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Declaration<br />                   I, the undersigned JUHI R. VEKARIA student of MBA Sem-3 here by declare that the project work presented in this report is my own work and has been carried out under the supervision of Dr. RAJESH PATEL of N.R. Vekaria Institute Of Business Management STUDY<br />This work has not been previously submitted to any other university for any examination.<br />Date :Student signature<br />Place : Junagadh         JUHI R. VEKARIA<br />Preface<br />Small is beautiful, so also, small scale industry. It is significant segment of the Indian economy & the objectives underlying its development are increase in the supply of manufactured goods, the promotion of capital formation, the development of indigenous entrepreneurial talents and skills and the creation of employment opportunities.<br />Students with initiative, creativity and Indian orientation have wonderful opportunities of becoming successful entrepreneurs of small scale business unit which have attained a lot of protection and encouragement from govt.<br />The subject “Entrepreneurship & Management of small scale business” adds further to the vocational guidance through the course of Master of Business Administration (M.B.A.).<br />Students enrolled in the course gain momentum to start their won business concerns after post graduation and they recognize their destination and difficulties by preparing this product project report. <br />Acknowledgement<br />I feel great pleasure to present this report of “Jeans”. I would like to heartily thanks to all the persons who have helped me in this report and give me adequate guidance and information for preparing this report.<br />I am thankful to Dr.Rajesh Patel the head of our business management department.<br />Date :Student signature<br />Place : Junagadh         Juhi R. Vekaria<br />Index<br />Sr. No.ParticularsPage No.Introduction to SSI7Introduction to the product8Product’s look - At a Glance9Justification of Location11Management setup14Partner’s background15Product Details18Sources of raw material19Market potential20Competitors & competitive strategy23Production process24Implementation schedule29Basic & Presumptions30Sales Details31Details of Land & Building32Details of Plant & Machinery32Other fixed assets33Total Fixed assets33Raw material requirements34Utilities34Man power requirement35Other administrative Exps. 37Total working capital38Total cost of project38Sources of fund39Interest39Depreciation40Maintenance & Repairs40Cost of Production41Profitability Analysis42BEP Analysis43Ratio Analysis44Cost Analysis46Risk Factors48Future Plans49Conclusion50Name & Address of machinery suppliers51Name & address of Raw material suppliers53<br />Introduction to SSI<br />Cottage & small scale industry have flourished in India since the early times. Even today they are a principal source of income & employment and their product find ready market in the country as well as abroad.<br />Small scale industry in India roughly provides employment to about 4.4 million people and constitutes a large position of the country’s exports. The govt. of India is well aware of the importance of small scale industry in our economy and growth of small scale industry i.e. establishment of various SSIs. All India Boards that give technical, financial and other relevant guidance to small scale industries, other benefits & concessions.  <br />Introduction to the product<br />Today Jeans are become popular product in the casual garment. The demand for Jeans is increasing day by day with the increase in population, with the adoption of western culture & industrial growth the demand for Jeans is increasing like anything. Jeans have left behind the tailor made cloth. It is been used all classes of people. Even in villages Jeans have become popular and people have started using it.<br />Jeans get a wider market in India. It has become very popular due to entry of the multinational companies in India and huge advertisement campaign. There is a large market in Gujarat as they Jeans factory has not developed in Gujarat as compared to Maharashtra & U.P. even in Mumbai.<br />So, JRV Jeans Mill has great opportunities to expand the market and can get heaviest rush of fashionable customers.<br />Project At a Glance<br />Name of the company<br />JRV Jeans MILLS<br />Address of the company<br />JRV Jeans MILLS, <br />G- 1875 Lodhika GIDC<br />Metoda<br />Rajkot (Gujarat)<br />Scale of the organization<br />Small scale industry<br />Type of firm<br />Partnership Firm<br />Nature of the product<br />Garments (Jeans)<br />Proposed name of the Brand<br />SWARA<br />Partners’ names<br />Juhi Patel<br />Tej Patel<br />Ramesh Patel<br />Estimated cost of the project<br />61,28,000<br />Market Area<br />Limited to Gujarat & Maharashtra<br />SSI Registration No.<br />Has been applied for<br />Justification of Location<br />Location of any industry plays a dominant role in the success or failure of the company. It has been rightly said that the mistake of selecting the wrong site cannot be corrected without heavy losses. Selecting a proper site for establishing SSI thus increase, as finance is a major constraint for a SSI unit.<br />The proposed location for the establishment of manufacturing facilities for my unit is GIDC, Metoda, Kalavad Road, Rajkot. Govt. has declared this area as an industrial area in past. Due to govt. incentives and initiatives, this are has developed very well with easy availability of infrastructure facilities.<br />The unit enjoys the following benefits of the location.<br />1. Raw Materials:<br />Raw materials is the basic constraint for all industries. Regular supply of raw material is very crucial to maintain the flow of production thus subsequently the cost of production can be reduced. Raw materials of Jeans like Denim cloth, cotton cloth, thread, button, rivet, zip, stickers etc. are obtained from Delhi, Mumbai, Ahmedabad and Sirmour. It takes time to purchase the raw materials so the order of raw materials is given in huge quantity so that there is smooth flow of production.<br />2. Labour Force<br />   Cheap & semi skilled labour force is easily available in large quantity in this area. Therefore, the availability of labour is convenient & economic.<br />3. Transportation <br />Transport facilities are mainly required for distribution of finished products to the retailers and wholesalers. The transportation cost is comparatively less as the market place is away at a distance of 13 kms.<br />4. Power<br /> Power is available from Gujarat Electricity Board (GEB) at subsidized rates, since the unit is located in an industrial area.<br />All the above mentioned factors are very crucial as they affect the cost of production as well as profitability and ultimately the success of the unit.