pp spunbond non woven fabric project report

7/22/2019 PP Spunbond Non Woven Fabric Project Report

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PP Spunbond Non-woven Fabric

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C A U T I O N

This project report has been prepared on the basis ofinformation available with M/S. INDIAN PROJECT RESEARCH INSTITUTE.The intention here is to provide preliminary information to theprospective entrepreneur. Prior to making a firm decision forinvestment in the project the entrepreneur must verify the

various feasibility aspects together along with the addressesfor the procurement of plant & machinery and raw materialsindependently. The information supplied in this report isobtained from the reliable sources but it is not guaranteed andthe money once paid will not be refunded back in any case. Claimsfor incomprehensiveness of the project report will not beentertained and no legal action in this regard would beentertained in any case (Subject to Rajkot Jurisdiction only).Any matter relating to our standard points covered in the reportmay be modified with in 5 days time only from the date ofpurchase.

| C | INDIAN PROJECT RESEARCH INSTITUTE


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SPUN BONDED NON WOVEN FABRIC PRODUCTION

[IPRI/IOME/87693] T. 789497

CONTENTS

01. INTRODUCTION02. ECONOMIC IMPORTANCE OF NON-WOVEN FABRICS03. TEST METHOD OF SPUN BONDED FABRICS04. USES AND APPLICATIONS OF NON-WOVENS05. SOME PROMINENT PRODUCTS MADE FROM NON WOVENS06. OTHER USES OF BONDED FABRICS07. B.I.S. SPECIFICATION08. MARKET SURVEY09. PRESENT MANUFACTURERS OF NON WOVEN FABRIC10. BONDED FABRICS11. RAW MATERIALS12. PROPERTIES & CHARACTERISTICS OF NON WOVEN FABRIC13. MANUFACTURING PROCESS OF SPUN BONDED NON

WOVEN FABRIC14. PROCESS FLOW DIAGRAM

15. OTHER NONWOVEN PROCESS AND TECHNOLOGY16. FUTURE DIRECTIONS FOR NON-WOVENS17. PLANT LAYOUT18. PRINCIPLES OF PLANT LAYOUT19. PLANT LOCATION FACTORS20. EXPLANATION OF TERMS USED IN THE PROJECT REPORT21. ADDRESSES OF RAW MATERIALS SUPPLIERS22. ADDRESSES OF PLANT & MACHINERY SUPPLIERS23. CONCLUSION

APPENDIX - A

1. COST OF PLANT ECONOMICS2. LAND & BUILDING3. PLANT AND MACHINERY4. OTHER EXPENSES5. FIXED CAPITAL INVESTMENT6. RAW MATERIAL7. SALARY AND WAGES8. UTILITIES AND OVERHEADS9. TOTAL WORKING CAPITAL10. COST OF PRODUCTION11. PROFITABILITY ANALYSIS12. BREAK EVEN POINT13. RESOURCES OF FINANCE


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ECONOMIC IMPORTANCE OF NON-WOVEN FABRICS

With the progress of the non-woven industry, there isincrease in numbers of products made from such fabrics.

At the present time, major marketing areas for non-woveninclude durables such as interfacings, interlinings, carpetbackings, furniture and bedding, automotive and furniturepadding, indoor outdoor carpet, blankets, and the constructionindustry.

There are plenty of reasons to making use of, because it iswater absorbents, strong, adaptive, spongy, washable, and evenflame retardant nonwovens. The PP nonwovens are extremely hard-wearing and qualified to hold up in hard circumstances. These

types are even found in different purposes of hygienic,pharmaceutical, fabrics, laminates, shipping et cetera.Majority of nonwovens are of thermoplastic polymers are PPnonwovens. These are additionally put to use in parcel andtransportation. The injection molding technique is applied togive a much needed design to this textile. With the enhancingtendencies within this field the areas of usages are numerous.

These ideas replenished a lot of plastic items seen inclinics. They are vibrant to make floor coverings and mats to usein home. There are lots of applications we use these nonwovens.Those are easily obtainable in more affordable rates in themarket.

The usage of PP nonwovens and the Spunbond Nonwovens helpsmake familiar use items affordable, durable and convenient. Theseare the fabrics manufactured from the fibers, but as you see thefabrication approach makes the big difference. The utilization ofPP nonwovens is widely within general main purpose products wedaily use as if purses and handbags, carry bags et cetera. Theclassic plastic-type bags stretch then break. The paper bags tearif excess weight. The handbags manufactured from PP nonwovens arefantastic alternative of them all these kinds of problems. Handbags are lightweight and water resistant.

