1) Four engineering graduates plan to start a business called NOTT to produce normal use slippers for ladies and gents. They visited an existing chappal manufacturer for experience.
2) The promoters will set up a factory in Jind, Haryana on a 300 square foot plot with machinery including a power press and cutting machines.
3) Production will involve cutting materials, assembling components, and fitting soles and straps. The financial projections estimate annual sales of 1.2 million slipper pairs, costs of Rs. 3.73 crore, and net profits of Rs. 1.06 crore giving a 22% return on investment.
1) Four engineering graduates plan to start a business called NOTT to produce normal use slippers for ladies and gents. They visited an existing chappal manufacturer for experience.
2) The promoters will set up a factory in Jind, Haryana on a 300 square foot plot with machinery including a power press and cutting machines.
3) Production will involve cutting materials, assembling components, and fitting soles and straps. The financial projections estimate annual sales of 1.2 million slipper pairs, costs of Rs. 3.73 crore, and net profits of Rs. 1.06 crore giving a 22% return on investment.
1) Four engineering graduates plan to start a business called NOTT to produce normal use slippers for ladies and gents. They visited an existing chappal manufacturer for experience.
2) The promoters will set up a factory in Jind, Haryana on a 300 square foot plot with machinery including a power press and cutting machines.
3) Production will involve cutting materials, assembling components, and fitting soles and straps. The financial projections estimate annual sales of 1.2 million slipper pairs, costs of Rs. 3.73 crore, and net profits of Rs. 1.06 crore giving a 22% return on investment.
1) Four engineering graduates plan to start a business called NOTT to produce normal use slippers for ladies and gents. They visited an existing chappal manufacturer for experience.
2) The promoters will set up a factory in Jind, Haryana on a 300 square foot plot with machinery including a power press and cutting machines.
3) Production will involve cutting materials, assembling components, and fitting soles and straps. The financial projections estimate annual sales of 1.2 million slipper pairs, costs of Rs. 3.73 crore, and net profits of Rs. 1.06 crore giving a 22% return on investment.
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ENTREPRENEURSHIP PROJECT
REPORT { NOTT }
Submitted to :- Submitted By :-
Dr. Sunil Luthra (Astt. Prof.) Sushil Kumar(8716352)
Mechanical Dept. Lalit Rohilla (8716320) Avninder Singh(87175305) Vineet Kumar (87175323) Company Name –
NOTT (None Other Than This)
LOGO - 1. Objective of Report For the overview on all the aspects coming in the way of setting up a new industry of normal use slippers for ladies and gents.
2. Promoter’s Profile
1. Sushil kumar Qualification – b.tech mechanical engineering Project related experience – visited to Krishna chappals pvt. Ltd. Bahadurgarh Not having any past experience
2. Vineet kumar Qualification – b.tech mechanical engineering Project related experience – visited to krishna chappals pvt. Ltd. Bahadurgarh Not having any past experience 3. Lalit Rohilla Qualification – b.tech mechanical engineering Project related experience – visited to krishna chappals pvt. Ltd. Bahadurgarh Not having any past experience
4. Avninder singh Qualification – b.tech mechanical engineering Project related experience – visited to Krishna chappals pvt. Ltd. Bahadurgarh Not having any past experience
3. Location and Building
Plot no. 634, lajwana khurd, julana, jind-126101
300 sq. feet plot 4. Machinery
A 2 hp power press sleeper making machine, sole
cutting machine. 5. Production Process NOTT Chappal upper straps are cut by hand/machine out of goat and sheep skins of bark turned leather and the laces/thongs. The upper components are then skived by upper skiving machine provided to obtain uniformity in thickness and ensure quality. - The cut -out laces are supplied to outside parties for weaving. pleated ready laces are fitted to the uppers along with other preliminary operations such as instep strap fitting, stiching, decorative creasing, punching, gimping, pinking, etc. finally as the upper components such as studs., flowers and other fittings, link loops etc. are assembled and fitted and the prick marks done on uppers. Thus, the uppers, ready for fitting between the top and bottom soles, are fitted in the slots marked on the top sole; and the finishing done by hand/machine. Then, they are paired sized and packed.
