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This project report has been prepared on the basis of information available with M/S. INDIAN PROJECT RESEARCH INSTITUTE. The intention here is to provide preliminary information to the prospective entrepreneur. Prior to making a firm decision for investment in the project the entrepreneur must verify the various feasibility aspects together along with the addresses for the procurement of plant & machinery and raw materials independently. The information supplied in this report is obtained from the reliable sources but it is not guaranteed and the money once paid will not be refunded back in any case. Claims for incomprehensiveness of the project report will not be entertained and no legal action in this regard would be entertained in any case (Subject to Rajkot Jurisdiction only). Any matter relating to our standard points covered in the report may be modified with in 5 days time only from the date of purchase. | C | INDIAN PROJECT RESEARCH INSTITUTE
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APPENDIX - A 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. COST OF PLANT ECONOMICS LAND & BUILDING PLANT AND MACHINERY OTHER EXPENSES FIXED CAPITAL INVESTMENT RAW MATERIAL SALARY AND WAGES UTILITIES AND OVERHEADS TOTAL WORKING CAPITAL COST OF PRODUCTION PROFITABILITY ANALYSIS BREAK EVEN POINT RESOURCES OF FINANCE
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Nonwoven fabrics are broadly defined as sheet or web structures bonded together by entangling fiber or filaments (and by perforating films) mechanically, thermally or chemically. They are flat, porous sheets that are made directly from separate fibers or from molten plastic or plastic film. They are not made by weaving or knitting and do not require converting the fibers to yarn In comparatively simple terms, a non-woven may be described as a fabric having textile-like properties, which is prepared by banding fibers together, rather than by the traditional method of spinning into yarns, followed by weaving. Non-woven fabrics find their applications as carpets, blankets, upholstery, floor coverings, wall-coverings, automotive carpets, etc. Nonwoven fabrics are engineered fabrics that may be a limited life, single-use fabric or a very durable fabric. Nonwoven fabrics provide specific functions such as absorbency, liquid repellency, resilience, stretch, softness, strength, flame retardancy, washability, cushioning, filtering, bacterial barrier and sterility. These properties are often combined to create fabrics suited for specific jobs, while achieving a good balance between product use-life and cost. They can mimic the appearance, texture and strength of a woven fabric and can be as bulky as the thickest paddings. In combination with other materials they provide a spectrum of products with diverse properties, and are used alone or as components of apparel, home furnishings, health care, engineering, industrial and consumer goods. The fibers principally used are polyester, nylon and viscose with occasionally, small amounts of acrylic. These fibers are blended in varying amounts, depending on the type of interfacing being made. Techniques by which fabrics are made directly from the fibers, by passing both spinning and weaving, have been utilized for centuries in the production of felt and bark cloth. With the development of man-made fibers, and, in particular, the synthesis of thermoplastic fibers, technologies have evolved that have made possible the large scale production of non-woven fabrics marketed extensively for both durable and disposable items, non-woven fiber webs range from throw away diapers to blankets, from industrial filters to tea-bag covers.
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With the progress of the non-woven industry, there is increase in numbers of products made from such fabrics. At the present time, major marketing areas for non-woven include durables such as interfacings, interlinings, carpet backings, furniture and bedding, automotive and furniture padding, indoor outdoor carpet, blankets, and the construction industry. There are plenty of reasons to making use of, because it is water absorbents, strong, adaptive, spongy, washable, and even flame retardant nonwovens. The PP nonwovens are extremely hardwearing and qualified to hold up in hard circumstances. These types are even found in different purposes of hygienic, pharmaceutical, fabrics, laminates, shipping et cetera. Majority of nonwovens are of thermoplastic polymers are PP nonwovens. These are additionally put to use in parcel and transportation. The injection molding technique is applied to give a much needed design to this textile. With the enhancing tendencies within this field the areas of usages are numerous. These ideas replenished a lot of plastic items seen in clinics. They are vibrant to make floor coverings and mats to use in home. There are lots of applications we use these nonwovens. Those are easily obtainable in more affordable rates in the market. The usage of PP nonwovens and the Spunbond Nonwovens helps make familiar use items affordable, durable and convenient. These are the fabrics manufactured from the fibers, but as you see the fabrication approach makes the big difference. The utilization of PP nonwovens is widely within general main purpose products we daily use as if purses and handbags, carry bags et cetera. The classic plastic-type bags stretch then break. The paper bags tear if excess weight. The handbags manufactured from PP nonwovens are fantastic alternative of them all these kinds of problems. Hand bags are lightweight and water resistant. One can quite easily possess anything that is printed on all these kind of bags. The luminosity and print level of quality gets rich look on all of these handbags. The shopping centers replaced their bags made out of nonwoven fabric which brings in good image on their trademark. They are becoming more flexible to print high quality brand spanking graphics on these handbags.
