A Cotton Gin (short for cotton engine) is a machine that quickly and easily separates the cotton fibers from the seedpods and the sometimes, sticky seeds, a job previously done by hand. These seeds either used again to grow more cotton or, if badly damaged, are disposed of for use in cattle feed production.
The cotton ginning sector primarily developed during the 1980s and is one of the most important sectors of the economy. This is a base industry of cotton processing.
Ginned cotton is the basic need of spinning mill and other units require raw cotton like quilt & other product manufacturers. Demand of the service is very huge because cotton can not be use without ginning and hand process is very time and labour consuming. Thus the demand of the service is very huge in cotton growing areas. Demand for ginned cotton is significantly affected by its quality, which depends on the characteristics of the raw material.
Basis of estimation: 300 Working Days in a Year
Single Shift basis
8 hours per shift
Quantity (Kg) 75000 Value (Rs) 3000000
The steps followed in the manufacturing process are given below:
* Collection of raw cotton.
* Ginning with the help of carding machine.
* Bell Making & Packaging
Quality of the product must be as per customers demand and according to Beauro of Indian standards. Product contain no or minimum quantities of seed in it.
1. Covered area Sq. Ft. 500
2. Uncovered area Sq. Ft. 42500
3. Total area Sq. Ft. 43000
4. Whether constructed or Rented Rented
5. If constructed, constructed value Rs N.A.
6. If Rented, Rental value (per month) Rs 5000
S.N. Description Qty. Value (Rs.)
1. (Cotton Ginning) Heavy Duty Carding Machine 1 125000 2. 10 HP motor with starter and other accessories 1 3. Stands for carding machine 1 4. Weighing Balance 1 5. Hand Press for Cotton Bell Making 1 6. Hand Tools 1 7. Furniture 1 8. Sales Tax, Freight & Insurance etc. 12500 Total 137500
S.N. Particulars Quantity (Kg) Value (Rs) 1. Raw Cotton 6250 156250 2. Packaging Material 750 Total 157000
S.N. Particulars Qty Rate Value (Rs) A Administrative and Supervisory (i) Manager 1 3000 3000 (ii) Peon/ Chowkidar 2 2000 4000 B Technical (Skilled-Unskilled) (i) Skilled Worker 1 3000 3000 (ii) Unskilled Worker 4 2000 8000 Sub-Total 18000 Plus perquisites @ 30% of salaries 5400 TOTAL 23400
1. Rent of Land & Building 5000 2. Electricity Charges 8000 3. Fuel Exp. 0 4. Advertisement & Travelling 2000 5. Transport 5000 6. Consumable & stores etc. 1000 7. Postage expenses/ telephones 1000 8. Stationery 1000 9. Repairs & Maintenance’s 2000 Total 25000
10. Working Capital (For One Month)
Sl.No. Description Amount(RS) 1 Raw material 157000 2 Salaries & Wages 23400 3 Other Expenses 25000 Total 205400
Building & Other Civil Works - Machinery & Equipment 137500 Working capital for one month 205400 Total 342900
Total recurring cost per year 2664800 Depreciation on machinery & equipment 14000 Interest on total investment @ 10% 35000 Total 2713800
S.N. Item Qty (Kg) Value (Rs.) 1. Ginned Cotton 75000 3000000 Total 3000000
14. Profitability (Before Income Tax)
1. Annual Gross Profit 286200 2. % of Profit on Sales 9.54% 3. Break Even Analysis 3.1 Annual Fixed Cost 580800 3.2 Annual Sales 3000000 3.3 Annual Variable Cost 1884000 3.4 Break Even Point 52.04%
(% of Total Production envisaged)
Annual fixed cost X 100
————– —————- ————- = %
Annual sales – Annual variable costs
1 Arora Industries,
Gujrat Jinning Mill Compound,
2 Demand Engineering Works
Near Odiyan Talkies,
3. Dariyali Engineering Works
27, DLF Industrial Area,
Najafgarh, New Delhi
4. Huma Traders
Near Shajanabad Thana,
From Local cotton mandi or growers of the area.
Proposed Project can commence production with in 6-8 weeks after sanction and first disbursement of term loan.
1 Number of Working Days in a year 300 Days 2 Number of Shifts in a day 1 One 3 Hours in a Shift 8 hours 4 Plant Capacity Consider on Average production capacities of plant. 5 Raw material Estimates Based upon product Mix 6 Raw Material Availability Dhar , Barwani, Chhindwara and Seoni districts of MP 7 Depreciation Straight Line Method 8 Manpower According to project Requirement 9 Rent estimate On the basis of current market prize of the area. 10 Potential Area of Marketing the products Spinning Mills situated in and around the district / state. 11 If project is funded, term loan would be 60-80% of Total investment 12 Moratorium Period 6- 12 months 13 Repayment Period 5-7 years 14 Project may be established under PMEGP (GOI) / Tribal Self Employment Scheme (NSTFDC) or Rani Durgawati Scheme of MP
Posted in: Textile Ginning