QUALITY SPECIFICATION At present, no quality specification are available for NOTT Chappal . But for export orders, specifications are provided by the buyers only. Uppers and soles should be made of good quality Bark tanned leather in order to have uniform colour. Care should be taken to click the right components from the right portion of the leather. Before taking different components to the closing section, inspection is to be done to ensure quality. Good quality adhesive is to be used to ensure a proper bond between different components
6. Raw Materials 1. Rubber sheet for sole 2. Different colour straps according to sole
7. Market Potentials Footwear industry in India has been identified as thrust sector for export production endowed with rich cattle wealth, century old tradition of leather making skills and backed up by the most modern facilities. Indian Leather Footwear Goods ,has over the years acquired a significant place in the world market. Today some 120 Countries import Indian Leather Footwear and Leather goods. Besides internal demand of leather products, the country has traditionally Remained as an exporter of leather goods, leather footwear. Of latae, however, the internal-demand has shown a rising trend. The Leather Sector occupies a prominent position in export profile of India.. In fact, this is one important industry where there is immense potential for growth and value addition. India has been steadily transforming its traditional leather industry in the past two Decades into a modern industry. There is beter application of new technologies for producing elegantly designed wide range of. footwear maintaining high standards and better design elements. It is expected that some units can be motivated to start the production of NOTT Chappals to meet the export demand.
8. Personnel Personnel(Administrative and Supervisory) per month
1. Personnel 2,89,200 2. Raw Materials per 100000 pairs 27,00,000 3. Utilities 7,500 4. Other Contingent Expenses 18,000 Working Capital Per Month 30,14,700 Total Working Capital for 3 months : Rs. 90,29,400 (6,39,100x 3)
TOTAL CAPITAL INVESTMENT
Sl. No. Description Amount (Rs.) 1. Fixed Capital 3,11,292 2. Working Capital for 3 months 90,29400 Total: 93,40692
MACHINERY UTILISATION
The machinery utilisation will be the 60% during the first year of its production and will be reach 80% by the third year. FINANCIAL ANALYSIS
i) COST OF PRODUCTION
SI.N Description Amount (Rs.)
o. 1. Total Recurring Expenditure per year 3,61,76,400 2. Depreciation of Machinery & Equipment @ 10% 31,130 3. Depreciation on Office equipment @ 20% 6,000 4. Interest on total Investment @ 12% 11,20,883 5. Depreciation on tools & equipment @ 20% 2000 6. Depreciation of Dies @ 20% 1080 Total: 3,73,37,493
3) NET PROFIT RATIO Net Profit x 100 Turn over per annum = 10662507x 100 = 22.21% 48000000
RATE OF RETURN Net Profit x 100 = 10662507x l00 = 28% 37337493 Total capital investment
BREAK EVEN ANALYSIS
(i) Fixed Cost (Per Annum)
Sl.No Description Amount (Rs.)
. 1. Depreciation on machinery and 28,000 equipment 2. Rent for one year 36,000 3. Depreciation on Office Equipment 6,000 4. Depreciation on Tools & Dies @ 20% 3080 5. Interest on Capital Investment 1120883 6. 40% salary 1389600 7. 40% of other Contingent 86400 Expenses excluding Rent Total 26,69,963 BREAK EVEN POINT
BEP = FIXED COST X 100
FIXED COST = PROFIT
= 2669963 x 100 = 21%
2669963 + 10662507
10. Sources of Finances
Capable enough for the all investments and the fixed deposit but also try to get some financial help from banks or financial Institute.
11. Transport and Communication
Contract given to the S.K. Roadlines. At 70Rs./km.
