You are on page 1of 66

DETAILED FEASIBILITY ANALYSIS OF

SCHOOL BAGS & UNIFORMS


Part III

For

DEPARTMENT OF INDUSTRIES
MINISTRY OF ECONOMIC AFFAIRS
ROYAL GOVERNMENT OF BHUTAN

By
IDRG CONSULTANCY SERVICES
In Association with Sherpa Consultancy

February, 2009

CONTENTS
CHAPTER 1 PROJECT AT A GLANCE.3
CHAPTER 2 JUSTIFICATION OF THE PROJECT..6
CHAPTER 3 MARKET ANALYSIS..8
CHAPTER 4 RESOURCES20
CHAPTER 5 THE PLANT24
CHAPTER 6 PLANT LOCATION AND INFRASTRUCTURE33
CHAPTER 7 ENVIRONMENTAL ASPECT..35
CHAPTER 8 PROJECT IMPLEMENTATION..37
CHAPTER 9 COST PRESENTATION...39
CHAPTER 10 FINANCIAL ANALYSIS45
CHAPTER 11 ECONOMIC ANALYSIS..59

ANNEXURES.61
Annexure 1 List of machine suppliers
Annexure 2 List of raw material suppliers
Annexure 3 - List of lab testing equipment suppliers

CHAPTER 1 - PROJECT AT A GLANCE


1. Project concept Detailed feasibility analysis of school bags and uniforms. The
project envisages the manufacture of school bags and air bags in
various sizes and designs and school uniforms as well as
readymade garments.

2. Location -

Thimphu, Chhukka, Trashigang, Samdrup, Paro and Monggar


happen to be the main education centres in terms of enrollment till
higher secondary. As the students happen to be the target
customers, it would be quite logical to locate the unit near to these
education centres. Besides, as the unit would also be
manufacturing air bags and readymade garments, the vicinity to
trade centres would be an added advantage. Keeping in view,
various other parameters, these sites have been short listed in the
order of preference.
Location
Thimphu
Paro
Chhukka
Trashigang
Monggar
Samdrup

3. Markets -

Overall rating
42
40
40
35
35
35

The detailed study of school supplies scenario has revealed that


there is enough demand of school bags and school uniforms to
justify the setting up of an integrated manufacturing unit for these
two products. The current demand level for school bags is around
1,60,000 nos while the demand of uniforms is around 90,000 sets
of uniforms. In addition to this, there is a substantial market
demand for air bags and readymade garments which could be
easily manufactured in the proposed unit. Presently, there are no
manufacturing units for school bags and uniforms. The demand is
being met through imports. There being sufficient demand, both
in school supplies sector as well as in open market and there
being no indigenous production, the proposed unit is expected to
have bright prospects for capturing a substantial share of
domestic market. Besides, the unit could also explore the
possibilities for export to neighboring markets.

4. Annual Production
capacity
recommended School bags 1,00,000 pieces per annum
Sets of uniform 1,20,000 pieces per annum

Register to Remove Trial Watermark!!

5. Land and
building
requirement

6. Power
requirement

Plot area 1500 sq. mts


Built up area 300 sq. mts
Industrial shed 950 sq. mts

45 KWH

7. Main machinery
For bag section

Industrial sewing machine semi-automatic


Heavy duty craftsman sewing machine
Tape braiding machine

For Uniform section

Cloth cutting machine


Single needle sewing machine universal
Over lock safety stitching machine
Button holing machine
Button stitching machine

8. Man power
requirement

Managerial and office staff


Production supervisor
Cutting master
Tailoring staff for bag section
Tailoring staff for uniform section
Unskilled workers with helpers

9. Total project
cost

Rs. 163.82 lacs

10. Project
implementation
period

10 months

11. Means of
finance

Debt Equity -

7
2
2
35
90
70

Rs. 114.67 lacs (70%)


Rs. 49.14 lacs (30%)

Register eDocPrinter PDF Pro Online Now!!

Register to Remove Trial Watermark!!

12. Break up of
cost of project

Machinery
Construction cost
Misc. fixed assets
Pre-operative exp.
Training expenses
Interest
Working capital
Total

Rs. 36.11 lacs


Rs. 51.25 lacs
Rs. 3.00 lacs
Rs. 5.00 lacs
Rs. 0.36 lacs
Rs. 11.49 lacs
Rs. 56.61 lacs
Rs. 163.82 lacs

13. Annual sales


turnover

Rs. 7.2 crores

14. Financial
analysis

IRR 36% on investment


IRR 56% on equity
NPV Rs. 206.75 lacs (discount rate of 12%)
Pay back period 2 years 6 months
Project break-even 69%

Register eDocPrinter PDF Pro Online Now!!

Register to Remove Trial Watermark!!

CHAPTER 2 JUSTIFICATION OF THE PROJECT

2.1 Project Concept


The project envisage detailed feasibility analysis for setting up a manufacturing
unit in Bhutan for school bags and school uniforms mainly to cater the domestic demand
in school supplies sector.

2.2 Project Justification


As mentioned in part 1 of the report, with the rapid increase in urban population
and growing level of per-capita income, the education sector is undergoing a perceptible
change. More and more schools with modern system of education both in the Govt.
sector as well as in private sector are being set up. Consequently there has been a
change in the demand pattern both in terms of quality and quantity of the various inputs
required for efficiently running the school system.
School bags & school uniform happen to be the most important items required by
the students mainly in urban and semi urban areas. Along with exercise books, school
bags and uniform constitute the major segment of school supplies which are mostly
purchased by the students and their parents from the market.
One or the other type of bag is required by each and every student for carrying
the books, notebooks and other articles required for study in the school. In view of the
growing syllabus at every stage of schooling and consequent increase in number of
books and exercise note books and other items which a student is required to carry
every day to school, bags with specific designs are made in durable materials to with
stand the requisite load and handling conditions. At present, there are no manufacturing
facilities for the production of school bags in Bhutan and the requirement is being met
through imports from India, Thailand and other countries.
Similarly, the various schools prescribe the design, fabric and shade of the
uniform for their students as a part of school discipline. The system of specifying uniform
is more prevalent in urban schools. Invariably, the schools prescribe the type of fabric
and the shade / colour of the uniform and many a times, the uniform of the student is
identifiable with the school. In Bhutan, there are no industrial units manufacturing school
uniforms and these are either being got fabricated from tailoring shops or procured from
adjacent markets in India.
This project has been drawn for the manufacture of schools bags and uniforms.
The proposed unit will have two separate departments, the first for the production of
school bags and the second for the production of the uniforms. As there are no industrial
units manufacturing these items, there exists a good potential for establishment of
setting up of such manufacturing facilities in Bhutan. The proposed industrial unit would

Register eDocPrinter PDF Pro Online Now!!

Register to Remove Trial Watermark!!

be equipped with the machines and equipment for the production of bags and uniforms
and besides meeting the requirement of school bags and uniforms, this unit can also
manufacture and supply air bags and other readymade garments for meeting the
general market requirement. To begin with Thimphu or Paro would be ideal location for
this unit as they constitute the major markets both for school supplies was well as for
general market supplies.
As would be seen from the part 1 of the report, the current demand level for
school bags and school uniforms is sufficient to justify the setting up of a manufacturing
unit in Bhutan. Besides, there exists substantial market demand for air bags and
readymade garments specially children garments which could also be manufactured in
the proposed unit. The project concept is to setup an integrated unit having two
production sections, the first one for the manufacture of bags and the second for the
manufacture of garments. The demand for both these items is likely to grow at a very
fast pace keeping in view the future economic growth in Bhutan leading to higher
purchase power and the consequent preference for readymade garments and bags, it is
considered that there is sufficient justification for setting up such an unit in Bhutan.
The details of the products, products range, quality parameters, manufacturing
technologies, machines and equipment and financial implications have been dealt with in
subsequent chapters of this report.

Register eDocPrinter PDF Pro Online Now!!

Register to Remove Trial Watermark!!

CHAPTER 3 MARKET ANALYSIS


3.1 Demand and supply scenario
The demand level for various types of uniforms and school bags have earlier
been estimated as has 90,000 sets of uniform and around 1,60,000 set of school bags
per annum. Besides, uniforms and school bags, with the machines and equipment
proposed to be installed in the unit, it would be possible to manufacture ready made
garments and air travel bags also.
Some or the other type of uniform is required by each and every school going
children. However, the schools in urban areas are more specific in the matter of
uniforms. Presently, these uniforms are either being got stitched from tailoring shops or
procured from adjoining markets. There exists a good scope for setting up an organized
unit for the manufacture of uniforms suiting to the requirement of various schools. It
would be desirable for the manufacturing unit to develop an organic linkage with the
schools with a view to manufacture and supply uniforms as per their specifications and
designs. The project has been designed to produce various types of garments. In
addition to, school uniforms, the unit could also manufacture the uniforms and dresses
for police personnel, defence personnel, hospital staff viz doctors and nurses. Besides,
there is a huge potential for production of ready made garments specially children
garments to cater to the open market requirements. The part capacity of the uniform
manufacturing department of the unit could well be utilized for the production of children
garments. As the unit is proposed to be setup in the vicinity of capital city, the trade
distribution channels in Thimphu could well be utilized for marketing of the ready made
garments all over Bhutan.
Similarly, each and every student needs a school bag for carrying the books,
exercise books, etc. to the school. The maximum life of a school bag is 1 year and
invariably while graduating to next standard, the children buy a new school bag and a
demand becomes a recurring demand. Presently, the entire demand of school bags is
being met through imports from India and other countries. Similarly, the demand of air
travel bags is also being met through imports. A wide variety of air travel bags in varying
price range are available in the market and the proposed unit need to adopt the designs
and patterns as per products being currently sold in the market.

3.2 Competitive Advantages


In view of the above, the unit is expected to have bright prospects for capturing a
substantial share of market both in the school bags, air travel bags, school uniforms and
ready made garments. The competitive advantage factors of the indigenously produced
uniforms and garments which would provide them an edge over the competitors mostly
imported products can be listed as under: Facility of introducing the product with locally acceptable fabrics, designs
and patterns resulting in higher acceptability in the market.