One can quite easily possess anything that is printed onall these kind of bags. The luminosity and print level of quality

gets rich look on all of these handbags. The shopping centersreplaced their bags made out of nonwoven fabric which brings ingood image on their trademark. They are becoming more flexible toprint high quality brand spanking graphics on these handbags.


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TEST METHOD OF SPUN BONDED FABRICS

Spunbonded fabrics are characterized by standardized testprocedures originally developed for textile fabrics and paperproducts. The Association of the Nonwoven Fabrics Industry (INDA)has published a list of test procedures that are routinely usedin determining specific physical characteristics of spun-bondedand other nonwoven fabrics. Analogous test methods are publishedin Europe by EDANA, the European Association of Nonwoven Fabrics.INDA and EDANA are working together to develop and publishharmonized international test procedures. Many tests areestablished for the evaluation of non-strength related propertiessuch as washability, stiffness, and softness. Great strides havebeen made in the test methodology used to evaluate the hand ofmaterials for textile applications such as clothing. Amethodology and equipment, permit- ting quantitative evaluationof fabric hand, have been developed.


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USES AND APPLICATIONS OF NON-WOVENS

Uses for spunbonded fabrics have traditionally beensegmented into durable and disposable categories. In the early1970s, consumption of spunbondeds was pre- dominantly for durableuses such as carpet backing, furniture, bedding, and geo-textiles. By 1980, however, disposable applications accounted foran increasingly large percentage due to the acceptance oflightweight (eg, 17 g/m2) spunbonded polypropylene fabrics as acoverstock for diapers and incontinence devices. In the 1990s,the use of new diaper and training pants designs have increasedthe demand for lightweight fabrics far beyond earlierpredictions.

Both the durable and disposable markets for spunbondeds haveexperienced dramatic growth ($6%/year). Disposable applicationsutilize the vast majority of the yardage produced although

only $50% on a tonnage basis (56). Significant areas of durablegrowth have been in the building and construction industrieswhere spunbondeds are used in geotextiles, roofing membranes andHouse wrap. Growth has also been achieved in primary carpetbacking in automotive carpets and carpet tiles, where moldabilityand high dimensional stability, respectively, were achievedthrough the use of polyester spunbonds.

With the possible exception of House wrap, however, therehave been virtually no new markets established as a result of thespecial characteristics of spunbonded fabrics. Growth has comeabout in an evolutionary fashion where spunbonded fabrics weresubstituted for woven fabrics, other nonwoven fabrics (includingknits), paper or film in previously existing applications, orwhere the cost property relationship has permitted an extensionof an existing application, such as the redesign of diapers. Theprincipal contributions that spunbondeds have made in thesemarkets generally have been attractive economics, or improvedprocessibility and performance in the final product. Thiscombination has greatly accelerated the use of the productswithin an application and consequently contributed to the growthof specific markets. General market opportunities for nonwovenshave been reviewed.


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Of the four basic polymer types available in spunbondedform, i.e., polypropylene, polyethylene, polyester, and nylon, bothpolyester and nylon are more costly polymer forms than either ofthe olefins. It is possible for this cost advantage to be offsetby other factors, such as production of the fabric in lighterunit weight, but in general olefin-based products have aneconomic advantage for an equivalent weight fabric. In addition,the lower density of olefin polymers provides a greater yieldof more fibers per unit area that provides better cover andperformance. In some applications, however, this advantage ismoot if the olefin- based product cannot perform properly. Anexample of this is in roofing membranes where a key requirementis dimensional stability to hot bitumen at temperaturesapproaching 2008C, which is above the melting point of bothpolypropylene and polyethylene but well within the performancelimits of polyester. To a great extent this one property, i.e.,higher temperature resistance, largely differentiates theopportunities for polyester spunbondeds versus olefincounterparts. Although polyester fibers exhibit higher modulus

and more flexible dyeing, these properties seem to be of littleadvantage in the markets for spunbonded fabrics.


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SOME PROMINENT PRODUCTS MADE FROM NON WOVENS

Disposable diapers

Sanitary napkins & tampons Sterile wraps, caps, gowns, masks and draping used in the

medical field

Household and personal wipes Laundry aids (fabric dryer-sheets) Apparel interlining Carpeting and upholstery fabrics, padding and backing Wall coverings Agricultural coverings and seed strips Automotive headliners and upholstery Filters Envelopes Tags Labels Insulation House wraps Roofing products Civil engineering fabrics/geotextiles


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MARKET SURVEY

During the past decade, significant changes have occurred inthe worldwide nonwoven market. The predominant regions of theworld for the nonwoven production have been restructured. TheAsia-Pacific region, including China, shows a potential growth innonwoven production while the United States and Western Europecontinue to develop production technology. The global productionof nonwovens reached 4.4 million tons, which is equivalent to$15.9 billion (U.S. dollar). During 2004, 64% of nonwovenmaterials were produced in North America, Western Europe andJapan. A decade earlier, these regions accounted for slightlyhigher than 70% of worldwide nonwoven output. The impact on thenonwovens industry is obvious as raw material prices escalate.Major nonwoven producers have faced the challenge, withincreasing pressure, to sustain profit margins although rawmaterial prices are not stable. This price volatility continuedto impact financial performance of nonwoven companies in 2005.

