PRPOSAL FOR A SPINNING PROJECT FOR CAMEROON

Rationale of the Project UNIDO Feasibility Study report (2011) for a Cotton Spinning Mill in 11 SubSaharan African Countries indicates that cotton is a crucial source of income for millions of small farmers and their families who depend on cotton for their livelihood. Cotton is also a source of foreign exchange earner for 15 countries in this continent. In 2008-2009 Cameroon produced 69,000 tons of cotton fiber and exported 54,000 tons. For a medium staple cotton fiber of below 25mm, the price in International market is about $.85/Kg whereas the price of 20/1 ring spun carded cotton yarn is about $2.00 per pound. A significant value addition and consequent increased foreign exchange earning can be achieved by converting cotton fiber to yarn by setting up Spinning Mills in Cameroon. Spinning is an agroallied industry and a spinning mill will simultaneously impact boosting of GDP in both agricultural and manufacturing sectors in Cameroon, besides creating substantial employment opportunity. Market Aspect in project design criteria Sub-Saharan African cottons are medium staple (25-29mm) and therefore suitable for spinning into medium coarse yarn (Ne 24-40s), both carded and combed. Depending on the market demand, it is envisaged that a mill will produce medium coarse yarn in the count range of Ne 24-40s, with an average yarn count of Ne 30s, combed. In order to maximize the value added locally, the mill should produce certain percentage of combed yarns, as such yarns fetch a premium over basic carded cotton yarns because they are used for higher-end applications in knitting and weaving. Open end Yarn for waste disposal: The waste generated in carding and combing could be partly recycled by adding some open end spinning frames which would enable the transformation of waste produced by combing into open end-yarns in coarse yarn counts (Ne 6-12s) for which there is an established market for the manufacture of denim and industrial

fabrics. However, the bulk of the waste produced in combing would be sold locally or exported through established market channels. . Plant capacity: For the proposed count range, the smallest viable plant is 21,000 spindles with an output of about 11-12 tons per day based on standard Productivity optimally balanced on an average yarn count of Ne 30/1, combed. Basis of plant design: The sponsor has a composite knit textile in process of implementation which will require 10-12 tons of yarn and besides the minimum size of a blow room is suited for a 10-12 ton capacity ring spinning mills. Medium staple cotton (25-29 mm) is available in most sub-Saharan African countries, especially in Cameroon. This is considered ideal for ring spinning for yarn Ne24 to 40 which are suitable for most knit and woven fabrics used for garment. As a cost effective solution 20nos long ring frames of 1008 spindles (20x1008 spindles) or 40nos medium frames of 504spindles has been proposed and two additional Open end spinning frame with 2x240 rotors have been proposed for this project. Process description Spinning is a manufacturing process by which fiber is converted into yarn. The capacity of a spinning mill is determined by the number of spindles it has installed. The spinning process is divided into three phases: the pre-spinning or preparatory phase, the spinning phase and the post-spinning phase. The prespinning and spinning phases include using a blow room, carding, draw frame, combing (optional) and using a speed frame, and ring frame rotor spinning frames for course count from waste. The post-spinning phase consists of winding (single yarns) and twisting and doubling (plied yarns).

Flow sheet:
Cotton Mixing

Blow Room

Combing

Carding

Drawing

Drawing

Open End

Spinning

Spinning

Open end Yarn

Combed Yarn

Carded Yarn

Technology:
The Plant & Machinery required for the Spinning Mill process for manufacturing Yarn of different counts are blow room machinery, metal detection system, spark Diversion system, carding machines, card accessories, draw frame (Finisher & Breaker), speed frame, combers, ring frame, electrical infrastructure, yarn testing instruments, humidification and waste collection system and automatic cone winding machine etc.

