PROJECT REPORT

COTTON SAREES

No.1/44A, KAMARAJAR STREET, MADDUR,

THIRUVALLUR DIST, TAMIL NADU-631206

Project at a glance:
Name & Address of Unit:

Cotton Sarees

No-1/44A, Kamarajar Street, Maddur, Thiruvallur Dist,

Tamil Nadu-631206.

Details of Unit:

Email : arumugam3151990@gmail.com

Phone : 9952432439

Constitution : Proprietorship

Number of employment : 6

Total Project Cost : 10,00,000

Total Bank Loan : 10,00,000

Name & Address of Promoter:

Name : M Manikandan

Address : No-1/44A, Kamarajar Street, Maddur,

Thiruvallur Dist, Tamil Nadu-631206.

Phone : 9952432439

Email : arumugam3151990@gmail.com

Gender : Male

Date of Birth : 06/06/1976

Category : Backward Caste (BC)

Project Feasibility Ratio
Debt Service Coverage ratio ( Average) = 2.65
Current ratio (Average) = 1.00

Particulars Year 1 Year2 Year 3 Year 4 Year 5

Current Ratio 1.00 1.00 1.00 1.00 1.00
Quick Ratio 0.57 0.64 0.65 0.66 0.66
Debt equity ratio 5.00 5.00 5.00 5.00 5.00
Debt service 0.45 0.49 0.53 0.57 0.61
coverage ratio
Gross profit sales 0.48 0.44 0.42 0.43 0.48
ratio
Net profit sales ratio 0.27 0.23 0.22 0.22 0.21
Introduction:
The handloom industry is one of the oldest and the largest cottage industry in
India representing and preserving the vibrant Indian culture. Indian
handloom industry demonstrates the richness and diversity of Indian culture.
With over 4.3 million people directly and indirectly involved in the
production, the handloom industry is the second largest employment provider
for the rural population in India after agriculture.

Indian handloom products are known for their unique designs and finesse.
The trend is to mix old designs with about 2.4 million looms of varied designs
and construction, indicating significant production capacity.

The concept of handloom industry includes the process of operation by hand,

of a wooden structure which is called the loom. The working and functioning
in the handloom sector is entirely different from that of the power loom
sector. Handloom weaving involves three primary motions- Shedding, picking
and beating. The handloom products produced by each region vary, as each
state in India specializes in a different variety of handloom product
determined by the culture of that region and the skill of the workers.

The handloom industry is presently regarded as the largest economic activity

in India after agriculture which generating and employment of 3million
through directly and indirectly.
Promoter(s) details:
The promoter of the proposed venture is M. Manikandan resident of
No-1/44A, Kamarajar Street, Maddur, Thiruvallur Dist, Tamil Nadu-631206.
He is been working in this field for past few years. The project is promoted as
a proprietorship firm under the name of M/s. Cotton Sarees.

Breif Bio-Data:
Name : M. Manikandan

Address : No-1/44A, Kamrajar Street, Maddur,

Thiruvallur Dist, Tamil Nadu-631206

Phone : 9952432439

Email Id : arumugam3151990@gmail.com

Aadhar No. : 4778 7956 8717

PAN : DQQPM5664D

Sex : Male

Age & DOB : 45yrs, 06-06-1976

Qualification : 10th Standard

Experience Details : Worked in the manufacturing handlooms

Market potential & Strategy
India was the second largest exporter of handloom products in the world, with
exports valued at US$ 353.9 million in 2017-18. Although, there is a
considerable demand globally for handloom products. Also government is
supporting handloom industry with various programs such as cluster
development program, market incentive program, marketing assistance etc.
The ‘brand handloom’ is also important in India as it has a connect with our
ethnicity. Most of the domestic buyers preferred the traditional dresses
weaved in handloom. So by focusing on traditional dressing market will be
possible way for marketing.

Project Cost:
SI. No. Name of the Item Amount(Rs.)

1 Purchase of Raw Materials-Yarn 10,00,000