A Project Proposal of Bed Coversheet Manufacturing Textile

Bed Coversheet Manufacturing Textile

The proposed Bed Cover/Bed Sheet Manufacturing unit has been planned to turn out quality products. The machinery for the project have been proposed to be imported from Germany, Austria, Korea, Japan, Taiwan, USA, etc. After implementation the project will create job opportunities for 732 personnel of different categories.

It is expected that the project will go for commercial operation within 12 months from the date of opening of letter of credit for imported machinery. Total fixed cost of the project has been estimated at Tk. 23997.88 lac. Sewing facilities under the name and style of —————————–. Each production process has been planned and designed with following concepts in mind. The concepts are as follows :

The final products planned here should be aimed at the world market. The products should be of high quality, to meet world demand and low cost for export competitiveness.
Machinery and equipment best suited to the conditions and environment of Bangladesh should be adopted.
Bangladesh advantages eg. Low labour costs, should be fully taken into consideration.
The machinery and equipment for all the process and departments should be installed to enable maximum efficiency.
Product Mix and Capacity :

The product mix is flexible and will be determined by production plan, market demand and overall profitability.

Adequate and appropriate facilities will be provided for turning out high quality Home textile (Bed cover & bed sheet) for export. Based on 3 shifts operation of 8 hours each per day and 345 working days in a year the product mix and production capacity of Weaving, Dyeing-printing-finishing and Cutting & Sewing (Home Textile) unit is given below :

WEAVING :

Items of Product	Fabric Specification	No. of Loom	Annual Production Capacity in yds.
a) Cotton Sheet fabric	80×80/260×180–106”	100 (Air Jet)	44,85,000
	Total		44,85,000

In 1^st phase the unit will have latest model 100 Air Jet loom, which with all infra-structural facility will be able to weave value added high density fabric. Daily processing i.e. Dyeing-Printing Capacity will be 90,000 yds, but with 100 Air jet looms, the unit will be able to weave only 13,000 yds high density fabrics per day. Rest amount of grey fabric will be procured locally/imported as per following specification:

Items of Product	Specification	Capacity in Yds	Remarks
a) Grey Fabric	60×60/185×125–116”	64,58,400	100% cotton fabrics
b) Grey Fabric	40×40/130×80–116”	28,56,600	100% cotton fabrics
c) Grey Fabric	30×30/076×68–116”	172,50,000

DYEING – PRINTING AND FINISHING:

The unit comprises of singeing-desizing, scouring-Bleaching, washing & drying Range, stentering, Dyeing, Printing and Finishing. Dyeing and Printing capacity per year will be as under:

Items of Product	Unit	Total
a) Dyeing & finishing	Yd.	138,00,000
b) Printing & Finishing	Yd.	172,50,000
Total	Yd.	310,50,000

Dyeing shade and printing design is flexible and will be determined by market demand and overall profitability.

CUTTING AND SEWING:

Items of Product	Specification	Annual Capacity in pcs
Dyed :
a) 60×60/185×125	106” x 102” (Finished Size)	19,87,200
b) 80×80/260×180	106” x 102” (finished size)	13,80,000
c) 40×40/130×80	106” x 102” (finished size)	8,78,954
Printed :
d) 30×30/76×68	106” x 102” (finished size)	53,07,692
	Total	95,53,846

Land :

————————————–.

The area of land measuring 100 bigha. As per prevailing market price total cost of 100 bigha land has been estimated at Tk. 1485.00 lac @Tk. 14.85 lac per bigha. The land is on an average about 5’-00” low from the road level. The development cost of the land has been estimated at Tk. 574.59 lac. Thus total cost of and stands at Tk. 2059.59 lac.

The site have plenty of subsoil water which is very suitable for Textile Processing. All infra-structural necessities like Gas, Power, Water, Drainage, communication and labour are available nearby the project site.

Building :

The building and other civil works for the project will includes factory buildings, godown, office building, Generator & sub-Station room, boiler house, pump house, security guard room, etc. Moreover, in order to provide residential accommodation to some selected technical and administrative personnel, a multistoried residential building, overhead & underground water tank, internal road, boundary wall, civil works for effluent treatment plant, etc. are to be constructed for the project.

The dyeing, printing & finishing factory building will be made of pre-fabricated structure with rcc foundation, mosaic floor but without false ceiling. Weaving factory building will be made of pre-fabricated structure with falce ceiling, rcc foundation.

Total estimated covered area of the factory building including godowns are about 255,000 sft. The total cost of civil works has been estimated at Tk. 3017.90 lac.

Imported Machinery :

The proposed composed Textile project is based on the Brand new latest model weaving plant & Dyeing Printing-finishing imported machinery. The machinery to be imported are of similar type already operating in Pakistan, India, China and their performance is reported to be satisfactory. The machinery and equipment to be imported for weaving, Dyeing-printing-finishing and cutting- sewing & utility are stated as follows :

WEAVING AND PREPARATORY MACHINERY:

The weaving unit of the project will comprising of shuttleless AIR-JET loom and preparatory machinery such as Sizing machine, Warping machine, reaching-in-Drawing in machine, Knotting machine, cloth inspection and measuring machine, etc. The cost of weaving and preparatory equipment has been considered at C&F Euro 63,52,475 eqvt. to Tk. 5272.55 lac.

DYEING-PRINTING AND FINISHING :

Dyeing-Printing and Finishing unit consists of a variety of machinery such as, Singening & Desizing machine, Open width Scouring & Bleaching, Stenter, Rotory screen printing with screen preparation equipment & color kitchen, Curing Machine, caleneder, Inspection machine, folding and measuring machine, etc. The C&F value of imported dyeing-printing-finishing machinery stands at US$ 105,140, Euro 71,78,975 & GBP 106,030 Eqvt. to Tk. 6156.23 lac.

CUTTING & SEWING MACHINE :

The cost of Cutting & sewing machinery has been estimated at US$ 207,776 eqvt. to Tk. 139.21 lac.

Common Facility Machine :

Common facility machinery like humidification plant, Chiller, water softner, Boiler, Generator, Effluent treatment plant, etc. have been considered for the plant. The cost of plant and machinery for common facility has been estimated at US$ 33,26,800, Euro 368,000 eqvt. to Tk. 2534.40 lac.

Local Machinery :

The unit will require considerable number of local machinery and equipment namely deep tube well, workshop equipment, weighing scale, DB/SDB, materials handling trucks, fire fighting equipment, ducting and installation of humidification plant, electrical cables, pipings, etc. The cost of local machinery and equipment has been estimated at Tk. 900.00 lac.

Erection & Installation :

The machinery will be installed by foreign erectors to be deputed by the suppliers but their fooding, lodging, Air ticket, pocket expenses will be borne by the sponsors. Foreign erectors would be assisted by a team of technicians and skilled workers. Cost of installation has been estimated at Tk. 50.00 lac. Erection will be completed within four months.