Nevertheless, global nonwoven production is forecast to rise to6.3 million tons by 2009, or an increase of two million tons from2004 production levels.

In 2011 Asian nonwoven fabric production increased by 7.4%-- and China accounted for the largest share. The most importantcategory of nonwoven fabric was that of spunbonded and melt blownnonwovens. Looking ahead, nonwoven fabric production in Asia isset to continue growing at a healthy pace in the coming years.

As per the current policy made by the Indian Government toban the polythene carry bags, the demand of the non woven madebags are increased tremendously. As the prime raw materials areNon woven fabrics for the bag makers.

The personal hygiene market -which includes adultincontinence products, hygiene products, and infant diapersand training pants-will continue to account for the singlelargest share of nonwovens demand in 2012.

These and other trends are presented in World Nonwovens, anew study from The Fredonia Group, Inc, a Cleveland basedindustry research firm.

Market gains in developing parts of Asia/Pacific, EasternEurope, Africa/Mideast and Latin America will outpace demand inthe US, Western Europe and Japan, Product sales in developing

areas will be fueled by above average economic growth, ongoingindustrialization efforts and rising living standards.

China alone will account for 38% of all additional demandthrough 2012 and will surpass the US to become the targetsnonwoven fabric market in the world. Advances are also expectedto be healthy in lower-volume markets such as India, Turkey,Russia and Brazil.

Sales of roll goods in developed parts of the world will


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expand as well. Nonwovens demand will be stimulated by improvedeconomic climates and higher per capita income, resulting inincreased manufacturing output and consumer spending, which willboost product sales through 2012.

Indian consumption of nonwovens in 2007 was around US$ 214million (47,000 tons) as compared to the world-wide consumptionof around US$ 19 billion. It is estimated that the consumptionwill increase at a CAGR of approximately 13% to US$ 390 million.

Till 2007 spunmelt and airlaid fabric accounted for majorshare in Indian non-woven industry. Due the rise in spunbond andmeltbond, domestic manufacturing facility, after 2010, ppspunbond fabric has become new market leader.

Airlaid products are generally less expensive thancompetitive materials, and suppliers will benefit from increaseduse in absorbent food pads, adult incontinence products, filters,hospital bed pads, napkins and tablecloths, sanitary pads andwipes. But the higher capital investment has been a major

roadblock in the development of this particular industry.

In India, Gujarat, Himachal Pradesh and West Bengal are thethree major state accounts for nearly 80% to 85% of pp spunbondproduction. With the change in duty benefits in Himachal Pradesh,most of the production capacity has been shifted to Gujarat bythe end of 2011. Today, Gujarat alone account for nearly 75% ofproduction capacity of Indian pp spunbond fabric. The main reasonfor this build up in capacity is due to 6% Interest subsidyprovided by state government under the name of Credit linkedInterest Subsidy in Technical Textiles Scheme to Technicaltextile industry.

Within Gujarat, Rajkot and Surat are the two majordistrict, where this capacity buildup has taken place. Till 2009there were only 2 units in Rajkot and 1 unit in Surat city, butin between 2010 to 2012, 18 new units only in Rajkot district and14 in Surat district has been established. Thus the gap betweendemand and supply has been significantly reduced.

Market Share of Nonwoven Technologies

In the Indian market, needlepunch has the maximum sharefollowed by spunbond technology due to the high demand fornonwovens in automobile, hygiene and geotextile sectors.

However spunlace technology has the highest growth rate forfuture with a CAGR of 27%.

Organized Retail is expected to grow at 50% for the nextfive years, which will be a big boost for products like wipesthat make up for more than 60% of spunlace consumption in theworld.

