Industrial Hand Gloves
| Product Code | 292007000 The following Indian Standard specifications are available to guide the manufacturer of industrial hand gloves and to maintain quality control. Leather gauntlets for workers IS 2573:1963. Leather gauntlets for workers in iron and steel industry IS 2574:1963 |
| Quality and Standards | Leather Mittens for workers in iron and steel industry. IS 3575:1963 The split chrome leather used must have been processed properly to give the required pliability and stitch tear strength for assuming quality of gloves produced. The thread used for stitching must also conform to the prescribed standard. |
| Production Capacity | Qty. : 1,50,000 pairs (per annum) Value : Rs.5250000 |
| Uploaded on | March 2007 |
Introduction
Industrial hand gloves serve as an item of protective apparel for workers in factories. Hand gloves are of various types and sizes. Fast moving sizes are 14", 16", 18" etc. The materials that go in the production of hand gloves vary from cotton fabrics and asbestos to variety of leathers. Leather, however, since supreme in the production of industrial hand gloves. Amongst leather chrome tanned split leather is predominantly in use possibly because of its cheap price and peculiar qualities needed for hand gloves as compared to other kind of leather. Chrome tanned split leather imparts special qualities to withstand roughness of the handling material and gives enough flexibility and softness for the hand to move in the gloves easily and swiftly while working in the workshop. Such industrial gloves are widely used in industry, Railway and Defence. Due to rapid industrialization and expansion of railway the use of industrial hand gloves is expected to grow considerably.
Market Potential
Looking to the internal and external demand it appears that we are not in a position to cope with the demand and as such there is a good scope for starting new units for manufacture of industrial hand gloves. Fortunately the raw material is available in the country especially split leather due to increase in production of finished leather based on hides.
Basis and Presumptions
- The production is based on a double shift, where shift is of 8 hours per day and 25 working days in a month.
- Time period for achieving full capacity utilisation is 3 years.
- Labour will be engaged on monthly basis keeping in view the present rate prevailing in the market.
- Rate of interest for fixed and working capital @ 12% per annum.
- Margin Money, 25%
- Land and Building, own. Builtup area, 100 Sq. meters.
Implementation Schedule
It will take one year to complete all the formalities before starting the commercial production.
Technical Aspects
Process of Manufacture
The leather is checked for uniform thickness, holes and flying cuts, if any. It is then marked with the pattern and then cut with the help of scissors or clicking knife into different components. After stitching all the components suitably, the gloves are turned inside out. The gloves are then ready for packing and despatch.
Production Capacity
| Industrial hand gloves | 1,50,000 pairs (per annum) |
| Value | Rs.5250000 |
Pollution Control
This industry does not create any kind of pollution and as such there is no need to take any preventive measures for pollution control.
Financial Aspects
Fixed Capital
| Land and Building | |
| Land 200 sq. mtr. @ Rs. 3500 per sq. mtr including registration | 700000 |
| Total built-up area 100 sq. mtrs. as follows | |
| Administrative office,factory shed 100 sq. mtrs. construction cost @ Rs. 6000 per sq. m | 600000 |
| Water System (including Bore Well + over head tank etc) | 200000 |
| Electricity backup(generator and others equipment) | 100000 |
| Total civil cost= cost of land + building | 1600000 |
Machinery and Equipments
Description |
Imp./ Ind. |
Qty. |
Rate (Rs.) |
Amount (Rs.) |
| Flat bed single needle industrial sewing machine power operated 1/2 HP motor | Ind. | 5 | 10000 | 50000 |
| Cylinder bed single needle industrial sewing machine power operated 1/2 HP motor | 2 | 15000 | 30000 | |
