Prices
Yarn (Rs. / Kg) Rs. 160
Grey Fabric (Rs. / mtr) Rs. 62
Cost of Accessories (Rs/pcs) 34
Garments S.P. (Rs./pc) USD 5.25*
* The average price of the garments is USD 5.25. The exchange rate considered is Rs. 63 / USD
The total output and the raw material requirement under various process heads is summarised in the table under.
Total Requirement Cotton yarn for GF GF for FF Garments for Retailing Kgs /month mtr/day Pcs/month
Requirement and Demand 51,546 797,900 296,000
Note: All the numbers have been rounded off.
▪ The raw material requirement for every stage is based on conversion factor mentioned earlier.
▪ The production capacities under various process heads are at optimum level.
As can be observed from the table, the company after the completion of all the …show more content…
It supplies its finished products to large international brands like Vero Moda and Jack & Jones. A large corporation with 38000 employees is engaged in the manufacture of a large range of fabrics and garments and is the largest shirt manufacturer in India. With impetus from ‘Make in India’ seen and large demand increase forecasted, BRFL management is now looking to set up a new production unit, and more importantly they want it to emboldened with the latest technology. The recent introduction of amended technology upgradation fund scheme (A-TUFS) is expected to ease financial burden and renewed investment in the textile sector. The case looks at the various fixed and various cost involved in setting up a textile production unit, with prediction on the revenue generated from it. The various pricing models that could affect the problem at hand is studied. The study about break-even point analysis in terms of revenues and sales units is important in this context. BRFL has a large debt because of some mis-timed capex plans in the past and hence this needs to be considered while going for
Yarn (Rs. / Kg) Rs. 160
Grey Fabric (Rs. / mtr) Rs. 62
Cost of Accessories (Rs/pcs) 34
Garments S.P. (Rs./pc) USD 5.25*
* The average price of the garments is USD 5.25. The exchange rate considered is Rs. 63 / USD
The total output and the raw material requirement under various process heads is summarised in the table under.
Total Requirement Cotton yarn for GF GF for FF Garments for Retailing Kgs /month mtr/day Pcs/month
Requirement and Demand 51,546 797,900 296,000
Note: All the numbers have been rounded off.
▪ The raw material requirement for every stage is based on conversion factor mentioned earlier.
▪ The production capacities under various process heads are at optimum level.
As can be observed from the table, the company after the completion of all the …show more content…
It supplies its finished products to large international brands like Vero Moda and Jack & Jones. A large corporation with 38000 employees is engaged in the manufacture of a large range of fabrics and garments and is the largest shirt manufacturer in India. With impetus from ‘Make in India’ seen and large demand increase forecasted, BRFL management is now looking to set up a new production unit, and more importantly they want it to emboldened with the latest technology. The recent introduction of amended technology upgradation fund scheme (A-TUFS) is expected to ease financial burden and renewed investment in the textile sector. The case looks at the various fixed and various cost involved in setting up a textile production unit, with prediction on the revenue generated from it. The various pricing models that could affect the problem at hand is studied. The study about break-even point analysis in terms of revenues and sales units is important in this context. BRFL has a large debt because of some mis-timed capex plans in the past and hence this needs to be considered while going for