Technical Services and quality control :

The technology involved in weaving of fabrics, dyeing printing and finishing of fabrics and garments manufacturing are well known in Bangladesh. Qualified technical persons are available in the country. Experienced and skilled technical personnel will be recruited for smooth operation and maintenance of machinery. Besides, the project will have its own quality control equipments.

Employment Opportunity :

The project after implementation will create job opportunities for 732 persons.

Cost per Employment :

The cost per employment has been estimated at Tk. 32.78 lac.

Contribution to GDP :

The project will contribute Tk. 10701.62 lac per annum to the economy of the country.

Cost of the Project:

The total cost of the project has been estimated at Tk. 23997.88 lac. Cost of the project and means of Finance are as follows:

(Tk. in ‘000’)

Item

F/C

L/C

Total

Land

Building

Plant & Machinery

Local Machinery

Erection & Installation

Vehicles

Furniture, Fixture & Equipment

Consultant’s Fee

Pre-Operating Expenses

Contingency

Interest during Construction

1410239 0

205959

301790

70512

90000

25050

23700

10000

4000

16500

74038

168000

205959

301790

1480751

90000

25050

23700

10000

4000

16500

74038

168000

Total Cost of the Project

1410239

989549

2399788

Means of Finance:

(Taka in ‘000’)

	F/C	L/C	Total
Debenture : Debenture Financing Interest during construction	1400000 0	0 168000	1400000 168000
Total	1400000	168000	1568000
Sponsor’s Equity	10239	821549	831788
Total debenture & Equity	1410239	989549	2399788

Profitability :

Tk. In ‘000’

1st Yr. 2nd Yr. 3rd Yr. 4th Yr. 5th Yr.

——- ——- ——- ——- ——-

Capacity Utilisation 65% 70% 75% 80% 80%

Sales 3244737 3616597 3879386 4138791 4148498

Gross Profit 663650 740227 794390 847731 839261

Net Operating Profit 359969 439007 519640 599472 622003

Net Profit after return 215981 273483 334155 396604 426909

on Investment

Ratios :

Gross profit to sales (%) 20 20 20 20 20

Operating profit to sales (%) 11 12 13 14 15

Net Profit to sales (%) 07 08 09 10 10

Return on Equity (%) 20 20 18 17 15

Return on Investment (%) 07 08 10 11 11

Debt-equity ratio :

On completion of the project the debt-equity ratio will be 65 : 35.

Fixed Assets Coverage Ratio :

The fixed assets coverage to debenture will be 1.59 times on completion of the project.

Debt-service coverage ratio :

The debt-service coverage ration of the project has been estimated at 3.30, 1.52, 1.71, 1.93 & 2.10 times the first 5 years of operation.

Break-Even Analysis :

The break-even analysis has been carried out on the basis of cost and sales data of 4th year of operation and is shown in Annex – XI. The project is expected to break-even at 36% of the capacity utilization at sales value of Tk. 14930.01 lac. The cash break-even will be at 19% of the capacity utilisation of the project.

Financial Rate of Return :

The financial rate of return of the project has been computed following the discounted cash flow techniques and is shown in Annexure – XIV. The project promises a financial rate of return about 32%.

Management Aspects

ORGANIZATION SET-UP :

The overall management of the company’s business will be vested in its Board of Director. The Managing Director will be the Chief Executive of the company who will assume overall responsibility of the day to day operations of the company. He will closely assisted by the Chairman and Director for efficient management of the company.

PROMOTERS & THEIR BACKGROUND :

The name and address of the promoters along with shares and status in the proposed company have been shown below :

The over all management of the company would be vested with its Board of Directors who will be guided by the provisions of Articles of association. Moreover, the Managing director will be the chief Executive to dictate and supervise the over all functions and day to day operational performance of the company. In most cases, his decision would be final and supreme. However, for uninterrupted operational speed of the company, the Managing Director would seek advice, valued comments and guidance from the Chairman and Directors. In addition, advice and consultancy services may also be sought from among the experienced service holders of various disciplines to be recruited for smooth operation of the project.

Technical Aspects

BASIC CONCEPT :

he proposal is for setting up of a 100% export oriented Bed cover/Bed sheet Manufacturing unit having Weaving, Dyeing, Printing-Finishing and Cutting & Sewing facilities under the name and style of ———————– TEXTILES LIMITED. Each production process has been planned and designed with following concepts in mind. The concepts are as follows :

The final products planned here should be aimed at the world market. The products should be of high quality, to meet world demand and low cost for export competitiveness.
Machinery and equipment best suited to the conditions and environment of Bangladesh should be adopted.
Bangladesh advantages eg. Low labour costs, should be fully taken into consideration.
The machinery and equipment for all the process and departments should be installed to enable maximum efficiency.

PRODUCTION PROGRAM :

The project has been designed with the target of export market. The production program has been designed with an optimum machine capacity from the view of financial, marketing, management and technical aspects. The section wise machine capacity based on the technological suitability is shown as follows :

WEAVING UNIT :

Weft insertion technology in the weaving process has developed economically in favour of high speed motion to achieve high production. Shuttless Airjet looms are in operation in Bangladesh. The Airjet weaving machine is suited to the production of light, medium and heavy fabrics as well as fashion oriented fabrics and also suitable for weaving with spun yarn of natural and man-made fibres. The weaving unit will be provided with required preparatory machine for running at minimum 650 rpm and 90% efficiency. Weaving capacity will vary depending on fabric construction.

PREPARATORY – DYEING- PRINTING AND FINISHING UNIT :

The Preparatory-Dyeing-printing and finishing machinery are Brand New and comprises of multiple number for process e.g. singeing-Desizing, scouring – bleaching-washing and drying range, stentering with pader, Dyeing-Printing – curing, calendaring, etc. Daily processing capacity will be about 90,000 yards.

CUTTING AND SEWING :

Based on Dyeing and Printing capacity, the unit will be able to produce about 90,000 yards fabrics per day. Entire fabrics will be consumed for Bed cover/sheet manufacturing by cutting & sewing.

PRDUCT MIX AND PRODUCTION CAPACITY :

The product mix is flexible and will be determined by production plan, market demand and overall profitability.

Adequate and appropriate facilities will be provided for turning out high quality Home textile (Bed cover & bedet) for export. Based on 3 shifts operation of 8 hours each per day and 345 working days in a year the product mix and production capacity of Weaving, Dyeing-printing-finishing and Cutting & Sewing (Home Textile) unit is given below :

WEAVING :

Items of Product	Fabric Specification	No. of Loom	Annual Production Capacity in yds.
a) Cotton Sheet fabric	80×80/260×180–106”	100 (Air Jet)	44,85,000
	Total		44,85,000

Average RPM – 650 and 90% efficiency for air jet loom.

Weaving construction & type of fabric manufacturing is flexible and will be determined by overall market demand and profitability.

