This document provides a project profile for manufacturing EVA soles. It outlines plans to produce 240,000 pairs of EVA soles per year valued at Rs. 76,80,000. The profile describes the manufacturing process, raw material needs, machinery requirements, financial projections, and supplier information to establish this sole production business. It estimates a net annual profit of Rs. 11,83,700 and break-even point of 46.8% of planned production.
This document provides a project profile for manufacturing EVA soles. It outlines plans to produce 240,000 pairs of EVA soles per year valued at Rs. 76,80,000. The profile describes the manufacturing process, raw material needs, machinery requirements, financial projections, and supplier information to establish this sole production business. It estimates a net annual profit of Rs. 11,83,700 and break-even point of 46.8% of planned production.
This document provides a project profile for manufacturing EVA soles. It outlines plans to produce 240,000 pairs of EVA soles per year valued at Rs. 76,80,000. The profile describes the manufacturing process, raw material needs, machinery requirements, financial projections, and supplier information to establish this sole production business. It estimates a net annual profit of Rs. 11,83,700 and break-even point of 46.8% of planned production.
This document provides a project profile for manufacturing EVA soles. It outlines plans to produce 240,000 pairs of EVA soles per year valued at Rs. 76,80,000. The profile describes the manufacturing process, raw material needs, machinery requirements, financial projections, and supplier information to establish this sole production business. It estimates a net annual profit of Rs. 11,83,700 and break-even point of 46.8% of planned production.
PRODUCTION CAPACITY: Quantity: 2,40,000 pairs of Eva Sole per
annum Valued at Rs 76,80,000/-
MONTH AND YEAR
OF PREPARATION:
PREPARED BY:
18-04-2011
LEATHER & FOOT WEAR DIVISION
MSME DEVELOPMENT INSTITUTE GOVT. OF INDIA, MINISTRY OF MICRO, SMALL & MEDIUM ENTREPRISES VIKAS SADAN, COLLEGE SQUARE CUTTACK-753003, ORISSA TEL. 2548049/77 FAX: 0671-2548006 WEBSITE: www.msmedicuttack.gov.in
INTRODUCTION: Eva sole is a product involving a process which uses specially designed presses to directly vulcanize where rubber compound is used especially in the manufacturing of foot wear industry. These soles are the latest trend in the fashion world. These are generally light weight and very comfortable to wear. These soles are at present being manufactured in places like Delhi, Agra, Bombay, Madras, and Calcutta etc. But due to the increasing demand of these products all over the country it can be manufactured any where in the country. PLANT CAPACITY PER ANNUM: It is envisaged to produce 2,40,000 pairs of Eva Sole and other rubber compound products needed in foot wear industry. MARKET AND DEMAND ASPECTS: The demand of the sole is increasing rapidly as shoe users are growing in the country every day. The manufacturers are very much interested to attach the sole with upper portion of the shoes. As the name indicates the soles are made with rubber compound and rubber sole is increasingly popular due to its cheapness and comfort in uses. If such product is manufactured locally, the eva sole can be attached with upper section of footwear and sold at a comparatively lower price and it will fetch good amount of earning for the entrepreneur to cater to the needs of the state. Raw Materials: Sr. No 1. 2 3.
Particulars Eva compound Other chemicals Packaging materials
Qty. 4,000 M.T L.S L.S
Manufacturing Process and Source of Technology(In Brief):
In the manufacturing process, the ingredient chemicals are placed on the automatic moulding machine. The quality of sole ( wear property ,adhesion, effectiveness, flexibility, foot comfort etc) is dependent on appropriate composition of the ingredient chemicals. The rubber compound is made up of mixing several constituents. The proportion of the compounds and the ingredients present in the rubber compound determine the temperature and time required to mould and cure the sole. On the whole, the greater the proportion of rubber present in the compound, the longer will be the curing time. An average mix of the rubber compound consists of 45/55% of rubber (dependent on required performance). An appropriate filler must be added to improve abrasion and resistance to tear. Pigment for colour of the sole and a suitable vulcanizing agent for short cure and good aging property should be added. In many cases, lightness of the finished products is an important sales feature. Same can be attained by use of low specific gravity material when the finished sole reduces in hardness. Source of Technology: From knowledge and experience of technical personnel of MSME- DI, Cuttack. BASIS OF PROJECT SELECTION: Since many foot wear industries have come up in Orissa, one entrepreneur started demanding preparation of project profile on Eva Sole. The market study was conducted and the tentative market demand and gap was assessed and it was found that some MSMEs can be engaged in manufacture of foot wear that will not face any problem in marketing their products and the cost of production will be competitive in the market. PRESUMPTION: 1. 2.
