PROJECT REPORT

Of

UNIFORM

PURPOSE OF THE DOCUMENT

This particular pre-feasibility is regarding Uniform Making Unit.

The objective of the pre-feasibility report is primarily to facilitate potential entrepreneurs in project
identification for investment and in order to serve his objective; the document covers various aspects
of the project concept development, start-up, marketing, finance and management.

[We can modify the project capacity and project cost as per your requirement. We can also prepare
project report on any subject as per your requirement.]

M/s Institute of Industrial Development

A Unit of M/s SAMADHAN Samiti
KVIC Pa
avilion, Gandhi Darshan,
Raj Gha
at, New Delhi 110002

e: www.iid.org.in
Website
Email: support@iid.org.in
 PROJECT REPORT
ON
SCHOOL UNIFORMS

INTRODUCTION:

Uniforms bring identity, discipline and culture of equality in a place where large
number of people gather like Schools, Colleges, large corporate offices, industrial
locations etc. Differentiated uniforms also help identify people belonging to different
category or job specification within an organization.

PRODUCT & ITS APPLICATION:

There would hardly be a secondary or high school which doesn’t prescribe a uniform
dress code for its students. Uniforms are used in almost all schools as well as in
many industries and large stores. Some schools and organizations have different
uniforms for different seasons while most prescribe different uniforms for male and
females. In recent times, uniform is being used to make a corporate statement,
promote brands and communicate organization philosophy.

INDUSTRY OUTLOOK AND TRENDS:

School uniforms and to some extent industrial uniforms have been in vogue for many
decades. However it is uniform of employees in small and medium industries
including Malls, Stores, Showrooms and offices that is driving the demand for uniform
sector. More and more enterprises now believe that uniform brings a sense of
discipline among the employees and they are willing to spend on such clothing. The
trend is catching up quite well and the demand in this segment is likely to grow.

MARKET POTENTIAL AND MARKETING ISSUES, IF ANY:

While schools prescribed uniform several decades ago, many industries followed the
suit in last 30-40 years. These days every small and large organization aspires to
prescribe dress code for its employees and many have implemented this policy
already. The trend is catching up and therefore market for uniforms is also growing.

RAW MATERIAL REQUIREMENTS:

The main raw material is light weight fabric made from cotton yarn. Blended fabric
offers some cost effective solution to those who find cotton fabric slightly expensive.
Both types of fabric, in all colors, designs and prints are available throughout India
from Mills, Traders and Agents.

MANUFACTURING PROCESS:
The fabric purchased in roll form is spread in layers on the cutting table. Patterns of
various parts of the garmentmade out of card board or plywood or metal are laid on
the fabric in such a way that wastage of fabric is minimized. Several layers of fabric
are then cut through vertical motorized blade. Garments are stitched in assembly line
manner wherein each machine operator completes only a part of the product. The
stitching starts on the 1st machine and gets completed at the last stage where the
product is inspected for quality defects if any. Labels of the schools or organization
are stitched in the end. Some schools or organizations want their logo to be
embroidered on the garment. The products are finally cleaned of loose yarn or dirt
and packed in plastic bags as per customer requirements.

STATUTORY APPROVALS:

The project does not require any specific government approval. Registration with
MSME is optional. An Entrepreneur may be required to obtain Shops &
Establishment Registration and Professional Tax registration by local Municipal
authorities. Registration under Factories Act, Provident Fund Act and ESI provisions
would be required depending upon the number of employees, the location, the level
of mechanization and the age of the enterprise.Entrepreneur may contact State
Pollution Control Board where ever it is applicable.

BACKWARD OR FORWARD INTEGRATION:

As the machines used in the project are versatile, the Entrepreneur can also consider
manufacture of home furnishing articles like bed sheets, pillow covers, wall hangings
etc depending on opportunities in the market he / she is familiar with.