Register eDocPrinter PDF Pro Online Now!!

Register to Remove Trial Watermark!!

Possibilities of producing bags with school logos, popular local slogans,


ethnic designs resulting in better marketability.
Better inventory control management, the production can be planned as
per demand.
Direct purchase of raw materials from wholesale trade channels at the
most competitive rates leading to lower input cost.
Lower input cost in terms of power, transport and labour.
Possibilities of introducing new products and new designs as per local
requirement.
Quality control can be enforced starting from the raw material stage to
finished production and possibilities of adopting ISO 9000.
Value addition on raw materials leading to savings in foreign exchange.
Possibilities of introducing quality garments based on local handloom
fabric specially for high end market like Khadi Garments in India.
In view of all these competitive advantage factors, it is envisaged that the unit
would be able to produce bags, uniforms and garments of acceptable quality at a
relatively lower cost and thus, shall have an edge over the other competitors.

3.3 Marketing Strategy


Presently, most of the school bags and air travel bags are being imported in
Bhutan. As regards, school uniforms and readymade garments, there are no organized
production units and the requirement is being met either through imports or through local
tailoring shops. There are no government purchases and all these products are required
to be sold in open market. Accordingly, the following marketing strategies could be
adopted by the unit.
Marketing through trade channels viz by appointing whole-sellers in major cities
or through direct sales to stationery shops.
Dedicated production with logo and monogram etc of the schools and institutions
specially for school bags and school uniforms and sales through these schools
and institutions.
Contract with concerned hospital authorities for producing doctors apparels,
dress for nursing staff and gowns for patients.
Display of products specially readymade garments at main shopping centres and
local fairs.
The proposed unit needs to mainly focus on school supply sector and market
their products through school students in major educational centres. The unit needs to
identify departmental stores and shops which could function as the retail outlets for
selling uniforms and bags manufactured by the unit. The unit also needs to develop an
organic linkage with main schools and produce the uniforms as per their specifications
and designs in the identified shades of fabric. The possibilities of manufacturing the
bags in classical Bhutanese designs need to be explored and this could help higher level
of acceptance of the bags manufactured by the unit. In case of air bags and readymade
garments, these need to be fabricated as per market requirement based on feedback

Register eDocPrinter PDF Pro Online Now!!

Register to Remove Trial Watermark!!

available from the leading readymade garment stores and shops selling luggage goods.
Besides, the possibilities of exports to adjoining areas of India viz. north-eastern region
could also be explored. The possibilities of exporting the product to other neighboring
markets also need to be looked into. Besides, the possibilities of exports especially in
case of air travel bags to adjoining market could also be explored for achieving better
economics of production and improving profitability.

3.4 Product range and target markets


The project envisages setting of a unit for the production of two distinct products
viz school bags and school uniforms. The proposed unit shall comprise of following two
manufacturing departments:

3.4.1 Bag manufacturing Departments: This department would be equipped with the
facilities for the production of bags mainly in nylon fabric or canvas fabric. The main
product would be the school bags in various sizes and designs. The manufacturing
facilities of this section are also proposed to be utilized for the production of air bags for
supply to the general market. Thus following would be the two main products:
-

School bags in various sizes and designs.

Air bags in various sizes and designs.

10

Register eDocPrinter PDF Pro Online Now!!

Register to Remove Trial Watermark!!

3.4.2 Garments manufacturing department: This department shall have


manufacturing facilities for the production of ready made garments. The main focus shall
be on the production of school uniforms as per fabric type and design prescribed by the
schools. The remaining capacity of this department is proposed to be utilized for the
production of ready made garment especially children garments for supply to general
market. This department shall be manufacturing the following products:
-

School Uniforms as per school specifications.

Ready made garments mainly for children in various colours and designs as per
market demand.

11

Register eDocPrinter PDF Pro Online Now!!

Register to Remove Trial Watermark!!

The project is being recommended mainly to create manufacturing facilities to


meet the demand of school bags and uniforms in school supplies sector. Major centres
of education viz Thimphu, Chukka, Paro, Trashigang, Samatse and Samdrup would be
the major target markets wherein the number of students is sufficiently higher. Besides,
the major cities would be the target markets for air bags and readymade garments.

3.5 Design and Quality Standards


3.5.1 School Bags
The school bags are used by school children of various age groups and the
requirement of filling space for books in a bag varies according to the standard in which
a child is studying. Accordingly, the school bags are manufactured in various sizes and
designs. Bureau of Indian Standard (BIS) has specified the following sizes and types of
school bags:
-

Small size school bag with side strap.


Small size school bag with back strap
Medium size school bag with side strap
Medium size school bag with back strap
Large size school bag with side strap and
Large size school bag with back strap

12

Register eDocPrinter PDF Pro Online Now!!

Register to Remove Trial Watermark!!

All school bags are to be provided with a patch pocket in front, piping all round
the edges and buckles with straps for closure. The school bags may be provided with
side strap or back strap or both if the both strap are required by the market. A handle
may also be provided if the same is required by the trade channels and market.
According to BIS specifications, the shape and dimensions of three sizes of school bags
viz. small, medium and large would be as shown below:

Size

Small
Medium
Large

330
360
380

230
260
280

90
140
110
140
140
140
All dimensions in millimeters

130
130
180

65
65
65

The length of the side strap of the bag is made adjustable by means of a buckle
as shown in figure above. The length shall be adjustable between 260 mm to 960 mm.
The lengths of the back strap for small, medium and large size of bags are specified as
430 mm, 455 mm and 470 mm respectively.
In addition to above shapes and dimensions, the school bags could be
manufactured in other shapes and dimensions also as per market demand and
customers requirement. BIS has also specified the following design, workmanship and
finishing parameters for school bags:
The school bag shall be made from three pieces of material i.e., front, back with
top flap and gusset. The specification and details of fabric are given in the next
chapter.
The front portion shall be provided with a patch pocket for small articles for use in
school as shown in above. The bag may also be provided with tow patch pockets
in the front portion. The shape of the pocket or pockets should be such as to
provide sufficient space for keeping lunch-box, pencil box, instrument box etc.
This may be done with or without gusset.

13

Register eDocPrinter PDF Pro Online Now!!

Register to Remove Trial Watermark!!

The bag shall be provided with minimum 10 mm wide piping at the pocket, top
edges and the sides as shown in fig. above. The piping shall be of the materials
specified in the next chapter.
The school bag shall be assembled lock stitch or chain stitch regulated to give
6 to 8 stitches per 25 mm. All ends shall be securely fastened off and loose
threads properly trimmed.
Two buckles with straps shall be provided in the bag for closure as shown in Fig.
above. A handle may also be provided if required by the purchaser or the market.
The bag shall be neatly finished with straight and parallel rows of stitching, where
required.
The ends of buckle loops, side, back and buckle straps shall be properly tacked
with the rows of stitches as shown in Fig. above.
Bureau of Indian Standard (BIS) has also specified quality parameters and tests to
be carried out on to finished school bags so as to ensure the proper performance of the
bags. These tests includes drop test and handle snatch test.
Drop Test: The school bag shall be fully loaded with books or any other suitable
material, weighing 6 kg in case of small, 8 kg in case of medium and 10 kg in case of
large size school bags. After filling the specified weight, the bags shall be close,
buckles fastened and hung on pegs at the wall, with the help of either the side strap or
the back straps. The distance between the floor and the peg shall be 1.5 meter in case
of side strap and 1.0 meter in case of back strap. The bags shall then be suddenly
dropped and this operation shall be repeated 10 times. During or after the test the
stitches shall not open, the straps and buckles shall not give way or come off the
stitched tacks.
Handle Snatch Test: the school bag shall be securely fixed in an inverted position as a
rigid support, leaving the strap free for applying the load. The strap shall be suitably
harnessed to distribute the load applied over the entire middle portion. A load of 50 N (5
kg) shall be applied suddenly to the strap for a period of 30 seconds. This operation shall
be repeated 10 times. The weight may be applied either by means of spring balance or
weights, suitably placed on a stirrup. During or after the test, the strap shall not have
snapped, loosened or come off the stitching.
Each bag is required to be legibly marked with the following:
-

Manufacturers name or registered trade mark


Size

14

Register eDocPrinter PDF Pro Online Now!!

Register to Remove Trial Watermark!!

3.5.2 Air travel bags


Air travel bags are extensively used while traveling for carrying the clothes and
various other items of requirement. These are needed by every household and happen
to be mass consumption product. Air travel bags widely differ in design, shape, colour
and size from one manufacturer to another. Even for a particular shape and size, the
quality of the material viz. fabric and fittings and the workmanship may be different
resulting in large variation in selling prices.

Air travel bags are manufactured in various materials viz. leather, leather cloth,
cotton canvas, coated nylon fabrics and in various designs and shape. However,
keeping in view the utility criterion and performance requirements for air travel bags
following typical design with essential components has been recommend by BIS.

Handle

Fastener
Lock

Pocket

Piping

Main Components

15

Register eDocPrinter PDF Pro Online Now!!

Register to Remove Trial Watermark!!

BIS has also prescribed standard dimension for above mentioned design of the
air travel bag which are given below:

Dimension in millimeter

However, as mentioned above the air travel bags are manufactured and
marketed in a large number of shapes and designs with varying storage space, number
of inner and outer pockets including those exclusive designs in which storage space
could increased or reduced with the help of slide fastener mechanism. Some of quality
and workmanship parameters and other specifications requirement as prescribed by BIS
for air travel bags are as given below. Irrespective of shape and design of the air travel
bags, adherence to these quality specifications shall ensure the proper performance and
durability of the bag while in use by the customers.
The handles with its fittings and attachments shall be strong and shall not yield
under normal usage. The handles shall be reinforced with vulcanized fibre strip
inside and riveted. The handles shall be centrally located on longer sides. The
clearance between the body of the bag and the inner face of the handles shall be
adequate to facilitate easy gripping when lifted.
Boss (feet) shall be provided to avoid ground contact.
Certain other provisions such as inside compartments, front pocket and
alternative arrangements may also be provided as agreed to between the
purchaser and the supplier.
The locking device shall be fixed to the end of the tab of fastener and one of the
lateral sides of the bag. The locking device shall be easily accessible to operate.
The stitches shall be strong and uniform. The stitches shall be lock stitch with 28
to 32 numbers per decimeter and of even tension. The stitch ends shall be
secured either by knotting the thread or back stitching or by an additional row of
stitch.
All loose ends of the threads shall be trimmed off. The seams shall be uniform,
continuous and straight.