In 1^st phase the unit will have latest model 100 Air Jet loom, which with all infra-structural facility will be able to weave value added high density fabric. Daily processing i.e. Dyeing-Printing Capacity will be 90,000 yds, but with 100 Air jet loom, the unit will be able to weave only 13,000 yds high density fabrics per day. Rest of the fabric will be procured from outside as per following specification :

Items of Product	Specification	Capacity in Yds	Remarks
a) Grey Fabric	60×60/185×125–116”	64,58,400	100% cotton fabrics
b) Grey Fabric	40×40/130×80–116”	28,56,600	100% cotton fabrics
c) Grey Fabric	30×30/076×68–116”	172,50,000	100% cotton fabrics

DYEING – PRINTING AND FINISHING :

The unit comprises of singeing-desizing, scouring-Bleaching, washing & drying Range, stentering, Dyeing, Printing and Finishing. Dyeing and Printing capacity per year will be as under :

Items of Product	Unit	Total
a) Dyeing & finishing	Yd.	138,00,000
b) Printing & Finishing	Yd.	172,50,000
Total	Yd.	310,50,000

Dyeing shade and printing design is flexible and will be determined by market demand and overall profitability.

CUTTING AND SEWING :

Items of Product	Specification	Annual Capacity in pcs
Dyed :
a) 60×60/185×125	106” x 102” (Finished Size)	19,87,200
b) 80×80/260×180	106” x 102” (finished size)	13,80,000
c) 40×40/130×80	106” x 102” (finished size)	8,78,954
Printed :
d) 30×30/76×68	106” x 102” (finished size)	53,07,692
	Total	95,53,846

Considering 3.25 yds/pc of Bed sheet/Cover. It may be mentioned here that usually Bed cover/Sheet is marketed as set i.e. one fitted sheet, one flat sheet & one or two pillow cover. For easy understanding only bed cover/Sheet has been considered and one pc of bed cover/sheet contain 3.25 yds.

LAND AND LOCATION :

BUILDING AND OTHER CIVIL WORKS :

Total estimated covered area of the factory building including godowns are about 255,000 sft. The total cost of civil works has been estimated at Tk. 3017.90 lac. Item wise details of building & civil works are shown in Annex – II.

PLANT AND MACHINERY :

WEAVING AND PREPARATORY MACHINERY :

DYEING-PRINTING AND FINISHING :

CUTTING & SEWING MACHINE :

The cost of Cutting & sewing machinery has been estimated at US$ 207,776 eqvt. to Tk. 139.21 lac. Details of imported dyeing-Printing-Finishing machinery are at Annex – III/C.

Common Facility Machine :

LOCAL MACHINERY AND EQUIPMENT :

PROCESS TECHNOLOGY OF WEAVING :

Modern weaving process has developed economically in favour of high speed motion to achieve higher production and quality of product. The proposal comprises of 100 nos. latest modern shuttleless Air Jet loom. Shuttleless Air Jet looms are in operation in our country.

The increased speed significant energy saving, labour saving, less maintenance cost, noise reduction are main feature of shuttleless Air Jet loom. Air Jet looms has provide its higher insertion rate unmatched versatility, operating reliability and future oriented automation. It satisfies the requirement of light, medium and heavy weight fabric as well as fashion oriented fabrics.

Considering the above features, Air Jet weaving machine have been selected for the project. The technology involved in modern weaving is available in the country. It is expected that no problem in this regards will be faced by the project. However in order to manufacture quality fabrics skilled technical personnel will be recruited by the promoters.

FABRIC MANUFACTURING PROCESS :

The sequential process of fabric manufacturing may be described as follows :

PREPARATORY PROCESS :

WARPING :

When using Air Jet loom, the warp preparation process is particularly important in order to take advantage of the looms high speed. The quality of the warpers beam effects the quality of sizing.

Warping machine must be able to wound weavers beams of uniform yarn tension with minimum yarn breakage and with the capability to adjust the winding tension of each yarn. Beams winding hardness- a device in which the brake and stopping mechanism operate accurately is required. The creel should have a mechanism convenient for changing the cheese/cone tension.

There are different methods of producing warps for the loom. For producing warps of spun yarn & for large scale production – Direct Beaming System’ is used. In the Direct beaming system the yarn is creeled in cone or cheese form and wound on a back-beam, each beam containing, say 1,200 ends. Several back-beams are required for the preparation of a loom beam or weaver’s beam of sizing machine.

SIZING :

A loom’s weavability is largely affected by the quality of the sizing beam. This is significant in high speed looms in particular. A machine equipped with a device automatically control the winding speed, the size squeezing rolled pressure, the size tank temperature and the drying temperature comprehensively and accurately should be adopted. It will enable the mill to manufacture sizing beams of the same hardness while maintaining a constant sizing percentage, yarn tension and degree of drying of the sheet.

Sizing is considered as important stage in the preparation of warp. In the sizing process a set of back-beam are creeled behind the machine and the sheet of yarn passes through a specially mixed paste that has film forming properties on drying. The yarns are dried on the hot cylinders and the sized yarns are wound on to the “LOOM BEAM” at the head stock of the sizing machine. In ‘Pure Sizing, reduce the incidence of warp breaks during weaving.

The objective of sizing are :

improving yarn strength,
laying yarn falt,
improving yarn flexibility,
Improve yarn smooth and

– Improve attraction resistance.

WEFT PREPARATION :

Modern loom like Air Jet loom do not use pirns and shuttles, but the weft – supply must be suitable for the loom. The cones or cheese of required size and shape is placed in creel and the weft passes through precision winding which infact will be used as the weft supply package.

WARP TYING AND REACHING – IN :

The sized warp yarn for weaving – passess alternately or as per design through the heald frames and then through the reed. After tying & Reaching-in the beam is ready for weaving.

WEAVING :

The loom is the most important machine in the weaving department. There are different types of shuttleless weaving machine generally used in modern weaving field Considering particular advantages, the project will envisages Air Jet and weaving system. The warp beam is placed behind the loom and the yarns are drawn through backguided rollers followed by proper mounting of heald shafts, reed, etc.

The weft yarn is drawn from the storage package (Cone) and placed on a pre-winder fitted on outer end of the machine. The Air Jet weaving is the simplest concept in which the means of carrying the weft through the shed by compressed air. Infact shedding, picking and beaming mechanism are involved in weaving.

The cloth is woven by the interlacement of warp and the filling weft, it is finally wound to the cloth roller. There are two other essential mechanism (a) Warp let off motion and (b) cloth take-up motion.

The cloth thus manufactured after inspection and measuring will be white finished /Dyed/printed.

Grey fabric is the cloth just after loom state physical appearance is from off-white to creamish and feel of falorics is harsh. After loom state fabric is taken to Mending department where on tables cloth is spread and visible/mandible weaving defects are mended.

The cloth is passed through Gas singeing machine for removing the projected fibres from the surface of the cloth and given a smooth surface. The sized material is removed from the cloth in the desizing bath followed by through washing. The cloth with clean surface is scoured, bleached, washed and dried in the scouring and bleaching range in a continuous process. The aqueous solution of soda-ash and caustic is used for scouring purpose.