Layout & Built Floor Space:

RAW COTTON GODOWN 170KG Bales 240FTx80FT Passage for Bale trolley BLOWROOM Mixers 240FTx60FT Carding Machines Can Storage Combers 240FTx80FT 240FTx60FT Roving Frames BALE OPENING AREA

I N T E R N A L R O A D

SPINNING ROOM

240FTx170FT

Assumptions:

OFFICE, Laboratory and Winding Section 240FTx30FT

RAW COTTON GODOWN

Total Area Required: Separate Built space for Raw Cotton Godown: Built Area for spinning plant: 240Ftx80Ft

About 200,000 Sft 19,200Sft

Blow room and bale breaker area: 240Ftx60Ft 14,400Sft Carding and combing & Roving: 240Ftx80Ft 19,200Sft Ring & Rotor Spinning frames: 240Ftx180Ft 43,200Sft Office Laboratory and Winding section 240Ftx60Ft 14,400Sft Finishing and day storage area 240Ftx30Ft`` 7,200Sft (Finished products shall be transferred to Cotton yarn godown) --------------------------------------------------------------------------------------------------Total for spinning shed 98,400SFT --------------------------------------------------------------------------------------------------9,600Sft 9,600Sft 7,200Sft 144,000Sft

Built Area for waste storage: Built space for the humidification plant Power room (1600KW substation with stand by Generator) Total Built Floor Space

Estimated Project Cost & Profitability Step 1: Basis of Calculation

In general for a spinning mill, contribution per kg of a particular count is calculated to work out the economics for a new project as well as for a running mill. Contribution = selling price - direct cost Direct cost for a spinning mill includes raw material price, packing cost, freight. All other costs are either fixed costs or semi variable costs. The other costs cannot be conveniently allocated to per kg of a particular count. The basic idea of a new project or a running plant is to maximize this contribution. Because once the plant is designed, spares cost, power cost, administration cost, labor cost etc almost remains constant. There will not be significant changes in these costs for different count patterns if the plant is utilization is same.

Step 2: To Work out the Total Investment Cost ( Machineries, Accessories, Land and Building, Humidification and Electrical instruments)
To calculate the number of back process and winding drums required, a detailed spin plan should be worked out with speeds and efficiencies to be achieved in each machine.

While calculating the no of machines required, m/c utilization, m/c efficiency , waste percentage, twist multipliers, delivery speeds etc should be considered properly. These factors should be decided based on yarn quality required, end breakage rates and the capacity of machine.

Investment On Machinery
Machinery Blowroom line for cotton Blow room line for Polyester cards Draw frames (with auto-leveler), Double delivery draw frame Uunilap combers No. of Machines 1 Line 1 Line 22 Nos

6 Nos 10 Nos 2 Nos 10 Nos

How a speed frames with overhead blower 7 Ring frames with autodoffer Winding machines ( 26 drums per mc) Roving transport ( manual) Argus fire system Total Cost in US Dollar 20 20 1 1 US $ 1,12,02,395

From the above table it is clear that, 20 ring frames with 1020 spindles are working with auto doffing and with link to autoconer. The major advantage of this automation is to reduce labor and to reduce the problems related to material handling. One has to really work out the benefits achieved because of this and the pay back for the extra investment. Draw frame contributes a lot to the yarn quality and the ring frame and winding machine working. It is always better to go in for the best draw frames like RSB-D30 draw frames with auto leveler. It is not wise to buy a cheaper draw frame and save money. It is always better to keep excess carding and auto leveler draw frames, so that flexibility of the project is also maintained. If the coarser counts contributes more and the market is good, overall production can be increased. If the market is for finer count, both the machines (carding and draw frames)can be run at slower speeds, which will surely contribute to yarn quality. Speeds of speed frame , combers and ring frames do not affect the yarn quality as it is affected by card and draw frame speeds. Blow room capacity should be utilised to the maximum, as it consumes a lot of power ,space and money. Ringframe specification should be perfect, because the working performance and power consumption of the ringframe depends on the specifications like, lift, ring dia, no of spindles etc. Ring frame specification should be decided to get the maximum production per spindle and to reduce the power consumed per kg of yarn produced by that spindle. Because the investment cost and the power consumption for the ringframe is the highest in a spinning mill.

