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Transcript of industrial plan
BUSINESS PLAN ON INDUSTRIAL PRODUCT
- WHITE GOLD(RECYCLED COTTON YARN)
PRESENTED BY-
AKSHAY BHARTI(16)
PIYUSH SINGLA (24)
ABOUT TEXTILE INDUSTRY
The Indian textile industry is one the most important industries for the Indian economy.
Its importance is underlined by the fact that it accounts for around 4% of GDP, 14% of the industrial production and 17% of the country’s total export earnings.
Besides, the sector employs nearly 35 mn employees; the textile industry is the second-largest employment generating industry in both rural and urban areas, after the agriculture industry.
India is aiming at textile exports of $60 billion in 2014-15 as it will seek to encash on the increased demand from the developed nations and its traditional partners in the international market.
GOVERNMENT INITIATIVESTechnology Upgradation Fund Scheme (TUFS)As on March 31, 2008, the government sanctioned Rs
725.2 bn and disbursed Rs 609.5 bn under the TUFSIn June 2013, the government released an additional
subsidy of Rs 25.5 bn in the textile sector under the TUFS.
GOVERNMENT INITIATIVESInitiatives under National Textile Policy (NTP) 2000The rate of depreciation for investment in high-tech
processing machines has been increased from 25% to 50%.
The import duty on specified hi-tech processing machines has been brought down to 5%.
Import of hi-tech processing machines has been permitted under zero duty Export Promotion Capital Goods Scheme.
BASIC IDEA OF BUSINESSThe basic idea of business is to convert tailor
cutting cotton waste into WHITE GOLD which has varied uses.
White gold is used in manufacturing of- 1. Canvas cloth2. Curtains ,bed sheets and other handloom
products3. Door mats4. Floor wipers5. Carry bags
COMPANY PROFILE
Product type – Recycled cotton yarnProduct name – WHITE GOLDCompany name – NEW AGE SPINNERSCompany address – vill. Madhana, Gohana road , PanipatDirectors – Piyush Singla and Akshay Bharti
INVESTMENTTotal investment = Rs 5.43crCapital brought by partners = Rs 2cr eachCash credit from Union bank of India = 1.43cr against
collateral security of factory premises
CONVERSION PROCESS OF INPUTS
Cotton waste(tailor cutting)
Bleaching process Carding process of converting tailor cutting to break comber
SWOT ANALYSIS
StrengthWeakness
Opportunity
Threat
1. Low technical knowledge required
2. Easy availability of man power
3. Huge demand
1. Shade and shade variations
2. Loss due to power failure
3. High initial investment
1. Competition from international brands
2. Competitors practice of labour poaching
3. Loss due to fire
1. Subsidy from government
2. Continous market demand
3. High return on investment
LAYOUT OF FACTORY
120ft * 430ft = 51600sqft
DEMAND FORECASTCollective opinion test
sample method
1. number of yarn traders = 147 (as per THE PANIPAT YARN TRADER
ASSN.)
2. number of export houses = 73
3. 55 samples collected under opinion method 4. on an average the sales of yarn traders are 8000kg a day and for export houses 4000kg a day
Expenditure : fixed and working capital expenditureFixed capital
1. Land – Rs 1.18cr (1.18 acre @ 1cr/acre)
2. building – Rs1.20cr( for building construction and office)
3. machinery – Rs1.85cr
(3 open ends D1- Rs 84,00,000
8 card machines- Rs 48,00,000
2 blow rooms- Rs 38,00,000
weighing scale- Rs 9,00,000
power factor- Rs 5,00,000
office furniture- Rs 1,00,000)
4. hotline electricity connection – Rs 12 lac
5. AC plant – Rs 6 lac
6. borewell – Rs 3 lac (2 connections 3 inches)
7. Registration fees – Rs 1,61,000
Expenditure : fixed and working capital expenditure
Working capital
1. Conversion expenses – Rs 38,33,268
2. Raw material – Rs 59,50,000
BLENDINGBreak comber (95%) - 6175*30days = 185250*Rs.29.5=
Rs54,64,875
Polyster cotton(P.C) (5%)- 325kg*30 = 9750*49.75=
Rs.4,85,125
*5% yield wastage on blended quantity resulting to increasing cost of blending per kg
CONVERSION EXPENSESDetails Cost per kg Amount
Blow room conversion cost
195000 kgs*Rs 3/kg 5,85,000
Card room conversion cost
185000kgs*Rs 2.5/kg 4,62,500
Open end conversion cost
185000kgs*Rs 2.5/kg 4,62,500
Packing expenses 3600*10 36,000
total 15,40,000
SALARY CHARTParticulars Amount (Rs.)
