PROJECT ON

BUSSINES
S PLAN &
SETUP

SUBMITTED TO: MRS. RUCHI

CHAUHAN
SUBMITTED BY: ANTRA MATHUR

ENTREPRENEURSHI ROLL NO. 1595304003

COURSE: B.SC. HOMESCIENCE

P AND MOTIVATION
 Acknowledgement

I would like to thank my Entrepreneurship and Motivation Teacher Mrs.

Ruchi Chauhan for helping me out with my selection for the project. She
also helped me with ideas and concepts for the project.

My parents who encouraged me and helped finding the details and

providing me with contacts and helping me with the field reports. And
they provide me ideas for my product and would discuss problem
anytime.
Executive Summary
 Business Type – Private Limited Company

 Name of the firm - INBORN Jeans

 Address of the company - “INBORN Jeans”, Shastri Nagar, Plot No. 122,
Ghaziabad, Uttar Pradesh (NCR)

 Scale of the organization - Small scale industry

 Key Partner - XYZ

 Estimated cost of the project - Rs. 60, 41,500

 Market Area - Limited to Uttar Pradesh & NCR

 Main objectives:-

1. High quality customer service & satisfaction.

2. Consistence high standard of production.
3. Continuous quality improvement.
4. Employee’s welfare and development.
5. Learn, simple, effective & efficient process.

 Tagline: - jeans in your genes.

 Unique selling proposition:- “Be You”

 Targeted group :- All Age Group

 Mission – getting profited through making comfortable and affordable jeans.

Introduction
Jeans are trousers made from denim or dungaree cloth. Often the term "jeans" refers
to a particular style of trousers called "blue jeans" and invented by Jacob Davis and
Levi Strauss in 1873. Starting in the 1950s, jeans, originally designed for cowboys,
became popular among teenagers, especially members of the greaser subculture.

Jeans were first designed as durable trousers for farm workers and miners in the
states of the American west. A Nevada tailor, Jacob Davis, had the idea of using
copper bolt sat the corner of the pockets to make them stronger. They became
popular instantly and soon many people bought them.

Although Davis knew that he had a great product which many people wanted to
buy, he didn’t have the money to patent it. He asked Levi Strauss, who supplied
him with cloth, to help him out. The two worked together and started making
jeans out of denim, which was more comfortable and could be easily stretched.
It also became softer as it got older. They were dyed with indigo because it did
not go through the cloth like other dyes do.

Initially, jeans were simply sturdy trousers worn by factory workers. During this
period, men's jeans had the zipper down the front, whereas women's jeans had
the zipper down the right side.

After James Dean popularized them in the movie Rebel without a Cause,
wearing jeans became a symbol of youth rebellion during the 1950s. Because of
this, they were sometimes banned in theaters, restaurants and schools. During
the 1960s the wearing of jeans became more acceptable, and by the 1970s it had
become general fashion in the United States for casual wear.
In 1885, jeans could be bought in the US for $1.50 .Today, a pair of durable
jeans can be purchased in the United States for about $40.

Denim refers to the fabric and Jeans refers to pants made out of denim. So
actually, Denim can mean either pants, skirts, jackets. Jeans mean specifically
denim pants.
COMPETITORS
 1
. Levi Strauss
Levi Strauss & Co. also known as LS&CO or simply Levi’s is a privately held
American clothing company known worldwide for
its Levi's brand of denim jeans. It was founded in 1873 when Levi Strauss came
from Buttenheim, Bavaria, to San Francisco, California to open a west coast
branch of his brothers' New York dry goods business. In 1873 Levi Strauss and
tailor Jacob Davis received
a U.S. patent to make the first riveted men's work pants out of denim:
the first blue jeans.

The price range:-

Denizen- 1099 to rs. 2999

Sykes- rs. 3000 to rs. 9000

Parent Company Levi’s Strauss and Co.

