Unlimitedprojects.com

INTEGRATED COTTON SPINNING KNITWEAR

Product
 
Integrated cotton spinning and knitwear. The project will be an Export Oriented Unit (EOU). 

Capacity/Shifts/Days
 
The Installed capacity of the spinning unit will be 52,416 spindles. The minimum economic size is 30,000 spindles. At 100% utilisation level, the project can produce 9.14 Million kgs. of average count 35.17's. The 30's count hosiery will be for internal consumption and the 40's count will be for sale as yarn. 

The proposed product mix of the spinning section is as follows 
 

Count (Ne)

No. of Spindles

Kgs/ day Kgs/annum

% Of prod..

30's C( H) 
40's C 
2/ 40's C 
20,160
32,256
11,740
7,528
  5,019 
4,109,000
2,634,800
1,756,650
48%
31%
21%
Total
52,416
24,287
8,500,450
100%

 

The above product mix is based on optimum plant capacity utilisation of 93 % from third year onwards. 

The installed capacity of the knitted fabrics will be 24 knitting machines. At 100% plant capacity utilisation the plant will produce 11,122 kgs/day of the proposed product mix. 

The proposed product mix is as follows :

Quality

kgs/day 

 Single jersey Rib 

Total

kgs/ annum

 Rib Single

Bleach unmercerised 600  400 1,000 210,000 140,000 
Dyeing  600 400  1,000  210,000  140,000
Light shades unmercerised  800  800  1,600 280,000 280,000 
Light shades mercerised  600  -  600  210,000  - 
Medium shades unmercerised  1,400 1,200 2,600  490,000 420,000 
Medium shades 
mercerised 
600 600  210,000
Dark shades unmercerised  1,400  1,000  2,400  490,000  350,000 
Dark shades mercerised  600 722 1,322  210,000 252,700 
Total Production 6,600 4,522 11,122 2,310,000 1,582,700

At optimum capacity utilisation level of 93% which is achievable from third year onwards the production will be 10,343 kgs/day of knitted fabrics. 

Raw Materials/Consumables
 
The main raw material for manufacturing quality yarn is different types of cotton.  

Utilities

Water 1500 KL/day 
Power 8000 KVA 

Employment Potential
 
Skilled 400 
Unskilled 190 
Administrative/Supervisory 220 
Total  810
 

Project Cost (Rs. in Mn.) 
 

Particulars  Cost 
Land & Land Development (125,000 sq. m.) 25.00 
Building & Civil Structure (50,000 sq. m.)  200.00 
Plant & Machinery   
- Imported  1500.00 
- Indigenous  70.00 
Utilities, Services & Misc. Fixed Assets  200.00 
Preliminary & Preoperative expenses  120.00 
Contingency  211.50 
Margin Money for Working Capital  66.50 
Total :  2393.00
(US$ 52.02 Mn. assuming $=Rs 46)

 Means of finance(Rs. in Mn.)
 
Share Capital      957.20 
Term Loan          1435.80 
Total                 2393.00
 

Profitability/Working Results (Rs. in Mn.)
 

  Year I Year II Year III
Capacity Utilisation (%) 70.00  80.00  90.00 
Production (In TPA)       
Yarn  5950.00 6800.00  7650.00 
Knitted Fabric 2310.00 2640.00  2970.00 
Total Sales Realisation (A) 1271.90  1453.60 1635.30 
Cost of Production (B)  1165.29  1254.00 1315.80 
Profit before Tax (A-B) 106.61 199.60 319.50 
Profit After Tax  106.61 199.60  319.50 

 

Economic Indicators
 

Particulars  Cost 
Repayment period  8 years including 2 Year’s moratorium
Return on Investment (3rd year) 28.23% 
D.S.C.R (Average) 1.70 : 1 
Break-Even point (3rd year) 54.30% of installed capacity 
Return On Equity (3rd year) 33.38% 
Internal Rate of Return (IRR) 21.00%