Model Project Report On MANUFACTURE OF COTTON SHIRTING

Rapier Looms Project (15 looms)

BY Parameswararao.B Technology) Mr.Venkata Roll no 09210110 M.Tech (Textile

Fig: Process flow diagram for weaving of cotton shirting material

Warping

Sizing

Drawing

Denting

Weaving

Inspection & Dispatching

1. Introduction about project

Salient feature of Shuttleless looms:

Shuttleless looms have been developed to overcome the inherent problems created by the dynamics of the picking mechanism on the conventional Fly Shuttle Looms. various types of Shuttleless Weaving Machines named after the method employed for weft insertion. 1. 2. 3. 4. 5. Air Jet, Water Jet, Rapier, Gripper (Projectile) and Multi-Phase loom

Salient feature of Shuttleless looms:

Shuttleless Weaving Machines are generally of wider widths enabling the simultaneous weaving of two or more widths. upto 400/420 cms. in the case of Air Jet and Rapier and upto 540 cms. in case of Gripper.

The weft insertion rates achieved are 1560, 1480, 2850 and 2565 Mtrs./Mt. for Gripper, Rapier, Air Jet and Water Jet Weaving Machines respectively.

Salient feature of Shuttleless looms:

Shuttleless Weaving Machines are designed to match the requirements of

high insertion rates, Low depth of shedding, beating and other auxiliary motions. Let-off and take-up mechanisms and weft monitoring are invariably controlled through microprocessors. The machines are equipped with features like automatic pick finding & repairing and weft accumulators.

2. GENERAL CHARACTERISTICS OF THE PROJECT: Market potential of the project:

Today, India is considered one of the most costeffective and high-quality destinations to source cotton shirts. Cotton Shirts are the most comfortable wear that anyone can enjoy wearing. Shirts made up of cotton provide full comfort and relaxation to body. Cotton shirts are the most common wear for men, women, children and everyone.

So definitely we can expect that there is a large scope for this project.

Assumption:
1.

Status of the Project:

Sale in Domestic Market 350 Days. 24 hrs. First year: 70% Second Year: 80% Third Year: 95% For Machine: Subsidized rate @ Rs.310/-/HP/Month For Lighting: @ Rs.4/- per Kwh @ Rs. 12% /Annum on Principal amount Interest on Working Capital: @ Rs. 7%/Annum

2. No. of Working Days/ Annum: 3. No. of working hours: 4. Capacity Utilization:

5. Cost of power

6. Interest on Rupee Loan:

7. Raw Material: Cotton dyed Yarn Count 40s warp yarn: Rs.180/- Per Kg. 40s weft Yarn: Rs 170/- per kg. 8. Selling Price: Rs. 72/- per Mtr.

2. GENERAL CHARACTERISTICS OF THE PROJECT:

a. Product specifications: Description Cotton Shirting Cloth width (Inches) 63 Warp Weft EPI PPI GSM

40s

40s

96

72

132.56

b. Marketing: c. Quality:

Based on domestic market only

4.1. PLANNING BASIS (Loom Programme):

Sr. No.

Sort

Type of Loom

Grey Width in inches

Reed Width in inches Warp (Ne)

Count

On loom

Weft (Ne) 40

Ends/ 96

Picks/ 72

Cotton Shirting

Rapier 190 cms

63.00

66.15

40

RPM

Eff %

Mts/Day loom at 100% capacity Utilisation 215.90

Total No.of Looms 15

Total Mtrs./day 3238.5

Total Sq. metre Per day 5182.25

GSM

500

85%

132.56

ESTIMATES OF COST OF THE PROJECT:

Sr.No Description

Total Cost (Rs. In Lakhs)

50 445 44 15 20 25

1 2 3 4 5 6

Land & Building Plant & Machinery MFA(Miscellaneous Fixed Assets)Indigenous Preliminary & pre operative Provision for contingencies Margin money for working capital

total

599

MEANS OF FINANCE:

Sr.No. Description 1 2 Total Equity Term Loan Total

% 30 70

Amount (Lakhs) 180 420 600

LAND AND BUILDING:

