Detailed Project Report on gold & silver jewellery manufacturing unit

 
GOLD & SILVER JEWELLERY MANUFACTURING UNIT
 [CODE NO.3465]  


Gold Jewellery Casting is having great demand and also having a bright future scope. There is a good export potential of these products. 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 Gems and Jewellery industry in India, like other MSME industries, is a highly fragmented industry. This characteristic of the Gems & Jewellery industry leads to a high share of the unorganized sector as compared to the organized sector. The components of jewellery include not only traditional gold but also a variety of diamond and platinum. The industry also trades in varieties of precious and semi-precious stones.


COST ESTIMATION

Plant  Capacity                                        :   GOLD JEWELLERY CASTING                                      
land & Building                                       :    Rent
Plant & Machinery                                  :    Rs. 2.80 Cr
Working Capital for 2 Months              :    Rs. 62.33 Cr
Total Capital Investment                       :    Rs. 65.52 Cr
Rate of Return                                         :    39%
Break Even Point                                    :    29%


INTRODUCTION    
TYPES OF GOLD JEWELLERY
VARIETIES OF JEWELLERY ARE USED AS FUNCTIONAL OR TO ADORN
   BODY PARTS. THEY ARE    
JEWELLERY IS CATEGORIZED INTO THESE MAIN MANUFACTURING TERMS    
A BRIEF DESCRIPTION OF THE ABOVE MENTIONED TERMS ARE BEING
   GIVEN BELOW    
A. HANDMADE    
B. CAST    
C. DIE STRUCK    
D. GOLD FILLED & ROLLED-GOLD PLATE    
E. GOLD ELECTROPLATE    
PROPERTIES OF GOLD    
THESE PROPERTIES INCLUDE    
GRADE OF GOLD    
COLOR PALETTE OF GOLD/GOLD COMPOSITION    
MATERIALS USED IN GOLD JEWELLERY MAKING
(1) DIAMONDS    
(2) GEMSTONES    
(3) PEARLS    
(4) KUNDAN    
(5) ENAMEL    
B.I.S. SPECIFICATION    
PROCESS FLOW DIAGRAM    
MANUFACTURING PROCESS    
FOR GOLD CASTING JEWELLERY    
THE MAIN STEPS ARE GIVEN BELOW    
1. PREPARATION OF WAX PATTERN    
PATTERN DIES    
2. ASSEMBLE THE WAX PATTERNS    
3. PREPARATION OF INVESTMENT    
REFRACTORIES    
BINDERS    
SLURRY PREPARATION    
PATTERN TREE OR CLUSTER PREPARATION    
COATING AND DRYING    
4. REMOVAL OF PATTERN    
5. MOLD FIRING AND BURN OUT PROCESS    
6. MELTING AND CASTING PROCESS    
MELTING EQUIPMENT    
CASTING METHODS    
7. POSTCASTING OPERATIONS    
8. FINISHING    
POLISHING PROCESS    
EMBELLISHMENTS/DECORATIVE PROCESSES    
PLATING PROCESS    
9. PACKAGING AND TRANSPORTING    
10. INSPECTION AND TESTING    
MARKET POSITION    
MARKET SIZE    
INVESTMENTS/DEVELOPMENTS    
SOME OF THE KEY INVESTMENTS IN THIS INDUSTRY ARE LISTED BELOW.    
GOVERNMENT INITIATIVES    
ROAD AHEAD    
ORGANISED JEWELLERS WILL ENJOY 35% -40% OF DOMESTIC GOLD
   MARKET BY 2020    
GOLD JEWELLERY DEMAND    
GOLD RULES IN INDIA    
DEMOGRAPHICS TO BOOST GOLD JEWELLERY DEMAND WGC    
PUSH FACTORS HELPING CONSUMPTION OF COMPLEMENTARY JEWELLERY
IN INDIA    
CONSUMPTION OF JEWELLERY IN INDIA WILL GET STRONGER    
JEWELLERY RETAILLING BUSINESS MODEL    
EXHIBIT 7-1 GOLD'S BROAD APPEAL AS A SAFE HAVEN INVESTMENT IN INDIA    
FED UP RETAILERS TRYING TO DISRUPT THE DOMINANT BUSINESS MODEL    
EXHIBIT 7-2 RETAILER MARGINS FOR PRECIOUS JEWELLERY    
THERE IS A STRONG BUSINESS CASE FOR THIS    
MODERNIZATION OF THE RETAILING LANDSCAPE CRUCIAL FOR BRANDED JEWELLERY AND RETAIL JEWELLERY BRANDS    
MODERN STORES NOT SUSTAINABLE AT CURRENT GOLD MARGINS    
EXHIBIT 7-3 HIGHER BUSINESS COSTS...SAME MARGINS    
INDIA'S DEMOGRAPHIC TREND IS POSITIVE FOR PRECIOUS JEWELLERY CONSUMPTION    
EXHIBIT 5-1 INCREASING NUMBER OF PERSONS IN CORE AGES FOR
MARRIAGE    
EXHIBIT 5-2 INCREASING NUMBER OF MARRIAGES PER YEAR    
EXHIBIT 5-3 WOMEN TAKING LONGER TO GET MARRIED    
EXHIBIT 5-4 AGE PROFILE OF MARRIED COUPLES    
PLANT LAYOUT    
MANUFACTURERS/SUPPLIERS OF GOLD JEWELLERY    
SUPPLIERS OF PLANT AND EQUIPMENTS    
SUPPLIERS OF CHAIN MAKING MACHINE    

                            
APPENDIX – A:

 1.      COST OF PLANT ECONOMICS      
 2.      LAND & BUILDING                                      
 3.      PLANT AND MACHINERY                                  
 4.      FIXED CAPITAL INVESTMENT                             
 5.      RAW MATERIAL                                         
 6.      SALARY AND WAGES                                     
 7.      UTILITIES AND OVERHEADS                              
 8.      TOTAL WORKING CAPITAL                                
 9.      COST OF PRODUCTION                                   
10.      PROFITABILITY ANALYSIS                               
11.      BREAK EVEN POINT                                     
12.      RESOURCES OF FINANCE                           
13.      INTEREST CHART                                       
14.      DEPRECIATION CHART                                   
15.      CASH FLOW STATEMENT                                   
16.      PROJECTED BALANCE SHEET