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.
Uploaded on	January 2006

Introduction

Bloomer suits knitted are used by all the sections of the society for their children as a dress material. These bloomers have taken the place of textile items as these are available in very attractive designs and colours and are easy to wash. Bloomers are made out of the tubular blended knitted cloth, which is available in the local market. The pieces are cut as per the size and shape of the item and are stitched accordingly. Embroidery and patchwork is also done to make the attractive designs on the T-shirts, which is a part of the bloomer set.

Market Potential

There are number of units engaged in the manufacturing of bloomer suits, but even then the demand of these suits during the summer season is increasing day by day as these are cheap and attractive. These items suit each and every pocket as these are available in low as well as high prices, depending upon the quality of the fabric, designing and workmanship of the product. The demand of these suits in the rural as well as urban areas has shown that there is a good scope of such type of units, which can produce quality products. The scope for the export of these items to the Middle East countries and other European countries has further boosted the market of these items.

Basis and Presumptions

• The Project Profile has been prepared on the basis of single shift of 8 hours each day, 25 days in a month and at 75% efficiency.
• It is presumed that in the 1st year, the capacity utilisation will be 60% followed by 70% in the next year and 80% in the subsequent years.
• The rates quoted in respect of salaries and wages for skilled workers and others are the minimum rates prevailing in the State/Neighbouring States.
• Interest rate for fixed and working capital has been taken @ 12% on an average, whether financed by bankers or by Financial Corporations.
• Margin money required is minimum 30% of the project investment.
• The rental value of the Workshed and other built up/covered area has been taken at the rate of Rs. 100.00 per square meter.
• Pay back period of the project is 5 years after initial gestation period of one and half year.
• The rates quoted in respect of machines, equipment and raw materials are those prevailing at the time of preparation of this Project Profile and are likely to vary from supplier to supplier and place to place. When a tailor made project profile is prepared necessary changes are to be made.

Implementation Schedule

Activity	Period
Preparation of Project Report:
Calling quotations Preparation	1 Month 2 Weeks
Provisional Registration as SSI	1 week
Financial Arrangement	3 Months
Purchase and procurement of machines and equipments	2 Months
Installation of Machines	1 month
Electrification	1 month
Recruitment of Staff and Workers	1 month

Technical Aspects

Process of Manufacture

Bloomer suits are made out of the tubular knitted cloth available in the local market. Tubular knitted cloth in different colours, counts and diameters is purchased from the market and is checked for the manufacturing defects. The cloth is laid on the cutting table for marking the shape and style of the suit. The shape is given by cutting the fabric by use of scissors or straight knife cutting machine. In case of printing or embroidery or patchwork is to be done for making the piece attractive, then these pieces are sent for the same in the market for getting these works on job work basis. Then, these pieces are stitched on industrial sewing machines i.e. sewing machine, over lock and flat lock machine. Stitched pieces are checked and pressed for final packing. These packed pieces are sent to the market for sale.

Quality Control and Standards

The product is a fashion item and there is no such specification for this item, however, quality of the project depends upon the quality of the fabric.

Production Capacity (per annum)

Item	Qty.	Amount(In Rs.)
Baby Bloomer Suits	12000 Dozens.	1,19,21,000
Motive Power		10 H.P.

Pollution Control

As the industry does not involve any pollution as such, no pollution control measures are required.

Energy Conservation

As the power requirement is small proper house keeping can save it.

Financial Aspects

Fixed Capital

Building = 100 Sq. Mtrs. The building is considered rental with monthly rent of Rs. 10,000 per month @ Rs. 100 per sq. mtr.