Investment On Accessories
Accessories Carding cans 36" x 48" comber cans 24" x 48" Drawframe cans 20" x 48" Identification bands 20" Identification bands 24" Roving and spinning bobbins Plastic crates Trolleys Cone trolly Fork lift Hand truck Total No.of Machines 120 350 110 400 50 6,000 400

400 1 3 US $ 2,02,220

Service and Maintenance Equipments

Service and Maintenance Equipments Cots buffing machine and accessories Card room accessories Spindle oil lubricator Clearer roller cleaning machine Vacuum cleaner Pneumatic cleaners Weighing balance Strapping machine Premier autosorter Premier uster tester Premier strength tester No.of Machines 1 1 set 1 1 1 6 3 2 1 1 1 Rate/MC 20,000 60,000 4,000 3,000 15,000 500 2000 2000 2500 45,000 45,000 Total 20,000 60,000 4,000 3,000 15,000 3000 6000 4000 2500 45,000 45,000

Premier fiber testing Premier Classidata Erection charges Total US $ 4,27,500

1 1

45,000 25,000

45,000 25,000 1,50,000

Card service machines like Flat tops clipping machine and flats grinding machine are very important for yarn quality. One should not look for cheaper machine. It is always better to go for reputed manufacturers like GRAF, HOLLINGSWORTH etc. Rubber cots contributes a lot to yarn quality. Bad buffing in ring frame can increase the imperfections by 15%. Poor quality of buffing in drawframe and speedframes can affect both production and quality. It is better to go for the best cots mounting machine and cots buffing machine

Humidification and Electrical Equipments

Electrical installation including transformer, incoming and outgoing panels, bus duct, Capacitor, etc for 3800 Cables Compressor, Dryer and pipe lines Humidification system Chillers Ducting and installation for humidification system Workshops, hydrant and other equipments Total----------------

1 lot 1lot 1 lot 1 lot 1 lot 1 lot 1 lot US $ 18,23,000

A detailed costing has to be done to compare the cost per unit to decide, Whether to use the purchased power or to go in for own Gensets. while working out the costing finance cost on investment , overhauling cost, running cost, efficiency of the machine should be considered for cost calculation in the case of Genset. In case of purchased power, the losses due to power interruption( based on the area data), finance cost on initial investment, md charges, unit charges to be considered. It is better to use 50% purchased power and 50 % own generation.

Land and Building Costs

Land Cost Land Development Factory Building Road and Misc others Total- estimated cost is US$ 14,45,440

Step No.3 : To calculate the expenses ( labour, power, stores,working capital, insurance etc)
Working capital = US $ 3,000,000

Labor & Wages

Department Production Packing Maintenance Utility Adminstration and personal dept Total no of People required per day No.of People Required 140 15 30 17 20 222

Wages
Total estimated cost for Wages is US $ 28,485/day

Power:
Total Power Cost/Day has been estimated at US $ 2087

Spares Cost, Repair and Insurance

Spares cost at usd 8/1000 spindle shift ---------------------Repairs and other overheads ----------------------------------Insurance at 0.175% on investment and working capital ----Total Cost --------------------------------------------------222,566 200,000 31320 453886

Step No.4 : Pay Back Calculation

All figures are in US Dollar (US $) Investment Land and building Machinery, accessories & service equipments Electrical and Humidification ducts 1,444,440 11,832,115 1,823,000

Total Investment Working Capital Grand Total

15,099,555 3,000,000 18,099,555

Recurring Expenditures per Day

Salaries and Wages Power Cost Stores , Repairs and Insurance Total Interest Calculation (per day) On Capital 8% on Working Capital 9% Total Expenses Including Interest Total Contribution Per Day Net Profit (before depreciation & taxation) 3355.5 750 8402.8 13312 4909.2 949.5 2087 1260.8 4297.3

Pay Back Period

8.50 years

Engr. SIDDIQUE AHMED E & PM Consultant Siddique1940@gmail.com