LYCRA AIR COVERED YARN

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1 LYCRA AIR COVERED YARN PRODUCT CODE : NA QUALITY AND STANDARDS : As per Customer requirement PRODUCTION CAPACITY : 60 Tonnes (per annum) Value : Rs. 1,53,00,000/- MONTH AND YEAR : May, 2014 OF PREPARATION PREPARED BY : Sh. Neeraj Sharma Assistant Director (Tailoring) 1. INTRODUCTION Air Covering is the process of combining the two or more yarn to create a unique yarn with new combinations of characteristics. During the process the yarns are feed into the intermingling jet, which then gives the desired type of intermingling quality needed in a downstream process. There are various covering processes available for production. Among the various covering process the Air covering is the most productive process to date. 2. MARKET POTENTIAL Stretchable woven and knitted fabrics are setting new standards in clothing psychology, permitted stretch where and when needed. Stretchable fabrics will further penetrate the textile market thereby increasing its market share. Elasthane yarn in combination with other yarns is the base for the stretchable fabric. In fabric elasthane yarns are incorporated in the form of multi component yarns. Elasthane Fabric demand is increasing day by day by the enhancement in demand of sportswear, socks, swimwear and seamless

2 Tailoring Division 3. BASIS AND PRESUMPTIONS i. 250 sq. mt. covered area is required on rental Rs. 30 per sq. mt. depends upon area to area. ii. iii. iv. It is considered that machine will work in all three shifts and considered a working of 25 days in a month and considered 300 days working in a year. To achieve full production 1 to 2 months trial production required. The salaries and wages, cost of raw material, utilities, rent of the shed etc. are based on prevailing rates in and around local region at the time of preparation and are subject to necessary changes from time to time based on local/ International conditions. v. The project preparation cost and non-refundable deposits may be considered under the head of pre-operative expenses vi. Interest on capital investment has been 15 % vii. Depreciation has been considered as a) On plant and 10% b) On office furniture and 20% c) On other fixed 20%. 4. IMPLEMENTATION SCHEDULE Sr. Activity No. 1 Site selection preparation of project report and other formalities, application for loan and finance/ disbursement and DIC registration etc. 2 Seeking quotation for machines, purchase and installation, obtaining clearances from Pollution Control Board and other Govt. bodies and agencies. 3 Procurement of raw material, recruitment of staff and labour and commercial production Period ( in Weeks) TECHNICAL ASPECTS 5.1. Process of Manufacturing Polyester/Nylon Yarn is Air covered/intermingled with Spandex yarn while passing through the Air Jet. The Percentage of spandex is controlled through an electronic controlling device which helps in maintaining uniform ratio of polyester/ Nylon & Spandex in the fabric. It will give 3-4 Punching in an inch which keeps the different qualities of yarns intact for better performance in Knitting /weaving

3 Lycra Air Covered Yarn 5.2. Quality Control and Standards No specific standard available, quality should be ensured as per specific customer demand Production Capacity This scheme envisages manufacturing of 60T of Poly Spandex at 90% capacity Motive Power 9 HP for the Jet/Spindles & 30 HP is required for Air compressor/dryer etc Pollution Control This project does not create any Air or water pollution. It only create a noise pollution which is within the stipulated permissible limits 5.6. Machinery Utilisation The Intermingling Jet/Spindles is the Bottleneck in this industry. The capacity utilization is considered to be 90% of the total installed capacity. 6. FINANCIAL ASPECT 6.1. Fixed Capital Machinery and Equipments Sr. Qty Price Total Price Description No. Required (Rs.) (Rs.) 1 Air covering Machine with 24 Spindle 1 11,40,000 11,40,000 2 Air Compressor 30 HP, dryer, tank, etc. 1 5,00,000 5,00,000 3 Weighing Scale, Capacity 100 Kg 1 10,000 10,000 4 Testing Equipment L.S. 15,000 Total 16,65,000 Electrification and installation Rs. 1,00,000 Office equipments and Furniture (LS) Rs. 50,000 Cost of auxiliary Items like Trolley, Box Strapping, etc. Rs. 50,000 Total Fixed Capital Requirement Rs. 18,65,000/

4 Tailoring Division 6.2. Working Capital (per month) Building Covered area for Production, office, store, etc. on rent of Rs. 20,000 per month Personnel Description Nos. Salary (Rs.) Total (Rs.) Supervisor 1 12,000 12,000 Skilled worker 3 10,000 30,000 Watchman / Peon 1 7,000 7,000 Total 49, Raw Material Description Qty Required Price Total Value (Rs.) Polyester yarn 80 D 4, ,40,000 Spandex yarn 20 D ,05,100 Polybag for packing ,850 Corrugated Box for packing ,400 Oil & Lubrication ,800 Total 8,58, Utilities Utilities Total Units Rate Total (Rs.) Power (Based on 32 KW required Per 8.5/) 19, ,63,200 Other Contingency expenses Rs. 30,000 (Like Postages, Travel, Advertisement, Repair, Telephone etc) Total Recurring Expenditure (per month) 1. Building Rent Rs. 20, Salaries Rs. 49, Raw materials Rs. 8,58, Utilities Rs. 1,63, Other contingent expenses Rs. 30,000 Total Rs. 11,20, FINANCIAL ANALYSIS 7.1. Cost of Production (per annum) 1. Total recurring cost Rs. 1,34,44, Depreciation on machinery and 10% Rs. 1,66, Depreciation on tools and 20% Rs. 10, Depreciation on furniture and office 20% Rs. 10, % on total capital (29,85,350) Rs. 4,47,802 Total Rs. 1,40,78,

5 Lycra Air Covered Yarn 7.2. Turnover (per annum) Turn Over Total Production X Selling Rate per Kg 60 Rs. 255 Rs. 1,53,00,000/ Net Profit (per annum) Turnover cost of production Rs. 1,53,00,000 1,40,78,502 Rs. 12,21,498/ Net Profit Ratio Net profit per year Turnover per year 12,21,498 1,53,00, % 7.5. Rate of Return Net profit per year Total Capital Investment 12,21,498 29,85, % 7.6. Break-even Point Fixed Cost (Per Annum in Rs.) Rent 2,40,000 Total Depreciation 1,86,500 Total Interest 4,47,802 40% of salary and wages 2,35,200 40% of other Contingent expenses 1,44,000 Total 12,53,502 B.E.P Fixed Cost Fixed Cost + Net Profit 12,53,502 12,53, ,21, % -185-

6 Tailoring Division Addresses of Machinery Manufacturers and Suppliers 1. Aalidhra Textile Engineers Ltd. 307, Monarch Chamber Marol- Maroshi Road, Andheri East, Mumbai Website: 2. Sapru Machine Pvt. Ltd. Road No.11,Udhana, Surat (Gujarat) Website: Addresses of Raw Material Suppliers 1. Reliance Industries Limited Makers Chambers - IV, Point, Mumbai Tel: Raj Rayon Industries Ltd. 5 C, 196 / 197, Akshay Mittal Industrial Estate Sakinaka, Mumbai Tel: Website: 3. Indorama Industries Limited Tower-F. 3rd Floor; DLF IT Park Chandigarh Tel: Welspun House, 7th Floor, Kamala Mills Compound, Senapati Bapat Marg, Lower Parel, Mumbai

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