The aim of Bleaching is destroy grey coloured to remove coloured impurities from the fabric. By bleaching white and clean fabric is produced which is suitable for dyeing/Printing.

DYING :

Fabric after stentering is ready for Dyeing. The unit will use pad steam continuous dyeing machine ; with this type of dyeing machine high value added uniform sheaded dyeing can be done. This machine is suitable for dyeing 100% cotton & blended fabric. It is a complete dyeing machine for cotton fabric.

PRINTING :

The fabric after bleaching-scouring will be stentered by stentering machine. Main function of stenter is (a) Weft Straightning, (b) Width adjust & (c) Heat setting. Fabric is then ready for printing by Modern Rotary screen printing machine. The paste of the dye stuff will be prepared in the colour kitchen as per pre-selected colour of the design. This colour pastes will be fed to the cylindrical screens automatically where it will be printed by the movement of magnetic roll rod over the screen surface.

Each screens functions for its corresponding colour and the number of screens depends on the number of colours required for the design to be printed. During printing process, the endless blanket underneath the fabric will move continuously conveying the fabric over it at a predetermined speed.

The printing process will be folowed by fixing/developing by a drying system which prevents possibilities of migration of dyes. The printed fabrics will pass through the loop steamer under controlled steam pressure and temperature depending on the type of dyestuff used for printing. The screen printing machine is provided with unique printing process in order to produce good quality products at the highest productivity rate.

FINISHING :

In the finishing section the cloth passes through padding and stentering range for starch finishing. The cloth are calendered or passed through special mechanical treatment namely anti shrinking calendering. The heat stentering machine is used for performing dry heat treatment of blended or mixed fabrics or thermopastic fabrics and also used for width setting/thermofixing of disperse dyes or florescent dyes. The fabrics to be processed will be passed through stentering machine upto two times or more depending on the types of fabrics and also finishing requirement.

Stentering machine may also be used for dyeing of fabrics by providing dyes/chemicals in the through followed by a squeezing mangles which after words passes through the chambers. The source of heating will be provided by gas. Suitable control system will help to provide heat correctly in each chamber. Pin/clip /combined chain system will be adopted for versatile use of fabrics. The cooling system provided at the exist will give instantenous cooling effect to the fabrics which will after ward be delivered in the form of plaiting or batching.

The inspecting machine feed back the result of product inspections to maintain quality. It will be equipped with a see – through lamp to facilitate inspection for defects. It will also equipped with a counter to measure length while inspecting cloth.

The finished cloth will be shipped to own Cutting & Sewing unit for cutting and sewing into Bed Sheet/Cover.

DYEING-PRINTING-FINISHING OF 100%

CUTTING ANS SEWING :

The technology involved in cutting & sewing is fairly simple and consists of designing, cutting, sewing, button hole & button fixing, ironing etc. Fabric is folded and placed on the table and cut as per desired measurement by electric cutter. Then stitched by sewing machine to form complete Bed Sheet/cover. Button hole are made by button hole machine and stitching of the same are completed by button stitching machine. The Bed Sheet/Cover are then ironed, packed and made ready for shipment.

HUMIDIFICATION PLANT WITH CHILLAR FOR WEAVING :

For achieving optimum opportunity i.e. good weaveability with the high speed Airjet loom controlled humidity and temperature condition is essential. For weaving project recommended parameter is 75% ±3 percent relative humidity and 25^oC – 28^oC temperature.

INSTALLATION, COMMISSIONING AND TRIAL RUN :

Erection of weaving, dyeing-finishing Garments and utility machinery shall be done in a systematic manner. The machinery will be installed, commissioned and trial run under the supervision of foreign erectors to be deputed by the machinery suppliers. They will be assisted by a team of local technicians and skilled workers. The sponsors have to pay for food, lodging, transport, air tickets and pocket money to the foreign erectors deputed by the machinery suppliers.

An estimated provision of Tk. 50.00 lac has been made to meet the expenses in local and foreign currency for payment to the foreign erectors and local technicians. Foreign technicians will also trained up local technical personnel for smooth operation and maintenance of the plant.

POLLUTION CONTROL AND WASTE DISPOSAL :

The Government of Bangladesh set up its first environment-related regulations in 1991, which were called the “Environmental Quality Standards (EQS) for Bangladesh.

Textile industries generally generate pollulants, especially dyeing mills from which large quantities of coloured water are discharged. It is also necessary to pay some attention to air pollution from exhaust gas and power generation. Taking these two factors i.e. industrial effluent and exhaust gas the environmental impact on the surrounding areas was considered, assuming that this project will be established at Bhaluka, Mymensingh. The environmental impact will be minimal, because the area is less developed and human habitation is still limited.

INDUSTRIAL EFFLUENT :

Approximately 2,50,000 litres/day effluent would be discharged from the mill – following system will be adopted for effluent treatment –

– biological oxidation treatment &

– Coagulation reaction treatment for decolouring.

The flow process chart & views of the effluent treatment plant can be seen below :

PROCSS FLOW CHART FOR EFFLUENT TREATMENT

Neutralizing Tank

Aeration Tank
Aerator
Setting Tank
Sedimentation Tank
Dry Bed

For set up of effluent treatment plant an amount of US$ 150,300 and local cost of Tk. 300.00 lac has been estimated.

Exhaust Gas, Natural gas shall be used as a heat source for the plant. The composition of natural gas is as follows :

Methane	94.10%
Ethane	3.65%
Propane	0.74%
Iso-Butane	0.22%
N-Butane	0.10%
Others	1.19%
Total	100.00%

This natural gas which forms carbon dioxide (CO₂) and Water (H₂O) through combustion – is a clean fuel which does not generate pollulants.

RAW MATERIALS AND SUPPLIES :

WEAVING UNIT :

The materials for the weaving department is Cotton/Blended yarn. In addition sizing materials will be used for sizing the yarns in weaving department. The requirement of yarn and sizing materials have been shown bellow :

Items	Unit	Quantity
a) 80s Cotton Yarn	Kg.	16,87,000
b) Modified Starch	Kg.	90,390
c) PVA/NACMC	Kg.	30,150
d) Size CA	Kg.	3,015
e) Wax	Kg.	1,506

Grey fabric :

Items of Product	Specification	Capacity in Yds
a) Grey fabric	60×60/185×125-116	64,58,400
b) Grey Fabric	40×40/130×80–116”	28,56,600
c) Grey Fabric	30×30/76×68–116”	172,50,000

SCOURING-BLEACHING-DYEING-PRINTING AND FINISHING UNIT :

The basic raw materials for this unit is the Grey cloth that will be produced in the weaving unit of this project. The unit will require a considerable quantity of dyes, chemicals and auxiliaries which will be procured from local sources.

