21
Shuttle Cock
PRODUCT CODE QUALITY AND STANDARDS PRODUCTION CAPACITY : 385101007 : IS 415:1963 : Qty : 1,20,000 Shuttle Cocks (per annum) Value: Rs. 26,40,000 MONTH AND YEAR OF PREPARATION PREPARED BY : December, 2002. : Small Industries Service Institute 111/112, B.T. Road, Kolkata-35.
INTRODUCTION
Badminton is played almost throughout the world by both men and women and also by the Children. This game is also very popular in our country and is being patronised by the Government and Non-Government agencies and clubs etc. With the increase in popularity of the badminton, the demand for good quality shuttle cocks is also increasing. The life of each shuttle cock is generally short after it is used in the game. Hence, the consumption pattern is quite frequent. The shuttle cock is one of the simplest items of sports goods manufacture with lesser investment of capital and can be produced in tiny and small-scale sector.
per unit cost of production compared to the international standards. There exists a huge demand for shuttle cocks in Kerala, Karnataka, Tamilnadu, Andhra Pradesh, Maharashtra, MP, Delhi, Haryana, Punjab, UP, North-Eastern States and also in other States. The demand for the shuttle cocks in West Bengal is also quite good during the winter season. Besides Jaduberia, Midnapore (West Bengal), the other major concentration of the shuttle cock manufacturing units are in the Northern part of India specially in Jalandhar, Meerut and Delhi. Some units in Kolkata are also manufacturing this item. The shuttle cocks with the duck feathers is in greater demand than that of the hen feathers.
MARKET POTENTIAL
There exists a very good market potential for shuttle cock in the country and abroad. However, most of the shuttle cocks manufactured are used internally with the exports being very negligible due to poor quality and high
B ASIS AND PRESUMPTIONS
This project profile is prepared on the basis of the following presumptions :1. Working Hours 8 hours per day 2. No. of shifts per day 1 shift
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3. No. of working days per month 4. Total working days 5. Total working hours per year 6. Working efficiency 7. Time period for achieving the max Capacity utilisation 8. Labour charge
25 days 300 days 2400 hours 75% to 80% 3 years after commencement of commercial run As per the rates existing in the locality 25% of capital investment 15%
Sl. Activities No.
2. SSI provisional registration, clearance from pollution Control Board etc. 3. Taking loans from Banks/Financial Institutions 4. Procurement of land/Building, Plant and machinery and its installation and electrification etc. 5. Trial run, sampling, securing orders from customers etc. 6. Recruitment, Commencement of commercial Production etc.
Period (in months)
1
2 to 4 1 to 2
2 to 3 1
9. Margin Money 10. Rate of interest on Capital
11. All the rates and estimates have been provided on the basis of the prevailing market price. 12. It is envisaged that very good quality shuttle cocks of high standard would be produced 13. Pay back period 2 year (approx.)
TECHNICAL ASPECTS
Process of Manufacture The process of manufacture of the shuttle cock is very simple. The white duck feathers are generally used for the production of the shuttle cock. Sometimes hen feathers are also used for the cheaper variety of shuttle cocks. The feathers are first of all sorted out for selection of good variety of feathers. Then the feathers are washed with detergent for 30 to 60 minutes. Then, they are treated with the ultramarine blue like robin blue or Ujala for giving the brightening effect. The washed feathers are then properly dried and cut to 3 size with the help of the scissors. The feathers are then rounded off and pruned at the top. Then good quality cork bottom are taken. Altogether 16 nos. of bores are
IMPLEMENTATION SCHEDULE
The implementation schedule of the project has been taken to be around one year. The tentative break up of activities with approximate time required for each activity is shown below:
Sl. Activities No.
1. Preparation of Project Report Trade licence etc.
Period (in months)
1
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made on the flat surface of the wood cork with the help of cork boring machine. The feathers are then inserted into such bore and fixed with glue. Then 16 feathers thus inserted into the cork are knought with the Cotton thread. Gelatine is then smeared round over the knoughted thread. Then silk or cotton ribbon is attached at the Junction of the cork and feathers at the base of the shuttle cock. A brand sticker is also put round the cork and attached with the glue at base middle of the cork of the shuttle cock. Finally, the shuttle cocks are weighed on a balance and the weight is adjusted with the help of the small steel pins. The shuttle cocks used for indoor games should have a weight range of 70 or 72 or 74 grains and those for the outdoor games 82 or 84 or 86 grains. The shuttle cocks are then packed into the cylindrical card boxes fitted with the card board or metal lids with ten shuttle cocks in each box generally called in the trade as one roll. The shuttle cocks are then despatched for marketing. Quality Control and Standards The BIS has recommended standard for manufacturing the shuttle cock. It is quite desirable that one should study this standard specification before venturing into this project. Besides the BIS specification, the customers also lay down their own quality standards regarding the quality of feathers, cork, adhesives etc. and the quality standard of the ultimate product. Production Capacity Production Volume (per month): 1000 Rolls (Each roll contains ten pieces of shuttle cocks).
Production Volume (per annum). 12000 rolls. Turnover (per annum). 12000 x 220 = 26,40,000 Motive Power Pollution Control There is no pollution hazard from this type of industry either in air or in water. Hence, there is no need of taking any pollution control measures. Energy Conservation The scope for energy conservation in the shuttle cock manufacturing industry is very little, since most of the operations are carried out manually except few operations like boring etc. However, the workers and staff members should be trained properly to make optimum use of power like fuel, electricity etc. to save energy. 1 HP.
