Introduction

Bleaching of textile grey fabrics is generally carried out to impart whiteness to textile fabrics by removing natural colouring matter. The process of dyeing is carried out to improve the marketability of textile products and also to suit the customer needs by adding colour. These two processes are generally carried out in open tank, kier machines, jet dyeing machines, jiggers, soft flow dyeing machines etc. For hosiery goods, it is carried out with winch machines, since it imparts very less tension during operation. Viable processing units can be set up as most of the fabric manufacturing units do not have their own processing units. In this report, details are provided for setting up the unit for bleaching and dyeing of cotton knitted fabrics.

Market Potential

The demand for hosiery garments is increasing due to its popularity in domestic and export market. There are number of units engaged in manufacturing of knitted cloth and most of these units are not having their own captive processing units. Bleaching and dyeing of knitted fabric produced by these units are normally carried out from outside on paying requisite processing charges. It is, therefore, presumed that setting up of textile processing units is economically viable.

Basis and Presumptions

This project is based on single shift basis with 300 working days in a year. Time period for achieving maximum capacity utilisation is considered from 3rd year from the date on which production is started. Rental value of the building is taken at Rs. 2 per sq. ft. Costs of machinery and equipments/materials indicated refer to a particular make and approximately to those prevailing at the time of preparation of this project.

Cost of installation and electrification is taken @ 10% of cost of machinery and equipment. Non-refundable deposits, project report cost, trial production, security deposit with Electricity Board are classified under pre-operative expenses.

Depreciation has been considered at 10% on plant and machinery, 15% on office furniture, fixtures, vehicle and 20% on testing equipments. Interest rate on capital loan has been taken @ 12% per annum.

Implementation Schedule

The implementation period required for executing this project right from selection of site to starting the trial run production will be 6 months.

Technical Aspects
Process of Manufacture

The knitted fabric to be bleached is thoroughly wet in a soap solution of 2% and piled in kier boiling pan containing 1.5% caustic soda, 2% soda ash and 1% lisapol etc. and allowed to boil for 6-8 hours. The cloth is washed well and taken to SS winches for bleaching using 2% bleaching powder and then washed thoroughly. This bleached cloth is scoured using hydrochloric acid of 1.5% concentration. After sometime, cloth is washed thoroughly to neutralise the traces of acid. In case of only bleaching the cloth is treated with optical whitening agent, thereafter, it is hydro-extracted, dried and calendered as final operations.

In case of dyeing, about 15-20% salts, 2% brightol C paste, 2-4% dyes as per shade are mixed and fabric is treated with the solution in winches. The cloth is allowed to run for several times in order to maintain uniform shade, thereafter, washed, hydro-extracted, dried and calendered.

Production Capacity (per annum)

	Quantity (Kg.)	Value (Rs.)
1. Bleaching Charges	4,50,000	1,15,86,000
2. Dyeing Charges	4,50,000	1,48,05,000
Total	9,00,000	2,63,91,000

Motive Power

50 HP is required to run the unit and proposed to be obtained from State Electricity Board.

Pollution Control

As this process involves treatment of chemicals, entrepreneurs are required to obtain NOC from State Pollution Control Board.

Energy Conservation

Energy can be conserved by proper house-keeping i.e. unnecessary running of boilers, heaters and fans are to be monitored in order to reduce the excess energy consumption.

Technical Aspects
A. Fixed Capital

(i) Land and Building
(i) Land 4000 Mtrs. @ Rs. 3000 per Sq. Mtr	Rs.1,20,00,000
Boundary wall and gates	Rs. 5,00,000
Factory shed 400 Sq. Mtr, @ Rs. 6000 / Sq. Mtr	Rs. 24,00,000
Raw Material & finished goods storage 500 Sq. Mtr@ Rs. 6000 / Sq. mtr.	Rs. 30,00,000
Office Building 300 Sq. Mtr @ 750 / Sq. Mtr	Rs. 22,50,000
Workers sitting hall 500 Sq.Mtr @ Rs.6000/Mtr	Rs. 30,00,000
	Rs.1,18.00,000
Utility plants area e.g., bore well, raw water storage, boiler, generator and effluent treatment plant 200 Sq. Mtr @ Rs. 6000/Sq. Mtr	Rs. 12,00,000
Total	Rs 2,43,00,000

(ii) Machinery and Equipments

Sl. No.	Description	No.	Rate (Rs.)	Amount (Rs.)
1.	SS Winch m/c of 6-4× 8×6 200kg.	1	4,00,000	4,00,000
2.	SS Winch m/c 6-4'× 6×6 size 150kg.	3	2,00,000	6,00,000
3.	MS Kier wall thick 1/4' bottom 8'	2	1,50,000	3,00,000
4.	Steam callendering m/c roller sizes 51/21	1	3,00,000	3,00,000
5.	Hydro-extractor 40-45 kg capacity	2	2,50,000	5,00,000
6.	4 cylinder drier with motor and gear box	1	7,00,000	7,00,000
7.	S.S. Conveyors with ball bearing	4	50,000	2,00,000
8.	Baby boiler with storage tank chimney, water softening plant	1	8,00,000	8,00,000
9.	Water softening plant (cap. 6kl/hr), with storage tank pumps and S.S. piping	1	7,00,000	7,00,000
10.	Effuent treatment plant	1	5,00,000	500,000
11.	Steam pipeline and other accessories	LS	3,00,000	300,000
12.	Deep tube well with submersible pump with storage tank, pumping and distribution system	1	5,00,00	5,00,000
13.	Mini transport vehicle (3 Wheelers)	1	3,00,000	3,00,000
14.	Fire extinguisher 5 kg capacity	2	20,000	40,000
15.	Testing equipments	LS		2,00,000
16.	Computer colour matching equipment (optional)	1	25,00,000	25,00,000
Total				88,40,000

