AJAY HANDLOOM UNIT

SAREES, MEKHLA ,DOKHNA

1. INTRODUCTION: The plain fabric is used as a raw material in

manufacturing printed bed sheets,
sarees, material, furnishings, etc. The finished handloom cloth can
be
supplied either bleached or unbleached and in a wide range of colours
and shades.
For coloured cloth, the yarn is bleached and dyed before weaving.
2. MARKET :There is good demand for cotton cloth throughout the
country. There is shortage felt
in the supply of cloth in wholesale market according to the dealers.
The demand for cotton fabric is oin increase for use as sarees,
dokhna,mekhla, etc The cloth from handlooms is cheaper in price with
quality finish.
3. MANUFACTURING PROCESS:
Each and every thread of the gadwal saree is hand woven. All the process involved in
weaving a saree is carried out manually, no machine is used in any of the steps. Each weaver
works from home with all his/her family helping in different steps of the process. Their life
revolves around weaving. It requires approximately 4-8 days (depending on the variety of
saree) of continuous efforts from two persons for weaving a saree on a handloom machine.
The core materials used for manufacturing the saree are Silk/Cotton and Jari. We import
silk/cotton from Bangalore and gold/silver jari from Surat.

Silk Cotton White Jari Red Jari

The major steps involved in manufacturing a saree are described briefly below.
Step 1: The process starts with dyeing the silk/cotton material. We have specially dedicated
experts for this process. In short the coloring process includes dipping the material repeatedly
in the boiled color water. We take the utmost care while dyeing the silk/cotton to make sure
that the color is uniform throughout the material and it doesn't affect the quality of the
material. The coloring process is a very crucial step in getting a good saree. The colors are
applied as per the specifications from our designers and also as per the orders from our
customers.

Coloring process
Step 2: After coloring the silk is dried in shade. Drying the material in sunny can harm the
material.

Drying the material

Step 3: After the silk is dried, it is rolled over small sticks (called kandis locally).
Step 4: The next step involves the actual weaving process of the saree. Please see the
handloom machines used for weaving the saree in the below pictures.

Handlooms
Gadwal Sarees are traditionally woven in the interlocked-weft technique (called kupadam or
tippadamu locally) and often with kotakomma (also called kumbam) in the borders and they
are known as a kotakomma or kumbam saree. The silk border is either tussar or mulberry and
the body is often of unbleached cotton, although it may also have colored cotton or silk
checks. Pure silk versions of Gadwal sarees are also available.
The design required on the saree is initially drafted on a graph paper and then the required
setup to weave that design is implemented on the handloom machine using the sheet. We
have experts for implementing these innovative designs on borders, body and pallu. All the

required setup is made on the handloom machine by our experts before weaving the saree.

Weavers at work

4.PRODUCTION CAPACITY PER ANNUM

Capacity 3000 pic

Selling Price 30,00,000
5.PROJECT COST/CAPITAL INVESTMENT

S.No Description Amount Rs.

1 Preliminary & Preoperative Expns 5000
2 Fixed Capital 4,00,000
3 Working Capital for 3month(s) 5,62,500
Total Project Cost 9,67,500
6. MEANS OF FINANCE

S.No Description %age Amount Rs.

1 Promoter Contribution 10% 96,750
2 Subsidy /Soft Loan 25% 2,41,875
3 Term Loan 65% 6,28,875
Total 9,67,500
7. FINANCIAL ASPECTS

A. FIXED CAPITAL
i. Land own
Buildings making ,76,000

ii. Machinery and Equipment

S.No Description Qty. Rate Amount Rs.

1 handlooms 10 30,000 3,00,000
2 Installation and electrification 1 20,000 20,000
3 Miscellaneous expenses 1 4,000 4,000
Total 3,24,000
TOTAL FIXED CAPITAL (i+ ii.) 76,000+3,24,000=4,00,000

B. WORKING CAPITAL

i. Salaries & Wages (per month)

S.No Description Nos. Sal/mon. Amount Rs.
1 Supervisor/Entrepreneur 1 10,000 10,000
2 Skilled Labour 10 9,000 90,000
3 Semi-skilled Labour 2 3,000 6,000
4 Unskilled Labour 1 2,000 2,000
Total 1,08,000
ii. Raw Material (per month)

S.No Description Unit Qty. Rate Amount Rs.

1 Yarn kg 125 600 75,000
Total 75,000
iii. Utilities (per month)

S.No Description Unit Amount Rs.

1 Power LS 3000
Total 3000
iv. Other Expenses (per month)

S.No Description Amount Rs.

1 Postage & Stationery Expenses 200
2 Transportation Expenses 500
3 Consumeble Stores 500
4 Miscellaneous Expenses 300
Total 1500

v. Total Working Capital (per month)

S.No Description Amount Rs.
1 Salaries and Wages 1,08,000
2 Raw Material 75,000
3 Utilities 3,000
4 Other Expenses 1,500
Total 1,87,500
8. COST OF PRODUCTION (PER ANNUM)

S.No Description Amount Rs.

1 Total Working Capital 22,50,000
2 Depreciation @15% 60,000
3 Interest @12% 75,465
Total 23,85,465
9. TURNOVER (PER YEAR)

S.No Description Unit Qty. Rate Rs. Amount Rs.

1 hamdlooms pic 3,000 1,000 30,00,000
Total 30,00,000

10. FIXED COST (PER YEAR)

S.No Description Amount Rs.

1 Depreciation 60,000
2 Interest 75,465
3 Salaries & Wages @40% 5,18,400
5 Other Expenses incl. Utilities @40% 21,600
Total 6,75,465
11. PROFIT ANALYSIS & RATIOS

1 Net Profit Rs.6,14,535

2 Percentage of Profit on Sales 20.48%
3 Percentage of Return on Investment 63.51%
4 Break Even Point 52.36%