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TEST METHOD OF SPUN BONDED FABRICS Spunbonded fabrics are characterized by standardized test procedures originally developed for textile fabrics and paper products. The Association of the Nonwoven Fabrics Industry (INDA) has published a list of test procedures that are routinely used in determining specific physical characteristics of spun-bonded and other nonwoven fabrics. Analogous test methods are published in Europe by EDANA, the European Association of Nonwoven Fabrics. INDA and EDANA are working together to develop and publish harmonized international test procedures. Many tests are established for the evaluation of non-strength related properties such as washability, stiffness, and softness. Great strides have been made in the test methodology used to evaluate the hand of materials for textile applications such as clothing. A methodology and equipment, permit- ting quantitative evaluation of fabric hand, have been developed.
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USES AND
APPLICATIONS OF NON-WOVENS
Uses for spunbonded fabrics have traditionally been segmented into durable and disposable categories. In the early 1970s, consumption of spunbondeds was pre- dominantly for durable uses such as carpet backing, furniture, bedding, and geotextiles. By 1980, however, disposable applications accounted for an increasingly large percentage due to the acceptance of lightweight (eg, 17 g/m2) spunbonded polypropylene fabrics as a coverstock for diapers and incontinence devices. In the 1990s, the use of new diaper and training pants designs have increased the demand for lightweight fabrics far beyond earlier predictions. Both the durable and disposable markets for spunbondeds have experienced dramatic growth ($6%/year). Disposable applications utilize the vast majority of the yardage produced although only $50% on a tonnage basis (56). Significant areas of durable growth have been in the building and construction industries where spunbondeds are used in geotextiles, roofing membranes and House wrap. Growth has also been achieved in primary carpet backing in automotive carpets and carpet tiles, where moldability and high dimensional stability, respectively, were achieved through the use of polyester spunbonds. With the possible exception of House wrap, however, there have been virtually no new markets established as a result of the special characteristics of spunbonded fabrics. Growth has come about in an evolutionary fashion where spunbonded fabrics were substituted for woven fabrics, other nonwoven fabrics (including knits), paper or film in previously existing applications, or where the cost property relationship has permitted an extension of an existing application, such as the redesign of diapers. The principal contributions that spunbondeds have made in these markets generally have been attractive economics, or improved processibility and performance in the final product. This combination has greatly accelerated the use of the products within an application and consequently contributed to the growth of specific markets. General market opportunities for nonwovens have been reviewed.
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Of the four basic polymer types available in spunbonded form, i.e., polypropylene, polyethylene, polyester, and nylon, both polyester and nylon are more costly polymer forms than either of the olefins. It is possible for this cost advantage to be offset by other factors, such as production of the fabric in lighter unit weight, but in general olefin-based products have an economic advantage for an equivalent weight fabric. In addition, the lower density of olefin polymers provides a greater yield of more fibers per unit area that provides better cover and performance. In some applications, however, this advantage is moot if the olefin- based product cannot perform properly. An example of this is in roofing membranes where a key requirement is dimensional stability to hot bitumen at temperatures approaching 2008C, which is above the melting point of both polypropylene and polyethylene but well within the performance limits of polyester. To a great extent this one property, i.e., higher temperature resistance, largely differentiates the opportunities for polyester spunbondeds versus olefin counterparts. Although polyester fibers exhibit higher modulus and more flexible dyeing, these properties seem to be of little advantage in the markets for spun- bonded fabrics.
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Disposable diapers Sanitary napkins & tampons Sterile wraps, caps, gowns, masks and draping used in medical field Household and personal wipes Laundry aids (fabric dryer-sheets) Apparel interlining Carpeting and upholstery fabrics, padding and backing Wall coverings Agricultural coverings and seed strips Automotive headliners and upholstery Filters Envelopes Tags Labels Insulation House wraps Roofing products Civil engineering fabrics/geotextiles
the
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Further however, major uses for bonded fabrics are disposable diapers, dishcloths, vacuum-cleaner bags, interlinings, filter cloths, cheese bandages, etc. In the clothing trade the big use of bonded fabrics is as interlinings. In the shoe trade, too bonded fabrics have made progress as linings and insoles. Bonded fabrics are light in weight and cut edges will not fray, they do not need to be hemmed. Their porosity to air is considered hygienic and has led to one special use for burn dressings, bonded fabric is coated with a very thin film of aluminum to prevent the fibers swelling when wet and backed with wadding to absorb the liquid that always oozes from burns, the aluminized fabric is applied directly for the wound which it protects and allows the liquid to pass through the wadding; the result is that the dressings can be changed painlessly because they do not stitch. Filtration is a good use and a major one for bonded fabrics, this present a large number of fine fibers to the passage of the liquid, not a small number of relatively much coarser yarns; bonded fabrics are used to strain the tea from the tea leaves in the cup-of-tea slot machines that are becoming popular. Some of the laminated bonded fabrics can be pulled apart very easily, i.e. peeled off layer by layer. A needle punching device, which takes some of the fibers through from one side of the fabric to another, helps to avoid this defect and is sometimes used, most bonded fabrics that are made still lash pretty poor, occasionally they are given a lace-like appearance by piercing the web with jets of water before bonding.