Category Apparel and Accessories

Sector Lifestyle and Retail

Go Forth; Levis. Original jeans. Original people; A style for every

Tagline/ Slogan Story; Quality never goes out of style

USP Oldest Jeans Brand yet modern. (curve ID, waste<less)

Segment Upper class and Upper Middle Class

Target Group People who want a blend of style and Comfort

Positioning Outgoing and stylish quality jeans

1. Strong Brand Name and popular top-of-the-mind brand

2. Expertise in Jeans Industry

3. Distribution Channels and Global Outsourcing

4. Has over 470 self-operated stored globally managed by 16000+
Employees
5. Levi’s marketing includes retro popular songs in its TVC
ad campaigns
6. Over 60 and 25 manufacturing plants in US and abroad
Strength Respectively

1. High Pressures of Brand Protection

Weakness 2. Increasing competition means limited scope for growth
 2. Pepe jeans
Pepe Jeans London is a denim and casual wear jeans brand that was
established in the Portobello Road area of London in 1973. From its origins as
a tiny market stall to more than half a US billion dollar brand, Pepe has
transformed itself into a Jeanswear label found throughout Europe.

In 1973 it was originally just a weekend road side stall on the Portobello Road
Market located in west London established by three brothers: Nitin Shah, Arun
Shah and Milan Shah. Nitin and his two brothers later started their own company
Sholemay Ltd trading, as Pepe Jeans. The brand was named "Pepe", because it was
a short word that could be written without much trouble.

Pepe Jeans was launched in India in 1989. The brand is currently a leading player
in the premium jeans and casual wear segment, enjoying a market share of more
than 25 percent.

The price range: starts from rs 999 to rs 3299.

Parent Company Pepe Jeans Incorporation

Category Apparel and accessories

Sector Lifestyle and Retail

Tagline/ Slogan Pepe Jeans London

A brand, which is really innovative, stylish changing with variety at an

affordable price. (Animal prints , adults and children section, season
USP Looks)

Men and women who like contemporary style of fashion with a

Segment Rebellious attitude.

Target Group Young urban Men and women from the upper middle class

Pepe Jeans is a premium and international brand, which houses casual

Positioning wear with a heart of London in it.

1. Pepe Jeans is present over 100 countries and employs more than
5000 employees all over the world.

2. The brand had a different view of selling jeans and was against
hanging them and even fought with the retailers to change this
fashion, which was a big hit.

3. The brand has entered the elite segment of the top four denim
producers in the world.
Strength 4. The brand has signed international celebrity brand ambassadors
Which enhances the brand equity.

1. Constantly changing fashion trends means inventory issues

Weakness 2. The brand has several competitors hence high brand switching
 3. Lee
Lee is an American brand of denim jeans, first produced in 1889 in Salina,
Kansas. The company is owned by VF Corporation, the largest apparel company
in the world. Its headquarters is currently in Merriam, Kansas, just outside of
Kansas City, Missouri. The company states that they are an international retailer
and manufacturer of casual wear and work wear and that they have more than 400
employees in the United States. In Australasia, the brand is owned by Pacific
Brands since 2007. The company was formed in 1889 by Henry David Lee as the
Lee Mercantile Company at Salina, Kansas producing dungarees and jackets.

Price starts from: rs 1999 to rs. 2899

Parent Company VF Corporation

Category Apparel and accessories

Sector Lifestyle and Retail

Tagline/ Slogan A Lee is you; A Lee Don’t Lie; Own the moment

A company which has rich heritage, Innovative designs and socially

responsible organization.( fit finder, vibrant colors offered , for rough
USP use, clearance offers)

Men and Women who want to wear stylish and innovative jeans at an
Segment Affordable price.

Target Group Young urban men and women from the upper middle class

A stylish brand with a sporty look with an American imaginary to the

Positioning Brand.

1. The brand has over 100 stores all over the world and employs over
500 people in the USA.
2. The brand has been known as one of the top jeans producers all
over the world.
3. The brand is known for its innovation throughout the century and
Known for inventing the zipper fly jeans.
4. Lee was one of the first jeans brand to start advertising through
Strength television and has continued extensive advertising throughout.

