A

PROJECT PROFILE

ON

INDUSTRIAL HAND GLOVES

2010-2011

Prepared by
MSME DEVELOPMENT INSTITUTE,
Ministry Of MSME
Govt. of India
34, Industrial Estate, Nunhai
Agra-282006 (U. P )
Phone : 91-562-2280879 Telefax : 91-562-2280882
E-mail dcdi-agra@dcmsme.gov.in Website: www.msmediagra.gov.in

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 Project Profile on Industrial Hand Gloves
PRODUCT CODE : 292007000

QUALITY STANDARD : As per IS 2573:1963/ IS 2574:1963/

IS 3575:1963

PRODUCTION CAPACITY :

QUANTITY : 75,000 Pairs PA

VALUE : Rs. 30,00,000/-

YEAR OF PREPARATION : 2010-11

PREPARED BY : Leather Division

MSME Development Institute
34, Industrial Estate, Nunhai,
Agra-282006
Ph: 2280879, Fax (0562) 2280882
E-MAIL– dcdi-agra@dcmsme.gov.in
***********************************************************************************

(I) INTRODUCTION
Industrial hand Gloves serve as an Item of protective apparel for workers in factories.
Hand gloves are of various types and sizes. Fast moving sizes are 14”, 16” and 18”. The material that go
into the production of industrial hand gloves vary from cotton fabric and asbestos to variety of leathers.
Leather, however, since supreme in the production of industrial hand gloves. Amongst Leathers,
Chrome Tanned Split Leather is predominantly in use possibly because of its cheap prices and peculiar
qualities needed for hand gloves as compared to other kind of Leather. Chrome tanned split leather
imparts special qualities to withstand roughness and gives enough flexibility and softness for hand to
move in the gloves easily and swiftly while working in the workshop. Such industrial hand gloves are
widely used in the industries, railways and defence. Due to rapid industrialization and expansion of
railways, the use of industrial hand gloves is expected to grow considerably

(II) MARKET POTENTIAL

Looking to the international and domestic demand, it appears that we are not in a
position to cope up with the demand and as such there is good scope for starting new units. Fortunately,
the raw material is easily available in the country particularly split leather due to production of finished
leather based on hides.

(III) SCOPE
This industry is a non polluting and labour intensive industry. Therefore, it has
tremendous scope and this type of units can be started anywhere in rural or urban area.

( IV ) BASIS & PRESUMPTION

1. The capacity is based upon monthly production 6,250 pairs of industrial hand gloves on
Single Shift of 8-hrs. a day and 25-working days in a month.

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 2. It is presumed that Ist year, the capacity utilization will be 70% followed by 85% in the next
year and 100% in the subsequent year.
3. The rates quoted in respect of salaries and wages for skilled worker and others are on the
basis of minimum rate in the state of U.P.
4. Interest rate for the fixed and working capital has been taken @ 14% on an average whether
financed by the Bankers or Financial Institutional.
5. The margin money required is minimum (25% of the total capital investment).
6. Pay –Back period may be five year after the initial gestation period.
7. The gestation period in implementation of the project may be to the tune of 6 to 9 months
which includes making all arrangements completion of all formalities, market surveys and
tie-ups etc.
8. The Break even point of the scheme has been calculated on full capacity utilization basis.
considering 3 months working capital.

(V). IMPLEMENTATION SCHEDULE:

It will take 9 months to one year to complete all the formalities before starting commercial
production.

(VI) PRODUCTION DETAIL AND PROCESS OF MANUFACTUFRE :-

The leather is checked for uniform thickness, holes and flay cuts, if any. It is the marked
with the pattern and the cut with the help of scissors or clicking knife into different components. After
stitching all the components suitably, the gloves are turned inside out. The gloves are then ready for
packing and dispatch.

( VII ) QUALITY CONTROL AND STANDARD:

Great care has to be taken in making these items as the appearance and finish of these items is
very important. There are produced as per IS 2573:1963 or IS 2574:1963 or IS 3575:1963
Specifications.

(VIII) PRODUCTION CAPACITY (PER ANNUM)

ITEM QUANTITY VALUE

Industrial Hand Gloves 75,000 Pairs Rs. 30,00,000/-

(IX) POLLUTION CONTROL:

This industry does not create any kind of pollution and as such there is no need to take any
preventive measures for pollution control.

