NEW PROJECT OFFER incl.TECHNICAL TEXTILES
Mega TEXTILE PROJECT:
PROJECT CONCEPT CUM BUSINESS PLAN FOR SETTING UP A MEGA TEXTILE PROJECT WITH INTEGRATION AND VALUE ADDITION FROM COTTON SPINNING TO circular/ lycra /open cut KNITTING, DYEING/FINISHING AND MAKING UP, FOR EXPORTS
Proposal-In-Brief:
With value addition , from yarn to knit garments, project consultants Nuovatex at New delhi , are offering the project proposal to set up an integrated project from captive yarn spinning, knitting and upto garment making . In the complete production chain, however, the dyeing and finishing of the Knit fabric is proposed from outside, in Phase 1
Later, in phase 2, the project can add inhouse dyeing/ processing of knitfabric in open widthtype. This integrated project for Diversification cum value addition from inhouse Yarn spinning into the knitfabric and also knitted garment making is the right market opportunity with increasing export market and growing domestic retail for such fashion garments from Knitfabric.
Considering that the TUF scheme[ with 5% concession or interest rebate, and special 10% Subsidy for processing ,as also for weaving and for technical textiles] has been extended upto 2017 ,and the timing is also right to set up such projects with lowest interest burden .
The above Project, under reference , is being targeted to manufacture high-value adding knitted fabrics, and knit garments for the growing export and domestic retail markets .In near future, Phase 2, the project will be expanded o include a 10 Ton/day of specialized Dyeing and finishing facility for open-cut knitfabrics.,with addition of towel weaving and processing for towel etc.
The integrated project, of overall capital cost Rs 150 crore, will also included in house production of 5000 Pieces/day of knit garment in phase 1 with captive 20,000 spdl. Yarn spinning. Mill ,with both cotton and polyester spinning, with own 24 machine knitting unit and garment unit of 750 knitted garment making machines plus few embroidery mcs .
The Core components of the integrated project recommended shall be as below :
An on- site common complex would have a captive ring spinning unit of upto 25000 spdls. to produce 18 ton/day of knitting yarns,of cotton and polyester and their blends like PC, from the cotton to be sourced from nearby cotton belt.
- Plant /mcy capex for the cotton spinning unit will be Rs 65 crore, at avg Rs 32000/spdl.
- The on site common complex would have 24 nos. Circular knitting mc, of large dia, with flat bed Collar mcs and computer Embroidery mc, along with a garment making line of 750 sewing mc and others. The approx. Investment for above composite and integrated Spinning/ fabric/garment making units will be Rs 150 crore.
- and which can be financed by bank term loans of 70% and promoters equity of 30% incl. Subsidies. The updated pre –investment Project profiles are provided on above and other/All textile, and on Technical textile project proposals on a Fee payable basis.
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The scope of work and Fee etc are available via email request.
THE TABLE BELOW SUMMARISES THE PROJECT,PROPOSED IN PHASE 1
| Sr. No. | Project Parameter | Associated Value | Unit | Remarks |
|---|---|---|---|---|
| 1 | Project Cost | 60
in phase 1 |
Rs Crores | Incl. Spg+Knttg +RMG for Ph 1 |
| 2 | Land requirement | 10-12 | Acres | Preferably more for ETP needs, in phase 2 |
| 3 | Knttg. mcs & Sewing mcs | 6
250 |
– | jersey-4, others-2 |
| 4 | Means Of Financing | Debt-2
Equity-1. |
– | – |
| 5 | Term loan Interest Rate | 8 | % | nett. Under INTT. subvention |
| 6 | Phase 1 Capacity | 6.5 tpd yarn +5000 pc Garments | – | ,on 10,000 spdls ,on 250 sew mc |
| 7 | Sales Value | 75 | Rs Crores | In phase 1 |
| 8 | GROSS PROFIT | 20% | GP to Sale % | Garments at 25% fabric |
| 9 | Simple Payback Period | 4 | years | – |
| 10 | Break-even Point | 50 | % | In the first year |
| 11 | Average DSCR | – | 1.85+ | – |
2. TECH.TEXTILES , AND OTHER MARKET VIABLE PROJECTS :
Textile industry is enjoying the valued support from the Govt via the TUF scheme validated till March 2017. In addition to the rebate of 5% on bank loan Interest, there is a special capital Subsidy available from 10 to 15% of assets value incase of Technical Textiles/Nonwovens /Weaving and Processing /dyeing projects.
Further ,support is available from textile leading States like Gujarat, Maharastra, M.P., Rajasthan, Uttarakhand and others which have come up with special new State Textile Policy to provide additional and extra Subsidy and concessions for Interest/VAT and Power and ETP etc with the objective of bringing down the nett effective `interest `on new Textile units to almost 3-4% level.
A] TECH.TEXTILES PROJECTS: We recommend projects for Needle-punched Filter and felt fabrics ,and also a project for SMS/SMMS type spunbond Nonwovens,under Technical Textiles.The Phase1 capex for such projects will be Rs10 to 20 Croremanufactured ; and will enjoy Subsidies . A higher capex project for Melt Blown fabrics is also advised by us.
B] Another good and market Viable project recommended is for manufacturing of regenerated Polyester fiber from recycled PET bottles; and/or integration with a Nonwoven unit to produce felts and floor coverings for automobiles and offices, and waddings for furniture cushions etc.The estimated Project cost, based on high end China plants, is approx Rs 15-20 crores.
A ready to use updated Project Report can be offered, under advance fee in 10days of confirmation,and a detailed TEV and/or DPR in 30-45 days time.
Project proposals by: Nuovatex Projects Co.