Indian Healthcare Industry is growing at 15%. Privatizationand increasing medical tourism has resulted in growing demand of


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PRESENT MANUFACTURERS OF NON WOVEN FABRIC

Some of the manufacturers of Non Woven Fabric in India are:

Surya TextTechPlot 707, Industrial Area,Phase - I Chandigarh - 160002 UTPh: +91 172 5073813, 2654531Mobile: +91 92167 02205, +91 92161 44577, +91 98120 21535Email: [email protected]

KT Exports (I) Pvt. Ltd.Contact Person : Mr. NimeshAddress : 148, Vyas Bhuvan,Hind Colony Road 6,,Dadar (E) Mumbai - 400 014,

Maharashtra (India)Phone No : +(91)-(22)-24185107/24104500Fax : +(91)-(22)-24160462/24105400Mobile : +(91)-9820322055/9820322055E-mail : [email protected], [email protected]

Parishudh FibresMr. Rajeev SolankiE1 - 365, RIICO Industrial AreaSitapura, Jaipur - 302022Phone : +91-141-3294862/2771171Fax : +91-141-2770284Email Address : [email protected] Email ID : [email protected] : +91-9829057574,9314517645Web Site : http://www.parishudhfibres.in

M/s Shri Ram FilamentsContact Person: Mr. Raman Aggarwal & Gaurav AggarwalAddress : Plot No. 65-66,Sector= 21, Industrial Area. BhiwaniHaryana: 127021Phone : +91-93156-07101Email Address : [email protected] Site : http://www.aggarwalinternationalgroup.com

ADITYA NONWOVENS PVT LTD6/7, MAHAL INDUSTRIAL ESTATE,UNIT NO. 19, 1ST FLOOR,MAHAKALI CAVES ROAD, ANDHERI (EAST),MUMBAI-400093, MAHARASHTRAPhone: 912228325849/28260578/26870256Email: [email protected]


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than with weaving or knitting. With the parallel-laid orientedwebs, high speeds present no difficulty, but it has beenimpossible to devise a continuous process in which one web canlaid at right angles or another. A compromise is made, and lap ofparallel -laid fibers is covered continuously with another in Sform, then another parallel-laid web is applied, then another inS form and so on. In this way, the continuous character of theprocess is retained. Endeavor is made to spread out the doublethickness areas event in successive layers, so that the finalfabric is uniform is thickness. Transverse strength is muchbetter than in a parallel-laid bonded fabric, but not so good asin one made from a random web.


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RAW MATERIALS

Man-made fibers completely dominate nonwovens production,accounting for over 90% of total output. Man-made fibers fall intothree classes, those made from natural polymers, those made fromsynthetic polymers and those made from inorganic materials.According to a study by Tecnon Ltd, the world usage of fibers innonwovens production is:

Polypropylene 63% Polyester 23% Viscose rayon 8% Acrylic 2% Polyamide 1.5% Other fibers 3%Over the years, the share of viscose rayon has increased due to

its increased importance in the spunlace wipes market. However,

recently, due to tremendous increase in price of viscose of fiberand its inability to be easily spun-laid or thermally bonded,there is a decrease in the consumption of viscose fibers. Thesolvent spun cellulosic fiber, Lyocell is becoming increasinglyimportant in the nonwovens industry partly as a result of itsabsorbency and high wet strength.

Polypropylene fibers are predominant in the nonwovensindustry. Some of the reasons for this include:

Low density and specific gravity enabling lightweightfabrics to be produced.

Low glass transition and melting temperature, which isattractive for thermal bonding.

Inherent hydrophobicity that can be modified using fiberfinishes and other treatments. Provides fabrics with good bulk and cover. Chemical stability. Biological degradation resistance (mildew, perspiration). Stain and soil release. Good mechanical strength and abrasion resistance.Polypropylene is available in a variety of grades and its

surface chemistry, absorbency, mechanical properties,degradation, softness, flame retardancy and colouration aremodified by auxiliary chemicals and other treatments by the fibersuppliers. Fibers having different cross-sectional configurations

are also available, which affect the physical properties ofresulting fabrics. The unique combination of properties offersthe manufacturers of nonwovens a valuable high-performancenonwoven fiber for a competitive price.

The main raw materials required for the manufacture of non-woven fabrics is Polypropylene Chips (melt index: 20-40g/10 min166oC ash content: < 0.15 - 0.25 %>. Along with PP, Calciumcarbonate, recycled Polypropylene and some additives also added


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PROPERTIES & CHARACTERISTICS OF NON WOVEN FABRIC

Following are just a few of the properties that can beattained using nonwoven fabrics:

Absorbency Bacterial barrier Cushioning Filtering Flame retardancy Liquid repellency Resilience Softness Sterility Strength Stretch

Washability

Some of the property that are considered most important by end-users are:

Strength: Strength of Non-woven is closely related to itsformulation. i.e. additives and percentage of Calcium carbonate.

Adhesion to Fiber: Even though the mechanism of adhesion is notcompletely understood. The adhesion strength of fiber to fiber bondhas to be considered.

