ABSORBENT COTTON

A. INTRODUCTION

Absorbent Cotton is also known as Surgical Cotton or Cotton Wool and mainly used for
medical purposes in hospitals, nursing homes, dispensaries and at home (for first aid) etc. because of its
property of high fluid absorbency, it is better known among masses as absorbent cotton. The raw
cotton is processed by series of steps which render the cotton hydrophilic in character and free from
external impurities needed to be fit for use in surgical dressings and personal hygiene. Apart from
medical purposes absorbent cotton is also used for making conventional type of sanitary napkins or
pads. Fairly good quality of absorbent cotton is also used for removing make-up and dirt at beauty
parlours.

B. MARKET POTENTIAL

The demand of Absorbent cotton is directly related with the increase in population and
expansion of public health services. The demand for Absorbent Cotton increases with the increase in
population and number of hospitals, dispensaries, nursing homes, health care centers etc. Progressive
increase in health amenities offered by Government and coming up of new hospitals and health care
centres in private sector even at small towns are contributing to the growth of absorbent cotton
industry. Government hospitals and large nursing homes are the largest consumer for cotton wool.
With the development of medical facilities and growing awareness towards personal hygiene,
the absorbent cotton industry registered steady growth rate in past and is picking up pace with the
spread of education and upward economic growth of towns and villages.

C. BASIS AND PRESUMPTIONS

a) The estimates are drawn for a production capacity generally considered Techno-
economically viable for model type of activity.
b) The costs in respect of land and building, machinery & equipments, raw materials and
the selling prices of the finished product etc. are those generally prevailing at the time of
preparation of the project profile and may vary depending upon various factors from
place to place and time to time.
c) The production capacity is based on single shift working for 300 working days per
annum.
d) Where as some names of manufacturers / suppliers of machinery and equipments,
raw materials are indicated at the end of the profile, these are by no means exclusive or
exhaustive.

D) IMPLEMENTATION SCHEDULE

Sl. No. Activity Expected time

1. Preparation of Final Project Report 1-3 months
1. Provisional Registration 1 week
1. Financial Arrangements 3 – 6 months
 1. Procurement of Machinery 3-5 months
1. Installation, electrification and commissioning of 1-3 months
machinery and other facilities
1. NOC from Pollution Control Board (if required) 1- 2 months

E) TECHNICAL ASPECTS

i) Process of Manufacturing:
The process of manufacturing consists of various steps, as follows:
a) Opening and cleaning of Raw cotton:
Raw cotton received in bale or otherwise is opened in opener where it is loosened and
simultaneously dust / foreign particles are also removed. Loosened cotton is then put
into a keir where chemicals such as caustic soda, soda ash, detergent, etc. are added
along with adequate water and steam boiled for about 3-4 hours. By this process most of
the natural waxes and oils are removed while remaining foreign matter get soften and
disintegrated. The treated cotton is transferred to washing tanks where it is washed
thoroughly.

b) Bleaching:
Washed cotton is bleached to remove brownish colour developed due to chemical
treatment. Bleaching is done by using bleaching agent such as sodium-hypochlorite or
hydrogen peroxide. The bleaching process improves whiteness, wetting properties and
assists in disintegration of any remaining foreign materials.
c) Removal of Chemicals:
The bleached cotton is thoroughly washed again to remove the chemicals. A little
quantity of dilute hydrochloric acid or sulphuric acid is also added to neutralize excess
alkali. If required, again washed with water. The water of cotton is removed with the
help of hydro-extractor. It is then sent to a wet-cotton opening machine.
d) Drying:
The cotton so obtained is dried by passing through dryer or alternatively subjected to
sun drying where provision for dryer is not there.
e) Lapping:
The dried cotton is sent to blower room where it is thoroughly opened and made into
laps.
f) Carding:
The laps are then fed into carding machine wherein cotton is
warped around rollers in thin layers.
g) Rolling:
Cotton so obtained is compressed and rolled into suitable role size alongwith packaging
paper.
h) Weighing and cutting:
The rolls are then weighed and cut according to required weight and sizes and labeled
properly before packing in polythene sheets and heat sealed.
 ii) Quality Control Standard:
This item is covered under Drug Control Act. Hence, it should be manufactured to meet its
requirements.
iii) Production Capacity (Per annum)

a) Quantity : 300 MT.

