ABSORBENT COTTON- Feasibility Report

As I promised earlier, am trying to keep my words. Here is another simple and product in demand namely ABSORBENT COTTON. The volume of the project could be tailor made but with certain changes in the profit margins. Interested persons are advised to check the local market potential for a viable unit in that area. Any comments or queirys welcome.

ABSORBENT COTTON- Feasibilty Report
Product and Its uses:
Absorbent Cotton also known as “Surgical Cotton” or “Cotton Wool” is mainly used for medical purposes in hospitals, dispensaries, etc.

Though the use of absorbent cotton was started several decades ago, the growth of this industry took a boom with the recent development in medical facilities to corporate levels. Growing awareness of hygienic materials increased the demand for absorbent cotton. Absorbent cotton is also extensively used for making sanitary pads, napkins and filters.
Market Potential :
Demand for absorbent cotton increases with increase in population, number of hospitals, dispensaries, health centers, etc. Besides Indian market it has export potential too. Japan, USA and EU countries import absorbent cotton from india with specific standards.

Manufacturing Process :
Raw cotton is opened in CRIGHTON opener where it is loosened and dust and other particles removed. The cotton is then sent to a KIER where it is steamed for about 3 hours along with added chemicals like SODA ASH, CAUSTIC SODA, DETERGENY, etc. This treatment removes waxes and oils and softens foreign matters present in cotton.

Cotton is washed and bleached with chemicals like hydrogen peroxide or sodium hupochloride. This bleaching process not only whitens the cotton but also improves its absorbing quality and disintegrates left over foreign materials.

Its is then opened in a wet cotton opening machine and then dried in a dryer thus avoiding the dust mixing up again with cotton. After drying the cotton once again thoroughly opened up in lap room and made into laps. The laps are then fed into a carding machine and the cotton is prepared into thin layers.

These thin layers are rolled and packed and disbursed to the consumer.

Project estimation :
The estimates made for techno feasible plant set-up. Unit is viable with 100tons per annum set up with standard type of manufacturing activity.

Land & Buildings :
350 sq.m. area with a built up shed of 200sq.m.
Equipment :
Carding machine, Hydro extractor, Wet cotton opener, Cotton dryer, Kier, Vertical cotton opener, Lap machine,rolling and winding machine, Boiler, etc.a
Manpower requirements :
Mgr/Technologist, Blow room operator, Boiler operator, skilled labour 6, Unskilled labour 14, clerk.

Raw Materials :
Raw ginned cotton – 10 tons; soda ash-1ton; Caustic soda-1.5tons; Bleaching agent-200kgs; Packing materials.
Utilities :
Coal for Boiler 25 tons; Electricity 100KVA, water treatment chemicals.

Other expenses :
Office establishment; Transportation; Maintenance; Plant rent.

Capital Investment :
Estimated Capital Invetment- Approx. INR31,50,000/-
Cost of Production :
Estimated Cost of production Per anum-INR34,80,000/-
Turnover :
By sale of Absorbent Cotton-INR42,40,000/-
Profit :
Profit per annum-INR7,60,000/- & Profit Rate -21.8%
Rate of Returns :
Rate of returns-24.1%
Break Even Point :
B.E.P.-53%

For more details and help you shall contact lotulinks@gmail.com