PROJET

REPORT

PROJECT AT A GLANCE

1. Name of the Unit : Pitambari Collection

2. Location : Opp ADMS E BIKES, near TVS Showroom,
 Khuti Road, Hawai Nagar
3. Project : Readymade and Designer Garments Reselling
4. Type : Retail Business
5. Management : Proprietary
6. Category : All Clothing (Men,Women & Children)
7. Promoter : Kumar Gaurav
8. Total Project Cost : 14 Lakh
9. Fixed Capital : 6 Lakh
10. Working Capital : 8 Lakh
11. Equity(28.5 %) : 3.99 Lakh
12. Loan Requirement(71.5%) : 10.01 Lakh
13. Family Income : 1,00,000 p.m.
14. Employment : 4 Nos

Promoter BIO – DATA

1. Full name and address : Kumar Gaurav

2. Address : Hno 114, Jamuna Niwas , New

Pokhartoli, Doranda,Ranchi
834002

3. Experience : 5 years experience as

Business Analyst(IT)
4. Name of Father : Manoj Kumar Singh
5. Age : 31 year
6. Sex : Male
7. Nationality : Indian
8. Category : General
9. Academic Qualification : Graduate
10. Functional Responsibilities in the unit : Proprietor
1. Introduction

After food and shelter, clothing is the most essential human need. It
was earlier to wear individually tailored dresses, and then it became fashion to
wear readymade garments. It is easier to go to a shop and select what she/he
likes and wear it right away. During readymade era, there is no need to go to a
shop to select a shirt piece and go to another shop to get it tailored and wait for
the clothing. Readymade garments are bulk manufactured and hence it is cheaper
than individually tailored ones. But now people find that, many people wear the
same clothing, since readymade dresses are made alike. Now fashion conscious
people started turned to designer garments. By realizing the potential of both
areas, this project aims to establish a readymade garments as well as an designer
garments unit for the fashion sensitive people.

The readymade garment industry is on of the channel of India’s textile

industry which dates back to the middle of 19 th century. The textile industry is a
leading industry in the country. There are mainly two types of clothing, one is
natural and the other is synthetic. Cotton, Silk, Wool etc. comes under natural
clothing and Polyester, Nylon etc. comes under synthetic clothing.

The overall demand of clothing is gone up since the increase in number

of middle and upper middle class people who are very keen in their dressing
habits. Compared to any other state in the country, People of Ranchi purchases
more clothing for their personal needs. The increasing level of travel habits of the
people has in turn created demand for occasional and seasonal clothing. The
development in all spheres of life in general especially in educational, industrial
and commercial sectors made the demand for garments manifold which can be
evident from the fact that there are a lot of garment shops in every nuke and
corner of even remote places. Very big players are setting up garment shops in
almost every town. Being understanding the field for a long time, the promoter
studied various aspects of the industry and now confidently came forward to
establish a readymate garments shop. Moreover he is setting up a designer
garment shop, which is a value addition to the readymade industry.

2. LOCATION :
Retail Shop Unit – Opposite ADMS E BIKES, near TVS Showroom,
Khuti Road, Hawai Nagar
The unit will be set up in a rented building. It is made available on rented basis and
the rent per month is Rs. 20,000. We have already considered the suitability of the
location. The Power, Communication facility etc are available. Hence without
doubt one can say that the site selected is very suitable for these types of units.

3. MANPOWER REQUIREMENT :

The enterprise needs 4 employees to start with, as detailed below:

Sr.No. Designation of Employees Monthly Number of
Annual cost ₹.
Salary ₹ employees required

1 Manager 8,000 1 96,000

2 Sales Executive 6,000 3 216000

Total 4 312000

4. IMPLEMENTATION SCHEDULE :
Reasonable planning can help complete the project in about 4 months.
Sr. No. Activity Time Required (in weeks)

1 Acquisition of premises 2

2 Furniture & Interior Decoration 2

3 Procurement of Finished Clothing 2

4 Recruitment of required manpower 2

 Total time required (some activities shall run
8
concurrently)

