How to Start Spinning Mill Business - Entrepreneur India
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Transcript of How to Start Spinning Mill Business - Entrepreneur India
A spinning mill is an industrial manufacturing facility
which takes in raw material and converts it into
finished products. The term spinning mill, also
known as textile mills, refers to factories that
produce spun yarn. These yarns are used for sewing
and knitting garments, but they can also be
manufactured into other products including carpets,
ropes and twine.
Introduction
Some of these yarns are also spun from synthetic
fibres rather than natural ones.
Yarn produced by a spinning mill often goes through
additional processes before being sold to consumers.
Often times it is dyed or otherwise processed,
packaged or labeled before hitting store shelves.
Visit this Page for More Information: Start a Business in
Textile Processing Industry
In many cases, spinning mills are part of larger
businesses that buy textiles from a variety of
sources around the world; different types of fibre
might originate from a number of different
countries depending on what is available at any
given time and price point. Modern spinning mills
often create their own dye formulas based on
customer needs.
Related Project Report: Rising Demand in Spinning Mill
of Starting a Spinning Mill Business
A Step-by-Step Guide: Starting a spinning mill
business from scratch, however lucrative it may
seem, is not easy. If you want to pursue such an
enterprise, you need to understand all that goes into
starting a spinning mill. Here’s how: Establish your
business location first and foremost – finding land
and building space with required infrastructure will
require significant investment. Then plan everything
else around it.
Product selection – What product do you wish to
manufacture? At what price point? Who will be your
target customers? This list can go on and on, but one
thing you must do before moving forward is set
yourself clear goals. Start small – Don’t get
overwhelmed by big numbers or grand schemes at
first; start small and work toward achieving greater
success over time.
Read Similar Articles: Textile Industry
Once you have built a strong foundation for your
business, feel free to expand your operations. Keep
your employees happy – Startups often fail due to
inadequate funding, poor management or poor
planning. You don’t want your company to suffer
because of any of these reasons, so pay attention to
details like employee satisfaction as well as overall
company culture at every stage of growth.
Read our Books Here: Textile Spinning, Processing, Natural Fibers, Natural
Dyes, Pigments, Textile Dyes, Pigments, Dye Intermediates, Woollen Spinning,
Weaving, Knitting, Dyeing Technology
Always have a backup plan – Unforeseen
circumstances are bound to happen in business, which
is why you should always prepare for contingencies.
The best way to deal with challenges is to simply face
them head-on instead of trying to escape them
entirely. Be flexible, adaptable and resilient; keep
innovating until you find a solution that works for your
business.
Related Feasibility Study Reports: TEXTILE BLEACHING, DYEING,
SPINNING, WEAVING, PRINTING, FINISHING AND TEXTILE AUXILIARIES
PROJECTS
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Machinery Photographs
SPINNING MACHINERY
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TEXTILE MACHINERY SPARE PARTS
of Starting a Spinning Mill Business
If you have experience in spinning, cotton and
garment production, then going into business as a
spinning mill owner can be rewarding. The start-
up cost of becoming a spinner is low because it’s
not necessary to buy expensive textile machinery.
Instead you will use machines provided by your
customer.
Watch other Informative Videos: Textile Industry
As such there are very few barriers for
launching your own business as long as you
have good credit history and plenty of money
for raw materials. There are two main
businesses related to textiles: garment
production and spinning mills.
Watch other Informative Videos: Textile Industry
Market Outlook
The worldwide textile industry was estimated to be worth USD 1000.3 billion in
2020, and it is forecast to increase at a CAGR of 4.4 percent from 2021 to 2028.
Over the forecast period, the market is likely to be driven by rising demand for
garments from the fashion industry, as well as the rise of e-commerce platforms.
The textile industry is based on three main principles: developing, manufacturing,
and distributing various flexible materials like yarn and clothes.
Knitting, crocheting, weaving, and other methods are commonly employed to
produce a wide range of completed and semi-finished goods in the bedding,
clothing, apparel, medical, and other accessory industries. In the Indian
manufacturing industry, the textile industry is at the top of the food chain. It was
anticipated to contribute 14% to industrial output, 4% to GDP, and around 11% to
India's export revenues.
Furthermore, it employs over 35 million people directly and is the country's
second largest employer. Its direct ties to the rural economy, which rely on fibre
crops, are also strongly tied to a variety of crafts, including as those involving
cotton, wood, and silk, and handlooms, which employ millions of farmers and
craftsmen in rural and semi-urban areas. In a global context, the industry
accounts for 61 percent of loomage, 22 percent of spindleage, 12 percent of
textile fibres and yarn output, and 25 percent of total world cotton yarn trade.