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Headquarters: Manak Bhavan, 9 Bahadur Shah Zafar Marg, New Delhi-110 002 Tel: 323 01 31, 323 33 75, 323 94 02 Telegrams:Manaksanstha (Cmmon to all offices) Regional Offices: Central: Manak Bhavan, 9 Bahadur Shah Zafar Marg New Delhi-110 002 Eastern: 1/14 C.I.T. Scheme VII M, V.I.P. Road, Kankurgachi, Kolkata-700 054 Northern: SCO 335-336, Sector 34-A, Chandigarh-160 022 Southern: C.I.T. Campus, IV Cross Road, Chennai-600 113 Western : Manakalaya, E9 MIDC, Marol, Andheri (East), Mumbai-400 093 Telephone 23237617, 23233841
337 84 99, 337 85 61 337 86 26, 337 91 20 60 38 43, 60 20 25 235 02 16 23504 42 235 15 19,235 23 15 832 92 95, 832 78 58 832 78 91, 832 78 92
NOTE :- The use of the ISI Certification Mark is governed by the provisions of the Indian Standards Institution (Certification Marks) Act and the Rules and Regulations made there under. The ISI Mark on products covered by an Indian Standard conveys the assurance that they have been produced to comply with the requirements of that standard under a well-defined system of inspection, testing and quality control which is devised and supervised by ISI and operated by the producer. ISI marked products are also continuously checked by ISI for conformity to that standard as a further safeguard. Details of conditions under which a license for the use of the ISI Certification Mark may be granted to manufacturers or processors, may be obtained from the Indian Standards Institution.
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MARKET SURVEY During the past decade, significant changes have occurred in the worldwide nonwoven market. The predominant regions of the world for the nonwoven production have been restructured. The Asia-Pacific region, including China, shows a potential growth in nonwoven production while the United States and Western Europe continue to develop production technology. The global production of nonwovens reached 4.4 million tons, which is equivalent to $15.9 billion (U.S. dollar). During 2004, 64% of nonwoven materials were produced in North America, Western Europe and Japan. A decade earlier, these regions accounted for slightly higher than 70% of worldwide nonwoven output. The impact on the nonwovens industry is obvious as raw material prices escalate. Major nonwoven producers have faced the challenge, with increasing pressure, to sustain profit margins although raw material prices are not stable. This price volatility continued to impact financial performance of nonwoven companies in 2005. Nevertheless, global nonwoven production is forecast to rise to 6.3 million tons by 2009, or an increase of two million tons from 2004 production levels. In 2011 Asian nonwoven fabric production increased by 7.4% -- and China accounted for the largest share. The most important category of nonwoven fabric was that of spunbonded and melt blown nonwovens. Looking ahead, nonwoven fabric production in Asia is set to continue growing at a healthy pace in the coming years. As per the current policy made by the Indian Government to ban the polythene carry bags, the demand of the non woven made bags are increased tremendously. As the prime raw materials are Non woven fabrics for the bag makers. The personal hygiene market -which includes adult incontinence products, hygiene products, and infant diapers and training pants-will continue to account for the single largest share of nonwovens demand in 2012. These and other trends are presented in World Nonwovens, a new study from The Fredonia Group, Inc, a Cleveland based industry research firm. Market gains in developing parts of Asia/Pacific, Eastern Europe, Africa/Mideast and Latin America will outpace demand in the US, Western Europe and Japan, Product sales in developing areas will be fueled by above average economic growth, ongoing industrialization efforts and rising living standards. China alone will account for 38% of all additional demand through 2012 and will surpass the US to become the targets nonwoven fabric market in the world. Advances are also expected to be healthy in lower-volume markets such as India, Turkey, Russia and Brazil. Sales of roll goods in developed parts of the world will
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PRESENT MANUFACTURERS OF NON WOVEN FABRIC Some of the manufacturers of Non Woven Fabric in India are: Surya TextTech Plot 707, Industrial Area, Phase - I Chandigarh - 160002 UT Ph: +91 172 5073813, 2654531 Mobile: +91 92167 02205, +91 92161 44577, +91 98120 21535 Email: info@suryatextech.com KT Exports (I) Pvt. Ltd. Contact Person : Mr. Nimesh Address : 148, Vyas Bhuvan, Hind Colony Road 6,, Dadar (E) Mumbai - 400 014, Maharashtra (India) Phone No : +(91)-(22)-24185107/24104500 Fax : +(91)-(22)-24160462/24105400 Mobile : +(91)-9820322055/9820322055 E-mail : nimesh@kt-exports.com, dhilan@kt-exports.com Parishudh Fibres Mr. Rajeev Solanki E1 - 365, RIICO Industrial Area Sitapura, Jaipur - 302022 Phone : +91-141-3294862/2771171 Fax : +91-141-2770284 Email Address : rajeevsolanki@satyamnonwovens.com Alternate Email ID : pfpljp@gmail.com Mobile : +91-9829057574,9314517645 Web Site : http://www.parishudhfibres.in M/s Shri Ram Filaments Contact Person: Mr. Raman Aggarwal & Gaurav Aggarwal Address : Plot No. 65-66, Sector= 21, Industrial Area. Bhiwani Haryana: 127021 Phone : +91-93156-07101 Email Address : ramanaggarwal1@yahoo.co.in Web Site : http://www.aggarwalinternationalgroup.com ADITYA NONWOVENS PVT LTD 6/7, MAHAL INDUSTRIAL ESTATE, UNIT NO. 19, 1ST FLOOR, MAHAKALI CAVES ROAD, ANDHERI (EAST), MUMBAI-400093, MAHARASHTRA Phone: 912228325849/28260578/26870256 Email: aditya_nw@yahoo.co.in
