Detailed Project Report on jewellery cluster | DPR for Bank Loan | Feasibility Reports

JEWELLERY CLUSTER

[CODE NO.4277]

Jewellery is broadly defined as “ornament for the body”; it is ornament which can be worn and while this definition is frequently challenged and stretched by what are often referred to as “art jewellers” or “contemporary jewellers”, the majority of jewellery can be described as being wearable ornaments, often made from high-value materials such as precious metals and gemstones.

The Jewellery Industry – especially in Scotland – comprises largely of micro-businesses and small-to-medium sized enterprises (SMEs) with a few specialist larger manufacturers. The market divides into several sectors which largely correspond to the divisions in the business sizes: micro-businesses are likely to be involved in small-scale or individual production at a low-to-medium value level; SMEs are more likely to be involved in medium-to-high value production and the larger businesses are likely to be involved in production of high-turnover low-value work for the tourist industry.

In terms of materials and processes, traditional jewellery production can be looked on as a form of micro-engineering, requiring the production of objects in metals with great accuracy. Most jewellery is produced from the precious metals – silver, gold, platinum and palladium – but may be produced in other materials such as pewter (especially for work for the tourist industry) or steel. These metal objects can then be connected – to make chain, for example – or be set with stones, enamelled or polished and in the very highest-grade of jewellery, multiple techniques may be used simultaneously. In order to create these pieces, a range of techniques are used, from the ultra-traditional cutting of metal using a saw, through soldering, into lost-wax casting and in more recent years 3D technologies such as laser-sintering and digital technologies such as laser-cutting have begun to play a part in the jewellery industry, a role that is set to expand as these technologies become more and more available.

Jewellery is one trade which is still placed in the cottage industry category. However, the growing recognition of Indian workmanship by foreign luyers has result in bosting the export of cut and polished gems. The Gem and Jewellery Export Promotion Council was set up in 1966. This was a welcome stepas gem and jewellery has been recognised as an export-oriented industry. The council operating under the Union Commerce Ministry as a nonprofit service institution has helped in the establishment of testing laboratories and training school at Jaipur and the Indian Gemmological Institute at Delhi. The council represent about 3,000 exporters of gems and jewellery.

COST ESTIMATION

Plant Capacity 150 gm./Day

Land & Building (10,000 sq.ft.) Rs. 5 Cr

Plant & Machinery Rs. 9 Cr

Working Capital for 1 Month Rs. 2.21 Cr

Total Capital Investment Rs. 16.51 Cr

Rate of Return 25%

Break Even Point 55%

APPENDIX – A:

01. PLANT ECONOMICS

02. LAND & BUILDING

03. PLANT AND MACHINERY

04. OTHER FIXED ASSESTS

05. FIXED CAPITAL

06. RAW MATERIAL

07. SALARY AND WAGES

08. UTILITIES AND OVERHEADS

09. TOTAL WORKING CAPITAL

10. TOTAL CAPITAL INVESTMENT

11. COST OF PRODUCTION

12. TURN OVER/ANNUM

13. BREAK EVEN POINT

14. RESOURCES FOR FINANCE

15. INSTALMENT PAYABLE IN 5 YEARS

16. DEPRECIATION CHART FOR 5 YEARS

17. PROFIT ANALYSIS FOR 5 YEARS

18. PROJECTED BALANCE SHEET FOR (5 YEARS)

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