Scribd Logo
Upload

Welcome to Scribd!

  • 114 views

    Project On Jute Weaving

    Uploaded by

    ArjyoBasu
    The document discusses starting a jute weaving business. Key details include: 1) Jute products like door mats, floor coverings and screens have market demand in homes and commercial sectors due to their decorative style and affordable prices. 2) The total capital requirement to start the business is Rs. 1,13,435, with fixed costs of Rs. 55,000 and working capital of Rs. 58,435. 3) At 70% of the rated production capacity, the annual sales are estimated to be Rs. 4,39,500 with a profit of Rs. 1,33,485 and a 30% pre-tax return on sales.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd

    Project On Jute Weaving

    Uploaded by

    ArjyoBasu
    114 views3 pages
    The document discusses starting a jute weaving business. Key details include: 1) Jute products like door mats, floor coverings and screens have market demand in homes and commercial sectors due to their decorative style and affordable prices. 2) The total capital requirement to start the business is Rs. 1,13,435, with fixed costs of Rs. 55,000 and working capital of Rs. 58,435. 3) At 70% of the rated production capacity, the annual sales are estimated to be Rs. 4,39,500 with a profit of Rs. 1,33,485 and a 30% pre-tax return on sales.

    Original Description:

    jute_weaving.pdf

    Original Title

    Project on Jute Weaving

    Copyright

    © © All Rights Reserved

    Available Formats

    PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    The document discusses starting a jute weaving business. Key details include: 1) Jute products like door mats, floor coverings and screens have market demand in homes and commercial sectors due to their decorative style and affordable prices. 2) The total capital requirement to start the business is Rs. 1,13,435, with fixed costs of Rs. 55,000 and working capital of Rs. 58,435. 3) At 70% of the rated production capacity, the annual sales are estimated to be Rs. 4,39,500 with a profit of Rs. 1,33,485 and a 30% pre-tax return on sales.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    114 views3 pages

    Project On Jute Weaving

    Uploaded by

    ArjyoBasu
    The document discusses starting a jute weaving business. Key details include: 1) Jute products like door mats, floor coverings and screens have market demand in homes and commercial sectors due to their decorative style and affordable prices. 2) The total capital requirement to start the business is Rs. 1,13,435, with fixed costs of Rs. 55,000 and working capital of Rs. 58,435. 3) At 70% of the rated production capacity, the annual sales are estimated to be Rs. 4,39,500 with a profit of Rs. 1,33,485 and a 30% pre-tax return on sales.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 3

    239

    JUTE WEAVING

    Introduction:

    Decorative jute weaving products have demands in most of the homes. It is not only fashionable
    but also durable and washable. It has made its presence not only in the domestic sector but also
    commercial sectors like hotels. Convention centres also prefer to have them.

    Market Potential:

    The door mats, floor covering, screens and durries have great demand in the urban and semi-
    urban homes, apart from these the big hotels. Commercial centres, malls, clubs also give
    preference to these items due to their decorative looks and comparatively cheaper price.

    Raw materials:

    Jute yarn : 2580 kg.
    Cotton yarn : 192 Kg.
    Acrylic yarn : 273 kg.

    Machinery:

    The major equipment required are

    1. Loom : 4 Nos. x Rs 6000 = Rs 24,000
    (Complete with all
    accessories)
    2. Bobbin Crile : 1 No. x Rs 1000 = Rs 1,000
    3. Charkha : 1 No. x Rs 500 = Rs 500
    4. Bobbin : 100 Nos. x Rs 3 = Rs 300
    5. Pirn : 100 Nos. x Rs 3 = Rs 300
    6. Shuttle : 10 No. x Rs 50 = Rs 500
    7. Misc. Items : L.S. Rs 3,400
    Total Rs 30,000
    ========
    Infrastructure:

    The major infrastructure requirement are

    Covered Area : 40 sq.mt.
    Power : 1 KW.

    Location:

    The suggested locations are

    Assam : Kokrajhar, Bongaigaon, Guwahati, Nagaon,
    Sibsagar, Tinsukia.
    Arunachal Pradesh : Itanagar, Doimukh, Pasighat
    Meghalaya : Nongpoh, Tura, Williamnagar
    Nagaland : Dimapur, Kohima
    Tripura : Agartala, Udaipur
    Manipur : Imphal, Churachandpur, Thoubal.
    Mizoram : Aizawl.
    Sikkim : Gangtok, Penlang, North sikkim area
    Total Capital Requirement:
    The total capital requirement including fixed capital and working capital is estimated at Rs
    1,13,435 as follows. Of this, the project cost comprising fixed capital and margin money on
    working capital is Rs 75,435 lakhs.

    240
    A. Fixed Capital: (Rs in lakh)
    Land building Rented
    Machinery 30,000
    Miscellaneous fixed assets 15,000
    Preliminary and pre-operative expenses _10,000
    Total (A) 55,000
    ======
    B. Working Capital:
    Raw materials & Packing material 1 month 13,300
    Finished goods 15 days 14,060
    Working expenses 1 month 9,100
    Receivables 15 days 21,975
    Total (B) 58,435
    ========
    Total (A)+(B) 1,13,435
    Note: Working capital may be financed as:
    Bank Finance .. Rs 38,000
    Margin Money.. Rs 20,435
    Rs 58,435
    =========
    Capital Cost of Project:

    1. Fixed Cost.. Rs 55,000
    2. Margin money for W.C. .. Rs 49,000
    Rs 75,435
    ========
    Means of Finance:

    Promoters contribution (35%) Rs 26,435
    Term Loan (65%) Rs 49,000
    Rs 75,435
    =========
    Operating Expenses:
    The annual operating expenses are estimated at Rs. 3,06,015 as given below:
    (Rupees)
    1. Raw materials:
    i) Jute yarn 2580 kg. 77,400
    ii) Cotton yarn 192 kg. 26,880
    iii) Acrylic yarn 273 kg. 54,600
    iv) Misc. items (L.S) 1,120
    1,60,000
    2. Utilities 12,000
    3. Wages & Salaries 97,200
    4. Rent, Insurance 12,000
    5. Other overheads 12,000
    6. Interest on term loan@ 11.50% 4,180
    7. Interest on Bank Finance for
    Working Capital@11% 5,635
    9. Depreciation @10%on m/ 3,000
    Grand Total 3,06,015
    ========
    Sales Realization:
    Sl.No. Particulars No. Rate (Rs) Value (Rs)
    1.. Door mat (13x22) 600 Nos. 80/- 48,000
    2. Floor covering (4x6) 600 Nos. 350/- 2,10,000
    3. Screen (1200m) -- -- 60,000
    4. Durry (2.50 x 5) 450 Nos. 100/- 45,000
    TOTAL 4,39,500

    241
    Profitability :
    Based on the sales realization of Rs 4,39,500 and the operating expenses of Rs. 3,00,015
    the profit would be Rs 1,33,485 per year. This works out to a return on investment of 118%.
    The plant will break even at 40% of the rated capacity.

    Highlight:
    The major highlights of the project are as follows:
    Total capital requirement : Rs 1,13,435
    Promoters contribution : Rs 26,435
    Annual sales realization (70% cap.) : Rs 4,39,500
    Annual operating expenses (70% cap.) : Rs 3,06,015
    Annual profit (pre-tax) : Rs 1,33,485
    Pre-tax Return on Sales : 30%
    Break Even Point : 40%
    No.of persons employed : 7

    Suppliers of Machinery

    All machineries and equipment are available in the local market.

    You might also like