Flexibility: Flexibility of PP nonwoven is desired and that whatseparate it from other plastic sheet and products.

Elastic Recovery: To avoid the permanent deformation of fabric,good elastic recovery is required under strength.

Colour and Colour retention:Diverse range colour is required. Thuscolorfastness and yellowness problem should be avoided.

Though, all above desirable properties of PP Nonwoven fabricis easily achievable. Some special characteristics is only achievedby the use of special binding agents or additives


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MANUFACTURING PROCESS OF SPUN BONDED NON WOVEN FABRIC

The basic raw material for Spun Bonded Non Woven Fabric isPolypropylene chips and take the principle of spinning man madefibers during polymer filature, continuous filament is extendedinto fiber net which is finished by mechanical hot pressing.

All Non Woven are principally produced in three stages. Webformation, bonding and finishing treatment, Non Wovenmanufacturing starts by the arrangement of fibers in a sheet orweb. The fiber can be staple fiber or filaments extruded frommolten polymer granules. Four basic methods are used to form aweb and non wovens are usually referred to by one of thesemethods drylaid, spunlaid Wetlaid and other technique.

Spunbonding is a continuous process producing a finishedfabric from polymer. A polymer, or several polymers, such aspolyester, polyamide, polypropylene polyethylene or others, isfell into an extruder. As it flows from the extruder it is

forced through a spinneret, a device with tiny holes, like ashower nozzle. After cooling the resulting continuous filamentsare then laid down on a moving conveyor belt to form a continuousweb. In the lay-down process, the desired orientation of thefiber is achieved by various means, such as rotation of thespinneret, electrical charges, introduction of controlled airstreams or varying the speed of the conveyor belt. The fabric isthen bonded by thermol or chemical treatment before being woundup into finished roll form.

After cooling, the material can be wound before testing andshipment.


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PROCESS FLOW DIAGRAM

OTHER NONWOVEN PROCESS AND TECHNOLOGY


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The process of needlepunching, also known as needle felting wasoriginally developed to produce mechanically bonded nonwovenfabrics from fibers that could not be felted like wool. The fibersare mechanically entangled to produce a fabric by reciprocatingbarbed needles (felting needles) through a moving batt of fibers ina needleloom.

Typical applications for this type of technology are geosynthetics, filtration media, synthetic leather, webbings andpaddings, floor coverings, automotive fabrics, insulation fabrics,blankets, wipes, roofing etc.

The applications of needlepunched fabrics are extensive andextend into many niche product areas including, for example,medical wound dressings composite breather felts, capillary mattingfor horticulture, fire barriers and ballistic-impact-resistantfabrics.


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FUTURE DIRECTIONS FOR NON-WOVENS

With the new technology development the affordability andquality of the product is definitely going to increase.Although, the spunbond pp fabric has definite advantage overconventional fabric manufacturing technology and over plasticfilm manufacturing, there are some products where use of suchnonwoven fabric as replacement is not possible. Thus therealways be the market of other products.

With the rise in manufacturing capacity the usage ofnonwoven fabric will definitely increase. As seen in thepast, the fabric is being used in many unexpected places likegarment covers, shoe covers, etc.

Some of the growth drivers for the nonwovens industryare listed below:

Growing middle class population; Changing lifestyles;Rise in income levels; Growing infrastructure; Various

incentives by Government of India; Centers of excellence setup by Government of India; Increased awareness about use ofnonwovens.

In past, there are were many government incentives bothfrom center and state, some of them have been discontinued orhave been modified. Following is the list of such incentives.

Textile Industry - Technology Upgradation Fund Scheme (TUFS)

The benefits under the scheme include:

5% interest reimbursement of the normal interestcharged by the lending agency on RTL, or

5% exchange fluctuation (interest & repayment) from thebase rate on FCL, or

15% credit linked capital subsidy for SSI sector, or 20% credit linked capital subsidy for powerloom sector

(An option for front ended subsidy provided w.e.f.

1st October, 2005), or

5% interest reimbursement plus 10% capital subsidy forspecified processing machinery.

However, this scheme ended on 31-3-2012. However the newmodified TUFS has be implemented by government of India.

Scheme for Growth and Development of Technical

Textiles (SGDTT) i.e. modified TUFS.

From :2010-11 to 2014-15

10% capital subsidy.


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PLANT LAYOUT

Following is the general plant layout (not to scale) for theproduction capacity of 3.2mts single beam fabric. They sizeis based on general industrial practice.

