Detailed Project Report (DPR) on hard fabric trolley bag manufacturing unit (Capacity: 100 Numbers Per Day)

HARD FABRIC TROLLEY BAG MANUFACTURING UNIT

[EIRI/EDPR/4552] J.C.: 2769XL

INTRODUCTION

The luggage industry in India flourished in 2022 on the back of a 50% -70% increases in sales growth as compared to the pre-pandemic period of 2019 which was historically the best year for the industry. Factors like increased travel, a surge in weddings, demand from the Bharat consumer, and changing behavior - with every individual preferring to have their own luggage contributed to this growth spurt.

The market size of the luggage sector is pegged at about INR 50,000 crore in India with branded luggage contributing to 25% of the overall pie. Retail sales have grown phenomenally due to travel and weddings while CSD (Canteen Stores Department) sales will see a downtrend as per estimates. The industry is seeing a shift from unorganized to organized – some reasons include increasing disposable income, e-commerce penetration in the Bharat market, and brand awareness. Further, changes in the way consumers travel like solo travel, multiple trips in a year, weekend getaways, and international travel, have induced shorter replacement cycles in the industry (from 8-10 years earlier to 2-3 years). In this oligopolistic industry, the top 3 companies VIP, Samsonite, and Safari control about 70% of the organized market.

Prior to COVID, most companies relied on imports from China; post-covid, companies have started setting up manufacturing facilities in India thereby reducing costs. The industry has primarily been segmented into hard luggage and soft luggage. Hard luggage includes suitcases and trolley bags. Soft luggage, on the other hand, includes a range of products like duffle bags, backpacks, soft-cover suitcases, and shoulder bags among others. While soft luggage occupies a larger market share, hard luggage is increasingly adopted by the millennial consumer.

Traditionally, luggage was boxy and heavy and was difficult to push and drag. With the increasing demand and millennial population, we now have travel bags with four wheels and a soft outer shell in vibrant and attractive colors. Further, millennials prefer an array of choices that are being catered to by new-age startups in the luggage segment.

Various Opportunity for startups and factors driving growth

Several new brands that have come into this market are disrupting the luggage category through innovative features like increased utility and security, charging ports, and suited-to-use luggage like an overnight backpack. Hugely standard offerings by the incumbent oligopolistic players have made innovation a possibility in this space. Few brands solving for the millennial population (which is the newest and biggest consumer of the luggage industry) are opening doors with the consumer through fashionable and high-utility products. Further, an increasing disposable income, brand consciousness, and image consciousness are leading to people disposing of old luggage and shifting to branded premium as well as luxury luggage.

The playbook for new-age companies who aim to capture this market has been relatively clear. Targeting the millennial population through innovative high utility fashionable luggage has been a key driver for growth. Digital-first brands selling through various online modes of commerce have started acquiring customers with a millennial-first approach. Targeting tier-II markets and beyond through branded and low-cost offerings as compared to the unbranded segment has become another potential acquisition strategy. Startups that focus on factors like eco-friendly offerings and sustainability in luggage, tech-enablement, smart luggage, and product look and feel variations can get a foothold in the segment.

This sector is at an inflection point for growth – while the domestic demand continues to rise, India has an opportunity to become the next hub for luggage exports due to the China Plus One strategy.

COST ESTIMATION

Plant Capacity            100 Nos/Day  

Land & Building (800 sq.mt.)    Rs. 1.43 Cr    

Plant & Machinery                    Rs. 24 Lac 

Working Capital for 2 Months    Rs. 64 Lac 

Total Capital Investment          Rs. 2.36 Cr 

Rate of Return                          32%

Break Even Point                      63%

CONTENTS

INTRODUCTION

VARIOUS OPPORTUNITY FOR STARTUPS & FACTORS DRIVING GROWTH

KEY FEATURES OF POLYCARBONATE AND ABS HARD SHELL

POLYCARBONATES

ABS

POLYCARBONATE LUGGAGE AND ITS DESIGN

POLYCARBONATE LUGGAGE

SOME OF THE COMMON OPTIONS INCLUDE:

