Wind Cheater

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Product Code N.A.
Quality and Standards N.A.
Uploaded on September 2007

Introduction

Wind cheater is a special type of garment generally used as an outerwear. This is usually made from synthetic cloth as this is very simple to wash. It is very useful for the two wheeler riders in order to get protection from chilly cold weather and dust from pre-summer. It also serves the purpose of guarding the main formal dress from soiling. Wind cheaters are easily washable as these are made from water repellent synthetic fabrics. It is preferred that unit should manufacture wind cheaters of different colours so as to attract different customers.


Market Potential

At present these products are mostly manufactured in Delhi, and adjacent areas. Earlier, the raw material required for this product was not easily available and due to this, few units were established to manufacture this outerwear. As this product was also not very popular to the consumers, the units are mostly confined in selected places to fulfil the demand. Now-a-days young people use it as a protective clothing from chilly weather and dust. The demand for this product is significantly increasing. Hence, units for the manufacture of wind cheaters can be set up in different areas.


Basis and Presumptions

This project is based on single shift basis and 300 working days in a year. The time for achieving maximum capacity utilisation is considered from 3rd year from the date on which the production is started. Buildling is considered of its own. Costs of machinery and equipment/material indicated refer to a particular make and approximate 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 deposits with Electricity Board are taken as pre-operative expenses. Depreciation has been considered at 10% on plant and machinery, 20% on office furniture and fixtures and 25% on workshop accessories. Interest on capital loan has been considered at 14% per annum.


Implementation Schedule

Implementation time for executing different types of works such as selection of site/working shed, forming of company to commissioning of project will take a total period of five months. This, however, depends upon the completion of works within specific time.


Technical Aspects

Process of Manufacture

Synthetic dyed water repellent fabrics are used as raw material for this product. This fabric is cut into pieces as per the design of the product and stitched on sewing machines. Zips and cords are attached to the garment as per specifications. The individual garment is folded and packed for the buyers.


Quality Control and Standards

No Indian standards are existing. Wind cheaters are manufactured and supplied as per the customer's choice. However, attention is required to procure good quality synthetic fabrics and other items.


Production Capacity (per annum)

Quantity

Value (Rs.)

Wind Cheaters 75,000
Total 75,000

Motive Power

7 HP is required to run this unit at full capacity. This is proposed to be obtained from the State Electricity Board.


Pollution Control

This industry does not generate pollution.


Energy Conservation

Energy can be saved by proper housekeeping.


Financial Aspects

Fixed Capital


Land and Building
Land 800sq.mt. @ Rs. 1500p.s.m. Amounting Rs.1200000
Building Area
Factory shed 250 sq. mt.
Store (Raw material) 50 sq. mt.
Store (Finished goods) 50 sq. mt.
Office etc. 25 sq. mt.
Total Covered Area 375 sq. mt
Total Construction Cost @ Rs. 3000/sq.mt. 1125000
Total Investment in land and Building 2325000

Machinery and Equipments

Description

No.

Rate (Rs.)

Amount (Rs.)

Umbrella sewing machine with motor and other accessories 10 6000 60000
Overlock stitching machine with motor + stand 2 5800 11600
Cutting Table 1 7000 7000
Miscellaneous items tools, iron, racks etc. LS 30000 30000
Total 108600

Other Fixed Assets

(Rs.)

Erection and installation 10860
Electrification 15000
Office furniture 50000
Pre-operative expenses 15000
Total 90860
Total Fixed Capital 2524460

Working Capital (per month)

Staff and Labour Wages

Designation

Nos.

Salary (Rs.)

Amount (Rs.)

Manager 1 15000 15000
Accountant / clerk 1 7000 7000
Peon 1 5000 5000
Production Staff      
Cutting Master 1 10000 10000
Production Supervisor 1 8000 8000
Machine Operators 12 6000 72000
Helpers 6 3000 18000
Total     135000
Perquisites @ 20% 27000
G. Total 162000

Raw Material (per month)

Description

Qty. (mts.)

Rate (Rs.)

Amount (Rs.)

Synthetic fabric 2250 74 166500
Cotton sewing thread Elastic tape Zip etc. LS LS 2340
Embroidery and Stickers   LS 1150
Packing materials   LS 8000
Thickener (Kgs.) Thickener (Kgs.) 50 18 900
Total 298890

Utilities

(Rs.)

Electricity bill and Water charges 5000
Total 5000

Other Contingent Expenses (per month)

(Rs.)

Postage/stationery 2000
Repair and maintenance 1200
Transport/travelling charges 2000
Miscellaneous expenses 2000
Total 7200

Total Recurring Expenses (per month) 396700
Total Working Capital for 2 months 793400

Total Capital Investment

Machinery and equipment 2524460
Working capital for 2 months 793400
Total 3317860

Machinery Utilisation

Capacity utilisation is considered as 75% of installed capacity.


Financial Analysis

Cost of Production (per year)

(Rs.)

Total recurring expenditure 4760400
Depreciation on Land & Building @ 5 % 116250
Depreciation on machinery @ 10% 10860
Depreciation on office furniture and other accessories @ 20% 10000
Interest on total investment @ 14% 464500.4
Total 5362010.4

Turnover (per year) (Sales)

Product

Qty. (nos.)

Rate/ pc.(Rs.)

Amount (Rs.)

Wind Cheaters 75000 75 5625000
Total 5625000

Net Profit 512850

Net Profit Ratio

   

Net Profit × 100
-----------------------------

Turnover per annum

=20%


Net Rate of Return

   

Net Profit × 100
------------------------

Total Investment

=17.49


Break-even Point

Fixed Cost

(Rs.)

Depreciation 132600
Interest 410550
40% of salary and wages 295680
40% of other contingent expenses 67200
Total 906030
B.E.P. Fixed Cost × 100
------------------------
Fixed Cost + Profit
= 63.86

Addresses of the Machinery Suppliers

  • M/s. Popular Electrical and
    Mechanical Works
    Chawal Bazar,
    Ludhiana.
  • M/s. Matharoo Mechanical Works
    Bhaiwala Chowk,
    Ferozepur Road,
    Ludhiana.
  • M/s. S.T.M. Knitting Machine Manufacturers
    Kalsi Nagar,
    G.T. Road,
    Ludhiana.

Raw Material Suppliers

  • M/s. Vardhman Spinning and General Mills Ltd.
    Chandigarh Road,
    Ludhiana.
  • M/s. Sona Woollen Mills
    156, Industrial Area–A,
    Ludhiana.
  • M/s. Oswal Woollen Mills Ltd.
    Industrial Area–A,
    Ludhiana.

For further information please contact

Information Manager
TIMEIS Project
E-mail: timeis@ficci.com