<br />5. Other Locational Advantages<br />In addition to above mentioned advantages of GIDC, Metoda, Rajkot, there are several other benefits for having the project located at GIDC, Metoda, Rajkot.<br />Metoda is only 3 kms. Away from Rajkot hence unit is located at Metoda will avail all facilities available at Rajkot.<br />Metoda has got a full fledged telephone exchange making easier to contact anywhere in the world.<br />Management Setup<br />The three partners are entitled to take the post of directors. All the two partners i.e. Mr.Tej Patel, & Miss. Juhi Patel are the working parteners.<br />Miss. Juhi Patel will look after the marketing & trade setting as he has completed B.B.A. with marketing. Second partner Mr. Tej Patel shall handle accounting, financial and personnel as he has experience in same field and holds B.com and C.A. The third partner Mr. Ramesh patelshall handle production & designing as he has past experience of 2 years in same field and also holds MBA advance diploma in fashion designing.<br />The capital ratio of all three partners i.e. Miss.Juhi Mr. Tej& Mr. Rameshbhai is 30:40:30 respectively. And profit will be shared as per capital sharing ratio.<br />Partner’s Background<br />Partner - 1<br />Full Name:Juhi Patel<br />Age:21<br />Address:Near old Alpha,Junagadh-362001<br />Academic<br />Qualification:MBA (Marketing)<br />Role in Unit:He is a fresher with leadership quality who will look after marketing & trade setting<br />Experience:Taken training in the units like <br />Apex Industries Pvt. Ltd.<br />L & T cements &<br />Idea Cellular Ltd.<br />Financial<br />Contribution:30%<br />                                                                                       Partner=2<br />Full Name:Tej patel<br />Age:24<br />Address: Near old Alpha,Junagadh-362001<br />Academic<br />Qualification:B. Com, C.A.<br />Role in Unit:He will look after Accounting, Finance & Personnel<br />Experience:2 years of experience in managing accounting          & financing department at Park Avenue,                  Rajkot<br />Financial<br />Contribution:40%<br />Partner - 3<br />Full Name:Rameshbhai patel<br />Age:38<br />Address: Near old Alpha,Junagadh-362001<br />Academic<br />Qualification:MBA advance diploma in fashion designing<br />Role in Unit:He will look after production & designing<br />Experience:12 years experience in designing garments at Arvind Mills ltd.<br />Financial<br />Contribution:30%<br /> Product Detail<br />Raw Material :<br />The main raw materials required to produce the Jeans are Denim & cotton clothes, thread, button, rivet, zip, stickers.<br />Product & its use:<br />The popularity and the demand of Jeans is increasing day by day. Jeans have left behind the tailor made cloth. Consumer can wear Jeans casually with shirt or short shirts & T-shirts. Today, consumers wear Jeans even with blazers. Even in villages people have started wearing Jeans. Each & every class of people wear Jeans. So, we can say that it can be matched in any style and it can be changed your style.  <br />Sources of Raw Material<br />Generally, the raw material of Jeans is available from outside Gujarat.<br />Denim ClothMumbai<br />Cotton ClothAhmedabad<br />ThreadSirmour<br />ButtonDelhi<br />RivetDelhi<br />ZipDelhi<br />StickersAhmedabad<br />Market Potential<br />Marketing now-a-days, has become more important and complex than before. It is very essential to have a sound marketing system which includes a well selected distribution channel, well worded and attractive advertisement, reasonable as well as affordable price and above all a good quality product.<br />We are giving stress on all these four factors of marketing to achieve the greater market share. Because we know that if the marketing system is sound, 89% of problems will be solved automatically.<br />Quality<br />Our maximum emphasis is given on quality. The quality of our product is not only competitive because we know that mere competitiveness is not sufficient for viability. We always want to be one step ahead from others.<br />Price <br />The prices of our products are affordable to middleclass people who are our target market. Our firm understands “Value for money” very well and so “High sales at low margins” is our motto.<br />Distribution channel<br />For distribution our products to our valuable customers we have not to chosen any complex channel but we have adopted one level channel involving only one intermediary i.e. retailers. This is only to ensure the availability of our products on demand. Due to adoption of such type of channel we have been able to change reasonable price for our product as it is well known that every new addition in channel costs something extra to its ultimate customer.  <br />ManufacturerCustomers<br />   Money flow<br />RetailersProduct Flow<br />Advertising<br />Advertising is an important element of marketing mix, particularly of promotion mix. Advertising is a tool for communication. In other words we can say that is an art to create demand for product by making people aware and pursuing them to purchase the product.<br />As our firm is still in the infancy stage and the market is limited, it is not possible to bear the heavy expenditure on advertising. The product is advertised on a small scale through big wall painting and banners in different town and villages and in local newspapers and magazines.<br />Competition & Competitive Strategy<br />Jeans are high fashioned products which are continuously affected by the change in fashion, preference etc. So to stand with and face the competition in our field we have to continuously watch the changes going in our field. We introduced some new designs, new styles, high fashioned Jeans also in the market to overtake the competitors.<br />We remain continuously in touch with the fashion and style introduced in foreign markets so that we can give totally new styles & designs to home market.<br />Ours is a business of heavy competition, but we manage it by remaining in touch with the current trends in the fashion in our market area. Advertising is also a helping factor to face the competition and to maintain our market.<br />For us the local manufacturers are main competitors.  <br />Production Process<br />Production is the basic activity of all industrial units. All other activities revolve around this activity. The end product of the production activity is the creation of goods & services for the satisfaction of human wants. Production means to make finish product from the raw material & semi finished goods production. Process means how to produce the product with the use of man, machine, material & management.