FOREWORD

FOREWORD

BACKGROUND:

Rungta Weaving and Dyeing House Private Limited is a Private

Limited company incorporated on 24th May, 2013 with Shri Ajay
Kumar Rungta and Shri Anuj Kumar Rungta as the promoter
director. Subsequently Shri Anuj Kumar Rungta resigned and Shri.
Shreya Poddar was appointed as the promoter director of the
company. The company will be engaged in manufacturing hosiery
and related items as mentioned below
Name of the Product

Installed Capacity

Knitted Cotton Fabric

57,60,000.00 Kgs / annum

Narrow Woven Fabric Tape

4,83,84,000.00 Meters / annum

Leggings

92,16,000.00 Pcs / annum

KEY PERSONS BACKGROUND

AND PROFILE

KEY PERSONS BACKGROUND AND PROFILE

Rungta Weaving and Dyeing House Private Limited will be

primarily managed by its promoter directors Mr. Ajay Kumar
Rungta and Mr. Shreya Poddar, both of them having a strong
business experience in the textile and iron and steel sectors.
Shri Ajay Kumar Rungta, Director
Shri Ajay Kumar Rungta, S/o of Shri Shankar Lalji Rungta, aged 49
years, is a B.Com Graduate, and is residing at P 150 A, C.I.T. Road,
Scheme 6M, Kolkata 700054, has been the prime motivating
force in setting up of Rungta Weaving and Dyeing House Private
Limited.
Prior to joining hands with Mr. Shreya Poddar, Mr. Rungta was
actively involved in the textile business of manufacturing narrow
woven fabric tape under the name of partnership firm M/s
Rungta Weaving and Dyeing House for 3 years along with his
elder brother Mr. Suresh Kumar Rungta and his son Mr. Anuj
Kumar Rungta. Since Mr. Rungta wanted to expand his business,
the need for corporatization was felt and thus he incorporated
Rungta Weaving and Dyeing House Private Limited. Later on his
son Mr. Anuj Kumar Rungta decided to not to continue the
business and resigned from the board of the directors and then
Mr. Rungta joined hands with Mr. Shreya Poddar who has got good
experience in this line of business through his other ventures.
After studying the entire Hosiery Market in Kolkata, West Bengal,
he with the help of some other key persons has decided to be
engaged in manufacturing cotton fabrics, narrow woven fabric
tape and leggings, all the products being the hosiery related
items. He has further decided to further do the value addition by
manufacturing men and women briefs and vests and market it
under own brand name.
Shri Ajay Kumar Rungta, being having an experience of almost 30
years knows very well the basic nitty-gritty for running any
factory and can manage it quiet efficiently.

Shri Shreya Poddar, Director.

Shri Shreya Poddar, S/o of Shri Bimal Poddar, aged 33 years, is
residing at 69 Dr Abani Dutta Road, Golabari, Howrah - 711101.
He is a B.Com Graduate having a diversified business experience
and belongs to a business family whose experience is an added
advantage to the company.
Mr. Poddar has a very strong experience in this line of business
through his various other ventures like Dilip Polyfab Private
Limited which is engaged in manufacturing of Cotton Fabrics used
in Cots Wool Wears, Saundarya Fashion Traders Private Limited
engaged in manufacturing Sarees and Embroidered Fabrics, Vikat
Fabrics Private Limited engaged in similar business. All these
business are being managed by Mr. Umesh Bharech in addition to
Mr. Poddar. Apart from these businesses, Mr. Poddar is also
director in Trishna Commercial Private Limited which is engaged in
Cut to Size and Wholesale Trading of Iron and Steel Products and
is being managed by Mr. Abhishek Sangai along with Mr. Shreya
Poddar.

Shri Bichitra Kar, Key Technician.

Shri Bichitra Kar, S/o of Shri Bishnu Chandra Kar, aged 45 years is
a graduate and is residing at Bera Bedi Sikhar Bagan, Rajarhat,
Gopalpur, Kolkata 700 136.
He has an experience of more than 20 years in this line of activity.
He is associated with ANJ Narrow Fabric Pvt. Ltd. as Key Technician
and now has given his consent to join Rungta Weaving and Dyeing
House Private Limited.
Being having an experience of more than 20 years, he very well
knows all factors required for proper functioning of machines. In
these years he has learnt, what problems can be faced in
operating these machineries and how to solve the same. He has a
complete idea of latest technologies available in the market and
how to make use of them. He has guided us on which machines
are to be installed depending upon their production and quality
specifications.
The company foresees a bright future under the leadership of Shri
Ajay Kumar Rungta, Shri Shreya Poddar, Shri Santosh Saraiwala
and Shri Bichitra Kar as the main heads.

