1

Canvas Shoes

PRODUCT CODE : 30130100

QUALITY AND STANDARDS : IS 3935:1966
PRODUCTION CAPACITY : Quantity: 1,20,000 Pairs (per annum)
Value: Rs. 84,00,000
MONTH AND YEAR : March, 2003
OF PREPARATION
PREPARED BY : Small Industries Service Institute
34, Industrial Estate, Nunhai,
Agra– 282006
Ph. No.: 240545 , Fax No. : (0562)- 240544

INTRODUCTION The rubber and canvas shoes are

mostly manufactured by large scale units
Canvas shoes are extensively used by like Bata, Carona etc. Now-a-days there
Armed Forces, Police, Home Guards are large number of small scale units
and NCC etc. and are also used by manufacturing canvas shoes in West
civilians for casual wear and sports. Bengal, Punjab, Kerala, Maharashtra,
These shoes are gaining popularity Rajasthan, Delhi, Haryana and Noida
among students and children. As the etc. The installed capacity of this industry
name indicates the shoes are made with is estimated at 30 million pairs per
upper of canvas and with rubber sole annum. However, 70% of its capacity is
by vulcanization process. The increasing utilized. Demand of these shoes is
popularity of canvas shoes for general increasing day-by-day due to its cheap
use is due to its cheap cost and comfort prices and usefulness which is estimated
in use. Students also use them for to further increase by 8 –10% per
physical training and other sports and annum. There is bright scope to set up
games. new small scale units in various parts of
the country.
MARKET POTENTIAL
B ASIS AND PRESUMPTIONS
Footwear is a part of the apparel
which protects the foot from vagaries 1. The Project Profile has been
of nature, in addition to meeting other prepared on the basis of single shift
necessities of the human beings like of 8-hrs. a day and 25-working
fashion, customs etc. which have a days in a month at 75% efficiency.
bearing on the requirement of footwear. 2. It is presumed that in the Ist year,
Canvas shoe is one of them. the capacity utilization will be 70%
8 CANVA S SHOES

followed by 85% in the next year arrangements, completion of all

and 100% in the subsequent year. formalities, market surveys and
3. The rates quoted in respect of tie-ups etc. Once all the above
salaries and wages for skilled arrangements are made and
workers and others are on the quality/standards achieved,
basis of minimum rates. 100% project capacity may be
achieved at the end of three years.
4. Interest rate for the fixed and
However, a detailed PERT/CPM/
working capital has been taken
chart with implementation period
@ 15% on an average whether
has been given in the report.
financed by the Bankers or
Financial Institutions.
IMPLEMENTATION SCHEDULE
5. The margin money required is
minimum, 30% of the total capital The implementation of the project
investment. includes various jobs/exercises such as
6. The rental value for the procurement of technical know how,
accommodation of office, transfer of technology, market surveys
workshop and other covered area and tie-ups, preparation of project
has been taken @20 per sq. mtr. report, selection of site, registration,
financing of project, procurement of
7. The rates quoted in respect of
machinery and raw materials etc.,
machinery, equipment and raw
recruitment of staff, erection/
materials are those prevailing at
commissioning of machines, trial
the time of preparation of the
production and commercial production
Project Profile and are likely to vary
etc. In order to efficiently and successfully
from place to place and supplier
implement the project in the shortest
to supplier. When a tailor made
period the slack period is curtailed to
project profile is prepared,
minimum possible and as far as possible
necessary changes are to be made.
simultaneous exercises are carried out.
8. The pay back period may be In view of above a CPM-PERT Chart has
5 years after the initial gestation been illustrated below. According to
period. which a minimum period of 227 days is
9. The gestation period in involved in finally starting the project on
implementation of the project commercial basis. By following this
may be to the tune of 6 to 9 process a time period of 82 days can
months which includes making all be saved.