Gate keeper 6000*2 = Rs.12000
Electrician 20000
Junior electrician 9000*2 = Rs.18000
Weighing scale operator 7500
Store manager 16000
Accountant 25000
Intern for accountant 6500
Bahadur for office 4000
Ladies labour 30000 for month
SALARY CHART CONTD.Particulars Amount (Rs.)
Field boy (2) (sales) 30000
Field boy (spares) 10000
General production manager 340000
Godown keeper 18000
Sweepers (2) 9000
Total 2,40,000
SUPPLIERS DETAILSG.G. spuntex
Across pakka kabri fatak, kabri road , panipat
Phone number- 9034560008 (Mr. Manish)
breakcomber @ Rs29.5/kg
Under an agreement for a quarter to supply 6000 kg breakcomber daily by his conveyance to our factory premise.
CONTINGENCY PLAN FOR SUPPLIERS (LOCAL)Prem cottex @ Rs. 30.25/kg
Shree Durga Spinning Mills @ Rs. 30.50/kg
Mahaluxmi Trading Co. @ Rs. 30/kg
OUR CUSTOMERSPrince Yarns Gangapuri road, sanoli road, panipat
Royal Yarns Old yarn market, panipat
Channana Yarns City chowk, near lal masjid, panipat
Banga Yarns New yarn market, S.D college road, panipat
COMPETITOR’S ANALYSISAverage rate of yarn per kg in the market is Rs 64Major competitors are as follows-
- Gupta overseas @ 65/kg
- Chirag spinning mills @ 64/kg
- Vishal spinning mills @ 65/kg
- Gupta international @ 64.2/kg
CONTINGENCY PLANLoss by theft and fire (covered under Insurance)- annual
premium of Rs38,609 against stock of Rs 50lacs
Machinery insurance- annual premium of Rs 2,15,621 against machinery costing Rs.1.85cr
Provision for bad debts- Rs 20,000/month
Building insurance- annual premium of Rs 47,281 against building costing Rs 50 lacs
SEGMENTATION, TARGETING AND POSITIONINGo SEGMENTATION
On the basis of UV and NON-UV clear yarn
On the basis of various counts of production
o TARGETING
Export houses, traders and inter state dealers
o POSITIONING
Penetration pricing and brand creation within a time span of next 10 years
TRADING A/C
Particulars Amount (Rs)
Particulars Amount (Rs)
To purchasesTo wagesTo electric billTo gross profit b/d
59,5000015,46,0009,00,00024,04,000--------------1,08,00,000
By sales a/c 1,08,00,000
--------------1,08,00,000
(for 1 month)
PROFIT & LOSS A/CParticulars Amount
(Rs)Particulars Amount
(Rs)
To interest on C.CTo salaryTo spare partsTo office expensesTo medical expensesTo freight outwardTo fire equipmentsTo EPF contributionTo provision for bad debtsTo free samplesTo insuranceTo bobinTo packing bagsTo net profit before tax
To tax @30%To net profit after tax
1,72,0002,40,0001,50,00050,0005,00090,00010,00024,00020,00040,00025,12575,00050,40014,52,475------------4,35,74210,16,732-------------24,04,000
By gross profit c/d 24,04,000
-------------24,04,000