Funtoosh Project Report

PROJECT REPORT
ON PLUSH (SOFT) TOYS
Prepared by: John Nagarkar

Contact Details: Cell – 70394 52898 | Email - [email protected]
Sion, Mumbai, MH, India
1
INTRODUCTION
Toys are undeniably a part of every kid's life. History has shown that even ancient civilization had
indulged in Toys of various makes. Today we have dolls of various kinds, toy cars, block games
to soft toys.
And then there are Toys that appeal to both the kids and adults alike. And here we won't be talking
of only remote controlled cars or games but soft Toys too... a source of joy to many.
The demand for soft toys is forever increasing despite the onslaught of computer and mobile games.
New and innovative toys are always welcomed with open arms by its valued customers. Hence toy
manufacturers are always innovating new toys or improvising the old ones.
With Funtoosh Toys we will be going one step ahead and providing innovative soft toys for kids
and adults alike.
As a kid, one is often asked what he or she aspires to be when the person grows up and the off beat
answer most often is - a doctor or a policeman, an army man or maybe a pilot or firefighter.
Funtoosh Toys will create soft toys of these professional characters and a lot more that will be
educative as well as motivational to these kid's so that they achieve their dreams and impact their
future for the better.
For kids, toys also act as a companion and a friend that molds his vision and his growth - mentally,
socially and physically. And that is one major reason for Funtoosh Toys.
The second reason for Funtoosh Toys is to cater to adults as well as corporates. Most professional
adults love to decorate their workstations with soft toys and also enjoy gifting such soft toys to
colleagues and friends. Hence there is a demand for soft toys from them too.
As for corporates, there are food chains like McDonald's that regularly provide free toys with the
'Happy Meal' order. And then there those companies who provide gifts to its staff and it's end
consumers And Funtoosh Toys will cater to these companies as well. e.g. a bank providing a pen
holder made of soft toy material to it's consumers.
2
MARKET POTENTIAL
There is an ever growing demand for soft toys both in India and abroad. With India providing
quality products at a reasonable price, foreign countries find it feasible to procure products from
India. But within the country there is a dearth of good soft toy manufacturers. Most soft toys sold
on the streets are crudely made. Lack of new look toys also harm the soft toys business with
common toys such as Mickey Mouse, Teddy Bears etc. the only available soft toys in an
unorganized market.
The demand for innovative and new designed soft toys is forever growing with not much of a
supply. Thus soft toys of professional lookalikes, historical figures, extinct or rare birds and
animals etc. for kids, soft toy keychains, earrings, zodiac sign cushions, etc. for professionals and
gift items for corporates will certainly find a ready market in the country and there is a huge
POTENTIAL of its growth.
MANUFACTURING & QUALITY CONTROL
The manufacturing process involves:
1. Designing the patterns of each toy product.

2. Cutting fur fabrics as per the designs.
3. Stitching the various parts together.
4. Filling the stitched parts with polyester fibre or sponge.
5. Stitching the open end of the product.
6. QUALITY check.
7. Packaging.
While the manufacturing of soft toys is a simple process just like that of manufacturing pillows,
the pattern making of the product and adhering to a strict QUALITY standard will be a challenge.
Hence to supply QUALITY product to our consumers, there will be a thorough QUALITY check
of the final product. Moreover, a standard weight will be maintained for each specific product on
our list so that standard QUALITY, weight and size is maintained.
3
FINANCIAL ASPECTS
FIXED CAPITAL
Item Unit Amount (Rs.)

Workshop Rent 10,000
Current Account in Bank 10,000
MACHINERY & EQUIPMENT
Item Unit Rate Amount (Rs.)

Bank Current Account Charges 10,000
Sewing Machine 3 20,000 60,000
Racks 4 5,000 20,000
Scissors, Tapes, Needles, etc' 5,000
Packing Machine 1 8,000 8,000
Weighing Machine 1 2,000 2,000
Fabric Cutting Machine 1 20,000 20,000
Furniture 10,000
TOTAL 135,000
WORKING CAPITAL (PER MONTH)
SALARY & WAGES
Item Unit Rate Amount (Rs.)

