1. PRESENTED BY-
AKSHAY BHARTI(16)
PIYUSH SINGLA (24)

2. ABOUT TEXTILE INDUSTRY
 The Indian textile industry is one the most important
industries for the Indian economy.
 Its importance is underlined by the fact that it accounts for
around 4% of GDP, 14% of the industrial production and
17% of the country’s total export earnings.
 Besides, the sector employs nearly 35 mn employees; the
textile industry is the second-largest employment
generating industry in both rural and urban areas, after the
agriculture industry.

3.  India is aiming at textile exports of $60 billion in 2014-15
as it will seek to encash on the increased demand from the
developed nations and its traditional partners in the
international market.

4. GOVERNMENT INITIATIVES
 Technology Upgradation Fund Scheme (TUFS)
 As on March 31, 2008, the government sanctioned Rs
725.2 bn and disbursed Rs 609.5 bn under the TUFS
 In June 2013, the government released an additional
subsidy of Rs 25.5 bn in the textile sector under the TUFS.

5. GOVERNMENT INITIATIVES
 Initiatives under National Textile Policy (NTP) 2000
 The rate of depreciation for investment in high-tech
processing machines has been increased from 25% to
50%.
 The import duty on specified hi-tech processing machines
has been brought down to 5%.
 Import of hi-tech processing machines has been permitted
under zero duty Export Promotion Capital Goods Scheme.

6. BASIC IDEA OF BUSINESS
 The basic idea of business is to convert tailor cutting
cotton waste into WHITE GOLD which has varied
uses.
 White gold is used in manufacturing of-
1. Canvas cloth
2. Curtains ,bed sheets and other handloom products
3. Door mats
4. Floor wipers
5. Carry bags

7. COMPANY PROFILE
 Product type – Recycled cotton yarn
 Product name – WHITE GOLD
 Company name – NEW AGE SPINNERS
 Company address – vill. Madhana, Gohana road , Panipat
 Directors – Piyush Singla and Akshay Bharti

8. INVESTMENT
 Total investment = Rs 5.43cr
 Capital brought by partners = Rs 2cr each
 Cash credit from Union bank of India = 1.43cr against
collateral security of factory premises

9. CONVERSION PROCESS OF INPUTS
Cotton waste
(tailor cutting)
Bleaching process Carding process of
converting
tailor cutting to
break comber

10. SWOT
ANALYSIS

11. Strength
Weakness
OpportunityThreat
1. Low technical
knowledge
required
2. Easy
availability of
man power
3. Huge
demand
1. Shade and
shade variations
2. Loss due to
power failure
3. High initial
investment
1. Competition from
international brands
2. Competitors practice
of labour poaching
3. Loss due to fire
1. Subsidy from
government
2. Continous market
demand
3. High return on
investment

12. LAYOUT OF FACTORY
120ft *
430ft =
51600sqft

13. DEMAND FORECAST
 Collective opinion test
sample method
1. number of yarn traders = 147 (as per THE PANIPAT
YARN TRADER ASSN.)
2. number of export houses = 73
3. 55 samples collected under opinion method
4. on an average the sales of yarn traders are 8000kg a
day and for export houses 4000kg a day

14. Expenditure : fixed and working
capital expenditure Fixed capital
1. Land – Rs 1.18cr (1.18 acre @ 1cr/acre)
2. building – Rs1.20cr( for building construction and office)
3. machinery – Rs1.85cr
(3 open ends D1- Rs 84,00,000
8 card machines- Rs 48,00,000
2 blow rooms- Rs 38,00,000
weighing scale- Rs 9,00,000
power factor- Rs 5,00,000
office furniture- Rs 1,00,000)
4. hotline electricity connection – Rs 12 lac
5. AC plant – Rs 6 lac
6. borewell – Rs 3 lac (2 connections 3 inches)
7. Registration fees – Rs 1,61,000

15. Expenditure : fixed and working
capital expenditure
 Working capital
1. Conversion expenses – Rs 38,33,268
2. Raw material – Rs 59,50,000