BANKING PROFILE

BANKING PROFILE

Rungta Weaving and Dyeing House Private Limited is a newly

incorporated company with no bank account as of now.
However, their need based requirement for financing their project
is mentioned hereunder.

FACILITY TYPE

AMOUNT (RS IN LACS)

Term Loan

675.00

Cash Credit

6000.00

ILC / FLC

1500.00

TOTAL

8175.00

PROJECT PROFILE

PROJECT PROFILE
The company will be engaged in manufacturing Knitted Cotton
Fabrics, Narrow Woven Fabric Tape and Leggings. It proposes to go
for further value addition in the short term by getting into
manufacturing men and women briefs and vests and markets
them under its own brand name. The products are primarily used
in making hosiery like men and women briefs and vests, kids
wear, night wears, etc. The manufacturing unit will be located at
Krishnapur, Madanpur, Kemia Khamar Para (GP), Madhyamgram,
Dist 24 Parganas (N), Kolkata 700128, West Bengal.
The highlights for setting up unit in Kolkata, West Bengal are:
Location Advantage of Kolkata, having a good rail, air and
road connectivity with other parts of the country.
Easy availability of good quality raw material from nearby
states, cheap labour and other industrial facilities like power,
communication, etc.
Kolkata is referred to as one of the major centers for Cotton
based Hosiery Garments in India.

HUMAN RESOURCE MANAGEMENT

HUMAN RESOURCE MANAGAMENT

MANPOWER:

Employees are the Hands of Business

An estimate of manpower allowing for leave, absenteeism,
sickness and holiday for soot and efficient operation of different
sections of the plant including its administrative and commercial
department, has been prepared purely on technical and
management ground primarily to indicate the order of manpower
requirement, to provide guidelines for initiating action on
recruitment and to make an estimate of the annual salary and
wages bill, which will reflect on the production cost estimate.
Employee plays an important role in the success of any business.
It is therefore important for the management to give much
attention to them and provide better service to them. This will
increase the efficiency and morale of the employee. Concern will
provide basic services like Safety Facilities, i.e. First Aid and
Medical Facilities, Newspapers and Magazines, Withdrawal
Facilities, etc to the employees.

Firm has estimated total manpower at 105 including

administrative and technical staff. Details of manpower
requirement for all the working shifts taken together are as under:
Particulars
Employees

No.

of

Administrative Staff
General Manager

Sales and Marketing Staff

Accounts & Finance

Technical Staff
Production Manager

Electrical In charge

Mechanical In charge

Other Labour and Staff

Operator

28

Asst. Operator

10

Helper

10

Checking and Packing Staff

20

Quality Control Engineer

Security

Peon

Total

105

MARKETING ARRANGEMENT

MARKETING ARRANGEMENT

Cotton Fabrics and Narrow Woven Fabric Tapes are industrial

products and does not require mass consumer marketing and this
will be marketed directly with the hosiery manufacturers.
However Leggings require mass consumer marketing and this will
be marketed to the wholesalers and various retailers. The
company will have a separate marketing department consisting of
marketing executives and headed by Mr. Saraiwala who will follow
up with the customers for taking the orders and then passing the
same to the production manager for execution.

CHANNEL OF DISTRIBUTION:
The Concern will have a direct channel of distribution, i.e. no
middleman between Suppliers and Customers. This will not only
help in reducing cost and maximize profit, but will help the
concern in maintaining closer relationship with customers and this
will enhance the creditability of the concern.

INDUSTRY ANALYSIS

INDUSTRY ANALYSIS
The demand for the product is ever increasing because of the
constant growth in cotton based hosiery garment making unit,
not only in India, but worldwide. Cotton Fabrics and Narrow
Woven Fabric Tape are the most essential inputs for hosiery
units and thus its demand is ever lasting.
DOMESTIC DEMAND:
State Government is taking constant endeavor to promote
hosiery units, the result of which is huge demand for elastic
tapes and cotton knitted fabrics. Firm will first cater to the
domestic demand for its product before implementing any
export planning. Company has already applied for Import
Export Code.
Expected buyers of the products are:
NEW LOOK: brassieres
NODY CARE: ladies and children inner wear
GROVER SONS: ladies and children inner wear
RUPA: ladies and men inner garments
OMTEX: sports and surgical accessories

 STATES MAN FASHION: ladies and gents

garments
LUX: ladies and men inner garments
DOLLAR: ladies and men inner garments
SARAS: Men inner wear.
EXPORT DEMAND:
The demand of this product is very good even outside India, as
hosiery making units there find our products cheaper without
any kind of compromise in the quality. Seeing the huge
potential firm plans to export its product after catering to the
domestic market in India. Expected Buyers abroad are as
follows:
1. SARA LEE Ladies and Men inner garments.
2. MULTIGROUP Ladies and Girls Inner wear.
3. EMBEE GARMENT: Ladies &Gents inner wear