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Key Players
A T L Textiles Ltd.
Aarti International Ltd.
Bhuvaneshwari Textiles Pvt. Ltd.
C T Cotton Yarn Ltd.
Centwin Textile Mills Pvt. Ltd.
Chandra Textiles Ltd.
Project at
a Glance
COST OF PROJECT MEANS OF FINANCE
Particulars Existing Proposed Total Particulars Existing Proposed Total
Land & Site Development Exp. 0.00 225.00 225.00Capital 0.00 2073.67 2073.67
Buildings 0.00 1180.00 1180.00Share Premium 0.00 0.00 0.00
Plant & Machineries 0.00 5881.80 5881.80Other Type Share Capital 0.00 0.00 0.00
Motor Vehicles 0.00 20.00 20.00Reserves & Surplus 0.00 0.00 0.00
Office Automation Equipments 0.00 142.00 142.00Cash Subsidy 0.00 0.00 0.00
Technical Knowhow Fees & Exp. 0.00 50.00 50.00Internal Cash Accruals 0.00 0.00 0.00
Franchise & Other Deposits 0.00 0.00 0.00Long/Medium Term Borrowings 0.00 6221.00 6221.00
Preliminary& Pre-operative Exp 0.00 1.00 1.00Debentures / Bonds 0.00 0.00 0.00
Provision for Contingencies 0.00 578.00 578.00Unsecured Loans/Deposits 0.00 0.00 0.00
Margin Money - Working Capital 0.00 216.87 216.87
TOTAL 0.00 8294.67 8294.67TOTAL 0.00 8294.67 8294.67
Year Annualised Book Value
Debt Dividend Retained Earnings
Payout Probable Market
Price
P/E Ratio
Yield Price/ Book Value
EPS CEPS Per SharePer Share Per Share
No.of Times
` ` ` ` ` % ` % ` %
1-2 5.15 10.49 15.15 24.00 0.00 100.00 5.15 0.00 5.15 1.00 0.00
2-3 7.52 12.09 22.68 18.00 0.00 100.00 7.52 0.00 7.52 1.00 0.00
3-4 9.93 13.84 32.61 12.00 0.00 100.00 9.93 0.00 9.93 1.00 0.00
4-5 12.34 15.69 44.95 6.00 0.00 100.00 12.34 0.00 12.34 1.00 0.00
5-6 14.71 17.59 59.66 0.00 0.00 100.00 14.71 0.00 14.71 1.00 0.00
Year D. S. C. R. Debt / -Deposits
Debt
Equity as-
Equity
Total Net
Worth
Return on Net Worth
Profitability Ratio Assets Turnover
Ratio
Current Ratio
Individual
Cumulative
Overall GPM PBT PAT Net Contribution
P/V Ratio
(Number of times)(Number of
times) % % % % % %
Initial 3.00 3.00
1-2 1.51 1.51 1.58 1.58 1.85 21.42% 14.11% 11.41% 5220.1355.73
% 1.05 0.95
2-3 1.75 1.62 0.79 0.79 1.00 25.84% 20.55% 14.28% 6090.1155.73
% 1.17 1.53
3-4 2.04 1.75 2.05 0.37 0.37 0.53 28.87% 25.12% 16.49% 6960.1355.73
% 1.21 2.20
4-5 2.39 1.89 0.13 0.13 0.26 30.99% 28.44% 18.21% 7830.1455.73
% 1.20 2.96
5-6 2.82 2.05 0.00 0.00 0.11 32.48% 30.88% 19.54% 8700.1655.73
% 1.14 7.31
BEP
BEP - Maximum Utilisation Year 5
Cash BEP (% of Installed Capacity) 37.73%
Total BEP (% of Installed Capacity) 44.59%
IRR, PAYBACK and FACR
Internal Rate of Return .. ( In %age ) 25.79%
Payback Period of the Project is ( In Years ) 2 Years 3 Months
Fixed Assets Coverage Ratio ( No. of times ) 3.724
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Major Queries/Questions Answered in the Report?
1. What is Spinning Mill Industry ?
2. How has the Spinning Mill Industry performed so far and how will it perform in the coming years ?
3. What is the Project Feasibility of Spinning Mill industry?
4. What are the requirements of Working Capital for setting up Spinning Mill plant ?
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5. What is the structure of the Spinning Mill Business and who are thekey/major players ?
