Technical Consultancy Services

TECHNICAL CONSULTANCY SERVICES

This is one of the important activities of the Institute. The services include assistance provided to start new units as well as techno-managerial cum marketing assistance to the existing units and prospective entrepreneurs .

The entrepreneurs are assisted in the following areas :-

Identification/Selection of products of manufacture

Selection of appropriate technology, manufacturing process and technique.

Selection of suitable plant & machinery.

Quality control and standardization.

Market potential.

Economic information related to the product.

Information on various facilities provided by other development Govt./Semi-Govt. agencies.

Various aspects like technology, manufacturing process, market trends etc., are taken care of and incorporated in the project profiles at the time of preparation/ updation so that the entrepreneurs are fed with latest information with regard to the proposed activity.

There are technical officers of different disciplines like Mechanical, Metallurgical, Electrical, Electronics, Chemical, Glass & Ceramics, Leather & Footwears, posted in the Institute, who give technical advice to entrepreneurs & existing industries to improve quality & productivity.

PROJECT PROFILES FOR GUIDANCE:

In order to guide and assist the prospective entrepreneurs to set up their new units or expand / diversify the existing units, the Institute prepares project Profiles on technically feasible and economically viable new products and also update the existing profiles regularly.

The project profiles contain the project related information as mentioned below :-

Introduction

Market Potential

Basis and presumptions

Implementation Schedule

Technical Aspects

Financial Aspects

Utilisation of Machinery

Financial Analysis

Names & address of suppliers of raw materials and machinery & equipmen

Project profiles on various industry groups as published by the office of DC(SSI) are available in the form of volumes as follow :

Chemical products

Food Products

Electrical Products

Electronic Products

Mechanical Products

Glass & Ceramics Products

Metallurgical Products

Leather & Leather Products

Priced publications are available from Controller, Department of Publication, Civil Lines, Delhi – 110054 by sending payment through Demand Draft and its different sale counters including SISIs and Br SISIs on cash payment all over the country.

Model Scheme

Absorbent Cotton

1.0

INTRODUCTION:

Absorbent Cotton also known as Surgical Cotton or Cotton Wool is mainly used for medical purposes in hospitals, nursing homes, dispensaries etc., Because of high fluid absorbency power, it is better known as absorbent cotton. The absorbent cotton should be chemically inert and soft to give maximum protection and should not cause irritation. These properties can be achieved by manufacturing the product as per standard method of manufacture. The raw cotton is processed by series of steps which render the cotton hydro-phillic in character and free from external impurities needed to be fit for use in surgical dressings and personal hygiene. Absorbent Cotton is also used for making conventional type of Sanitary napkins or pads besides medical purposes. And fairly good quality of cotton wool is consumed in beauty parlours for removing make up and dirt etc., With the development of medical facilities and growing awareness towards personal hygiene, the absorbent cotton industry registered steady growth rate in past and is picking up pace with the spread of education and upward economic growth of towns and villages.

2.0

MARKET POTENTIAL:

Demand for absorbent cotton depends on various factors. The demand of this product is directly related with the increase in population and expansion of Public Health Services. The consumption of Surgical cotton or cotton wool increases with the increase in population and number of hospitals, dispensaries, health care centers, nursing homes etc. Progressive increase in health amenities offered by government and coming up of new hospitals and health care centers in private sector even at small towns are contributing to the growth of absorbent cotton industry. Govt. hospitals and big nursing homes are the largest consumers for cotton wool. Absorbent cotton has good export market potential. Presently it is being exported to the countries like Japan, Australia and several European countries. The export of surgical cotton can be done provided it is made according to standards and specifications of international market.

