jeans business plan
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Content
I. Introduction
II. Personal Information
III. Type of unit & Site selection
IV. Cost of Project
V. Means of Finance
VI. Preliminary and Preoperative Expenses
VII. Production Programme
VIII. Production Process
IX. Manpower Requirement
X. Utilities
XI. Administrative Expenses
XII. Break Even Calculation
XIII. Project Implementation Schedule
Introduction
Comfort jeans Co. is a team of young & dynamic professional designers in the trade of denim jeans & other clothing, we are manufacturers producing high quality custom made men's & women's denim clothing such as Jeans,
Jackets, Shirts, Skirts and Trousers etc. in a very lowest price.
Our mission is to develop sense of designing attire, especially for yourself and to make you feel confident and comfortable while wearing jeans or other clothes. When you wear jeans or any other clothes which you have designed for yourself and when it fits you as per your desired measurements & fittings; it is the most confident feeling you would ever have.
The areas of specialization is in Denims and non denims, initially we started this custom made manufacturing for bottoms only and then later we will expand it to other line of products like denim jackets, denim shirts, denim trousers, denim skirts, denim shorts & other non - denim clothing's.
We have come up with an idea of providing custom made and manufactured jeans for customers especially boys, girls, kids, men & women and big & tall, who usually don't get jeans that fits them as per their desired aesthetic & measures. We wanted to see a confident smile on our customer's face when they wear jeans that especially designed and manufactured for them, which normally customers' don't get in mass-manufactured jeans.
The history of jeans
The beginningsDenim and jeans - where do the names come from?
Jeans are trousers made from denim. Some of the earliest American blue jeans were
made by Jacob Davis, Calvin Rogers, and Levi Strauss in 1873. Starting in the 1950s,
jeans, originally designed for cowboys, became popular among teenagers. Historic
brands include Levi's, Lee, and Wrangler. Jeans come in various fits, including skinny,
tapered, straight, boot cut, Mommy-cut, maternity, and flare.
Jeans are now a very popular form of casual dress around the world, and have been so
for decades. They come in many styles and colors; however, "blue jeans" are
particularly identified with American culture, especially the American Old West.
The word "jeans" comes from the French phrase bleu de Genes’, literally the blue
of Genoa. Jeans fabric, or denim, originated in the French town of Nîmes, from which
'denim' (de Nîmes) gets its name.
Denim trousers for sailors
Denim trousers were made in Chieri, a town near Turin in Italy, during
the Renaissance and were popularized in the 19th century. These trousers were sold
through the harbor of Genoa, which was the capital of the independent Republic of
Genoa which was long an important naval and trading power. The Genoese
Navy required all-purpose trousers for its sailors that could be worn while swabbing the
deck and the denim material met this need. These trousers were laundered by dragging
them in nets behind the ship, and the sea water and sun would gradually bleach them to
white.
Jeans (at the time known as "dungarees"), along with light-blue stenciled "cambric"
shirts, became part of the official working uniform of the United States Navy in the first
part of the 20th Century. A working uniform was selected to protect traditional uniforms
from becoming soiled or torn in the ship's rugged working environment, leaving them for
ceremonial occasions. They were first issued in 1901, and were originally straight-
legged but by the mid-20th century the trousers became Boot-cut style to permit
ventilation in the ship's hotter working environments and to ensure sailors could shed
their dungarees if they fell overboard or had to abandon ship.
The same type of uniform consisting of jeans and chambray tops was issued as prison
uniforms in some correctional facilities mainly because of the durability and low-
maintenance of denim which was deemed suitable for the rugged manual labor carried
out by inmates. A popular example of the use of denim as prison wear can be seen in
the film Cool Hand Luke.
Evolution of the garment
Copper rivets for reinforcing pockets are a characteristic feature of blue jeans.