1. The brand has not established itself in the e-commerce arena

that well in Asia where the brand has a significant market share.
2. The brand has had problems in distribution of the updated stocks
Weakness in parts of Asia and Europe.
 4. Wrangler
Wrangler is an American manufacturer of jeans and other clothing items. The
brand is owned by the VF Corporation, who also own Lee, Jan Sport, and The
North Face, among others. Its headquarters is in downtown Greensboro, North
Carolina in the United States, with production plants in a variety of locations
throughout the world. Wrangler Jeans were first made by Blue Bell, who acquired
the brand when they took over Casey Jones in the mid-1940s. Blue Bell employed
Bernard Lichtenstein ('Rodeo Ben'), a Polish tailor from Łódź who worked closely
with cowboys, to help design jeans suitable for rodeo use

Price from: rs. 1695 to rs. 3295

Parent Company VF Corporation

Category Apparel and Accessories

Sector Lifestyle and Retail

Tagline/ Slogan No matter where the destination, where your heart out

Comfort and style at affordable rates. (Jeans and jackets, dominated

USP By men section clothes, cowboy, rock cult cut)

Segment Casual wear

Target Group Men and women from the urban upper middle class

Positioning Tough and rugged, lasting quality

1. Wrangler has a wide distribution channel. They sell their jeans at

mass merchandisers such as Walmart and Target.

2. They also have their own flagship specialty stores located at many
places

3. Strong brand presence

Strength 4. Good marketing and advertising at stores and print ads

1. Competition from standalone specialty stores means limited market

Share growth
Weakness 2. Lot of options available means high brand switching
 5. Diesel
Diesel S.p.A. is an Italian design company. It is best known for luxury, prêt-a-
porter clothing aimed at the young adult market. The company is owned by its
founder Renzo Rosso, and is based in the former Laverda building area in
Breganze, northern Italy. The company was founded by Renzo Rosso in 1978.
Diesel's milestone years include 1985, 1988 the hiring straight out of Fashion
College of ex-head designer and Creative Director Wilbert Das, 1991
(Beginning of the international marketing strategy) and 1996 (opening of
Diesel's first flagship store on New York City's Lexington Avenue)

Price starting from: Rs 899 to Rs. 2999

Parent Company Diesel S.p.A.

Category Apparel and Accessories

Sector Lifestyle and Retail

Tagline/ Slogan For Successful Living

USP Complete lifestyle brand. (Diesel black gold, 55dsl)

Segment Young men, women and children who are very fashion conscious

Target Group Urban upper-middle and upper class

Positioning A complete fashionable lifestyle brand

1. A complete lifestyle brand known for its luxury and pret-a-

porter clothing aimed at young adult market
2. The exclusiveness strategy which saw them intentionally shrink
From 10000 points of sale 5000 points of sale
3. Strong advertising strategy which sees them building stories
around pictures.
4. The diversification into other merchandise like sunglasses, watches,
Perfumes, footwear makes it a complete lifestyle brand
Strength 5. Has over 2500 employees serving in 80 countries

1. Their main product Diesel jeans is expensive and only available to

a select few
2. Majority of sales revenues come from designer jeans. A slight dip
in the demand of it may see a major drop in sales
Weakness 3. Replica products and fake Limitation affects brand image
Why have I selected this product?

Jeans is for everyone, young and old. If you have an innate eye for fashion, a
jeans company is one business you can start.

Knowing what types of jeans sell best. Survey, checking magazines to know what
fashion icons and celebrities wear, attending fashion shows to form network within
the industry, and reading fashion reviews for updates) are the knack . Customers
usually look for style first then narrow it down to the color of their choice and the
size that fits them.

Jeans is a huge trend in nowadays as it is very comfortable, durable and preferred

by many people not considering the age bar.

The production and manufacturing of jeans is also very easy as no particular

license or permission is to be obtained for producing the jeans. (For setting up a
factory or shop licenses and permission are mandatory in all the sectors).
Obviously at the end there is a quality check which is again mandatory in all goods
after their production.

Thus manufacturing of jeans is preferred as not many legal restrictions are

imposed and has a mass and growing demand for them.
Nature of the Product

 Product is an element of marketing mix representing the tangible and

intangible elements offered to the customer in order to satisfy his need.

