MAKING SPINDLE TAPES
Introduction
Spindle tapes are mainly used in textile industries where spindles do run at a very high speed with minimum vibrations. Perfect spindle tapes are ideal for cotton, woolen, worsted & synthetic fiber spinning. These tapes exhibit, Permanent anti-static behavior, are energy saving, high resistance to abrasion and easy to join. With increased focus on increasing local textile output, and the advent of institutions like Nytil and phoenix textiles plus the successful accessing of foreign markets especially through new trade policies, the demand for spindle tapes is also increasing. The Project cost is US$38,700 bringing revenue estimates of US$994 from production capacity of 14,000 rolls annually.
Production process, capacity, technology
The main production process consists of yarn preparation, and weaving. Yarn, nylon or cotton obtained in the form of cones from spinning mills is transferred into weaver’s beam using the warping machine and bobbins using the pin winding machine. The beaver’s beam is mounted on the multi- station power loom which constitutes warp. Bobbins are fed into the power loom through shuttles and this constitutes weft. Tape is woven by the interlacing of weft and warp. This is done mechanically by the power loom. After the tape is made, it is inspected, measured and rolled by the automatic tape rolling machine. The plant at the start of production has a minimum output of 700,000 meters each year. This is equal to 14,000 rolls each of 50 meters length, and working 26 days in a month.
Market Analysis
Spindle tapes have great market in the
textile sector. Therefore, supply should be made to those industries, which
deal in textile production. Potential for export exists in the long run
especially
with the advent of the AGOA act which promotes the export of textile materials
to the USA. However, with the growth of the local textile industry, there is
market locally for the tapes.
Capital Investment Requirement in US $
|
Item |
Units |
Qty |
Price |
Total |
|
Sectional warping machine |
No |
1 |
5,000 |
5,000 |
|
Pirn winding machines |
No |
1 |
2,500 |
2,500 |
|
Multi-station power loom |
No |
2 |
4,000 |
8,000 |
|
Automatic tape rolling machine |
No |
1 |
2,500 |
2,500 |
|
Total cost of tools |
18,000 |
1. Production costs assume 312 days per year with daily capacity of 2,243.5Metres.
2. Depreciation (fixed assets write off) assumes 4 year life of asset written off at 25% per year for all assets.
3. Currency used is US Dollar.
4. Direct costs include: materials, supplies and other costs incurred to produce the product.
Production and Operation costs in US$
Direct Materials, Supplies and costs
|
Cost Item |
Units |
Unit Cost |
Qty/day |
Prod cost/day |
Prod cost/month |
|
Direct Costs |
|||||
|
Cotton Yarn |
Mtrs |
0.15 |
19.23 |
2.9 |
75 |
|
Nylon Yarn |
Mtrs |
0.25 |
25.64 |
6.4 |
167 |
|
Chemicals |
Ltrs |
50 |
0.16 |
8.0 |
208 |
|
Sub-total |
17 |
450.00 |
|||
|
General Costs (Overheads) |
|||||
|
Labour |
1,000 |
||||
|
Selling & distribution |
200 |
||||
|
Utilities (Water, power) |
200 |
||||
|
Administration Expenses |
400 |
||||
|
Rent |
500 |
||||
|
Miscellaneous expenses |
100 |
||||
|
Depreciation |
375 |
||||
|
Sub-total |
2,775 |
||||
|
Total Operating Costs |
3,225. |
Project product cost and Price Structure in US$
|
Item |
Qty |
Qty |
Unit |
Prod cost |
Unit price |
Total rev |
|
Spindles |
2,243.5 |
699,972 |
0.1 |
38,700 |
0.2 |
139,994 |
Profitability Analysis in US$
|
Item |
Per |
Per month |
Per |
|
Revenue |
449 |
11,666 |
139,994 |
|
Less: Production and operating costs |
124 |
3,225 |
38,700 |
|
Profit |
325 |
8,441 |
101,294 |