6. What is the total project cost for setting up Spinning Mill Business?
7. What are the operating costs for setting up Spinning Mill plant ?
8. What are the machinery and equipment requirements for setting upSpinning Mill plant ?
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9. Who are the Suppliers and Manufacturers of Plant & Machinery forsetting up Spinning Mill plant ?
10. What are the requirements of raw material for setting up SpinningMill plant ?
11. Who are the Suppliers and Manufacturers of Raw materials forsetting up Spinning Mill Business?
12. What is the Manufacturing Process of Spinning Mill?
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13. What is the total size of land required for setting up Spinning Millplant ?
14. What will be the income and expenditures for Spinning Mill Business?
15. What are the Projected Balance Sheets of Spinning Mill plant ?
16. What are the requirement of utilities and overheads for setting upSpinning Mill plant?
17. What is the Built up Area Requirement and cost for setting up SpinningMill Business?
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18. What are the Personnel (Manpower) Requirements for setting upSpinning Mill Business?
19. What are Statistics of Import & Export for Spinning Mill?
20. What is the time required to break-even of Spinning Mill Business?
21.What is the Break-Even Analysis of Spinning Mill plant?
22.What are the Project financials of Spinning Mill Business?
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23. What are the Profitability Ratios of Spinning Mill Project?
24. What is the Sensitivity Analysis-Price/Volume of Spinning Mill plant?
25. What are the Projected Pay-Back Period and IRR of Spinning Millplant?
26. What is the Process Flow Sheet Diagram of Spinning Mill project?
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27. What are the Market Opportunities for setting up Spinning Millplant?
28. What is the Market Study and Assessment for setting up Spinning MillBusiness?
29. What is the Plant Layout for setting up Spinning Mill Business?
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TAGS
#DetailedProjectReport #BusinessIdeas #StartupBusinessIdea
#EntrepreneurIndia #NPCSProjects #BusinessConsultant
#ProjectReport #Startup #BusinessOpportunity #BusinessPlan
#Business #HowtoStartSpinningMillBusiness #SpinningMill
#SpinningMillBusiness #TextileIndustry #TextileSpinning
#SpinningMillProjectReport #BusinessOpportunity
#SpinningMillBusinessPlan #NPCS #EntrepreneurIndia
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Table of Contentsof the
Project Report
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1.PROJECT LOCATION1.DISTRICT PROFILE & GEOTECHNICAL SITE CHARACTERIZATION
1.General2.Location & Geographical Area3.Physical Characteristics4.Rainfall5.Climate6.Administration7.Map8.Demographics9.Economy10.Culture and attitudes11.Transport
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2. Introduction3. Yarn4. Properties & Characteristics
1.Fabric Characteristics2.Fabric Properties
5. Uses and Applications6. B.I.S. Specifications
1.IS 3049: 1965 Vulcanized Fibre Silver Cans for Spinning Mills
2.IS 3079 (1990): Code of Practice for Fire Safety of Industrial Buildings: Cotton Textile Mills [CED 36: Fire Safety]
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7. Market Survey
1.E-Commerce Business to Play Pivotal Role in Textile Fabric Market Growth Dynamics1.Market Upsurge2.Key Market Trends
2.Key Players3.Fabrics
1.Fabrics (All)2.Lead Players3.Market Growth Rates4.Market Structure5.Leading Brands
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4. Blended and Cotton/Non Cotton Fabrics1.Blended Fabrics2.Non-cotton Fabrics3.Cotton Fabrics4.Market Growth Rates
8. Export & Import: All Countries1.Export: All Countries2.Import: All Countries
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9. Financials & Comparison of Major Players/Companies1.About Financial Statements of CMIE Database2.Profits & Appropriations3.Total Liabilities4.Total Assets5.Net Cash Flow from Operating Activities6.Section – I
1.Name of Company with Contact Details2.Name of Director(S)3.Credit Ratings4.Plant Capacity5.Location of Plant
6.Name of Raw Material(S) Consumed With Quantity & Cost
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1.Section – II1.Assets2.Cash Flow3.Cost as % Ge of Sales4.Growth in Assets & Liabilities5.Growth in Income & Expenditure6.Income & Expenditure7.Liabilities8.Liquidity Ratios9.Profitability Ratio10.Profits11.Return Ratios12.Structure of Assets & Liabilities (%)13.Working Capital & Turnover Ratios
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10. Company Profile of Major Players11. Export & Import Statistics of India
1.Export Statistics for 30s Combed Cotton Yarn2.Import Statistics for 30s Combed Cotton Yarn
12.Present Manufacturers13.Dynamics of Cotton Yarn Industry14.Product Characteristics15.Raw Material16.Manufacturing Process17.Process Flow Diagram18.Environmental Concern
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19. Buyer’s List1.Contact Details of Buyer’s2.Name of Director(S)3.Plant Capacity4.Location of Plant5.Company Wise Consumption Detail of the Raw Materials
20. Suppliers of Plant & Machinery21. Suppliers of Raw Material22. Photographs/Images for Reference
1.Machiery Photographs2.Raw Material Photographs3.Product Photographs
23. Plant Layout
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Project Financials
• Project at a Glance Annexure
• Assumptions for Profitability workings ………………………..1
• Plant Economics…………………………………………………..2
• Production Schedule………………………………………………3
• Land & Building……………………………………………….……4
Factory Land & BuildingSite Development Expenses
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• Plant & Machinery……………………………………………..……..5Indigenous MachineriesOther Machineries (Miscellaneous, Laboratory etc.)