<br />OUTPUTSProductsServiceInformationProducts or ServicesINPUTSMaterialsLabourCapitalEnergyInformationRESOUCRCES<br />PRODUCTION FUNCTION<br />JRV Jeans Mill produces the Jeans in the following steps<br />     Cutting Process<br />Over lock<br />   Embroidery Work<br />    Stitching Process<br />  Fitting<br /> Washing<br />  Ironing<br />  Folding<br /> Packing<br />  Storing<br />FOLLOWING ARE THE STEPS OF THE PRODUCTION PROCESS OF THE JEANS<br />1. Cutting<br />JRV Jeans Mill uses computerized machine to cut the Jeans. First of all the designer give the programmed of all detail about Jeans, which include size & shape in computer. In the computer arrange the machine’s part for the cutting and the cutting man put 10 pieces of clothes under cutting table then he starts the machine to cut the entire cloth into needed pieces when all the pieces of cloth are ready for the over lock process.<br />2. Over Lock<br />The over lock knight the cloth border so that cloth can’t be scattered. In the process of over locking the machine operator over lock the needed pieces of cloth for stitching. <br />3. Embroidery Work<br />The JRV Jeans Mill use the computerized embroidery machine for the embroidery work. The designer gives the programme in computer and makes article design in cloths.<br />4. Stitching<br />The stitching of Jeans is divided into 20 parts of work division among the 20 machines. In this process the Jeans is to be stitched through 10 chain stitch machines and 10 simple stitch machines. The machines are arranged according to the stitching process. There are 3 departments of the Jeans stitching. Finally, Jeans go for the further production process.<br />5. Fitting<br />Fitting means to attach the button and make button holder through the machine in the Jeans. After if the Jeans go for the rivet attach in the machine and then they are ready for the acid wash.<br />6. Washing<br />After fitting the Jeans waterman wash the Jeans in acid and detergent powder in the washing machine and dry it in a drier and then Jeans are ready for the ironing.<br />7. Ironing<br />After washing all the Jeans ironed through big electric iron it is ready for the fold.<br />8. Folding<br />All the Jeans goes into the folding machine and the machine operator fold it according to the Jeans fold style and it goes for packaging.<br />9. Packaging & Storing<br />After folding the Jeans are packed into the poly bags and paper boxes then store into the finished goods storage.<br />From the above way the production process of the Jeans is finished.<br />Implementation Schedule<br />I take maximum one and half year to implement this type of project the time required for completing each activity of the project till commercial production is as follows:<br />No.ActivityCompletion Time1Preparation of Project1 month2Selection of a site2 months3Registration of SSI1 month4Availability of finance3 months5Construction of building7 month6Arrangement of machines & equipments1 month7Erection & commissioning including electrification1 month8Recruitment of personnel & Labour2 month<br />Basic & Presumptions<br />The proposed production of 30,000 per annum of Jeans in the 1 shift basic 9 hours in more than 300 working days in a year<br /> Shift:Single Shift<br /> Working hours:1) 10:00 A.M. to 7:00 P.M.<br />Break 1:00 P.M. to 2:00 P.M.<br />The units required 2 to 3 years to achieve full capacity utilization. The first company utilized 60% capacity.<br />The wages proposed in the project are as per privileged wage practice in the area.<br />Land value and construction cost has been taken on an average basis since it varies from place to place.<br />The cost of machinery & equipment has been proposed in the project after consulting the foreign machinery supplier. 50% machines are brought from Germany.<br />Sales Details<br />For the first year JRV Jeans Mill wants to achieve the target of selling 30,000 Jeans<br />The following are the configuration of the  Jeans:<br />ParticularSales QuotaPriceTotalJeans 1700020014,00,000Jeans 2800027522,00,000Jeans 31000032532,50,000Jeans 4500039019,50,000Total3000088,00,000<br />Financial Details<br />Details of Land & BuildingNo.ParticularsAreaRateTotal1Land2000 yards2254,50,0002Building2000 sq. ft.3507,00,000Total11,50,000<br />Details of Plant & MachineryNo.ParticularsQty.Amount (Rs)1Simple stitch machine102,00,0002Chain stitch machine64,80,0003Folding machine 11,50,0004Stain removing machine170,0005Washing machine23,00,0006Cutting machine12,00,0007Fitting machine11,00,0008Embroidery machine21,00,0009Iron125,00010Printing machine175,00011Over lock machine21,00,00012Logo-making machine125,00013Handling equipment-75,000Total19,00,000<br />Other Fixed AssetsNo.ParticularsQty.Amount (Rs)1Delivery Van25,00,0002Furniture-3,50,000Total19,00,000<br />Preliminary & pre operative expenses Rs. 5,00,000<br />Total Fixed AssetsNo.ParticularsAmount (Rs)1Land & Building11,50,0002Plant & Machinery19,00,0003Other Fixed Assets8,50,0004Preliminary & Pre-operative Exps.5,00,000Total44,00,000<br />Raw Material Requirements<br />No.ParticularsQty.RateMonthly3 MonthlyAnnually1Denim cloth4000 m602,40,0007,20,00028,80,0002Cotton cloth2000 m601,20,0003,60,00014,40,0003Thread-15,00045,0001,80,0004Button350000.724,50073,5002,94,0005Zip50004.824,00072,0002,88,0006Stickers350001.552,5001,57,5006,30,0007PocketingClothes500 m84,00012,00048,000Total4,80,00014,40,00057,60,000<br />UtilitiesNo.ParticularsQty.RateMonthly3 MonthlyAnnually1Electricity1000 KWH1010,00030,0001,20,0002Water--1,0003,00012,000Total11,00033,0001,32,000<br />Man Power Requirements<br />Top LevelNo.ParticularsNo. of EmployeesMonthlySalary3 MonthlySalaryYearly Salary1Manager210,00030,0001,20,0002Accountant15,00015,00060,0003Designers15,00015,00060,000Total20,00060,0002,40,000<br />Middle LevelNo.ParticularsNo. of EmployeesMonthlySalary3 MonthlySalaryYearly Salary1Salesman510,00030,0001,20,0002Clerk Typist11,5004,50018,0003Store keeper22,5007,50030,000Total14,00042,0001,68,000<br />Levels of ManagementLevels Of ManagementMonthly Salary 3 Monthly SalaryAnnual SalaryTop Level20,00060,0002,40,000Middle Level14,00042,0001,68,000Lower Level40,0001,20,0004,80,00074,0002,22,0008,88,000<br />Middle LevelNo.ParticularsNo. of Emp.MonthlySalary3 MonthlySalaryYearly Salary1Stain stitch machine Operator610,80032,40001,29,0002Simple stitch machine Operator1016,00048,0001,92,0003Folding machine Operator11,5004,50018,0004Washing machine Operator11,0003,00012,0005Cutting &  Fitting  machine Op.11,5004,50018,0006Embroidery machine Operator23,0009,00036,0007Over Lock machine Operator11,2003,60014,4008Printing machine Operator11,2003,60014,4009Iron Machine Operator11,0003,00012,00010Packing machine Operator11,0003,00012,00011Watchman21,8005,40021,600Total1,20,0004,80,000<br />Other