NSIC Project Profiles

SOFT TOYS MAKING

1. INTRODUCTION
Soft Toys making activity is one of the simple and less investment activity ,andmost of
the units run by women only. The technology for making of soft toys has been
changed .These toys made of fur and acrylic in various designs and sizes are in great
demand in the market. These toys are manufactured in various colors ,size and more
popular in the shape of animals . The one which is liked most by the children is
Teddy Bear.

2. MARKET
There is good scope for these type of toys in India and Abroad. The companies in the
all over the world are eyeing in to indiaan market because the its have an important
place in international market.The demand of soft toys is also increasing day by day
due to several reasons. The most common soft toys are available in the market are
Teddy Bear,Joker, Various animals , etc. Some specialtype soft toys also availbale in
the market. The indian soft toys rates starts from Rs 30 to 2000 depends on fur cloth
quality .Some of the Indian companies also exporting soft toys to abroad. There is
good domestic market for soft toys In India.

3. MANUFACTURING PROCESS
The manufacturing of soft toys is best suitable to ladies.Because the activity cab be
start from Rs 10000 to 500000 in their houses only. The work is like cutting
,stciching and knetting etc. The process of manufacturing of soft toys is too easy and
simple and it is similar to preparing quilts . Like cotton is put in a quilt or a matress
after stiching it from one side.similar the cloth is cut according to the design of the
toy which is to be prepared and then sponge is filled into from the other side.Later
buttons,ribbon, and eyes are tucked to it to make ita complete to be delivered to the
market.

4. PRODUCTION CAPACITY PER ANNUM

Capacity 12000 Toys perannum
Selling Price Rs. 65 Per Toy

5. PROJECT COST/CAPITAL INVESTMENT

S.No Description Amount Rs.
1 Preliminary & Preoperative Expns 2000
2 Fixed Capital 89000
3 Working Capital for 1 month(s) 58700
Total Project Cost 149700
NSIC Project Profiles

6. MEANS OF FINANCE
S.No Description %age Amount Rs.
1 Promoter Contribution 15% 22455
2 Subsidy 20% 29940
3 Term Loan 65% 97305
Total 149700

7. FINANCIAL ASPECTS

A. FIXED CAPITAL
i. Land and Buildings Rented 2000 per month

ii. Machinery and Equipment

S.No Description Qty. Rate Amount Rs.
1 Sewing machines 4 12000 48000
2 Scissors,tape,needles etc Lumpsum 1 5000 5000
3 Racks 2 10000 20000
4 Other equipment 1 10000 10000
5 PackingMachine 2 3000 6000
Total 89000

B. WORKING CAPITAL

i. Salaries & Wages (per month)

S.No Description Nos. Sal/mon. Amount Rs.
1 Supervisor/Entrepreneur 1 2500 2500
2 Skilled workers 4 2000 8000
3 Workers 4 1500 6000
Total 16500

ii. Raw Material (per month)

S.No Description Unit Qty. Rate Amount Rs.
1 Fur cloth Mtrs 400 45 18000
2 Stuffing Kgs 40 100 4000
3 Eyes,Ribban, Thread Etc Lum 1000 10 10000
4 Packing Lum 1000 4 4000
Total 36000

iii. Utilities (per month)

S.No Description Unit Amount Rs.
1 Power LS 1000
2 Water LS 200
Total 1200
NSIC Project Profiles

iv. Other Expenses (per month)

S.No Description Amount Rs.
1 Postage & Stationery Expenses 500
2 Transportation Expenses 500
3 Advertisement Expenses 500
4 Consumeble Stores 500
5 Miscellaneous Expenses 1000
Total 3000

v. Total Working Capital (per month)

S.No Description Amount Rs.
1 Rent 2000
2 Salaries and Wages 16500
3 Raw Material 36000
4 Utilities 1200
5 Other Expenses 3000
Total 58700

8. COST OF PRODUCTION (PER ANNUM)

S.No Description Amount Rs.
1 Total Working Capital 704400
2 Depreciation @ 15% 13350
3 Interest @ 12% 11677
Total 729427

9. TURNOVER (PER YEAR)

S.No Description Unit Qty. Rate Rs. Amount Rs.
1 Toys perannum12000 65 780000
Total 780000

10. FIXED COST (PER YEAR)

S.No Description Amount Rs.
1 Depreciation 13350
2 Interest 11677
3 Rent 24000
4 Salaries & Wages @ 40% 79200
5 Other Expenses incl. Utilities @ 40% 20160
Total 148387

11. PROFIT ANALYSIS & RATIOS

1 Net Profit Rs. 50573

2 Percentage of Profit on Sales 6%
3 Percentage of Return on Investment 34%
4 Break Even Point 75%