S.NO. Description 1 2 3 4 5 6 Land Weaving Shed @2500/Warping& Sizing shed @2500/Yarn & Fabric Storage @2500/Office-Room @2500/Store-Room @2500/Total Area (Sq.mts) 3000 800 300 100 40 40 Cost (Lakhs) Rs/18 20 7.5 2.5 1 1 50

PLANT AND MACHINERY:

Sr.No

Description

Unit Price Lakhs 25

No. of Machines 15

Total cost (Lakhs) 375

Rapier Looms (WL 450 China) 190Cms Sizing machine Warping machine Total

2 3

45 25

1 1

45 25 445

MFA Indigenous
Sr. No 1 2 3 4 5 6 7 8 9 10 Description Humidification Electrical Installation Water supply and drainage Fire Fighting equipment Air Compresseor Weighing equipment Workshop equipment Material Handling and storage Office equipment Computers Total Cost (Rs/-Lakh) 12.00 25.00 0.50 0.50 0.50 0.25 0.25 1.5 1.5 2.0 44

Preliminary and Pre-operative expenses: Sr.No 1 2 3 4 5 6 7 8 9 10 Description Company formation expenses Establishment and project Rent Rate and Taxes Postages & Stationery Travelling expenses Insurance Consultancy fees Market Development Expenses Start up Expenses 2 raw material for one week Other expenses for electrical & Water Total Rs in Lakhs 1.00 2.00 0.25 0.25 2.00 2.00 2.00 1.00 3.50 1.00 15

Salaries and wages:

Sr.No. 1. 2. Description Production Technician Production /Store Clerk Total 1 2. 3. 4. 5. Weavers Jobber Weaving - Helper Warping & sizing attendees Watch Man Total Grand Total No.s 1 1 2 5 2 2 2 1 12 14 4,000 4,000 3,000 4,000 2,500 Wage/ month 6,000 3,500 Total/ Annam 72,000 42,000 1,14,000 2,40,000 96,000 72,000 96,000 30,000 5,34,000 6,48,000

Compliments for workers:

Sr.No

Description

1st Year

2nd Year

3rd Year

1 2

Wages per Annum (5% increment from 2nd year) Fringe benefits @ 40% of wages Total Staff Salaries per Annum (5% increment from 2nd year) Fringe benefits @ 40% of wages Total Grand Total

5.34 2.13 7.47 1.14 0.45 1.59 9.06

5.61 2.24 7.85 1.2 0.48 1.68 9.53

5.89 2.35 8.24 1.26 0.5 1.76 10

3 4

Operating Cost Details: -

Counts

Yarn required Rate/kg Kg/day Rs./Kg 500 180 170

Total Rs./Day 90000 42840

Cost/annum Rs.in Lakhs 315 150 465 325.5 372 441.75

Warp 40S Dyed Yarn

Weft 40S Dyed Yarn 252 Total First Year 70% U% Second Year 80% u% Third Year 95% U% 752

Cost of consumables stores and spares:

Weaving (Stores & Spares) Weaving Section @ Rs. 60/machine Shift Total First Year 70% U% Second Year 80% U% Third Year 95% U%

Rs./day

Rs. Lakhs/ Annum

1440

5.04

5.04 3.53 4.03 4.79

Cost of Packing:

Sort

Meters per Cost of packing day Rs/meter 3238.5 0.15

Total Rs/day 485.775

Total Rs Lakhs/annum 1.7 1.7 1.19 1.36 1.615

Cotton shirting material Total First Year 70% U% Second Year 80%U% Third Year 95% U%

Power Requirement / Cost:

Sr.No Items No. of Machines 15 1 1 1 KW. Installed 8 24 16 1 Total KW 120 24 16 1 161 1 28.8 3.0 1.0 28.8 3.0 1.0 32.8 193.8 6 6 199.8 24 1 1 1 24 4 8 Actual M/c to Be Worked 15 1 1 1 Working Hours 24 16 16 8 KW x Hrs. 2880 384 256 8 3528 691.2 12.0 8.0 711.2 4239.2 144 4383.2