3.0

BASIS & PRESUMPTIONS :

The estimates are drawn for a production capacity generally considered techno-economically viable for model type of manufacturing activity. The cost in respect of land & building, machinery & equipments, raw materials and selling prices of the finished products etc., are those generally obtained at the time of the preparation of the project profile and may vary depending upon various factors. The production capacity is based on single shift per day and 300 working days in a year and 75% working efficiency of plant & machinery. However, Break Even Point in the scheme has been calculated on the full capacity utilization. Whereas some names of manufacturers/suppliers of machinery and equipment, raw materials etc., are indicated at the end of the profile, these are by no means exclusive and exhaustive. Working capital for 3 months has been taken into consideration and rate of interest on total capital investment has been assumed to be 15%.

4.0

IMPLEMENTATION SCHEDULE :

Preparation of details Project Report

1½ Months.

Provisional Registration as SSI unit

1 Week

Finance Arrangements

3 Months

Procurement of Machinery & Equipments

3 Months

Installation of Machinery & Equipments

1 Month

NOC from Pollution Control Board

1 Month

Recruitment of Staff & Labour

3 Weeks

Trial run of plant

1 Week

5.0

TECHNICAL ASPECTS:

5.1

Process of Manufacture:

Raw cotton received in bale or otherwise is opened in opener where it is loosened and dust and other foreign particles are removed.

Loosen cotton is then loaded into a keir and chemicals, such as caustic soda, soda ash, detergent etc., are added along with adequate water and steam boiled for about 3-4 hours. By this process most of the natural waxes and oils are removed while remaining foreign matter get soften and disintegrate. The treated cotton is transferred to washing tanks where it is washed thoroughly.

Washed cotton is bleached to remove radish brown colour developed due to chemical treatment. For this purpose, bleaching agent such as sodium hypo-chloride or hydrogen peroxide are used. The bleaching process improves whiteness assisting in disintegration of any remaining foreign matters.

The bleached cotton is thoroughly washed again to remove the chemicals. A little quantity of dilute hydro-chloride acid or sulphuric acid is also added to neutralize excess alkali. The water of cotton is removed with the help of hydro-extractor which is then sent to a wet cotton opening machine. The cotton so obtained is dried by passing through dryer or alternatively subjected to sun drying where provision for dryer is not made.

Dried cotton is sent to blow room where it is thoroughly opened and made into laps. The laps are then fed into carding machine wherein cotton is wrapped around rollers in thin layers. Cotton so obtained is compressed and rolled into rolls along with papers.

The rolls are then weighed and cut according to weight & sizes and labeled properly before packing in polythene sheets and heat sealed.

5.2

Quality Control and Standard

Surgical cotton or absorbent cotton is covered under Drug Control Act, hence it should be manufactured to meet its requirements.

5.3

Production Capacity (Per Annum)

Quantity

300 M.T.

Value

Rs. 190 Lakhs

5.4

Motive Power Requirement

Total motive power requirement 120 k.w.

5.5

Pollution Control

NOC from Pollution Control Board is necessary to be obtained before starting the industrial activity. Suitable equipments have to be provided to check the harmful and non permitted contents in the effluent water. Hence, water is to be treated suitably to remove harmful contents before discharging the effluent.

5.6

Energy Conservation

Suitable provisions like shunt capacitor for electric motors, thermal insulation etc., have to be made to save energy.

FINANCIAL ASPECTS :

6.1

Fixed Capital

6.11 Land & Building.

Land	550 Sq.Mtrs	Rs. 385000/-
Total built up area (Office, Store, etc.)	50 Sq. Mtrs	Rs. 562500/-
Working Shed	400 Sq.Mtrs
	Total	Rs. 947500/-