(iii) Other Fixed Assets	(Rs.)
(a) Erection and installation	8,84,000
(b) Office furniture	5,00,000
(c) Pre-operative expenses	3,00,000
Total	16,84,000
Total Fixed Capital (i) + (ii) + (iii)	3,48,24,000

B. Working Capital
(i) Staff and Labour Wages

Sl. No.	Designation	Nos.	Rate (Rs.)	Amount (Rs.)
1.	G. Manager	1	30000	30,000
2.	Finance and Accountant	2		15,000
3.	Computer Operator	1	20,000	20,000
4.	Sales, marketing, administrative and	6		50,000
5.	Peon	2	3500	7,000
6.	Watchman	4	3500	14,000
Total (i)				1,26,000
(ii) Production Staff
7.	Dyeing Master 01 no. and shift supervisors 03 nos.			36,000
8.	Skilled Workers	12	5,000	60,000
9.	Semi-skilled Workers	15	3,000	45,000
10.	Lab. Chemists and Attendant	6		30,000
11.	Boiler Attendant	4	4000	16,000
12.	Electrician	3	4000	12,000
Total				1,99,000
Total (i) + (ii)				3,25,000
Perquisites@ 22%				72,000
G. Total				3,97,000

(iii) Raw Material (per month)

Sl. No.	Description	Unit	Qty.	Rate/ unit (Rs.)	Amount (Rs.)
1.	Caustic Soda	Kgs.	1500	35	53,000
2.	Soda ash	Kgs.	5500	20	1,10,000
3.	Sodium silicate	Kgs.	2500	10	25,000
4.	Lisopal	Kgs.	750	150	1,13,000
5.	Bleaching Powder	Kgs.	3,000	20	60,000
6.	Hydrochloric acid	Kgs.	8,000	8	64,000
7.	Glabour's salt	Kgs.	800	10	8,000
8.	Common salt	Kgs.	1000	3	3,000
9.	Optical whitening agent	Lit.	225	140	32,000
10.	Hydrogen peroxide	Lit.	1200	20	24,000
11.	Sulphuric acid	Lit.	2500	10	25,000
12.	Acetic acid	Lit.	750	75	56,000
13.	Dye fixing agent	Kgs.	750	150	1,13,000
14.	Dyes of different shades	Lump-sum			1,00,000
Total					7,86,000

(iv) Utilities	(Rs.)
Electricity bill 37.5 x 25 x 4 x 0.8 x 24	72,000
Water charges	10,000
Fuel Coal/furnace oil	100,000
Fuel for vehicle	8,000
Total	1,90,000

(v) Other Contingent Expenses	(Rs.)
(a) Rent	-
(b) Postage/stationery	5,000
(c) Repair and maintenance	22,000
(d) Transport/travelling charges	30,000
(e) Insurance	19,000
(f) Telephone bills	10,000
(g) Miscellaneous	50,000
Total	1,34,000
(vi) Total Recurring Expenses (per month)	11,10,000
(vii) Total Working Capital for 3 months	33,30,000

C. Total Capital Investment

(i) Machinery and equipment	Rs. 3,48,24,000
(ii) Working capital for 3 months	Rs. 33,30,000
Total	Rs. 4,81,54,000

Machinery Utilisation

Capacity utilisation is considered as 75% of installed capacity.

Financial Analysis

(1) Cost of Production (per year)	(Rs.)
Recurring expenses	1,33,20,000
Depreciation on machinery @ 10%	6,14,000
Depreciation on office furniture, computor and testing equipments @ 20%	6,40,000
Depreciation on civil construction @ 5%	5,90,000
Interest on total investment @ 12%	57,78,000
Total	2,03,02,000

(2) Turnover (per year)

Processing Charges	Qty. Kgs.	Rate/Kg.	Amount (Rs.)
Bleaching Charges	4,50,000	25.75	1,15,86,000
Dyeing charges	4,50,000	32.90	1,48,05,000
Total			2,63,91,000

(3) Net Profit (per year)	60,89,000
(4) Net profit ratio (Net profit/Turnover (per year)	23.07%
(5) Rate of return on investment (Net profit/Total capital investment)	12.64%

(6) Break-even Point

Fixed Cost	(Rs.)
Depreciation	18,44,000
Rent	-
Interest on capital investment	57,78,000
40% of wages of staff and labour	19,05,000
40% of other expenses	6,43,000
Insurance	2,28,000
Total	1,03,98,000

B.E.P.	=	Fixed Cost × 100 --------------------
		Fixed cost + Profit
	=	1,03,98,000 × 100 ----------------------
		1,03,98,000 + 60,89,000
	=	63.07%

Addresses of Machinery and Equipment Suppliers

1. M/s. Gangan Mech. Works
28-B, Industrial Area,
Ludhiana-141003.

2. M/s. Ludhiana Dyeing Machinery Works
3064, St. No. 3, Ganesh Nagar,
Ludhiana-141003.

3. M/s. Paradise Engg. Corpn.
302, Industrial Area-A,
Ludhiana-141003.

4. M/s. Dynamic Engg. Corpn.
Dionic Chambers,
50, Rani Jhansi Road,
New Delhi-110055

5. M/s. Data Colour
3061/4, Lucky Lanes,
Andheri East,
Mumbai.

Raw Material Suppliers

1. M/s. Rangila Dyes Co.
Chauri Sarak,
Ludhiana.

2. M/s. Crescent Dye Industries
Chauri Sarak,
Ludhiana.

3. M/s. Sarjeevan Dyes Mfr. Co.
Industrial Area-A,
Ludhiana-141003.

4. M/s. ICI (India) Ltd.
P. B. No. 107,
Himaltane House,
New Delhi-110001.