Administrative Expenses<br />No.ParticularMonthly 3 Monthly Annually 1Telephone1,5004,50018,0002Postage & stampDuty5001,5006,0003Advertising & Marketing4,50013,50054,0004Consumer stores1,2003,60014,4005Miscellaneous3009003,600Total8,00024,00096,000<br />Total Working Capital<br />No.ParticularMonthly 3 Monthly Annually 1Raw Material4,80,0014,40,00057,60,0002Utility11,00033,0001,32,0003Wages & salary74,0002,22,0008,88,0004Administrative Exp.8,00024,00096,0005Other contingencies3,0009,00036,000Total5,76,00017,28,00069,12,000<br />Total Cost of Project<br />No.ParticularsAmt. (Rs.)1Total Fixed Capital44,00,00002Total Working Capital17,28,000Total61,28,000<br />Sources of Fund<br />No.ParticularsPercentageAmt. (Rs.)1Owned Capital   Miss.Juhi Patel (30%)   Mr. Tej Patel(40%)   Mr.Rameshbhai Patel (30%)60 %36,76,8002Borrowed Capital40 %24,51,200Total61,28,000<br />Interest<br />No.ParticularsPercentageAmt. (Rs.)1Owned 9.5 %3,49,2962Borrowed Loan (SBS)12.5 %3,06,400Total6,55,696<br />   <br />Depreciation<br />No.ParticularValueRateAmt.1Building11,50,00015%1,72,5002Machinery19,00,00025%4,75,0003Other Fixed Assets8,50,00012%1,02,000Total7,49,500<br />                                                                                                                         <br />No.ParticularValueRateAmt.1Building11,50,0005%57,5002Machinery19,00,0005%95,0003Other Fixed Assets8,50,0005%25,000Total1,77,500<br />   Maintenance & Repair<br />Cost of Production<br />No.ParticularsAmt. (Rs.)1Raw Material57,60,0002Utilities1,32,0003Manpower8,88,0004Repairs & Maintenance1,77,500Total69,57,500<br />ParticularsAmt. (Rs.)Amt. (Rs.)             Sales88,00,000(Less)   Variable Cost Raw Material57,60,000Utilities84,000Manpower4,44,000Admin. Exp.96,000Other contingencies36,00064,20,000Contribution23,80,000(Less) Fixed CostUtilities48,000Manpower4,44,000Depreciation7,49,500Maintenance & Repairs1,77,500Insurance20,000Int. on loan6,55,69620,94,696Profit Before Tax (PBT)2,85,304(Less) 35% Tax99,856Profit After Tax (PAT)1,85,448<br />Profitability Analysis<br />BEP Analysis<br />No.ParticularsAmt. (Rs.)1Sales88,00,0002Variable cost64,20,0003Fixed Cost20,94,696<br />PVR = Contribution x 100<br />Sales<br />=23,80,000 x 100=27.05%<br />88,00,000<br />BEP (in Rs.)=Fixed Cost<br />   PVR<br />=20,94,696=77,43,793 Rs.<br />  27.05%<br />BEP (in %)=Fixed costx utilized capacity<br />Contribution<br />=20,94,696x 60=52.81%<br />23,80,000<br />Ratio Analysis<br />Return on Investment<br />ROI=        EBIT          x 100<br />        Project Cost<br />=  9,53,000  x 100          61,28,000<br />=15.55%<br />EBIT=PBT +  TOTAL INTEREST<br />=2,85,304+6,55,696<br />=9,41,000<br />Net Profit Ratio<br />NPR=PAT x 100<br />Sales<br />=1,85,448      x 100          88,00,000<br />= 2.11%<br />Gross Profit Ratio<br />GPR=Gross Profit x 100<br />     Sales<br />=18,42,500  x 100<br />                                     88,00,000=20.94<br />Fixed Assets Turnover Ratio<br />F.A.T.R.=          Sales    .     <br /> Fixed Assets<br />=88,00,000<br />39,00,000<br />=2.26%<br />Cost Analysis<br />ParticularsAmt. (Rs.)Amt. (Rs.)Variable Cost     Raw MaterialDenim Cloth28,80,000Cotton Cloth14,40,000Thread1,80,000Button 2,94,000Zip2,88,000                Stickers 6,30,000                  Pocketing Clothes48,000      Other contingency36,00057,96,000Semi Variable CostUtilities1,32,000Administrative Exps.96,000Man Power (Lower Level)4,80,0007,08,000Fixed CostPreliminary & Pre-operative expenses written off50,000Man Power (Middle & Top level)4,08,000Interest on capital6,55,696Depreciation7,49,500Repairs & Maintenance1,77,50020,40,696Total Cost85,44,696<br />Risk Factors<br />1. Competition<br />There is always risk of competition from existing and potential units will be there. But to avoid this risk, cost reduction through minimum utilization of resources, use of good quality of raw materials, operating efficiency etc. will be helpful.<br />2. Adaptability to changes<br />Constant changes take place in the design and pattern of Jeans. Moreover changes in government policy and such other changes also affect the unit. The risk of remaining unable to adopt such changes is there but constant check of these aspects will be useful to avoid the risk. In short, the factor positioning risk is not much strong and thus securing the success for the unit.<br />Future Plan<br />Future plan is advance thinking of the future activity. Every company has ambition to achieve bright future. So, they are starting at present to achieve the future target. Future plan is a presentation of future activity and position. <br />From the above discussion JRV Jeans Mill has an ambition to achieve bright future. The following are future plans of JRV Jeans Mill.<br />JRV Jeans Mill has an ambition of leading company in the garment world.<br />Company want to launch other items like shirt, trouser, T-shirt and even under garment in future.<br />JRV Jeans Mill wants to have its retail stores all over India as well in abroad.<br />JRV Jeans Mill wants to do business abroad and compete with the company.<br />From the above we can say that JRV Jeans Mill wants to earn more & more prestige in the garment world.<br />Conclusion<br />Today’s generation is very much conscious about the garments. The consumption of new fashionable garments increase day by day especially Jeans.<br />A Jeans became popular garment in all over the world. So, the demand increases day by day and the fashion trend changes every day in jeans. At present take an example of world leading Jeans producing company Wrangles, Lee, GAP, Flying machine etc. have launched the range Jeans trend. So, the Jeans is a forever product in the garments. It indicate that the demand of the Jeans will increase in India as well as foreign culture the company has wide spread market.<br />It indicate future expansion and development of the project according to proposed project is consider to have better prospects.   <br />Name & Address of Machinery Suppliers<br />Mainly 50% of the machineries are purchased from Germany and remaining 50% are as follows:<br />1.M/s KRISHNA ENGINEERING WORKS<br />13, MIDC Estate,<br />Nagpur – 470002<br />Maharashtra<br />2. M/s SHAH ENGINEERING<br />55, Govt. Industrial Estate<br />Kandiwali (E)<br />Mumbai - 400006<br />Maharashtra<br />3. M/s GOPAL ENGINEERING WORKS<br />Dashmesh Nagar Gali No – 6<br />Gill Road,<br />Ludhiana<br />Punjab<br />4. M/s GOLDNE ENGINEERING INDUSTRY,<br />Naraina Industrial Area,<br />Phase - I<br />New Delhi<br />5.M/s Perfect Engineering<br />Link Road,<br />Ludhiana<br />Punjab<br />Name & Address of<br />Raw Material Suppliers<br />1.PASUPATI SPG &  WVG MILLS LTD.<br />Village Kheri Kata – Amb<br />Nahan, Distt. Sirmour (H.P.)<br />2.ARVIND MILLS LTD.<br />Ahmedabad<br />3.RADHE MILLS LTD.<br />40, Govt. Industrial Estate<br />Kandiwali (E)<br />Mumbai – 400006<br />Maharashtra<br />4. SHRINATH INDUSTRY PVT. LTD.<br />Naraina Industrial Area,<br />New Delhi<br />