The blue denim fabric of jeans
Initially, jeans were simply sturdy trousers worn by workers, especially in the factories
during World War II. During this period, men's jeans had the zipper down the front,
whereas women's jeans had the zipper down the right side. By the 1960s, both men's
and women's jeans had the zipper down the front. Historic photographs indicate that in
the decades before they became a staple of fashion, jeans generally fit quite loosely,
much like a pair of overalls without the bib. Indeed, until 1960, Levi Strauss denominated its
flagship product "waist overalls" rather than "jeans".
After James Dean popularized them in the movie Rebel Without a Cause, wearing jeans
by teenagers and youth and/or young adults became a symbol of youth rebellion during
the 1950s. Because of this, they were sometimes banned in theaters, restaurants and
schools. Nowadays, however, jeans are worn to many types of venues and events,
even some events that ostensibly require formal attire.
During the sixties the wearing of jeans became more acceptable, and by the seventies it
had become general fashion in the United States for casual wear.[4]
In the 1970s the denim industry introduced the Stone-Washing technique developed by
GWG also known as "Great Western Garment Co.". Donald Freeland of Edmonton,
Alberta pioneered the method, which helped to bring denim to a larger and more
versatile market. Acceptance of jeans continued through the 1980s and 1990s to the
point where jeans are now a wardrobe staple, with the average North American owning
seven pairs. Currently, jeans may be seen worn by people of both genders and all ages.
Manufacturing Processes.
Dyeing
Traditionally, jeans are dyed to a blue color using indigo dye. Some other colors that
can be achieved are pink, blue, yellow, black, and white. These colors are achieved by
coloring other fabrics to resemble jeans. Approximately 20 million tons of indigo are
produced annually for this purpose, though only a few grams of the dye are required for
each pair of these trousers.
For more information on dyeing, refer to denim and the discussion there of using
pigment dyes.
Pre-shrinking of jeans
In the 1970s Hal Burgess first marketed "pre-washed" jeans. He was a salesman for his
father, who owned a large jean manufacturing company in Cartersville, Georgia. While
on a sales trip, there was a flood in the hotel room where Burgess was storing jeans. He
asked the hotel owner if he could rent out the pool to wash the flooded jeans. The jeans
shrunk but Hal decided to market them as 'pre-washed' jeans and sold them two sizes
smaller than they were initially labeled. This was the first time 'pre-shrunk' jeans were
marketed.
Used look created by sandblasting
Many consumers in Western societies are willing to pay extra for jeans that have the
appearance of being used. To give the fabrics the right worn look sandblasting is used.
Sandblasting has the risk of causing silicosis to the workers, and in Turkey, more than
5,000 workers in the textile industry have been stricken with this disease, and 46 people
are known to have died. Sweden's Fair Trade Center conducted a survey among 17
textile companies that showed very few were aware of the dangers caused by
sandblasting jeans manually. Several companies said they would abolish this technique
from their own production.
13 fun facts about Blue Jeans !
If there’s single a universal piece of clothing that has been consistently
popular and fashionable from the age of cowboys and further back, that’s
Jeans.
But it turns out the idea of Blue Jeans as something that originated in the old
West is actually a popular misconception. Did you know that jean-like
trousers have been dated back as far as 16th century India?
Although the term jeans is somewhat more recent , jeans in fact represent a
rather timeless fashion trend… which probably comes as no surprise to you.
The history of Jeans: OriginsWhat you might not know is how the word “Jeans” was derived from the name of place where these special pants were originally sold: the harbor town of Genoa, in Italy. According to popular legends, people referred to those sturdy work clothes as the “bleu de Gênes”, and thus the term Blue
Jeans became popular. Similarly, the name of the raw material which was use in the manufacture of such pants was named after the French town of Nîmes, thus the word Denim (as abbreviated from “de Nîmes”).
Some interesting facts about Blue Jeans:1) The common idea that Jeans were invented by cowboys is more of romanticism than a matter of fact. Although they did favor these kinds of pants because it was durable, it was not invented at the time.
2) The oldest Jean-like pants made of denim date back to the 16th Century in India; these pants were word by sailors in the city of Dhunga, thereby the reason why these trousers were referred to as Dungarees, back then.