The unit will work 25 days a month on a single shift basis of 8
hours duration. The scheme is meant to undertake production of eva sole only. The artisans may select the other items having local demand or in which they posses the skill and expertise.
3. 4. 5.
6.
The labour and wages as shown in this project conform to the
labour rules of the state government. The interest rate of the term loan is taken as 12% per annum on an average. The cost of the machinery and raw materials are given as per prevailing market price at the time of preparation of the project profile. The rent for the building of 100 Sq. mt. covered area has been taken @ Rs 2,000/- per month.
PRODUCTION CAPACITY: It is envisaged to produce 2,40,000 pairs of Eva Sole Rs 76,80,000/-.
valued at
Utilities per month:
Power 3500 KWH units @ Rs.3.2 per unit Rs.11,200/Water
LS Rs 300/Sub Total Rs. 11,500/-
FINANCIAL ASPECTS: 1.
FIXED CAPITAL
i) Building :- 100 Sq. mt.
Rent Rs 2,000/- (P.M.)
ii) MACHINERY AND EQUIPMENT:
Sl Description Ind /Imp NO. 1 Automatic Eva foam Ind moulding machine (2 session) including all accessories 2 Mould/ dies Ind. 3 Other hand tools & equipments 4 Office furniture & fixture 14 Installation charges @10% TOTAL
Particulars Eva compound Other chemicals Packaging materials
Qty. 4,000 M.T L.S L.S
Rate (Rs.) 92 / kg.
Total iii) Utilities
Value (Rs.) 3,68,000 2,000 8,000 Rs 3,78,000
(pm): Power 3500 KWH units @ Rs.3.2 per unit Rs.11,200/Water LS Rs 300/Sub Total Rs. 11,500/-
iv) Other
miscellaneous recurring expenses (pm):
-Traveling & transport charges Rs 18,000 -Repair and maintenance
Rs. 1,000/-Postage on stationary
Rs. 800/-Telephone charges
Rs. 1,500/- Consumable items
Rs. 1,000/- Rent --Rs 2,000/- Insurance
Rs. 500/- Advertisement and publicity Rs. 1,000/- Misc. Expenditure
Rs. 2,920/- Sub- Total
Rs. 28,720/-
Sales per Year or turnover per year:
Turnover by sale of 2,40,000 pairs per year@ Rs 32/ pair is Rs 76,80,000/Financial Aspects: Total Working Capital (P.M): i + ii + iii + iv =Rs. 81,650/- + Rs. 3,78,000//- + Rs.11,500/- + Rs.28,720/= Rs. 4,99,870/-, Say Rs 5,00,000/Working Capital for Three Months: Rs. 15,00,000/4.
Total capital investment:
Fixed Capital Working capital for 3 months
Rs. 14,97,500/Rs. 15,00,000/Total Rs 29,97,500/-
Financial Analysis: Cost of Production (P.A): Total recurring expenditure Depreciation on machinery and hand tools@ 10% Depreciation on office furniture @ 20% Interest on total capital investment @ 12%
Rs.60,00,000 Rs. 1,34,600 Rs. 2,000 Rs. 3,59,700
Total
Rs.64,96,300
Turnover per year:
Turnover by sale of 2,40,000 pairs per year @ Rs 32/ pair is Rs 76,80,000/Net Profit (per year):- Turnover Cost of production = Rs 76,80,000/- - Rs.64,96,300 =Rs 11,83,700/Profit Ratio on Sales:- Net Profit per year/ turnover per year x 100 = = Rs 11,83,700/- x 100 = 15.4 % Rs. 76,80,000/Rate of Return:- Net Profit per year/ Total capital investment x 100 = = Rs 11,83,700/- x 100 = 39.5 % Rs 29,97,500/Break Even Analysis(B.E.P): Fixed cost: Total Depreciation Total Interest Insurance Rent 40% of salary and wages 40% of other contingent expenditure (excluding rent, insurance) Total Break Even Point = Fixed cost x 100 = Fixed cost + Net profit per year = Rs.10,42,636 x 100 Rs.10,42,636 + Rs.11,83,700/= 46.8%
M/s Prototype Development and Training Centre, Sector-B24, Guindy Industrial Estates, Madras-97 M/s Priscisor Shoe Last Factory, 60, Industrial Estates, NUNHAI,AGRA-6 M/S BENSON INDUSTRIES,96,Sri Aurovindo road,Salkia, HOWRAH-6
List of Suppliers Address for Raw Material:
M/s Chandras Chemicals Pvt. Ltd, P-35, CIT Road, Calcutta-14. M/s Agra Leather Board Pvt. Ltd., 5, Industrial Estate, Agra-6 Resource Centre of Technology: 1) Technological Bureau of Small Enterprises, Ministry of MSME, Govt. of India, New Delhi. 2) Central Leather Research Insitute, Guindy, Chennai. 3) Different Engineering colleges in the country. 4) Leather & Footwear division, MSME-DI, Vikas Sadan,College square, Cuttack. List of the units set up by using this project profile: 1)
Prop: Prasant Naik
M/S Satyam Footwear At/Po: Bandhapali Dist: Sundergarh.
