PROJECT PROFILE

ON
ZARI EMBROIDERY

PRODUCT : ZARI EMBROIDERY

PRODUCT CODE : 69122

NIC CODE : 17292

QUALITY : As per Customers’

STANDARD Specification & Design

PRODUCTION : 1600 mtr. Length of cloth

CAPACITY (P.A): (approx.)

MONTH & YEAR OF

PREPARATION : January, 2011

PREPARED BY : MSME-DI, Kolkata

MSME - DEVELOPMENT INSTITUTE

GOVERNMENT OF INDIA,
111 & 112, B.T.ROAD, KOLKATA-700108
E.mail director@sisikolkata.gov.in
Visit us: www.sisikolkata.gov.in
Ph: 2577-0595/97/98/2596
I. Introduction :

Use of zari embroidery was an indispensable part of the dress work by the
kings and queens. The history of this industry dates back to past several
centuries.

The embellishing handicraft work of zari embaroidery is being done on the

dress materials like saree (80%), salwar/kameez, ghagra, churidar, Punjabi,
curtains scarf etc. Among the above products zari embroidered saree is the main
product. Zari embroidered dress materials have very good potential in the
domestic market as well as in the export market.

Surat is the home of Zari Industry in India. It make embroidery materials for
machine and hand embroidery such as zari thread/kesab, Nakshi, Salmo, Sadi,
kangri and badle, woven trimmings, flat trimmings, metallic trimmings, fringes,
metallic fringes in different colours and different widths. Sequin collar and motifs
in elegant colours and designs are also made. These enhance the beauty of
garments.

There are three types of zari. Real zari is made of silver and electro plated
with gold. Zari thread made from this precious metal is used for sarees,
embroidered apparel, etc. Imitation zari is made from copper. A third variety of
zari is called plastic zari which is made from metallic yarn.

At present total production of zari raw material in India is valued about Rs.
500 crore. About 55% of these zari raw materials is catered by Surat. Except
Surat Zari raw materials are produced at Barielly, Varanasi, Agra, Jaipur and
Barmer.

II. Annual Installed Capacity of Production :

a) Embroidery on Jorget Cloth – 85 pcs. (528mtrs.)

b) Embroidery on Orgenga Cloth – 85 pcs. (528mtrs.)

c) Embroidery on Siphon Cloth – 85 pcs. (528mtrs.)

III. Market Scope & Demand:

Tendency to wear Indian Zari embroidery products among Indian and

Western women is increasing rapidly. Strong domestic market as well as growing
export market is there. Besides there is a good scope of product diversification
according to fashion dynamics.
 2
IV. Raw materials :

Siphon Cloth, Ribbon Orgenja cloth, Glass Beads, Jorjet cloth, Resham,
square tiki, Nimzari, zari thread etc. – all are available in the local market.

V. Manufacturing Process and Source of Technology :

Handicraft of Zari Embroidery is being done on the dress materials like

Saree, Salwar, Churidar, etc. First, the cloth is tied on wooden Dhadda fitted with
wooden stand. Required design is stenciled with the help of stencil paper on the
cloth. Embroidery work is being done according to the design by Zari thread,
stone, beads , etc. This is a traditional artisan work.

VI. Basis of Project Selection :

Specially for the artisan group of Bengal for PMEGP.

VII. Presumption :

i) The project Profile has been prepared on the basis of single shift on 8 hrs.
a day .

ii) Depreciation on machinery and equipments has been take @ 10% whereas
that of office furniture etc. has been taken as 20%.

iii) The rates for machinery, equipment and raw materials are those prevailing
at the time of preparation of Project Profile and are likely to vary from place to
place and supplier to supplier. When a customized project profile is prepared,
necessary changes are to be made.

VIII. Utilities :

Power requirement :

Manually operated machinery. 1 KW for shed lighting fan and exhaust.

Water Requirement:

Negligible. Required for drinking, hand washing and sanitary purpose.

 3
IX. Financial Aspects :

FIXED CAPITAL :

A. Land & Building : 500 sq.ft. Pacca shed - own

B. Plant &: Machinery

Sl. Description No. Rate Amount (in Rs.)

No.
1. Wooden Dhadda 5 pairs 2000.00 10,000.00
(along with sumsara)
2. Wooden, stands (3 ft. 20 Nos. 100.00 2,000.00
each) (4 stands for
each pair)
3. Mats 20 Nos. 50.00 1,000.00
4. Tools, equipments & LS - 500.00
other accessories (Like
Ropes, napa nails
needles etc.)
5. Freight, insurance and LS - 500.00
other contingencies
6. Mechanical LS - 300.00
Installation
Total: Rs. 14,300.00

C. Furniture & Fixture:

Wooden Almirah 1 No. Rs. 4,000.00 Rs. 4,000.00

D. Others

i) Preliminary & Preoperative expenses like

consultancy charge, conveyance and interest
on term loan etc. till generating income
from the unit LS Rs. 4,000.00

ii) Provision for contingencies LS Rs. 1,000.00

Rs. 5,000.00
FIXED CAPITAL Grand Total (A+B+C+D): Rs. 23,000.00
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Recurring Expenses/month:

Raw materials :

(As per Annexure 1)

a) Salary:

1. Supervisor 1 No. @ Rs. 2,000.00 Rs. 2,000.00

2. Accountant 1 No. @ Rs. 1,000.00 1,000.00

(Part time)