(X) POWER REQUIREMENT:

Electricity Load Required 3 KW

( XI ) FINANCIAL ASPECTS:

1. Fixed Capital

(A) LAND & BUILDING:

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 Rented Premises 1000 Sq ft Rs. 5,000/- PM

(B) MACHINES & EQUIPMENTS:

S.No. Description Nos. Ind/Imp Total Value

(Rs.)
1. Flat Bed Single Needle Sewing Machine 5 Ind 35,000.00
with Motor and starter
2. Cylinder Bed Sewing Machine
Motor & Starter 2 Ind 30,000.00
3. Tools and Equipments 5,000.00
7. Furniture and office equipments 25,000.00
8. Generator 1 Ind 15,000.00
9. Installation and electrification charges 10,000.00
TOTAL 1,20,000.00

(C) PRE OPERATIVE EXPENSES:

Pre operative Expenses 10,000.00

Total (A+B+C) : Rs. 1,30,000.00

2. Working Capital

(i) Staff and Labor (per month):-

S.No. Description No. Salary @ Total Value (Rs.)

i) Proprietor/ Production Man. 1 8,000 8,000.00
ii) Clerk-cum-Cashier 1 4,000 4,000.00
iii) Salesman 1 5,000 5,000.00
iv) Skilled Workers 9 4,000 36,000.00
v) Helpers 4 2,500 10,000.00
vii) Sweeper (Part Time) 1 1,000 1,000.00
ix) Watchman 2 3,000 6,000.00
Total 70,000.00
Add 20 % Per quarters 14,000.00
G.Total 84,000.00

(ii) Raw Material (per month):-

S.No. Description Qty. Rate(Rs.) Value (Rs.)

i). Chrome tanned split Leather 1786 Kgs 45.00 per Kg 80,370.00
@ 3.5 Pairs per Kg
ii). Thread 1.00 per pair 6,250.00
iii) Packing Materials 2.00 per pair 12,500.00
Total Rs. 99,120.00

(iii) UTILITIES (p.m.)

i) Power 2,000.00
ii) Fuel 1,000.00
iii) Water 300.00
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 Total: 3,300.00
(iv) OTHER EXPENSES (P.m.)
i) Postage and Telephones 500.00
ii) Transport 1,000.00
iii) Consumable store 500.00
iv) Sales Expenses 1,000.00
v) Entertainment 1,000.00
vi) Rent 5,000.00
vi) Other Contingencies 500.00
Total 9,500.00

(XI) WORKING CAPITAL (PER MONTH)

i) Salaries and wages 84,000.00
ii) Raw Material and chemicals 99,120.00
iii) Utilities 3,300.00
iv) Other Expenses 9,500.00
Total Rs 1,95,920.00
(XII) WORKING CAPITAL ( FOR THREE MONTHS ) :-
Rs. 1,95,920X3 = 5,87,760.00

(XIII) TOTAL CAPITAL INVESTMENT:-

Fixed capital: 1,30,000.00
Working capital for 3 months: 5,87,760.00
Total Rs 7,17,760.00
Say Rs. 7,18,000.00

(XIV) COST OF PRODUCTION (PER ANNUM):-

(a) Total Recurring expenditure 23,51,040.00
(b) Depreciation on Machinery @ 10% 9,000.00
(c) Depreciation on office and Furniture etc. @ 20% 6,000.00
(d) Interest on Total Capital Investment @ 14% 1,00,520.00
Total: 24,66,560.00

(XV) TOTAL SALES ( PER ANNUM):-

Sl. No. Item Rate per pair Value (Rs.)

1. Industrial Hand Gloves 75,000 pairs 40./- 30,00,000.00
TOTAL 30,00,000.00

(XVI) PROFITABILITY( Per Annum):-

Sales - Cost of Production
30,00,000 – 24,66,560= Rs 5,33,440
(XVII) NET PROFIT RATIO:-
Profit x 100
Sales per Annum
5,33,440X 100
30,00,000
= 17.78 %

(XVIII) RATE OF RETURN:-

Profit x 100
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 Total investment
5,33,440X 100
7,18,000
= 74.30
(XIX) BREAK EVEN POINT: -
Fixed Cost (per annum)
(a) 40 % of Salaries 4,03,200.00
(b) 40 % of Utilities 15,840.00
(c) 40 % of other expenses 21,600.00
(c) Depreciation 15,000.00
(d) Rent 60,000.00
(d) Interest on total capital Investment 1,00,520.00

Total Rs 6,16,160.00

Break Even Point = Fixed Cost x 100

Fixed cost + profit per year.

= 6,16,160 X 100
6,16,160 + 5,33,440
53.59%

(XX) LIST OF MACHINERYAND RAW MATERIAL SUPPLIERS

1. M/s Raj Machine Home

Lashkar Pur, Agra

2. M/s Peelu Machines

Meera Hussaini Chauraha,
Agra.

3. M/s Shiva Sewing Machine Co.

Pipal Mandi, Agra.

4. M/s Hind Sewing Machines

Pipal Mandi, Agra.

5. M/s Tata Leathers

Dev Nagar, Bye Pass Road, Agra

6. M/s Grover Leather Stores

Hing Ki Mandi.

7. M/s Bharat Material Stores

Hing Ki Mandi, Agra