25

Woven Labels

PRODUCT CODE : 266903006

QUALITY AND STANDARDS : No specification has been framed so far, for this
product. However, the quality is to be maintained
as per the requirement of the market by using
good quality of yarn.
PRODUCTION CAPACITY : Qty. : 1,44,00,000 Labels (per annum)
Value : Rs. 37,44,000
MONTH AND YEAR : March, 2003
OF PREPARATION
PREPARED BY : Small Industries Service Institute
Industrial Area-B, Ludhiana-3 (Punjab).
Phone Nos. :2531733-34-35

INTRODUCTION of labels to the manufacturing units.

There is good scope if some units come
Labels are used in every garment forward for manufacturing of labels.
industry of Textile and Leather as well
as by the tailors to give the identity of B ASIS AND PRESUMPTIONS
the manufacturers and the
specifications of the material used. With 1. The scheme has been prepared
the increasing awareness of the on the basis of 75% efficiency on
consumer towards the better quality single shift considering 25
product and feeling the brand working days in a month.
consciousness, this has become a 2. The rate of 15% interest in the
neacessity for the garment manufactuers scheme has been worked out on
and the tailors. the basis of 15% on an average
however, this figure is likely to
MARKET POTENTIAL vary depending on the financial
out-lay of the project as well as
There are very few units in the State
location of the unit.
which are engaged in manufacturing
lables. These labels are required by each 3. The break-even point in the
and every type of gar ment scheme has been calculated on
manufacturing unit as well as leather the full capacity utilization basis.
products. Due to the increase in the 4. The cost of machinery and
production of garments, the demand of equipment as indicated are
labels is also being increased day-by day. approximate which are fuling
The export of readymade garments to locally at the time of preparation
different countries has also been of the scheme when a tailor cut
increased. Still there is a gap of supply project profile is prepared,
118 W OVEN LABELS

necessary changes are to be made. TECHNICAL ASPECTS

5. The rate quoted in respect of
salaries and wages for workers P rocess of Manufacture
and others are the minimum rates The main raw material required to
in the State, neighbouring states. manufacture Labels is Polyster Yarn/
6. Margin money required is Silkyarn/Cotton yarn/Viscose yarn/
minimum 30% of the Projected Blended yarn of different counts and
investment. colours. The yarn normally comes in the
7. After the initial gestation period market on cones, from these cones
of one and half year, it will require warp is made on warping machine. The
approximately 4 years to pay design which is required to be produced
back the loans. is punched through punching machine
on card. Some people use few ends of
8. Working capital for 3 months has
Jari yarn to enhance beauty of the label.
been taken into consideration for
smooth running of the project. The width of the label depends from one
inch to two inches. Accordingly, the
IMPLEMENTATION SCHEDULE warp is made and the yarn is inserted
to shuttle for weaving the labels in a
Sl.No. Activity Period continous length. These labels are
1. Preparation of the Project Report: checked and packed for marketing to the
a) Calling quotations 1 month garment manufacturers.
b) Preparation of Project 2 weeks Quality Control and Standards
report
The Bureau of Indian Standards has
2. Provisional registration as 1 week not brought out any specifications for
SSI unit labels. Labels are manufactured as per
3. Financial arrangements 3 months the customer design and selection of
material. So far, no unit is adopting any
4. There is no need for 1 week
Pollution Control quality standard for this purpose.
equipment. Even then However, quality of the woven labels
NOC from Pollution depends upon the materials use and the
Control Board is required fast colour of the yar n used for
manufacturing woven labels.
5. Purchase and 3 months
procurement of Production Capacity (per annum)
machinery and
(a) Quantity 1,44,00,000 Labels
equipments (b) Value Rs. 37,44,000-00
6. Installation of 2 months
machines and Motive Power 20 H.P.
equipments
7. Electrification 1 month Pollution Control
8. Recruitment of staff 2 months No effluents are required, since the
and workers process involves weaving of yarn into
 W OVEN LABELS 119

woven labels. So, there is no Skilled/Unskilled Worker

requirement of installation of effluent 2. Operators (Real winder 3 3000 9,000
plant. pirn winder/Beam
winder)
Energy Conservation 3. Helpers 2 2250 4,500

Energy Conservation has become Total 37,000

essential in these days. It becomes the Perquisites @ 10% 3,700
individuals duties to realise its necessity. Total 40,700

FINANCIAL ASPECTS Say 41,000

(ii) Raw Material (per month) (Rs.)