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MR. MANOJ KUMAR GANGWAR BHASKAR INTERNATIONAL 502-A, JAINA TOWER-II, DISTT. CENTER, JANAKPURI, NEW DELHI-110058 Phone: 911141579016/65671666/25618297 Email: bhaskarinternational@rediffmail.com Kalson Fabric Pvt. Ltd. Address: Plot No. G- 1115, Road No. G, Kishan Gate, Lodhika GIDC, Metoda, Rajkot - 360021, Gujarat, India Phone: +(91)-(2827)-287987 Rahil Air bubbles Private Limited, Address: Survay No. 34, Plot No. 2- B, N. H. 8- B, Shapar, Rajkot - 360 002, Gujarat, India Preferred Number: 08447551140 Enox Non Woven Private Limited Address: Plot No. G-2106, Metoda Gidc, Ta- Lodhika, District Rajkot, Rajkot - 360 021, Gujarat, India Sugam Polytech Pvt. Ltd. Address: Plot No.106, G. I. D. C. Industrial Area, Bamanbore, Old NH-8B, Tal-Chotila, District Surendranagar, Rajkot - 363520, Gujarat, India Phone: +(91)-(2751)-240365 Oscar Polymers Address: Shardanagar, Plot No. 6/2, Street No. 2, Behind Masoom School, University Road, Rajkot - 360005, Gujarat, India Oracle World Wide Address: No. 303, Veer Bhavan, Ghiya Sheri, Mahidharpura, Surat - 395003, Gujarat, India Phone: +(91)-(261)-6539691 Preferred Number: 08373904602 RCM Techno Textile Private Limited Address: 11/6, Hojiwala Industrial Estate , Palsana Highway Sachin,, Surat - 395 003, Gujarat, India Phone: +(91)-(261)-2899260
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BONDED FABRICS
A non-woven fabric is composed of two parts, the web of fibers and the bond. Preparation of the web requires great care; bonding is relatively easy. One pound (weight) of fibers will make perhaps five or six yards of an average dress fabric, and it contains about a hundred million fibers. The problem in making bonded fabric is first to separate or open these fibers and then to lay them flat and (sometimes) in random direction. Two kinds of web, ie flat arrangement of fibers are used, a) b) Oriented Random.
Oriented Webs (Parallel laid) These are produced by conventional textile methods, opening, picking and carding. Opening consists of the mechanical release of the fibers if baled, as are most natural fibers and most staple rayon the opened fibers may occupy fifteen times the volume that they did in the ball. The hicker completes the opening or separation of the fibers, and arranges the fibers in lap form in which they can conveniently be fed to the carding medimic. The card separates the fibers that are still in bundles or tufts down to individuals, and converts the fairly heavy lap into a lighter web; it is the virtue of the card from the standpoint of the cotton and worsted spinner that it arranges all the fibers parallel or orients them. The fundamental defect of oriented webs is that they are weak across the width, the fibers all running parallel with the length of the web are easily pulled apart sideways. Sometimes, oriented webs are used in that condition as they will satisfactorily fulfill certain requirements, after times they are cross-laid. Cross-laid Webs (Random) One web is laid on another, ideally at right angles, giving if this process is continued for a few layers a laminated structure which after having been bonded has equal strength transversely and length ways. In practice the alternate layers are not laid quite at right angles although they are angled. One of the basic advantages of bonded fiber fabrics is that they can be made at high speeds, at yards per minute, at speeds associated with paper-making rather
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RAW MATERIALS Man-made fibers completely dominate nonwovens production, accounting for over 90% of total output. Man-made fibers fall into three classes, those made from natural polymers, those made from synthetic polymers and those made from inorganic materials. According to a study by Tecnon Ltd, the world usage of fibers in nonwovens production is: Polypropylene 63% Polyester 23% Viscose rayon 8% Acrylic 2% Polyamide 1.5% Other fibers 3%
Over the years, the share of viscose rayon has increased due to its increased importance in the spunlace wipes market. However, recently, due to tremendous increase in price of viscose of fiber and its inability to be easily spun-laid or thermally bonded, there is a decrease in the consumption of viscose fibers. The solvent spun cellulosic fiber, Lyocell is becoming increasingly important in the nonwovens industry partly as a result of its absorbency and high wet strength. Polypropylene fibers are predominant in the nonwovens industry. Some of the reasons for this include: Low density and specific gravity enabling lightweight fabrics to be produced. Low glass transition and melting temperature, which is attractive for thermal bonding. Inherent hydrophobicity that can be modified using fiber finishes and other treatments. Provides fabrics with good bulk and cover. Chemical stability. Biological degradation resistance (mildew, perspiration). Stain and soil release. Good mechanical strength and abrasion resistance. Polypropylene is available in a variety of grades and its surface chemistry, absorbency, mechanical properties, degradation, softness, flame retardancy and colouration are modified by auxiliary chemicals and other treatments by the fiber suppliers. Fibers having different cross-sectional configurations are also available, which affect the physical properties of resulting fabrics. The unique combination of properties offers the manufacturers of nonwovens a valuable high-performance nonwoven fiber for a competitive price. The main raw materials required for the manufacture of nonwoven fabrics is Polypropylene Chips (melt index: 20-40g/10 min 166oC ash content: < 0.15 - 0.25 %>. Along with PP, Calcium carbonate, recycled Polypropylene and some additives also added