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Product project report

  • 1. Declaration<br /> I, the undersigned JUHI R. VEKARIA student of MBA Sem-3 here by declare that the project work presented in this report is my own work and has been carried out under the supervision of Dr. RAJESH PATEL of N.R. Vekaria Institute Of Business Management STUDY<br />This work has not been previously submitted to any other university for any examination.<br />Date :Student signature<br />Place : Junagadh JUHI R. VEKARIA<br />Preface<br />Small is beautiful, so also, small scale industry. It is significant segment of the Indian economy & the objectives underlying its development are increase in the supply of manufactured goods, the promotion of capital formation, the development of indigenous entrepreneurial talents and skills and the creation of employment opportunities.<br />Students with initiative, creativity and Indian orientation have wonderful opportunities of becoming successful entrepreneurs of small scale business unit which have attained a lot of protection and encouragement from govt.<br />The subject “Entrepreneurship & Management of small scale business” adds further to the vocational guidance through the course of Master of Business Administration (M.B.A.).<br />Students enrolled in the course gain momentum to start their won business concerns after post graduation and they recognize their destination and difficulties by preparing this product project report. <br />Acknowledgement<br />I feel great pleasure to present this report of “Jeans”. I would like to heartily thanks to all the persons who have helped me in this report and give me adequate guidance and information for preparing this report.<br />I am thankful to Dr.Rajesh Patel the head of our business management department.<br />Date :Student signature<br />Place : Junagadh Juhi R. Vekaria<br />Index<br />Sr. No.ParticularsPage No.Introduction to SSI7Introduction to the product8Product’s look - At a Glance9Justification of Location11Management setup14Partner’s background15Product Details18Sources of raw material19Market potential20Competitors & competitive strategy23Production process24Implementation schedule29Basic & Presumptions30Sales Details31Details of Land & Building32Details of Plant & Machinery32Other fixed assets33Total Fixed assets33Raw material requirements34Utilities34Man power requirement35Other administrative Exps. 37Total working capital38Total cost of project38Sources of fund39Interest39Depreciation40Maintenance & Repairs40Cost of Production41Profitability Analysis42BEP Analysis43Ratio Analysis44Cost Analysis46Risk Factors48Future Plans49Conclusion50Name & Address of machinery suppliers51Name & address of Raw material suppliers53<br />Introduction to SSI<br />Cottage & small scale industry have flourished in India since the early times. Even today they are a principal source of income & employment and their product find ready market in the country as well as abroad.<br />Small scale industry in India roughly provides employment to about 4.4 million people and constitutes a large position of the country’s exports. The govt. of India is well aware of the importance of small scale industry in our economy and growth of small scale industry i.e. establishment of various SSIs. All India Boards that give technical, financial and other relevant guidance to small scale industries, other benefits & concessions. <br />Introduction to the product<br />Today Jeans are become popular product in the casual garment. The demand for Jeans is increasing day by day with the increase in population, with the adoption of western culture & industrial growth the demand for Jeans is increasing like anything. Jeans have left behind the tailor made cloth. It is been used all classes of people. Even in villages Jeans have become popular and people have started using it.<br />Jeans get a wider market in India. It has become very popular due to entry of the multinational companies in India and huge advertisement campaign. There is a large market in Gujarat as they Jeans factory has not developed in Gujarat as compared to Maharashtra & U.P. even in Mumbai.<br />So, JRV Jeans Mill has great opportunities to expand the market and can get heaviest rush of fashionable customers.<br />Project At a Glance<br />Name of the company<br />JRV Jeans MILLS<br />Address of the company<br />JRV Jeans MILLS, <br />G- 1875 Lodhika GIDC<br />Metoda<br />Rajkot (Gujarat)<br />Scale of the organization<br />Small scale industry<br />Type of firm<br />Partnership Firm<br />Nature of the product<br />Garments (Jeans)<br />Proposed name of the Brand<br />SWARA<br />Partners’ names<br />Juhi Patel<br />Tej Patel<br />Ramesh Patel<br />Estimated cost of the project<br />61,28,000<br />Market Area<br />Limited to Gujarat & Maharashtra<br />SSI Registration No.<br />Has been applied for<br />Justification of Location<br />Location of any industry plays a dominant role in the success or failure of the company. It has been rightly said that the mistake of selecting the wrong site cannot be corrected without heavy losses. Selecting a proper site for establishing SSI thus increase, as finance is a major constraint for a SSI unit.<br />The proposed location for the establishment of manufacturing facilities for my unit is GIDC, Metoda, Kalavad Road, Rajkot. Govt. has declared this area as an industrial area in past. Due to govt. incentives and initiatives, this are has developed very well with easy availability of infrastructure facilities.<br />The unit enjoys the following benefits of the location.<br />1. Raw Materials:<br />Raw materials is the basic constraint for all industries. Regular supply of raw material is very crucial to maintain the flow of production thus subsequently the cost of production can be reduced. Raw materials of Jeans like Denim cloth, cotton cloth, thread, button, rivet, zip, stickers etc. are obtained from Delhi, Mumbai, Ahmedabad and Sirmour. It takes time to purchase the raw materials so the order of raw materials is given in huge quantity so that there is smooth flow of production.<br />2. Labour Force<br /> Cheap & semi skilled labour force is easily available in large quantity in this area. Therefore, the availability of labour is convenient & economic.<br />3. Transportation <br />Transport facilities are mainly required for distribution of finished products to the retailers and wholesalers. The transportation cost is comparatively less as the market place is away at a distance of 13 kms.