PRODUCTION AREA

RAW MATERIAL STORAGE FINISH GOOD STORAGE

ADMIN BLOCK SECURITYCABINE

GATE

Total Land Area Reqd = 4000 Sq.MtrsRaw Material Storage = 200 Sq. MtrsProduction Area = 1500 sq MtrsFinish Goods Storage = 200 Sq. MtrsAdmin Building = 100 Sq. Mtrs


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PRINCIPLES OF PLANT LAYOUT

Some of the guiding principles for detailed plant layoutwill be discussed for the benefit of those making layoutdecisions for the first time.

Storage Layout: Storage facilities for raw materials andintermediate and finished products may be located in isolatedareas or in adjoining areas. Hazardous materials become adecided menace to life and property when stored in largequantities and should consequently be isolated. Storage inadjoining areas to reduce materials handling may introduce anobstacle toward future expansion of the plant. Arranging storageof materials so as to facilitate or simplify handling is also apoint to be considered to design. Where it is possible to pump asingle material to an elevation so that subsequent handling canbe accomplished by gravity into intermediate reaction and storageunits, costs may be reduced. Liquids can be stored in small

containers, barrels, horizontal or vertical tanks and vats,either indoors or out of doors.

Equipment Layout: In making a layout, ample space should beassigned to each piece of equipment; accessibility is animportant factor for maintenance.

It is extremely poor economy to fit the equipment layouttoo closely into a building. A slightly larger building appearsnecessary will cost little more than one that is / that crowded.The extra cost will indeed be small in comparison with thepenalties that will be extracted if, in order to iron out thekines, the building must be expanded.

The operations that constitute a process are essentially aseries of unit operations that may be carried on simultaneously.These include filtration, evaporation, crystallization,separation, and drying. Since these operations are repeatedseveral times in the flow of materials, it should be possible toarrange the necessary equipment into groups of the same kinds.This sort of layout will make possible a division of operationlabor so that one or two operators can be detailed to tend allequipment of a like nature.

The relative levels of the several pieces of equipment andtheir accessories determine their placement. Although gravityflow is usually preferable, it is not altogether necessarybecause liquids can be transported by blowing or by pumping, andsolids can be moved by mechanical means. Gravity flow may besaid to cost nothing to operate, whereas the various mechanicalmeans of transportation involve the first cost of the necessaryequipment and the cost of operation and maintenance. Butmaterial must be elevated to a level where gravity flow must


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start. However, gravity flow usually means a multistory layout,whereas the factors favoring a single-story plant may largely, ifnot entirely, compensate for the cost of mechanicaltransportation.

Access for initial construction and maintenance is anecessary part of planning. For example, overhead equipment musthave space for lowering into place, and heat-exchange equipmentshould be located near access areas where trucks or hoist can beplaced for pulling and replacing tube bundles. Thus, spaceshould be provided for repair and replacement equipment, such ascranes and forked trucks, as well as access way around doors andunderground hatches.

Safety: A great deal of planning is governed by local andnational safety and fire code requirements. Fire protectionconsisting of reservoirs, mains, hydrant, hose houses, fire

pumps, reservoirs, sprinklers in building, explosion barriers anddirectional routing of explosion forces to clear areas, and dikesfor combustible-product storage tanks must be incorporated toprotect costly plant investment and reduce insurance rates.

Plant Expansion: Expansion must always be kept in mind. Thequestion of multiplying the number of units or increasing thesize of the prevailing unit merits must be studied. Suffice itto say that one must exercise engineering judgment; that as apenalty for bad judgment, scrapping of present serviceableequipment constitutes but one phase, for shutdown due toremodeling may involve a greater loss of money than that due torejected equipment. Nevertheless, the cost of change mustsometimes be borne, for the economies of larger units may, in theend, make replacement imperative.

Floor Space: Floor space may or may not be a major factor inthe design of a particular plant. The value of land may be aconsiderable item. The engineers however, follow the rule ofpracticing economy of floor space, consistent with goodhousekeeping in the plant land with proper consideration given toline flow of materials, access to equipment, space to permitworking on parts of equipment that need frequent servicing, andsafety and comfort of the operators.

Utilities Servicing: The distribution of gas, air, water,steam, power, and electricity is not always a major item,in as much as the flexibility of distribution of these servicespermits designing to meet almost any condition. But a littleregard for the proper placement of each of these services,practicing good design, aids in of operation, orderliness, andreduction in costs of maintenance. No pipes should be laid onthe floor or between the floor and the 7-ft. level, where the


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PLANT LOCATION FACTORS

Factors which generally apply to the economic andoperability aspect of plant site location are classified into twomajor groups. The primary factors listed apply to choice of aregion, whereas the specific factors looked at in choosing anexact site location within the region. All factors are importantin making a site location selection.