The annual requirement of dyes, chemicals has been worked out based on standard/average rate of consumption and are as follows:

Dyestuffs :

Items	Unit	Quantity
1.Pigments dyestuffs	Kg.	131,500
2. Reactive Dye	Kg.	159,860

Chemicals :

Items

Unit

Quantity

01. Caustic Soda

02. Soda Ash

03. Hydrogen per oxide

04. Urea

05. Desizer-S

06. Wetting Agent

07. Thickener

08. Binder

09. Fixing agent

10. Stabilizer

11. Levelling Agent

12. Sequesting agent

13. Detergent

14. Brightening Agent

15. Softner

16. Acetic acid

17. Finishing Agent

18. Antifoaming Agent

19. Emulsifier

20. Common Salt

21. Peroxide Killer

Kg.

10,12,000

4,26,000

43,125

1,92,870

1,81,650

57,500

5,21,750

20,000

42,600

40,000

85,215

2,10,430

42,600

1,70,430

5,00,000

85,214

43,125

65,750

2,39,790

1,70,430

Design, Screen and Engineering Materials :

Items

Unit

Quantity

1. Screen

2. Endrings

3. Chemicals

4. Squeeze Blade

LS.

Tk. 120.00 lac

Garments :

Items

Unit

Quantity

1. Printed Poly Bag

2. Cartoon

3. Sewing Thread

4. Button

5. Band sticker, Label, Hang tag,

Gum tape, PP Strip, Metal Clip,

Other Packing Material, etc.

Pcs

Cone

Gross

LS.

97,45,000

3,24,830

200,000

75,200

Tk. 10.00 lac

ESSENTIAL INPUTS AND UTILITIES :

COMPRESSOR AIR EQUIPMENT :

The compressed air properties and volume required is each process. Total compressed air requirement will be about 172 m3/min. The main piping for compressed air will be laid in an underground duct, branched and brought up to each machine. As such central air compressor unit with a special device is recommended to ensure the constant supply of water and oil free compressed air for the project.

STEAM GENERATION EQUIPMENT :

The sizer in the weaving mill and each place of production equipment in the Desizing, Scouring-Bleaching, dyeing and finishing require steam. So steam boiler will be installed. The project will require about 10,000 kg. of steam per hour.

WATER SUPPLY :

A large amount of industrial water will be required by the weaving, dyeing and finishing mill and for human consumption. There will no problem with either quality or the quantity of the underground water sampled in Bhaluka, Mymensingh region. To secure the required water deep tube well along with pump and motor will be provided for the project, the cost of which has been incorporated with local machinery cost. The project will require one overhead water tank and one underground water reservoir – cost of which have incorporated with civil works.

POWER :

The electrical energy required for the project has been estimated as under :

ELECTRICAL LOAD

Department	Demand
Pre-paratory & Weaving with humidification plant and chillar & Air Compressor	1850 kw
Dyeing, Printing and Finishing & Related Machine	1650 kw
Cutting & Sewing Section	150 kw
Lighting, Fan Residence and other Misc. load/Utility	300 Kw
Total	3950 Kw

The power requirement as above has been estimated on the basis of full capacity utilization and maximum utilization will be around 75% of total requirement, which will be made available from 5 sets of continuous operated gas generation of 900 kw each. Besides necessary sub-station equipment for the entire plant i.e. LT switchgear PFI plant & Distribution board will be procured. The gas engine needs to be stopped as planned for 4-5 hours regularly (about every three month) for inspection and maintenance of its plug..

LIGHTING EQUIPMENT :

For lighting weaving, dyeing-printing & finishing and garments section fluorescent lights with reflectors (40wx1-2 tubes) will be attached directly to the ceiling through Bas bar trunking ; similarly power supply bas bar trunking will be used. Cost of Bas bar has been estimated at US$ 187,550. Necessary Bas bar trunking equipment will be imported.

NATURAL GAS :

The energy is natural gas used for power generation, Steam generation and as the heat medium. The natural has is to be supplied from Petro Bangla. Natural gas is sent from Titas or Bakrabad gas field to Bhaluka, Mymensingh through a pipeline. These is no problem at all in quantity regarding the amount to be used in the new project.

The natural gas will be taken to the project through the branch pipe from the nearest main pipeline and supplied to the gas engine, to the boiler and other machine via the pressure reducing unit.

FUEL AND LUBRICANT :

The project will require the following fuel and lubricants annually :

Item	Purpose of use	Annual requirement
Kerosene	For Cleaning	2,000 litre
Diesel	For vehicles	25,000 Litre
Grease	For Lubricants	2,200 Kg.
Lubricating Oil	For Generator	Tk. 72.00 lac
Gas	For Boiler & Processing machine	66,25,000 m3
Gas	For Generator	79,71,700 m3

TRANSPORTATION :

The project will have transportation for carrying raw materials & finished goods and for carrying of officials. The project will require four covered van, two micro bus, three pick up and six cars. Cost of vehicles to be procured locally is estimated at Tk. 237.00 lac.

FIRE FIGHTING EQUIPMENT :

The Textile Mill, which handles large amount of cotton products, requires fire fighting equipment. The weaving, dyeing-finishing, garments and other adjacent buildings are to be equipped with outdoor hydrants, indoor hydrants, fire-extinguisher and water buckets as fire fighting equipment.

The fire hydrants have their water source in the water reservoir. The hydrant pump is driven by a motor and diesel engine. Fire extinguisher are provided in the places required in the mill for early fire fighting. Water buckets are provided in places where there is much cotton dust. To provide fire fighting equipment and first aid box an amount of Tk. 25.00 lac has been estimated and included with local machinery cost.

AIR CONDITIONING/HUMIDIFICATION EQUIPMENT :

For a textile mill it is very important to adjust the temperature and humidity in the production process. One of the most important objectives of air conditioning is to maintain a constant relative humidity in weaving mills. Improvement in the working environment by air conditioning is another important reason.

The temperature and humidity required in weaving process are shown below :

– Warper room max 30^oC RH 64%

– Air Jet Loom max 28^oC RH 75%±3

– Inspecting room max 31^oC RH 60%±3

CHILLING EQUIPMENT :

To produce the chilled water to be used in the A/C of the weaving mills, a chiller will be installed. While it is planned to use adoption of an absorption chiller utilizing the power generation equipment waste heat.

OTHER ASSETS :

The project will require office furniture, fixture, telephone, Fax, Computer, window type Office A/C, etc., cost of which has been estimated at Tk. 100.00 lac.

STORES & SPARES :

The project will require stores and spares for the machinery and equipment @1.0%, 1.50%, 2.0%, of its cost for 2^nd, 3^rd, 4^th & 5^th years of operation respectively.

REPAIR AND MAINTENANCE :

The annual requirement of repair and maintenance for the machinery has been estimated at 0.5%, 1.0%, 1.5% and 2.0% of its cost for the 1^st, 2^nd, 3^rd & 4^th year of operation respectively. The repair and maintenance of building has been estimated @0.5% of its cost each year.