<br />4. Power<br /> Power is available from Gujarat Electricity Board (GEB) at subsidized rates, since the unit is located in an industrial area.<br />All the above mentioned factors are very crucial as they affect the cost of production as well as profitability and ultimately the success of the unit.<br />5. Other Locational Advantages<br />In addition to above mentioned advantages of GIDC, Metoda, Rajkot, there are several other benefits for having the project located at GIDC, Metoda, Rajkot.<br />Metoda is only 3 kms. Away from Rajkot hence unit is located at Metoda will avail all facilities available at Rajkot.<br />Metoda has got a full fledged telephone exchange making easier to contact anywhere in the world.<br />Management Setup<br />The three partners are entitled to take the post of directors. All the two partners i.e. Mr.Tej Patel, & Miss. Juhi Patel are the working parteners.<br />Miss. Juhi Patel will look after the marketing & trade setting as he has completed B.B.A. with marketing. Second partner Mr. Tej Patel shall handle accounting, financial and personnel as he has experience in same field and holds B.com and C.A. The third partner Mr. Ramesh patelshall handle production & designing as he has past experience of 2 years in same field and also holds MBA advance diploma in fashion designing.<br />The capital ratio of all three partners i.e. Miss.Juhi Mr. Tej& Mr. Rameshbhai is 30:40:30 respectively. And profit will be shared as per capital sharing ratio.<br />Partner’s Background<br />Partner - 1<br />Full Name:Juhi Patel<br />Age:21<br />Address:Near old Alpha,Junagadh-362001<br />Academic<br />Qualification:MBA (Marketing)<br />Role in Unit:He is a fresher with leadership quality who will look after marketing & trade setting<br />Experience:Taken training in the units like <br />Apex Industries Pvt. Ltd.<br />L & T cements &<br />Idea Cellular Ltd.<br />Financial<br />Contribution:30%<br /> Partner=2<br />Full Name:Tej patel<br />Age:24<br />Address: Near old Alpha,Junagadh-362001<br />Academic<br />Qualification:B. Com, C.A.<br />Role in Unit:He will look after Accounting, Finance & Personnel<br />Experience:2 years of experience in managing accounting & financing department at Park Avenue, Rajkot<br />Financial<br />Contribution:40%<br />Partner - 3<br />Full Name:Rameshbhai patel<br />Age:38<br />Address: Near old Alpha,Junagadh-362001<br />Academic<br />Qualification:MBA advance diploma in fashion designing<br />Role in Unit:He will look after production & designing<br />Experience:12 years experience in designing garments at Arvind Mills ltd.<br />Financial<br />Contribution:30%<br /> Product Detail<br />Raw Material :<br />The main raw materials required to produce the Jeans are Denim & cotton clothes, thread, button, rivet, zip, stickers.<br />Product & its use:<br />The popularity and the demand of Jeans is increasing day by day. Jeans have left behind the tailor made cloth. Consumer can wear Jeans casually with shirt or short shirts & T-shirts. Today, consumers wear Jeans even with blazers. Even in villages people have started wearing Jeans. Each & every class of people wear Jeans. So, we can say that it can be matched in any style and it can be changed your style. <br />Sources of Raw Material<br />Generally, the raw material of Jeans is available from outside Gujarat.<br />Denim ClothMumbai<br />Cotton ClothAhmedabad<br />ThreadSirmour<br />ButtonDelhi<br />RivetDelhi<br />ZipDelhi<br />StickersAhmedabad<br />Market Potential<br />Marketing now-a-days, has become more important and complex than before. It is very essential to have a sound marketing system which includes a well selected distribution channel, well worded and attractive advertisement, reasonable as well as affordable price and above all a good quality product.<br />We are giving stress on all these four factors of marketing to achieve the greater market share. Because we know that if the marketing system is sound, 89% of problems will be solved automatically.<br />Quality<br />Our maximum emphasis is given on quality. The quality of our product is not only competitive because we know that mere competitiveness is not sufficient for viability. We always want to be one step ahead from others.<br />Price <br />The prices of our products are affordable to middleclass people who are our target market. Our firm understands “Value for money” very well and so “High sales at low margins” is our motto.<br />Distribution channel<br />For distribution our products to our valuable customers we have not to chosen any complex channel but we have adopted one level channel involving only one intermediary i.e. retailers. This is only to ensure the availability of our products on demand. Due to adoption of such type of channel we have been able to change reasonable price for our product as it is well known that every new addition in channel costs something extra to its ultimate customer. <br />ManufacturerCustomers<br /> Money flow<br />RetailersProduct Flow<br />Advertising<br />Advertising is an important element of marketing mix, particularly of promotion mix. Advertising is a tool for communication. In other words we can say that is an art to create demand for product by making people aware and pursuing them to purchase the product.<br />As our firm is still in the infancy stage and the market is limited, it is not possible to bear the heavy expenditure on advertising. The product is advertised on a small scale through big wall painting and banners in different town and villages and in local newspapers and magazines.<br />Competition & Competitive Strategy<br />Jeans are high fashioned products which are continuously affected by the change in fashion, preference etc. So to stand with and face the competition in our field we have to continuously watch the changes going in our field. We introduced some new designs, new styles, high fashioned Jeans also in the market to overtake the competitors.<br />We remain continuously in touch with the fashion and style introduced in foreign markets so that we can give totally new styles & designs to home market.<br />Ours is a business of heavy competition, but we manage it by remaining in touch with the current trends in the fashion in our market area. Advertising is also a helping factor to face the competition and to maintain our market.<br />For us the local manufacturers are main competitors. <br />Production Process<br />Production is the basic activity of all industrial units. All other activities revolve around this activity. The end product of the production activity is the creation of goods & services for the satisfaction of human wants. Production means to make finish product from the raw material & semi finished goods production. Process means how to produce the product with the use of man, machine, material & management.