INTRODUCTION

There are many types of Watch

Straps, made of Leather, Nylon, Stainless
Steel and Brass etc. Watch straps are
made in various designs including
ornamental one, being used by the
public now a days. In this Project Profile,
it is intended to manufacture stainless
steel watch straps out of stainless steel
sheet scrap and wire. Since the scrap
of required gauge is easily available from
the manufacturers of stainless steel
utensils, it is comparatively more
profitable than manufacturing these
items out of virgin stainless steel sheets
or coil.
MARKET POTENTIAL
Wrist watch has become necessity for
the present day life of human beings. It
is being used by people from all walks
Watch Strap Metallic
PRODUCT CODE : 349906009
QUALITY AND STANDARDS : Buyers/Manufacturers own specifications
PRODUCTION CAPACITY : Qty. : 30,000 Nos. (per annum)
Value : Rs. 13,44,000
MONTH AND YEAR : April, 2003
OF PREPARATION
PREPARED BY : Small Industries Service Institute
22, Godown, Industrial Estate,
Jaipur-302006
(Rajasthan).
Phone Nos.: 212098, 213099
Fax No. : 0141-210553
E-mail: [email protected]
of life, male, female, educated,
uneducated, young and old etc. Watch
strap being an integral part of wrist
watch, it has a good market for supply
to meet original demand and in the
replacement market. Apart from the
large scale wrist watch manufacturers,
such as Titan, HMT, Maxima, Allwyn,
Timex etc., a good number of small
scale units in many States have also
come up with their phased production
programme for wrist watches. The
demand for the production of the item
is therefore likely to increase rapidly in
near future. Further, due to durability
of the product it is preferred over all
other types of straps.
Moreover, due to fast changes in the
design and liking of people, there is good
replacement prospects for the product
as well. Therefore, there is a good and
assured future for the product.
22
113
BASIS AND PRESUMPTIONS
(i) This report is worked out on 75%
capacity utilization, on single
shift and 300 working days per
year.
(ii) The machinery and equipment
are of standard make.
(iii) The cost of raw materials and
other expenditure is approximate
and based on current market
rates.
(iv) The period for achieving
envisaged capacity utilization
estimated to be one year after
commencement of trial production.
(v) Interest rate for fixed and working
capital has been calculated at
16% per annum.
(vi) Pay back period would
commence after a period of 12
months and the repayment period
is estimated as 3 years.
IMPLEMENTATION SCHEDULE
1. The entrepreneur has to arrive at
a decision in order to select this
product. The guiding factor in this
regard would be the market
potential, demand and supply
gap and availability of resources.
It may take 2 to 3 weeks.
2. After selecting the product, the
entrepreneur has to get
provisional registration from DIC,
so that he can apply for allotment
of land, power, etc.
3. In order to obtain financial
assistance from the financial
Institutions like Commercial
Banks or State Financial
Corporations, a detailed project
report is required to be prepared.
On the basi s of the report
financial Institutions may take 8
to 10 weeks time for sanctioning
and di sbursi ng the l oan.
Accordingly, orders for plant and
machinery may be finalized and
placed. Simultaneously, orders
for purchase of raw materials are
al so to be fi nal i zed and
recruitment of key staff is to be
done. This would require 3 to 4
weeks.
4. The pl ant and machi nery
received may be installed and
commissioned within 4 to 6
weeks time and the Workshop
staff should also be recruited.
The producti on may be
commenced after trial run of the
installed plant and machinery.
TECHNICAL ASPECTS
Process of Manufacture
The Metallic Watch Straps consist of
7 to 8 components according to its
design. These components are made by
balaking, piercing, and binding as per
the requirements, and then these
components are sent for assembly to
form a chain. These chain pieces are
grounded to size on a surface grinder.
Mat finish on the straps can also be
given by using surface grinder. After
mating, straps may be polished on a
buffing lathe. Links, locks and barrels
are fitted to these pieces with the help
of spring loaded pins. Then these
assembled straps are cleaned in
kerosene oil to remove the luster
particles. Finally, the final buffing is
done to give polishing touch on straps.
These straps are packed suitably and
marketed.
WATCH STRAP METALLIC
114
Quality Control and Standards
Most of the watch manufacturers like
Titan, HMT, Alwyn, Maxima, Timex etc.,
have formulated their own specifications
and design for this product, and these
may be obtained from them for supply
to them. However, in view of
sophistication and individual liking the
appearance of the straps must be good
and have free link movement and
reliable locking system along with
appropriate polish.
Production Capacity (per annum)
Quantity 30,000 nos.
Value Rs. 13,44,000
Motive Power 15 HP.
Pollution Control
The activity does not create any
pollution. However, proper ventilation is
provided for safe working conditions.
Energy Conservation
General awareness is required for
energy conservation.
FINANCIAL ASPECTS
A. Fixed Capital
(i) Land and Building (In Rs.)
400 sq. meter (rented) 4,500
(ii) Machinery and Equipment
Sl. Description Ind/ Qty. Rate Total
No. Imp Nos. (Rs.) (In Rs.)
1. Inclinable Ind. 1 35,000 35,000
Power Press
10 Tonnes with
5 HP Motor
2. Power Press -do- 2 20,000 40,000
with 2 HP Motor
3. Bench Drill -do- 1 4,000 4,000
12 mm cap.
Sl. Description Ind/ Qty. Rate Total
No. Imp Nos. (Rs.) (In Rs.)