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Figure 1 : Polypropylene Highlights from 01-15, Jan 2013 The price of Polypropylene does not fluctuate as much as PVC and other plastic polymers. The main reason behind such somewhat stable price is no additional duty on import of PP and more than one manufacturer of PP chips in India, like Relience, IOCL, IPCL, etc. It is also expected to stay stable or even decrease in future once the new plant of ONGC start at Dahej, Gujarat also, Relience is constantly increasing its production capacity. The current capacity of Relience alone is 44MMT per annum. Indian PP manufacturing capacity, is growing at a rate of 3.1% per annum and the world at 7.5%, which also the reason behind such price trend. The availability of recycled PP is in abundant and there price mainly depend on the trend of virgin PP Chips. Also, the effect of recycled PP price does not make much difference as its used in very limited quantity. The excess use of such recycled material can reduce the quality of PP nonwoven fabric.
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PROPERTIES & CHARACTERISTICS OF NON WOVEN FABRIC Following are just a few of the properties that can be attained using nonwoven fabrics: Absorbency Bacterial barrier Cushioning Filtering Flame retardancy Liquid repellency Resilience Softness Sterility Strength Stretch Washability Some of the property that are considered most important by endusers are: Strength: Strength of Non-woven is closely related to its formulation. i.e. additives and percentage of Calcium carbonate. Adhesion to Fiber: Even though the mechanism of adhesion is not completely understood. The adhesion strength of fiber to fiber bond has to be considered. Flexibility: Flexibility of PP nonwoven is desired and that what separate it from other plastic sheet and products. Elastic Recovery: To avoid the permanent deformation of fabric, good elastic recovery is required under strength. Colour and Colour retention: Diverse range colour is required. Thus colorfastness and yellowness problem should be avoided. Though, all above desirable properties of PP Nonwoven fabric is easily achievable. Some special characteristics is only achieved by the use of special binding agents or additives
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There are number of technology to manufacturer Nonwoven Fabrics. Some of the most commonly used technology have been explained here. Melt-blown Technology Melt-blowing is a process in which, usually, a thermoplastic fiber forming polymer is extruded through a linear die containing several hundred small orifices. Convergent streams of hot air (exiting from the top and bottom sides of the die nosepiece) rapidly attenuate the extruded polymer streams to form extremely fine diameter fibers (1 - 5 mm). The attenuated fibers are subsequently blown by high-velocity air onto a collector conveyor, thus forming a fine fibred self-bonded nonwoven melt-blown web. The fibers in the melt-blown web are held together by a combination of entanglement and cohesive sticking. Because the fibers are drawn to their final diameters while still in the semimolten state, there is no downstream method of drawing the fibers before they are deposited onto the collector, and hence the webs exhibit low to moderate strength. Examples of melt-blown products are oil spill sorbents, wipes, surgical gowns, surgical face masks, liquid and air filtration fabrics, lithium battery separators, clothing insulation, and feminine hygiene products. Some of the main characteristics and properties of melt-blown webs are: Random fiber orientation. Low to moderate web strength. Generally, the web is highly opaque (high cover factor). Melt-blown webs derive their strength from mechanical entanglement and frictional forces. Most melt-blown webs are layered or shingled structure, the number of layers increases with increasing basis weight. Microfibres provide high surface areas for good insulator and filter characteristics. The fibers have a smooth surface texture and appear to be circular in cross-section. The fibers vary in diameter along a single fiber. Spunbond-Meltblown-Spunbond (SMS) Technology Spunbond and meltblown webs are often combined at the production stage to achieve a variety of composite structures for protective applications particularly in the hygiene and medical sectors. The benefits of combining spunbond and meltblown webs are: Barrier to liquid permeation especially of bodily fluids in medical gowns. Increase in the cover of the base spunbond web. Barrier to penetration of particulate matter in filter applications.