FINANCIAL PLAN:.
 PROJECT AT A GLANCE

1 Name of the Entreprenuer XXXXXXX

2 Constitution (legal Status) XXXXXXX

3 Father's/Spouce's Name XXXXXXXX

4 Unit Address : XXXXXXXX

Taluk/Block:
District : XXXXX
Pin: XXXXX State:
E-Mail : XXXXX
Mobile XXXXX

5 Product and By Product : Uniforms

6 Name of the project / business activity proposed Uniforms

7 Cost of Project : Rs25.00 lac

8 Means of Finance
Term Loan Rs.12.57 Lacs
KVIC Margin Money - As per Project Eligibility
Own Capital Rs.2.5 Lacs
Working Capital Rs.9.92 Lacs

9 Debt Service Coverage Ratio : 6.10

10 Pay Back Period : 5 Years

11 Project Implementation Period : 6 Months

12 Break Even Point : 37%

13 Employment : 15 Persons

14 Power Requirement : 8.00 HP

15 Major Raw materials : Cloth material and accessories

16 Estimated Annual Sales Turnover : 119.70 Lacs

16 Detailed Cost of Project & Means of Finance

COST OF PROJECT (Rs. In Lacs)
Particulars Amount
Land Rented/Owned
Building & Civil Work (2000 Sq ft) -
Plant & Machinery 13.05
Furniture & Fixtures 0.50
Pre-operative Expenses 0.42
Working Capital Requirement 11.03
Total 25.00

MEANS OF FINANCE
Particulars Amount

Own Contribution @10% 2.50

Term Loan 12.57
Workign Capital Finance 9.92

Total 25.00

General Special
Beneficiary's Margin Monery 10% 5%
(% of Project Cost)

PLANT & MACHINERY

Single Needle Machine 10 60,000.00 600,000.00

Double Needle Machine 5 75,000.00 375,000.00
Overlock Machine 4 40,000.00 160,000.00
Cutting Table & machine 1 100,000.00 100,000.00
Inspection tables 2 35,000.00 70,000.00
Total 1,305,000.00
PROJECTED CASH FLOW STATEMENT

PARTICULARS IST YEAR IIND YEAR IIIRD YEAR IVTH YEAR VTH YEAR

SOURCES OF FUND

Share Capital 2.50 -

Reserve & Surplus 9.26 12.29 15.98 19.46 22.70
Depriciation & Exp. W/off 1.98 1.71 1.46 1.24 1.06
Increase in Cash Credit 9.90 - - - -
Increase In Term Loan 12.57 - - - -
Increase in Creditors 4.50 0.75 0.75 0.75 0.75
Increase in Provisions 0.36 0.04 0.04 0.04 0.05

TOTAL : 41.08 14.79 18.23 21.50 24.55

APPLICATION OF FUND

Increase in Fixed Assets 13.55 - - - -

Increase in Stock 9.54 1.59 1.59 1.59 1.59
Increase in Debtors 5.99 1.31 1.05 1.05 1.05
Increase in Deposits & Adv 2.50 0.25 0.28 0.30 0.33
Repayment of Term Loan - 3.14 3.14 3.14 1.57
Taxation - 1.23 3.20 3.89 4.54

TOTAL : 31.58 7.52 9.26 9.98 9.08

Opening Cash & Bank Balance - 9.50 16.76 25.74 37.26

Add : Surplus 9.50 7.26 8.98 11.52 15.47

Closing Cash & Bank Balance 9.50 16.76 25.74 37.26 52.73
PROJECTED BALANCE SHEET

PARTICULARS IST YEAR IIND YEAR IIIRD YEAR IVTH YEAR VTH YEAR

SOURCES OF FUND

Capital Account 2.50 2.50 2.50 2.50 2.50

Retained Profit 9.26 20.32 33.11 48.68 66.84

Term Loan 12.57 9.43 6.29 3.14 1.57

Cash Credit 9.90 9.90 9.90 9.90 9.90
Sundry Creditors 4.50 5.25 6.00 6.75 7.50
Provisions & Other Liab 0.36 0.40 0.44 0.48 0.53

TOTAL : 39.09 47.80 58.23 71.45 88.84

APPLICATION OF FUND

Fixed Assets ( Gross) 13.55 13.55 13.55 13.55 13.55

Gross Dep. 1.98 3.69 5.15 6.39 7.45
Net Fixed Assets 11.57 9.86 8.40 7.16 6.10

Current Assets
Sundry Debtors 5.99 7.30 8.35 9.40 10.45
Stock in Hand 9.54 11.13 12.72 14.31 15.90