16

Register eDocPrinter PDF Pro Online Now!!

Register to Remove Trial Watermark!!

The fasteners used for the outside closure of the bag shall be of heavy quality
and for inside compartments, pockets, etc, shall be of medium or light quality.
The air travel bags shall be provided with piping all round the outer edges. The
core shall be spiral spring and covered with leather cloth or plastic piping.
The lock flap shall be single piece sewn to the lateral sides of the bag. The flap
shall have sufficient size to accommodate components of the lock.
The steel components shall be plated chromium over nickel conforming to
standard specifications.
The air travel bags shall be soundly constructed and finished smooth without any
sharp edges or constructional defects. There shall not be any loose thread or
uneven seams.
In respect of appearance, general workmanship and finish the air travel bag shall
conform to the sample previously approved by the purchaser.
BIS has also prescribed the following performance test for air travel bags:
Handle Snatch Test: The air travel bag shall be securely fixed in an inverted position on
a rigid support, leading the handle free for applying the load. The handle shall be
suitably harnessed to distribute the load applied over the entire handle. A load of 100 N
(10 kgf) shall be applied suddenly to the handle and repeated 10 times.
The weight may be applied either by means of spring balance or weights, suitably placed
on a stirrup. During or after the test, the handle shall not have snapped or shall not have
loosened in its fittings.
Drop Test: The air travel bag shall be filled with cloths or other suitable materials to the
total contents to weight 50 + 2.5 N (5 + 0.25 kgf). The bag shall be locked after filling the
specified weight. The air bag shall be dropped from a height of 1 m on a wooden floor or
board for 10 times. The bag shall not be damaged or get splits. During or after the test
the contents shall not show out.

3.6 School Uniform


School uniform or ready made garments comprises of a wide variety of garments
in different fabrics, colours, design and shapes. As the uniforms are required to be made
in the specified shade and texture of a given fabric as per given design in the various
sizes, required for various age groups of children, no general quality specification could
be prescribed. However as the fabrication of uniforms involves a number of stages of
manufacturing, BIS has prescribed a list of factors and precautions which need to be

17

Register eDocPrinter PDF Pro Online Now!!

Register to Remove Trial Watermark!!

adhered to at the various stages of garment manufacturing from design to packaging to


ensure the final quality of the garment uniform.
These factors and precautions being specific to various stages of processes
have been listed later while describing the various stages involved in the process of
manufacture of the uniform.
Bureau of Indian Standards (BIS) have specified various factors and guidelines
to ensure the proper quality of uniform and ready made garments. The main guidelines
are as under:
The design of the garments and the materials to be used in the manufacture of
garments should ensure the fitness for purpose and relate to the method of
production. Materials and trimmings selected for production of garments should
be compatible with each other.
The materials should be inspection for defects and variations, checked for
conformity to the related specification and properly labeled.
While lay planning, following factors should be taken care of;
Correct positioning of pattern pieces on fabric grain;
Inclusion of all required pattern pieces;
Matching of checks and stripes;
Correct positioning of pattern pieces for pile fabrics or one side fabrics;
No overlapping of pattern pieces;
Availability of sufficient space between parts for accurate cutting;
Correct identification of all pieces by size, style etc;
Accurate marking;
Inclusion and correct positioning of all notches and drill marks; and
Fully marking of parts within defined lay width.
While cutting, the knife profile and cutting speeds should be checked.
Cleanliness and safety aspects should be ensured during cutting.
In production department the equipment, operations and materials which require
adequate attention for proper make-up and pressing of garments are given
below:
Sewing machines, cleanliness and settings;
Needles size, type and condition;
Stitch density and thread tension;
Sewing thread material, count, colour and shade;
The following aspects of garments should be checked at the final stage.

Correct dimensions;
Seam pucker, seam allowance and sewing faults;
Garment symmetry;
Pressing/ fusing defects;
Cleanliness;

18

Register eDocPrinter PDF Pro Online Now!!

Register to Remove Trial Watermark!!

Loose threads;
Correct matching of fabric and trimmings;
Shade variation;
Correct fitting and alignment of closures; and;
Correct placing of labels.

19

Register eDocPrinter PDF Pro Online Now!!

Register to Remove Trial Watermark!!

CHAPTER 4 - RESOURCES
4.1 Main Resources
The main resources required for the project include the following.
-

Land and building


Plant and machinery
Different type of fabrics for bags and uniforms
Consumables viz sewing thread, fasteners, buttons, vellcrows, tapes,
buckles, hooks, etc.
Power
Skilled and non-skilled workers

It has been envisaged in the project the land for the project would be available on
lease basis from Government of Bhutan and the building as per requirement has to be
constructed for the two production department. The plant and machinery has to be
imported as per details given in the project. There is a requirement of cutting masters
and tailoring staff both for bag section as well as uniform section of the project. In the
initial phase, the some experts viz cutting masters and tailoring staff has to be brought
from India who in turn would be able to train the local staff over a period of time. The
production supervisors also initially have to be employed from outside so as to maintain
the quality standard of the product. The experts from the machine suppliers could also
help in training the local staff on operations of machines, however, development of
adequate skills for stitching quality garments is rather a time consuming process and the
tailoring staff employed from outside would be a necessity in the initial phase.

4.2 Details of raw materials and consumables


A). School bags & Air Travel bags:
For the production of school bags and air travel bags following main raw
materials would be required.
Nylon or canvas fabric - coated nylon fabric is the main raw material used for the
construction of the body of the bag and pockets. The fabric could be either coated with
PVC or polyurethane (PU). These are available in various deniers viz. 400 x 400, 600 x
400, 600 X 600, 1200 x 1200 and 1800 X 1800 in form of 50 meter rolls with width
varying from 1.35 meter to 1.5 meters. Starch coated canvas fabric of 210 x 210 count is
also used for the production of low price range school bags. The canvas fabric is
available in the form of 35-45 meter rolls with around 90 cm width.
Nylon Viscose tape - Tapes are used for side straps, back straps and piping. Nylon
tapes are available in continuous rolls long with 2.5 cm to 4 cm width. The tape with 2.5

20

Register eDocPrinter PDF Pro Online Now!!

Register to Remove Trial Watermark!!

cm width is used for piping and normally 4 cm width tape is used for construction of
straps.
Sewing thread - Three ply or four ply nylon thread is used. The cotton sewing thread
variety no. 28 or polyester sewing thread variety no. 9 is also used.
Buckles: Suitable metal buckles or plastic buckles are used.
Vellcrow- Vellcrow strips are stitched on the body of bags as per design. Vellcrow is
available in 2.5 cm or more width in the form of rolls measuring 20 meters.
Slide Fasteners Metal or nylon slide fasteners of good quality are fixed in the bag as
per design.
Locks: Steal or brass locks as per design are fixed in the bag.
Foundation Material: Especially in case of air bags, plywood or card board or fibre
board sheet is placed inside the bottom of the bag to provide strength to the base of the
bag and avoid the chances of collapsing of the bottom part.
Besides rivets and washers, boss (feet) to be placed at bottom, metal or plastic labels,
screen and screen printing inks are also required as raw materials for the production of
the bags.

B). School uniforms and readymade garments


Fabric, trims and embellishments, sewing thread, washing chemicals, packing
materials would be the raw materials for the manufacture of school uniforms and
readymade garments. The fabric happens to the major raw material in the production of
uniforms & garments and the quality of garments in terms of its appearance and
durability would much depend on the type of fabric used. The price range of the uniform
and the garment would also depend on the type and quality of fabric used in the
production process. Various type of fabrics are used for the garments, however, in the
project, cotton fabric and blended fabric have been taken into consideration for the
purpose of cost calculation.
As stated above, a large variety of fabric in cotton, synthetic and woolen
materials in various shades, woven and printed designs are available in the market and
these are invariably sold by their trade names, their intended use or finishes imparted to
the fabric. Even in one type of fabric, there could be a number of varieties widely
differing in prices. The selection of fabric would depend on the type of garments
proposed to be manufactured and the estimated price range i.e. cost of production since
fabric constitute the major part of the cost in the total cost of garment. These types of
fabric also available in a wide range of prices. In the project, medium quality of these
two fabrics has been taken into consideration with a view to produce uniforms at an
affordable price to the students. Various other raw materials viz sewing thread, buttons,
slide fasteners etc. are also required. The main raw materials are as under:

21

Register eDocPrinter PDF Pro Online Now!!

Register to Remove Trial Watermark!!

Fabrics The fabric could be either cotton, woolen, synthetic, cotton synthetic blends,
woolen synthetic blends. The fabrics could be either be mill made or hand loom fabric.
Normally for uniforms cotton, polyester cotton and polyester wool blends are
recommended.
Sewing thread - Both cotton and synthetic types of sewing threads are used for
stitching of the uniform.
Slide fasteners: Both metallic any nylon slide fasteners are used in uniforms. Nylon
slide fasteners, now a days are more preferred.
Buckles and hooks Mostly metal buckles and hooks are used.
Buttons- Plastic button of requisite size are used. Besides depending on the type of
garment and design, embroidery thread, elastic tapes, eyelets and hooks, metal and
decorative buttons etc. may also be required.
Majority of the raw materials and consumables are required to be imported either from
India or any other neighboring country.

4.3 Comparative analysis of sources and prices of critical inputs


& consumables
As mentioned earlier, various raw materials required for manufacture of bags and
uniforms include the following: A). School bags / Air travel bags
Nylon fabric
Nylon tapes
Sewing thread
Buckles
Vellcrows
Slide fasteners
Locks
Foundation materials
B). School uniforms / readymade garments
Fabric
Sewing thread
Slide fasteners
Buckles hooks and buttons

22

Register eDocPrinter PDF Pro Online Now!!

