Detailed Project Report on handloom towel/door mat

                        HANDLOOM PRODUCTS

    (KHES, BEDSHEETS, BEDCOVERS, FURNISHING & TAPESTRY CLOTH)

                      [EIRI/DFR/461] J.C.:225

     The mill & power loom sectors largely cater to the needs  of the people who select fine varieties of cloth  with sophisticalet processing further use. The corser  7 cheaper varieties of  cloth are made  in hand loom & khadi industries. These Handloom & Khadi industries are cottage industries and they are mainly situated in rural  and  semi urban areas. Handloom and Khadi are one  of  the major  source   of employment and earnings for   a  fainly  large section of our country's population. Since handloom cloth can not complete  with  mills  technology handloom  cloth  must  be  made economical and this can only be done by giving dual advantage  of high   excise  duties  on the mill cloths  and  subsides  to  the handloom sector. However this is contrary to the  social justice. 

Generally the hand loom industry produced about one fourth of the cloth in the country.

     At present, cotton constitutes 78 percent of the total fibre consumed by the textile industry. According to the Working  Group of  the planning Commission on textile industry, by the  terminal year  of the Eighth Plan i.e. 1994-95, the share of  cotton  will come down to 72 percent. Even then the consumption of cotton will go  up  from 10.2 million to over 11.5 million bales. We have  to step  up  production of man made fibre/yarn  during  the  current decade in tune with  the projected demand. The demand  for  nylon fibre  is anticipated to go up from 67,000 tonnes in  1989-90  to 122,000  tonnes  by 1994-95 and to  197,000 tonnes  by  2000  AD. Polyester fibre demand is expected to rise from 218,000 tonnes to 400,000  tonnes  and further to 640,000 tonnes  during  the  same period.  However,  the  demand  for  cellulosic  fibres/yarns  is projected  to remain unchanged at 150,000 tonnes. The  basic  raw material  for  this  fibre  is rayon grade  wood  pulp.  For  the synthetic fibres/yarns, different raw materials are used.

     During    the   period,   1985-88,   the    production    of polyester/cotton  increased from 21 million  kg to 61 million  kg and  that  of polyester/viscose blended yarn  increased  from  50 million  kg to 100 million kg. The production of  viscose  staple fibre increased from 82,784 tonnes in 1983-84  to 1,25,701 tonnes in 1988-89. 

COST ESTIMATION

Product Name                                         Handloom

Land & Building (1500 Sq.mt )  Rs. 26.50 Lacs    

Plant & Machinery                            Rs. 3.30  Lacs 

Working Capital for 3 Month            Rs. 12.76 Lacs 

Total Capital Investment                  Rs. 43.71 Lacs

Rate of Return                                  42%

Break Even Point                              57%

CONTENTS

1.   INTRODUCTION                                      

2.   MANUFACTURE OF HANDLOOM PRODUCTS                  

3.   PROCESSING                                        

4.   PROCESS FLOW SHEET                               

5.   SUPPLIERS OF PLANT AND MACHINERY & EQUIPMENT     

6.   SUPPLIERS OF RAW MATERIALS                       

APPENDIX – A:

01. PLANT ECONOMICS

02. LAND & BUILDING

03. PLANT AND MACHINERY

04. OTHER FIXED ASSESTS

05. FIXED CAPITAL

06. RAW MATERIAL

07. SALARY AND WAGES

08. UTILITIES AND OVERHEADS

09. TOTAL WORKING CAPITAL

10. TOTAL CAPITAL INVESTMENT

11. COST OF PRODUCTION

12. TURN OVER/ANNUM

13. BREAK EVEN POINT

14. RESOURCES FOR FINANCE

15. INSTALMENT PAYABLE IN 5 YEARS

16. DEPRECIATION CHART FOR 5 YEARS

17. PROFIT ANALYSIS FOR 5 YEARS

18. PROJECTED BALANCE SHEET FOR (5 YEARS)