Injection Moulded Shoes
| Product Code | 291101003 |
| Quality and Standards | There is no specific BIS specification for Injection Moulded Shoes. |
| Production Capacity | Quantity: 6,00,000 pairs shoes (per annum) Value: Rs. 199800000 |
| Uploaded on | March 2007 |
Introduction
Injection moulding is one of the many processes adopted for shoe manufacture. Injection moulding of shoes with rubber as soling material by vulcanization process is very popular. It attained popularity during the early 1960's when PVC followed by PU were developed for use as soling materials. Injection moulded shoes has certain advantages over other shoes and is still one of the preferred methods for manufacture of shoes.
Market Potential
The international market for shoes is dominated by Italy, China, Thailand, Indonesia, India and some other South East Asian countries. The footwear industry in all major developed countries is showing a decreased trend due to a rise in the cost of production. Shoes being a low technology and high labour intensive product, India stands a favourable chance to be the largest exporter of footwear. The Indian domestic market is also huge and there is a lot of scope for setting up units manufacturing injection moulded shoes.
Basis and Presumptions
| Working Hours | Double shift of 8 hours each i.e 16 hours a day for 300 working days in a year |
| Capacity Utilisation | 60% during first year 70% during second year 80% during 3rd year and onwards |
| Entrepreneur | Preferably by one or group of promoters having knowledge/experience in shoes and footwear field and /or venturing to start Injection based units. |
| Location | Any where in India, preferably near any township. |
| Land and Building | Cost is calculated as per prevailing market rates |
| Important Raw Materials | Chrome tanned cow softy upper leather, lining leather,toe puff, insole and PVC. |
| Salary and Wages | All the employees are paid on monthly basis.at the prevailing market rates |
| Transportation and Taxes on Purchase | Not Included in purchase price |
| Power Charges | Rs.4.5 per KWH from power supply source |
| Depreciation | 5% on building and civil construction 10% on plant and machinery 20% on furniture and fixture |
| Margin Money | 30% of total capital investment |
| Interest Charges | 12% has been calculated on total capital investment. |
| Fixed Cost For BEP Analysis | 100% insurance, interest and depreciation 40% of total salary and wages 40% of total utilities and other Contingent expenses excluding insurance |
Implementation Schedule
Activity |
Period (In months) |
| Registration and other formalities | 2 |
| Land acquisition | 3 |
| Construction of shed, office etc. | 8 |
| Machinery purchasing and installation | 4 |
| Trial production | 1 |
| Total | 18 |
Technical Aspects
Process of Manufacture
The graded patterns of the components of the selected design are clicked for upper and lining materials and passed on to closing section for making the upper. In closing section, the edges are skived and components stitched and eyelets fixed as per buyers specification. In the making section, the insole is stapled to the making last, shank attached, the upper is then lasted over the last either by adhesive or tacks. Bottom roughing of the lasting allowance is done which can be a little over the lasting edge. The shank is attached securely by tacks and heel filler is attached in seat area to cut down PVC around the heel, shorten cooling time and prevents distortion of head shape. A one part or two part polyurethane adhesive is applied by machine or hand brush over the whole bottom only in case of PVC and not required for PU and is completely dried. The shoe is slipped from the making last and put on to alloy last mould. The shoe in the inverted position is then slid into the injection moulding machine. The side and sole moulds close and lock into position. Molten PVC is then injected into the mould, cutting off supply when full. It is then cooled by refrigeration chamber and moulds unlock after cooling time and shoe unloaded. The spue is then removed. Shoe is then send for finishing and then checked and packed. For PU injection moulding a different kind of injection moulding machine is used which is more critical. Expanded PVC is now a days popular as soling material. Vulcanized rubber soles are still in use.
Quality Control and Standards
The quality of footwear is guided by the physical and chemical properties of the material, destructive test on footwear and wear trials. Various organizations like SATRA, BLMRA, SLTC (UK), CTC (France), TNO (Netherlands), PFI (Germany), VESLIC (Switzerland), ALCA, ASTM (USA) and CLRI(India) have contributed to achieve quality standards for footwear and footwear materials. Test procedures and testing equipments of Bally (Switzerland) and SATRA (UK) and specification of British Standard (BS), German Standards (DIN) and international standards (ISO) are widely used. In India BIS (Bureau of Indian Standards) have worked out specifications for various footwear and footwear materials. Shoes are to be manufactured as per the buyer's specification.
