Universal textile industries

INDEX:Sr no. Content Page No.

1. Indusrial Profile 32. Entrepreneurs Profile 63. Scope of a Project Report 84. Contents of a Project Report 9 5. Proforma of a Project Report 116. Conclusion 22Industrial Profile:History:The term 'Textile' is a Latin word originating from the word 'texere' which means 'to weave' Textile refers to a flexible material comprising of a network of natural or artificial fibers, known as yarn. Textiles are formed by weaving, knitting, crocheting, knotting and pressing fibers together. Textile Museum is that specialized category of museum which primarily preserves different types of textile and textile products

Introduction:The textile industry in India is substantial, and largely diversified. It is hard to cover all its aspects even within hour-long presentation, however, research team of Fibre2fashion.com has attempted to gather significant pieces of massively complicated puzzle of this industry.

The Indian textile industry roots thousands of years back. After, the European industry insurrection, Indian textile sector also witnessed considerable development in industrial aspects. Textile industry plays an important role in the terms of revenue generation in Indian economy. The significance of the textile industry is also due to its contribution in the industrial production, employment. Currently, it is the second largest employment provider after agriculture and provides employment to more than 30mn people.We see the textile industry on the basis of city, state, national and international level.

City level

Surat, an emerging city in the state of Gujarat, is known as the textile city of Gujarat. And, the epithet is perfectly suited to the city. The textile industry is one of the oldest and the most widespread industries in Surat. A major part of the citys population is associated with the textile industry. The textile industry in Surat is mainly engaged in the activities of yarn production, weaving, processing as well as embroidery. Surat is well known for its synthetic products market. It is mainly engaged in the production and trading of synthetic textile products.Major markets of SuratThe main market for Surats textile products are India and other Asian countries. Around 90% of polyester used in India comes from Surat. However, international demand for its products is not very significant. The Middle East is the major export market for Surats textile products. According to experts, more improvisation in the quality is required to cater to the demands of the international market.Growth of SuratThe Surat textile industry has grown considerably over time. As per recent figures, textile production in Surat has grown by 10% in the last 5 years, while the market for embroidery has grown from an almost negligible amount to around Rs. 30000 million over the same period. State level

Gujarat has a large flourishing textile industry which contributes to the arts and crafts of India. The textiles have a large variety to offer to the end consumers. It mainly depends on factors like varied raw materials, combination of yarns and effective use of traditional techniques. The enriched range of textiles owes to the people of different communities, castes, tribes and regions of the state, who have kept the age old tradition alive. The State has recorded a major increase in cotton production amounting to 9.3 million bales in 2006-07 (35% of total national production)Surat is Indias strongest base for synthetic fabrics

Contributes 30% of fabric production (organised sector) and 40% of art silk fabric (Surat) production in India. Over 95% of power loom machinery manufacturers of India are in Gujarat. Gujarat accounts for 12% of India's textile exports. Export items include raw cotton, synthetic products, denim, processed andtexturisedyarn,grey wovenand knittedfabrics, non-woven fabrics, bed linen and garments. ExportdestinationsincludeEurope, MiddleEast, China, Thailand, Turkey, USA, Sri Lanka, Bangladesh, Brazil National level

Until the economic liberalization of Indian economy, the India Textile Industry was predominantly unorganized industry. The opening up of Indian economy post 1990s led to a stupendous growth of this industry.

India Textile Industry is one of the largest textile industries in the world. Today, Indian economy is largely dependent on textile manufacturing and exports. India earns around 27% of the foreign exchange from exports of textiles. Further, India Textile Industry contributes about 14% of the total industrial production of India. Furthermore, its contribution to the gross domestic product of India is around 3% and the numbers are steadily increasing. Around 8% of the total excise revenue collection is contributed by the textile industry. India Textile Industry involves around 35 million workers directly and it accounts for 21% of the total employment generated in the economy. Entrepreneurs Profile:

Company Name : Universal Textile IndustriesState/City : Gujarat/ SuratCompany Address : L-14-15, Tulsi Market, B/H. Rushabh Petrol Pump,

Ring Road, Surat -395 002Company Phone : 0261-3995411Contact Person : Mahesh B. Patel (Proprietor)Conatact Phone : 98251 45411Industry : Textile

Business Nature : Manufacture.