Cash and Bank 9.50 16.76 25.74 37.26 52.73

Deposits & Advances 2.50 2.75 3.03 3.33 3.66

TOTAL : 39.09 47.80 58.23 71.45 88.84

- - - - -
PROJECTED PROFITABILITY STATEMENT

PARTICULARS IST YEAR IIND YEAR IIIRD YEAR IVTH YEAR VTH YEAR

A) SALES
Gross Sale 119.70 145.95 166.95 187.95 208.95

Total (A) 119.70 145.95 166.95 187.95 208.95

B) COST OF SALES

Raw Mateiral Consumed 90.00 105.00 120.00 135.00 150.00

Elecricity Expenses 0.69 0.80 0.92 1.03 1.15
Repair & Maintenance - 1.46 1.67 1.88 2.09
Labour & Wages 12.67 13.94 15.33 16.87 18.55
Depriciation 1.98 1.71 1.46 1.24 1.06
Consumables and Other Expense 2.39 2.92 3.34 3.76 4.18
Cost of Production 107.74 125.83 142.72 159.78 177.02

Add: Opening Stock /WIP - 5.04 5.88 6.72 7.56

Less: Closing Stock /WIP 5.04 5.88 6.72 7.56 8.40

Cost of Sales (B) 102.70 124.99 141.88 158.94 176.18

C) GROSS PROFIT (A-B) 17.00 20.96 25.07 29.01 32.77

14% 14% 15% 15% 16%
D) Bank Interest (Term Loan ) 1.06 1.13 0.77 0.41 0.07
Bank Interest ( C.C. Limit ) 0.99 0.99 0.99 0.99 0.99

E) Salary to Staff 3.30 3.63 3.99 4.39 4.83

F) Selling & Adm Expenses Exp. 2.39 2.92 3.34 3.76 4.18

TOTAL (D+E) 7.75 8.67 9.09 9.55 10.07

H) NET PROFIT 9.26 12.29 15.98 19.46 22.70

I) Taxation - 1.23 3.20 3.89 4.54

J) PROFIT (After Tax) 9.26 11.06 12.79 15.57 18.16

COMPUTATION OF MANUFACTURING OF UNIFORMS

Items to be Manufactured Uniforms

Manufacturing Capacity per day - 200

No. of Working Hour 8
No of Shift per day 1
No of Working Days per month 25
No. of Working Day per annum 300
Total Production per Annum 60,000.00

Year Capacity
Utilisation

IST YEAR 60% 36,000

IIND YEAR 70% 42,000
IIIRD YEAR 80% 48,000
IVTH YEAR 90% 54,000
VTH YEAR 100% 60,000

COMPUTATION OF RAW MATERIAL

Item Name Quantity of Recovery Unit Rate of Total Cost

Raw Material of RM Per Annum (100%

Cloth material other accessories and

100% 150,000.00 100% 100.00 150.00
packaging

Total (Rounded off in lacs) 150.00

Annual Consumption cost ( In Lacs) 150.00

Raw Material Consumed Capacity Amount (Rs.)

Utilisation

IST YEAR 60% 90.00

IIND YEAR 70% 105.00
IIIRD YEAR 80% 120.00
IVTH YEAR 90% 135.00
VTH YEAR 100% 150.00
COMPUTATION OF CLOSING STOCK & WORKING CAPITAL

PARTICULARS IST YEAR IIND YEAR IIIRD YEAR IVTH YEAR VTH YEAR

Finished Goods
(15 Days requirement) 5.04 5.88 6.72 7.56 8.40
Raw Material
(15 Days requirement) 4.50 5.25 6.00 6.75 7.50

Closing Stock 9.54 11.13 12.72 14.31 15.90

COMPUTATION OF WORKING CAPITAL REQUIREMENT

Particulars Total
Amount
Stock in Hand 9.54

Sundry Debtors 5.99

Total 15.53
Sundry Creditors 4.50

Working Capital Requirement 11.03

Margin 1.12

Working Capital Finance 9.90

BREAK UP OF LABOUR

Particulars Wages No of Total

Per Month Employees Salary
Stitching machine operator 8,000.00 10 80,000.00
Unskilled Worker 4,000.00 4 16,000.00

96,000.00
Add: 10% Fringe Benefit 9,600.00
Total Labour Cost Per Month 105,600.00
Total Labour Cost for the year ( In Rs. Lakhs) 12.67

BREAK UP OF SALARY

Particulars Salary No of Total

Per Month Employees Salary
Designer 10,000.00 1 10,000.00
Sales Man 7,000.00 1 7,000.00
Accountant cum store keeper 8,000.00 1 8,000.00
Total Salary Per Month 25,000.00