4 7

1 2 5 6 8 10 11 12

3 9
 C ANVA S SHOES 9

Details of Activities
C.P.M.
Activity Days Activity Days Particulars of Activity
1-2 15 1-2 15 Procurement of Tech. know how/
transfer of technology.
3-4 15 3-4 15 Market survey, tie up and obtaining
quotations.
4-5 7 2-3 7 Selection of site.
5-6 70 4-5 7 Preparation of Project report
6-7 45 5-6 70 Registration and financing.
7-10 30 6-7 45 Placement of orders for machinery and
receipt of machines.
10-11 30 6-8 30 Recruitment of staff and training
11-12 15 6-9 30 Addition/Alteration in rental premises
8-10 15 Procurement of raw material/Bought out
components
7-10 30 Erection, Electrification and
Commissioning
10-11 30 Trial Production
11-12 15 Commercial Production
Total 227 days 309 days

TECHNICAL ASPECTS also prepared by mixing this

mixture in mixing well thoroughly
Process of Manufacture and then placing it in a chamber
The process is divided in four which has a tank fitted with
departments viz: electrically operated paddle.
Naptha is added to the mixture
1. Rubber Mixing Section.
where the mixture is churned out
2. Canvas upper Checking and for calendaring the cloth for
sewing section. making rubberized cloth for
3. Assembly Section tongue thick insole and for
applying this binder for lasting.
4. Finishing and packing section.
Thick cement is used for tongue
1. In rubber mixing section, rubber and then for sole. Neptha is added
mixture for sole is mixed, taking accordingly for outer sole, rubber
100 parts rubber, 50 parts filler, is spread and soles are checked.
4 to 5 parts sulphur, ½ part of
2. The various components of
organic accelerators and 3 to 4
canvas uppers are cut stitched,
parts pine oil. The fixing gum
eyelets are fixed on upper by
contains 15% more raw rubber
machine. The innersole is placed
and 3 to 5% resin. This cement is
10 CANVA S SHOES

on lasts and the upper pressed pressure is used for compacting

with hand roller and the bottom the rubber and to shorten the
is pasted. vulcanizing time. The trollies with
3. Cement is applied on bottom of the lasted shoes are pushed into
shoes and sole is placed on it and the vulcaniser. The vulcaniser is
pressed with roller. Noak is pasted closed and air pressure is applied.
on toe. For cement fixing a string There must be sufficient steam in
of proper length is taken in the coils to let up to 275 F. After
extender and is pasted all around the vulcanization is complete the
the edge of shoes. Pressure is goods are taken out. The time is
applied through metal roller. The 5 to 15 minutes depending upon
pasted shoes are placed on metal the accelerator used.
lears of metal framed trollies for 4. After cooling the shoes are
vulcanizing. The vulcaniser is a stripped from lasts inspected for
horizontal circular shaped shell defects, laced and packed.
boiler with steam coils. Air

Process Flow Chart

1. Rubber 2. Upper
3. Stitching 4. Assembly 5. Checking
Mixing Checking

7. Packing 6. Finishing

Quality Control and Standards should be installed for removing

IS 3935:1966 Canvas shoes with decongestion with proper
rubber sole. ventilation, removal of cokes
fumes etc.
Production Capacity
Energy Conservation
Quantity: 1,20,000 Pairs.
The following steps may be taken for
Value: Rs. 84,00,000 the conservation of energy.
Motive Power 1. Machinery and Equipment’s
parts, which are revolving and
1000 KW/monthly
reciprocating should be properly,
Water 25000 K.L./monthly lubricated from time to time with
suitable lubricant oil.
Pollution Control
2. Lay out of the unit should be in
1. There is no pollution in the such a way in that no back
manufacture of Canvas Shoes. tracking of material is there.
2. Minimum height of shed will be 3. All electric switches may be
maintained and exhaust fans turned off, when not required.
 C ANVA S SHOES 11