3) The word “Denim” is a reference to the french town of “Nîmes”, where the textile was developed; this rugged cotton fabric “de Nîmes” was long know for its sturdiness.
4) The reason why this notable studiness is achieved is because weft undergoes double, triple or multiple warp threads, during the weaving process.5) It was in the 19th century that Jeans became wildly popular in the USA, thanks to one Mr. Levi Strauss who started selling them as sturdy work clothes for miners. He also held the patent for riveted jeans.
6) Levi Straus received the U.S.Patent No.139, 121 for his improved jeans
design on May 20, 1873; for this reason, the 20th of May is regarded to this day as the birthday of the Blue Jeans… although it would more accurately be described as the birthday of Levi’s Jeans.
7) From a single bale of cotton, weighing 500 pounds, over 200 pairs of jean scan be made… meaning that it takes over 2 pounds of cotton to make a single pair of Jeans.
8) It was in the middle of the XX century that Jeans (then known as “overalls”) were popularized and became widespread through Europe, because American Soldiers wore then when off-duty.
9) Jeans became widely popular in the USA at the same time, much thanks to the Hollywood legend Jammed down, who wore Jeans in the movie Rebel without a cause; at this time, and they became a symbol of youth rebellion.
10) Blue Jeans were regarded as a disruptive fashion statement in the 1950′s, and people were actually banned from schools, cinemas and restaurants for wearing them.
11) Through the 1960′s, Blue Jeans keep growing in popularity, and became even more widespread as a symbol of change.
12) At the dawn of the XXI century, each American is estimated to own 7 pairs of blue jeans.
13) Currently, Jeans are unquestionably the most popular and widespread piece of casual wear, and they are sold by the tens of millions each year.How’s that for a fashionable progression
The 18th century
At first, jean cloth was made from a mixture of things. However, in the eighteenth century as trade, slave labour, and cotton plantations increased, jean cloth was made completely from
cotton. Workers wore it because the material was very strong and it did not wear out easily. It was usually dyed with indigo, a dye taken from plants in the Americas and India, which made
jean cloth a dark blue colour.
19th Century
1848: gold was found in California and the famous Gold Rush began. The gold miners wanted clothes that were strong and did not tear easily. 1853: a man named Leob Strauss left his home in New York and moved to San Francisco, where he started a wholesale business, supplying clothes. Strauss later changed his name from Leob to Levi. A big problem with the miners' clothes were the pockets, which easily tore away from the jeans. A man called Jacob Davis had the idea of using metal rives to hold the pockets and the jeans together so that they wouldn't tear. Davis wanted to patent his idea, but he didn't have enough money.
1872: Davis wrote to Levi and offered Strauss a deal if he would pay for the patent. Strauss accepted, and he started making copper-riveted "waist overalls" as jeans were called then.
1873: The first riveted clothing was made and sold 1886: Levi sewed a leather label on their jeans. The label showed a picture of a pair of jeans that were being pulled between two horses. This was to advertise how strong Levi jeans were: even two horses could not tear them apart.1891: Levi Strauss & Co.'s patent for riveted clothing goes public and dozens of companies begin to use the idea
20th Century
How jeans became popular
The 1930's: WesternsIn the 1930's, Hollywood made lots of western movies. Cowboys - who often wore jeans in the movies-became very popular. Many Americans who lived in the eastern states went for vacations on 'dude ranches' and took pairs of denim 'waist overalls' back east with them when they went home.
The 1940's: War
Fewer jeans were made during the time of World War 2, but 'waist overalls' were introduced to the world by American soldiers, who sometimes wore them when they were off duty. After the war, Levi began to sell their clothes outside the American West. Rival companies, like Wrangler and Lee, began to compete with Levi for a share of this new market.