Funded Year : 1990

Number of Employee : 50~60Our entrepreneur is Mahesh B. Patel which is the proprietor of the UNIVERSAL TEXTILE INDUSTRIES. He was born on 7th January, 1965 at Charkhdiya. He was passed only higher secondary in saverkundla. He was interested in textile so he started manufacture business of gray cloth in 1990. And he gives the name of his business UNIVERSAL TEXTILE INDUSTRIES at Surat. He started his business to taken loan from the GSFC[Gujarat State Financial Corporation]. When he started his business in 1990, he had only 24 Power Looms Machine for the Production of the gray cloth. And after some year he was purchased 12 Power Looms Machine in, 1997. In this year gray cloth demand is continuously increase in the market, So its production is also increase and he gain more profit. In Surat, textile business is very much popular compare to the other business. So the competition is more increased between the gray cloths manufactures in the local market. In 2004, he was purchased 28 Power Looms Machine. Now the present year i.e. 2009 the total Power Looms Machine is 64 in UNIVERSAL TEXTILE INDUSTRES The Company is presently having 3024 spindles with 3,200 meter per day spinning capacity in carded yarn.In future, he purchase the 16 Power looms machines of gray cloth So, the production of gray cloth is increase. And he gains more and more profit in textile business; therefore he became successful entrepreneur in the textile business.

Scope of a Project Report:

Project report includes information on the following aspects:

1. Economic Aspects:

It should present analysis of the market for the product to be manufactured. Market analysis basically pertains to the following issues: (a) How big is the present market? (b) How much is it likely to grow?

In textile market, the present value of Gray Cloth is more. So, that the present Gray Cloth textile market are excellent compare to the past year.

2. Technical Aspects:

The appropriate report should give details about the technology needed, equipment and machinery required and the sources of availability.

In the textile industry mainly two types of technology for the production power looms and water jet but in this textile it use power looms technology for the production. If any type of equipment is damaged then it purchase for their requirement.

3. Financial Aspects:

The report should indicate the total investment required including sources of finance and the entrepreneurs contribution.

This textile is investing its capital in Tamilnad Mercantile Co. Op. Bank for the CC Loan (working capital).

4. Production Aspects:

It should contain a description of the product selected for manufacture and the reasons for such selection.

The product of his textile is Gray Cloth. And the reason for the selection of this product is because of high demand of the market.

5. Managerial Aspects:

The report should contain qualification and experience of the persons to be put on the management of the job. There is no need of any type of qualification or experience for doing the work in textile industry.Contents of a Project Report:

The proprietor of UNIVERSAL TEXTILE INDUSTRES is not making any new plan, but he thought to expand in existing project.1. Objective and Scope of the Report: In Current, he has 64 power looms machine but in future, he thinking to purchase more16 power looms machine for the production of gray cloth. 2. Product Characteristics: UNIVERSAL TEXTILE is produces Gray Cloth & its quality are Polyester to Polyester. This Gray cloth is use for the dying & printing. It use Yarn for the raw material and the quality of the yarn is 60 grams. 3. Market position and trends: UNIVERSAL TEXTILE is not doing any kind of import and export of Gray cloth but it is interested to deliver the Gray cloth in the local market rather than in national or international market. In present, the position of the local market is superior to the other market. In this textile the price of Gray cloth per meter is Rs. 1.75. 4. Raw materials: In present, company use yarn for the raw material and its quality are 60 grams. In current market, the value of yarn is Rs. 115. He expand in machinery so requirement of the raw material increase in coming years. 5. Manufacture: Universal Textile is use power looms for the production but in future the proprietor of this textile is thinking about the use of Water Jet machine for the production of Gray cloth.6. Plant and Machinery: This textile is expanding production in existing company so there is no trouble in future for getting water and power supply. Now a days company have 64 power looms but in future he thinking to purchase more16 power looms machine for the production of gray cloth. 7. Land and Building: In Present, Jay Textile is situated in 72 X 100 Square Feet. So the Proprietor of this textile is increase in their existing building construction but not in the area of Land.8. Financial Implications: In future he increases in the machinery so the investment of this company become more. Because of extension in machinery so the requirement of manpower is more and he needed the more working capital.

9. Marketing Channels: Jay Textile is sale the gray cloth directly through the broker.10. Personnel: Universal Textile is expanding their manufacturing process so they required more Skill Labour for the further Production.Proforma of a Project Report:

We give here a proforma of the project report.

Proforma for a project Scheme for the Manufacture of GRAY CLOTH.1. Introduction

UNIVERSAL TEXTILE(a) ScopeThe objective of UNIVERSAL TEXTILE is to supply cloth to the always famed for quality, punctual delivery and as well as customer consciousness. In the future gray cloth demand is increase so that he thinking to buy more 16 power looms machine for the grows in production. And he also thinks to use new technology for the further production of gray cloth. (b) Product

Product of the Company: Gray ClothQuality: Polyester X PolyesterRaw Material : Yarn- 50 x 24 Semidal, P X PQuality Weight: 7.00 Kgs per 100 meters(c) Process

(d) MarketabilityThe UNIVERSAL TEXTILE is situated in Surat. So its gray cloth demand is around the local market of Surat. And the use of this gray cloth is for the dyining and printing the sarees.(e) Location

Factory :

l-14-15,TULSI MARKET(f) Sources of finance/ repayment schedule:

Long Term Funds:

Capital: This company is proprietor base company so all capital was brought by the proprietor. Capital is invested in fixed assets, investment, loan & advances, and bank loan.

