Soft Toys and Decorative Crystal Objects

8/7/2019 Soft Toys and Decorative Crystal Objects

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PRODUCT CODE :

QUALITY AND STANDARDS :

PRODUCT CAPACITY :

MONTH AND YEAR :

PREPARED BY : KAMALAIKA

Now-a-days soft toys are coveted items for the children and crystal handicrafts are

very popular and attractive luxury goods. Soft toys are made up of furs, threads,

cotton, various types of accessories. Again crystal handicrafts are products made by

various coloured and shaped crystals, gum and various other necessary things.

Demand for these items is booming day by day.

Now-a-days people are very much conscious about etiquettes. They are consciousabout dress codes and accessories to be used according to different environments. Soft

toys have been very popular in developed countries. But now it is also becoming

popular in India as children are getting more and more attracted to such toys. It also

elicits interests amongst the adults. The factors governing the demand of the products

are :

1. Increasing population of the country.

2. Increase in the purchasing capacity of the people.

3. Durability of the product.

4. Change in people’s life style.

5. Trend of giving presents in social occasions.

Keeping in view all the above factors, the demand of these products is likely to

increase manifold in the coming years.

1. Number of hours : 8 hrs

2. Number of working days in a year : 300 days

3. Labour wages : As per wages act of

the State Government4. Interest on capital : 11% per annum



5. Margin Money :

6. Pay back period of the project : 7 years of the project

1. Building : 3 months

2. Preparation of project

report and SSI registration 1 month

3. Financial assistance : 2 months

4. Arrangement of power : 1 month

5. Acquisition of machinery : 15 days

6. Installation of machinery : 2 days

7. Appointment of staff and labour : 1 month

8. Trial production and teething

problems : 2 weeks

9. Commercial production : 1 week after trial production

10. Total time to start commercial

production : 3-5 months

Process of manufacture :

There may be various types of soft toys depicting dogs, pompon bear, birds, dolls etc.

Every type has different making process. But there are some common features in the

manufacturing process. At first the design of the doll or the object is made. Then the

proper colour of fur is chosen. The designs are drawn at the back side of the fur and is

cut accordingly. The various parts of an object are stitched together. Then nylon

cotton is inserted into the object to give the proper shape. At last the various

accessories like eyes, nose are affixed to the object by gum or stitching to give anatural effect. Then it is packed in glamorous packet to give a glitzy effect.

Constituents of the products :

The constituents of soft toys are fur ( Indian, Chinese etc.) Nilax, wool, Nylon cotton,

niddle, chord, crystal, flue gun, gum, wire, rod, accessories ( Eyes, nose etc. to give

special eff ct).



Quality Control and Standards :

Production capacity :

the production capacity of the firm is approximately 350 soft toys per month. It shows

Pollution Control :

It is not applicable for these types of products as there is no question of air, water and

sound pollution.

A. Fixed capital

Land 500 Sq. Ft. area @ Rs. 500 2,50,000

Cost of construction of building 2,00,000

Total

4,50,000

ii) Machinery and equipment

4 nos. sewing machines @ 8,500 each 34,000

Accessories 500

Total

34,500

Legal expenses, start-up expenses, 35,000

Establishment cost, consultancy fee,

Estimate fee, interest and trial runs, etc.

1. land and building 4,50,000

2. Machinery and equipment 34,500

3. Pre-operative expenses 35,000

Total

5,19,500

B. Working capital (per month)



i) Personnel No. Salary/Employee Total

i) Manager 1 5,000 5,000

ii) Skilled crafts

person 5 3,000 15,000

iii) UnskilledLabour 2 2,000 4,000

Total

24,000

Perks @ 10% of salaries 2,400

Total

26,400

ii) Raw materials including packaging requirement :(for one month)

i) Fur (Chinese, imported, Indian) 20,000

ii) Nilax 25,000

iii) Accessories 6,000

iv) Nylon cotton 7,000

v) Niddle 1,000

vi) Chord 1,000

vii) Crystal 10,000

viii) Gum 4,000

ix) Flue Gun (4 machines) 1,000

x) Wire 5,000

xi) Packaging Material 20,000

Total

1,00,000

i) Power 3,000

ii) Machine oil 1,000

Total 4,000

i) Postage & stationery 1,000

ii) Telephone 1,000

iii) Consumable stores 1,000

iv) Repairs and maintenance 1,500

v) Transport charges 5,000

vi) Insurance 1,500

vii) Sales expenses 3,000

viii) Miscellaneous expenditure including

Advertisement, Legal fee andentertainment charges 5,000



Total 19,000

iv) Total recurring expenditure 1,49,400

(per month)

v) Total working capital 4,48,200

(for three months)

Fixed Capital : 5,19,500

Working Capital : 4,48,200

Total : 9,67,700

14,67,700

S.No. Particulars Expenditure

(Rs.)

1. Raw Material.12 9,60,000

2. Packaging Material.122,40,000

3. Salary & wages.12 3,16,800

4. Other expenses.12 2,76,000

5. Depreciation on plant &

Machinery @ 10 % p.a. 48,450

6. Interest on total investment

@ 12% p.a. 1,16,124

7. Profit (before tax) 5,00,000

Return on investment (ROI) = _Px100____________

Total investment



= 5,00,00,000

9,67,700

= 51.67%

Percentage of profit on sales = Px100Sales

= 5,00,00,000

SINGER

Park Street,

Kolkata

Local Market



BY

STREAM – MBA 1ST YEAR

Soft Toys and Decorative Crystal Objects

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