Register to Remove Trial Watermark!!

The main raw material for both the products is fabric which can be either
imported or sourced from wholesale fabric dealers. Depending on the acceptability in
the market, indigenously produced handloom fabric could also be used. The fittings and
accessories can be sourced from specialized shops dealing in these products in the
eastern region of India.
4.5 Recommended sources
A list of raw material supplier has been given in the Annexure II. In case of large
requirements of fabric for garments, this could be procured directly from the mills or
through their wholesale dealers.
4.6 Annual requirement of raw materials
The annual requirement of various raw materials along with their prices have
been given in the chapter 9 relating to cost presentation.

23

Register eDocPrinter PDF Pro Online Now!!

Register to Remove Trial Watermark!!

CHAPTER 5 THE PLANT


5.1 Selection of technology
Manufacture of school bags and uniforms essentially involves cutting and
stitching of fabric industry. The main manufacturing operations include designing,
pattern making, cutting, stitching and fixing of accessories. Depending on the type and
size of the market, these operations are carried out either manually or with the use of
semi-automatic machines or by using completely automatic machines. Sometimes,
partly manual and partly semi-automatic machines operations are also employed.

5.1.1 Process Technologies used


For the production of exercise books, normally following type of process
technology are used
Manual process wherein the fabric is cut manually and hand operated stitching
machine are used.
Semi-automatic process using manual cutting and motorized stitching machines.
Fabrication of garments is outsourced through vendors and the main unit carries
out only finishing operations.
All manufacturing operations are carried out in the unit.
5.1.2 Factors influencing the choice of technology
A number of factors need to be taken into considerations while deciding the
choice in favour of a process technology. These factors mainly include

Factor inputs.
Market findings viz size of market and recurrence of repeat demand.
Purchasing power of consumers and prevailing price spectrum.
Future projections of market demand.
Availability of skilled manpower and support facilities.
Availability of infrastructure and transport facilities.
Environmental considerations.

5.1.3 Technology recommended


Manufacture of school bags and uniforms basically involves cutting and stitching
of fabrics as per given size and designs. It is desirable to produce a sizable quantity of
bags or garments to achieve the economy of production. The fabric and consumables
are also purchased in bulk at competitive prices in variably directly manufacturing mills
or wholesale traders to keep down the cost of inputs. The manufacturing process being
essentially a fabrication process, the level of skills of the cutting and tailoring staff
becomes a critical factor for production of quality goods. The unit has to keep a constant

24

Register eDocPrinter PDF Pro Online Now!!

Register to Remove Trial Watermark!!

touch with the market trends in order to produce the quality and designs as per market
requirement. The quality and performance of the tailoring machines also plays an
important part in ensuring the quality of goods and accordingly, the machines selected in
the project are of standard make with proven record of performance.
There are two types of operations particularly in the case of garment
manufacturing units in India. In the first type of operation, the manufacturing unit
undertakes all the operations viz designing, cutting, stitching and finishing by themselves
and outsource only a limited operation like embroidery, etc. In the second type of
operation, the unit undertakes designing and finishing operations only in their premises
and the cutting, stitching and fixing of buttons, etc is outsource from vendors. Keeping in
view that the facility of vendor may not be available in Bhutan in the initial phase, it has
been envisaged that entire operation of garments and bag manufacturing is undertaken
by the unit in their premises.

5.2 Installed Capacity of Production


The installed capacity of the unit based on single shift operation, and 300
working days in a year would be as under: School bags
Sets of uniform

1,00,000 pieces per annum


1,20,000 pieces per annum

Installed Capacity of Production

School bags
School uniforms

5.3 Details and specification of main machine and equipment


A). For bag section
1. Industrial sewing machine, single needle, Semi automatic
2. Heavy duty craftsmen sewing machine
3. Tape braiding machine

25

Register eDocPrinter PDF Pro Online Now!!

Register to Remove Trial Watermark!!

4. Cutting tables
5. Cutting tools viz knife cutter, Aluminium sheets, angle scales, Cutting strips, pattern
sheets, etc.
6. Hand tools for button/revert fixing
7. Screen printing & label printing machine

B). For uniform section


1. Power driven, cloth cutting machine
2. Single needle sewing machine premium quality, with foot and motor
3. Single needle sewing machine universal with foot & motor
4. Double needle over lock safety stitching machine with edge trimming
5. Button holing machine
6. Button stitching machine
7. Hot fusing press
8. Garment washing machine
9. Hydro extractor
10. Tumbler drier
11. Steam press, industrial
12. Cutting and press tables

26

Register eDocPrinter PDF Pro Online Now!!

Register to Remove Trial Watermark!!

5.4 Process of manufacture


5.4.1 School bags and air travel bags
The manufacturing process for the production of school bags and air travel bags
would involve the following stages.
Design and pattern Making: The design features and size are either supplied by the
purchaser or these are finalized by the manufacturing unit keeping in view the intended
use, performance requirements and prices brackets. Once the design is finalized, the
patterns are cut in pattern sheets for different components.
Cutting of Components: The various components of bag viz bottom sides, top flaps,
pocket etc are cut from the fabric with the help of pattern by using knife cutter. The
requisite lengths of tapes for piping and straps are also cut.
Stitching of bags: The various cut components in fabric are stitched as per design
using industrial sewing machines. The tapes and pockets are also stitched as per
design. While stitching the piping is also placed along the stitched length. The slide
fasteners Vellcrow are also stitched in the bag as per design.
Fixing of accessories: Various accessories viz buckles in metal or plastics, labels,
washers, rivets, boss (feet), locks and bottom lining sheets are fixed in the bags.
Marking, Screen printing and packaging - The requisite design, trade mark and other
information is then printed or pasted in the form of labels in the bags. Each bag is placed
in a polythene bags and then these are packed in card board cartons.

27

Register eDocPrinter PDF Pro Online Now!!

Register to Remove Trial Watermark!!

The process flow chart for the production of school bags and air travel bags is as
under:

Fabric & Raw Material Store

Designing and Pattern making

Cutting of fabric and tape as per


designs & Pattern

Stitching of the bags

Fixing of accessories

Marking, Screen printing

Packaging
5.4.2 School Uniform and Ready made garments
The process flow chart for the production of school uniforms and ready made
garments is as given below. The main process operations to be carried out in each
section are also mentioned in the process flow chart.

28

Register eDocPrinter PDF Pro Online Now!!

Register to Remove Trial Watermark!!

Fabric Store
Fabric and other accessories

Dying is out sourced, the fabric is


sent for dying if needed

Designing & pattern Making


The patterns are cut as per design from the pattern sheet

Cutting Department
Cutting table

Cutting table

Cutting table

Cutting table

Layers of cloth are placed on cutting tables.


Fabric is cut in to different components as per pattern
Cut components are numbered.
Before transferring cut components to production department, these will be tied in
the form of bundles, either garment piece wise or component wise.

Production Department
Stitching M/c

Stitching M/c

Stitching M/c

Stitching M/c

Stitching M/c

Stitching M/c

Stitching M/c

Stitching M/c

Various components of uniform are stitched.


Over lock stitching is also made simultaneously.

Button, buckle and hook fixing


As per design the accessories are fixed to the uniform

Thread Cutting
Thread ends are cut manually

Pressing Steam press


Table

Table

Table

Table

Checking Finishing Department


While checking if any defects are found
Either the defective part is changed or
Garment is washed or dry cleaned

Packaging Department
Uniform / Garments are packed in plastic bag and then packed in cartons

29

Register eDocPrinter PDF Pro Online Now!!

Register to Remove Trial Watermark!!

As given in the process flow chart above the manufacturing of uniform and
garment would involve the following process operations.
-

Selection of material, designing & pattern cutting


Lay planning and cutting
Stitching of garment
Fixing of buttons
Thread cutting
Inspection and packaging

5.5 Production capacity


The main machines in the project are sewing machine of various types. The
capacity of the machines would depend on the type of garment or bag being produced
and the skilled level of the machine operator. Keeping in view, the normal working, the
production capacity has been calculated on 80% utilization of the machines. The
production capacity has been calculated on single shift basis and 300 working days in a
year. Based on these calculations, the production capacity works out as under: School bags / air travel bags
School uniforms sets

1,00,000 nos
1,20,000 nos

5.5 Technical know-how


The technology involved in the production of school bags and school uniforms is
relatively a simple technology and basically involves cutting of the fabric as per designs,
stitching of the fabric and fitting of accessories. The suppliers of stitching machine
provide assistance in proper operation of machine. In the initial phase, the experts in the
field of cutting of fabric, stitching of fabric may need to be brought from India who could
in turn train the local workers over a period of time.

5.6 Requirement of power and fuel


It is estimated that 60 HP power connection would be required for the production
unit including the power requirement for production machines and general purpose
lighting. The cost of the power has been calculated on the basis of Re. 1.45 per unit.

5.7 Manpower requirement


The production capacity and the financial projections are based on single shift
operation.
The manufacturing unit will have two production sections viz bag
manufacturing section and garment manufacturing section. For single shift operation of
the unit, 5 managerial and office staff, 2 marketing executive, 2 cutting masters, 2
production supervisors, 35 tailoring staff for bag section, 90 tailoring staff for uniform

30

Register eDocPrinter PDF Pro Online Now!!

Register to Remove Trial Watermark!!

section and 70 unskilled workers would be required. In case the unit is required to be
operated in more than one shift, additional staff would be required. In addition to this,
there would be a requirement of contract workers during construction phase of the
factory and installation of machinery and equipment.

5.8 Organization Flow Chart


The organization chart for single shift operation would be as under:

Organization Chart
Manager
(Overall head of the factory operations)

Bag production
Section
Production
Supervisor 1
Cutting master
1
Tailoring Staff
35 nos
Unskilled
workers 60
nos

Uniform
production
Section
Production
Supervisor 1

Administration
and accounts
Accounts and
administration
staff 4 nos

Marketing
Department
Marketing
Executive 2
nos

Cutting master
1 no
Tailoring Staff
90 nos
Unskilled
workers 10
nos

The project has a good employment potential for skilled and unskilled workers
which would be employed in the production unit. Beside the project would generate
employment potential in marketing & sales of its produce, transport of raw materials and
finished products. The project would thus create opportunity both for direct & indirect
employment.