Rapier Loom Sizing machine Warping machine Inspection machine Sub total (1) 2 Humidification Plant Water pumps Miscellaneous Sub total (2) Sub total (1+2) 3 Lighting Grand total

Power Cost Details: Machinery: Total Connected Load = 193.8 KW = 259 HP KW Hours @ 100% Utilization = 4239.2 Subsidized Rate @ Rs. 310/ HP per month Total Power Cost /Annum = 310 259 12 = Rs. 9.64 Lakhs Lighting: Total Connected Load = 6.0 KW KW Hours @ 100% Utilization = 144.0 Cost of power Rs. / KWH = 4.00 Total Power Cost /Annum = 4.00 144 350 = Rs. 2.01 Lakhs Grand Total of Power Cost / Annum = 9.64 + 2.01 = Rs. 11.65 Lakhs

Sales realization: Domestic market:

Fabric Type

Production Per Day Mtrs. 3238.5 3238.5

Sale Rate Value Rs./Mtr loss @ 5% 72 3.6

Net Sale Rs./Mtr

Rs./Day

Rs. Lakhs /Annum 775.3 775.3 542.71 620.04 736.54

Cotton Shirting material Total

68.4

221513.4

First year 70% utilization second year 80% utilization third year 95% utilization

Financial Projection: Estimates of Cost of Production:

Operating Years Installed capacity(LOOMS) Capacity U% Estimated Production (Grey) A. Raw Material (Yarn) Consumable Stores & spares Packing Materials Total A B. Utilities (Power) C. Wages & Salaries D. Factory overheads10% Miscellaneous Total A+B+C+D= 325.5 3.53 1.19 330.22 11.65 6.48 0.5 0.5 349.35 372 4.03 1.36 377.39 11.65 6.48 1.0 0.6 397.12 441.75 4.79 1.615 448.155 11.65 6.48 1.5 0..7 468.48 1st 15 70% 2667 2nd 15 80% 3048 3rd 15 95% 3619.5

Repayment Schedule for Principal Amount: @ 7.00% per Annum:

Year 1st 2nd 3rd 4th 5th 6th 7th 8th 9th 10th

Opening Balance 420 420 420 367.5 315 262.5 210 157.5 105 52.5

Installment 52.5 52.5 52.5 52.5 52.5 52.5 52.5 52.5

Balance 420 420 367.5 315 262.5 210 157.5 105 52.5 0

Interest 29.4 29.4 25.725 22.05 18.375 14.7 11.025 7.35 3.675 0

Total Amount Pay (Rs./Lakhs) 29.4 29.4 78.225 74.55 70.875 67.2 63.525 59.85 56.175 52.5

Repayment Schedule for Working Capital: @ 12% per Annum:

Year Opening Balance Installment Balance Total Amount Interest . Pay (Rs./Lakhs) 3 2.7 2.4 2.1 1.8 1.5 1.2 0.9 0.6 0.3

1st 2nd 3rd 4th 5th 6th 7th 8th 9th 10th

25 22.5 20 17.5 15 12.5 10 7.5 5 2.5

2.5 2.5 2.5 2.5 2.5 2.5 2.5 2.5 2.5 2.5

22.5 20 17.5 15 12.5 10 7.5 5 2.5 0

Break-even point:

Rs. In Lakhs A B A Sales (net) Variable Cost

- Raw material - Consumable - Packing - Utilities - Interest on working Capital - Selling Expenditure & Commission

736.54 441.75 4.79 1.615 11.65 3.00 4.25 467.05 269.48

Total B C Contribution (A-B)

Break-even point:

D Fixed Cost Wages and salaries Factory Overheads Interest on Term loan & Installment Depreciation 10% Total 6.48 0.5 56.28 44.5 107.76 F= Fixed cost P= Selling price/unit F= Variable cost/unit

Break Even Quantity: for (3rd year) = F/(P-V) = (107.76*100000)/(68.4- 41.2) = 3,96,176.47 Mtr