A. Fixed Capital
Polyster yarn III denier 600 kg. @240 1,44,000
(i) Land and Building Value (Rs.)
Viscose yarn 120 denir 200 kg. @200 40,000
Rented 500 sq. mtr @ Rs. 20 sq.mtr. 10,000
Total 1,84,000
(ii) Machinery and Equipments
Note : Woven Labels are also made
Sl. Description Unit Rate Total out of cotton, silk and nylon
No. (Rs.) (Rs.) yarn. For calculations purpose,
1. Reel Winder 8 spindle. 1 12,000 12,000 we have mentioned here
2. Pirn winder 8" 1 20,000 20,000 polyster and viscose yarn.
3. Beam winding M/c 1 15,000 15,000 (iii) Utilities (per month) (Rs.)
Warping)
Power and Electricity 4,000
4. Woven Labels 8 90,000 7,20,000
making machine with (iv) Other Contingent Expenditure (Rs.)
Jacquard
1. Rent 10,000
5. Creel Stands 1 8,000 8,000
6. Card punching and 1 35,000 35,000 2. Postage and stationery 500
stitching machine 3. Repair and maintenance 1,000
Total 8,10,000
4. Telephone 1,500
(iii) Other Fixed Assets (Rs.) 5. Transportation charges/cartage 1,000
1. Electrification and Installation 50,000 6. Oil and Lubricants 500
Electric Motors
7. Insurance 2,000
2. Furniture and office equipments 50,000
8. Office expenditure 500
G. Total 9,10,000
9. Packing expenses 2,000

B. Working Capital (per month) Total 19,000

(i) Staff and Labour (per month) (Rs.) (v) Working Capital (per month) (Rs.)

Administrative and Supervisory Staff and Labour 41,000

1. Manager 1 5500 5,500 Raw Material 1,84,000

2. Supervisor/Accountant 1 3500 3,500 Utilities 4,000
3. Peon/Watchman 1 2500 2,500 Other expenditure 19,000
Skilled/Unskilled Worker Total 2,38,000
1. Operators for label 4 3000 12,000 (vi) Total Working Capital for 3 months
making machines = 2,38,000 × 3 = Rs. 7,14,000
120 W OVEN LABELS

C. Total Capital Investment Addresses of Machinery

(i) Machinery and Equipments Rs. 9,10,000
Manufacturers and Suppliers
(ii) Total working capital for Rs.7,14,000 1. M/s. Nota Machinery Works
3 months Industrial Area-A,
Total Rs. 16,24,000 Ghorrawali Factory,
FINANCIAL ANALYSIS Ludhiana.

(1) Cost of Production (per annum) (Rs.) 2. M/s. Nota Machinery Corporation
Raw Material 22,08,000
Sherpur,
Ludhiana.
Staff and Labour 4,92,000
Utilities 48,000 3. M/s. Hamdard Textile Engineers
Other contingent expenses 2,28,000 Putlighar,
Depreciation on Machinery @ 10% 86,000 Amritsar.
Interest on total investment @ 15% 2,43,600
4. M/s. Guru Nanak Textile
Depreciation on Office furniture. 10,000
Machinery Manufacturers
Total 33,15,600
G.T. Road,
(2) Turnover (per annum) (Rs.) Amritsar.
By sale of : 1,44,00,000 Labels 37,44,000
@ Rs. 260 per thousand 5. M/s. Nanak Chand and Sons
(3) Net Profit (per year) (Rs.) Ganesh Nagar,
Profit = Sales - Production Cost
St. No. 3, Link Road,
= 36,00,000 - 33,15,600 = 4,28,400 Ludhiana.
(4) Net Profit Ratio
= Net Profit per year × 100 Raw Material Manufacturers and
Turn over per year Suppliers
= 11%
1. M/s. J.C.T. Ltd.
(5) Net Rate of Return Phagwara (Punjab).
= Net Profit per year × 100
Total Investment 2. M/s. Modi Cone Ltd.
= 26% Modinagar-201204.
(6) Break-even Point
3. M/s. Esslon Synthetics Ltd.
Fixed Cost (per annum) (Rs.)
Dakshineshwar Building,
1. 40% of salaries 1,96,800 10-Hailey Road,
2. 40% of utilities 19,200 New Delhi.
3. 40% of other expenditure 91,200
4. M/s. Shree Shyam Filaments
4. Depreciation on machinery 86,000
15/17, Barwar House,
5. Depreciation on office furniture 10,000
Ajmer Road,
6. Interest on total investment 2,43,600
Jaipur-110065.
Total 6,46,800
B.E.P. = Fixed Cost × 100
5. M/s. Rajasthan Patro Synthetics
Fixed Cost + Profit Ltd.
= 646800 × 100 4, Community Centre,
1075200 East of Kailash,
= 60% Delhi-110065.
 W OVEN LABELS 121

6. M/s. J.K. Synthetics Ltd. 8. M/s. Mahavir Spinning and

Kota. General Mills Ltd.
Hoshiarpur (Punjab)
7. M/s. Vardhman Spinning and
9. M/s. Govindwal Cooperative
General Mills Ltd.
Spinning Mills.
Samrala Road,
Goindwal Sahib,
Ludhiana. Amritsar (Punjab)