31

Register eDocPrinter PDF Pro Online Now!!

Register to Remove Trial Watermark!!

5.9 Plant Layout

32

Register eDocPrinter PDF Pro Online Now!!

Register to Remove Trial Watermark!!

CHAPTER 6 PLANT LOCATION AND


INFRASTRUCTURE
6.1 Potential Locations
The project has been designed mainly to cater to the requirement of uniform and
school bags for school children. Accordingly, vicinity to the centres of education and
trade centres has to the essential pre-requisites for deciding the location of the unit, so
that the products manufactured by the unit could be supplied to various locations in
Bhutan through trade channels. As mentioned earlier also, Thimphu, Chhukka,
Trashigang, Samdrup, Paro and Samatse happen to be the major education centre in
terms of size of enrollment till higher secondary and the unit could be setup at one of
these locations.
The process of manufacture both in case of uniforms and school bags basically
involves cutting and stitching of fabric and there are no solid, liquid or gaseous affluent
generated in the manufacturing process. As such the unit could also be setup in the
vicinity of the main city. The model of having the main processing unit and getting the
fabrication done by the small fabrication units and vendors could also be adopted if the
unit is near the main city.

= Education centres

33

Register eDocPrinter PDF Pro Online Now!!

Register to Remove Trial Watermark!!

6.2 Selection of suitable locations


In order to select the suitable location for the manufacturing plant, various
parameters viz availability of land, environmental conditions, investments considerations,
operational logistics, future development possibilities, socio-economic factors including
availability of services viz road transport and communication facilities etc. have been
taken into consideration for ranking the locations. The table below shows the ranking of
locations:

Ranking of possible locations based on various parameters


Weightage of location related parameters
S. Locations
No.
1
2
3
4
5
6

Land
Environmental Socio
Investment
Operational Future
Overall
Access
Conditions
economic Consideration Logistics
development Rating
conditions
factors
possibilities
42
Thimphu
7
7
7
7
7
7
Chukka
7
7
6
7
7
6
40
Trashigang
7
7
6
5
5
5
35
Samdrup
7
7
6
5
5
5
35
40
Paro
7
7
7
7
7
5
Samatse
7
7
6
5
5
5
35

It is accordingly suggested that the unit be located preferably at Thimphu,


alternatively Paro or Chhukka. The requisite infrastructure viz land, power, road
transport and communication facilities required for the proposed unit are available at
these locations specially in Bjemina Industrial Estate.
The project has been
conceptualized in totality and all the manufacturing operations are proposed to be
carried out in the unit itself. The project has an inbuilt provision for spare parts,
components and tools and the cost for the same has been incorporated. There may be
some requirement of minor mechanical or electric repairs which could be taken care of
by the skilled workers of the unit. Alternatively, the assistance could be taken of from
the existing mechanical and electrical repair workshops.
As the unit would also be producing ready made garments and air travel bags,
which could be easily marketed through trade channels in the capital city, Thimphu
would be a preferred location for setting up this unit.

34

Register eDocPrinter PDF Pro Online Now!!

Register to Remove Trial Watermark!!

CHAPTER 7 ENVIRONMENTAL IMPACT


7.1 Environmental aspect of manufacturing process
The manufacturing process involved in the production of school uniform and
school bags is basically a conversion process of fabric into garment or bag and the
stitching is the main process involved in the production process. No gaseous and liquid
affluent are generated in the process. Dying is the only process in the manufacturer of
garment which has pollution anger, however, in the proposed project, setting up of a
dying section has not been proposed. Some solid waste would be generated in the form
of cuttings of the fabric which can be easily disposed off. The cotton fabric cuttings and
cotton sewing threads are bio-degradable and would not pose any pollution hazard. In
the bag manufacturing section, some waste of nylon fabric would be generated which
could be easily disposed off. The waste generation could be minimized by using the
method of economic cutting and the waste pieces could also be used for creating
designs and pattern on the bags.

7.2 Waste generated and mitigation measures


As stated above, the manufacturing process for school bags and school uniform
is environment friendly and no toxic & hazardous waste would be generated. However,
some waste in the form of fabric trimmings and cuttings would be generated during
manufacturing process. Besides, there would be some waste of metal scrap, wooden
scrap, broken bricks, stone aggregates, etc during construction phase of the project.
The waste generated during construction phase is mainly used for earth filling & flooring.
The details of the waste generated during construction phase and project operation
phase along with mitigation measures are given below in subsequent paras.
7.2.1 Waste generated during construction phase
The details of the waste generated during construction phase and the mitigation
measures are as under: S. No.

Type of waste / scrap

1.

Metal scrap

2.

Wooden scrap

3.

Clay stones, mounds

Quantity
Around 2-3 %
of the steel
used
in
construction
Around 5-7% of
the wood used
in construction.
Depending
upon on the
topography of
the construction
site.

Mitigation measures
Sold
to
channels
reprocessing.

Impact on
Environment
trade No adverse
for impact

Used as fuel.

No adverse
impact

Used for earth filling.

No adverse
impact.

35

Register eDocPrinter PDF Pro Online Now!!

Register to Remove Trial Watermark!!

4.

Brick stone
aggregate

cement 5%
of
the Used for flooring No adverse
quantity used
and earth filling.
impact

7.3 Waste generated during project operation phase


The details of the waste generated during project operations and the methods of
the disposal recommended are as under: S. No.

Type of waste

Quantity

Mitigation measures

1.

Liquid effluents
(Dying plant for the
fabric has not been
included in the
project).
Gaseous effluents

Nil

Not applicable

Nil

Not applicable

Solid effluents or
waste

Cotton fabric and


nylon
fabric
cuttings

Fabric cuttings are


purchased by the trade
for
multiple
use
including stuffing or
reprocessing in case of
synthetics.

2.
3.

Impact
on
environment
No
adverse
impact

No
impact
No
impact

adverse
adverse

As such, the manufacturing process is environment friendly and there is no


adverse impact of the project on the environment.

36

Register eDocPrinter PDF Pro Online Now!!

Register to Remove Trial Watermark!!

Chapter 8 IMPLEMENTATION SCHEDULE


8.1 Implementation schedule - Table
Implementation Schedule for manufacture of Exercise Book
Particular
From
To Total Weeks
Arrangement of Funds through Bank/
Own
1
8
8
Procurement of Land

Procurement of Tech. know how/ transfer


of technology

18

18

Finalization of Building Contracts

11

Placement of Orders for Building Material

14

Placement of Orders for Machinery

19

10

Construction of Manufacturing premises

13

37

24

Delivery of Machinery

27

37

10

Erection, Commissioning of Plant &


Machinery & Utilities

37

41

Procurement of Raw Material and Trial


Runs

39

43

Training for workers

42

43

Commercial Production

43

44

37

Register eDocPrinter PDF Pro Online Now!!

8.2 Implementation Schedule - Graphic view


Implementation Schedule
Manufacture of Exercise Books
Week
Activity

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44

Arrangement of Funds through Bank/ Own

Procurement of Land

Procurement of Tech. know how/ transfer


of technology
Finalization of Building Contracts

Placement of Orders for Building Material

Placement of Orders for Machinery

Construction of Manufacturing premises

Delivery of Machinery

Erection, Commissioning of Plant &


Machinery & Utilities
Procurement of Raw Material and Trial
Runs
Training for workers

Commercial Production

Register eDocPrinter PDF Pro Online Now!!

38

Register to Remove Trial Watermark!!

CHAPTER 9 - COST PRESENTATION


9.1 Capital Cost
9.1.1 Cost of Land and Building
A). Plot and built up area
- Total land requirement
- Constructed area for godowns and offices
- Industrial shed for installations of machines:
For bag manufacturing department
For uniform manufacturing department
B). Cost of Construction
- Office and godowns (300 X 6000)
- Industrial sheds (950 X 3500)
Total

1500 sq. mt.


300 sq. mt.

250 sq. mt.


700 sq. mt.

Rs. 18,00,000/Rs. 33,25,000/Rs. 51,25,000/-

C). Land on lease @ Rs. 10/sq mt per annum.


Cost of Land and Building

Office and godown


Industrial sheds

9.1.2 Cost of Machinery and Equipments


A). For bag section
1. Industrial sewing machine,
Single needle, Semi automatic (M1)

1 No.

Rs. 40,000/-

2. Heavy duty craftsmen


Sewing machine (M2)

30 Nos.

Rs. 3,60,000/-

3. Tape braiding machine (M3)

3 Nos.

Rs. 45,000/-

39

Register eDocPrinter PDF Pro Online Now!!

Register to Remove Trial Watermark!!

4. Cutting tables (M4)

2 Nos.

Rs. 20,000/-

5. Cutting tools viz knife cutter,


Aluminium sheets, angle scales,
Cutting strips, pattern sheets, etc. (M5)

LS

Rs. 25,000/-

6. Hand tools for button/revert fixing (M6)

LS

Rs. 10,000/-

7. Screen printing & label printing


Machine (M7)

1 each

Rs. 25,000/-

Sub-Total

Rs. 5,25,000/-

B). For uniform section


1. Power driven, cloth cutting machine (M8) 1 No.

Rs. 1,00,000/-

2. Single needle sewing machine


Premium quality, with
foot and motor (M9)

Rs. 8,00,000/-

40 Nos.

3. Single needle sewing machine


Universal with foot & motor (M10) 40 Nos

Rs. 3,60,000/-

4. Double needle over lock,


Safety stitching machine
With edge trimming (M11)

2 Nos.

Rs. 1,00,000/-

5. Button holing machine (M12)

1 No.

Rs. 1,50,000/-

6. Button stitching machine (M13)

1 No.

Rs. 80,000/-

7. Hot fusing press (M14)

1 No.

Rs. 70,000/-

8. Garment washing machine (M15)

1 No.

Rs. 1,50,000/-

9. Hydro extractor (M16)

1 No.

Rs. 75000/-

10. Tumbler drier (M17)

1 No.

Rs. 1,50,000/-

11. Steam press, industrial (M18)

5 Nos.

Rs. 75,000/-

12. Cutting and press tables (M19)

8 Nos.

Rs. 80,000/-

Sub-total
Total of (A) and (B)

Rs. 21,90,000/Rs. 27,15,000/-

40

Register eDocPrinter PDF Pro Online Now!!