The 1950's: Rebels
In the 1950's, denim became popular with young people. It was the symbol of the teenage rebel in TV programmes and movies (like James Dean in the 1955 movie Rebel Without a Cause). Some schools in the USA banned students from wearing denim. Teenagers called the waist overalls 'jean pants' - and the name stayed.
The 1960's: Hippies & the Cold War
In the 1960's many, many university and college students wore jeans. Different styles of jeans were made, to match the 60's fashions: embroidered jeans, painted jeans, psychedelic jeans...
In many non-western countries, jeans became a symbol of 'Western decadence' and were very hard to get. US companies said that they often received letters from people all around the world asking them to send the writer a pair of jeans The 1970's: Sweatshops
As regulations on world trade became more relaxed in the late 1970's, jeans started to be made more and more in sweatshops in countries in the South. Because the workers were paid very little, jeans became cheaper. More people in the countries of the South started wearing jeans. The 1980's: Designer Jeans
In the 1980's jeans finally became high fashion clothing, when famous designers started making their own styles of jeans, with their own labels on them. Sales of jeans went up and up.
The 1990's: Recession
In the world wide recession of the 1990's, the sale of jeans stopped growing. The Youth market wasn't particularly interested in 501s and other traditional jeans styles, mainly because their parents: the generation born in "blue" were still busy squeezing their aging bodies into them. Since no teenager would be caught dead in anything their parents were wearing, the latest generation of rebellions youth turned to other fabrics and styles. They still wore denim, but it had to be in different finishes, new cuts, shapes, styles, or forms. Jeans were named the "single most potent symbol of American style on planet earth".
And the 21st century......?
Personal Information about Promoters
Name: Pinal Gangani
Address: A/52, Sagar Soc., near spinning mill, varachha, Surat.
Date of birth: 1st July, 1990 Age: 22 Years: 1990
Educational Qualification: B.B.A and now pursuing MBA
Family Background: Business class
Name: Payal Kakadiya
Address: 5, D.M. park Soc., near dhanmora, katargam, Surat.
Date of birth: 21st July, 1990 Age: 22 Years: 1990
Educational Qualification: B.B.A and now pursuing MBA
Family Background: Business class
Name: Ankita Poddar
Address: B-603, Aagam Vihar, near Ekta row house, S.K. park umra, Surat.
Date of birth: 9th July, 1989 Age: 23 Years: 1989
Educational Qualification: B.com and now pursuing MBA
Family Background: Business class
Type of unit and site selection:
i. Name of unit: Comfort Jeans
ii. Address: Sector 28, G-1875 GIDC, Gandhinagar (Gujarat)
iii. Type of unit: Garments (Jeans)
iv. Requirement of Land and Building (Sq. yards/ sq. meters.):
Land: 1400 yards
Building: 2000 Sq. ft.
i. Scale of the organization: Small scale industry
ii. Estimated cost of project: 60,41,500
iii. Market area: Limited to Gujarat
Cost of Project
The sum total of all funds required to complete a business purchase transaction.What It MeansTypical project costs include:
Business purchase price.
Working capital .
Closing costs.
Professional fees such as those charged by the CPA and attorney.
Lender fees.
Business appraisal fees.
Business license fees.
We need to set a budget for the business purchase which includes all expenses. In asset business purchases,
the seller typically retains cash and short-term investment assets. The buyer then will need to inject
additional funds into the business to ensure that it has sufficient working capital.
Particulars Amount
Land 11.50,000
Land development expenses 1,50,000
Plant & Machinery 19,00,000
Other Fixed Assets 8,50,000
Computer 50,000
Working capital margin 19,41,500
Total 60,41,500
Means of FinanceThe cost of the project as stated above is suggested to be met through the following sources:
Sources of Fund
No. Particulars Percentage Amt. (Rs.)1 Owned Capital 60 % 36,24,900
2 Borrowed Capital 40 % 24,51,200
Total 60,41,500
Preliminary & Pre-Operative ExpensesPreliminary & pre-operative Expenses is 50,000
Production Programme
Raw Material :
The main raw materials required to produce the Jeans are Denim & cotton clothes,
thread, button, rivet, zip, stickers.