Primary Factors

1. Raw-material supply:

a. Availability from existing or future suppliers

b. Use of substitute materials

c. Distance

2. Markets:

a. Demand versus distance

b. Growth or decline

c. Inventory storage requirements

d. Competition - present and future.

3. Power and fuel supply:

a. Availability of electricity and various type of fuel

b. Future reserves

c. Costs

4. Water supply:

a. Quality - temperature, mineral content, bacteriologicalcontent

b. Quantity

c. Dependability - may involve reservoir construction

d. Costs

5. Climate:


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a. Investment required for construction

b. Humidity and temperature conditions

c. Hurricane tornado, and earthquake history

Specific Factors

6. Transportation:

a. Availability of various services and projected rates

1. Rail - dependable for light and heavy shipping

over all distances

2. Highways - regularly used for short distance and

generally small quantities

3. Water - cheaper, but may be slow and irregular

4. Pipeline - for gases and liquids, particularly for

petroleum products

5. Air - for business transportation of personnel

7. Waste disposal:

a. Regulations laws

b. Stream carry-off possibilities

c. Air-pollution possibilities

8. Labor:

1. Availability of skills

2. Labor relations - history and stability in area

3. Stability of labor rates

9. Regulatory laws:

a. Building codes

b. Zoning ordinances


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c. Highway restrictions

d. Waste-disposal codes

10. Taxes:

a. State and local taxes

1. Income

2. Unemployment insurance

3. Franchise

4. Use

5. Property

b. Low assessment or limited term exemptions to attract

industry

11. Site characteristics:

a. Contour of site

b. Soil structure

c. Access to rail, highway, and water

d. Room for expansion

e. Cost of site

f. Site and facilities available for expansion on present

company-owned property

12. Community factors:

a. Rural or Urban

b. Housing costs

C. Cultural aspects - churches, libraries, theatres

d. School system

e. Recreation facilities

f. Medical facilities - hospitals, doctors

13. Vulnerability to wartime attack:


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7. TERM LOANS:

Represent Loans which are repayable over a long period oftime. These loans are meant for meeting capital expenditure ofthe project.

8. TOTAL LOAD:

It is the ratio of the maximum power consumed in KWH in aparticular period of time to the number of operating hours of theunit in that particular period.

Power Consumed in KWHTotal Load = (--------------------------) in a particular

No. of operating hours of period of timethe unit

9. LAND AREA/MAN POWER RATIO:

It is the ratio of manpower utilized per unit area of land

required for operating the unit.

+ +| Land Area |

Land Area/Man Power Ratio = | ---------------- || No. of persons || Working on the unit|+ +


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ADDRESSES OF RAW MATERIALS SUPPLIERS

POLYPROPYLENE CHIPS

Most of the PP chips are only manufactured by big companies. Some of suchmanufacturers are:

Relience IPCL ONGC (plant under construction) Haldia IOCL


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CONCLUSION

Till 2010, with the growing economy, wide range ofapplications, lack of competition and growing consumer andindustrial demands nonwoven comes out as a big opportunityarea and an attractive option to invest in. But the scenariochanges after 2010. The completion increased, as the demandand supply become almost same. However, the use of PPspunbond nonwoven fabric will definitely increase as newapplication and new market comes into existence. But theproduct hasntbeen that lucrative.

With the increase in competition the profit margin isdecreasing. Also, the purchase of raw material will be inCredit (advance payment) and with the high completion thesales is in Debit ( almost a month, depends on clientrelationship) also the wide range of colour and GSM,manufacturer require a huge working capital and inventory tomaintain. Thus making it difficult for new comers, as the

payback period of the industry has increased from 2 yearsback in 2010 to 7 years in 2013 (in reality, not based onnumbers)

However there are still chances of growth for a newindustry, as the awareness among the people regardingnonwoven products is increasing, various aids from centraland state government and as government is prohibiting use ofother plastic bags in some state. There are also many statelike those of East where nonwoven fabric product are notbeing used as much as in developed states. With intensemarketing and working capital at the same time maintainingthe product quality standards the payback period of 2-3 yearsis achievable.


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PLANT ECONOMICS

Assumptions:

3.2 Meters Single Beam Machinery has been consideredbecause the return on investment in such machinery isthe highest. 1.6mts machinerys ROI is much less while3.2 mts double beam in not advisable as it require highcapital investment compare to single beam.

All the calculation does not take into account the realmarket competition. i.e. whatever is manufactured isbeing sold.

The sale price of finish goods is an average ofdifferent colour and GSM fabric

The Raw material price is based on current averagemarket price.

No. of Working Days = 25 days / month= 300 days/ annum

No. of Shifts = 2 per days ( 12 hrs Shift) Currency = INR Government Incentives and Benefits are not considered

during calculation.