 Product is the most visible component of the marketing mix.

 Customers do not buy a product but rather they buy what the product does
for them ( core, expected and augmented benefits)

 Jeans is a tangible good with associated attributes. Jeans is a consumer

good i.e. it is used by the consumers directly.

 It is classified as a shopping product which means it is purchased after a

comparative analysis of quality, price, warranty etc. of competitive brands.
Raw Material:
The main raw materials required to produce the Jeans are:-

Denim & cotton clothes, thread, button, rivet, zip, stickers.

Generally, the raw material of Jeans is available from outside NCR.

SERIAL NO. MATERIAL SOURCES

1. Denim cloth Mumbai

2. Cotton cloth Ahmedabad

3. Thread Sirmour

4. Button Delhi

5. Rivet Delhi

6. Zip Delhi

7. Stickers Ahmedabad

8. Plastic Ahmedabad

9. washing acid Ahmedabad

The Manufacturing Process
A. Jeans’ manufacturer - Sewing factory:-

First, sewing factory must select the right denim fabric, make many pair of
trousers leg, then send them to the washing factory to check the shrinkage
rate.

Second, to design or prepare the urgently needed accessories such as trade mark,
washing mark, size mark, printing, embroidery, etc. the less urgent ones can be done
next time.

B. Jeans’ manufacturer--Embroidery and printing factory:-

After the denim fabric was selected, crafts factory must start to make sample for
embroidery and printing till approved, then immediately start production.

C. Jeans’ manufacturer-Crafts factory:-

When the jeans are sewed, designing first by washing plant, then crafts
factory will treat the jeans by monkey wash, sand blast, winkle treatment, etc.
The crafts must be the same as customer’s requirements.

D. Jean’s manufacturer -Washing factory:-

Jeans washing is of critical importance for all the work, if this is done
successfully, the jeans are almost finished.

E. Final treatment:-

A through quality check must be performed after the final treatment is finished, final
treatment are leather label stitching, ironing, rivet punching, logo hanging,
excessive thread cutting, packing, etc. final treatment are done by the sewing
factory or washing factory.
Different varieties of jeans manufactured
by our company:-
 Right hand twill - Using uniform yarns, this weave is considered more
rugged.
 Left hand twill - The weave runs diagonally, resulting in a softer, loftier
feel.
 Ring Spun Denim - The original denim fabric, which is known for its
characteristic slubs.
 Open-End Denim - The most popular type of denim that results in a
consistent yarn thickness.
 Dirty denim - Filler yarns are brown (instead of natural which is woven with
the indigo) which gives the denim a "dirty" appearance
 Stonewashed - Most jeans today are stonewashed, but not in pumice
stones like the original method. Now enzymes, sand, ceramic balls
and other methods give jeans their worn look.
 Flares - Slim through the legs, flaring right above the ankle -- to about an
21+ inch opening.
 Bellbottoms - Start to flare at the knee, resulting in a 22+ inch leg opening.
 Peg legs - Extremely narrow leg opening (very '80s)
 Boot cut - Slim through the legs, with a slight flare at the ankle to
accommodate a boot (about a 16-18 inch opening)

The product starts from the range of Rs. 400 for the customers and goes till Rs.
1500 depending upon the cut, variety and wash of the denim.
Branding
Branding is a process of assigning a distinctive name or a symbol to a product by
which it is to be known and remembered.

The company’s brand has been named as INBORN..!! as our company is targeting
the masses of all income levels and wants our jeans to not just be used by
the urban crowd but also the rural crowd and people with comparatively less
income as India is a population with 70% people situated in the rural area.
With the production being in large scale the cost will also (economically) come
down.
As the company has just started the production takes place in small scale. The
brand name has been registered and so is the tagline and logo. So for trademarks and
branding of the jeans the above logo is used.
The reason behind the logo is that, blue is a universal color and very
passive. Even people with color blindness can identify it and the red implies that it
runs in your genes, your blood.

The tagline “jeans in your genes” imply that every person can afford and
wear the jeans manufactured by our company. We would like to make our jeans a
part yourselves just as your genes.