4. The entire transmission belt may and cost of ordinary lamps is

be tightened before starting the about 6 months operation. Unlike
work, wherever applicable. ordinary bulbs, these CFLEBs
5. Fluorescent tube with electronic provide choice of three colours
Chokes may be used for energy designated A, B and C, to suit
saving. Further recently developed individual requirements.
compact fluorescent tubes called Electronic Ballast, with
(CFT) of 10,15 watts may be used protection against high voltage
for energy saving and decoration. spikes, along with high quality CFLs
These self ballasted fluorescent make these composite CFLEBs (or
lamps are high efficiency self ballasted CFLs) Slim, lightweight,
replacements for ordinary bulbs. efficient and reliable units.
For same light output, CFLEBs 6. As far as possible Solar Energy
consume about one-fifth the and day light may be used
power consumed by ordinary keeping all the other lights off.
bulbs, thereby saving a lot of 7. As far as possible inductive load
energy. The savings get further of motor may be reduced and
multiplied when CLEBs are used high power factor may be used
in air conditioned areas, since the with the aid of capacitors of
saving of energy by using CLEBs appropriate sizes.
also corresponds to less heat
dissipation reducing load on air
conditioners. The life of CFLEBs
FINANCIAL ASPECTS
is about 8000/10000 hours i.e.
about 10 times that of ordinary A. Fixed Capital
bulb. (i) Land and Building (rented) (Rs.)
The typical payback period in On Rent @ Rs.20 Sq. meter 1000 sq. mtr. 12,000
terms of savings of energy bills Covered Area 600 Sq. meter

(ii) Machinery and equipments

Sl. Description HP/kW Ind/Imp. Qty. Value

No. (Rs.) (Rs.)
Production Unit
Name of machine with specification
1. Mixing mill 14”x36” with chilled cast rolls with Ind. 1 1,20,000
reducing gear 50 HP motor
2. Rubber spreading m/c. 12”× 30” with 25 HP motor Ind. 1 45,000
3. Vulcaniser 9’x5’ Ind. 1 40,000
4. Boiler 10 NHP (Baby) Ind. 1 20,000
5. Embossing m/c. Ind. 1 4,000
6. Chunner with 1 HP motor Ind. 1 20,000
7. Eyeleting m/c. Ind. 4 20,000
8. Clicking press 5 tonne power operated with 5 HP motor Ind. 2 30,000
12 CANVA S SHOES

Sl. Description HP/kW Ind/Imp. Qty. Value

No. (Rs.) (Rs.)
9. Sewing m/c. industrial power operated with ¼ HP motor Ind. 10 40,000
10. Aluminium and Iron Shoe lasts Ind. 100 70,000
11. Extruder for fixing Ind. 1 14,000
12. Moulds and dies for upper and bottom clicking Ind. 25,000
13. Trollies 25,000
14. Office equipments 50,000
15. Printing and marking m/c. power operated with 2 Hp motor 10,000
16. Storing tank for naptha etc. 6,000
17. Calendaring m/c. for cloth 8”x24” with 20 HP motor 80,000
18. Miscellaneous equipments 20,000
19. Installation and electrification @ 10% 63,900
Total 7,02,900
Appx. Requirement of power 125 HP 10,00,000
Total 17,02,900

B. Working Capital (per month) (ii) Raw Material (per month)

(i) Staff and Labour (per month) Sl. Description with Qty. Rate Value
No. Specification (Rs.) (Rs.)
Personnel
1. Canvas 1250 @35 43,750
Sl. Designation No. Salary Total metre per metre
No. (Rs.) Value
(Rs.) 2. Lining 1250 ” 15 “ 18,750
(a) Administrative and Supervisory 3. Rubber sole/ 1250 kgs 40 “ 50,000
insole
i) Manager cum Chemist 1 10000 10,000
4. Rubber Patti 500 “ 15 “ 7,500
ii) Accountant cum Cashier 1 4000 4,000
5. Rubber sheet 630 “ 20 “ 12,600
iii) Clerk cum Typist 1 3000 3,000
for toe
iv) Storekeeper 1 3000 3,000
6. Tape Cotton 10000 1 10,000
v) Salesman 1 4000 4,000 pairs
v) Watchman/peon/ 7. Insole calender “ 3 30,000
sweeper 3 2500 7,500 cloth
(b) Technical Skilled and Un-skilled 8. Counter for “ 3 30,000
Supervisor/ 1 5000 5,000 rubberized cloth