FINANCIAL ASPECTS
A. Fixed Capital
(i) Land and Building Rented Factory Building for office and Factory shed (1500sq.ft.) (per month) (ii) Machinery and Equipments Sl. Description No. 1. Drill machine for boring the cork size: with 0.5 HP motor 2. Hand Press Double scissors feather cutting machine 3. Weighing balance 4. Tools and equipment 5. Furniture Total Quantity Amount (Rs.) 1 no. 7,500 2,500
2 nos.
5,000
1 no. L.S.
2,500 2,500 12,500 30,000
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(iii) Pre-operative Expenses Total Fixed Capital (ii + iii) (30,000+10,000) Rs. 10,000 = Rs. 40,000 Sl. Raw Materials No. 4. Glue, Gelatin, Cotton thread, robin blue, detergent etc. 5. Cylindrical packing box Qty. Rate (Rs.) Total (Rs.) Approx. 400
L.S.
B. Working Capital (per month)
(i) Personnel (per month) Sl. Designation No. Nos. Salary (Rs.) Total (Rs.)
1000 Nos.
3.50 per box
3,500 12,000 1,20,000 (Rs.) 750 250
Total Cocks equivalent to 1000 Roll 10 x 12000 (iii)Utilities (per month) Power Water Total
a) Administration
1. Manager-cum-supervisor 2. Accountant-cumclerical Staff 3. Store Keeper 4. Peon 5. Watchman 1 1 1 1 1 Total 5000 3000 2500 2000 2000 5,000 3,000 2,500 2,000 2,000 14,500 2,900 Total 17,400 2500 2000 25,000 8,000 33,000 6,600 Total Total Salary and wages (a+b) Total No. of staff = 5 + 14 = 19 Nos. (ii) Raw Material (per month) (For 1000 nos. of shuttle cocks) Sl. Raw Materials No. 1. White Duck Feathers 2. Cork Bottom 1x1 Qty. Rate (Rs.) 350 per 1000 feathers 300 per gross Total (Rs.) Approx. 5,600 39,600 57,000
So, total monthly raw-material cost for 10000 shuttle
1,000
(iv) Other Contingent Expenses (per month) (Rs.) a. Rent b. Stationery and postage c. Telephone d. Repairs and maintenance 2,500 1,000 1,000 500 500 2,000 1,000 1,000 2,500 12,000 Total
Add: perquisites @ 20%
b) Technical
1. Skilled Workers 2. Unskilled Workers 10 4 Total
e. Consumable stores f. g. i. Selling expenses Insurance Miscellaneous expenses
Add perquisites @ 20%
h. Taxes
(v) Total Working Capital (per month) (i+ii+iii+iv) Rs. 1, 90,000 (vi) Total Working Capital (for 3 month) 1,90,000 x 3 = Rs. 5,70,000
C. Total Capital Investment
Fixed Capital Working capital for 3 months Total Rs. 40,000 Rs. 5,70,000 Rs. 6,10,000
16000 feathers 1000 corks
2,100 400
MACHINERY UTILISATION
It is envisaged that the working efficiency of the Machinery would be around 75% to 80%.
3. White sheep 8 sq.ft. 50per sq.ft. skins crust for bottom cap
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FINANCIAL ANALYSIS
(1) Cost of Production (per annum) 1. Total recurring cost 2. Depreciation on Machinery and equipment @ 10% 3. Depreciation on furniture @ 20% 4. Interest on Capital Investment @ 15% Total (2) Turnover (per annum) Sale of 12000 rolls of shuttle cocks i.e. 12000x10 = 1,20,000 shuttle cocks (per year) @ Rs.220 per roll (3) Net Profit (per annum)= (2) - (1) (4) Net Profit on Sales = 2,64,250 x 100 26,40,000 = 10% (5) Rate of Return = Net profit x 100 Total Investment = 2,64,250 x 100 6,10,000 = 43.31% (6) Break-even Point (i) Fixed Cost (per year) 1. Depreciation 2. Rent 3. Interest on capital investment 4. 40% of salary, wages and other contingent expenses Amount (Rs.) 4,250 30,000 91,500 3,19,200 (Rs.) 22,80,000 1,750 2,500 91,500 23,75,750 (Rs.) 26,40,000
5. Insurance Total (ii) Net profit (per year) B.E.P. = Fixed Cost x 100 Net profit + Fixed Cost = 62.89%
3,000 4,47,950 Rs.2,64,250
Addresses of Machinery and Equipment Suppliers 1. M/s. Turnwell Machine Tools 15, Ganesh Ch. Avenue, Kolkata-700 013. 2. M/s. Turner and Tools, 16, Ganesh C. Avenue, Kolkata-700 013. 3. M/s. Nandi and Co. 125, Belilious Road, Howrah-1. 4. M/s. K.C. Verma Bastinov, Jalandhar-2. 5. M/s. Autar Engg. Works Bastinov, Jalandhar 2. Raw Material Suppliers 1. M/s. Ananda Shuttle Cock Bastinov, Jalandhar-2. 2. M/s. Charan Singh Mistri Behind Sansar Ashram, Basti Sheikh, Jalandhar.
2,64,250