16. BLENDING
 Break comber (95%) - 6175*30days = 185250*Rs.29.5=
Rs54,64,875
 Polyster cotton(P.C) (5%)- 325kg*30 = 9750*49.75=
Rs.4,85,125
*5% yield wastage on blended quantity resulting to
increasing cost of blending per kg

17. CONVERSION EXPENSES
Details Cost per kg Amount
Blow room conversion
cost
195000 kgs*Rs 3/kg 5,85,000
Card room conversion
cost
185000kgs*Rs 2.5/kg 4,62,500
Open end conversion
cost
185000kgs*Rs 2.5/kg 4,62,500
Packing expenses 3600*10 36,000
total 15,40,000

18. SALARY CHART
Particulars Amount (Rs.)
Gate keeper 6000*2 = Rs.12000
Electrician 20000
Junior electrician 9000*2 = Rs.18000
Weighing scale operator 7500
Store manager 16000
Accountant 25000
Intern for accountant 6500
Bahadur for office 4000
Ladies labour 30000 for month

19. SALARY CHART CONTD.
Particulars Amount (Rs.)
Field boy (2) (sales) 30000
Field boy (spares) 10000
General production manager 340000
Godown keeper 18000
Sweepers (2) 9000
Total 2,40,000

20. SUPPLIERS DETAILS
 G.G. spuntex
Across pakka kabri fatak, kabri road , panipat
Phone number- 9034560008 (Mr. Manish)
breakcomber @ Rs29.5/kg
Under an agreement for a quarter to supply 6000 kg
breakcomber daily by his conveyance to our factory
premise.

21. CONTINGENCY PLAN FOR
SUPPLIERS (LOCAL)
 Prem cottex @ Rs. 30.25/kg
 Shree Durga Spinning Mills @ Rs. 30.50/kg
 Mahaluxmi Trading Co. @ Rs. 30/kg

22. OUR CUSTOMERS
 Prince Yarns
Gangapuri road, sanoli road, panipat
 Royal Yarns
Old yarn market, panipat
 Channana Yarns
City chowk, near lal masjid, panipat
 Banga Yarns
New yarn market, S.D college road, panipat

23. COMPETITOR’S ANALYSIS
 Average rate of yarn per kg in the market is Rs 64
 Major competitors are as follows-
- Gupta overseas @ 65/kg
- Chirag spinning mills @ 64/kg
- Vishal spinning mills @ 65/kg
- Gupta international @ 64.2/kg

24. CONTINGENCY PLAN
 Loss by theft and fire (covered under Insurance)- annual
premium of Rs38,609 against stock of Rs 50lacs
 Machinery insurance- annual premium of Rs 2,15,621
against machinery costing Rs.1.85cr
 Provision for bad debts- Rs 20,000/month
 Building insurance- annual premium of Rs 47,281 against
building costing Rs 50 lacs

25. SEGMENTATION, TARGETING AND
POSITIONING
o SEGMENTATION
On the basis of UV and NON-UV clear yarn
On the basis of various counts of production
o TARGETING
Export houses, traders and inter state dealers
o POSITIONING
Penetration pricing and brand creation within a time span of
next 10 years

26. TRADING A/C
Particulars Amount
(Rs)
Particulars Amount
(Rs)
To purchases
To wages
To electric bill
To gross profit b/d
59,50000
15,46,000
9,00,000
24,04,000
--------------
1,08,00,000
By sales a/c 1,08,00,000
--------------
1,08,00,000
(for 1 month)

27. PROFIT & LOSS A/C
Particulars Amount
(Rs)
Particulars Amount
(Rs)
To interest on C.C
To salary
To spare parts
To office expenses
To medical expenses
To freight outward
To fire equipments
To EPF contribution
To provision for bad debts
To free samples
To insurance
To bobin
To packing bags
To net profit before tax
To tax @30%
To net profit after tax
1,72,000
2,40,000
1,50,000
50,000
5,000
90,000
10,000
24,000
20,000
40,000
25,125
75,000
50,400
14,52,475
------------
4,35,742
10,16,732
-------------
24,04,000
By gross profit c/d 24,04,000
-------------
24,04,000