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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 |
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% |