Secured Loan:

This company is taken secured loan from the Tamilnad Mercantile Co. Op. Bank for the CC Loan (working capital).In this loan interest is not concerned. But if you use some amount of loan then interest is concerned on this amount. And the rate of interest is 14% on loan. Unsecured Loan:

This type of loan is taken from the proprietors relatives.

2. Scheme: (For Actual Year)ParticularsAmount.(Rs.)

(2007-08)Amount (Rs.)(2008-09)

(a) Land and Building: 74,85074,850

(b) Machinery and Equipment1,44,5601,22,876

(c) Testing Equipment------

(d) Other Fixed Investment

(i)Packing and Forwarding Charges84,0001,20,000

(ii)Electrification and Installation Charges------

(iii)Cost of Tools/Jigs/Fixtures20,87679,176

(iv)Cost of Office Equipment1,20,0002,40,000

(e) Total Non-recuuring expenditure:2,24,8764,39,176

(a) + (b) + (c) + (d)

(f) Staff and Labour:

(i)Indirect Labour nos. and wages------

(ii)Direct Labour nos. and wages22,68,97615,50,575

Total Salaries [(i) + (ii)]22,68,97615,50,575

(g) Raw material and Consumables:

(i)Indegenous52,80,00067,20,000

(ii)Imported------

Toatl: Rs.52,80,00067,20,000

(h) Other items of expenditure:

(i)Power and Water Charges11,57,05111,82,081

(ii)Advertising and Travelling ------

(iii)Transport61,05570,855

(iv)Commissionto Distributers/Agents------

(i) Total recurring expenditure:

(f) + (g) + (h)87,67,08295,23,511

(j) Working capital for 3 months 3 X recurring expenditure :21,91,77023,80,878

(k) Total investment required:

(i)Non-recurring expenditure2,24,8764,39,176

(ii) Working capital for 3 months21,91,77023,80,878

Total:24,16,64628,20,054

(l) Total Cost of Production:

(i) Total recurring expenditure87,67,08295,23,511

(ii)Depriciation on Machinery and Equipment21,68418,431

(iii) Depriciation on Building7,4857,485

(iv)Maintenance Charges9,4975,388

(v)Interest on Total Investment---10,274

(vi)Welfare For Staff 6,0009,600

(vii)Office Stationery and Postage, etc.3,1183,418

Total:88,14,86695,78,107

(m) Profit and Loss Account:

(i)By Sale of ___ (qty.) of ____ @ Rs. Ex- Factory exclusive of applicable taxes88,47,00896,46,008

(ii)Cost of Production88,14,86695,78,107

(iii)Profit (i) - (ii) approx. Percentage of the

total Capital Employed32,142 67,901

Total:1,76,94,0161,92,92,016

Scheme: (for three year Predict)

ParticularsAmount.(Rs.)(2009-10)Amount.(Rs.)(2010-11)Amount.(Rs.)(2011-12)

(a) Land and Building: 74,85074,85074,850

(b) Machinery and Equipment1,04,4461,00,5461,20,796

(c) Testing Equipment ---------

(d) Other Fixed Investment

(i)Packing and ForwardingCharges1,80,0001,98,0002,16,000

(ii)Electrification and Installation

Charges------ ---

(iii)Cost of Tools/Jigs/Fixtures1,49,4691,94,4692,54,195

(iv)Cost of Office Equipment3,00,0003,48,0004,20,000

(e) Total Non-recuuring expenditure:6,29,4699,15,86510,85,841

(b) + (b) + (c) + (d)

(f) Staff and Labour:

(i)Indirect Labour nos. and

wages---------

(ii)Direct Labour nos. and wages18,25,33619,15,56520,61,190

Total Salaries [(i) + (ii)]18,25,33619,15,56520,61,190

(g) Raw material and Consumables:

(i)Indegenous 96,60,0001,11,36,0001,25,28,000

(ii)Imported---------

Toatl: Rs. 96,60,0001,11,36,0001,25,28,000

(h) Other items of expenditure:

(i)Power and Water Charges16,04,30717,15,22519,24,307

(ii)Advertising and Travelling ---------

(iii)Transport89,36599,8001,17,865

(iv)Commission to Distributers/Agents ---------

(i)Total recurring expenditure:

