Elastic Tape
| Product Code |
267904002 |
| Quality and Standards |
IS 9686:1980 |
| Uploaded on |
August 2007 |
Introduction
Garment forms one of the basic needs of human being. In a country like India with growing population, the increase in demand for the readymade garments is a continuing process. A good dress should give importance to three basic parameters. These are comfort to wearer, matching colours and climate adjustments.
Elastic tapes are required for the purpose of holding the garments tightly when it is worn by the persons. In addition to providing comfort, it also increases the life of the garments. Generally, the elastic tapes are used in undergarments like briefs, panties, brassiers, baggies, children's dress etc. It is also used in suitcases for inside straps for better grip holding and in car seats for safety driving etc.
Market Potential
With the increasing demand for the undergarments and readymade garments, there is enough scope for the garment ancillary units including the elastic tapes. There is always good demand for the elastic tapes.
Basis and Presumptions
- This project is based on single shift basis and 300 working days in a year.
- Time period for achieving maximum capacity utilisation is considered from 3rd year from the date on which production is started.
- Building is considered of its own
- Costs of machinery and equipment/material indicated refer to a particular make and approximately to those prevailing at the time of preparation of this project.
- Cost of installation and electrification is taken @ 10% of cost of machinery and equipment.
- Non-refundable deposits, project report cost, trial production, security deposit with Electricity Board etc. are taken under preoperative expenses.
- Depreciation has been considered as 10% on plant and machinery, 15% on office furniture and fixtures and 20% on workshop accessories.
- Interest on capital investment has been taken @ 14% per annum.
Implementation Schedule
| Activity |
Period |
| Selection of site/working shed |
1 month |
| Formation of company (ownership/partnership) |
1 month |
| Registration with Commissioner of Industries/ DIC |
1 month |
| Procurement of machinnery and equipment |
1 month |
| Arrangement of finance (Term loan and working capital) |
3 months |
| Selection of market channel |
1 month |
| Plant erection and electrification |
2 weeks |
| Arrangement of raw material including packaging material |
1 month |
| Recruitment of manpower |
1 month |
| Miscellaneous works like power/water connection etc. |
2 months |
Note: Considering that some of the above activities may be overlapping, the project implementation will take a total period of six months approximately for starting the production.
Technical Aspects
Process of Manufacture
Different types of yarn like viscose, nylon and cotton are placed on creel for working purpose as per design. Warp is prepared on warping machine. It is to be ensured that no loose threads are present in the warp sheet in order to run the machine without stoppage. Prepared warp beam is shifted to needle loom and individual threads are drawn as per design. When the machine starts weaping, the woven tapes will come out of the machine and finally wound on the rolls, After finishing on finishing machine, rolls are packed into polythene packs for supply to the customers.
Quality Control and Standards
The product should be clean from oil stains, cuts, any other defects etc. Care should be taken while manufacturing to avoid occurrence of the above faults.
Production Capacity (per annum)
Product |
Quantity |
Value (Rs.) |
| Elastic Tape |
16,80,000 |
10920000 |
Motive Power
25 HP is required to run this unit.
Pollution Control
Although not required, however, entrepreneurs have to contact State Pollution Control Board for necessary guidance.
Energy Conservation
Energy can be saved by proper housekeeping.