Register to Remove Trial Watermark!!

Cost of Machinery and Equipments

Bag section
Uniform section

Miscellaneous Fixed Assets

Rs. 3.00 lakhs

Pre-operative expenses

Rs. 5.00 lakhs

9.2 Operating Costs


9.2.1 Cost of Raw materials
A). For bag section (1 lac pieces)
1. PU coated, Nylon fabric
600 * 600 denier, 54 width

8 lac meters

Rs. 68,00,000/-

2. Nylon tape in 2.5 cm and 3.75 cm width

6 lac meters

Rs. 18,00,000/-

3. Buckle and hook sets

2 lac sets

Rs. 20,00,000/-

4. Handles

1 lac pieces

Rs. 15,00,000/-

5. Slider & triangles

LS

Rs. 10,00,000/-

6. Lining material

LS

Rs. 10,00,000/-

7. Sewing thread, rivets


Printing, packing material

LS

Rs. 10,00,000/-

Sub-total

Rs. 1,51,00,000/-

B). For uniforms section


1. Cotton fabric

1.8 lac meters

Rs. 1,08,00,000/-

41

Register eDocPrinter PDF Pro Online Now!!

Register to Remove Trial Watermark!!

2. Blended fabric

1 lac meters

Rs. 1,50,00,000/-

3. Trims & Embellishment

LS

Rs. 18,00,000/-

4. Sewing thread, detergents


And other consumable

LS

Rs. 10,00,000/-

5. Packaging material

LS

Rs. 5,00,000/-

Sub-total

Rs. 2,91,00,000/Cost of Raw Materials

Bag section
Uniform section

9.2.2 Salary and Wages


Manager
Production Supervisor
Office staff & Marketing Executive
Cutting master
Tailoring staff for bag section
Tailoring staff for uniform section
Helpers for bag section
Helpers for uniform section
Annual salary and wages

1 no
2 Nos
6 Nos
2 Nos
35 Nos
90 Nos
60 Nos
10 Nos

Rs. 25,000/Rs. 30,000/Rs. 72,000/Rs. 20,000/Rs. 2,45,000/


Rs. 6,30,000/
Rs. 3,50,000/
Rs. 50,000/-

Rs. 164.64 lacs

42

Register eDocPrinter PDF Pro Online Now!!

Register to Remove Trial Watermark!!

Salary and Wages

Manager
Production Supervisors
Office and marketing staff
Cutting master
tailoring staff for bag section
tailoring staff for uniform section
helpers for bag section
helpers for uniform section

9.2.3 Cost of Power and Fuel


Power requirement for production machines
Power requirement for general purpose for lighting
Of stores, offices and production unit
Total

32 KWH

16 KWH

48 KWH

Annual cost of power Rs. 1,25,280/-

Power Requirement

Power for production machines


Power for general purpose

43

Register eDocPrinter PDF Pro Online Now!!

Register to Remove Trial Watermark!!

9.2.4 Annual Turnover


1 lac bags @ Rs. 280 per bag
1.2 lac sets of uniform @ Rs. 400 per uniform
Total

Rs. 2,80,00,000/Rs. 4,80,00,000/-

Rs. 7,20,00,000/-

Annual Turnover

Bags
Uniform

44

Register eDocPrinter PDF Pro Online Now!!

Register to Remove Trial Watermark!!

CHAPTER 10 FINANCIAL ANALYSIS


10.1 Project Assumptions
Assumptions at a Glance
S. No.
1
2
3
4
5
6
7
8
9
10
11
12
13
14

Particulars
Total Project Cost
Debt
Equity
Rate of Interest
Depreciation (Building)
Depreciation (Machinery)
Tax
Construction Cost (Building) per sq.m.
Construction Cost (Shed) per sq.m.
Repayment period of Debt
Moratorium period
Installed Capacity (Units in Thousands)
Capacity Utilization
Working Capital Cycle

Rate/Amount
163.82
70%
30%
12%
SLM 10 yrs
SLM 20 yrs
30%
6000
3500
8 yrs
1 yr.
275
80%
1 month

10.2 Total Project Cost

1
2
3
4
5
6
7

Total Project cost


Machinery
Construction Cost
Miscellaneous Fixed Assets
Pre operating Expenses
Training Expense
Interest
Working Capital
Total

36.11
51.25
3.00
5.00
0.36
11.49
56.61
163.82

45

Register eDocPrinter PDF Pro Online Now!!

Register to Remove Trial Watermark!!

Break up of Total Project Cost

Machinery
Construction cost
Miscellanous fixed assets
Pre operating expenses
Training expenses
Interest
Working capital

10.3. Means of Finance


Debt
Equity
Total

114.67
49.14
163.82

70%
30%
100%

Break up of Means of Finance

Debt
Equity

10.4. Investment on Machinery


A). For bag section
M1
M2
M3
M4
M5
M6

40,000
360,000
45,000
20,000
25,000
10,000

46

Register eDocPrinter PDF Pro Online Now!!

Register to Remove Trial Watermark!!

Add
Add
Add
Add

M7
Sub Total
B). For uniform section
M8
M9
M10
M11
M12
M13
M14
M15
M16
M17
M18
M19
Sub Total
Total
Packaging, Forwarding, Transport and Insurance
@ 11%
Installation, Erection and Commissioning @ 2%
Duty and Taxes @ 10%
Spare Parts @ 10%
Total Cost

25,000
525,000
100,000
800,000
360,000
100,000
150,000
80,000
70,000
150,000
75,000
150,000
75,000
80,000
2,190,000
2,715,000
298650
54300
271500
271500
3,610,950

Break up of Investment on Machinery

Cost of machinery
Packaging to Insurance
Installation to Commissioning
Duty and Taxes
Spare parts

10.5. Cost of Construction


Constructed Area (300 Sq. mtr. @ 6000per Sq.
mtr.)

1800000

Shed (950 Sq. mtr. @ 3500 per Sq mtr.)

3325000

47

Register eDocPrinter PDF Pro Online Now!!

Register to Remove Trial Watermark!!

Total

5125000

Break up of Cost of Construction

Constructed area
Industrial shed

48

Register eDocPrinter PDF Pro Online Now!!

Register to Remove Trial Watermark!!

10.6 Statement of Expenditure


Expenses (in Rs.)
Salary and Wages
Type of Employees
Manager
Product Supervisor
Office's Staffs and Marketing Executive
Cutting Master
Tailoring Staff for Bag section
Tailoring Staff for Uniform section
Helpers for bag section
Helpers for Uniform section
Total
Perks
Total
Training and Development Cost ( 1% of
Machinery)
Power (60HP @ 0.75per hour, 80%
utilization, 8hrs/day, 25days/month)

No. of Employees
1
2
6
2
35
90
60
10

Per Annum
300000
180000
144000
120000
84000
84000
60000
60000

Total
3
3.6
8.64
2.4
29.4
75.6
36
6
164.64
24.70
189.34

at 15%

0.36
Rate=1.45/unit

Diesel, Water
Selling Expenses ( Publicity and Marketing
Expense)

Per month
25000
15000
12000
10000
7000
7000
5000
5000

10440

1.25

5000

0.6

5% of Sales

38

Total

64.91

10.7. Cost of Raw Materials


Raw material cost (Rs.)
A1
A2
A3
A4
A5
A6
A7
Sub-total
B1
B2
B3
B4
B5
Sub-total

6,800,000
1,800,000
2,000,000
1,500,000
1,000,000
1,000,000
1,000,000
15,100,000
10,800,000
15,000,000
1,800,000
1,000,000
500,000
29,100,000

Total

44,200,000

49

Register eDocPrinter PDF Pro Online Now!!

Register to Remove Trial Watermark!!

10.8 Break up of cost of production


Particulars
Raw Material & Consumables
Utilities & Fuel

Amount
(in lacs)
442.00
1.85

Wages & Salaries

189.34

Indirect Expenses

66.05

Cost Breakup

Raw Material & Consumables


Utilities & Fueles
Wages & Salaries
Indirect Expenses

10.9 Annual Turnover


Particulars

Units

Rate

Total

Bags
Uniforms
Total

100,000
120,000
220,000

280
400

28000000
48000000
76000000

50

Register eDocPrinter PDF Pro Online Now!!

Register to Remove Trial Watermark!!

Break up of Annual Turnover

Bags
Uniforms

51

Register eDocPrinter PDF Pro Online Now!!