(f) + (g) + (h)1,31,79,0081,48,66,5901,66,31,362

(j)Working capital for 3 months 3 X recurring expenditure32,94,75237,16,64841,57,840

(k) Total investment required:

(i)Non-recurring expenditure6,29,4699,15,86510,85,841

(ii) Working capital for 3 months32,94,75237,16,64841,57,840

Total:39,24,22146,32,51352,43,681

(l) Total Cost of Production:

(i) Total recurring expenditure1,31,79,0081,48,66,5901,66,31,362

(ii)Depriciation on Machinery and Equipment15,66715,08218,114

(iii) Depriciation on Building7,4857,4857,485

(iv)Maintenance Charges5,9536,5237,098

(v)Interest on Total Investment12,50013,32514,595

(vi)Welfare For Staff 12,60015,60019,200

(vii)Office Stationery and

Postage, etc.4,0494,6895,389

Total:1,32,37,2621,49,29,2941,67,03,243

(m) Profit and Loss Account:

(i)By Sale of ___ (qty.) of ____ @ Rs. Ex- Factory exclusive of applicable taxes1,33,94,7751,50,99,7441,69,93,712

(ii)Cost of Production1,32,37,2621,49,29,2941,67,03,243

(iii)Profit (i) - (ii) approx.

Percentage of the total

Capital Employed1,57,5131,70,4502,90,469

Total:2,67,79,5503,01,99,4885,06,90,667

3. Profitability and ProjectionsPhase of Activity:UNIVERSAL TEXTILE produce the gray cloth and it use the power looms machine for the production, which capacity is to produce the gray cloth is 100% and at this level the quality of gray cloth is high.

And also, the power loom sector occupies an essential position in the Indian textile industry. However, its growth has been stunted by technological obsolescence, fragmented structure, low productivity and low-end quality products. The focus will therefore be on Technology upgradation;

Modernisation of Power loom Service Centres and testing facilities; Clustering of facilities to achieve optimum levels of production;

Welfare schemes for ensuring a healthy and safe working environment for the workers. Profitability of Phases:

YEARSProfit (Rs.)

2007-0832,142

2008-0967,901

2009-101,57,513

2010-111,70,450

2011-122,90,469

4. Infrastructure(i) Location Advantages and Availability of Material:UNIVERSAL TEXTILE is located around 72 X 100 Square Feet and in this area he gets easily market facilities. The company is situated near the market so it gets with no trouble to found looms worker and other facilities likes water supply, power supply, and raw material, so it deliver of the gray cloth to the customer at low cost.(ii) Government Policy:UNIVERSAL TEXTILE is mainly depend on the market strategy rather then the government policy. But the government policy in india can be assessed on the basis of three factors: Plan schemes such as the Technology Upgradation Funds Scheme (TUFS)

Under the TUFS scheme, a total of 15.9 billion has been disbursed for technology upgradation. There are around 26 Apparel Parks in eight states in India, with a total estimated investment of 2.3 billion

Technology Mission on Cotton

Apparel Parks, etc. Government support has ensured that key policy changes in the fiscal rule have been made in the past two years, which would ensure rapid increase of clothing consumption as well as the fibre consumption. A single rate will now be prevalent throughout the country.Break Even Point:Sales at BEP: Total Fixed Costs Contribution Per Unit

Where, Total fixed cost = Executive Salaries/Depriciation/Rent/Interest on

Investment and administration Costs.

Contribution Per Unit = Saling price (Rs.) Variable Cost (Rs.)

BEP for five year:---YEARSBreak- Even Point [BEP]

(Units)

2007-0813,07,779

2008-0910,58,968,

2009-1012,91,368

2010-1112,56,986

2011-1212,19,794

5. Names and Addresses of Suppliers(i) Raw Materials WAVELON FILAMENTS

A-3004-05, Millinium Market

Ring Road, Surat

EASTERN ENTERPRISE

Plot No. 1,2,5.N.H.No.8

Hashimi Estate,

Baleshwar.

Tal. Palsana

Dist. Surat.(ii) Machinery and Equipment Surat Millgin Stores

101,103,Dinesh Chembers,Opp.

Shree Krupa Ind. est.

Kapodra, Surat.6. Remarks

Seal and Date (Signature of the Consultant)

Conclusion:We utilize this opportunity to express our gratitude to Mr. Jairambhai R Gondlia, entrepreneur of The Jay Textiles for permitting us to study about project report. We also thankful to Mr. Bharatbhai, general manager of Jay Textiles for guide us and to give us lots of financial information. We are also thankful to all the staff members of Jay Textiles