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Kerala Government: ENTREPRENEUR SUPPORT SCHEME (ESS) Eligibility for applicants All Micro, Small and Medium Enterprises engaged in manufacturing activities and setup in the State, which had filed Entrepreneurs Memorandum Part 1/II with the respective General Manager, District Industries Centre shall be eligible for this assistance. The applicant as to Apply in the prescribed Performa, Provide necessary documentation and accounts and Execute an agreement with the notified authority to avail the assistance.
For the purpose of this scheme an industrial unit eligible for the Entrepreneur Support Assistance shall be an independent legal entity. Entitlement in the scheme shall be limited to an amount of Rs. 30.00 (Thirty) lakhs per applicant unit to be availed only once. The upper limit of Rs. 30.00 (Thirty) lakhs shall be enhanced by 5% per annum during the period of operation of the scheme to address the escalation of costs. Subject to this maximum limit the assistance shall be limited to the fixed percentage of the composite investment upon (a) (b) (c) (d) (e) (e) (f) land, land development costs, building and improvement charges on existing building, essential office infrastructure, fixed cost of plant and machinery, electrification, generators and associated equipment e.g. invertors
All testing and pollution control equipments shall also be eligible for computing the composite investment cost. Working capital and recurring costs shall not be eligible. An assistance of 15% limited to Rs. 20.00 (Twenty) lakhs will be payable on the fixed capital investment of all micro, small and medium enterprises set up in the State. Also, some of the states in India prohibiting the use of plastic bags, have also supported the growth of this industry. Based on all the incentive the completion in the PP nonwoven fabric manufacturing will increase along with its demand.
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PRODUCTION AREA
SECURITY CABINE
Total Land Area Reqd = 4000 Sq.Mtrs Raw Material Storage = 200 Sq. Mtrs Production Area = 1500 sq Mtrs Finish Goods Storage = 200 Sq. Mtrs Admin Building = 100 Sq. Mtrs
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Storage Layout: Storage facilities for raw materials and intermediate and finished products may be located in isolated areas or in adjoining areas. Hazardous materials become a decided menace to life and property when stored in large quantities and should consequently be isolated. Storage in adjoining areas to reduce materials handling may introduce an obstacle toward future expansion of the plant. Arranging storage of materials so as to facilitate or simplify handling is also a point to be considered to design. Where it is possible to pump a single material to an elevation so that subsequent handling can be accomplished by gravity into intermediate reaction and storage units, costs may be reduced. Liquids can be stored in small containers, barrels, horizontal or vertical tanks and vats, either indoors or out of doors. Equipment Layout: In making a layout, ample space should assigned to each piece of equipment; accessibility is important factor for maintenance. be an
It is extremely poor economy to fit the equipment layout too closely into a building. A slightly larger building appears necessary will cost little more than one that is / that crowded. The extra cost will indeed be small in comparison with the penalties that will be extracted if, in order to iron out the kines, the building must be expanded. The operations that constitute a process are essentially a series of unit operations that may be carried on simultaneously. These include filtration, evaporation, crystallization, separation, and drying. Since these operations are repeated several times in the flow of materials, it should be possible to arrange the necessary equipment into groups of the same kinds. This sort of layout will make possible a division of operation labor so that one or two operators can be detailed to tend all equipment of a like nature. The relative levels of the several pieces of equipment and their accessories determine their placement. Although gravity flow is usually preferable, it is not altogether necessary because liquids can be transported by blowing or by pumping, and solids can be moved by mechanical means. Gravity flow may be said to cost nothing to operate, whereas the various mechanical means of transportation involve the first cost of the necessary equipment and the cost of operation and maintenance. But material must be elevated to a level where gravity flow must
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Access for initial construction and maintenance is a necessary part of planning. For example, overhead equipment must have space for lowering into place, and heat-exchange equipment should be located near access areas where trucks or hoist can be placed for pulling and replacing tube bundles. Thus, space should be provided for repair and replacement equipment, such as cranes and forked trucks, as well as access way around doors and underground hatches. Safety: A great deal of planning is governed by local and national safety and fire code requirements. Fire protection consisting of reservoirs, mains, hydrant, hose houses, fire pumps, reservoirs, sprinklers in building, explosion barriers and directional routing of explosion forces to clear areas, and dikes for combustible-product storage tanks must be incorporated to protect costly plant investment and reduce insurance rates.
Plant Expansion: Expansion must always be kept in mind. The question of multiplying the number of units or increasing the size of the prevailing unit merits must be studied. Suffice it to say that one must exercise engineering judgment; that as a penalty for bad judgment, scrapping of present serviceable equipment constitutes but one phase, for shutdown due to remodeling may involve a greater loss of money than that due to rejected equipment. Nevertheless, the cost of change must sometimes be borne, for the economies of larger units may, in the end, make replacement imperative. Floor Space: Floor space may or may not be a major factor in the design of a particular plant. The value of land may be a considerable item. The engineers however, follow the rule of practicing economy of floor space, consistent with good housekeeping in the plant land with proper consideration given to line flow of materials, access to equipment, space to permit working on parts of equipment that need frequent servicing, and safety and comfort of the operators.