Production Capacity
| Quantity | 6,00,000 pairs injection moulded shoes (per annum) |
| Value | 199800000 |
Motive Power
The proposed unit will consume 20,000 kWH units of electricity per month.
Pollution Control
There is no pollution in the manufacture of injection moulded shoes.
Energy Conservation
Workers should be properly trained to minimize wastage of electrical energy by proper running and maintenance of the machines.
Financial Aspects
Fixed Capital
| Land and Building | |
| Land 2 acres @ Rs. 15,00,000 per acre | 3000000 |
| Building area for workshed of 10,000 Sq. ft. @ Rs. 500 per sq. ft (Factory, Test laboratory, Stores, rest room etc.) | 5000000 |
| Administrative Block of 5000 sq. ft. @ Rs. 700 per sq. ft. (Administration, Inspection, Guest Room etc.) | 3500000 |
| Compound wall, gate, road, water pump etc. | 500000 |
| Total | 12000000 |
Machinery and Equipments
Description |
Imp./ Ind. |
Qty. Nos. |
Rate (Rs.) |
Value (Rs.) |
| Computer with design and grading software and cutter | Imp. | 1 | 1200000 | 1200000 |
| Swing beam hydraulic beam press 20 tonnes | Ind. | 4 | 250000 | 1000000 |
| Band knife upper splitting machine | Imp. | 1 | 500000 | 500000 |
| Upper perforating machine | Ind. | 1 | 150000 | 150000 |
| Strap cutting machine | Ind. | 1 | 80000 | 80000 |
| Stamping machine for upper and lining | Ind. | 1 | 50000 | 50000 |
| Sock stamping machine | Ind. | 1 | 45000 | 45000 |
| Upper skiving machine | Ind. | 4 | 80000 | 320000 |
| Thermocementing folding and attaching machine | Imp. | 1 | 280000 | 280000 |
| Rotary Ironing machine | Imp. | 1 | 150000 | 150000 |
| Stitch marking machine | Ind. | 1 | 30,000 | 30,000 |
| Flat bed single needle machine | Imp. | 4 | 38,000 | 152000 |
| Post bed single needle machine | Imp. | 4 | 60,000 | 240000 |
| Flat bed double needle machine | Imp. | 1 | 50,000 | 50,000 |
| Post bed double needle machine | Imp. | 1 | 80,000 | 80,000 |
| Flat bed zig-zag machine | Imp. | 1 | 55,000 | 55,000 |
| Cylinder bed binding machine | Imp. | 1 | 75,000 | 75,000 |
| Steam rubbing machine | Ind. | 1 | 45,000 | 45,000 |
| Steam pressing machine | Ind. | 1 | 25,000 | 25,000 |
| Punching and eyeleting machine | Ind. | 1 | 55,000 | 55,000 |
| Conveyor (closing department) | Ind. | 4 | 30,000 | 120000 |
| Insole moulding machine | Ind. | 1 | 90,000 | 90,000 |
| Counter moulding machine | Ind. | 1 | 110000 | 110000 |
| Insole stapling machine | Ind. | 1 | 45,000 | 45,000 |
| Toe puff attaching machine | Ind. | 1 | 55,000 | 55,000 |
| Forepart lasting machine | Imp. | 1 | 850000 | 850000 |
| Seat and side lasting machine | Imp. | 1 | 1000000 | 1000000 |
| Humidifier for seat lasting | Ind. | 1 | 30000 | 30000 |
| Pounding and ironing machine | Ind. | 1 | 150000 | 150000 |
| Moist wrinkle classer | Ind. | 4 | 10000 | 40000 |
| Humid heat setting machine | Imp. | 1 | 300000 | 300000 |
| Bottom toughing machine | Ind. | 1 | 60,000 | 60,000 |
| Cementing machine | Imp. | 1 | 60,000 | 60,000 |
| Last removing jack | Ind. | 1 | 25,000 | 25,000 |
| Heat activator | Ind. | 1 | 50,000 | 50,000 |
| 4 station injection moulding machine | Imp. | 1 | 1600000 | 1600000 |
| Finishing machine | Ind. | 1 | 100000 | 100000 |