DETAILS AND USE

OF PRODUCT

DETAILS AND USE OF PRODUCT

1 Kg of Cotton Yarn is required to manufacture 1 Kg of Knitted

Cotton Fabrics. The cotton yarn is knitted into cotton fabrics in
the interlock circular knitting machines. 1 meter of Narrow
Woven Fabric Tape weighs 20 gram (approx) as it forms the
basic overall market demand and this consists of 75% Polyester
Yarn and 30% Natural Latex Heat Resistance Rubber Threads.
The polyester yarn and rubber are woven into narrow woven
fabric tape with the brand name of the customer woven on top
of it with the help of computerized jacquard machines. Both of
these products are consumed by the cotton based hosiery
garments manufacturing unit. The end product obtained by
using our product will be in the form of men and women inner
wears which is largely used in the entire country.

1 pc of Legging weighs 200 grams of cotton fabrics made from

cotton yarn with lycra finishing. The cotton yarn with lycra
finishing is knitted into cotton fabrics which is then processed
(cutting and stitching) into leggings which is directly used by
the female consumers in wearing. The demand for leggings
have increased over a period of time and is now one of the
most prime requirement by majority of rural female population
in their daily wear requirements.

Other end uses of Narrow Woven Fabric Tape:

1.
2.
3.
4.

Used in Hand Gloves.

Used in Denim Jeans for men and women.
Ladies, Men and Kids wear
Sports Wears

Other end uses of Cotton Fabrics:

1.
2.
3.
4.

Night Wears
Kids Wear
Sports Wear
Cots Wool Wear

COST OF THE PROJECT &

MEANS OF FINANCE

COST OF THE PROJECT AND MEANS OF FINANCE

Total cost of the project and the means of finance of the

proposed project are as follows:
COST OF THE PROJECT
Land, Building & Civil

AMOUNT (RS IN LACS)

929.00

Construction
Plant & Machinery
Computer & Peripherals
Electrical Installation
Furniture
Working Capital
Total

884.40
4.30
10.00
6.50
11462.46
13296.66

MEANS OF FINANCE
Promoters Contribution
Term Loan
Cash Credit
ILC/FLC
Total

AMOUNT (RS IN LACS)

5121.66
675.00
6000.00
1500.00
13296.66

CREDIT ASSESSMENT

CREDIT ASSESSMENT
ASSESSMENT OF TERM LOAN:
The company proposes to buy land and do the civil construction
from the promoters own capital and take term loan for the
installation, erection and commissioning of plant and machinery
along with computer and peripherals, electrical installations and
furniture and fixtures. The company proposes for a term loan of
Rs 675.00 Lacs for the above.

ASSESSMENT OF WORKING CAPITAL:

The Working Capital has been assessed at Rs. 11462.46 Lacs. The
assessment of the same has been done in the following manner:
Stock

Rs 5527.48 Lacs

Debtors

Rs 6209.42 Lacs

Creditors

Rs 274.44 Lacs

Total

Rs 11462.46 Lacs

Margin of 35%

Rs 3962.46 Lacs

Cash Credit

Rs 6000.00 Lacs

ILC/FLC

Rs 1500.00 Lacs

HOLDING PERIOD ANALYSIS:

1. The average holding period of raw material is taken as 45
days, which is in line with the nature of business and
industry benchmarks. The order processing time is 5 days,
and it takes approximately 10 days to get the raw materials
from Maharashtra and South. Additionally, it is always
advisable to keep MOS stock for further 30 days.
2. The company proposes to have a WIP of 20 days approx
which will include cotton fabrics sent outside for dyeing
purpose.

3. The company proposes to keep a minimum inventory of 25

days in order to meet special demands of the customers and
this is as per industry average.
4. Domestic Receivables level are for 75 days in terms of
normal credit policy prevailing for the industry.
5. There are no creditors in this line of activity, as one can
procure raw material only on making advance payment, but
still company has proposed a creditor of 5 days as it might
procure materials from wholesalers and local suppliers at the
time of urgent needs on credit and company also proposes
to procure materials on LC both ILC and FLC.

COST OF PRODUCTION AND

PROFITABILITY CONSIDERATION

COST

OF

PRODUCTION

AND

PROFITABILITY

CONSIDERATION
The estimated cost of production and profitability ratios for the
project during the years of operations has been estimated and
the profitability projections are based on the technical and
commercial data furnished below:

Name
Product

of

the Annual
Capacity

Installed Selling Price /

Unit

Knitted Cotton Fabric

57,60,000.00 Kgs

Rs 450.00 / Kg

Narrow Woven Fabric 4,83,84,000.00 Mt

Tape

Rs 10 / Meter

Leggings

Rs 185.00 / Pc

92,16,000.00 Pcs

Interest on Term Loan and on Working Capital Loan has been

taken @ 12 % and ILC / FLC is proposed to be charged @ 1%.
Attainment of plant capacity depends on various activities. It
needs co-ordination among different section and maximum
capacity can be achieved after few years. Capacity Utilization
also depends on power availability. Considering all parameters,
capacity utilization has been assessed at 70% for the two year,
80% for the third year and 90% from fourth year onwards.
Company will be able to make commercial production for only
three months in the first year of its operation.