b) Value : Rs. 202.75 lacs.

iv) Power Requirement:

Total approx. motive power requirement : 120 KW.

v) Pollution Control:

NOC from Pollution Control Board is necessary to be obtained before

starting the industrial activity. Suitable equipments are to be provided to check the harmful and non-
permissible contents in the effluent. Hence, effluent water may be treated suitably to remove harmful
contents before discharging the effluent.

vi) Energy Conservation:

Suitable provisions like shunt capacitor for electric motors, thermal insulation, etc. are required
to save energy. All energy devices are required to be used with care and judiciously.

F) FINANCIAL ASPECTS

1) Fixed Capital

i) Land and building

Land : 1000 sq. mtrs : Rs. 35,00,000/-

Total built up area : 100 sq. mtrs

(Office, Store, etc.) : Rs. 15,00,000/-
&
Working Shed: 600sq.mtrs

Garden required for the sun dry of Cotton: 300 sq mtrs .

Total : Rs. 50,00,000/-

ii) Machinery & Equipment

Sl. Description Quantity Value(Rs.)

No.
1 High pressure Keir(MS) inside coated with acid
resistant epoxy coating, fitted with pump, steam
pipe, capacity 2000 kgs. Charge of cotton with all 1 1,70,000/-
accessories
2 Carding machine (Revolving flat high
production)1016 mm width with dust extruder,
2 7,50,000/-
electronic stop motion, brush rolls, stripping brush
rolls and other accessories.
3 Two compartment continuous cotton dryer with
steam heating arrangements at 100 psi provided
2 6,60,000/-
with trolley, electrical heaters and electric control
panel
4 Porcupine cleaners 1200 mm working with 406
mm diporcupine type cylinder with strikers having
two striking edges, centrally adjustable grid bars 2 2,50,000/-
and reduction gear, electric motor(5 HP) for
materials transport with accessories.

5 Centrifugal Hydro-extractor with S.S. Basket dia

1000 mm fitted with motor and other accessories 1 90,000/-

6 Wet cotton opener working width 1000 mm fitted

with motors and accessories 1 48,000/-

7 Vertical opener with 7 steel discs and three

separate centrally adjustable settings for beater
1 1,00,000/-
and grid bars fitted with motor 5 HP complete
with accessories
8 Single soutcher and lap machine 1065 mm
working width with Kirschener beater, centrally
adjustable grid bars, high pressure device for
2 6,50,000/-
loading calendar rollers and lap racks, etc. for
making lap holder for continuous operations with
10 HP motor starter etc.
9 Rolling and winding machine 1320 mm on face,
complete with motor starter and other accessories 2 60,000/-

10 Small band saw type machine with motor for rolls

cutting 2 17,000/-

11 Air compressor for lapping machine 1 13,000/-

12 Coal/wood fired boiler 1000 kg/ hrs. Evaporation
capacity, 50 psi complete with feed pump and 1 1,95,000/-
accessories
13 Water overhead tank of 10,000 liters capacity and L.S.
tube well fitted with accessories 80,000/-

14 Water treatment plant for treating process water L.S.

required for boiler and keir 85,000/-
15 Water and pipe connection with insulation, various
M.S. tanks and concrete tanks for washing L.S. 47,000/-
purpose etc.
16 Weighing scale, sealing machine and balancing
equipments - 5,000/-

17 Testing equipments such as pH meter, Soxhlet–

extractor, chemical balance, crucibles, furnace, - 1,20,000/-
oven, etc.
18 Electrification and installation charges - 3,00,000/-
19 Pollution Control and Energy Conservation
equipments. - 1,50,000/-