| Spray booth | Ind. | 1 | 22000 | 22000 |
| Air compresser | Ind. | 1 | 50000 | 50000 |
| Generator set | Ind. | 1 | 500000 | 500000 |
| Testing equipments | Ind. | LS | 300000 | 300000 |
| Cost of power connection including transformer | 350000 | |||
| Total | 10489000 | |||
| Taxes ,Erection, Electrification and installation charges @ 40% of the cost of machinery and equipments | 4195600 | |||
| Hand tools | Ind. | LS | 20000 | |
| Clicking dies | Ind. | LS | 50000 | |
| Plastic lasts | Ind. | LS | 120000 | |
| Metal Moulds | Ind. | LS | 280000 | |
| Furniture and office equipments | Ind. | LS | 500000 | |
| Total | 15654600 | |||
Pre-operative Expenses
(Rs.) |
|
| Project Cost -non-refundable deposits | 400000 |
Total Fixed Capital |
(Rs.) |
| Land and Building | 12000000 |
| Machinery and Equipments | 15654600 |
| Pre-operative Expenses | 400000 |
| Total | 28054600 |
B. Working Capital (per month)
(i) Raw Material (per month)
Designation |
Nos. |
Salary (Rs.) |
Total (Rs.) |
| Administrative and Supervisory Staff | |||
| General Manager | 1 | 20000 | 20000 |
| Manager (Administration) | 1 | 18000 | 18000 |
| Manager (Production) | 2 | 14000 | 28000 |
| Supervisor | 10 | 6000 | 60000 |
| Accountant | 1 | 6000 | 6000 |
| Clerk cum Typist | 2 | 4000 | 8000 |
| Storekeeper | 1 | 5000 | 5000 |
| Peon | 1 | 3000 | 3000 |
| Sweeper | 3 | 3000 | 9000 |
| Watchman | 3 | 3000 | 9000 |
| Technical Staff (Skilled and Unskilled) | |||
| Skilled worker | 60 | 6000 | 360000 |
| Semi-skilled worker | 40 | 4500 | 180000 |
| Helper | 30 | 3000 | 90000 |
| Mechanic | 2 | 6000 | 12000 |
| Electrician | 2 | 6000 | 12000 |
| Total | 820000 | ||
| Perquisites @ 22% of Salary | 180400 | ||
| Total | 1000400 | ||
(ii) Raw Materials (per month) (50 thousand pairs per month)
Particulars |
Ind./Imp. |
Unit |
Qty. |
Rate |
Value |
| Upper Leather @ 2.5 sq. ft./pair | Ind. | Sq. ft | 125000 | 55 | 6875000 |
| Lining Leather @ 1.25 sq. ft./pair | Ind. | Sq. ft | 62500 | 30 | 1875000 |
| Textile lining tape | Ind. | Pair | 50000 | 2.4 | 120000 |
| Self adhesive cloth tape, threads, foam, cushion, eyelets | Ind | Pair | 50000 | 18 | 900000 |
| Toe puff and stiffener | Ind | Pair | 50000 | 15 | 750000 |
| Insole shanks | Ind | Pair | 50000 | 14 | 700000 |
| PVC | Ind | Kgs | 10000 | 60 | 600000 |
| Shoe finishing chemicals (cleaner, filler, finish and wax) | Imp. | Pair | 50000 | 15 | 750000 |
| Shoe laces | Ind. | Pair | 50000 | 7 | 350000 |
| Packing (tissue papers, antifungal tablet, carton box) | Ind. | Pair | 50000 | 14 | 700000 |
| Total | 13620000 | ||||
(iii) Utilities (per month)
Amount (Rs.) |
|
| Power 20,000 kWH units @ Rs. 4.50 per unit | 90000 |
| Fuel for Generator | 15000 |
| Total | 105000 |
(iv) Other Contingent Expenses (per month)
Description |
Amount (Rs.) |
| Postage and Stationery | 10000 |
| Telephone | 10000 |
| Consumable Stores | 30000 |
| Repairs and Maintenance | 25000 |
| Transport charges | 25000 |
| Advertisement and Publicity | 200000 |
| Insurance | 20000 |
| Sales Expenses | 30000 |
| Miscellaneous Expenses | 20000 |
| Total | 370000 |
(v) Total Recurring Expenditure (per month)
Description |
Amount (Rs.) |