Our motive is to make our companies jeans popular to the masses at an affordable
rate with the best quality possible.
Product Usage:
Very frequent use of the jeans on almost all of the major occasions including
festivals, Parties, and other important Festivals and Events.
Heavily used by the school and college students.

Purchase Influence:

Purchasing decision making is based on individual preferences which can lead to

the same product among other individuals as well. For instance if a youngster
purchase a particular brand of jeans he/she can influence his or her friends or
relatives to purchase the same product. Word of mouth is also an effective means
of promoting sales of any product.

Life Style of the Users:

Life style does matter a lot on the purchase of a product. For example if a student
prefers jeans in his life style then his obviously his consumption for jeans is
certainly more than a person who wears jeans occasionally. Similarly the social
class level also matters in the purchases. The upper class usually go for the quality,
fashion and status while the lowers are more conscious to price.

Market Attractiveness Factors:

Differentiated cuts and styles of inborn!! Jeans allow us to provide a handsome

look to our customers.
The company can make exclusive designs of inborn!! Jeans for showbiz and
fashion industry and by doing advertising of inborn!! Jeans through actors
Price of the product

The term “price” denotes the money value of a product or service. It is the amount
of money the seller is asking for the product he offer for sale or the amount which
buyers are to pay for it.

Price is an important element in the marketing mix of a firm and affects other
components of the marketing mix.

The price of the item is different for the wholesalers and customers. Customers
commonly buy jeans in number of units but the wholesalers buy in bulks. A bulk of
jeans contains ten pieces of jeans. The prices for wholesalers and customers are
shown in the following table for our main products for this segment.

Product Customer Retailer

Bell bottom 400 360

Boot cut 650 575

Flare cut 800 700

Straight cut 900 1000

Baggy jeans 1000 950

High waist jeans 1500 1350

Rugged jeans 1350 1275

Our company has comparatively very low places as we first want to establish
ourselves in the market by providing our material to a lot of people who can
connect with them.

The cost of production of basic simple jeans in Rs. 300. We sell it to the retailers
at a bit of higher amount obviously in order to incur the costs and the retailers sell
it to the customers.

The prices charged by the competitors are really high and hence our prices would
influence the buyers and the consumers to buy our product.

It is basically targeted for all the income groups, so the price is less with an
incredible quality and for daily use.

There is not much risk involved either as jeans is always in trend and the fashion of
jeans never fades out.
Distribution of the product
Place element of marketing mix refers to distribution of products to make them
available to customers for purchase and consumption. Distribution is very
important as if the products are not distributed and are not made available to the
customers at the right place, time and quantity they would not buy they products.

Warehousing: goods are produced in factories on a continuous basis and these are
not sold immediately after production. Location of warehouses for storage of goods
depends on the nature of the product. Since jeans are a necessity widest possible
distribution is desirable.

Channel of distribution: a channel of distribution is the route or path along

which products flow from one point of production to the point of ultimate
consumption or use. It starts from producer and ends with the consumer.

Our company has chosen the zero level channel where the manufacturer sells the
product to the consumer directly. This channel has been selected because it was it
is the most economical of all for a new entry to the market.
This channel does not require the producer to directly search for the customers at
the same time avoids overpricing as we are a new company and want to establish
ourselves. Using the two level or three level would be expensive for a new
company as longer the chain more would be the price of the product to the
customers.
Promotion of the product
Promotion is the process of communication with the potential buyers involving
information, persuasion and influence. It includes all types of personal and
impersonal communication with customers.

1. Radio Advertising:-
A catchy jingle and quick tag line can enhance a radio ad's effectiveness.
Matching the station you choose with your target demographic is key. If you
want to reach adults aged 35 to 64, an adult contemporary station is a good bet.
An alternative or urban station is good to reach youth aged 18 to 24.

2. Door Hangers and Flyers:-

Canvassing the neighborhood, placing flyers in mailboxes or hanging ads on
doorknobs, is a good way to target a specific area and to make sure your potential
customers have seen your information. Even if most homeowners will discard the
information, gaining a handful of clients may be enough for a positive return on
the marketing campaign investment.

