Absorbent Cotton Project Report, Making Plan

Introduction to an absorbent cotton project report, manufacturing process, and business plan: Raw cotton fibers make up cotton wool, which is made from silky fibers taken from cotton plants. Firstly, impurities, such as seeds, are removed, followed by hydroperoxide or sodium hypochlorite bleaching and sterilization. Furthermore, it is a refined product that has a variety of medical, cosmetic, and practical uses. Absorbent Cotton is also known as “Surgical Cotton” or “Cotton Wool” and carded cotton fibers are used to make this product. To achieve a good white color, it is bleached and softened. Absorbent cotton that has been sterilized may appear slightly white. Ideally, the material should be uniformly strong and have some resistance to pulling. In a surgical dressing, inertness and the absence of irritation are essential properties. In certain standard manufacturing processes, Cotton can be made to provide these properties.

The absorbent cotton is also called “Surgical Cotton” or “Cotton Wool”, made of highly carded cotton fibers. It is bleached and softened to make it white. Sterilized cotton may appear white when it is sterilized. The material should be of uniform quality and offer appreciable resistance when pulled. Typically, absorbent cotton staples are 1.5 cm or more long. The name “absorbent cotton” comes from its ability to absorb fluids quickly. For maximum wound protection, the dressing should be soft. A surgical dressing should have two main physical properties: inertness and lack of irritation while being used. The properties of absorbent cotton can be achieved by manufacturing it according to certain standards. After undergoing a series of processes, raw cotton is rendered hydrophilic in character and can be used as a surgical dressing because it is free of organic impurities and impurities. Absorbent cotton was used long before the growth of the industry, but it gained a wider market once the country gained independence and developed medical facilities. There were hospitals and dispensaries established in villages under the successive five-year plans. Also, more and more professionals have taken an interest in the use of hygienic materials, thereby increasing the demand for absorbent cotton, which is also extensively used for the manufacture of sanitary pads, filters, and cloth napkins.

A guide to absorbent cotton project report, manufacturing process, and business plan

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Absorbent cotton
Absorbent cotton

Raw Cotton is processed by a series of processes and rendered hydrophilic in character and free from other external organic impurities for enabling its use in the surgical dressing. The use of absorbent cotton started several decades before the growth of this industry, but with the development of medical facilities in the country after independence, absorbent cotton gained a wider market. The successive five-year plans included medical infrastructure, such as hospital and dispensary construction, even in remote hamlets. Furthermore growing awareness amongst professionals in the use of hygienic materials increased the demand for absorbent cotton which is also extensively used for making sanitary pads or napkins or filters.

Market potential of Absorbent Cotton Manufacturing Business

Around the world, it is estimated that surgical and absorbent cotton demand is increasing by 10 percent annually. Approximately 2 million bales (each weighing 170 kg) of absorbent cotton are consumed in India per year. A direct correlation exists between the growth in population and the expansion of public health services in terms of surgical absorbent cotton demand. As the population and number of hospitals, dispensaries, nursing homes, health care facilities, etc. increase, the demand for Surgical Absorbent Cotton increases as well. As a result of government efforts to improve health care and the emergence of new hospitals and health care centers in the private sector, absorbent cotton is becoming more and more popular. Absorbent Cotton is used to make sanitary towels, filters, and tampons, among others. The biggest users of absorbent cotton are government hospitals and large nursing homes. The cotton absorbent is the most commonly used material in government hospitals. Private hospitals, clinics, etc. purchase absorbent cotton through medical stores, whereas government hospitals purchase it through official tenders or through government agencies. Internationally, it has excellent market potential.

Business plan required for Absorbent Cotton Manufacturing

Generally, a business plan must comprise executing summary, project expenses, financial analysis, and marketing strategies. If you are interested to begin a large-scale unit, you have the option of availing of loans from banks.

