Process Planning for setting up a Textile Spinning Plant for Nettle

Abstract

Of the export products from textiles sectors exported from Nepal, goat’s wool or Pashmina and Himalayan Nettle or Allo are very unique to Nepal and popular in the first world countries. Residents of hilly areas have extracted Nettle fiber and spun fiber to weave products. There seems to be a bottleneck in the spinning process in this technology. This research is focused on the technical and financial aspects of building a model Allo spinning enterprise. The study can be focusses on two parts. First part focuses on the benchmarking test of the pre-existing machines for Allo processing thereby finding the processes yields, energy inputs, human resources and utility flow into this Allo processing enterprise in Nepal. The costs of each manual pre-processing were found and manual spinning process seemed to be the most labor intensive. Alternative, mode of spinning has been established by carding and spinning the fiber using industrial machinery. Based on raw material available in 15 districts, the most cost-effective district was identified to source the raw material, Pyuthan district was selected and the output plant capacity of 35 ton was defined. Floor plan of factory shed was designed with 3 sets Cooking Vessel, 3 sets Beating Machine, 2 sets Hackle Machine,4 set Carding Machine and 63 NMC 10 spindle Charkha were placed in product layout fashion in 7308 square meters main factory shed. Total 31 manpower of different levels, daily 421.5 KWhr electricity at 58.02 KW peak power, 3072 ltrs water and 44.88 kg NaOH can produce 125.5kg yarn daily. The capital investment including civil works, machinery asset and cost of initial management was deduced and yearly expenses was calculated based on the utility usage above. Yearly expense was seen to increase due to land lease, incremental salary to staff and depreciation in the machinery asset. This thesis projects a 15-year financial plan including all the asset, operational expenses, capital structure management. Increasing yearly revenue was projected based on 21-year average increase of gross value added in manufacturing sub sector of Nepal. The net income for each year was calculated and 20% tax was paid. The profit after tax was projected for 15 years into a cash flow diagram. Upon study of 15-year cash flow diagram, the project was found to break even at 4 th year of commencement and the internal rate of return was found to be 56%, thereby confirming the financial feasibility of the project. This model techno-financial plan will be a baseline document for any government/public/private company to refer to when setting up similar small-scale industry.