- The document discusses a field visit to Decent Leather's, a local bag manufacturer in Mumbai. - Decent Leather's is a micro enterprise focused on manufacturing and wholesaling bags. It produces around 4000 bags annually using imported and local raw materials. - The production process involves cutting materials, assembling parts like rubber sheets and lining, stitching zippers and lining, and packaging the finished bag. - While manufacturing costs are Rs. 350-450 per bag, Decent Leather's sells bags wholesale for Rs. 1200 and retailers sell for under Rs. 3500, identifying opportunities in the changing consumer market and online sales.

1. Cost and Management
Accounting

2. Decent Leather’s - Esbeda
DUSANE SAGAR 11
MMS-I / B (Marketing)
AIAIMS -Mumbai-01
Project guide
PROF. FAISAL MEMON
PROF. SAYED FATIMA KANIZ

3. Objective
The main purpose of this project is to get an
insight of the functioning and operations of the
local bag manufacturers in Mumbai, and if possible
to come up with strategy to save cost or increase
turnover.

4. Field Visit

5. About the Firm
• The proprietor of the firm is Mr. Mohammad
Shaukat AbdulRauf Shaikh
• Focuses mainly on manufacturing and wholesaling
• Micro Enterprises under the MSfixed clients who
operate in the domestic marketMED ACT 2006
• It operates from a rented workshop-cum-warehouse
situated at Byculla, Mumbai
• Fixed clients who operate in the domestic market
• Annual production of the firm is approx. 4000 bags
top notch

6. Production Process
• Intermittent production system
• Materials used in the manufacturing process are imported
from China and local market
• Raw materials
PU Leather
PVC leather
Slider/Zip/Runner
Lining
Rubber Sheet
Nylon Thread
Dunlop – Glue
Stationery
Card Frame

7. Production Process
•Making the design as per requirement
•Design is drawn onto the cutting board
•Cut-out in the shape of the intended design
•Rubber Sheet
•Faux Leather/PVC/PU
•Lining

8. Production Process
•Pasting the Rubber cut-out on the desired material
•Gluing the above parts together to make the frame
ready
•Stitching the lining inside.
•Stitching the zipper/slider/runner
Packaging
bag is put in a
polythene
polythene is put in
a cardboard box
bag is ready for
delivery

9. Production Process

10. Findings
• Manufacturing cost to the firm Rs.350-450 per
unit
• Selling price by the firm Rs. 1200 appro
• Retail price < Rs 3500 in showroom
 Tremendous brand value
 Cater to the needs of upper middle class, and upper
class segments
• Ecommerce price Rs.1050 – Rs.2800

11. Cost sheet
• Cost sheet

12. Opportunities
• Buying habits of all classes of consumers has changed
to a great extent due the change in lifestyle, lack of
time and emergence of e-commerce
• The concept of imitation that comes into play
• Consumers from lower segments tend to prefer/buy
the products that are purchased by consumers
belonging to upper segment
• Most of the times, this imitation is done in pursuit to
acquire the product of a particular brand; sometimes it
is for the quality and finesse of the product.

13. Plan for future
• Entering E-commerce tie-ups with online
giants like Flipkart.com, Snapdeal.com etc