Tailors 3 12,000 36,000
Workers 5 8,000 40,000
Manager 1 15,000 15,000
Salesmen 2 12,000 24,000
Designer 1 15,000 15,000
Pattern Cutter 1 12,000 24,000
TOTAL 154,000
4
RAW MATERIAL
ITEM AMOUNT (Rs.)

Fur Fabric - 1400 meters (Assorted) 154,000
Design Print Nylex -'160 meters 8,000
Poly Fiber Stuffing - 1000 kgs 140,000
Accessories - Eyes, Ribbons, Thread, etc. 10,000
Packaging 30,000
TOTAL 342,000
OTHER EXPENCES
ITEM AMOUNT (Rs.)

Online Advertising 15,000
Transportation 30,000
Miscellaneous Expense 15,000
TOTAL 60,000
TOTAL WORKING CAPITAL (Per Month)
ITEM AMOUNT (Rs.)

Rent 10,000
Utility (Electricity, Water, etc) 5,000
Salary and Wages 154,000
Raw Material 342,000
Other Expenses 60,000
TOTAL 571,000
PROJECT COST / CAPITAL INVESTMENT
FIXED CAPITAL (ONE TIME) 135,000

WORKING CAPITAL (3 MONTHS) 17,13,000
TOTAL 18,48,000
5
COST OF PRODUCTION PER ANNUM
Total recurring expenditure per annum
Rent 120,000
Raw materials 41,04,000
Wages and Salaries 18,48,000
Utilities and Other Expenses 780,000
Depreciation of machinery @15% 20,250
Interest on bank loan @18% 332640
TOTAL 72,04,890
TURNOVER
Soft Toys - 7,500 units Per Month

Cost Per Unit = Working Capital / Total Unit Per Month
= 571,000 - 7,500
= 76.13
Selling Price Per Unit = Rs.100
Turn Over Per Month = Rs.750,000
Turnover Per Annum = Rs.90,00,000
PROFITABILITY PER ANNUM (Before Tax)
= Annual Turnover - Cost of Production Per Annum

= Rs.90,00,000 – Rs. 72,04,890
= Rs.17,95,110
NET PROFIT RATIO
NET Profit X 100 = Rs. 17,95,110 X 100 = 19.94%

Turnover / Annum Rs. 90,00,000
RATE OF RETURN ON INVESTMENT
Annual Profit X 100 = Rs. 17,95,110 X 100 = 97.13%

Total Capital Investment Rs. 18,48,000
6
BREAK EVEN POINT/ANALYSIS:
Fixed Cost (Per Annum):
Rent 1,20,000
Depreciation @15% p.a. 20,250
Interest on Capital Investment @18% p.a. 3,32,640
40% of Wages of Staff & Labour 7.39,200
40% of other contingent expenses (Rent, 3,60,000
Advertising, Utility, etc.)
Total Fixed Cost 15,72,090
Break Even Point:
Fixed Cost X 100 = Rs.15,72,090 X 100 = 46.68%

Fixed Cost + Annual Profit Rs.15,72,090 + Rs. 17,95,110

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PROJECT REPORT

ON PLUSH (SOFT) TOYS

Prepared by: John Nagarkar

Sion, Mumbai, MH, India

MANUFACTURING & QUALITY CONTROL

The manufacturing process involves:

1. Designing the patterns of each toy product.

Item Unit Amount (Rs.)

MACHINERY & EQUIPMENT

Item Unit Rate Amount (Rs.)

WORKING CAPITAL (PER MONTH)

SALARY & WAGES

Item Unit Rate Amount (Rs.)

ITEM AMOUNT (Rs.)

ITEM AMOUNT (Rs.)

TOTAL WORKING CAPITAL (Per Month)

ITEM AMOUNT (Rs.)

PROJECT COST / CAPITAL INVESTMENT

FIXED CAPITAL (ONE TIME) 135,000

Total recurring expenditure per annum

Soft Toys - 7,500 units Per Month

PROFITABILITY PER ANNUM (Before Tax)

= Annual Turnover - Cost of Production Per Annum

NET PROFIT RATIO

NET Profit X 100 = Rs. 17,95,110 X 100 = 19.94%

RATE OF RETURN ON INVESTMENT

Annual Profit X 100 = Rs. 17,95,110 X 100 = 97.13%

Fixed Cost (Per Annum):

Break Even Point:

Fixed Cost X 100 = Rs.15,72,090 X 100 = 46.68%

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