With 0.5 HP
motor.
4. Buffing lathe -do- 1 8,000 8,000
with 1 HP Motor.
5. Disc and Belt -do- 1 8,000 8,000
sand grinding
Machine,
1200 mm x
150 mm with
endless belt,
titling type table
and with 0.5
HP motor.
6. Pedestal -do- 1 4,000 4,000
grinder 200
mm wheel dia.
with 0.5 HP
motor.
7. Surface grinder, -do- 1 50,000 50,000
table size 550
mm x 200 mm
with 1 HP motor.
8. Work bench, -do- L.S. - 30,000
Vice, Hand tools,
Dies, Punches,
Measuring
tools etc.
9. Installation - - - 17,900
and Electrification
@ 10% of the
cost of Machines
10. Office furniture - - - 15,000
and equipments.
(iii)Pre-operative - - - 5,000
Expenses
Total 2,16,900
Say 2,17,000
B. Working Capital (per month)
(i) Personnel
Sl. Designation Nos. Salary Amount
No. (Rs.) (In Rs.)
1. Manager 1 4,000 4,000
2. Supervisor-Cum- 1 3,000 3,000
Inspector
3. Skilled Workers 4 2,500 10,000
4. Un-Skilled Workers 4 2,000 8,000
WATCH STRAP METALLIC
115
C. Total Capital Investment
(i) Fixed Capital Rs. 2,17,000
(ii) Working Capital (for 3 months) Rs. 2,48,000
Total Rs. 4,65,000
FINANCIAL ANALYSIS
(1) Cost of Production (per year) (In Rs.)
Recurring Expenditure 9,92,000
Depreciation on Machinery and
Equipments @ 10% 17,900
Depreciation on Office Furniture @ 20% 3,000
Interest on total capital investment @16% 74,400
Total 10,87,300
Say 10,87,000
(2) Turnover (per year)
Sl. Item Qty. Rate Total
No. (Rs.) (In Rs.)
1. Stainless Steel 30000 44 13,20,000
Watch Straps Nos. each
2. Sale of Scrap 2 MT 12000 24,000
Total 13,44,000
(3) Net Profit (per year) (Before Taxation)
Profit = Turnover - Cost of Production
= Rs. 13,44,000 - 10,87,000
= Rs. 2,57,000
(4) Net Profit Ratio
=
Net Profit per year 100
Turnover per year
=
257000 100
1344000
= 19.12%
(5) Rate of Return
=
Net Profit per year 100
Total Capital Investment
=
257000 100
4,65,000
= 55.26%
WATCH STRAP METALLIC
Sl. Designation Nos. Salary Amount
No. (Rs.) (In Rs.)
5. Clerk-cum-Accountant 1 2,500 2,500
6. Peon 1 2,000 2,000
7. Chowkidar/Watchman 1 2,000 2,000
Total 31,500
Additional perquisites @ 15% 4,725
Total 36,225
Say 36,200
(ii) Raw Materials
Sl. Description Qty. Rate Amount
No. (Rs.) (In Rs.)
1. Stainless Steel/Scrap 0.9 34,000 30,600
16/20/26/28/30 MT
SWG
2. Spring Bars and Link 108 40 4,320
Bars
3. Packaging Material L.S. - 1,080
Total 36,000
(iii) Utilities (In Rs.)
Electric Power @ 4 per unit 2,500
Water Charges L.S. 350
Total 2,850
(iv) Other Contingent Expenses (Rs.)
Rent 4,500
Transport and Cartage Charges 500
Postage and Stationery 300
Telephone 1,000
Publicity 300
Insurance/Taxes 100
Repair and Maintenance 400
Miscellaneous Expenses 500
Total 7,600
(v) Total Recurring Expenditure (per month)
[(i) + (ii) + (iii) + (iv)] = Rs. 82,650
(vi) Total Working Capital for 3 Months
3 82650 = Rs. 2,47,950
Say 2,48,000
116
(6) Break-even Point
Fixed Cost (In Rs.)
Rent 54,000
Depreciation on Machinery 17,900
Depreciation on office furniture 3,000
Interest on total capital investment 74,400
40% of Salary and Wages 1,73,760
40% of other contingent expenses 14,880
(excluding rent)
Total 3,37,940
Say 3,38,000
B.E.P.
=
Fixed Cost 100
Fixed Cost + Profit
=
338000 100
338000 + 257000
=
338000 100
595000
= 56.8%
Addresses of Machinery Equipment
Suppliers
1. M/s. SARB Presses Pvt. Ltd.
P. No. 52, Sector24,
Faridabad-121001 (Haryana)
2. M/s. Gurusharan Industries
920, New Colony,
Opp. Railway Station (Old),
Faridabad121001 (Haryana).
3. M/s. Lefoot Machines Pvt. Ltd.
110 (N.P.), SIDCO Industrial
Estate, Ambattur,
Chennai - 98.
4. M/s. Imperial Products of India
414A, Industrial Area - II,
Chandigarh - 160002.
5. M/s. Atlas Works Pvt. Ltd.
S. No. 119,
Ribbon Street,
Kolkata.
6. M/s. International Machine Tools
Corporation
5 Bank Street,
P.O. Box No. 799,
Behind State Bank,
Fort, Mumbai - 400023.
Raw Materials Available in the Local
Market.
WATCH STRAP METALLIC