<br />OUTPUTSProductsServiceInformationProducts or ServicesINPUTSMaterialsLabourCapitalEnergyInformationRESOUCRCES<br />PRODUCTION FUNCTION<br />JRV Jeans Mill produces the Jeans in the following steps<br /> Cutting Process<br />Over lock<br /> Embroidery Work<br /> Stitching Process<br /> Fitting<br /> Washing<br /> Ironing<br /> Folding<br /> Packing<br /> Storing<br />FOLLOWING ARE THE STEPS OF THE PRODUCTION PROCESS OF THE JEANS<br />1. Cutting<br />JRV Jeans Mill uses computerized machine to cut the Jeans. First of all the designer give the programmed of all detail about Jeans, which include size & shape in computer. In the computer arrange the machine’s part for the cutting and the cutting man put 10 pieces of clothes under cutting table then he starts the machine to cut the entire cloth into needed pieces when all the pieces of cloth are ready for the over lock process.<br />2. Over Lock<br />The over lock knight the cloth border so that cloth can’t be scattered. In the process of over locking the machine operator over lock the needed pieces of cloth for stitching. <br />3. Embroidery Work<br />The JRV Jeans Mill use the computerized embroidery machine for the embroidery work. The designer gives the programme in computer and makes article design in cloths.<br />4. Stitching<br />The stitching of Jeans is divided into 20 parts of work division among the 20 machines. In this process the Jeans is to be stitched through 10 chain stitch machines and 10 simple stitch machines. The machines are arranged according to the stitching process. There are 3 departments of the Jeans stitching. Finally, Jeans go for the further production process.<br />5. Fitting<br />Fitting means to attach the button and make button holder through the machine in the Jeans. After if the Jeans go for the rivet attach in the machine and then they are ready for the acid wash.<br />6. Washing<br />After fitting the Jeans waterman wash the Jeans in acid and detergent powder in the washing machine and dry it in a drier and then Jeans are ready for the ironing.<br />7. Ironing<br />After washing all the Jeans ironed through big electric iron it is ready for the fold.<br />8. Folding<br />All the Jeans goes into the folding machine and the machine operator fold it according to the Jeans fold style and it goes for packaging.<br />9. Packaging & Storing<br />After folding the Jeans are packed into the poly bags and paper boxes then store into the finished goods storage.<br />From the above way the production process of the Jeans is finished.<br />Implementation Schedule<br />I take maximum one and half year to implement this type of project the time required for completing each activity of the project till commercial production is as follows:<br />No.ActivityCompletion Time1Preparation of Project1 month2Selection of a site2 months3Registration of SSI1 month4Availability of finance3 months5Construction of building7 month6Arrangement of machines & equipments1 month7Erection & commissioning including electrification1 month8Recruitment of personnel & Labour2 month<br />Basic & Presumptions<br />The proposed production of 30,000 per annum of Jeans in the 1 shift basic 9 hours in more than 300 working days in a year<br /> Shift:Single Shift<br /> Working hours:1) 10:00 A.M. to 7:00 P.M.<br />Break 1:00 P.M. to 2:00 P.M.<br />The units required 2 to 3 years to achieve full capacity utilization. The first company utilized 60% capacity.<br />The wages proposed in the project are as per privileged wage practice in the area.<br />Land value and construction cost has been taken on an average basis since it varies from place to place.<br />The cost of machinery & equipment has been proposed in the project after consulting the foreign machinery supplier. 50% machines are brought from Germany.<br />Sales Details<br />For the first year JRV Jeans Mill wants to achieve the target of selling 30,000 Jeans<br />The following are the configuration of the Jeans:<br />ParticularSales QuotaPriceTotalJeans 1700020014,00,000Jeans 2800027522,00,000Jeans 31000032532,50,000Jeans 4500039019,50,000Total3000088,00,000<br />Financial Details<br />Details of Land & BuildingNo.ParticularsAreaRateTotal1Land2000 yards2254,50,0002Building2000 sq. ft.3507,00,000Total11,50,000<br />Details of Plant & MachineryNo.ParticularsQty.Amount (Rs)1Simple stitch machine102,00,0002Chain stitch machine64,80,0003Folding machine 11,50,0004Stain removing machine170,0005Washing machine23,00,0006Cutting machine12,00,0007Fitting machine11,00,0008Embroidery machine21,00,0009Iron125,00010Printing machine175,00011Over lock machine21,00,00012Logo-making machine125,00013Handling equipment-75,000Total19,00,000<br />Other Fixed AssetsNo.ParticularsQty.Amount (Rs)1Delivery Van25,00,0002Furniture-3,50,000Total19,00,000<br />Preliminary & pre operative expenses Rs. 5,00,000<br />Total Fixed AssetsNo.ParticularsAmount (Rs)1Land & Building11,50,0002Plant & Machinery19,00,0003Other Fixed Assets8,50,0004Preliminary & Pre-operative Exps.5,00,000Total44,00,000<br />Raw Material Requirements<br />No.ParticularsQty.RateMonthly3 MonthlyAnnually1Denim cloth4000 m602,40,0007,20,00028,80,0002Cotton cloth2000 m601,20,0003,60,00014,40,0003Thread-15,00045,0001,80,0004Button350000.724,50073,5002,94,0005Zip50004.824,00072,0002,88,0006Stickers350001.552,5001,57,5006,30,0007PocketingClothes500 m84,00012,00048,000Total4,80,00014,40,00057,60,000<br />UtilitiesNo.ParticularsQty.RateMonthly3 MonthlyAnnually1Electricity1000 KWH1010,00030,0001,20,0002Water--1,0003,00012,000Total11,00033,0001,32,000<br />Man Power Requirements<br />Top LevelNo.ParticularsNo. of EmployeesMonthlySalary3 MonthlySalaryYearly Salary1Manager210,00030,0001,20,0002Accountant15,00015,00060,0003Designers15,00015,00060,000Total20,00060,0002,40,000<br />Middle LevelNo.ParticularsNo. of EmployeesMonthlySalary3 MonthlySalaryYearly Salary1Salesman510,00030,0001,20,0002Clerk Typist11,5004,50018,0003Store keeper22,5007,50030,000Total14,00042,0001,68,000<br />Levels of ManagementLevels Of ManagementMonthly Salary 3 Monthly SalaryAnnual SalaryTop Level20,00060,0002,40,000Middle Level14,00042,0001,68,000Lower Level40,0001,20,0004,80,00074,0002,22,0008,88,000<br />Middle LevelNo.ParticularsNo. of Emp.MonthlySalary3 MonthlySalaryYearly Salary1Stain stitch machine Operator610,80032,40001,29,0002Simple stitch machine Operator1016,00048,0001,92,0003Folding machine Operator11,5004,50018,0004Washing machine Operator11,0003,00012,0005Cutting & Fitting machine Op.11,5004,50018,0006Embroidery machine Operator23,0009,00036,0007Over Lock machine Operator11,2003,60014,4008Printing machine Operator11,2003,60014,4009Iron Machine Operator11,0003,00012,00010Packing machine