10
PROJECT PROFILE
PRODUCT:
NIC CODE
MANUFACTURING OF EVA SOLE
PRODUCT CODE:
25191
ASICC: 41311
PRODUCTION CAPACITY (PER ANNUM): By sale of 2,40,000 pairs of Eva Sole
MONTH AND YEAR
OF PREPARATION:
PREPARED BY:
Rs 74,40,000/-
18-04-2011
LEATHER & FOOT WEAR DIVISION
MSME DEVELOPMENT INSTITUTE GOVT. OF INDIA, MINISTRY OF MICRO, SMALL & MEDIUM ENTREPRISES VIKAS SADAN, COLLEGE SQUARE CUTTACK-753003, ORISSA TEL. 2548049/77 FAX: 0671-2548006 WEBSITE: www.msmedicuttack.gov.in
11
INTRODUCTION:
Eva sole is a process involving the use of specially designed presses
as direct volcanised process whereby rubber compound is used especially in the manufacturing of foot wear industry. These soles are the latest trend in the fashion world. These are generally light weight and very comfortable to wear. These soles are at present being manufactured in places like Delhi, Agra, Bombay, Madras, and Calcutta etc. But due to the increasing demand of this products all over the country these can be manufactured any where in the country. PLANT CAPACITY PER ANNUM: It is envisage to produce 2,40,000 pairs of Eva Sole Rs 74,40,000/-
valued at
MARKET AND DEMAND ASPECTS:
The demand of the sole is increasing rapidly. The manufacturers are very much interested to attach the sole with upper portion of the shoes. As the name indicates the soles are made with rubber compound and rubber sole is increasingly popularity due to its cheapness and comfort in uses. If such product is manufactured locally these eva sole can be attached with upper section of footwear or sold at a comparatively lower price and it will fetch good amount of earning for the entrepreneur to cater to the needs of the state. Raw Materials: Sr. No 1. 2 3.
Particulars Eva compound Other chemicals Packaging materials
Qty. 4,000 M.T L.S L.S
Rate (Rs.) Rs 92 / kg.
Total
Value in(Rs.) 3,68,000 2,000 8,000 Rs 3,78,000
12
Manufacturing Process and Source of Technology:
In the process the ingredient chemicals are placed on the automatic moulding machine where quality of sole i.e. wear property ,adhesion, effectiveness, flexibility, foot comfort etc would all be dependent on an appropriate composition. The rubber compound is made by mixing several constituents. The proportion of these and the other ingredients present in the rubber compound determine the temperature and time required to mould and cure the sole. On the whole the greater the proportion of rubber present in the compound, the longer will be the curing time. An average mix of the rubber compound consists of 45/55% of rubber (dependent on performance required). To this must be added an appropriate filler to improve abrasion and resistance to tear, pigment for colour of the sole and a suitable vulcanizing agent for short cure and good aging property. Lightness, if the finished product is an important sales feature and can be attained by use of low specific gravity material, the finished sole declines in hardness. SOURCE: From experience of technical personnel at MSME-DI, Cuttack. BASIS OF PROJECT SELECTION: Since many foot wear industries have come up in Orissa, one entrepreneur started demanding preparation of project profile on Eva Sole. The market was study and their tentative requirement was assessed and it was found that some MSMEs can be engaged in manufacture of foot wear that will not face any problem in marketing their products and the cost of production will be competitive in the market. PRESUMPTION: 7. 8.
9. 10.
The unit will work 25 days a month on a single shift basis of 8
hours duration. The scheme is meant to undertake production of eva sole only. The artisans may select the other items having local demand or in which the posses the skill and expertise. The labour and wages as shown in this project conform to the norms of the rules and regulations of the state government. The interest rate of the term loan is taken as 12% on an average.
13
11.
12.
13.
The cost of the machinery and raw materials are given as per the supplied by the entrepreneur at the time of preparation of the project profile. The scheme is prepared under KVIB-REGP scheme and promoters contribution is taken @5% and balance amount will be provided by financial institute. The rental value for the building of 0.10 decimils covered area has been taken @ Rs 2,000/- per month.
