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)
