Project Profile - GARMENT LEATHER

INTRODUCTION

         Leather garments are mainly used in cold places and they have great demand in western countries, where the winter is very severe. Most of the foreign countries has low temperature and high humidity. Therefore, using the leather garment is not only a fashion but also forms part of dressing materials. Demand for light sheep Napa is generally in high demand in Western countries in spring and summer seasons - and somewhat heavy sheepskin is used especially during autumn and winter in Europe and the USA. There is a very good export market for this product. Shower proof garment leather can be used even in rainy season also. Garment leather with water repellency properties has very good demand in all these countries.

MARKET POTENTIAL

         Leather Garments hold a share of 12.19% in India’s total leather products export whose export has shown a marginal decline of 0.30%. The major markets for Indian Leather Garments are Spain (18%), Germany (17%), Italy (14.30%), USA (14%), France (7%), Canada, Denmark and Netherlands (3% each). These 7 countries together accounts for 80% of India’s total leather garments export. Export to Spain shows positive growth of 8.04%, Denmark 28.90% and Canada 38.59%. Declining trend is seen in countries like Germany (3.47%), USA (1.98%), UK (3.9%), Italy (10%), France (9.42%), and Netherlands (6%).
         In the circumstances, it would, therefore, be prudent to concentrate India’s efforts in the currently strong importing countries, viz., USA, the UK, Germany, Italy, France, Netherlands, etc.

BASIS AND PRESUMPTIONS

IMPLEMENTATION SCHEDULE

TECHNICAL ASPECTS

    (i) PRODUCTION DETAILS & PROCESS OF MANUFACTURE:

    (ii) QUALITY SPECIFICATION: As per the customers’ requirement.

    (iii) PRODUCTION CAPACITY:

    (iv) MOTIVE POWER (APPROXIMATE):

    (v) POLLUTION CONTROL:

         Pollution control measures are to be given utmost attention as the effluence coming of the process are very toxic and they are likely to affect the flora and fauna of water if disposed off into rivers. More over, effluents are likely to degrade the fertility of the soil. So proper effluent treatment plant is to be installed in the tannery to treat the effluent and make the treated water go out in to river or use the same for irrigation purpose.

    (vi) ENERGY CONSERVATION:

         Energy is spent in the tannery in the form of electricity and fuel. However, there exists a lot of scope for conservation of electricity and fuel as a measure of energy conservation. The workers should be properly trained to operate the machines as and when required. They should be cautious to yield maximum units during the machine operation and should not be allowed to run the machine by motive power unnecessarily. The electrical line should be properly made and checked at regular intervals. In respect of fuel, proper attention is to be paid. The boiler should be properly maintained and misuse of fuel in the form of wood, petrol, kerosene should be avoided.

FINANCIAL ASPECTS:

1. Fixed Capital:

2. Machinery and Equipment:

3. Pre-operative Expenses

4. Total Fixed Capital (1+ 2+3)

WORKING CAPITAL (per month)

    (i) Personnel/Technical (per month)

    (ii) Raw Materials

    (iii) Utilities (per month)

    (iv) Other Contingent Expenses (per month)

    (v) Total Recurring Expenditure (per month)

    (vi) Working Capital for 3 months:
    (vii) Total Capital Investment

6. MACHINERY UTILIZATION

         Anticipated utilization of the machinery is about 75% to 90%. All machine operations are important. Hence, it is difficult to cut power supply to any particular machine, which is a bottleneck. However, it can be said that machines like shaving, setting, buffing occupy an important position in the manufacturing process. Hence, proper control and monitoring is required so that an even flow of production is assured. Moreover, the supervisory personnel should be effective enough to reduce the down time of the machine, carry out regular maintenance of the machines.

FINANCIAL ANALYSIS

    (i) Cost of Production (per year)

    (ii) Turnover (per year)

    (iii) Net Profit per annum (before taxation)

    (iv) Net Profit Ratio:

        = Net Profit x 100 / Turn-over per year

        = x 100 /

        = %

    (v) Rate of Return on Total Investment

        = Net Profit per year x 100 / Total Capital Investment

        = x 100 /

        = %

BREAK EVEN ANALYSIS:

    (i) Fixed Cost

BREAK EVEN POINT

        B.E.P. = Fixed cost x 100 / Fixed cost + Net Profit

         = ________x 100

        = 45 %

Addresses of Machinery & Equipment Suppliers:

        1.     M/s Shiva Engineering Co.,
                Ambur, North Arcot Dist., Tamilnadu.

        2.     M/s Prakash Engineering,
                MC Road, Madanapur,
                North Arcot Dist., Tamilnadu.

        3.     M/s Deepu Industries,
                Plot No. 29, Appu Mudali
                Street, Chennai – 600 001

        4.     M/s Bengal Tanning Machinery Co. (P) Ltd
                9 A, New Tanga Road, Kolkatta – 700 046

        5.     M/s Shalimar Engg Works,
                12/13, Prabhuram Shankar Lane,
                Kolkatta – 700 015

        6.     M/s Annapurna Enterprises,
                F-10/2 MIDC, Shiroli,
                Kholapur – 416 122

Addresses of Raw Material Suppliers:

        1.     M/s Bayer India Ltd,
                749, Annai Salai,
                Chennai – 600 002

        2.     M/s Tamil Nadu Chromates Chemicals Ltd
                13, Nungambakkam High Road,
                Chennai – 600 039.

        3.     Texfan Chemicals, Texfan House,
                47, Fourth Avenue,Ashok Nagar,
                Chennai – 600 083.

                4. M/s Quinn India Ltd,
                Quinn House, Road No. 2,
                Banjara Hills, Hyderabad – 500 034.

        5.     M/s Colourtex Ltd, 91,
                Navasari Road, Opp. Navin Flourine
                Ind Bhastan, Surat – 395 023.

        6.     Colour Chem Ltd, Ravindra Annexe,
                194 Churchgate, Reclamation,
                Mumbai – 400 020.

        7.     M/s B.A.S.F. India Ltd,
                Rhone Poulanc House,
                Sudam Kalv Ahire Marg,Mumbai – 400 025

        8.     Haryana Leather Chemicals Ltd,
                1004, Bhikaji Bhawan, Bhikaji Cama Place,
                New Delhi – 110 066