5. FINANCIAL ASPECTS :

Sr. No. Particulars ₹

A. Fixed Capital

1. Rent Deposits @20,000 p.m for 18 month 3,60,000

2. Storage Racks, Furniture (Table,Chair), Lighting, Fittings, Fans etc 1,80,000

3. Computer & Printer, Barcode reader, Wifi, 60,000

Total 6,00,000

B. Working Capital

1. Salary (1 Manager-8,000p.m. , 3 Sales Executive-6,000 p.m.) 3,12,000

Water, Repair, Telephone, Stationary,Miscellaneous Expenses etc (3,000

2. 36,000
p.m. approx.)

3. Electricity (3,000 p.m. approx.) 36000

4. Readymade Garments/Clothing Stock (Men, Women & Children) 4,16,000

Total 8,00,000

C. Total Capital Requirement (A+B) 14,00,000

6. MEANS OF FINANCE :

Sr. No. Particulars ₹ in Lacs

1 Promoter's contribution (28.5%) 3.99

 2 Bank Finance (71.5%) 10.01

Total 14

7. REPAYMENT CHART OF TERM LOAN @13%

Particular (₹) Year-1 (₹) Year-2 (₹) Year-3 (₹) Year-4 (₹) Year-5 (₹)

Opening Balance 10,00,000 8,00,000 6,00,000 4,00,000 2,00,000

Principal Repayment
2,00,000 2,00,000 2,00,000 2,00,000 2,00,000
Per Year

Closing Balance 8,00,000 6,00,000 4,00,000 2,00,000 0

Interest @13% 1,30,000 1,04,000 78,000 52,000 26,000

Total Repayment Per

3,30,000 3,04,000 2,78,000 2,52,000 2,26,000
Year

8. PROJECTED PROFITABILITY STATEMENT

Sr. No. Particulars ₹

A. Pocurement of Garments

1. Women (Qty 2000 * ₹300) 6,00,000

2. Children (Qty 3000 * ₹80) 2,40,000

3. Men (Qty 2000 * ₹250) 5,00,000

Total * (It includes both 50%Cash & 50%Credit Purchases) 13,40,000*

B. Sale of Garments

1. Women (Qty 2000 * ₹600) 12,00,000

2. Children (Qty 3000 * ₹160) 4,80,000

3. Men (Qty 2000 * ₹500) 10,00,000

 Total 26,80,000

C. Net Profit From Sale Proceeds (B-A) 13,40,000

*QTY and PRICE taken above is average from a variety of Products

(Year-to-Year Increase in sale is assume to be @10%)

Sr.
Particulrs Year-1 (₹) Year-2 (₹) Year-3 (₹) Year-4 (₹) Year-5 (₹)
No.

A. Sale Profit from Sale Proceeds 13,40,000 14,74,000 16,21,400 17,83,540 19,61,894

B. Expenses

Rent 2,40,000 2,40,000 2,40,000 2,40,000 2,40,000

Salary 2,40,000 2,40,000 2,40,000 2,40,000 2,40,000

Bank Loan Repayment with

3,30,000 3,04,000 2,78,000 2,52,000 2,26,000
Interest

Miscellaneous Expenses 36,000 36,000 36,000 36,000 36,000

Electricity Expenses 72,000 72,000 72,000 72,000 72,000

Depriciation on Computer @25%

15,000 15,000 15,000 15,000 0
by SLM method

Depriciation on Furniture @10%

10,000 10,000 10,000 10,000 10,000
by SLM method

C. Net Profit (A-B) 3,97,000 5,57,000 7,30,400 9,18,540 11,37,894

9. BREAK-EVEN ANALYSIS (Based on 1st year)

Particulars ₹

Sale 26,80,000

Less - Variable Cost

19,28,000

= Contribution 7,52,000

Fixed cost 3,55,000

 100
Break-Even Point ¿ cost × 47.20%
contribution

The Project is economically viable and technically feasible. The project is

submitted for approval.

Signature of Promoter