TECHNICAL, ADMINISTRATIVE PERSONNEL & LABOURERS :

The requirement of technical and other personnel based on three shifts operation is as follows :

PREPARATORY AND WEAVING UNIT :

i Technical :

Name of Post

No. of Post

01. Weaving Master (Manager)

02. Expert for Air Jet Loom

03. Asstt. Master for Preparatory & Weaving

04. Maintenance Engineer

05. Asstt. Maintenance Engineer

06. Shift Supervisor

07. Electrician

08. Foreman

Total

ii : Labour :

Name of Post

No. of Post

01. Loom Operator and Sizing Machine Operator

02. Skilled/Semi-Skilled Labour

125

Total

205

DYEING, PRINTING & FINISHING :

i : Technical :

Name of Post

No. of Post

01. Dyeing/Printing Master

02. Asstt. Dyeing/Printing Master

03. Designer

04. Maintenance Engineer

05. Asstt. Maintenance Engineer

06. Shift Supervisor

07. Foreman/Electrician

Total

ii : Labour :

Name of Post

No. of Post

01. Skilled Labour

02. Semi-Skilled Labour

Total

115

CUTTING & SEWING :

Name of Post

No. of Post

01. Skilled Labour

02. Semi-Skilled Labour

220

Total

270

QUALITY CONTROL :

Name of Post

No. of Post

01. Manager Quality Control

02. Lab. Assistant

03. Lab. Boy

Total

BOILER & POWER HOUSE :

Name of Post

No. of Post

01. Operation & Maintenance Engineer

02. Foreman

03. Shift Supervisor

04. Skilled Worker

Total

ADMINISTRATIVE :

Name of post

No. of Post

01. General Manager

02. Manager (Admin. & Personnel)

03. Manager (Marketing)

04. Chief Accountant

05. Manager (Commercial)

06. Store Officer

07. Security Officer

08. Asstt. Accounts Officer

09. P. A. to M. D.

10. Company Secretary

11. Store Keeper

12. Accounts Clerk

13. Computer Operator

14. Driver

15. Security Guard

16. Time Keeper

17. Peon

18. Sweeper

Total : 31 + 205 + 26 + 115 + 270 + 7 + 14 + 64 = 732 Nos.

IMPLEMENTATION SCHEDULE :

It is expected that the unit will put in to commercial operation within 18 months from the date of starting civil works or 12 months from the date of L/C opening.

Market Aspects

Introduction :

Textile industry is the topmost industrial sub-sector in Bangladesh as it contributes around 75% of export earnings and generates employment for over four million people. The sub-sector meets the second basic need for clothing of the country and alone contributes around 50% of the industrial value addition. But it showed rapid growth in the country over the last two decades due to over reliance on imported raw materials in the absence of appropriate support from backward linkage industry. Bed Cover/Sheet is a portion of export oriented fabrics.

The Proposal :
Importance of the Proposed Industry :

The output to be produced by the industry is a significant part of textile sector in consideration of revenue earning and value addition. So, the importance of setting up of this industry is directly related with the textile sector of the country and importance of the project could understand through the importance of the RMG sector of the country. The export oriented industries of the country could be divided into two broad categories such as (a) Primary Products and (b) Manufacturing products. In the primary products there are five agricultural crops such as Jute, Tea, Frozenfood, Agri Products and other primary products.

On the other hands Manufacturing products vis-a-viz Industrial products includes Jute goods, leather, READYMADE GARMENTS, CHEMICAL PRODUCTS, PAPERS, HANDICRAFTS, Engineering products and industrial products. It deserves to mention here that apart of Txtile export, contribution of all the products is extremely poor which was even less than 10% in 2003-2004. As a result, in export earning contribution of Textile sector was very significant which is over 90% in the same year. Details contribution of Textile sector export earning may be seen in Table – I.

Table – I /a

Analysis of Textile Sector Contribution

In Export Earning of Bangladesh

Year	Total Export Earning	Total Textile Export	Growth (%) RMG	Textile Contribution to the Total export earnings (%)
1992-1993	2382.89	1445.02	–	60.64%
1993-1994	2533.90	1556.79	07.67%	61.40%
1994-1995	3472.56	2228.35	43.23%	61.17%
1995-1996	3884.42	2547.13	14.31%	65.61%
1996-1997	4427.28	3001.25	17.83%	67.93%
1997-1998	5172.20	3781.94	26.01%	73.28%
1998-1999	5324.86	4019.98	06.29%	75.67%
1999-2000	5752.20	4353.00	07.65%	69.89%
2000-2001	6467.30	4859.83	20.09%	75.14%
2001-2002	5986.00	4660.00	(04.08)%	78.85%
2002-2003	6545.00	4584.00	(01.70)%	70.00%
2003-2004	5421.00	4912.00	07.15%	90.61%

It may be seen from the above Table that the contribution of Textile in the total export-earning of the country has been increasing regularly and significantly. In the 1992-1993, the share of textile export was 60.64% in the total export earning which increased continuously on a significant rate and reached to 90.61% in the year 2003-2004. This means that in the previous year total earning from export was 5421.00 million US$ of which 4912.00 million US$ export earning came from Textile export. So it is obvious that in the economic development of the country, contribution of no other sector could be compared with that of the Textile export earning which includes, Bed sheet/Bed cover along with other Textile items.

/a : export Promotion Bureau

Export Demand Analysis :

It has been gathered from the Foreign Trade Statistics, a publication of the BBS, that Bed sheet and Bed covers are being exported from Bangladesh under various heads such as :

a) Bed linen Knitted or Crocheted of Cotton ;
b) Bed linen handloom, Printed of cotton ;
c) Bed cover Cotton, printed not knit or crochet ;
d) Bed linen handloom, cotton and other ;
e) Bed Linen Mill Made, Others ;
f) Bed Cover made of Cotton not knitted or crochet & other ; and
g) Bed Spread knitted or crochet of cotton ;

As per the above identification, Bed cover are being exported from Bangladesh under a wide range of titles. The export earning from bed cover exported from Bangladesh during the period 1995-1996 to 2002-2003 has been depicted in Table – II.

Table – II /b

Foreign Exchange Earning

from Bed Cover Export

Year	Export Earning (Fig. In million Tk.)	Growth (%)
1995-1996	381.00	–
1996-1997	401.00	5.25
1997-1998	983.00	145.14
1998-1999	1311.00	33.37
1999-2000	1829.00	39.51
2000-2001	3983.00	117.77
2001-2002	10003.89	151.16
2002-2003	111373.93	1013.31
Average		215.07

As per Table – II, the average export growth of bed cover has been increased tremendously regularly. Even the growth of average export value of bed cover could be termed as excellent. So, from the excellent growth rate as well as excellent export value, it may be presumed that in near future the performance of export of bed cover and bed sheet might continuously be increased in the near future.

Export Earning sources from 1995-1996 to 2000-2001 are collected from the Publications of Bangladesh Bureau of Statistics viz-a-viz Foreign Trade Statistics.