  • Market potential for Absorbent Cotton Manufacturing Business
  • Implementation schedule of Absorbent Cotton Manufacturing Business
  • Basis and Presumptions of Absorbent Cotton Manufacturing Business
  • List of approvals required for Absorbent Cotton Manufacturing Business
  • Area required for Absorbent Cotton Manufacturing Business Unit
  • Raw materials required Absorbent Cotton Manufacturing Business
  • List of machinery required for Absorbent Cotton Manufacturing Business
  • Manufacturing process of Absorbent Cotton
  • Project economics of Absorbent Cotton Manufacturing Business in India
  • Profitability in Absorbent Cotton Manufacturing Business

Basis and Presumptions of Absorbent Cotton Manufacturing Business

a. Estimates are based on a general notion of the capacity of a manufacturing activity that is technologically and economically viable.

b. The scheme is based on a shift system with 8 hours of work per day and 300 working days per annum.

c. It is assumed that the interest rate on borrowed capital is 13% per year.

d. In the case of raw materials, packing materials, machinery, and equipment, the cost was taken at the time of preparing the project profile. The cost may vary from time to time, and may even change from place to place.

e. In the production shed, rent is calculated based on the prevailing rates, which vary from time to time and from place to place. In the production shed, rent is calculated based on the prevailing rates, which vary from time to time and from place to place.

f. A 70 % capacity utilization rate is taken into account for calculation purposes.

Implementation Schedule of Absorbent Cotton Manufacturing Business

Approximately nine months will be required for the project’s execution. Activity breakup with relative times is as follows:

Implementation schedule of Absorbent Cotton Manufacturing Business

The project implementation will take about nine months. Following is a breakdown of activities and time allocated to each of them:

Activity Estimated Time Period (Months)

(i) Scheme preparation & approval 0 – 1

(ii) Registration under MSME Act 2006 1 – 2

(iii) Clearance from Pollution Control Board 2 – 5

(iv) Sanction of loan 2 – 5

(v) Approval from Food & Drugs Administration 3 – 5

(vi) Power Connection 4 – 6

(vii) Placement of Orders for Machines 5 – 6

(viii) Installation of Machines 7 – 8

(ix) Recruitment of Staff & Trial run 8 – 9

(x) Commercial Production 9 TH onwards.

As this item is covered by the drug act, it requires a license. A license can be obtained from the Joint Commissioners, Food and Drug Administration, which can be found in almost every district. To obtain a license, you must meet the following requirements:

i) Land & Plant Layout

ii) Evidence of land ownership or a letter of consent from the owner if the land is rented.

iii) – A copy of the Memorandum and Articles of Association or Partnership Deed, or a list of Directors, as appropriate.

iv) Sample photocopy of packing materials.

v) Obtain approval from the State Pollution Control Board or Department.

vi) Copy of registration in accordance with MSME Act 2006

Quality Control & Standards required for Absorbent Cotton Manufacturing Business

Accordingly, this product falls under the drug act, so it should be manufactured in accordance with Indian Pharma (I.P.) or British Pharma (B.P.) specifications.

The manufacturing process of Absorbent Cotton Manufacturing Business

Raw Cotton
Raw Cotton (Pic credit: pixabay)

The process of manufacturing can be broken down into the following steps:

 (i) Opening and Cleaning:

Using a Crighton opener, raw cotton bales are opened, loosened, and dust and other debris are removed. After being shipped to Kier, the cotton is steam boiled for about three-four hours with chemicals such as Caustic Soda, Soda Ash, Detergents, etc. In this process, natural waxes and oils are removed and foreign material remaining after cleaning is softened and disintegrated.

(ii) Washing:

Cotton that has been boiled is removed from the Kier and sent to tanks to be washed.

(iii) Bleaching:

Since the cotton is not of good color, it is bleached using chemicals such as hydrogen peroxide or sodium hypochlorite. Bleaching not only helps whiten the color but also improves its wettability, as well as aids in the disintegration of any remaining foreign materials.

(iv) Alkali Removing:

A second wash is performed to remove the chemicals from the bleached cotton. To neutralize excess alkali, a small quantity of sulfuric acid is added as well. Water is then removed from cotton by passing it through a hydro extractor. Following that, it is sent to a machine for opening wet cotton.

(v) Drying:

The cotton thus opened then goes through a drier. Where there is no drying machine, the cotton is exposed to the sun to dry. However, this method has a limited capacity aside from mixing the cotton with airborne dust.

(vi) Lapping:

Cotton is dried and then sent to the blow room, where it is opened thoroughly and rolled up into laps.