RAW MATERIALS

RAW MATERIAL
The Major Raw Materials required by the company are

1. Cotton Yarn This is the prime raw material required for both
cotton fabrics as well as leggings. Cotton Yarn mills are mostly
situated in Southern India and the company proposes to procure
the same from them.
2. Polyester Yarn Available in abundance in the state of
Maharashtra and Southern India. Company proposes to procure
this raw material from these states and this is one of the most
important raw materials in the manufacturing of Narrow Woven
Fabric Tape.
3. Heat Resistance Rubber Threads - Majority of the Rubber
manufacturing units are situated in the Southern India.
Alternatively company proposes to procure these materials from
Thailand and Malaysia also.

TECHNOLOGY USED

TECHNOLOGIES USED
Cotton Fabrics
Cotton Yarn is loaded in the sinker machine which has needles
fixed to the rim of a rotating cylinder. As the cylinder turns, the
needles work their way from stitch to stitch producing tubular
fabric. Its width is regulated by the size of the cylinder. Once the
desired weight of the cotton fabric is obtained it is cut off and

separated. The knitted fabric is then sent for dyeing on job work
as per customers specification. Once dyed fabric is received it is
then sent for heat setting so as to give proper shape to the fabric
by ironing which makes it usable for further processing down the
line.

Narrow Woven Fabric Tape

The Raw Material passes through various stages in Woven fabric
tape Unit, which is as follows:
1. Warping:
Polyester yarn passes through warping machine. Here
different colors of Polyester yarns are warped in single beam
so as to meet customer requirement.
2. Rubber Covering:
The yarn is then passed through the rubber-covering
machine. Yarns are covered with rubber on both sides. After
this stage semi finished goods are ready.
3. Weaving:
The rubber covered yarn gets weaved at this stage. The
product is now ready as elastic tapes. Customers Brand
Names are weaved on them with the help of Jacquard
Machines as required by the consumers.
4. Finishing:
Ironing is done to enhance the marketability of the product.
5. Checking and Measuring:
Quality of the product is checked by the production in
charge. Tapes are then measured in meters.
6. Festooning:
After measuring the product is winded for the purpose of
packing in 500 mts per cartoon.
7. Packing:
The product is now packed by the packing department and
then stored in ware house.

Leggings
Cotton Yarn with Lycra finishing is loaded in the interlock circular
knitting machine which has needles fixed to the rim of a rotating
cylinder. As the cylinder turns, the needles work their way from
stitch to stitch producing tubular fabric. Its width is regulated by
the size of the cylinder. Once the desired weight of the cotton
fabric is obtained it is cut off and separated. The knitted fabric is
then sent for dyeing on job work as per customers specification.

Once dyed fabric is received cutting and stitching work is carried

on the job wok basis. After stitching ironing, checking and packing
is done. Once it is done, leggings are ready to be dispatched to
the customers.

GOVERNMENT INITIATIVE

GOVERNMENT INITIATIVE

Kolkata and Tirupur are the two major centers for Cotton based
Hosiery products. It is gratifying to note that West Bengals
Hosiery Industry is gradually awakening. Many Hosiery Knitwear
units in State have started taking interest in exports and their
scales of operation have expanded many fold.
The Union Ministry of Textiles deserves appreciation for their
decision to set up 25 Integrated Textile Parks in the country with
one of them reported to be earmarked for West Bengal. Two such
parks have already started functioning in Gujarat and two more
are under construction. A Textile Park has already been set up at
Tirupur.
The State Government is reported to be ready to provide any
support and the Hosiery Association in the State is eager to offer
all possible cooperation.
The infrastructure facilities in West Bengal have started
improving. New roads are being constructed, new bridges are
being built, projects for new ports and cargo handling airports are
under consideration and power supply position is better as
compared to many other states of the country. A special focus is
been given to improve the logistics system.
If concerted efforts are made by all concerned the
entrepreneurs, the workers, and the government there is no
reason why hosiery industry cannot achieve robust growth. Huge
potential is there, but it is just the question of harnessing it in the
right earnest.
There are various capital and interest subsidy in this segment
from Central and State Government which has not been
considered in this project. All these subsidies will be directly
deposited in the Term Loan Account or will be kept as Fixed

Deposit in Lien Account as the affect of both has not been

considered in the Income Statement.

FINANCIAL ASSESSMENT