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Project Profiles

HAWAI CHAPPALS
1. INTRODUCTION Hawai chappals are lightweight footwear used by gents, ladies and children in our country and is used by every sectionof the society by people of all ages. In the beginning chappals are only functional utility ie. To protect the foot from thorns, insects, etc. The chappals have become common among villagers, farmers and labourers. 2. MARKET People from both the urban and rural areas are using the hawai chappals. To cater to the requirements of different users of hawai chappals, they are now made in different types and by different manufacturing processes. There is a good scope of marke for this product in rural and urban areas. 3. MANUFACTURING PROCESS The hawai sheets are cut with the help of die/mould in sole cutting machine or fly press. After cutting the soles in required sizes, they are drilled with drilling machine for inserting the straps. The straps are then fitted by strap fitting tool made out of iron/stainless steel. The edges are finished with the help of grinding machine. The chappals so produced are then inspected and packed in polythene and kept in boxes.

4. PRODUCTION CAPACITY PER ANNUM Capacity Selling Price 5. PROJECT COST/CAPITAL INVESTMENT
S.No Description

Rs.

130000 chappals 13 per chappal

Amount Rs.

1 2 3

Preliminary & Preoperative Expns Fixed Capital Working Capital for Total Project Cost

month(s)

2000 61000 133700 196700

6. MEANS OF FINANCE
S.No Description %age Amount Rs.

1 2 3

Promoter Contribution Subsidy/Soft Loan Term Loan Total

15% 20% 65%

29505 39340 127855 196700

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Project Profiles

7. FINANCIAL ASPECTS A. FIXED CAPITAL i. Land and Buildings ii. Machinery and Equipment
S.No Description Qty. Rate Amount Rs.

Rented

Rs. 2000

per month

1 2 3 4 5 6 7

Fly press for cutting sheet (hand operated) Drilling machine Finishing machine Cutting dies of different sizes and shapes Hand tools Furniture and euipment Electrification and installation expenses Total

1 1 1 25 LS LS LS

14000 9000 8000 400

15000 10000 8000 10000 5000 10000 3000 61000

B. WORKING CAPITAL i. Salaries & Wages (per month)

S.No Description Nos. Sal/mon. Amount Rs.

1 2 3 4

Manager/Entrepreneur Skilled labour Semiskilled labour Unskilled labour Total

1 6 2 2

2000 1500 1200 1000

2000 9000 2400 2000 15400

ii. Raw Material (per month)

S.No Description Unit Qty. Rate Amount Rs.

1 2 3

Hawai rubber Straps Packing material @ 0.50 per pair Total

sheets pairs paris

2500 11000 11000

32 2 1

80000 22000 11000 113000

iii. Utilities (per month)

S.No Description Unit Amount Rs.

1 2

Power Water Total

LS LS

1000 300 1300

iv. Other Expenses (per month)

S.No Description Amount Rs.

1 2 3 4 5

Postage & Stationery Expenses Transportation Expenses Advertisement Expenses Consumeble Stores Miscellaneous Expenses Total

200 1000 500 100 200 2000

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v. Total Working Capital (per month)

S.No Description Amount Rs.

1 2 3 4 5

Rent Salaries and Wages Raw Material Utilities Other Expenses Total

2000 15400 113000 1300 2000 133700

8. COST OF PRODUCTION (PER ANNUM)

S.No Description Amount Rs.

1 2 3

Total Working Capital Depreciation Interest Total

@ @

15% 12%

1604400 9150 15343 1628893

9. TURNOVER (PER YEAR)

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

Hawai Chappals Total

chappals 130000

13

1690000 1690000

10. FIXED COST (PER YEAR)

S.No Description Amount Rs.

1 2 3 4 5

Depreciation Interest Rent Salaries & Wages @ Other Expenses incl. Utilities @ Total

40% 40%

9150 15343 24000 73920 15840 138253

11. PROFIT ANALYSIS & RATIOS 1 2 3 4 Net Profit Percentage of Profit on Sales Percentage of Return on Investment Break Even Point Rs. 61107 4% 31% 69%