BUSINESS PLANON

DENIM FABRIC MANUFACTURING

PRESENTED BY:NEHA (18)

SHRUTI (39)

PARTAP GROUP

• Partap Group is one of India's leading diversified group of manufacturing and services spanning across 4 states in India. Active in oil refineries, solvent extraction and real estate. Through dedication and deliberate efforts, we have gained excellence in all our fields.

• Established in 1970’s, under the leadership of Late. Sh Ram Partap Bansal we have developed into a matured and skilled organization, which better understands the market needs and demands. Partap Group’s growth has been founded on a consistent philosophy to deliver the range and quality of product that the customers demand on the scale to do so competitively.

Why Partap Group entered into Fabrics??

Denims are in huge demand and this demand is justified by the Report of Denim Association where in the market potentialfor this product increases by 10% every year.

To tap this market potential, Partap Group of Industries made a decision of diversifying into the Denim Fabric Manufacturing.

• A new denim fabric unit setup in Haryana.

• Our product range has an enormous variety focusing on all markets, especially domestic. All our products are marketed through dealer network.

• We offer a range that currently consists of weights from 8 oz to 14 oz in both rigid and stretch qualities primarily featuring cotton/cotton, cotton/poly, cotton/stretch, using premium grade yarns that are supplied to us through our fully vertical supply chain. The ability to manufacture our own yarn gives us the capability to offer customers with a faster product development cycle.

Executive Summary

• Company Partap Fabrics Pvt. Ltd.• Parent Company Partap Group• Product Denim Fabric• Location Village Kesari, Shahabad -

Saha Highway, Ambala• Target Customers Lower segment Denim

Market

• Remain Committed to maintain high Integrity, high Standards, superior products, competitive pricing and dedication to customer service.

Plant Location

KESARI

Product Features

• Denim fabric available in a variety of colors• 53- 69 inch fabric width• 8 – 14 ounce fabric weight• Congruent with American 4 – point Grading

quality Standard

Product Variety

• Stretchable• Non Stretchable• Cotton Polyester• 100% Cotton Fabric

Raw Material

• 100% Cotton Yarn• Filament Yarn• Indigo Dye• Sizing Chemicals

Raw Material Suppliers

• 25% In House Production • Alok Industries F/2A Okhla Industrial Area Phase 1, New Delhi• Reliance Industries, Mumbai• Indo Rama Synthetics 4th Floor , Golden Plaza, Mall Road, Ludhiana• Nahar Spinnings, Industrial Area , Ludhiana

Target Customers

• Lower segment of Denim Market

• Delhi• Ludhiana• Mumbai• Ahmedabad

Dealer Network

• Currently having 6 dealers• Denim Cooperation, New Delhi (80%

Demand)• Elvyn Jay Fabrics, Ludhiana (5% Demand)

Machinery RequirementS. No. Name of the

MachineNo. of Machines No. of workers per

machine

1. Warping Machine One 5 worker

2. IDR Machine One 10 Worker

3. Air Jet Looms 48 Looms 2 worker

4. Processing Machine One 5 Worker

5. Shrinkage Machine One 5 Worker

6. Strenter One 5 Worker

7. Inspection Machine Table

Four 12 worker

Machinery Suppliers• Warping Machine

Jupiter Compex Pvt. Ltd., Wapi Mumbai• IDR Machine

Jupiter Compex Pvt. Ltd., Wapi Mumbai• Air Jet Looms

Tsudokoma NV• Processing Machine, Shrinkage Machine

Jupiter Compex Pvt. Ltd., Wapi Mumbai• Strenter

Harish Ltd, Yamuna Machine Work Ltd.• Inspection MachineTable

Paramount, Yash textiles , Mumbai

Total Market Demand

• 5% of the whole denim market demand catered by Partap Fabrics Pvt. Ltd.

Partap Fabric Pvt. Ltd.Whole Denim Market

Competitors

• Arvind MillsNavoda road , Ahmedabad , Gujarat

• Oswal DenimLudhiana,Punjab

• Chiri Pal IndustriesAhmedabad, Gujarat

Pricing Strategy

• Competitive Price(110 – 160 Rs/Mtr)• Discount for larger quantities(Re 1 per kg

discount on purchase of 10000 mtr)• Credit Facilities(we are providing credit for 7

days and 15 days)

Production Capacity Schedule

• 100% Plant Utilization

• 8 hours per Shift• 3 Shifts per Day• 2 Days Production Cycle

PARTICULARS No. MONTHLY SALARY

Skilled Labour 175 Rs. 5,000

Supervisor 25 Rs. 8,000

Managerial Staff 8 Rs. 25,000

Manpower Requirements

Capital

Particulars Amount (Rs)

Fixed capital requirements 2,50,00,000

Working capital requirements 32,00,000

Total 2,82,00,000

Particulars Amount (Rs)

Promoters 1,00,00,000

Term loan @15.5 % interest from PNB 1,82,00,000

Total 2,82,00,000

Capital Requirement

Sources of Capital

Financial data that shows that the business contains growth or not.....PROFIT AND LOSS

PROJECTION

TOTAL REVENUE (SALES) 15,00,00,000

OPERATING EXPENSES:

RAW MATERIAL COST 11,00,00,000

LABOUR AND WAGES 1,29,00,000

MANUFACTURING EXPENSES 1,10,00,000

MANAGEMENT EXPENSES 23,00,000

SELLING EXPENSES 1,00,000

FINANCIAL EXPENSES 65,00,000

DEPRECIATION 44,00,000

TOTAL OPERATING EXPENSES: 14,72,00,000

PROFIT BEFORE TAXES: 28,00,000

TAXES(30%): 8,40,000

SURCHARGE(10%) 84,000

PROFIT AFTER TAXES: 18,76,000

WEAKNESSNot a Corporate

OPPORTUNITYGrowing Market

THREATWell Established Competitors

SWOT

Future Plans

• Doubling the capacity within next year.

• Reaching out to more dealers.