3. The Print and Graphic Arts Media:-

Many retailers prefer advertising in local newspaper because it provides maximum
flexibility in terms of budget, timing, coupon feedback, product and price mix. The
perception rate is high because the reader can get more than one impact from the
same message.

4. Public Relation(PR):-
To maintain a good brand image, Inborn jeans will have a daily operating customer
service department, which will note each and every request of customer and make
changes according it.
 5. Advertisements:-
Advertisements can be done through:-
1. Newspapers and Magazines
2. Social Media
3. Local TV channels
4. Posters
5. YouTube advertisement.

6. Trade Shows:-
Trade shows have been around for many years as a mechanism to pull together a
large group of buyers and sellers organized around particular industries. Just about
every industry has one or more trade shows that you can use to promote your
business. We promote our business at a trade show by renting a space, putting
together an exhibit, and then attending the show.
You need to pay for all of this expense up front, and it will take some time to make
back the money from the connections that you make, but it can be a great way to
build your business.
Prompt follow up is critical after these shows and many business owners overlook
this element. Don’t assume that buyers will follow up with you, you will need to
follow up with most of them in order to complete the sale.
 Implementation of plan
I take maximum one and half year to implement this type of project the time
required for completing each activity of he project till commercial production
is as follows:

Sr. No. Activity Completion on

time
1. Preparation of project 1 month

2. Selection of site 2 month

3. Registration of SSI 1 month

4. Availability of finance 3 month

5. Construction of building 6 month

6. Arrangement of machines and equipments 1 month

7. Erection and commissioning including 1 month

electrification
8. Recuitment of personal and labour 1 month

Details of Land & Building

`
No. Particulars Area Rate Total

1 Land 1400 yards 321 4,50,000

2 Building 2000 sq. ft. 350 7,00,000

Total 11,50,000

Details of Plant & Machinery

No. Particulars Qty. Amount (Rs)

1 Simple stitch machine 10 2,00,000

2 Chain stitch machine 6 4,80,000

3 Folding machine 1 1,50,000

4 Stain removing machine 1 70,000

5 Washing machine 2 3,00,000

6 Cutting machine 1 2,00,000

7 Fitting machine 1 1,00,000

8 Embroidery machine 2 1,00,000

9 Iron 1 25,000

10 Printing machine 1 75,000

11 Over lock machine 2 1,00,000

12 Logo-making machine 1 25,000

13 Handling equipment - 75,000

Total 19,00,000
Other Fixed Assets
No. Particulars Qty. Amount

1. Delivery van 2 5,00,000

2. Furniture - 3,50,000

3. Computers 2 50,000

Total 9,00,000

Preliminary, Pre-operative & miscellaneous

expenses Rs. 5, 00,000

Total Fixed Assets

No. Particulars Amount (Rs)

1 Land & Building 11,50,000

2 Plant & Machinery 19,00,000

3 Other Fixed Assets 9,00,000

4 Preliminary & miscellaneous Exps. 5,00,000

Total 44,50,000
 Raw Material Requirements

No. Particulars Qty. Rate Monthly Annually

1. Denim cloth 3000m 80 2,40,000 28,80,000

2. Cotton cloth 1500m 60 1,20,000 14,40,000

3. Thread - - 15,000 1,80,000

4. Button 6000 0,7 4,200 50,400

5. Zip 5000 4.8 24,000 2,88,000

6. Stickers 7000 1.5 10,500 1,26,000

7. Plastic box 2700 2 5,400 64,800

8. Washing acid 500ltr 20 10,000 1,20,000

9. Pocketing cloth 500m 8 4,000 48,000

Total 4,33,100 51,97,200

Utility
No. Particulars Qty. Rate Monthly Annually

1 Electricity 1000KWH 5 10,000 1,20,000

2 Water - - 1,500 18,000

Total 11,500 1,38,000

Man Power Requirements

MIDDLE LEVEL

Sr. No. Particulars No. of Monthly Yearly

Employees salary

1. Sales Man 5 15,000 1,80,000

2. Clerk and 1 2,500 30,000

Computer
3. Store Keeper 1 3,000 36,000

Total 20,500 2,46,000

TOP LEVEL
Sr. No. Particulars No. of Monthly Yearly
Employees Salary
1. Manager 2 14,000 1,68,000