Add: 10% Fringe Benefit 2,500.00

Total Salary for the month 27,500.00

Total Salary for the year ( In Rs. Lakhs) 3.30

COMPUTATION OF DEPRECIATION

Description Land Building/shed Plant & Furniture TOTAL

Machinery

Rate of Depreciation 10.00% 15.00% 10.00%

Opening Balance Leased - - - -
Addition - - 13.05 0.50 13.55
- - 13.05 0.50 13.55
Less : Depreciation - - 1.96 0.03 1.98
WDV at end of Ist year - - 11.09 0.48 11.57
Additions During The Year - - - - -
- - 11.09 0.48 11.57
Less : Depreciation - - 1.66 0.05 1.71
WDV at end of IInd Year - - 9.43 0.43 9.86
Additions During The Year - - - - -
- - 9.43 0.43 9.86
Less : Depreciation - - 1.41 0.04 1.46
WDV at end of IIIrd year - - 8.01 0.38 8.40
Additions During The Year - - - - -
- - 8.01 0.38 8.40
Less : Depreciation - - 1.20 0.04 1.24
WDV at end of IV year - - 6.81 0.35 7.16
Additions During The Year - - - - -
- - 6.81 0.35 7.16
Less : Depreciation - - 1.02 0.03 1.06
WDV at end of Vth year - - 5.79 0.31 6.10
REPAYMENT SCHEDULE OF TERM LOAN 11.5%

Year Particulars Amount Addition Total Interest Repayment Cl Balance

IST YEAR Opening Balance
Ist Quarter - 12.57 12.57 - - 12.57
Iind Quarter 12.57 - 12.57 0.36 - 12.57
IIIrd Quarter 12.57 - 12.57 0.36 0.79 11.79
Ivth Quarter 11.79 - 11.79 0.34 0.79 11.00
1.06 1.57
IIND YEAR Opening Balance
Ist Quarter 11.00 - 11.00 0.32 0.79 10.22
Iind Quarter 10.22 - 10.22 0.29 0.79 9.43
IIIrd Quarter 9.43 - 9.43 0.27 0.79 8.64
Ivth Quarter 8.64 8.64 0.25 0.79 7.86
1.13 3.14
IIIRD YEAR Opening Balance
Ist Quarter 7.86 - 7.86 0.23 0.79 7.07
Iind Quarter 7.07 - 7.07 0.20 0.79 6.29
IIIrd Quarter 6.29 - 6.29 0.18 0.79 5.50
Ivth Quarter 5.50 5.50 0.16 0.79 4.71
0.77 3.14
IVTH YEAR Opening Balance
Ist Quarter 4.71 - 4.71 0.14 0.79 3.93
Iind Quarter 3.93 - 3.93 0.11 0.79 3.14
IIIrd Quarter 3.14 - 3.14 0.09 0.79 2.36
Ivth Quarter 2.36 2.36 0.07 0.79 1.57
0.41 3.14
VTH YEAR Opening Balance
Ist Quarter 1.57 - 1.57 0.05 0.79 0.79

Iind Quarter 0.79 - 0.79 0.02 0.79 - 0.00

IIIrd Quarter - 0.00 - - 0.00 - 0.00 - - 0.00
Ivth Quarter - 0.00 - 0.00 - 0.00 - - 0.00
0.07 1.57
CALCULATION OF D.S.C.R

PARTICULARS IST YEAR IIND YEAR IIIRD YEAR IVTH YEAR VTH YEAR

CASH ACCRUALS 11.24 12.77 14.24 16.81 19.21

Interest on Term Loan 1.06 1.13 0.77 0.41 0.07

Total 12.30 13.90 15.01 17.22 19.28

REPAYMENT
Instalment of Term Loan 3.14 3.14 3.14 1.57 1.57
Interest on Term Loan 1.06 1.13 0.77 0.41 0.07