Utilities Servicing: The distribution of gas, air, water, steam, power, and electricity is not always a major item, in as much as the flexibility of distribution of these services permits designing to meet almost any condition. But a little regard for the proper placement of each of these services, practicing good design, aids in of operation, orderliness, and reduction in costs of maintenance. No pipes should be laid on the floor or between the floor and the 7-ft. level, where the
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service both
traffic,
Heavier and wider roads for large-scale traffic Routing of heavy traffic outside the operational areas Roadways for access to initial construction, maintenance, and repair points Roadways to isolated points, storage tanks, and safety equipment, such as fire hydrants.
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Markets: a. b. c. d. Demand versus distance Growth or decline Inventory storage requirements Competition - present and future.
3.
Power and fuel supply: a. b. c. Availability of electricity and various type of fuel Future reserves Costs
4.
Water supply: a. b. c. d. Quality - temperature, mineral content, bacteriological content Quantity Dependability - may involve reservoir construction Costs
5.
Climate:
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Specific Factors 6. Transportation: a. Availability of various services and projected rates 1. Rail - dependable for over all distances 2. Highways - regularly used for short distance generally small quantities 3. 4. Water - cheaper, but may be slow and irregular Pipeline - for gases and liquids, particularly for petroleum products 5. Air - for business transportation of personnel and light and heavy shipping
7.
8.
Labor: 1. 2. 3. Availability of skills Labor relations - history and stability in area Stability of labor rates
9.
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Taxes: a. State and local taxes 1. 2. 3. 4. 5. b. Income Unemployment insurance Franchise Use Property to attract
11.
Site characteristics: a. b. c. d. e. f. Contour of site Soil structure Access to rail, highway, and water Room for expansion Cost of site Site and facilities available for expansion on company-owned property present
12.
Community factors: a. b. C. d. e. f. Rural or Urban Housing costs Cultural aspects - churches, libraries, theatres School system Recreation facilities Medical facilities - hospitals, doctors
13.
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a. b. 14.
Flood and fire control: a. b. Fire hazards in surrounding area Floor history and control
Based on all the above criteria, the most ideal and suitable location is Silvasa, the reason behind selecting this location is following: Its located in Gujarat, thus can have the benefits of interest incentives offered by Government of Gujarat. There are various tax benefits offered by state government to develop the region. Its right on the border of Maharashtra thus easy to tap the Maharashtra market and other state of South India. Considering Surat to be center of fabric industry in India, Silvasa is located near to Surat, thus can have benefit of such strategic location. Maharashtra government is also planning to build a new textile park at Ichalkaranji off Kolhapur in the states western region. This can also be the next suitable location.
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1.
DEPRECIATION:
This represents reduction in the utility and value of a capital asset because of wear and tear, lapse of time, obsolescence etc. The use of an asset helps in the generation of revenue for the business. A part of the cost of the asset, estimated to be equal to the reduction in the utility and economic life of the asset, because of its use, is charged off by way of depreciation charge against such revenue to arrive at the true profits.
2.
FIXED ASSETS:
Represent those assets which remain permanently (till their useful lives) with the business and are not meant for resale. These assets are acquired for use in the operation of business and help in the generation of revenue for the business. These include land and building, plant and machinery etc.
3.
WORKING CAPITAL:
This represents the total expenses on Raw materials, utilities & overheads, and salaries & wages, for a specified period of time.
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4.
BREAK-EVEN POINT:
This represents the level of output and sales at which the firm is able to recover all its expenses-both fixed and variable. In other words it indicates the level of output and sales at which the firm is neither making profit nor incurring any loss. Level of output more than the Break-Even Level generates profit for the firm.
5.
These represent expenses which remain fixed irrespective of changes in level of output. In other words these are the expenses which the firm has to incur whether there is production or not. These include expenses such as preliminary and Preoperative expenses, Insurance and Freight, Technical Know-how and Consultancy, Erection & Commissioning etc. building, insurance, etc.
6.
MARGIN MONEY:
This represents that part of the cost of project which the promoter has to meet from his own resources. This is the contribution which the promoter must make to the equity of the project for becoming eligible for assistance from financial institutions/Banks.
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7.
TERM LOANS:
Represent Loans which are repayable over a long period time. These loans are meant for meeting capital expenditure the project. 8. TOTAL LOAD:
of of
It is the ratio of the maximum power consumed in KWH in a particular period of time to the number of operating hours of the unit in that particular period.
Power Consumed in KWH Total Load = (--------------------------) in a particular No. of operating hours of period of time the unit
9.