2. Accountant 1 5,000 60,000

3. Designer 1 5,000 60,.000

Total 24,000 2,88,000

Other Administrative Expenses

LOWER LEVEL
Sr. No. Particulars No. of Monthly Yearly
Employees Salary
1. Stain Stich Machine 6 15,000 1,80,000
Operator
2. Simple Stich 10 20,000 2,40,000
Machine Operator

3. Folding Machine 1 1,500 18,000

Operator

4. Washing Machine 1 1,200 14,400

Operator

5. Cutting & Fitting 1 1,500 18,000

Operator

6. Embroidery 2 3,000 36,000

Operator

7. Overlook Machine 1 1,500 18,000

 Operator
8. Logo Making 2 2,000 24,000
Machine Operator
9. Handling 1 1,600 19,200
equipment’s
Machine Operator
10. Ironing operator 1 1,500 18,000

11. Delivery operator 2 1,700 20,400

Total 50,500 6,06,000

LEVEL OF MANAGEMENT

Sr. No. Particulars Monthly Yearly Salary

1. Top level 24,000 2,88,000

2. Middle level 20,500 2,46,000

3. Lower level 50,500 6,06,000

Total 95,000 11,40,000

Total Working Capital
No. Particulars Monthly Annually

1. Telephone 1,500 18,000

2. Postage & Stamp Duty 500 6,000

3. Advertising & marketing 7,000 84,000

4. Consumer stores 1,200 14,400

5. Miscellaneous 1,000 12,000

Total 11,200 1,34,400

No. Particulars Monthly Annually

1. Raw Material 4,17,700 50,12,400

2. Utility 11,500 1,38,000

3. Wages & Salary 95,100 11,41,200

4. Administrative Expense 11,200 1,34,400

5. Other contingencies 3,000 36,000

Total 5,30,500 62,26,000

Total Cost of Project

No. Particulars Amount(Rs.)
 1. Total Fixed Capital 44,00,000

2. Total Working Capital 17,28,000

Total 61,28,000

Sources of Fund
No. Particulars Percentage (%) Amount(Rs.)

1. Owned Capital 60% 36,24,900

2. Borrowed Capital 40% 24,51,200

Total 60,41,500

Interest
No. Particulars Percentage (%) Amount(Rs.)

1. Owned Capital 9.5% 3,44,365

2. Borrowed Capital (SBI) 12.5% 3,02,075

Total 6,43,498
Depreciation

Maintenance & Repair

No. Particulars Value Rate Amount

1. Building 11,50,000 15% 1,72,500

2. Machinery 19,00,000 20% 3,80,000

3. Other fixed assests 8,50,000 15% 1,27,500

4. Computers 50,000 20% 10,000

Total 6,90,000

No. Particulars Amount (Rs.)

1. Raw materials 51,97,200

2. Utilities 1,38,000

3. Manpower 11,40,000

4. Repairs & Maintenance 1,97,500

Total 66,72,700

Cost of Production
No. Particulars Value Rate Amount

1. Building 11,50,000 5% 57,500

2. Machinery 19,00,000 5% 95,000

3. Other Fixed Assets 9,00,000 5% 45,000

Total 1,77,500

CONCLUSION
Today’s generation is very much conscious about the garments. The consumption
of new fashionable garments increases day by day especially Jeans.

A Jeans became popular garment in all over the world. So, the demand increases
day by day and the fashion trend changes every day in jeans. At present take an
example of world leading Jeans producing company Wrangles, Lee, GAP, Flying
machine etc. Have launched the range Jeans trend. So, the Jeans is a forever
product in the garments. It indicate that the demand of the Jeans will increase in
India as well as foreign culture the company has wide spread market.

It indicates future expansion and development of the project according to proposed

project is considered to have better prospects.