Paramesh Seminar

Model Project ReportOn

MANUFACTURE OF COTTON SHIRTING

“Rapier Looms Project”(15 looms)

BY

Mr.Venkata Parameswararao.B

Roll no – 09210110 M.Tech (Textile

Technology)

Warping

Denting

Sizing

Drawing

Inspection & Dispatching

Weaving

Fig: Process flow diagram for weaving of cotton shirting material

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. Air Jet,2. Water Jet, 3. Rapier, 4. Gripper (Projectile) and5. Multi-Phase loom

Salient feature of Shuttleless looms:

1. Introduction about project

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.

Salient feature of Shuttleless looms:

Market potential of the project:

Today, India is considered one of the most cost-effective 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.

2. GENERAL CHARACTERISTICS OF THE PROJECT:

Assumption:

1. Status of the Project: Sale in Domestic Market

2. No. of Working Days/ Annum: 350 Days.

3. No. of working hours: 24 hrs.

4. Capacity Utilization:First year: 70%Second Year: 80%Third Year: 95%

5. Cost of power – For Machine: Subsidized rate @

Rs.310/-/HP/MonthFor Lighting: @ Rs.4/- per Kwh

6. Interest on Rupee Loan: @ Rs. 12% /Annum on Principal amountInterest on Working Capital: @ Rs.

7%/Annum7. 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:

Description Cloth width(Inches)

Warp Weft EPI PPI GSM

Cotton Shirting 63” 40s 40s 96 72 132.56

a. Product specifications:

b. Marketing:

c. Quality:

Based on domestic market only

4.1. PLANNING BASIS (Loom Programme):

Sr.No.

Sort Typeof

Loom

GreyWidth in

inches

ReedWidth in

inches

Count On loom

Warp (Ne) Weft (Ne) Ends/” Picks/”

1 CottonShirting

Rapier190 cms

63.00 66.15 40 40 96 72

RPM Eff % Mts/Day loom at 100% capacity Utilisation

Total No.ofLooms

TotalMtrs./day

TotalSq. metrePer day

GSM

500 85% 215.90 15 3238.5 5182.25 132.56

ESTIMATES OF COST OF THE PROJECT:

Sr.No

Description Total Cost (Rs. In Lakhs)

1 Land & Building 50

2 Plant & Machinery 445

3 MFA(Miscellaneous Fixed Assets)–Indigenous 44

4 Preliminary & pre operative 15

5 Provision for contingencies 20

6 Margin money for working capital 25

total 599

MEANS OF FINANCE:

Sr.No.

Description % Amount (Lakhs)

1 Total Equity 30 180

2 Term Loan 70 420

Total 600

LAND AND BUILDING:

S.NO.

Description Area (Sq.mts) Cost (Lakhs) Rs/-

1 Land 3000 18

2 Weaving Shed @2500/- 800 20

3 Warping& Sizing shed @2500/-

300 7.5

4 Yarn & Fabric Storage @2500/-

100 2.5

5 Office-Room @2500/- 40 1

6 Store-Room @2500/- 40 1

Total 50

Sr.No Description Unit Price Lakhs

No. ofMachines

Total cost (Lakhs)

1 Rapier Looms (WL 450China) 190Cms

25 15 375

2 Sizing machine 45 1 45

3 Warping machine 25 1 25

Total 445

PLANT AND MACHINERY:

MFA –Indigenous

Sr. No Description Cost (Rs/-Lakh)

1 Humidification 12.00

2 Electrical Installation 25.00

3 Water supply and drainage 0.50

4 Fire Fighting equipment 0.50

5 Air Compresseor 0.50

6 Weighing equipment 0.25

7 Workshop equipment 0.25

8 Material Handling and storage 1.5

9 Office equipment 1.5

10 Computers 2.0

Total 44

Preliminary and Pre-operative expenses: -

Sr.No Description Rs in Lakhs

1 Company formation expenses 1.00

2 Establishment and project 2.00

3 Rent Rate and Taxes 0.25

4 Postages & Stationery 0.25

5 Travelling expenses 2.00

6 Insurance 2.00

7 Consultancy fees 2.00

8 Market Development Expenses 1.00

9 Start up Expenses 2 raw material for one week 3.50

10 Other expenses for electrical & Water 1.00

Total 15

Salaries and wages:

Sr.No.