While the same from 2000-2002 to 2002-2003 are collected from the publication of Bangladesh Bank viz-a-viz “Export Receipts”.

/b Foreign Trade Statistics, a publication of BBS and “Export Receipts”

a publication of Bangladesh bank.

It is anticipated that there remain huge scope to enhance Bangladeshi Bed cover/Sheet export market to European countries, Canada and America. In the year 2000-2001, Bangladesh exported 26% of total Bed Cover in UK following by 15% to Federal Germany. Bangladesh also exports bed cover to USA, Belgium, Canada, France, Australia, Sweden and Malaysia. Some of renowned Buyers of Bed Cover/Sheets are as under :

AMERICA MARKET	CANADA	SWEDEN
WALMART	SEARS (CANADA)	IKEA
KMART	BAY HARTSON, ETC
JC PANEY
SEARS (USA), ETC.

Projection of Export Demand :

The export demand for Bangladesh Bed cover and Bed sheet depends on demand and supply of the items. In the absence of required data relating to export demand for and supply of bed covers in the international market, we could depend on the other factors for projecting the future demand of the product. In such case, we can examine the export trend of the past five years. So, it would not be Unreasonable to project the future export demand on the basis of past growth rate of export. The past growth rate of bed cover exported from Bangladesh could be analysed on the basis of data furnished in Table – III in which year wise export of bed covers is furnished in quantitative term :

Table – III /a

Past Performance of Bed Cover Export

Year	Export in Quantity (Dozen)	Export growth in %
1995-1996	1083	–
1996-1997	12310	1037
1997-1998	42130	242
1998-1999	112664	167
1999-2000	292315	159
2000-2001	1308802	348
	Average	391

The above increase was mainly due to expansion of existing units and setting up of New units.

/a Foreign Trade Statistics of Bangladesh – 2000-2001.

It may be seen from the above Table – III that the export of bed from Bangladesh was only 1083 dozen in 1995-1996 which then regularly increased at a proportional increasing rate and reached to 1,308,802 dozen in the year 2000-2001. The average growth of bed Cover/Sheet export during this period was excellent which was over 390%.

The export growth indicates that in the future, the export of bed sheet from Bangladesh is very bright. However, to be in the conservative side we may project the future demand on the basis of 20% increase. Considering this, the future demand for bed cover/Sheet from Bangladesh has been estimated at 2,713,932 dozen is 2004-2005 which is expected to go up at 6,753,131 in 2005-2010. Details of future projection of bed cover export from Bangladesh is furnished in table – IV.

Table – IV

Future Projection of Bed Cover Export

Year	Projected Demand (Dozen)
2004-2005	27,13,932
2005-2006	32,56,718
2006-2007	39,08,061
2007-2008	46,89,674
2008-2009	56,27,609
2009-2010	67,53,131

Supply Analysis :

In the weaving sub-sector of Bangladesh, out of 4.98 lac hand looms, 3.10 lac hand looms are in operation i.e. 62% hand looms are engaged with production. On the other hand, in the specialized power loom sector more than 100,000. Some of the existing main Bed Cover/Sheet manufacturers and their daily (approx.) production capacity are as under :

Name of the Unit	Daily Production Capacity
a) Jaber & Zubair	250,000 yds/day
b) Altex	180,000 yds/day
c) Apex Weaving	120,000 yds/day
d) Sad Musa	100,000 yds/day
c) Dacca Dyeing	120,000 yds/day

For one pc Bed sheet/cover usually 3.25 yards fabric is required.

Capacity under development :

Name of the Unit	Daily Production Capacity
a) Sattar Textile	120,000 yds/day
b) ACS Textile	120,000 yds/day
c) Litun Fabrics	80,000 yds/day
d) H. H. Textile	80,000 yds/day
c) Auto Bangladesh Ltd.	120,000 yds/day

It is very important to mention here that there are some organization who infact involve in Bed Cover/Sheet export, but have no any industry. Usually after procuring the order they weave the fabric from different weaving unit and dye/print the same from different dyeing finishing units. After cutting, sewing & packing they export the Bed cover/sheet. These type of export volume could not be ascertained and as such not considered/mentioned in the report.

08.01 Marketing Strategies :

The sponsors will adopt appropriate marketing strategies with regard to product quality, pricing, promotion and distribution. It may be mentioned here that marketing strategies would be changed in the years to come keeping track with the changed circumstances. The sponsors will keep constant watch on the export market both at home and abroad and adopt appropriate market strategies to boost up quantity of exports. However, the sponsors will procure direct orders from foreign buyers and their representatives at Dhaka promoting for Bed sheet/Bed Cover. Besides, attempt should also be made by the sponsors to procure export orders, through different buying houses operating in Bangladesh.

08.02 Product Quality :

The project will be equipped with modern and sophisticated machinery of Europe origin. The sponsors will recruit experienced and skilled personnel for ensuring quality Bed sheet/Bed cover. Moreover, they have already designed to developed a standard acceptable to the customers of European, USA & Canada market.

08.03 Product Pricing :

Next to quality, product pricing plays an important role in the successful marketing of the product. The product must be competitive price-wise along with the proper maintenance of quality. Determination of output prices depends, among others, on the raw materials pricing. While fixing the prices, the existing market price structure of the home country as well as the foreign countries should be taken into consideration so that the price so fixed must be competitive and acceptable to the buyers. The sponsors should also be remain vigilant to adjust/change the price structure with the changing price level.

08.04 Raw Material Pricing :

The project will be based on imported/local raw materials. The regular flow of these raw materials has to be maintained. Details price and calculation of raw material has been shown in Annexure.

08.04 Selling Arrangement :

Export of garments and fabrics are normally made through buying houses. The exporters market their products through appointed agents in the different countries. They also apply direct contact with the international buyers through personal visit or correspondence over telephone, telex, fax or by participation in the international fairs, exhibitions, etc.

The sponsors of the proposed project will follow the existing marketing system and also try to obtain job orders from the buyers directly. However, the sponsor will arrange direct orders from foreign buyers or their representatives at Dhaka. Besides, attempt will also be made by the sponsors to procure export orders through different buying houses operating in Bangladesh.

08.05 Promotional Work :

The sponsors will be required to adopt the following promotional strategies to promote their sale of products:

– Letter/Telex/Fax to foreign buyers.

– Distribution of catalogue/brochures/product specifications to the users.

– Personal visit abroad and liason with the foreign buyers.

– Participation in various fairs of international standard and

– Maintain direct liason with the export-oriented using units of the country.

The sponsors of the project are proven management and financially capable. Since the sponsors are financially sound and solvent, as such all the above requirements for promotion or their product into the market will be adopted by the project management to capture the market.

Locational Advantage :

The project is going to be located at Habir Bari, Seed Store Bazar, Bhaluka, Mymensingh. The spot is well connected by road and infrastructural facilities like, water, power, gas, transport etc. These will facilitates the project for inflow of raw materials and marketing of finished products smoothly. Therefore, the project is suitable for this project.