10.10 Income statement


Income Statement
Operating years

275000.00
80%

275000.00
80%

275000.00
80%

275000.00
80%

275000.00
80%

275000.00
80%

275000.00
80%

PRODUCTION

220000

220000

220000

220000

220000

220000

220000

220000

220000

220000

Sales Revenue

760.00

760.00

760.00

760.00

760.00

760.00

760.00

760.00

760.00

760.00

Raw Material & Consumables


Utilities & Fueles
Power
Water, Diesel, etc
Sub Total
Wages & Salaries

442.00

442.00

442.00

442.00

442.00

442.00

442.00

442.00

442.00

442.00

1.25
0.60
1.85
189.34

1.25
0.60
1.85
189.34

1.25
0.60
1.85
189.34

1.25
0.60
1.85
189.34

1.25
0.60
1.85
189.34

1.25
0.60
1.85
189.34

1.25
0.60
1.85
189.34

1.25
0.60
1.85
189.34

1.25
0.60
1.85
189.34

1.25
0.60
1.85
189.34

5.00
3.00

5.00
3.00

5.00
3.00

5.00
3.00

5.00
3.00

5.00
3.00

5.00
3.00

5.00
3.00

5.00
3.00

5.00
3.00

0.12
641.31
38.00
679.31

0.12
641.31
38.00
679.31

0.12
641.31
38.00
679.31

0.12
641.31
38.00
679.31

0.12
641.31
38.00
679.31

0.12
641.31
38.00
679.31

0.12
641.31
38.00
679.31

0.12
641.31
38.00
679.31

0.12
641.31
38.00
679.31

0.12
641.31
38.00
679.31

80.69
13.76
6.17
60.76
18.23
42.53

80.69
12.04
6.17
62.48
18.74
43.73

80.69
10.32
6.17
64.20
19.26
44.94

80.69
8.60
6.17
65.92
19.78
46.14

80.69
6.88
6.17
67.64
20.29
47.35

80.69
5.16
6.17
69.36
20.81
48.55

80.69
3.44
6.17
71.08
21.32
49.75

80.69
1.72
6.17
72.80
21.84
50.96

80.69
0.00
6.17
74.52
22.36
52.16

80.69
0.00
6.17
74.52
22.36
52.16

Capacity
Installed Capacity (Units)
Capacity Utilisation

Factory Overheads
General Overheads
Lease
Land
Estimated Cost of Production
Selling Expenses
Cost of Sales
EBITDA
Interest
Depreciation
PBT
Taxation
PAT

10

275000.00 275000.00
80%
80%

275000.00
80%

It would be seen from table above that the PBT in the 1st year of operation in Rs. 60.76 lacs which works out to be 8% of the total sales. In the 10 th
year, the %age of PBT would be 10%. Similarly PAT in the 1 st year is Rs. 42.53 lacs accounting for 6% of total turnover. PAT in 10 th would rise to
7%. These figures could vary depending upon change in tax structure.

Register eDocPrinter PDF Pro Online Now!!

52

10.11 Repayment and Interest schedule for Loans


Repayment and Interest Schedule for Loans

Operating Years
Rate of Interest
Loan (Outstanding)
Interest
Moratorium
Repayment
Closing Balance

1
12%
114.67
13.76

10

100.34
12.04

86.00
10.32

71.67
8.60

57.34
6.88

43.00
5.16

28.67
3.44

14.33
1.72

0.00
0.00

0.00
0.00

14.33
100.34

14.33
86.00

14.33
71.67

14.33
57.34

14.33
43.00

14.33
28.67

14.33
14.33

14.33
0.00

0.00
0.00

0.00
0.00

10.12 Depreciation
Depreciation

Operating Years

Machinery @ 10%
Construction Cost @
5%

3.61

3.61

3.61

3.61

3.61

3.61

3.61

3.61

3.61

3.61

2.56

2.56

2.56

2.56

2.56

2.56

2.56

2.56

2.56

2.56

Total

6.17

6.17

6.17

6.17

6.17

6.17

6.17

6.17

6.17

6.17

Register eDocPrinter PDF Pro Online Now!!

10

53

10.13 Projected Fund flow statement


Projected Funds Flow Statement
Construction Period
Years

SOURCES OF FUNDS
Equity
Debt
PBDIT
Total Sources

10

80.69

80.69

80.69

80.69

80.69

80.69

80.69

80.69

80.69

80.69

80.69

80.69

80.69

80.69

80.69

80.69

80.69

80.69

80.69

80.69

14.33
13.76
18.23

14.33
12.04
18.74

14.33
10.32
19.26

14.33
8.60
19.78

14.33
6.88
20.29

14.33
5.16
20.81

14.33
3.44
21.32

14.33
1.72
21.84

0.00
0.00
22.36

0.00
0.00
22.36

163.82

46.32

45.12

43.91

42.71

41.51

40.30

39.10

37.89

22.36

22.36

0.00

34.37
0.00
34.37

35.57
34.37
69.94

36.78
69.94
106.72

37.98
106.72
144.70

39.19
144.70
183.89

40.39
183.89
224.28

41.59
224.28
265.87

42.80
265.87
308.67

58.34
308.67
367.01

58.34
367.01
425.34

49.14
114.67

APPLICATION OF FUNDS
Fixed Assets Purchase
Miscellaneous Fixed Assets
Increase in Current Assets
Repayment of Loan Payment
Payment of Interest on Term Loan
Taxation
Total Application

Operation period
5
6

SURPLUS/(DEFICIT)
A-B
OPENING CASH & BANK BALANCES
CLOSING CASH & BANK BALANCES

163.82

104.21
3.00
56.61

0.00

Register eDocPrinter PDF Pro Online Now!!

54

10.14 Projected Balance Sheet


Projected Balance Sheet

Sn

Description

1.1 Equity
1.2 General Reserves
1.3 Debt
Total Liabilities
2 Assets
2.1 Gross Fixed Assets
2.2 Accumulated Depreciation
2.3 Net Fixed Assets
2.4 Working Capital Assets
2.5 Cash & Bank Balances
Total Assets

Construction
Period
Operati0on Period
1
1
49.14
114.67
163.82
107.21
107.21
56.61
0
163.82

10

49.14
42.53
100.34
192.01

49.14
86.26
86.00
221.41

49.14
131.20
71.67
252.02

49.14
177.34
57.34
283.82

49.14
224.69
43.00
316.84

49.14
273.24
28.67
351.05

49.14
323.00
14.33
386.47

49.14
373.95
0.00
423.10

49.14
426.12
0.00
475.26

49.14
478.28
0.00
527.42

107.21
6.17
101.03
56.61
34.37
192.01

107.21
12.35
94.86
56.61
69.94
221.41

107.21
18.52
88.69
56.61
106.72
252.02

107.21
24.69
82.51
56.61
144.70
283.82

107.21
30.87
76.34
56.61
183.89
316.84

107.21
37.04
70.17
56.61
224.28
351.05

107.21
43.21
63.99
56.61
265.87
386.47

107.21
49.39
57.82
56.61
308.67
423.10

107.21
55.56
51.65
56.61
367.01
475.26

107.21
61.73
45.47
56.61
425.34
527.42

Register eDocPrinter PDF Pro Online Now!!

55

10.15 Discounted Cash Flow Statement


Discounted Cash flow statement (Total Investment)

Years
Inflows
Net Cash Accruals After Interest &
Tax
Less: Change in Working Capital
Add back financial Expenses
Terminal value
Total inflow
Outflows
Investment
Bridge Loan
Total outflow
Net Cashflow
IRR on Investment (%)
NPV (12% Discount Rate)
Pay Back Period

Construction Period
t=0

t=1

107.21
0
107.21
-107.21
32%
Rs. 206.75
2 years 6 months

56.61
0
56.61
-56.61

Operation Period
5
6

10

48.70
0
13.76

49.91
0
12.04

51.11
0
10.32

52.32
0
8.60

53.52
0
6.88

54.72
0
5.16

55.93
0
3.44

57.13
0
1.72

58.34
0
0.00

60.40

59.88

59.37

58.85

58.34

58.34
0
0.00
290
348.34

62.46

61.95

61.43

60.92

62.46

61.95

61.43

60.92

60.40

59.88

59.37

58.85

58.34

348.34

10

48.70
0
14.33

49.91
0
14.33

51.11
0
14.33

52.32
0
14.33

53.52
0
14.33

54.72
0
14.33

55.93
0
14.33

57.13
0
14.33

58.34
0
0.00

34.37

35.57

36.78

37.98

39.19

40.39

41.59

42.80

58.34

58.34
0
0.00
191
249.34

34.37

35.57

36.78

37.98

39.19

40.39

41.59

42.80

58.34

249.34

Discounted Cashflow Statement (Equity)


Years
Inflows
Net Cash Accruals After Interest &
Tax
Less: Change in Working Capital
Less: Loan Repayment
Terminal Value
Total Inflow
Outflows
Equity
Total Outflow
Net Cash Flow
IRR on Equity

t=o

t=1

32.16
32.16
-32.16
56%

16.98
16.98
-16.98

The IRR on investment is 32% which is quite a positive indication about the financial health of the project because the cost of borrowing is 12%.
Similarly IRR on Equity is 56% which again is a positive indicator. The NPV @ of 12% on investment is Rs. 206.75 lacs which is quite good for any
investment.

Register eDocPrinter PDF Pro Online Now!!

56

10.16 Break Even Point and Sensitivity Analysis


Break Even Point And Senstivity Analysis
Normal
Variable Cost (Rs. Lacs)
Raw material & Consumable Stores
Utilities
Total Variable Cost
Average Variable Cost (Rs. / Thousand Litres)
Fixed Cost (Rs. Lacs)
Wages & Salaries
Repairs & Maintenance
General Overheads
Lease charges
Financial Expenses
Depreciation
Total Fixed Cost (Rs. Lacs)
Average Fixed Cost (Rs. per Thousands Litres)
Average Selling Price
Project Break Even Point (t)
Project Break Even
Cash Break Even Point
Cash Break Even

Case1

Case2

Case3

Case4

442.00
1.85
443.85

486.20
2.04
488.24

442.00
1.85
443.85

442.00
1.85
443.85

486.20
2.04
488.24

201.75

221.93

201.75

201.75

221.93

189.34
5.00
3.00
0.12
13.76
6.17
217.39
1811.58
345.45
151277
69%
146981
67%

189.34
5.00
3.00
0.12
13.76
6.17
217.39
1811.58
345.45
175984
80%
170987
78%

208.27
5.50
3.30
0.13
15.14
6.79
239.13
1992.74
345.45
166405
76%
161679
73%

189.34
5.00
3.00
0.12
15.14
6.79
219.38
1828.20
345.45
152664
69%
147939
67%

198.80
5.25
3.15
0.13
15.89
7.13
230.35
1919.60
328.18
216791
99%
210081
95%

Case 1 - 10% Increase in Variable Cost


Case 2 - 10% Increase in fixed Cost
Case 3 - 10% Increase in Project Cost
Case 4 - 10% Increase in Variable Cost and Fixed Cost
5% Increase in Fixed Cost
5% Dcrease in Selling Price

The project break even in normal case is 67% i.e. after achieving 67% of the Projected Turn Over the unit would be in be in the profit zone.

