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Cottage Industry: Project Opportunities in Assam

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Friday, February 24, 2012

Profile: A cottage is a farmhouse usually in rural areas. A cottage industry is a small self-help industry that is carried out in the home, community centre, parish hall or some other convenient place. Such industries are evident in handicrafts, catering, tailoring, dressmaking, beauty culture, retailing of dry goods, pottery and furniture making on a small scale. Cottage industries developed mainly out of the need for an additional source of income, because of the need to use one's spare time gainfully and because of the relative ease of acquiring the necessary raw materials to set up such industries.

Resources: Assam was traditionally famous for its cottage industry, especially spinning and weaving. Pat or pure silk production is essentially confined to Assam. Assam produces about 10% of total natural silk of India. Assam also produces Muga, the golden silk. Assam is also the main producer of Eri or Endi. Weaving is an important cottage industry of Assam. It is a traditional industry which can be traced back to very ancient times. There are about 7,00,000 looms in Assam, where majority are primitive foot looms. Only some looms of Sualkuchi, used for commercial production of silk cloth, are powered. Bell-metal work is a traditional cottage industry of Assam. The products made of bell-metal are traditional plates, cups, tumblers, pitchers, bowls, Sarai (a tray with a stand), dwarf pitchers, pots, hookahs and musical instruments. Brass-work is also an important traditional handicraft of Assam. Brass articles are produced not only for day-to-day use, but also for interior decoration. The total production of marketable finished goods annually is about 300 tonnes.

Government policies: The Assam Preferential Stores Purchase Act, 1989 (to replace the Assam Preferential Stores Purchase Rules, 1972) enactment is aimed to encourage growth of industries in the State and to implement the Industrial Policy announced and published by the Govt. of Assam vide Notification No. CL 586/85 dated 24th December, 1986. Objectives of this enactment is to encourage small scale and cottage industries by preferential purchase of their products, to rationalize the procedure for purchase of stores required by the State Government, companies and undertakings, Small Industries, Khadi and Cottage industries registered under this Act shall be exempted from payment of earnest money and security deposit for items in respect of which the units are registered.

 

Opportunities for entrepreneurs: Entrepreneur can venture in following fields:

·       Silk Reeling Unit

http://www.niir.org/profiles/profiles/z,,1b,0,a/index.html

·       Jute Twine (Jute Rope) & Gunny Bag from Raw Jute

·       Jute Garments

·       Jute Ropes/Sutli

Click here to take a view:  http://www.niir.org/profiles/profiles/z,,f,0,a/index.html

Niir Project Consultancy Services (NPCS) provides you detailed project reports (DPR) on the above fields. Each detailed project reports cover all the aspects of business, from analysing the market, confirming availability of various necessities such as plant & machinery, raw materials to forecasting the financial requirements. The scope of the report includes assessing market potential, negotiating with collaborators, investment decision making, corporate diversification planning etc. in a very planned manner by formulating detailed manufacturing techniques and forecasting financial aspects by estimating the cost of raw material, formulating the cash flow statement, projecting the balance sheet etc.

We also offer self-contained Pre-Investment and Pre-Feasibility Studies, Market Surveys and Studies, Preparation of Techno-Economic Feasibility Reports, Identification and Selection of Plant and Machinery, Manufacturing Process and or Equipment required, General Guidance, Technical and Commercial Counselling for setting up new industrial projects on the following topics.

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Introduction
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  • Uses & Applications
Market Study and Assessment
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Raw Material
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Personnel (Manpower) Requirements
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Plant and Machinery
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Infrastructure and Utilities
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Project at a Glance

Assumptions for Profitability workings
Plant Economics
Production Schedule
Land & Building
  • Factory Land & Building
  • Site Development Expenses
Plant & Machinery
  • Indigenous Machineries
  • Other Machineries (Miscellaneous, Laboratory etc.)
Other Fixed Assets
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  • Pre-operative and Preliminary Expenses
  • Technical Knowhow
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Working Capital Requirement Per Month
  • Raw Material
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Overheads Required Per Month And Per Annum
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Salary and Wages
Turnover Per Annum
Share Capital
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Annexure 1:: Cost of Project and Means of Finance
Annexure 2:: Profitability and Net Cash Accruals
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  • Expenses/Cost of Products/Services/Items
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  • Financial Charges
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Annexure 3 :: Assessment of Working Capital requirements
  • Current Assets
  • Gross Working. Capital
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Annexure 4 :: Sources and Disposition of Funds
Annexure 5 :: Projected Balance Sheets
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Annexure 6 :: Profitability ratios
  • D.S.C.R
  • Earnings Per Share (EPS)
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Annexure 7 :: Break-Even Analysis
  • Variable Cost & Expenses
  • Semi-Var./Semi-Fixed Exp.
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Annexure 8 to 11:: Sensitivity Analysis-Price/Volume
  • Resultant N.P.B.T
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  • Resultant PV Ratio
  • Resultant DER
  • Resultant ROI
  • Resultant BEP
Annexure 12 :: Shareholding Pattern and Stake Status
  • Equity Capital
  • Preference Share Capital
Annexure 13 :: Quantitative Details-Output/Sales/Stocks
  • Determined Capacity P.A of Products/Services
  • Achievable Efficiency/Yield % of Products/Services/Items
  • Net Usable Load/Capacity of Products/Services/Items
  • Expected Sales/ Revenue/ Income of Products/ Services/ Items
Annexure 14 :: Product wise domestic Sales Realisation
Annexure 15 :: Total Raw Material Cost
Annexure 16 :: Raw Material Cost per unit
Annexure 17 :: Total Lab & ETP Chemical Cost
Annexure 18 :: Consumables, Store etc.,
Annexure 19 :: Packing Material Cost
Annexure 20 :: Packing Material Cost Per Unit
Annexure 21 :: Employees Expenses
Annexure 22 :: Fuel Expenses
Annexure 23 :: Power/Electricity Expenses
Annexure 24 :: Royalty & Other Charges
Annexure 25 :: Repairs & Maintenance Exp.
Annexure 26 :: Other Mfg. Expenses
Annexure 27 :: Administration Expenses
Annexure 28 :: Selling Expenses
Annexure 29 :: Depreciation Charges – as per Books (Total)
Annexure 30 :: Depreciation Charges – as per Books (P & M)
Annexure 31 :: Depreciation Charges - As per IT Act WDV (Total)
Annexure 32 :: Depreciation Charges - As per IT Act WDV (P & M)
Annexure 33 :: Interest and Repayment - Term Loans
Annexure 34 :: Tax on Profits
Annexure 35 ::Projected Pay-Back Period And IRR