LYCRA AIR COVERED YARN

PRODUCT CODE

: NA

QUALITY AND STANDARDS

: As per Customer requirement

PRODUCTION CAPACITY
Value

: 60 Tonnes (per annum)

: Rs. 1,53,00,000/-

MONTH AND YEAR

OF PREPARATION

: May, 2014

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.

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3. BASIS AND PRESUMPTIONS

i.

250 sq. mt. covered area is required on rental basis @ Rs. 30 per sq. mt.
depends upon area to area.

ii.

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.

iii.

To achieve full production 1 to 2 months trial production required.

iv.

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 taken @ 15 %

vii.

Depreciation has been considered as

a) On plant and machinery @ 10%
b) On office furniture and fixtures @ 20%
c) On other fixed assets @ 20%.

4. IMPLEMENTATION SCHEDULE
Sr.
No.
1

Activity
Site selection preparation of project report and other
formalities, application for loan and finance/ disbursement
and DIC registration etc.
Seeking quotation for machines, purchase and installation,
obtaining clearances from Pollution Control Board and other
Govt. bodies and agencies.
Procurement of raw material, recruitment of staff and labour
and commercial production

Period
( in Weeks)
2

5. 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.

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Lycra Air Covered Yarn

5.2. Quality Control and Standards

No specific standard available, quality should be ensured as per specific
customer demand.

5.3. Production Capacity

This scheme envisages manufacturing of 60T of Poly Spandex at 90% capacity.

5.4. Motive Power

9 HP for the Jet/Spindles & 30 HP is required for Air compressor/Dryer etc.

5.5. 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
6.1.1. Machinery and Equipments
Sr.
No.
1
2
3
4

Description
Air covering Machine with 24 Spindle
Air Compressor 30 HP, dryer, tank, etc.
Weighing Scale , Capacity 100 Kg
Testing Equipment

Qty
Required
1
1
1
L.S.

Price
Total Price
(Rs.)
(Rs.)
11,40,000
11,40,000
5,00,000
5,00,000
10,000
10,000
15,000
Total
16,65,000

Electrification and installation

Office equipments and Furniture (LS)
Cost of auxiliary Items like Trolley, Box Strapping, etc.

Rs. 1,00,000
Rs. 50,000
Rs. 50,000

Total Fixed Capital Requirement

Rs. 18,65,000/-

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6.2. Working Capital (per month)

6.2.1. Building
Covered area for Production, office, store, etc. on rent of Rs. 20,000 per month.

6.2.2. Personnel
Description
Supervisor
Skilled worker
Watchman / Peon

Nos.
1
3
1

Salary (Rs.)
12,000
10,000
7,000
Total

Qty Required
4,500
450
15
210
10

Price
120
678
190
40
180
Total

Total (Rs.)
12,000
30,000
7,000
49,000

6.2.3. Raw Material

Description
Polyester yarn 80 D
Spandex yarn 20 D
Polybag for packing
Corrugated Box for packing
Oil & Lubrication

Total Value (Rs.)

5,40,000
3,05,100
2,850
8,400
1,800
8,58,150

6.2.4. Utilities
Utilities
Power (Based on 32 KW
required Per Hour @ 8.5/)

Total Units

Rate

Total (Rs.)

19,200

8.5

1,63,200

Other Contingency expenses

(Like Postages, Travel, Advertisement,
Repair, Telephone etc)

Rs. 30,000

6.2.5. Total Recurring Expenditure (per month)

1. Building Rent
2. Salaries
3. Raw materials
4. Utilities
5. Other contingent expenses
Total

Rs. 20,000
Rs. 49,000
Rs. 8,58,150
Rs. 1,63,200
Rs. 30,000
Rs. 11,20,350

7. FINANCIAL ANALYSIS
7.1. Cost of Production (per annum)
1. Total recurring cost
2. Depreciation on machinery and equipments @ 10%
3. Depreciation on tools and fixtures @ 20%
4. Depreciation on furniture and office equipments @ 20%
5. Interest @ 15% on total capital (29,85,350)
Total

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Rs. 1,34,44,200
Rs. 1,66,500
Rs. 10,000
Rs. 10,000
Rs. 4,47,802
Rs. 1,40,78,502

Lycra Air Covered Yarn

7.2. Turnover (per annum)

Turn Over

= Total Production X Selling Rate per Kg

= 60 T @ Rs. 255
= Rs. 1,53,00,000/-

7.3. Net Profit (per annum)

=
=
=

Turnover cost of production

Rs. 1,53,00,000 1,40,78,502
Rs. 12,21,498/-

7.4. Net Profit Ratio

=

Net profit per year

X 100
Turnover per year

12,21,498
X 100
1,53,00,000

= 8.0 %

7.5. Rate of Return

=

Net profit per year

X 100
Total Capital Investment

12,21,498
X 100
29,85,350

= 40.9 %

7.6. Break-even Point

Fixed Cost (Per Annum in Rs.)
Rent
Total Depreciation
Total Interest
40% of salary and wages
40% of other Contingent expenses
Total

2,40,000
1,86,500
4,47,802
2,35,200
1,44,000
12,53,502

B.E.P
=

Fixed Cost
X 100
Fixed Cost + Net Profit

12,53,502
X 100
12,53,502 + 12,21,498

= 50.6 %

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Tailoring Division
Addresses of Machinery Manufacturers and Suppliers
1. Aalidhra Textile Engineers Ltd.
307, Monarch Chamber
Marol- Maroshi Road, Andheri East,
Mumbai-400059
Email:sales@aalidhra.com
Website:www.aalidhra.com
2. Sapru Machine Pvt. Ltd.
Road No.11,Udhana, Surat (Gujarat)
Email:info@saprumachine.com
Website:www.saprumachine.com
Addresses of Raw Material Suppliers
1. Reliance Industries Limited
Makers Chambers - IV,
Point, Mumbai - 400 021
Tel: 91-22-2278 5000
2. Raj Rayon Industries Ltd.
5 C, 196 / 197, Akshay Mittal Industrial Estate
Sakinaka, Mumbai - 400059
Tel: +91-22-40343404
Website: www.rajrayon.com
3. Indorama Industries Limited
Tower-F. 3rd Floor; DLF IT Park
Chandigarh- 160 101
Tel: +91 172 661 9400
Email: info@indorama.in
4. Welspun House, 7th Floor,
Kamala Mills Compound,
Senapati Bapat Marg,
Lower Parel, Mumbai 400 013
Email: welspun@bom2.vsnl.net.in

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