PRODUCTION CAPACITY: It is envisage to produce 2,40,000 pairs of Eva Sole Rs 74,40,000/-
valued at
TECHNICAL ASPECTS: PRODUCT DETAILS:
In the process the ingredient chemicals are placed on the automatic moulding machine where quality of sole i.e. wear property ,adhesion, effectiveness, flexibility, foot comfort etc would all be dependent on an appropriate composition. The rubber compound is made by mixing several constituents. The proportion of these and the other ingredients present in the rubber compound determine the temperature and time required to mould and cure the sole. On the whole the greater the proportion of rubber present in the compound, the longer will be the curing time. An average mix of the rubber compound consists of 45/55% of rubber (dependent on performance required). To this must be added an appropriate filler to improve abrasion and resistance to tear, pigment for colour of the sole and a suitable vulcanizing agent for short cure and good aging property. Lightness if the finished product is an important sales feature and can be attained by use of low specific gravitry material, the finised sole declines in hardness. Production Capacity (per annum) By sale of 2,40,000 pairs @ Rs 31/ pair
Rs 74,40,000/-
Utilities:
1.
Power Water Sub Total
3500 KWH units @ Rs.3.2 per unit Rs.11,200/LS
Rs 300 Rs. 11,500/-
Approximate Power Requirement:
14
The approximate power requirement of the unit is around 3500 kWh per month. 2.
Pollution Control: This industry does not creates pollution. However preventives measures may be adopted for the safe side for the workers.
3.
Energy Conservation: Workers should be properly trained to minimize wastage of electrical energy by proper running and maintenance of the machines.
15
FINANCIAL ASPECTS: 3.
FIXED CAPITAL
i) Building :- 0.10 Decimal Rental basis
Rs 2,000/- (P.M.)
ii) MACHINERY AND EQUIPMENT:
Sl NO. Description Ind /Imp 1 Automatic Eva foam Ind moulding machine (2 session) including all accessories 2 Mould/ dies Ind. 3 Other hand tools & equipments 4 Office furniture & fixture 14 Installation charges @10% TOTAL
Quantity 1
Price (Rs.) 10,00,000
12 nos. L.S
3,36,000 10,000
L.S
10,000 1,00,000 14,56,000
iii) Preoperative Expenses:-
Project profile Travel charges Telephone Sale tax register Packing material (paper box and polythene pkt.) Other misc. expenses
Rs Rs Rs Rs Rs Rs
500 10,000 5,000 6,000 10,000 10,000
Rs
41,500
Total fixed capital expenses = Rs 14,97,500/4.
Sr. No 1. 2 3. 4 5. 6. 7 Add
Working Capital(P.M): i) Staff and Labour: Description
No
Manager (Self) Supervisor Rubber technologist Skilled worker Semi-skilled worker Clerk cum store keeper Peon/watchman
one one one four five one Two
Salary (Rs.) 10,000 5,000 8,000 5000 3,500 3,500 3,500 Total
Financial Analysis: Cost of Production per annum: Total recurring expenditure Depreciation on machinery and hand tools@ 10% Depreciation on office furniture @ 20% Interest on Total capital investment @ 12% Total
Fixed cost: Total Depreciation Total Interest Insurance Rent 40% of salary and wages 40% of other contingent expenditure (excluding rent, insurance) Total
Break Even Point = 49..5 %
LIST OF MACHINERY AND MATERIAL SUPPLIERS: LIST OF MACHINERY AND EQUIPMENT SUPPLIERS: 1.Labtech Footwear 85/12, 6th Cross, Srinivas Temple Street, Maruthi Nagar, Madiwala Bangalore - 560 001, Karnataka (India) Phone. : +91-80-25635530 Mobile: +91-9343796915 Fax : +91-80-25635275 E-mail: [email protected]
APL Polyfab Pvt. Ltd. - Kolkata, West Bengal (India)
Engaged in manufacturing and exporting of footwear componetns such as jute insole boards, polyfab coated toe puffs, counter sheet, hifles jute insloes, jute boards, sole beds and other shoe components under brand name of polyfab and renotex. Website: http://www.indiamart.com/aplpolyfab Send Online Trade Enquiry
Labtech Footwear - Bangalore, Karnataka (India)
Manufacturer of footwear components like back counter moulding machine, hydraulic toe lasting machine, mixing roller shop, sponge press shop, cutting shop, buffing shop and trimming shop. Website: http://www.indiamart.com/labtechfootwear Send Online Trade Enquiry
V. J. P. Enterprises - Chennai, Tamil Nadu (India)
Wholesale supplier of leather footwear components that includes leather shoe uppers, leather shoes, EN344 leather shoe upper, leather sandals, leather thongs and light weigth shoes. Website: http://www.indiamart.com/vjpenterprises Send Online Trade Enquiry