Machinery and Equipment

Description of Machines	Qty.	Rate(In Rs.)	Amount(In Rs.)
High speed overlock machine with motor and Stand	3	1,00,000	3,00,000
High speed self lubricated flat lock stitch machine with motor and Stand	2	1,20,000	2,40,000
Elastic insertion machine with motor and stand	1	1,50,000	1,50,000
High speed lock stitch machine with motor and stand.	2	30,000	60,000
Rib cutting machine with stand and motor	1	10,000	10,000
Office furniture, cutting tools, pressing table, racks, electric press, scissors measuring instruments	LS	3,00,000	3,00,000
Electrification, installation, taxes etc.	L.S.	L.S.	3,00,000
Total			13,60,000

Working Capital (per month)

Personnel

Designation	No.	Salary(In Rs.)	Amount(In Rs.)
Supervisor/Manager, Sales staff, accountant	-		50,000
Peon/Chowkidar	2	4,000	8,000
Skilled Worker	10	5,000	50,000
Helpers	6	3,500	21,000
Total			1,29,000
Add Per-quisites @ 22% of salary			28,000
Total			1,57,000
or Say			1,57,000

Raw Materials (per month)

Particulars	Amount (Rs.)
Dyed knitted PC cloth 1250 Kg @ Rs. 250 per Kg.	313,000
Sewing thread, stickers, labels, polythene bags boxes etc.	70,000
Total	383,000
Utilities (per month)	(Rs.)
Power, Water	5000
Total	5000
Other Contingent Expenses (per month)	(Rs.)
Rent of building	10,000
Advertisement, sales, traveling	50,000
Consumable Stores	5,000
Adminstrative expenses	20,000
Telephone	5000
Repairs and maintenance	5,000
Transport	25,000
Miscellaneous	5,000
Printing job work	80,000
Total	2,00,000
Total Recurring Expenses (per month)	(Rs.)
Staff and labour	1,57,000
Raw material	3,83,000
Other contingent expenses	2,00,000
Total	7,45,000
Working Capital for 3 months = Rs. 7,45,500 × 3	Rs.22,35,000

Total Capital Investment	(Rs.)
Fixed Capital	Rs. 13,60,000
Working capital for 3 Months	Rs. 22,35,000
Total	Rs. 35,95,000

Machinery Utilisation

75% machinery utilisation is considered for achieving the projected target.

Financial Analysis

Cost of Production (per year)	(Rs.)
Total recurring cost	89,40,000
Depreciation on machinery and equipments @ 10%	1,06,000
Depreciation on furniture, fixtures @ 20%	60,000
Interest on total investment @ 12%	4,31,000
Total	Total

Turnover (per year)

Item	Qty.	Rate (Rs.)	Value (Rs.)
Baby bloomer suits	12000 Dozens	993 per dozen	1,19,21,000

Net Profit (per year) (Before Income Tax)

	1,19,21,000 - 95,37,000
	Rs. 23,84,000

Net Profit Ratio

Net Profit × 100 -------------------------------- Turn over per year 23,84,000 × 100 -------------------- 1,19,21,000 20%

Rate of Return

Net Profit × 100 ----------------------- Total Investment 23,84,000 × 100 -------------------- 35,95,000 66.3%

Break-even Point (% of Total Production Envisaged)

Fixed Cost (per year)	(Rs.)
Total Depreciation	1,66,000
Rent	1,20,000
Total interest	4,31,000
40% of salary and wages	7,54,000
40% of other contingent expenses (excluding rent)	9,60,000
Total	24,31,000
Net Profit (per year)	23,84,000

B.E.P.

Fixed Cost × 100 --------------- Fixed cost + Profit 24,31,000 × 100 ------------------------- 24,31,000 + 23,84,000 = 50.4%

Addresses of Machinery and Equipment Suppliers

• M/s. Akal Mechanical Works
  Overlock Road,
  Indl. Area-B,
  Ludhiana.
• M/s. Swaroop Mechanical Works
  Gali Wakila, Purana Bazar,
  Ludhiana.
• M/s. Sodhi Sewing System Co.
  C-4, Caliber Plaza,
  Ludhiana.

Raw Material Suppliers

Easily available in the local market.

For further information please contact

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