Tota 37,90,000/-
l

iii) Office Furniture and equipments : Rs. 50,000/-

iv) Pre-operative Expenses : Rs. 30,000/-

Total Fixed Capital (i + ii + iii + iv) : Rs. 88,70,000/-

2) Working Capital

i) Staff & Labour(Per Month):

Sl. No. Designation No. Total Salary

1 Manager 1 6,000/-
2 Chemist 1 5,000/-
3 Clerk – cum – Accountant 1 3,000/-
4 Supervisor 1 3,500/-
5 Storekeeper 1 3,000/-
6 Blow Room Operator 1 3,000/-
7 Boiler Attendant 1 3,000/-
8 Skilled Worker 20 60,000/-
9 Unskilled Worker 34 68,000/-
10 Packers 5 10,000/-
11 Peon – cum – Watchman 1 2,000/-
Sub- 1,66,500/-
total
Perquisi 25,000/-
tes
 Total 1,91,500/-

ii) Raw Materials(Per Month):

Sl. Particulars Quantity (Kg.) Rate Value (Rs.)

No. (Rs./Kg.)
1 Raw Ginned Cotton 27,500 32 8,80,000/-
2 Caustic Soda 850 18 15,300/-
3 Soda Ash 550 11 6,050/-
4 Bleaching Agent 550 6.5 3,575/-
5 Misc. Chemicals LS - 26,000/-
6 Packing paper, labels, Gum, LS
Polyethylene sheets, sacks, -
etc. 50,000/-

Total 9,71,300/-

iii) Utilities (Per Month):

Sl. Particulars Quantity Rate Value (Rs.)

No.
1 Coal for boiler 45 MT 1,800 /MT 81,000/-
2 Electricity 17,000 KWH 4.5/KWH 76,550/-
Total 1,57,500/-

iv) Other Expenses(Per month):

Sl. No. Item Amount(Rs.)

1 Postage and stationery 1,000/-
2 Telephone 1,000/-
3 Sales Expenses 15,000/-
4 Transport 10,000/-
5 Consumable Stores 3,000/-
6 Repair & Maintenance 2,500/-
7 Insurance 1,500/-
8 Misc. expenditure 1,500/-
Total 35,000/-
v) Total Recurring Expenses (Per month):

(i + ii + iii + iv)
1, 91,500 + 9,71,300 + 1,57,500 + 35,000 = Rs. 13,55,300/-

vi) Total Working Capital for 3 months”

(v x 3) = 13,55,300 x 3 = Rs. 40,65,900/-

3. Total Capital Investment :

i) Fixed Capital : Rs. 88,70,000/-

ii) Working Capital for 3 months : Rs. 40,65,900/-
Total : Rs. 1,29,35,900/-

G. FINANCIAL ANALYSIS

1. Cost of production(per annum)

Sl. No. Description Amount(Rs.)

i Total Recurring Expenditure (annual) 1,62,63,600/-
ii Depreciation on Machinery & Equipments @ 3,49,000/-
10%
iii Depreciation on office furniture and equipments 10,000/-
@ 20%
iv Depreciation on Building @ 5% 75,000/-
v Interest on Total Capital Investment @ 15% 13,06,635/-
Total 1,80,04,235/-
Say 1,80,00,000/-

2. Total Sales (Per annum)

i) 300 MT Absorbent Cotton Rs. 1,99,50,000/-

@ Rs. 66,500 per MT
ii) Cotton Waste 25 MT Rs. 1,25,000/-
Total Rs. 2,00,75,000/-
3. Profit (Per annum)
Annual Sales – Cost of Production
2,00,75,000 – 1,79,55,000 = Rs 20,75,000/-

4. Net Profit Ratio (On Sales):

20,75,000 . x 100 = 10.35%
2,00,75,000