Foreman 1 7000 7,000 9. Laces “ 1 10,000

Skilled Worker/machine 10. Packing “ 3 30,000

operator 20 4000 80,000 11. Other grinderies “ 1 10,000
Semi Skilled Worker 14 3000 42,000 Total 2,52,600
Unskilled Worker 12 2000 24,000
(iii) Utilities (per month) (Rs.)
Mechanic cum electrician 1 3000 3,000
Electricity 25,000
Total 1,92,500
Fuel/water 10,000
Perquisites @ 15 % 28,875
Total 35,000
Total 2,21,375
 C ANVA S SHOES 13

(iv) Other Contingent Expenses (per month) Cost of Production (per annum) (Rs.)
1. Rent 12,000 (d) Depreciation on Office 10,000
Equipments @ 20%
2. Postage and Stationery 1,000
(e) Interest on Total Capital
3. Advertisement 4,000 Investment @ 15% 4,09,174
4. Repair and maintenance 1,000 Total 71,18,074
5. Telephone 500
(2) Turnover (per annum)
6. Transportation 1,000
Sl. Description Qty. Rate Value
7. Consumable 2,000 No. (Rs.) (Rs.)
8. Sales expenses 3,000 1 Canvas 1,20,000 70 per 84,00,000
Shoes pairs pair
9. Insurance 1,000
10. Misc. Expenses 500 (3) Net Profit (per annum) (before Income Tax)
Total 26,000 = Turn over – Cost of Production
= 84,00,000 – 71,18,074
(v) Total Recurring Expenditure (per month) (Rs.)
= Rs. 12,81,926
1) Salary and Wages 2,21,375

2) Raw Material 2,52,600 (4) Net Profit Ratio

3) Utilities 35,000 = Net profit × 100

Turnover
4) Other Contingent Expenses 26,000
= 12,81,926 × 100
Total 5,34,975 84,00,000

(vi) Working Capital for three months 16,04,925 = 15.26%

C. Total Capital Investment (5) Rate of Return

Fixed capital Rs. 17,22,900 = Net profit × 100

Total investment
Working capital for 3 months Rs. 16,04,925
= 12,81,926 × 100
Total Rs. 33,27,825 33,27,825
= 38%
MACHINERY UTILIZATION
(6) Break-even Point
It is expected that during first year
machine utilization will be 70% and Fixed Cost (per annum) (Rs.)
during second year 85% and 100% in (a) Total Depreciation (on m/c. and 80,400
subsequent years. equipment, dies, tools, furniture)
(b) Rent 1,,44,000
FINANCIAL ANALYSIS (c) Interest on borrowing 4,09,174
(Total Investment – 15%)
(1) Cost of Production (per annum) (Rs.) (d) Insurance 12,000
(a) Total Recurring Cost 64,19,700 (e) 40% of salary 10,62,600

(b) Depreciation on Machinery 51,400 (f) 40% of other contingent 62,400

and Equipments @ 10% expenses (Excluding rent
and insurance)
(c) Depreciation on Moulds @ 20% 19,000 Total 18,60,574
14 CANVA S SHOES

B.E.P. 3. Premier Engg. Works, Sirhind

= Fixed Cost × 100 (Punjab)
Fixed cost + profit
Raw Material Suppliers
= 18,60,5740 × 100
18,60,5740 +12,81,926 Rubber Chemicals and Colour
= 59.21% 1. M/s. Imperial Chemical Inds. Ltd.
Cresent House, Willet Road,
Addresses of Machinery Suppliers Ballard Estate, Mumbai
1. M/s. Sohal Engg. Works, 2. M/s. Chika Ltd.
L.B. Shastri Marg, Bhan Deep, Mehata Chambers,
Mumbai-400078 13, Mathew Road, Mumbai.
2. M/s. Indian Expeller Works P. 3. M/s. Mensants Chemical (India)
Ltd. Ltd.
A/4, Narodo Indl. Estate, Wake Fields House, Ballard Estate,
Ahmedabad-382330. Mumbai.