School Uniforms

Product Code	18101
Quality and Standards	N.A.
Production Capacity	Qty. : 30000 Pcs. Value: Rs.
Uploaded on	August 2007

Introduction

This profile shows the costs structure, profitability and other particulars for making school uniforms for children in the age group 3-10 years. It is suggested that school uniforms be made for six to eight months and ready-made garments for the remaining months of the year in order to keep that unit functioning. Cloth requirements, costs and product prices are worked out in this report on the basis of average sizes of uniforms and readymade garments.

Market Potential

Uniform for school students is a must in any region. It can be assumed that every student requires at least two pairs of uniform every year. This assumption suggests that the proposed capacity of 6,000 pairs requires at least 3,000 students in the location where this unit is to be set up. Therefore the unit would have enough market potential in any area where 8-10 schools function. The total market potential in any particular location can be worked out by multiplying the number of students upto 10 years age in each school and the number of schools. Generally people prefer to buy ready-made garments for children instead of getting it stitched. Additional item proposed in this project is readymade garments for children. Capacity of such ready-made garments is only 3,000 pieces and the market would not be difficult as clothing is one of the basic necessities.

Basis and Presumptions

• This project profile has been prepared on the basis of double shift of 16 hrs. per day, 25 days in a month.
• The rates quoted in respect of salary and wages are above the minimum wages.
• Interest rate on term loan and working capital loan has been taken @ 13% .
• Margin money is required at 30% of total capital investment.
• Cost of machinery and equipments, raw materials and consumables, other expenses etc. indicated in the profile are based on the prices prevailing at the time of project preparation. Therefore, these are subject to necessary changes from time to time.

Implementation Schedule

For commencement of production, the project will take a period of 6 months from the date of approval of the scheme. Break-up of the activities with relative time for each activity is shown below:

Name of Activity	Period
Scheme preparation and approval	1 month
Provisional registration as SSI	1 week
Sanction of loan	3 months
Placement of orders for delivery of machinery	2 weeks
Installation of machinery	1 week
Electrification	2 weeks
Recruitment of staff and workers.	2 weeks

Technical Aspects

Process of Manufacture

Manufacturing process involves following steps:

• Procurement of fabric: As per the demand, dyed/bleached/printed cotton/synthetic fabric of various colours are to be procured from the market. Fabric will be inspected by laying on the inspection table against light before cutting so that unevenness in colour/ shade or any other fault if visible in the fabric are eliminated.
• Cutting and Stitching: Inspected fabric is placed on the cutting table in the form of layers and then the different parts of the respective garments is demarked by a chalk as per different sizes. Cutting of garment parts is done manually.
  Stitching is carried out for individual portion of the garments by skilled workers with the help of over lock, lock stitch machines etc.
• Checking, Processing and Packing: Final checking is done before pressing and packing on the checking table so that any fault in the piece may be removed and protruding threads may be eliminated. Individual pieces are pressed by electric presses to remove any wrinklemarks and packed in the carton boxes.

Quality Control and Standards

No standards are available for the manufacturing of these items. However, care must be taken to procure good quality apparel fabrics.

Production Capacity (per annum)

Production capacity of the unit is 15,000 pieces of school uniforms including 3,000 pieces of children readymade garments.

Motive Power

HP power is required to run this unit at full capacity.

Financial Aspects

Fixed Capital

Land and Building
Land 200sq.mt. @ Rs. 3000p.s.m. Amounting Rs 600000.00
Building Area
Factory shed	100 sq. mt.
Store (Raw material)	25 sq. mt.
Store (Finished goods)	50 sq. mt.
Office etc.	25 sq. mt.
Total Covered Area	100 sq. mt.
Total Construction Cost @ Rs. 4000/sq.mt.	400000.00
Total Investment in land and Building	1000000.00