| Cost of tools and fixtures | 1,00,000 | 10000 | ||
| Cost of office furniture and workshop furniture | 50,000 | 80000 | ||
| Erection ,Taxes, Electrification and Installation of machinery @ 40% | 75,000 | 68000 | ||
| Total | 238000 |
| Pre-operative Expenses | 20000 |
| Total Fixed Capital (i+ii+iii) | 1858000 |
B. Working Capital (per month)
(i) Staff and Labour (per month)
Designation |
Qty. |
Rate (Rs.) |
Amount (Rs.) |
| Production Manager | 1 | 35,000 | 35,000 |
| Accountant | 1 | 25,000 | 25,000 |
| Salesman | 5 | 15000 | 75,000 |
| Clickers | 3 | 13333 | 40,000 |
| Stitchers | 5 | 10000 | 50,000 |
| Unskilled Workers | 6 | 4000 | 24,000 |
| Sweeper/Watchman | 10 | 5000 | 50,000 |
| Total | 136000 | ||
| Add perquisites @ 22% on Salary | 29920 | ||
| Total | 165920 | ||
(ii) Raw Materials Including Packing Requirements (per month)
Description |
Qty. |
Unit |
Rate @/unit (Rs.) |
Value (Rs.) |
| Chrome tanned Split leather (3.5 Pairs per kg.) | 3571 | Kg | 50 | 178550 |
| Thread | 12500 | Pairs | 0.75 | 9375 |
| packing material (Carton pack for 100 pairs, poly packing for individual pairs) | 126 | No. | 40 | 5040 |
| Total | 192965 |
(iii) Utilities (per month)
Amount (Rs.) |
|
| Power | 3000 |
| Total | 3000 |
(iv) Other Contingent Expenses (per month)
Description |
Amount (Rs.) |
| Postage and Stationery | 3000 |
| Consumable Stores | 2000 |
| Repair and Maintenance | 2000 |
| Transportation charges | 5000 |
| Telephone | 3000 |
| Advertisement and Publicity | 10000 |
| Insurance | 1000 |
| Miscellaneous Expenses | 2000 |
| Total | 28000 |
Description |
Amount (Rs.) |
| Raw Materials | 192965 |
| Staff and Labour | 165920 |
| Utilities | 3000 |
| Other Contingent expenses | 28000 |
| Total | 389885 |
| Working Capital for 3 months | |
| Working Capital (for 1.5 months) 389885 x 1.5 | 584828 |
C. Total Capital Investment
| Fixed Capital | 1858000 |
| Working capital for 1.5 months | 584828 |
| Total | 2442828 |
Financial Analysis
Cost of Production (per annum) |
Amount (Rs.) |
| Total recurring cost | 4678620 |
| Depreciation on machinery @ 10% | 8000 |
| Depreciation on Building @5% | 80000 |
| Depreciation on tools @ 25% | 2500 |
| Depreciation on furniture @20% | 16000 |
| Interest on Total Capital Investment @ 12% | 293139 |
| Total | 5078259 |
Turnover (per annum)
Items |
Qty. |
Rate (Rs.) |
Value (Rs.) |
| Industrial hand gloves | 150,000 pairs | 35 per pair | 5250000 |
| Total | 5250000 | ||
Net Profit (before taxation) (per year)
(Rs.) |
|
| Turnover - Cost of Production | 5250000 - 5078259 |
| 171741 |
Net Profit Ratio
Net Profit per year x 100 Turnover per Year |
|
| 1,71,741x 100 | |
| 5250000 | |
| 3.27% |
Rate of Return on Total Investment
Net Profit per year x 100 Total Investment |
|
| 171741 x 100 | |
| 2442828 | |
| 7.03% |
Break-even Point
Description |
(Rs.) |
| Depreciation on machinery @ 10% | 8000 |
| Depreciation on Building @5% | 80000 |
| Depreciation on tools @ 25% | 2500 |
| Depreciation on furniture @20% | 16000 |
| Interest on Total Capital Investment @ 12% | 293139 |
| 40% of Salary and Wages | 796416 |
| 40% of utilities and other Contingent expenses | 148800 |
| Total | 1344855 |
| B.E.P | Fixed cost x 100 ---------------------------- Fixed cost + Net Profit |
| 1344855 x 100 | |
| 1344855 + 1,71,741 | |
| 88.68% |
Addresses of Machinery and Equipment Suppliers
- M/s. Singer Sewing Machine Co.
Nehru Bazar,
Jaipur.
- M/s. Industrial Sewing Machine
Co. (P) Ltd.,
Kakad Chambers, 5th Floor,
Dr. Annie Besant Road,
Mumbai-18. - M/s. Peelu Sales Corporation,
Meera Hussani Chouraha,
Hing Ki Mandi,
Agra (U.P.) - M/s. Tata Export Tannery
Division, Agra Mumbai Road,
Dewas (M.P.)
- M/s. Tannery and Footwear
Corporation of India,
Civil Line,
Kanpur (U.P.) - M/s. Gordon Woodroffee
Leather Mfg. Co. Ltd.
Pallavram,
Chennai-43 - M/s. Usha Leather Industries
Dharavi, Mumbai-17
Raw Material Suppliers
For further information please contact
Information Manager
TIMEIS Project
E-mail: timeis@ficci.com