Operator11,0003,00012,00011Watchman21,8005,40021,600Total1,20,0004,80,000<br />Other Administrative Expenses<br />No.ParticularMonthly 3 Monthly Annually 1Telephone1,5004,50018,0002Postage & stampDuty5001,5006,0003Advertising & Marketing4,50013,50054,0004Consumer stores1,2003,60014,4005Miscellaneous3009003,600Total8,00024,00096,000<br />Total Working Capital<br />No.ParticularMonthly 3 Monthly Annually 1Raw Material4,80,0014,40,00057,60,0002Utility11,00033,0001,32,0003Wages & salary74,0002,22,0008,88,0004Administrative Exp.8,00024,00096,0005Other contingencies3,0009,00036,000Total5,76,00017,28,00069,12,000<br />Total Cost of Project<br />No.ParticularsAmt. (Rs.)1Total Fixed Capital44,00,00002Total Working Capital17,28,000Total61,28,000<br />Sources of Fund<br />No.ParticularsPercentageAmt. (Rs.)1Owned Capital Miss.Juhi Patel (30%) Mr. Tej Patel(40%) Mr.Rameshbhai Patel (30%)60 %36,76,8002Borrowed Capital40 %24,51,200Total61,28,000<br />Interest<br />No.ParticularsPercentageAmt. (Rs.)1Owned 9.5 %3,49,2962Borrowed Loan (SBS)12.5 %3,06,400Total6,55,696<br /> <br />Depreciation<br />No.ParticularValueRateAmt.1Building11,50,00015%1,72,5002Machinery19,00,00025%4,75,0003Other Fixed Assets8,50,00012%1,02,000Total7,49,500<br /> <br />No.ParticularValueRateAmt.1Building11,50,0005%57,5002Machinery19,00,0005%95,0003Other Fixed Assets8,50,0005%25,000Total1,77,500<br /> Maintenance & Repair<br />Cost of Production<br />No.ParticularsAmt. (Rs.)1Raw Material57,60,0002Utilities1,32,0003Manpower8,88,0004Repairs & Maintenance1,77,500Total69,57,500<br />ParticularsAmt. (Rs.)Amt. (Rs.) Sales88,00,000(Less) Variable Cost Raw Material57,60,000Utilities84,000Manpower4,44,000Admin. Exp.96,000Other contingencies36,00064,20,000Contribution23,80,000(Less) Fixed CostUtilities48,000Manpower4,44,000Depreciation7,49,500Maintenance & Repairs1,77,500Insurance20,000Int. on loan6,55,69620,94,696Profit Before Tax (PBT)2,85,304(Less) 35% Tax99,856Profit After Tax (PAT)1,85,448<br />Profitability Analysis<br />BEP Analysis<br />No.ParticularsAmt. (Rs.)1Sales88,00,0002Variable cost64,20,0003Fixed Cost20,94,696<br />PVR = Contribution x 100<br />Sales<br />=23,80,000 x 100=27.05%<br />88,00,000<br />BEP (in Rs.)=Fixed Cost<br /> PVR<br />=20,94,696=77,43,793 Rs.<br /> 27.05%<br />BEP (in %)=Fixed costx utilized capacity<br />Contribution<br />=20,94,696x 60=52.81%<br />23,80,000<br />Ratio Analysis<br />Return on Investment<br />ROI= EBIT x 100<br /> Project Cost<br />= 9,53,000 x 100 61,28,000<br />=15.55%<br />EBIT=PBT + TOTAL INTEREST<br />=2,85,304+6,55,696<br />=9,41,000<br />Net Profit Ratio<br />NPR=PAT x 100<br />Sales<br />=1,85,448 x 100 88,00,000<br />= 2.11%<br />Gross Profit Ratio<br />GPR=Gross Profit x 100<br /> Sales<br />=18,42,500 x 100<br /> 88,00,000=20.94<br />Fixed Assets Turnover Ratio<br />F.A.T.R.= Sales . <br /> Fixed Assets<br />=88,00,000<br />39,00,000<br />=2.26%<br />Cost Analysis<br />ParticularsAmt. (Rs.)Amt. (Rs.)Variable Cost Raw MaterialDenim Cloth28,80,000Cotton Cloth14,40,000Thread1,80,000Button 2,94,000Zip2,88,000 Stickers 6,30,000 Pocketing Clothes48,000 Other contingency36,00057,96,000Semi Variable CostUtilities1,32,000Administrative Exps.96,000Man Power (Lower Level)4,80,0007,08,000Fixed CostPreliminary & Pre-operative expenses written off50,000Man Power (Middle & Top level)4,08,000Interest on capital6,55,696Depreciation7,49,500Repairs & Maintenance1,77,50020,40,696Total Cost85,44,696<br />Risk Factors<br />1. Competition<br />There is always risk of competition from existing and potential units will be there. But to avoid this risk, cost reduction through minimum utilization of resources, use of good quality of raw materials, operating efficiency etc. will be helpful.<br />2. Adaptability to changes<br />Constant changes take place in the design and pattern of Jeans. Moreover changes in government policy and such other changes also affect the unit. The risk of remaining unable to adopt such changes is there but constant check of these aspects will be useful to avoid the risk. In short, the factor positioning risk is not much strong and thus securing the success for the unit.<br />Future Plan<br />Future plan is advance thinking of the future activity. Every company has ambition to achieve bright future. So, they are starting at present to achieve the future target. Future plan is a presentation of future activity and position. <br />From the above discussion JRV Jeans Mill has an ambition to achieve bright future. The following are future plans of JRV Jeans Mill.<br />JRV Jeans Mill has an ambition of leading company in the garment world.<br />Company want to launch other items like shirt, trouser, T-shirt and even under garment in future.<br />JRV Jeans Mill wants to have its retail stores all over India as well in abroad.<br />JRV Jeans Mill wants to do business abroad and compete with the company.<br />From the above we can say that JRV Jeans Mill wants to earn more & more prestige in the garment world.<br />Conclusion<br />Today’s generation is very much conscious about the garments. The consumption of new fashionable garments increase day by day especially Jeans.<br />A Jeans became popular garment in all over the world. So, the demand increases day by day and the fashion trend changes every day in jeans. At present take an example of world leading Jeans producing company Wrangles, Lee, GAP, Flying machine etc. have launched the range Jeans trend. So, the Jeans is a forever product in the garments. It indicate that the demand of the Jeans will increase in India as well as foreign culture the company has wide spread market.<br />It indicate future expansion and development of the project according to proposed project is consider to have better prospects. <br />Name & Address of Machinery Suppliers<br />Mainly 50% of the machineries are purchased from Germany and remaining 50% are as follows:<br />1.M/s KRISHNA ENGINEERING WORKS<br />13, MIDC Estate,<br />Nagpur – 470002<br />Maharashtra<br />2. M/s SHAH ENGINEERING<br />55, Govt. Industrial Estate<br />Kandiwali (E)<br />Mumbai - 400006<br />Maharashtra<br />3. M/s GOPAL ENGINEERING WORKS<br />Dashmesh Nagar Gali No – 6<br />Gill Road,<br />Ludhiana<br />Punjab<br />4. M/s GOLDNE ENGINEERING INDUSTRY,<br />Naraina Industrial Area,<br />Phase - I<br />New Delhi<br />5.M/s Perfect Engineering<br />Link Road,<br />Ludhiana<br />Punjab<br />Name & Address of<br />Raw Material Suppliers<br />1.PASUPATI SPG & WVG MILLS LTD.<br />Village Kheri Kata – Amb<br />Nahan, Distt. Sirmour (H.P.)<br />2.ARVIND MILLS LTD.<br />Ahmedabad<br />3.RADHE MILLS LTD.<br />40, Govt. Industrial Estate<br />Kandiwali (E)<br />Mumbai – 400006<br />Maharashtra<br />4. SHRINATH INDUSTRY PVT. LTD.<br />Naraina Industrial Area,<br />New Delhi<br />