SWOT Analysis :
Strengths :
i) The competitive strength of a firm or a country in the market depends on its specific comparative advantages over the competitors. Bangladesh have distinct comparative advantage of possessing cheap but usable labour. The abundant supply of comparatively cheap labour in our country has made the textile sector to be the number one export-earning sector of the country. This has in turn helped to explore wider market of the spinning and weaving sub-sector in the country.
ii) Bangladesh is the first and only country who eliminated child labour from the textile industry in a planned manner within a very short time. Presently, the program for successful elimination of child labour from our textile has been followed by other developing countries as a model. Thus has no doubt in increasing the acceptability of our textile items to the importing countries.
Weakness :
The major weakness of Textile in our country is that these industries are based on external supply of main raw materials i.e. cotton, dyes & chemicals. Absolute dependence on external sources has made this sector extremely dependable. On the other hand, the competitors like China, India, Pakistan and other countries have their local sources of cotton, fabrics, dyes and chemicals as such their textile sectors are in a good position to produce good quality yarn and fabrics at cheaper cost, which in turn, help weaving and textile industries to flourish with the brighter export potential.
ii) Bangladesh has not yet been able to diversify its products in the world market, So far, Bangladesh has been able to export very limited categories of products and has concentrated only to a few market such as USA, Canada, EU, etc. Therefore, our backward linkage Industries of Textile has not been developed to the desired extent.
Opportunities :
i) Cost Reduction :

Cost reduction strategy has been adopted by assigning higher priority to establish backward linkage Industries. The establishment of backward linkage industries i.e. Spinning and weaving mills will help to reduce production cost of export-oriented Textile products and thus will increase the value addition in this sector.

ii) Product Diversification :

Most of the competitors of Bangladesh in the world market of Textile exports have much broader list of Textile products. To ensure good market-share in the world market. Bangladesh Exporters are trying to diversify their export items in line with other competitors. BGMEA has already established an Institute of fashion & technology to help introduce some new Textile items to our local Exporters.

iii) Market Diversification :

Bangladesh Exporters are confirmed within the market of USA, EU and Canada. To survive on the competitive market, attempts have already been made to explore some other markets in Europe & rest of the world. This will in turn help to create more demand for fabrics leading to growing market for this sub-sector.

Threats :
The LDC’s share of world trade has fallen from 0.7 percent in 1990 to 0.40 percent in 1999. The MultiFibre Agreement (MFA)has already been phased out. Therefore, the ready-made Spinning and weaving Industries of Bangladesh will naturally face challenges in terms of globalization and trade liberalization. Textile Sector of Bangladesh might face stiff competition with China, Pakistan and the South East Asian countries, where textile sectors are more equipped with modern technology and strong raw materials base. Due to lack of strong base, Bangladeshi manufacturers of textile products may loose their competitive advantage in terms of price with other Asian countries.

Economic Aspects

EMPLOYMENT OPPORTUNITY :

The project will require a total number of 732 persons of various categories. Cost per employment to be generated works out to Taka 32.78 lac.

CONTRIBUTION TO GDP :

On completion, the project will add Tk. 10701.62 lac to the Gross Domestic Product of the country per annum as detailed below :

(Taka in 000)

A: Sales (4th year) 4138791

B: Less: Inter-firm transaction :

Raw materials 2940425

Stores and spares 31515

Water, power and fuel 57645

Repair and maintenance 25145

Rent, tax and insurance 11999

Postage, telephone, etc 375

Stationery and printing 225

Travelling and conveyance 375

Others 925

———

3068629

———

Contribution to GDP (A-B) : 1070162

=========

Financial Aspects

COST OF THE PROJECT :

The total cost of the project has been estimated at Tk. 23997.88 lac. Cost of the project and means of Finance are as follows :

(Tk. in ‘000’)

Item

F/C

L/C

Total

Land

Building

Plant & Machinery

Local Machinery

Erection & Installation

Vehicles

Furniture, Fixture & Equipment

Consultant’s Fee

Pre-Operating Expenses

Contingency

Interest during Construction

1410239 0

205959

301790

70512

90000

25050

23700

10000

4000

16500

74038

168000

205959

301790

1480751

90000

25050

23700

10000

4000

16500

74038

168000

Total Cost of the Project

1410239

989549

2399788

Means of Finance :

The above estimated cost of the project is proposed to be financed as under :

(Taka in ‘000’)

	F/C	L/C	Total
Debenture : Debenture Financing Interest during construction	1400000 0	0 168000	1400000 168000
Total	1400000	168000	1568000
Sponsor’s Equity	10239	821549	831788
Total debenture & Equity	1410239	989549	2399788

Equity Capital :

The implementation of the project will involve a total capital outlay of Taka 23997.88 lac of which the promoters participation in equity has been assessed at Tk.

8317.88 lac. The promoters equity participation will be raised in the form of paid-up capital.

Debt-equity ratio :

On completion of the project the debt-equity ratio will be 65 : 35.

Fixed Assets Coverage Ratio :

The fixed assets coverage to debenture will be 1.59 times on completion of the project.

Financial Evaluation :

The assumptions underlying the earning forecast are as follows :

a) The project will operate for 345 days in a year on three shifts operation basis of 8 hours each per day;
b) The capacity build-up has been assumed to be achieved gradually at the rate of 65%, 70%, 75%, 80% and 80% in the 1st, 2nd, 3rd, 4th and 5th years and remaining years of operation ;
c) Price of raw materials and finished goods have been assumed to remain constant throughout the projected years of operation with the assumption that any increase in the price of raw materials will be off set by the corresponding increase in the price of finished goods ;
d) Sales prices of the proposed products have been assumed on the basis of FOB price of such product;
e) Stock of work-in-process has been considered for 3 days ;
f) Stock of finished goods has been estimated for 10 days ;
g) Annual increment of 5% has been considered for calculation of wages and salaries and bonus of two months basic pay also been provided ;
h) Since, the project will enjoy tax-holiday so, tax & duties have not been considered in financial forecasting.
i) Depreciation has been charged on straight line methods at the following rates:

– Building bed sheet fabric

– 5%

– Machinery – 10%

– Other assets – 20%

j) The project will enjoy tax-holiday benefit for 5(five) years. Hence, to avail the tax – holiday, the company will have to purchase Government bond to the extent of 40% of its net profit.
k) Dividend is expected to be declared after providing for tax holiday reserve and tax. Conditions for dividend payment are :

– Positive Income for the year

– Adequate cash balance

– Compliance with lenders’ financial covenants ; and

l) Economic life of the project has been assumed to be 10 (ten) years without any major replacement.

A Project Proposal of Bed Coversheet Manufacturing Textile

Bed Coversheet Manufacturing Textile

WEAVING :

DYEING-PRINTING-FINISHING OF 100%

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A Project Proposal of Bed Coversheet Manufacturing Textile

Bed Coversheet Manufacturing Textile

WEAVING :

DYEING-PRINTING-FINISHING OF 100%

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