LAND AREA/MAN POWER RATIO: It is the ratio of manpower utilized per unit area of land
required for operating the unit. + | Land Area/Man Power Ratio = | | | + + Land Area | ---------------| No. of persons | Working on the unit| +
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POLYPROPYLENE CHIPS Most of the PP chips are only manufactured by big companies. Some of such manufacturers are: Relience IPCL ONGC (plant under construction) Haldia IOCL
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Preferred and most trusted Supplier with better product quality and machinery are: C L Enterprise (International) Rajoo Engineers Limited (Domestic)
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PLANT ECONOMICS Assumptions: 3.2 Meters Single Beam Machinery has been considered because the return on investment in such machinery is the highest. 1.6mts machinerys ROI is much less while 3.2 mts double beam in not advisable as it require high capital investment compare to single beam. All the calculation does not take into account the real market competition. i.e. whatever is manufactured is being sold. The sale price of finish goods is an average of different colour and GSM fabric The Raw material price is based on current average market price. No. of Working Days = 25 days / month = 300 days/ annum No. of Shifts = 2 per days ( 12 hrs Shift) Currency = INR Government Incentives and Benefits are not considered during calculation. IT JUST FOR YOUR REFERENC (CAN BE DIFFERENT FROM REAL/PRACTICAL SCINARIO)
= 3.2 Meters Single Beam = 800Kg / hours EFFICIENCY = 80% USD = 55 INR
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Land & Building Land (4000 Sq. Mts) @ INR 3000 per Sq. Mts Production Shed (1500 Sq. Mts) @ INR 1500 per Sq. Mts Raw Material Store (200 Sq. Mts) @ INR 1500 per Sq. Mts Finish Goods Store (200 Sq. Mts) @ INR 1500 per Sq. Mts Admin Building (100 Sq. Mts) @ INR 2000 per Sq. Mts Misc. Boundry Wall, Leveling, etc Total
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Machineries Rate 3.2 mts single beam Import Duties Domestic Machinery (Transformers, Compressors, etc) Sea Fright 3 containers Local Transportation Total USD 560,000 30% 168,000 6,000 INR 30,800,000 9,240,000 2,000,000 330,000 120,000 42,490,000
1500 30,000
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Other Expenses Office Equipements and Furnitures Pre-operative & preliminary expenses Consultancy, Architectures, Contracters etc Erection, Installation and Electrification Computers, Laptops, etc Total 500,000 200,000 300,000 2,500,000 100,000 3,600,000
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Fix Capital Land and Building Machinery Other Expenses Total 17,050,000 42,490,000 3,600,000 63,140,000
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Production Capacity Prod. Cap/Hr (KG) Prod. Cap/Month (KG) Prod. Cap/Year (KG) Working Hr/Day 800 480000 6000000 24
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Labor Un-Skilled Skilled Operator Accountant Clerk and other office Staff Marketing and Admin Staff Total
Salary & Wages Wage/D Wage/M Total 14 200 5,000 70,000 2 250 6,250 12,500 2 300 15,000 30,000 1 400 10,000 10,000 2 300 7,500 15,000 2 600 15,000 30,000 58,750 167,500
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Utility and Overheads Electricity (290 KW hrs) @ INR 7 per KW hrs Repair and Maintanance Admin. Expenses Vehicals and Tranportation Marketing Expenses Total
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Working Capital Raw Material Salary and Wages Utility and Overheads Total 38,640,000 167,500 1,388,000 40,195,500
WORKING CAPITAL FOR 1 MONTHS = INR 40,195,500 MARGIN MONEY FOR W/C LOAN = INR 10,048,875
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Project Cost Fix Capital Working Capital Margin Money Total 63,140,000 10,048,875 73,188,875
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Total Capital Investment Fix Capital Working Capital (1 Month) Total 63,140,000 40,195,500 103,335,500
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Cost of Production (Annual) Working Capital Interest on Total Capital Investment (@13%) Depreciation @ 10.00% on buildings Depreciation @ 20.00% on Plant and Machinery Depreciation @ 20.00% on office equipment & furniture Total 120,586,500 9,514,554 505,000 6,560,000 100,000 137,266,054
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Sale Price Basic Gross Sales Price VAT Sales price w/o VAT Excise Sales price w/o VAT & Exc 5% 10.30% Per Kg 127.3965 6.0665 121.33 11.33 110
528,000,000
Profit / Sales
100
RATE OF RETURN
= =
100
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Fix Cost of Plant Interest Depreciation 40% of Salary 40% of Overhead Total 13,433,615 7,165,000 804,000 6,662,400 28,065,015
B.E.P.
FIXED COSTS ------------------------------ X 100 FIXED COSTS + PROFIT 28,065,015.00 ------------------------------ X 100 28,065,015.00 + 25,055,385.00
52.83 %
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1. Term loans from Financial institutions ( 65.00 % of fixed capital ) at @13.50% p.a rate of interest 2. Bank loans for 3 months ( 65.00 % of working capital ) at @ 13.50% p.a rate of interest 3. Self raised capital from even funds & loans from close ones to meet the margin money needs at a @ 13.50% p.a rate of interest
Rs.
41,041,000.00
Rs.
26,127,075.00
Rs.
36,167,425.00
TOTAL
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