| Personnel | 1000400 |
| Raw material | 13620000 |
| Utilities | 105000 |
| Other Contingent Expenses | 370000 |
| Total | 15095400 |
(vi) Total Working Capital
| Working capital is calculated for 1.5 months i.e. Total Recurring Expenditure x 1.5 ( 15095400 x 1.5) | = 22643100 |
C. Total Capital Investment
| Fixed Capital | 28054600 |
| Working Capital | 22643100 |
| Total | 50697700 |
Financial Analysis
Cost of Production (per annum) |
Amount (Rs.) |
| Total Recurring Cost | 181144800 |
| Depreciation on Building @ 5% | 600000 |
| Depreciation on Machinery and Equipments @ 10% | 1515460 |
| Depreciation on Office Equipments and Furniture @ 20% | 100000 |
| Interest on Total Capital Investment @ 12% | 6083724 |
| Total | 189443984 |
Turnover (per year)
Item |
Quantity(in pairs) |
Rate (Rs.)/pair |
Value (Rs.) |
| Shoes Grade-I | 570000 | 340 | 193800000 |
| Shoes Grade-II | 30000 | 200 | 6000000 |
| Total | 199800000 |
Net Profit (per year) (Before Income Tax)
| Turnover – Cost of Production | |
| Rs. 199800000 – 189443984 | |
| = 10356016 |
Net Profit Ratio
| 10356016 x 100 | |
| 199800000 | |
| 5.18% |
Rate of Return on Total Investment
Net Profit per year x 100 Total Investment |
|
| 10356016 x 100 | |
| 50697700 | |
| 20.43 |
Break-even Point
Fixed Cost (per annum)
Description |
Amount (Rs.) |
| Depreciation on Machinery | 1515460 |
| Depreciation on Office Equipments and Furniture | 100000 |
| Depreciation on Building | 600000 |
| Interest on Capital Investment | 6083724 |
| Insurance | 240000 |
| 40% of salary and wages | 4801920 |
| 40% of other contingent expenses | 1680000 |
| Total | 15021104 |
| B.E.P | Fixed Cost x 100 ---------------------------- Fixed Cost + Profit |
| 59.19 |
Addresses of Machinery and Equipment Suppliers
- M/s. Leather and Packaging Machinery Corporation,
1/23-B, Asaf Ali Road,
New Delhi-110 002.
- M/s. Torielli
1090, Periyar EVR High Road,
Chennai-600 084. - M/s. Rakesh Sukhia and Company Limited,
62-A, Wulhucattan Street, Periamet,
Chennai-600 003. - M/s. Bensen Industries
96, Sri Arobindo Road, Salkia,
Howrah-6. - M/s. Lefoot Machines,
373, Sideo Industrial Estate,
Chennai-600 098.
Footwear Components, Grinderies and Chemical Suppliers
- M/s. Agra Leather Board,
Nunhai Industrial Estate,
Agra. - M/s. Flexole Raman Limited,
Mysore Ooty Road, Tahandvapura,
Mysore. - M/s. Atlanta Trading Pvt. Company,
Atur house, Worli Naka,
Mumbai - 400 018. - M/s. Chandra Chemicals Enterprises Limited,
P-35, CIT Road,
Kolkata - 700 014. - M/s. Salma International
Salma House, 142,
Purasawalkam High Road,
Kellys,
Chennai - 600 012. - M/s. Toscana Lasts Limited
Thapar House,
124, Janpath,
New Delhi - 110 001. - M/s. Sanghavi Shoe Accessories
3, Hari Krupa, 10th Road,
Chembur,
Mumbai - 400 071. - M/s. Vardhman Threads Private Limited
4/6, D.B. Gupta Road, Paharganj,
New Delhi - 110 055. - M/s. Indian Eyelet Industries
5, Dr. Rajendra Prasad Sarani,
Kolkata - 700 001. - M/s. Skandia Cutting Dies Private Limited
1-B, General Collin Road,
Chennai - 600 122. - M/s. India Shoe Lace Works
8/359, Hing Ki Mandi,
Agra - 3.
For further information please contact
Information Manager
TIMEIS Project
E-mail: timeis@ficci.com