• Other Fixed Assets………………………………………..........….......6Furniture & FixturesPre-operative and Preliminary ExpensesTechnical KnowhowProvision of Contingencies
• Working Capital Requirement Per Month……………………….…7Raw MaterialPacking MaterialLab & ETP Chemical CostConsumable Store
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• Overheads Required Per Month and Per Annum………….…….…8Utilities & Overheads (Power, Water and Fuel Expenses etc.)Royalty and Other ChargesSelling and Distribution Expenses
• Salary and Wages …………………………………………....……..9
• Turnover Per Annum ……………………………………….....…10
• Share Capital…………………………………………………….....11
Equity CapitalPreference Share Capital
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• Annexure 1 :: Cost of Project and Means of Finance
• Annexure 2 :: Profitability and Net Cash Accruals
Revenue/Income/Realisation
Expenses/Cost of Products/Services/Items
Gross Profit
Financial Charges
Total Cost of Sales
Net Profit After Taxes
Net Cash Accruals
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• Annexure 3 :: Assessment of Working Capital requirements
• Current Assets
• Gross Working Capital
• Current Liabilities
• Net Working Capital
• Working Note for Calculation of Work-in-process
• Annexure 4 :: Sources and Disposition of Funds
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• Annexure 5 :: Projected Balance Sheets
ROI (Average of Fixed Assets)
RONW (Average of Share Capital)
ROI (Average of Total Assets)
• Annexure 6 :: Profitability Ratios
D.S.C.R
Earnings Per Share (EPS)
Debt Equity Ratio
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• Annexure 7 :: Break-Even Analysis
Variable Cost & Expenses
Semi-Variable/Semi-Fixed Expenses
Profit Volume Ratio (PVR)
Fixed Expenses / Cost
B.E.P
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• Annexure 8 to 11 :: Sensitivity Analysis-Price/Volume
Resultant N.P.B.T
Resultant D.S.C.R
Resultant PV Ratio
Resultant DER
Resultant ROI
Resultant BEP
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• Annexure 12 :: Shareholding Pattern and Stake Status
Equity Capital
Preference Share Capital
• Annexure 13 :: Quantitative Details-Output/Sales/Stocks
Determined Capacity P.A of Products/Services
Achievable Efficiency/Yield % of Products/Services/Items
Net Usable Load/Capacity of Products/Services/Items
Expected Sales/ Revenue/ Income of Products/ Services/ Items
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• Annexure 14 :: Product wise Domestic Sales Realisation
• Annexure 15 :: Total Raw Material Cost
• Annexure 16 :: Raw Material Cost per unit
• Annexure 17 :: Total Lab & ETP Chemical Cost
• Annexure 18 :: Consumables, Store etc.
• Annexure 19 :: Packing Material Cost
• Annexure 20 :: Packing Material Cost Per Unit
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• Annexure 21 :: Employees Expenses
• Annexure 22 :: Fuel Expenses
• Annexure 23 :: Power/Electricity Expenses
• Annexure 24 :: Royalty & Other Charges
• Annexure 25 :: Repairs & Maintenance Expenses
• Annexure 26 :: Other Manufacturing Expenses
• Annexure 27 :: Administration Expenses
• Annexure 28 :: Selling Expenses
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• Annexure 29 :: Depreciation Charges – as per Books (Total)
• Annexure 30 :: Depreciation Charges – as per Books (P & M)
• Annexure 31 :: Depreciation Charges - as per IT Act WDV (Total)
• Annexure 32 :: Depreciation Charges - as per IT Act WDV (P & M)
• Annexure 33 :: Interest and Repayment - Term Loans
• Annexure 34 :: Tax on Profits
• Annexure 35 :: Projected Pay-Back Period and IRR
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