DOMESTIC CARRY-ON POLYCARBONATE LUGGAGE –

POLYCARBONATE HARDSIDE CARRIES ON SPINNER SUITCASE –

HARDSIDE MEDIUM CHECKED POLYCARBONATE LUGGAGE –

HARDSIDE LARGE CHECKED POLYCARBONATE LUGGAGE –

EXPANDABLE POLYCARBONATE LUGGAGE –

ECO-FRIENDLY POLYCARBONATE LUGGAGE SET –

ANTI-THEFT POLYCARBONATE LUGGAGE –

DIFFERENT SIZES OF POLYCARBONATE LUGGAGE

HARD SIDE POLYCARBONAT CASE

GUIDE TO LUGGAGE MATERIALS

HARDSIDE LUGGAGE MATERIALS

ACRYLONITRILE BUTADIENE STYRENE (ABS)

POLYCARBONATE (PC)

ABS/PC COMPOSITE

POLYPROPYLENE (PP)

DEVELOPMENT OF TROLLEY BAG INDUSTRY

HARDSHELL

SOFT BODY

BRIGHTLY COLORED

ADEQUATE SIZE

ACCESSIBILITY

LUGGAGE INDUSTRY SEGMENTATION

THERE ARE PRIMARILY 2 KINDS OF LUGGAGE:

HOW IS THE INDIAN LUGGAGE INDUSTRY SHAPING UP?

HOW DOES THESE CANTEEN STORE DEPARTMENT (CSD) WORK?

LETS LOOK AT THE TOP PLAYERS OF THIS OLIGOPOLISTIC INDUSTRY?

MARKET SHARE- ORGANIZED INDIAN LUGGAGE INDUSTRY

BRANDS OF VIP INDUSTRIES

SAMSONITE

BRANDS OF SAMSONITE

SAFARI INDUSTRIES LTD

MARKET OVERVIEW OF INDIAN LUGGAGE AND BAG MARKET

INDIA LUGGAGE AND BAGS MARKET SEGMENTATION

CURRENT STATES OF LUGGAGE INDUSTRY

INDUSTRY SET TO GROW AT 15% FOR NEXT 5 YEAR

GROWING MIDDLE INDIA AND ITS INCREASING PROPENSITY TO INDULGE WILL ACCELERATE THE INDUSTRY GROWTH

FREQUENCY JUMP IN TRAVEL TURNING LUGGAGE INTO LIFESTYLE PRODUCTS

CONSUMER COHORTS EXTENDING BEYOND TRAVEL

MILESTONES

HEALTHY GEOGRAPHICAL PRESENCE

STRATEGIC ADVANTAGE OF OWN MANUFACTURING

MANUFACTURING PROCESS OF HARD CASE TROLLY BAGS

PROCESS FLOW DIAGRAM

PRINCIPLES OF PLANT LAYOUT

STORAGE LAYOUT:

EQUIPMENT LAYOUT:

SAFETY:

PLANT EXPANSION:

FLOOR SPACE:

UTILITIES SERVICING:

BUILDING:

MATERIAL-HANDLING EQUIPMENT:

RAILROADS AND ROADS:

MAJOR PROVISIONS IN ROAD PLANNING FOR MULTIPURPOSE SERVICE ARE:

PLANT LOCATION FACTORS

PRIMARY FACTORS

1. RAW-MATERIAL SUPPLY:

2. MARKETS:

3. POWER AND FUEL SUPPLY:

4. WATER SUPPLY:

5. CLIMATE:

SPECIFIC FACTORS

6. TRANSPORTATION:

A. AVAILABILITY OF VARIOUS SERVICES AND PROJECTED RATES

7. WASTE DISPOSAL:

8. LABOR:

9. REGULATORY LAWS:

10. TAXES:

11. SITE CHARACTERISTICS:

12. COMMUNITY FACTORS:

13. VULNERABILITY TO WARTIME ATTACK:

14. FLOOD AND FIRE CONTROL:

EXPLANATION OF TERMS USED IN THE PROJECT REPORT

1. DEPRECIATION:

2. FIXED ASSETS:

3. WORKING CAPITAL:

4. BREAK-EVEN POINT:

5. OTHER FIXED EXPENSES:

6. MARGIN MONEY:

7. TOTAL LOAD:

PROJECT IMPLEMENTATION SCHEDULES

INTRODUCTION

PROJECT HANDLING

PROJECT SCHEDULING

PROJECT CONSTRUCTION SCHEDULE

TIME SCHEDULE

ADDRESSES OF RAW MATERIAL SUPPLIERS

ADDRESSES OF PLANT AND MACHINERY SUPPLIERS

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)