Machinery and Equipments

Description	No.	Rate (Rs.)	Amount (Rs.)
Singer universal sewing machine with 1/4 HP	4	8000	32000
Singer automatic zig-zag machine	1	24000	24000
Singer overlock with 1/2 HP motor	1	9000	9000
Cutting table	1	2500	2500
Other miscellaneous assets (scissors, tapes, etc.)	LS	3600	3600
Total			75100

Other Fixed Assets	(Rs.)
Erection and installation	8000
Furniture	40000
Pre-operative expenses	10000
Total	10000
Total Fixed Capital(i)+(ii)+(iii)	1133100

Working Capital (per month)

Staff and Labour Wages

Designation	Nos.	Rate (Rs.)	Amount (Rs.)
Manager/ Cutting Master	1	8000	8000
Skilled workers	12	5000	60000
Un-skilled workers	6	3000	18000
Peon/chowkidar	1	3000	3000
Total			89000
Perquisites @ 22%			19580
G. Total			108580

Raw Material

Designation	Qty (mts.)	Rate / Unit (Rs.)	Amount (Rs.)
Plain dyed P/C cloth	400	64	25600
P/C cloth for Shirting	550	58	31900
Dyed Cotton cloth for Froc	460	52	23920
P/C cloth for blouse	520	52	27040
Cloth for stitching of RMG	520	520	520
Sewing thread, zips etc.	LS		3500
Total			143160

Utilities (per month)	(Rs.)
Electricity bill, water and sanitation	4000
Total	4000

Other Contingent Expenses	(Rs.)
Repair and maintenance @ 5%	4000
Postage/stationery, telephone etc.	1000
Miscellaneous	2000
Total	7000

Total Recurring Expenses (per month)	(Rs.)
Staff and labour	108580
Raw material	143160
Utilities	4000
Other expenses	7000
Total	262740

Total Working Capital (for 1 month) Rs. 262740

Total Capital Investment

Land ,Machinery and equipment	1133100
Working capital for 2 months	525480
Total	1658580

Financial Analysis

Cost of Production (per year)	(Rs.)
Recurring expenses	3152880
Depreciation on machinery @10%	7510
Depreciation on Building @ 5 %	50000
Interest on total capital investment @ 13%	34156.2
Total	3244546.2

Total Sales

Items	Qty.	Qty.	Qty.
Knicker	6000	130	780000
Shirt	6000	110	660000
Frock	6000	110	660000
Blouse	6000	110	660000
Readymade Garments	6000	120	720000
Total	30000		3480000

Profit (per annum)	235453.8
Net Profit Ratio (Net Profit/ Turnover per annum)	6.77
Rate of Return on Investment (Net Profit/Total Capital Investment)	14.2

Break-even Point

Fixed Cost	(Rs.)
Depreciation on building	50000
Depreciation on machinery @ 10%	7510
Interest on term loan amount	34156.2
40% of salary and wages	521184
40% of other expenses	33600
Total	646450.2

B.E.P

FC + Profit --------------- =54%

Addresses of Machinery Suppliers

• M/s. Technik India (Apparel) Private Limited
  74-E, First Floor,
  Southern Wing,
  Mount Road, Guindy,
  Chennai-600 032
• M/s. Industrial Sewing Systems
  19, First Floor,
  Jawaharlal Nehru Salai,
  Ambal Nagar,
  Ekkaduthangal,
  Chennai-600 097
• M/s. Apparel and Leather Technics Limited
  Kaikondanahalli, Sarjapur Road,
  Near Bellandur Gate,
  Carmelram Post,
  Bangalore–560 035
• M/s. Apparels and Leather Technics Limited
  B-283, Okhla Industrial Area,
  Phase-I,
  New Delhi-110 020.

Raw Material Suppliers

• M/s. Shree Meena Fashions
  No. 478/32, F, Ist Floor,
  Chinery Vayal Kadu, Pallapatty,
  Salem-636 009
• M/s. Kalaimani Textiles
  No. 1, Selvapuram,
  Thennampalayam Extn.
  Tirupur-641 604
• Agents of Weaving Mills.
• Powerloom Clusters in different states.

For further information please contact

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