3. Helper 1 No. @ Rs. 1,000.00 1,000.00

Wages

4. Skilled Workers 10 Nos. @ 120.00per day 30,000.00

5. Semi skilled Workers 8 Nos. @ 105.00per day 21,000.00

Grand total : Rs. 55,000.00

Miscellaneous expenses :

i) Rent Nil
ii) Electric Power (Minimum) Rs. 300.00
iii) Transportation & Conveyances 300.00
iv) Packing materials 200.00
v) Repairing, replacement & maintenance 200.00
vi) Tax & Insurance 500.00
vii) Incentives (Labour benefits) @ 20% 800.00
viii) Contingencies 1000.00
Rs. 3,300.00

Total Recurring Expenditure per month :

i) Raw materials Rs. 62,403.00

ii) Salary & Wages Rs. 55,000.00

iii) Miscellaneous Rs. 3,300.00

Rs. 1,20,703.00
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Economic Details :

Working capital requirement :

a) Stock of raw materials for 15 days Rs. 37,442.00

b) Work in process for 1 day 2,496.00
c) Stock of finished goods for 7 days 33,797.00
d) Salary and wages for 1 month 55,000.00
e) Misc. expenses for 1 month 3,300.00
f) Bills receivable for 15 days 72,422.00
Rs. 2,04,457.00

Total Capital Investment :

i) Fixed Capital Rs. 23,300.00

ii) Working capital Rs. 2,04,457.00
Rs. 2,27,757.00

Anticipated Profit & Loss A/c per month:

Cost of Production By
Sale of finished product
Recurring Expenses Rs. 1,20,703.00 Item Qty. Rate Amount(Rs.)
Depreciation on Plant I) Item No. I 33 metres 1,040/per mtr. 34,320.00
Machinery & Equipment
@ 10% p.a. Rs. 112.00
II) Item No. II 33 metres 1,430/per mtr. 47,190.00
Depreciation on
Furniture & Fixture
@ 20% p.a. Rs. 67.00 III) Item No. II 33 metres 1,540/per mtr. 50,820.00

Interest @ 12.75% p.a

On total capital
Investment Rs. 2,420.00

Gross Profit
(before tax) Rs. 9,028.00 _____________
Rs. 1,32,330.00 Rs. 1,32,330.00

= Rate of Annual Return = Annual Profit x 100

Total Capital Investment

= 9.08 x 12 x 100
2,27,757

= 47.57%
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Profit to Sale Ratio (Profit Margin) = 6.82%

Fixed Cost (per month ) :

a) Rent Nil
b) Depreciation Rs. 179.00
c) Interest Rs. 2,420.00
d) Salary Rs. 4,000.00
e) Tax & Insurance Rs. 500.00
f) Minimum Power Charge Rs. 300.00
g) Misc. (other than rent, electricity &
tax & insurance) @ 40% Rs. 1,000.00
Rs. 8,399.00

BEP = Fixed Cost per month x 100%

Fixed Cost per month + Gross Profit P.M.

= 8,399.00 x 100%
8,399.00 + 9,028

= 48.19%

Address of the machinery manufacturer : Local Carpenter

Address of the raw material manufacturer : Local market

Resource Centre of Technology :

Local artisan people of the District of Howrah and 24-Parganas(S) of West Bengal.

List of the Units set up by using this project profile :

About 10 Nos. of unit at Vill. Khaskhamar, Dist. Howrah.

 ANNEXURE-I

Requirement of raw materials per month

A) Item No. 1 (Zari Embroidery on Jorjet cloth)

Sl. Description Quantity Rate (Rs.) Amount

No. (Rs.)
i) Cloth (Jorjet) 33 mtrs. 200.00 mtr. 6,600.00
ii) Glass Beads(@ 450 gms mtr.) 14.85kg.s 200.00 kg. 2,970.00
iii) Katdana(@ 200 gms mtr.) 6.6 kgs. 200.00 kg. 1,320.00
iv) Resham (@ 1 Reel mtr.) 33 reels 12.00 Reel 396.00
Total : 11,286.00
B) Item No. II (Zari Embroidery on Organga cloth)

i) Organga Cloth 33 mtrs. 190.00 mtr. 6,270.00

ii) Leather (@ 3ft. mtr. – hon 99 ft. 20.00 ft. 1.980.00
cloth)
iii) Resham (@ 7 reels mtr.) 231 reels 12.00 reel 2,772.00
iv) Square Tiki (500 gms. mtr) 16.5 kgs. 600.00 kg. 9,900.00
v) Katdana(@ 200 gms mtr.) 6.6 kgs. 200.00 kg. 1,320.00
vi) Cotton Threads (@ 10 Reels 330 Reels 3.00 Reel 990.00
mtr.)
Total: 23,232.00
C) Item No. II ( Embroidery on Siphon cloth)

i) Siphon Cloth 33 mtrs. 225.00 mtr. 7,425.00

ii) Ribbon @ 22 reels mtr.) 726 reels 10.00 reel 7,260.00
iii) Resham (@ 7 reels mtr.) 231 reels 12.00 reel 2,772.00
iv) Katdana(@ 1 kg. mtr.) 33 kgs. 200.00 kg. 6,600.00
v) Moti (@ 2 bundles mtr) 66 bundles 30.00 budle 1,980.00
vi) Nimjari @ 1 reel mtr.) 33 reels 20.00 reel 660.00
vii) Cotton Threads (@ 12 Reels 396 Reels 3.00 Reel 1,188.00
mtr.)
Total: 27,885.00
Grand Total (A+B+C): 62,403.00