Corporate Tax in India := 25% Total Income

= 25% of Gross Profit(14950000-12853000)

= 0.25 * 2097000

= 524250/- INRDDT( Direct Dividend Tax):= 15% (Gross Profit/Annum – Corporate Tax)

= 15% (2097000 – 524250)

= 15% 1572750/-

= 235912/-Total Tax payable = 524250+235912= 760162/-

TAXATION

Turn over 14950000

Cost of Production (-) 12853000

Net Profit after tax(yrly) 1336800

3. NET PROFIT PER ANNUM

Net Profit per year x 100 Turnover per year=

1336800 x 10014950000

=

= 8.94%

4. NET PROFIT RATIO:

Net Profit per year x 100 Total Investment

1336800 x 100

354640037.69%=

=

5. RATE OF RETURN

PAY BACK PERIOD 6. Original invested(Rs.)

Annual investment achieved (Rs.) 3546400

1336800 = 3 year(approx.)

ADDRESS OF MACHINERY & EQUIPMENT SUPPLIERS:

• M/s Jay Cee Enterprises Ltd, 6, South Model Gram, Dutta Building, Ludhiana.

• M/s J.C. enterprises, E-357, Greater Kailash – II, New Delhi

• M/s Singer Sewing Machine Co., Anna Salai, Chennai – 600 002.

• M/s Apparel & Leather Technics Pvt Ltd, 515, Avanashi Road, Durg – 491001

ADDRESS OF RAW MATERIAL SUPPLIERS:

• M/s Global Enterprises, Kotwali Bazar, Jalandhar (Punjab).

• M/s Kerala Rubber House, Kotwali Bazar, Jalandhar (Punjab).

• M/s Bharani Agencies, 126, Thumbu Chetty Street, Chennai 600 001

Thank You !