Total 4.21 4.27 3.91 1.98 1.64

DEBT SERVICE COVERAGE RA 2.93 3.25 3.84 8.70 11.76

AVERAGE D.S.C.R. 6.10

COMPUTATION OF SALE
Particulars IST YEAR IIND YEAR IIIRD YEAR IVTH YEAR VTH YEAR

Op Stock - 1,800 2,100 2,400 2,700

Production 36,000 42,000 48,000 54,000 60,000

36,000 43,800 50,100 56,400 62,700

Less : Closing Stock 1,800 2,100 2,400 2,700 3,000

Net Sale 34,200 41,700 47,700 53,700 59,700

Sale Price per made ups 350.00 350.00 350.00 350.00 350.00

Sale (in Lacs) 119.70 145.95 166.95 187.95 208.95

The above calculations are based on assumed unit sales price varying from Rs. 250 to Rs. 350 for
various products. The key raw material is assumed at a cost range of Rs 45 to Rs. 55 per meter.
COMPUTATION OF ELECTRICITY
(A) POWER CONNECTION

Total Working Hour per day Hours 8

Electric Load Required HP 8
Load Factor 0.7460
Electricity Charges per unit 8.00
Total Working Days 300
Electricity Charges ( 8 Hrs Per day ) 114,585.60

Add : Minimim Charges (@ 10%)

(B) D.G. SET

No. of Working Days 300 days
No of Working Hours - Hour per day
Total no of Hour -
Diesel Consumption per Hour 8
Total Consumption of Diesel -
Cost of Diesel 65.00 Rs. /Ltr
Total cost of Diesel -
Add : Lube Cost @15% -
Total -

Total cost of Power & Fuel at 100% 1.15

Year Capacity Amount

(in Lacs)

IST YEAR 60% 0.69

IIND YEAR 70% 0.80
IIIRD YEAR 80% 0.92
IVTH YEAR 90% 1.03
VTH YEAR 100% 1.15
BREAK EVEN POINT ANALYSIS

Year I II III IV V

Net Sales & Other Income 119.70 145.95 166.95 187.95 208.95

Less : Op. WIP Goods          ‐        5.04        5.88        6.72        7.56
Add : Cl. WIP Goods        5.04        5.88        6.72        7.56        8.40

Total Sales 124.74 146.79 167.79 188.79 209.79

Variable & Semi Variable Exp.

 Raw Material & Tax      90.00    105.00    120.00    135.00    150.00

Electricity Exp/Coal Consumption at 85%         0.58        0.68        0.78        0.88        0.97
Manufacturing Expenses 80%        1.92        3.50        4.01        4.51        5.01
 Wages & Salary at 60%         9.58      10.54      11.60      12.76      14.03
Selling & adminstrative Expenses 80%        1.92        2.34        2.67        3.01        3.34
 Intt. On Working Capital Loan         0.99        0.99        0.99        0.99        0.99
Total Variable & Semi Variable Exp    104.99    123.05    140.04    157.14    174.35

Contribution      19.75      23.74      27.75      31.65      35.44

Fixed & Semi Fixed Expenses

Manufacturing Expenses 20% 0.48 0.88 1.00 1.13 1.25

Electricity Exp/Coal Consumption at 15%  0.10 0.12 0.14 0.15 0.17
 Wages & Salary at 40%  6.39 7.03 7.73 8.50 9.35
 Interest on Term Loan  1.06 1.13 0.77 0.41 0.07
 Depreciation   1.98 1.71 1.46 1.24 1.06
Selling & adminstrative Expenses 20% 0.48 0.58 0.67 0.75 0.84
Total Fixed Expenses 10.49 11.45 11.76 12.18 12.74

 Capacity Utilization  75% 80% 85% 90% 95%

OPERATING PROFIT 9.26 12.29 15.98 19.46 22.70
BREAK EVEN POINT 40% 39% 36% 35% 34%
BREAK EVEN SALES 66.27 70.79 71.13 72.68 75.42
 DISCLAIMER

The views expressed in this Project Report are advisory in nature. SAMADHAN assume no
financial liability to anyone using the content for any purpose. All the materials and content
contained in Project report is for educational purpose and reflect the views of the industry
which are drawn from various research material sources from internet, experts, suppliers and
various other sources. The actual cost of the project or industry will have to be taken on case
to case basis considering specific requirement of the project, capacity and type of plant and
other specific factors/cost directly related to the implementation of project. It is intended for
general guidance only and must not be considered a substitute for a competent legal advice
provided by a licensed industry professional. SAMADHAN hereby disclaims any and all
liability to any party for any direct, indirect, implied, punitive, special, incidental or other
consequential damages arising directly or indirectly from any use of the Project Report
Content, which is provided as is, and without warranties.