Product & its use :
The popularity and the demand of Jeans are increasing day by day. Jeans have left behind the tailor made cloth. Consumer can wear Jeans casually with shirt or short shirts & T-shirts. Today, consumers wear Jeans even with blazers. Even in villages people have started wearing Jeans. Each & every class of people wears Jeans. So, we can say that it can be matched in any style and it can be change your style.
Sources of Raw Material
Generally, the raw material of Jeans is available from outside Gujarat.
Sr.
no.
Material Sources
1 Denim Cloth Mumbai
2 Cotton Cloth Ahmedabad
3 Thread Sirmour
4 Button Delhi
5 Rivet Delhi
6 Zip Delhi
INPUTS
Materials
Labour
Capital
Energy
OUTPUTS
Products
Service
Information
PRODUCTION FUNCTION
7 Stickers Ahmedabad
8 Plastic Ahmedabad
9 Washing acid Ahmedabad
Production Process
Produces the Jeans in the following steps ocess
Over lock
Embroidery Work
Stitching Process
Fitting
Washing
Ironing
Folding
Packing
Storing
Manpower Requirements
TOP LEVEL
No. Particulars No. of Employees
MonthlySalary
Yearly Salary
1 Manager 2 14,000 1,68,000
2 Accountant 1 5,000 60,000
3 Designers 1 5,000 60,000
Total 24,000 2,88,000
MIDDLE LEVEL
No. Particulars No. of
Emp.
Monthly
Salary
Yearly
Salary
1 Salesman 5 15,000 1,80,000
2 Clerk & computer
operator
1 2,500 30,000
3 Store keeper 2 3,000 36,000
Total 20,500 2,46,000
Lower LevelNo. Particulars No. of
Emp.MonthlySalary
Yearly Salary
1 Stain stitch machine
Operator
6 15,000 1,80,000
2 Simple stitch machine
Operator
10 20,000 2,40,000
3 Folding machine Operator 1 1,500 2,40,000
4 Washing machine Operator 1 1,200 18,000
5 Cutting & Fitting machine
Operator
1 1,500 14,400
6 Embroidery machine
Operator
2 3,000 36,000
7 Over Lock machine
Operator
1 1,500 18,000
8 Printing machine Operator 1 1,500 18,000
9 Iron Machine Operator 1 1,200 14,400
10 Packing machine Operator 1 1,200 14,400
11 Watchman 2 2,900 34,800
Total 50,500 606000
Level Of Management
Levels Of Management Monthly Salary
Annual Salary
Top Level 24,000 2,88,000
Middle Level 20,500 2,46,000
Lower Level 50,500 6,06,000
Utilities & Overhead Costs
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
Maintenance & RepairMaintenance & Repair
No. Particular Value Rate Amt.
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
Administrative Expenses
No. Particular 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
Analysis of Break Even Point (BEP)
Break-even analysis is a scientific analysis, which leads producers
towards more systematic and scientific production planning or sales
planning. It is because of break-even analysis that the firm can accordingly
work out the required size of the plant. By break even analysis the small-
scale entrepreneur can get proper guidelines about volume of sales to be
achieved to avoid the danger of loss.
Break-even analysis indicates a point where total revenues are equal
total cost. It means a volume of sales where firm earns neither profit
norsuffers loss in called Break-even point.
Particulars Amt. (Rs.) Amt. (Rs.)
Sales 88,15,000
(Less) Variable Cost
Raw Material 51,97,200
Utilities 1,38,000
Manpower 6,06,000
Admin. Exp. 1,34,400
Other contingencies 36,000 61,11,600
Contribution 27,03,400
(Less) Fixed Cost
Manpower 5,34,000
Depreciation 6,80,000
Maintenance & Repairs 1,97,500
Insurance 20,000
Int. on loan 6,43,498 20,74,998
Profit Before Tax (PBT) 6,28,402
(Less) 35% Tax 2,19,941
Profit After Tax (PAT) 4,08,461
BEP = Fixed Cost
Contribution
= 20, 74,998 x 60% = 46.05%. 27, 03,400
BEP (Rs.) = Fixed cost x sales
Contribution
= 20, 74,998 x 88, 15,000= 67, 65,512 Rs.