6.1.2 Machinery & Equipments.

S.No.	Description	Qty.	Value (Rs.)
i)	High pressure Keir (MS) with inside coated with acid resistant epoxy coating fitted with pump for circulation of reagents steam pipe for heating, capacity 2000 kgs. Charges of cotton fitted with all accessories.	1	160000/-
ii)	MMC Revolving flat high production carding machine 1016 mm width with dust extractor, electronic stop motion, brush rolls stripping brush rools, filet grinder and other accessories.	2	730000/-
iii)	Two compartment continuous cotton dryer with steam heating arrangements, at 100 psi capacity 100 kg chamber of drying loose open cotton per hour provided with trolley electrical heaters and electric control panel.	2	630000/-
iv)	Porcupine cleaner 1200 mm working width 406 mm diporcupine type cylinder with strikers, each striker having two striking edges, centrally adjustable grid bars and reduction gear, electric motor (5 HP) for materials transport with accessories.	2	240000/-
v)	Centrifugal hydro extractor with S.S. basket dia 1000 mm fitted with Motor and other accessories.	1	85000/-
vi)	Wet Cotton opener working width 1000 mm fitted with motor and all necessary accessories.	1	45000/-
vii)	Vertical opener with 7 steel discs and three separate centrally adjustable settings for beater and grid bars fitted with motor 5 HP complete with all accessories.	1	95000/-
viii)	Single soutcher and lap machine 1065 mm working width with kirschener beater, centrally adjustable grid bars, High pressure device for loading calendar rollers and lap racks etc., for making lap doffing arrangement with extended lap holder for continuous operation with 10 HP motor starter etc.	2	620000/-
ix)	Rolling and winding machine 1320 mm on face complete with motor starter and other accessories	2	56000/-
x)	Small band saw type machine with motor for roll cutting machine.	2	16500/-
xi)	Air compressor for lapping machine.	1	12500/-
xii)	Coal/wood fired boiler 1000 kg/hrs. evaporation capacity, 50 psi complete with feed pump and accessories.	1	185000/-
xiii)	Water overhead tank of 10000 liters capacity and tube well fitted with accessories.	LS	75000/-
xiv)	Water treatment plant for treating process water required for boiler and keir.	LS	80000/-
xv)	Water and pipe connection with insulation, various MS tanks and concrete tanks for washing purpose etc.	LS	45000/-
xvi)	Weighing scale, sealing M/c etc.	-	5000/-
xvii)	Testing equipments such as chemical balance, PH Meter, Soxhlet extractors, crucible, Furnace oven etc..	-	100000/-
xviii)	Electrification and installation charges @ 10% cost of machinery & equipment.	-	318000/-
xix)	Office equipment & furniture	-	45000/-
xx)	Pollution control equipments and energy conservation equipments.	-	125000/-
xxi)	Pre-operative expenditure	-	25000/-

6.2

Working Capital (per month)

6.2.1 Salary & Wages.

S.No.	Category	No. of Post	Salary (Rs.)	Total (Rs.)
(i)	Works Manager	1	5000/-	5000/-
(ii)	Technologist/Chemist	1	4000/-	4000/-
(iii)	Clerk-cum-Accountant	1	2800/-	2800/-
(iv)	Supervisor	1	3000/-	3000/-
(v)	Store-Keeper	1	2400/-	2400/-
(vi)	Blow Room Operator	1	2500/-	2500/-
(vii)	Boiler Attendant	20	2500/-	2500/-
(viii)	Skilled Workers	20	2000/-	40000/-
(ix)	Unskilled Workers	34	1600/-	544000/-
(x)	Packers	5	1800/-	9000/-
(xi)	Peon cum Chowkidar	1	1600/-	1600/-
	SubTotal			127200/-
	Perquisites @ 15%			19080/-
	Grand Total			146280/-

6.2.2 Raw Materials (Per Month) :

S.No.	Particulars	Qty.	Rate	Value (Rs.)
(i)	Raw Ginned cotton (with 10% wastage appx.)	27500 kg.	31/-per kg.	852500/-
(ii)	Caustic Soda Flakes	850 kg.	17/-per kg.	14450/-
(iii)	Soda Ash	550 kg.	11/-per kg.	6050/-
(iv)	Bleaching Powder	550 kg.	6.50/-per kg.	3575/-
(v)	Misc. Chemicals	LS		25000/-
(vi)	Packing paper, labels, gum, PE sheets, sacks etc	LS		48000/-
	Total			949575/-

