Slide 1

EXPANSION OF To apply the class room learning into project to find out whether it is feasible or not

To have an fair idea about setting up of a new garments manufacturing unit .

To evaluate the project viability by financial analysis .AIMLilliput has major portion of production in their Faridabad unit supported with a merchandising unit

They take orders between 3-16 years of age.

This was first time that the unit got a proposal to produce a garment for 17-19 years

Lilliput has a strong presence in both domestic and international markets in Kids wear

It's growing @ 20% Per Annum which makes it one of the fastest growing markets

IDEA GENERATIONThe response was very good from the buyer.

They received order for a style got selected for the production. That was the continuous order for 5 years .

But the existing capacity was not enough to meet the increased production requirement .

Therefore the company is looking forward for expansion in this areaIDEA GENERATION - CONT

COMPANY OVERVIEW172 exclusive brand outlets150 key multi brand outlets like Shopper's Stop, Lifestyle, Pantaloon, Reliance Trends, Pyramids and more Lilliput Stores are evenly spread across 18 States, 35 Cities and 115 Stores & is still growing50 more stores are expected Actual production on 70% efficiency

COMPANY OVERVIEW- CONTFulfilling the demands and requirements of the domestic as well as international market.The proposed unit would be having high-end manufacturing facilityproducing high quality apparels especially garments for teenagers .The unit would be set up on 18000 sq ft of land and would be housed in multi-storey buildingsProducing for 17-19 years old girls & boys.

EXPANSIONPHYSICAL LAYOUTS OF DIVISION

MAIN LAYOUT

BASEMENT

GROUND FLOOR

FIRST FLOORFive year costing has been done taking into consideration a polyester top because of its easy availability compounded by the fact that the garment has a design which is useful for material costing.

PRODUCT DETAILS

CAPACITY OF UNIT 15

STITCHING 16

CAPITAL REQUIRED 17

SOURCES OF FUNDS

18

Major portion of investment is made in the machinery purchased for finishing department

Finishing department are costly like needle detector , tumble dryer, steam irons and washing machines .

INVESTMENT ON MACHINERYSELLING PRICE CALCULATION

PROJECTED SALES 21

PRODUCTION BUDGET22

SAM = 13.40 MINS 23

PRIME COST CALCULATION24

OVERHEADS CALCULATION25

COST SHEET26

PROJECTED 5 YR INCOME STATEMENT27

Comparison of operating profit and net profit of business.

In the year 1 (2009-2010) company is making high loss

Because of the high interest on loan and NIL of beginning WIP and finished goods.

In the year 3 (2011-2012) company is making maximum profit

ANALYSIS OF EBT28

BREAK EVEN POINT

29

In the year 1 (2009-2010) company is making losses , so the BREAK EVEN SALES has calculated for the same

line inter crossing the actual sales line at some point showing the deficiency of units to be produced which is

ANALYSIS ON BREAK EVEN30

MARGIN OF SAFETY

MARGIN OF SAFETY GAP

CALCULATION OF NPV

NPV is in (-)I've

A tremendous increase in the fifth year

And NPV is going down by 3.5 crore.

Initial investment is too high or the cash flows are not appropriate.

The project is feasible and logical

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SCENARIO ANALYSISNET LOSS % AGE -2.19-5.87-9.321.2433

CALCULATION OF IRR34CONCLUSIONFor viability NPV >0

Current situation NPV