Register eDocPrinter PDF Pro Online Now!!

57

Register to Remove Trial Watermark!!

10.17 Ratio Analysis


Ratio Analysis
1 Return on Assets

26%

2 Return on Equity

87%

3 Debt-Equity Ratio

2.33%

4 Interest coverage Ratio

10.18 Foreign exchange implications


The foreign exchange requirement for the project would be only for the import of
machines, equipments and accessories for a value of Rs. 30 lacs, during the setting up
of the project. Approximately, Rs. 5 lacs worth of foreign exchange would be required
for incidental expenses such as training, travel, etc. Additionally, there would be a
requirement of Rs. 442 lacs per annum for the import of raw materials. Thus, the foreign
exchange expenditures during first five years would be Rs. 2245 lacs. The foreign
exchange saving in terms of import substitution would be around Rs. 3800 lacs during
the first five years of operation of the project.

58

Register eDocPrinter PDF Pro Online Now!!

Register to Remove Trial Watermark!!

CHAPTER 11 ECONOMIC ANALYSIS


11.1 Economic Rate of Return (ERR)
Economic Rate of Return is the interest rate at which the cost and benefits of a
project, discounted over its life, and equal. ERR differs from Financial Rate of Return in
that it takes into account the effects of factors such as Price Controls, Subsidies and Tax
breaks from local government, to compute the actual cost of the project to the economy.
The economic rate of return also includes indirect benefits to the economy that
are likely to be ploughed back to the investors, people, government and other
government or non-government agencies, over a longer period of time.

11.2 Relevance of ERR to the project


This concept of ERR is more relevant for big projects involving large capital
deployment. For small projects, like the project under consideration, there may not be
significant difference between Financial Rate of Return and Economic Rate of Return,
as, while formulating the project, factors like Price Controls, Subsidies and Tax breaks
from local government and also socio-economic benefits, have not been taken into
account.

11.3 Socio-economic impact of the project


As state above, the concept of ERR is not quite relevant for this project and the
impact of the proposed unit would not be quite significant on the overall economic
scenario of Bhutan. However, over a long time horizon and setting up of a number of
similar units would result into following socio-economic benefits for the country.
Indigenous production of school bags and uniforms would lead to selfreliance for these items in the field of school supplies. This would also
insulate the school supplies from vagaries of external economies.
Local production of school bags and uniforms would lead to import
substitution which would result in saving of foreign exchange. Setting
up of more units to meet the requirement of school supplies would have a
multiplier effect on foreign exchange saving.
There are possibilities of export of the school bags and uniforms to
eastern and north-eastern parts of India and other neighboring markets.
This would lead to earning to foreign exchange for the country.
There are not many medium and small scale units manufacturing units in
Bhutan. Setting up of this unit would have a catalytic effect on growth of
entrepreneurship in medium and small scale sector.
The setting up of the project would lead to generation of direct and
indirect employment, both for skilled and unskilled workers which would

59

Register eDocPrinter PDF Pro Online Now!!

Register to Remove Trial Watermark!!

result into economic upliftment of local population. This would also lead
to upgradation of skills.
There are employment opportunities in the project for persons with
managerial, technical, financial and marketing capabilities.
The
employment of such people in the local industry would provide them an
option to have an employment in private sector in Bhutan and also reduce
the migration of qualified manpower.
There would be revenue generation for the local government by way of
excise, sales tax/VAT and income tax from the unit as well as from its
promoters.
Finally, the project would lead to enhancement of economic activities in
the field of construction, transport of raw materials and finished goods,
marketing and trade, repairs and maintenance, etc.
It is important here to mention that above benefits can only be listed but these
cannot be quantified based on a single unit with small investment. However, as
mentioned above, if a number of such units in school supplies sector or any other sector
of economy are setup, these would have a significant impact on overall economy of
Bhutan.

60

Register eDocPrinter PDF Pro Online Now!!

Register to Remove Trial Watermark!!

Annexure

61

Register eDocPrinter PDF Pro Online Now!!

Register to Remove Trial Watermark!!

Annexure I

List of Machine Suppliers:


1.

M/s Singer India Ltd.


3 Devika Towers 6 Nehru Place, New Delhi - 110019.
Delhi India Tel. No. : 91-11-6446012

2.

M/s Indl Machines Delhi Pvt Ltd


E 1/23 B, Asaf Ali Road, Delhi, 110002
Tel: 91 11 23232211

3.

M/s Dutta Industrial Sewing Machine Corporation


79A, Udyog Vihar-V, Gurgaon
Dhundhahera, Gurgaon, Haryana 122002
Ph. 91 124 2451230

4.

M/s Laxmi Traders


1635A /Lane No 14.5
Govind Puri, New Delhi, Delhi 110019
Tel; 91 11 26441329

5.

M/s Ekta Sewing Machine


1634/14 Main Road
Govind Puri, New Delhi, Delhi 110019
Tel: 91 11 20518770

6.

M/s Friends Mechanical Works (India)


B-92, Industrial Estate,
Ludhiana - 141003, Punjab, India
Phone : 91-161-2530045/2672811

7.

M/s Kabir International


G-3/34, Model Town-Iii,
Delhi - 110009, India
Phone : 91-11-27217835

8.

M/s Daichi Overseas Pvt. Ltd.


E-241, Focal Point, Ludhiana - 141010,
Punjab, India
Phone: 91-161-2674145/2671321

9.

M/s Prima Sewing Machine


2662, Roshan Pura, Nai Sarak,
Delhi - 110006, India
Phone: 91-11-23264870

62

Register eDocPrinter PDF Pro Online Now!!

Register to Remove Trial Watermark!!

10.

M/s Deson Exports


E-325a, Phase-Iv, Focal Point,
Ludhiana - 141010, Punjab, India
Phone: 91-161-5013898

11.

M/s Jet Tech Private Limited


801, A-Wing, Alkapuri Arcade, R.C. Dutt Road,
Vadodara - 390007, Gujarat, India
Phone : 91-265-2338188
Fax : 91-265-2338145

12

M/s Jap Stretch Private Limited


22, Ballygunge Terrace, Kolkata - 700029,
West Bengal, India
Phone : 91-33-24611253
Fax : 91-33-24611253

13.

M/s R. K. Sewing Machine


32, Raghukul Building, Bhawani Shankar Road,
Near Kabutarkhana, Dadar (W), Mumbai - 400028,
Maharashtra, India
Phone : 91-22-66624599
Fax : 91-22-24158532

14.

M/s Juki India Private Limited


A-215/B, Okhla Industrial Area Phase-1,
New Delhi 110020, India
Tel : 91-11-28616097
Fax : 91-11-26819273

15.

M/s Vishal Sewtech


B-388, New Ashok Nagar,
Opp. Eastend Public School,
New Delhi - 110096, India
Phone : 91-11-22716060

63

Register eDocPrinter PDF Pro Online Now!!

Register to Remove Trial Watermark!!

Annexure II
List of Raw Materials suppliers:
A. Heavy duty Nylon Fabric
1.

M/s Sunwell Materials Technology Co., Ltd.


No. 65, Peihui, Guei Village, Shui Shang Hsiang,
Chiayi Hsien 608, Taiwan
Tel; 886-5-2836233

2.

M/s Sparsh Poly Chem Private Limited


1524, M. I. E., Part-B, Bahadurgadh, Haryana - 124 507, India
Phone: + (91)-(127)-25948127

3.

M/s Samsun Plastalloys


F-27, DSIDC, Nangloi, New Delhi,
Delhi - 110 041, India
Phone: + (91)-9212760886

4.

M/s Eros International (A division of Eros Group)


236/2, Gupta Road, Industrial Area-A,
Ludhiana, Punjab - 141 003, India
Phone: + (91)-(161)-5036464/3290760

5.

M/s Balavigna Weaving Mills Private Limited


11/A1, Kasthuribai Road, Nagal Nagar,
Dindigul, Tamil Nadu - 624 003, India
Phone: + (91)-(451)-2401085

B. Cotton and Blended Fabric


1.

M/s Clothes & Fabrics International


107 Niranjan, 99 Marine Drive,
Mumbai, MH
India 400002

2.

M/s National Sewing Thread Company Ltd


11, Venugopala Pillai Road, Chidabaram,
Chennau, Tamil Nadu, India 608601
Tel: 91-44-3291-0336

3.

M/s Zibo Daranfang silk development co.,ltd


No.1666 zhoulong road zhoucun zibo shandong china
ZIBO, Shandong, China 255300

64

Register eDocPrinter PDF Pro Online Now!!

Register to Remove Trial Watermark!!

4.

5.

Tel : 86-533-6868-387
M/s Tuhina Impex
132 Vidyut Nagar "C" Vaishali Nagar
Jaipur, Rajasthan
India 302021
Tel: 91-141-2353-479
M/s Polytex Linen Cotton Limited
Block C,D,E, 20/F, Excelsior Building,
68-76 Sha Tsui Road, Tsuen Wan, N.T.
N/A, N/A, Hong Kong 852
Tel: 852-2414-4263

65

Register eDocPrinter PDF Pro Online Now!!

Register to Remove Trial Watermark!!

Annexure III
List of lab testing equipment suppliers
1. M/s Imperial Lab Equipment
Address: 109, Vardhman Plaza Tower, H-3, Netaji Subhash Place
District Center, PitamPura, New Delhi, Delhi
Phone(s): 91-11-65154406 / 42470203
Fax(s): 91-11-27352924

2. M/s Scientific Engineering Corp


Address: 3280, Arya Pura Old Subzi Mandi, Delhi 110007
Phone(s): 91-011-23829918 / 23823794
Mobile: 9811569035
Fax(s): 91-011-23829918 / 23823794

3. M/s Toshniwal Brother Pvt. Ltd.


388 Udyog Vihar Phase 3
Gurgaon 122006
Haryana
Ph +91-124-4003629 / 4003985
Fax no +91-124-4003986

66

Register eDocPrinter PDF Pro Online Now!!

You might also like