6.2.3 Utilities (per month) :

S.No.	Particulars	Qty.	Rate	Value
1.	Coal for boiler	45 MT	1800/-	81000/-
2.	Electricity	17000kwh	@Rs.4.20 per kwh	71400/-
	Total			152400/-

6.2.4 Other Expenses (per month) :

S.No.	Particulars	Amount(Rs.)
1.	Postage & Stationery	1000/-
2.	Telephone	500/-
3.	Sales expenses/commission	15000/-
4.	Transport	10000/-
5.	Consumable Stores	3000/-
6.	Repair & Maintenance	2500/-
7.	Insurance	1500/-
8.	Misc. Expenditure	500/-
	Total	34000/-

6.3

Total Recurring expenses (per month) :

S.No.	Particulars	Amont(Rs.)
1.	Salary & Wages	146280/-
2.	Raw Materials	949500/-
3.	Utilities	152400/-
4.	Other Expenses	34000/-
	Total	1282180/-

6.4

Working Capital (for Three months)

1282180 x 3 = 3846540/-

6.5

Total Capital Investment.

(1)	Fixed Capital	Rs. 4640500/-
(2)	Working Capital for 3 months	Rs. 3846540/-
	Total	Rs. 8487040/-

Utilisation Of Machinery

The efficiency of Plant & Machinery has been taken at 75% on an average basis. However, the efficiency can be increased upto 90% by controlling contributory factors.

Financial Analysis

8.1

Cost of Production (Annual) :

1.	Total recurring expenditure	15386160/-
2.	Depreciation of Machinery & Equipment @ 10%	362350/-
3.	Depreciation on office furniture @ 20%	9000/-
4.	Depreciation on Building @ 5%	28125/-
5.	Interest on total capital investment @ 15%	1273056/-
	Total	17058691/-
	Say	17058700/-

8.2

Turnover (per Annum) :

1.	By sale of 300 MT Surgical cotton @ 63000/- per MT	18900000/-
2.	Cotton waste 25 MT @ Rs. 4/- per kg.	100000/-
	Total	19000000/-

8.3

Profitability :

8.3.1	Profit (per annum):
	19000000-17058700	1941300/-
8.3.2	Percentage profit on sales	10.2%
8.3.3	Return on investment (%age)	22.8%

8.4

Break Even Point.

a) Fixed Cost.
1.	Depreciation on machinery & office equipments and building	399475/-
2.	Interest on investment	1273056/-
3.	40% of salary	702144/-
4.	40% of other expenses	163200/-
5.	Insurance	18000/-
	Total	2555875/-

BEP = FC x 100 = 2555875 x 100 = 56.83%

FC + Profit 2555875 + 1941300

ADDRESSES OF MACHINERY & EQUIPMENT SUPPLIERS.

9.1

Carding Machine

M/s. National Machinery Manufacturers Ltd.,
PB No. 3, Thane – 300 601

M/s. Ramesh Safe and Carding Wor
Station Road, Panipat.

M/s. Machinery Manufacturers Corporation,
B-61, Circular Garden Road,
Calcutta – 600 043

9.2

Keir, Boiler, Hydro-extractor etc.

M/s Gujarat Machinery Manufacturers Ltd.,
187, Worli, Mumbai - 400018.

M/s APV Engg. Co. Ltd.,
Jessore Road, Calcutta (W.B.)

M/s Vikas Chemicals,
Tilak Bazar,
Delhi - 110 006.

LEVY CHARGES ON CONSULTANCY SERVICES

Feasibility Report/Project Report

Rs. 5000/-

Inplant Study

Rs. 1500/-

Capacity Assessment of SSI unit

Rs. 1500/-

NSIC Registration under CGSPP

Rs. 700/-

Study of Sick unit

Rs. 750/-

Appraisal of project report

0.5% of Project cost

(max of Rs. 5000/- for projects upto to Rs. 20 lakh)

(Rs. 8000 for projects above Rs. 20 lakh)