Financial Aspects
Fixed Capital
Land and Building
| Land and Building |
| Uncovered area |
100 sq.mt. |
| Land and Building |
200 sq.mt. |
| Cost of land @ Rs. 2000/sq.mt |
600000 |
| Cost of construction @ 4000/sq.mt |
400000 |
| Total |
1000000 |
Machinery and Equipments
Description |
No. |
Rate (Rs.) |
Amount (Rs.) |
| High speed needle loom 12 shaft front reed 12" without back frame and beam Model 6/27 Varitex |
2 |
600000 |
1200000 |
| Warping machine type b 350 suitable or 350 mm dia and 250 mm width with warp speed 180 mts./ min.max. |
1 |
1400000 |
1400000 |
| Creel for 250 ends |
1 |
80000 |
80000 |
| Aluminium flanged beams bolted |
50 |
1500 |
75000 |
| Finishing machine series FS-2 main drum guide rollers made of SS 304 dia 800mm, length 1210mm, 36 heaters, maximum speed 36 mts./min. |
1. |
260000 |
260000 |
| Back frames |
3 |
10000 |
30000 |
| Measuring and winding machine suitable for making rolls upto 30mm.dia |
1 |
60000 |
60000 |
| Fire fighting equipments |
LS |
10000 |
10000 |
| Lab. equipments |
LS |
10000 |
10000 |
| Total |
3125000 |
Other Fixed Assets |
(Rs.) |
| Erection and installation |
312500 |
| Office furniture |
50000 |
| Pre-operative expenses |
30000 |
| Total |
392500 |
| Total Fixed Capital |
4517500 |
Working Capital (per month)
Staff and Labour Wages
Designation |
Nos. |
Salary (Rs.) |
Amount (Rs.) |
| Plant Manager |
1 |
16000 |
16000 |
| Sales Officer |
1 |
9000 |
9000 |
| Accountant/Cashier |
1 |
5000 |
5000 |
| Peon |
2 |
3000 |
6000 |
| Supervisors |
1 |
9000 |
9000 |
| Skilled workers |
4 |
4500 |
18000 |
| Unskilled workers |
2 |
3500 |
7000 |
| Total |
70000 |
| Perquisites@20% |
14000 |
| G.Total |
84000 |
Raw Materials (per month)
Description |
Qty. (mts.) |
Rate (Rs.) |
Amount (Rs.) |
| Crimped Nylon yarn 1/120 |
1000 |
240 |
240000 |
| Viscose 450 Dn. yarn |
750 |
120 |
90000 |
| 32 s Cotton yarn |
750 |
140 |
105000 |
| Latex thread |
775 |
140 |
108500 |
| Glue/starch |
100 |
12 |
1200 |
| Total |
544700 |
Utilities (per month) |
(Rs.) |
| Electricity bill Water charges |
15000 |
| Total |
15000 |
Other Contingent Expenses (per month) |
(Rs.) |
| Postage/Stationery |
1000 |
| Repair and maintenance |
15000 |
| Transport/travelling Charges |
3000 |
| Insurance Insurance |
1000 |
| Telephone bills |
4000 |
| Miscellaneous |
4000 |
| Total |
28000 |
| Total Recurring Expenses (per month) |
671700 |
| Total Working Capital for 2 months |
1343400 |
Total Capital Investment
| Land Machinery and equipment |
4517500 |
| Working capital for 2 months |
1343400 |
| Total |
5860900 |
Machinery Utilisation
Capacity utilisation is considered as 75% of installed capacity.
Financial Analysis
Cost of Production (per year) |
(Rs.) |
| Recurring expenses |
8060400 |
| Depreciation on machinery @ 10% |
312500 |
| Depreciation on Building @ 5 % |
50000 |
| Depreciation on office furniture, other fixed assets @ 20% |
78500 |
| Interest on total investment @ 14% |
820526 |
| Total |
9321926 |
Turnover (per year) (Sales)
Product |
Qty. (Rs.) |
Rate/Dz (Rs.) |
Amount (Rs.) |
| Elastic Tape |
1680000 |
6.50 |
10920000 |
| Total |
10920000 |
| Net Profit (per year) |
1598074 |
| Net Profit Ratio (Net profit/Turnover (per year) |
14.63% |
| Rate of Return on Investment (Net Profit/Total Capital Investment) |
27.27% |
Break-even Point
Fixed Cost |
(Rs.) |
| Depreciation |
441000 |
| Interest on capital investment |
820526 |
| 40% of wages of staff and labour |
403200 |
| 40% of other contingent expenses |
129600 |
| Insurance |
12000 |
| Total |
1806326 |
| B.E.P. |
Fixed cost × 100
------------------------
Fixed cost + Profit
= 53.06% |
Addresses of Machinery and Equipment Suppliers
- M/s. Baku Bhai Ambalal
3-Madrwah Estate,
Saki Vihar Road, Sakinaka,
Mumbai-72.
- M/s. Prashant Engg. Co.
Plot No. 4/1-A,
GIDC Estate, Vatva,
Ahmedabad-382445.
Addresses of Raw Material Suppliers
- M/s. Moupan Ltd.
Modi Nagar, (U.P.)
- M/s. Lohia Machine Ltd.
(Fibre Div.)
C-3 and 4, Panki Indl. Estate,
Kanpur.
- M/s. Vardhman Spinning and Gen. Mills Ltd.
Chandigarh Road, Ludhiana.
- M/s. India Spinners and Processors
5309, Basti Harphool Singh,
Delhi-110006
For further information please contact
Information Manager
TIMEIS Project
E-mail: timeis@ficci.com