Description No.s Wage/month

Total/Annam

1. Production Technician 1 6,000 72,000

2. Production /Store Clerk 1 3,500 42,000

Total 2 1,14,000

1 Weavers 5 4,000 2,40,000

2. Jobber 2 4,000 96,000

3. Weaving - Helper 2 3,000 72,000

4. Warping & sizing attendees 2 4,000 96,000

5. Watch Man 1 2,500 30,000

Total 12 5,34,000

Grand Total 14 6,48,000

Compliments for workers:

Sr.No Description

1st Year

2nd Year

3rd Year   

1

Wages per Annum(5% increment from 2nd year)

 5.34

 5.61

 5.89

2

Fringe benefits @ 40%of wages 2.13 2.24 2.35

Total 7.47 7.85 8.24

3

Staff Salaries per Annum (5% increment from 2nd year) 1.14 1.2 1.26

4 

Fringe benefits @ 40%of wages 0.45 0.48 0.5

  Total 1.59 1.68 1.76

5 Grand Total 9.06 9.53 10

Operating Cost Details: -

Counts Yarn requiredKg/day

Rate/kgRs./Kg

Total Rs./Day

Cost/annumRs.in Lakhs

Warp 40’S Dyed Yarn 500 180 90000 315

Weft 40’S Dyed Yarn 252 170 42840 150

Total 752 465

First Year 70% U% 325.5

Second Year 80% u% 372

Third Year 95% U% 441.75

Cost of consumables stores and spares:

Weaving (Stores & Spares)

Rs./day Rs. Lakhs/ Annum

Weaving Section @ Rs. 60/machine Shift

1440 5.04

Total 5.04

First Year 70% U% 3.53

Second Year 80% U% 4.03

Third Year 95% U% 4.79

Cost of Packing:

Sort Meters per day

Cost of packing

Rs/meter

Total Rs/day

Total Rs Lakhs/annum

Cotton shirting material

3238.5 0.15 485.775 1.7

Total 1.7

First Year 70% U% 1.19

Second Year 80%U% 1.36

Third Year 95% U% 1.615

Power Requirement / Cost:

Sr.No

Items No. ofMachines

KW.Installed

TotalKW

ActualM/c toBe Worked

WorkingHours

KW xHrs.

1 Rapier LoomSizing machineWarping machineInspection machine

15111

824161

12024161

15111

2416168

2880384256

8

Sub total (1) 161 3528

2 Humidification PlantWater pumpsMiscellaneous

1 28.83.01.0

28.83.01.0

111

2448

691.212.08.0

Sub total (2) 32.8 711.2

Sub total (1+2) 193.8 4239.2

3 Lighting 6 6 24 144

Grand total 199.8 4383.2

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 DayMtrs.

Sale RateRs./Mtr

Valueloss@ 5%

Net SaleRs./Mtr

Rs./Day Rs. Lakhs /Annum

Cotton Shirting material

3238.5 72 3.6 68.4 221513.4 775.3

Total 3238.5 775.3

First year 70% utilization 542.71

second year 80% utilization 620.04

third year 95% utilization 736.54

Financial Projection:

Estimates of Cost of Production:

Operating Years 1st 2nd 3rd

Installed capacity(LOOMS)Capacity U%Estimated Production (Grey)

1570%2667

1580%3048

1595%3619.5

A. Raw Material (Yarn) Consumable Stores & spares Packing Materials

325.53.531.19

3724.031.36

441.754.791.615

Total – A 330.22 377.39 448.155

B. Utilities (Power) 11.65 11.65 11.65

C. Wages & Salaries

6.48 6.48 6.48

D. Factory overheads10% Miscellaneous 0.50.5

1.00.6

1.50..7

Total A+B+C+D= 349.35 397.12 468.48

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

Year Opening Balance Installment Balance Interest Total Amount Pay (Rs./Lakhs)

1st 420 - 420 29.4 29.4

2nd 420 - 420 29.4 29.4

3rd 420 52.5 367.5 25.725 78.225

4th 367.5 52.5 315 22.05 74.55

5th 315 52.5 262.5 18.375 70.875

6th 262.5 52.5 210 14.7 67.2

7th 210 52.5 157.5 11.025 63.525

8th 157.5 52.5 105 7.35 59.85

9th 105 52.5 52.5 3.675 56.175

10th 52.5 52.5 0 0 52.5

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

Year Opening Balance Installment Balance Total Amount Interest . Pay(Rs./Lakhs)

1st 25 2.5 22.5 3

2nd 22.5 2.5 20 2.7

3rd 20 2.5 17.5 2.4

4th 17.5 2.5 15 2.1

5th 15 2.5 12.5 1.8

6th 12.5 2.5 10 1.5

7th 10 2.5 7.5 1.2

8th 7.5 2.5 5 0.9

9th 5 2.5 2.5 0.6

10th 2.5 2.5 0 0.3

Break-even point:

Rs. In Lakhs

A A Sales (net) 736.54B Variable Cost

- Raw material 441.75

- Consumable 4.79

- Packing 1.615

- Utilities 11.65

- Interest on working Capital 3.00

- Selling Expenditure & Commission 4.25

Total – B 467.05

CContribution (A-B) 269.48

Break Even Quantity: for (3rd year) = F/(P-V)

= (107.76*100000)/(68.4- 41.2)

= 3,96,176.47 Mtr

D Fixed Cost

Wages and salaries 6.48

Factory Overheads 0.5

Interest on Term loan & Installment 56.28

Depreciation 10% 44.5

Total 107.76

Break-even point:

F= Fixed costP= Selling price/unitF= Variable cost/unit