1

Baby Bloomer Suits

PRODUCT CODE : 260308005

QUALITY AND STANDARDS : The product is a fashion item and there is no
such specification for this item, however, quality
of the product depends upon the quality of the
fabric.
MONTH AND YEAR : May, 2003
OF PREPARATION
PREPARED BY : Small Industries Service Institute,
Industrial Area-B, Ludhiana-141003 (Punjab).
Tel. Nos.: 0161-531733-34-35.
Fax : 0161-533225,
E-mail : [email protected]
Website: www.sisildh.com Telegram: SMALLIND

INTRODUCTION attractive. These items suit each and

every pocket as these are available in
Bloomer suits knitted are used by all low as well as high prices, depending
the sections of the society for their upon the quality of the fabric, designing
children as a dress material. These and workmanship of the product. The
bloomers have taken the place of textile demand of these suits in the rural as
items as these are available in very well as urban areas has shown that there
attractive designs and colours and are is a good scope of such type of units,
easy to wash. Bloomers are made out which can produce quality products. The
of the tubular blended knitted cloth,
scope for the export of these items to
which is available in the local market.
the Middle East countries and other
The pieces are cut as per the size and
European countries has further boosted
shape of the item and are stitched
accordingly. Embroidery and patchwork the market of these items.
is also done to make the attractive
designs on the T-shirts, which is a part B ASIS AND PRESUMPTIONS
of the bloomer set.
1. The Project Profile has been
prepared on the basis of single
MARKET POTENTIAL shift of 8 hours each day, 25 days
There are number of units engaged in a month and at 75% efficiency.
in the manufacturing of bloomer suits, 2. It is presumed that in the 1st year,
but even then the demand of these suits the capacity utilisation will be 60%
during the summer season is increasing followed by 70% in the next year
day by day as these are cheap and and 80% in the subsequent years.
8 B A B Y BLOOMER SUITS

3. The rates quoted in respect of 5. Installation of Machines 1 month

salaries and wages for skilled 6. Electrification 1 month
workers and others are the
minimum rates prevailing in the 7. Recruitment of Staff 1 month
State/Neighbouring States. and Workers
4. Interest rate for fixed and working
capital has been taken @ 14% on TECHNICAL ASPECTS
an average, whether financed by Process of Manufacture
bankers or by Financial
Corporations. Bloomer suits are made out of the
tubular knitted cloth available in the local
5. Margin money required is
minimum 30% of the project market. Tubular knitted cloth in different
investment. colours, counts and diameters is
purchased from the market and is
6. The rental value of the Workshed
checked for the manufacturing defects.
and other built up/covered area
The cloth is laid on the cutting table for
has been taken at the rate of
marking the shape and style of the suit.
Rs. 20.00 per square meter.
The shape is given by cutting the fabric
7. Pay back period of the project is by use of scissors or straight knife cutting
5 years after initial gestation machine. In case of printing or
period of one and half year. embroidery or patchwork is to be done
8. The rates quoted in respect of for making the piece attractive, then
machines, equipment and raw these pieces are sent for the same in
materials are those prevailing at the market for getting these works on
the time of preparation of this job work basis. Then, these pieces are
Project Profile and are likely to stitched on industrial sewing machines
vary from supplier to supplier and i.e. sewing machine, over lock and flat
place to place. When a tailor lock machine. Stitched pieces are
made project profile is prepared checked and pressed for final packing.
necessary changes are to be made. These packed pieces are sent to the
market for sale.
IMPLEMENTATION SCHEDULE
Quality Control and Standards
Sl.No.Activity Period
1. Preparation of Project Report: The product is a fashion item and
there is no such specification for this
(i) Calling quotations 1 Month
item, however, quality of the project
(ii) Preparation 2 Weeks depends upon the quality of the
2. Provisional Registration 1 week fabric.
as SSI
Production Capacity (per annum)
3. Financial Arrangement 3 Months
4. Purchase and 2 Months Item Qty. Amount (In Rs.)
procurement of Baby Bloomer Suits 12000 Dozens. 47,52,000
machines and
equipments Motive Power 10 H.P.
 B A B Y BLOOMER SUITS 9