27, 03,400
No. Particulars Amt. (Rs.)
1 Sales 88,15,000
2 Variable cost 61,11,600
3 Fixed Cost 20,74,998
Ratio AnalysisRatio Analysis
Return on Investment
ROI = EBIT x 100
Project Cost
= 12, 71.900 x 100 60, 41, 500
= 21.05%
EBIT = PBT + TOTAL INTEREST
= 6, 28,402 + 6, 43,498
= 12, 71,900
Net Profit Ratio
NPR = PAT x 100
Sales
= 4, 08,461 x 100 88, 15,000
= 4.63%
Fixed Assets Turnover Ratio
F.A.T.R. = Sales
Fixed Assets
= 88, 15,000 = 2.23%
39, 50,000
Project Implementation Schedule
We take maximum one and half year to implement this type of project
the time required for completing each activity of the project till commercial
production is as follows:
No. Activity Completion Time
1 Preparation of Project 1 month
2 Selection of a site 2 months
3 Registration of SSI 1 month
4 Availability of finance 3 months
5 Construction of building 6 month
6 Arrangement of machines &
equipments
1 month
7 Erection & commissioning including
electrification
1 month
8 Recruitment of personnel & Labour 2 month
Annexure – 1
Cost of Plant & Machinery
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
Annexure – 2
Raw Material RequirementsRaw Material Requirements
No. Particulars Qty. Rate Monthly Annually
1 Denim cloth 3000 m 80 2,40,000 28,80,000
2 Cotton cloth 1500 m 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
7Pocketing
Clothes500 m 8 4,000 48,000
8 Plastic Box 2700 2 5,400 64,800
9Washing
Acid500 lt 20 10,000 1,20,000
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
Annexure – 3
Total Working CapitalTotal Working Capital
Annexure – 4
Depreciation Calculation
No. Particular 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 Exp. 11,200 1,34,400
5 Other contingencies 3,000 36,000
Total 5,30,500 64,26,000
Annexure – 5
Interest Calculations
Annexure – 6
Cost of Production & Profitability
No.
Particular Value Rate Amt.
1 Building 11,50,000 15% 1,72,500
2 Machinery 19,00,000 20% 3,80,000
3 Other Fixed
Assets
8,50,000 15% 1,27,500
4 Computer 50,000 20% 10,000
Total 6,90,000
No. Particulars Percentage Amt. (Rs.)1 Owned 9.5 % 3,44,365
2 Borrowed Loan (SBS) 12.5 % 3,02,075
Total 6,43,498
No. Particulars Amt. (Rs.)1 Raw Material 51,97,200
2 Utilities 1,38,000
3 Manpower 11,40,000
4 Repairs & Maintenance 1,97,500
Total 66,72,700
Cost AnalysisCost Analysis
Particulars Amt. (Rs.) Amt. (Rs.)
Variable Cost
Raw Material
Denim Cloth 28,80,000
Cotton Cloth 14,40,000
Thread 1,80,000
Button 50,400
Zip 2,88,000
Stickers 1,26,000
Pocketing Clothes 48,000
Plastic box 64,800
Washing Acid 1,20,000
Other contingency 36,000 52,33,200
Semi Variable Cost
Utilities 1,38,000
Administrative Exps. 1,34,400
Man Power (Lower Level) 6,06,000 8,78,400
Fixed Cost
Preliminary & Pre-operative expenses written off 50,000
Man Power (Middle & Top level) 5,34,000
Interest on capital 6,43,498
Depreciation 6,90,000
Repairs & Maintenance 1,97,500 21,14,998
Total Cost 82,26,598
Profitability AnalysisProfitability Analysis
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