IT JUST FOR YOUR REFERENC (CAN BE DIFFERENT FROMREAL/PRACTICAL SCINARIO)

MACHINERY TYPE = 3.2 Meters Single BeamPLANT CAPACITY = 800Kg / hoursPLANT OPERATION EFFICIENCY = 80%

EXCHANGE RATE 1 USD = 55 INR


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LAND & BUILDING

Land & Building

Land (4000 Sq. Mts) @ INR 3000 per Sq. Mts 12,000,000

Production Shed (1500 Sq. Mts) @ INR 1500 per Sq. Mts 2,250,000

Raw Material Store (200 Sq. Mts) @ INR 1500 per Sq. Mts 300,000

Finish Goods Store (200 Sq. Mts) @ INR 1500 per Sq. Mts 300,000

Admin Building (100 Sq. Mts) @ INR 2000 per Sq. Mts 200,000

Misc. Boundry Wall, Leveling, etc 2,000,000

Total 17,050,000


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PLANT & MACHINERY

MachineriesRate USD INR

3.2 mts single beam 560,000 30,800,000

Import Duties 30% 168,000 9,240,000

Domestic Machinery (Transformers, Compressors, etc) 2,000,000

Sea Fright 3 containers 1500 6,000 330,000

Local Transportation 30,000 120,000

Total 42,490,000


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OTHER EXPENSES

Other Expenses

Office Equipements and Furnitures 500,000

Pre-operative & preliminary expenses 200,000

Consultancy, Architectures, Contracters etc 300,000

Erection, Installation and Electrification 2,500,000

Computers, Laptops, etc 100,000

Total 3,600,000


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FIXED CAPITAL

Fix Capital

Land and Building 17,050,000

Machinery 42,490,000

Other Expenses 3,600,000

Total 63,140,000


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WORKING CAPITAL REQUIREMENT/MONTH

RAW MATERIALS

Raw MaterialPer Day (Kg) Price/ Kg Cost/day Cost/Month

PP 13440 95 1,276,800 31,920,000

CaCO3 1920 30 57,600 1,440,000

Recycled 3840 55 211,200 5,280,000

Total 19200 1,545,600 38,640,000

General Formulation

PP 70%

CaCO3 10%

Recycled 20%

Production Capacity

Prod. Cap/Hr (KG) 800

Prod. Cap/Month (KG) 480000

Prod. Cap/Year (KG) 6000000

Working Hr/Day 24


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SALARY & WAGES / MONTH

Salary & Wages

Wage/D Wage/M Total

Labor Un-Skilled 14 200 5,000 70,000

Skilled 2 250 6,250 12,500

Operator 2 300 15,000 30,000

Accountant 1 400 10,000 10,000

Clerk and other office Staff 2 300 7,500 15,000

Marketing and Admin Staff 2 600 15,000 30,000

Total 58,750 167,500


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UTILITIES AND OVERHEADS

Utility and Overheads

Electricity (290 KW hrs) @ INR 7 per KW hrs 1,218,000

Repair and Maintanance 25,000

Admin. Expenses 20,000

Vehicals and Tranportation 25,000

Marketing Expenses 100,000

Total 1,388,000


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TOTAL WORKING CAPITAL/MONTH

Working Capital

Raw Material 38,640,000

Salary and Wages 167,500

Utility and Overheads 1,388,000

Total 40,195,500

WORKING CAPITAL FOR 1 MONTHS = INR 40,195,500MARGIN MONEY FOR W/C LOAN = INR 10,048,875


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COST OF PROJECT

Project Cost

Fix Capital 63,140,000

Working Capital Margin Money 10,048,875

Total 73,188,875


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COST OF PRODUCTION/ANNUM

Cost of Production (Annual)

Working Capital 120,586,500

Interest on Total Capital Investment (@13%) 9,514,554

Depreciation @ 10.00% on buildings 505,000

Depreciation @ 20.00% on Plant and Machinery 6,560,000

Depreciation @ 20.00% on office equipment & furniture 100,000

Total 137,266,054


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RESOURCES FOR FINANCE

1. Term loans from Financial institutions( 65.00 % of fixed capital )at @13.50% p.a rate of interest Rs. 41,041,000.00

2. Bank loans for 3 months( 65.00 % of working capital )at @ 13.50% p.a rate of interest Rs. 26,127,075.00

3. Self raised capital from evenfunds & loans from close ones tomeet the margin money needs at a@ 13.50% p.a rate of interest Rs. 36,167,425.00

--------------------------TOTAL Rs. 103,335,500.00

--------------------------

pp spunbond non woven fabric project report

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