Pollution Control Sl. Designation No. Salary Amount

No. (In Rs.) (In Rs.)
As the industry does not involve any
pollution as such, no pollution control 3. Skilled Worker 8 3000 24000

measures are required. 4. Helpers 3 2250 6750

Total 38000
Energy Conservation
Add Per-quisites @ 10% of salary 3800
As the power requirement is small
Total 41800
proper house keeping can save it.
Or Say 42000
FINANCIAL ASPECTS (ii) Raw Materials (per month)
A. Fixed Capital Particulars Amount (In Rs.)
( i ) B u il d i n g = 100 Sq. Mtrs. The building is Dyed knitted PC cloth 1250 2,00,000
considered rental with monthly rent of Rs. 2000 Kg @ Rs. 160 per Kg.
per month @ Rs. 20 per sq. mtr.
Sewing thread, stickers, labels, 40,000
(ii) Machinery and Equipments polythene bags boxes etc.
Total 2,40,000
Sl. Description Qty. Rate Amount
No. of Machines (In Rs.) (In Rs.) (iii) Utilities (per month) (Rs.)
1. High speed overlock 3 45000 135000 Power, Water 5000
machine with motor
and Stand Total 5000
2. High speed self 2 60,000 1,20,000 (iv) Other Contingent Expenses (per month)(Rs.)
lubricated flat lock
stitch machine with 1. Rent of building 2000
motor and Stand
2. Advertisement 5000
3. Elastic insertion 1 80000 80000
3. Consumable Stores 500
machine with motor
and stand 4. Postage expenses/Telephone 1000
4. High speed lock 2 15000 30000 5. Repairs and maintenance 500
stitch machine with 6. Transport 1000
motor and stand.
7. Miscellaneous 500
5. Rib cutting machine 1 5000 5000
with stand and motor 8. Printing job work 30,000
6. Office furniture, L.S. 50000 50000 Total 40,500
cutting tools,
pressing table, racks, (v) Total Recurring Expenses (per month) (Rs.)
electric press, scissors
1. Staff and labour 42,000
measuring instruments
2. Raw material 2,40,000
7. Electrification, L.S. L.S. 46000
installation, taxes 3. Utilities 5,000
etc. @ 10%
4. Other contingent expenses 40,500
Total 4,66,000
Total 3,27,500
B. Working Capital (per month) (vi) Working Capital for 3 months = Rs. 327500 × 3
= Rs. 9,82,500
(i) Personnel
C. Total Capital Investment
Sl. Designation No. Salary Amount
No. (In Rs.) (In Rs.) (a) Fixed Capital Rs. 4,66,000
1. Supervisor/Manager 1 5000 5000 (b) Working capital for 3 Months Rs. 9,82,500
2. Peon/Chowkidar 1 2250 2250 Total Rs. 14,48,500
10 B A B Y BLOOMER SUITS

MACHINERY UTILISATION (6) Break-even Point (% of Total Production

Envisaged)
75% machinery utilisation is (i) Fixed Cost (per year) (Rs.)
considered for achieving the projected
a. Total Depreciation 51,000
target.
b. Rent 24,000
FINANCIAL ANALYSIS c. Total interest 2,02,790
(1) Cost of Production (per year) (Rs.) d. 40% of salary and wages 2,01,600
(a) Total recurring cost 39,30,000
e. 40% of other contingent 1,84,800
(b) Depreciation on machinery and 41,000 expenses (excluding rent)
equipments @ 10%
Total 6,64,190
(c) Depreciation on furniture, fixtures 10000
@ 20% (ii) Net Profit (per year) = Rs. 5,68,000
(d) Interest on total investment 2,02,790 B.E.P. = Fixed Cost × 100
@ 14% Fixed cost + Profit
Total 41,83,790
= 6,64,190 × 100
Say 4,18,4000 6,64,190 + 5,68,000

= 54%
(2) Turnover (per year)

Sl. Item Qty. Rate Value Addresses of Machinery And

No. (Rs.) (Rs.) Equipment Suppliers
Baby bloomer 12000 396 47,52,000
suits Dozens per dozen
1. M/s. Akal Mechanical Works
Overlock Road,
(3) Net Profit = Rs. 5,68,000 Indl. Area-B,
Ludhiana.
(4) Net Profit Ratio = Net Profit × 100
Turn over per year 2. M/s. Swaroop Mechanical Works
= 5,68,000 × 100 Gali Wakila, Purana Bazar,
4,75,2000 Ludhiana.
= 12% 3. M/s. Sodhi Sewing System Co.
(5) Rate of Return = Net Profit × 100
C-4, Caliber Plaza,
Total Investment Ludhiana.
= 5,68,000 × 100
14,48,500 Raw Material Suppliers
= 39% Easily available in the local market.