(vii) Carding:

The laps are then fed into a carding machine, where the layers of cotton are thinned.

(viii) Rolling:

Under these laps, the paper is inserted, and the cotton is simultaneously rolled up and compressed.

(ix) Weighing and Cutting:

Following that, each roll is weighted according to its size. Once the cut rolls have been labeled and weight marked, they are then packed in polythene rolls and sent for final packing.

Absorbent Cotton Project Report/Economics of Absorbent Cotton Manufacturing Business

Land and Building

Total 1000 Sq. Meters on rent: Rs. 15,000

Machinery and Equipments

(i) Willow / Opener Machine: Rs. 16,000

(ii) Kier Compartment: Rs. 1,80,000

(iii) Wet Cotton Opener: Rs. 36,000

(iv) Hydoextractor: Rs. 65,000

(v) Drying Chamber: Rs. 3,28,800

(vi) Racking Tesure Machine: Rs. 57,600

(vii) Finisher, Scripture with Lap Former: Rs. 3,34,800

(viii) Cardest Heavy Duty Semi high speed: Rs. 1,56,000

(ix) Packing Machine: Rs. 22,200

(x) Circular Cutting Machine: Rs. 11,000

(xi) Carding Machine: Rs. 24,000

(xii) Coal Fired Boiler ( Cap:750 Kg./ hour): Rs. 2,75,000

(xiii) Testing Equipments, weighing scale, chemical balance, pH meter, Soxhlet extractor, Crucible, Furnace etc.: Rs. 60,000

(xiv) Office Equipment & Furniture: Rs. 50,000

Sub-Total: Rs. 16,16,400

(xv) Electrification & Installation charges @ 10% of the cost of Machinery & Equipments: Rs. 1,61,640

(xvi) Preoperative Expenses: Rs. 25,000

Total: Rs. 18,03,040

Or say: Rs. 18,03,000

(c) Raw Materials per Month:

(i) Raw Ginned Cotton: Rs. 3,27,250

(ii) Comber or Mill Waste Cotton: Rs. 1,10,880

(iii) Soda Ash: Rs. 19,250

(iv) Caustic Soda: Rs. 32,256

(v) Bleaching Agents: Rs. 35,875

(vi) Wetting Agents i.e. Lisapol etc.: Rs. 12,000

(vii) Packing Materials viz. Paper , Gunny Bags, Gum, Labels etc.: Rs. 58,000

Total: Rs. 5,95,511

Salary & Wages per Month: Rs. 57,000

Utilities per Month: Rs. 1,37,000

Other Expenses per Month: Rs. 35,700

(g) Working Capital for One Month (c+d+e+f): Rs. 8,25,211

(h) Working Capital for three Months: Rs. 24,75,633

Or say: Rs. 24,76,000

(i) Total Capital Investment(b+h): Rs. 42,79,000

Financial Analysis

Cost of production per Annum: Rs. 1,06,20,000

Turnover per Annum: Rs. 1,20,75,000

Net Profit per Year:

Net Profit = Total turnover – Total cost of production

= Rs. 1,20,75,000 – Rs. 1,06,20,000

= Rs. 14,55,000

Profit Ration on Sales:

Profit Ratio on Sales = Net Profit/Total turnover x 100

= Rs. 14,55,000/ Rs. 1,20,75,000 X 100 = 12.04%.

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Profit in Absorbent Cotton Manufacturing
Profit in Absorbent Cotton Manufacturing (Pic source: pixabay)

Rate of Return (ROR) on Total Capital Investment:

= Net Profit per annum/Total Capital Investment x 100 = Rs. 14,55,000/ Rs. 42,79,000 X 100 = 34%

Break Even Analysis: Fixed Cost/Fixed Cost + Profit X 100 = Rs. 11,63,000/ Rs. 11,63,000 + Rs. 14,55,000 X 100 = 44.42%.

Conclusion of absorbent cotton manufacturing

As a whole, the project discusses the scope and viability of the Trading industry, especially its technical, financial, and market potential. Besides providing sufficient funds to repay the loan, the project will also produce a good return on investment.  This project is capable of generating jobs for 5 and above when analyzed from the social and economic perspectives. It will serve the needs of trading and thus assist the other businesses in servicing the industry by increasing their production and service offerings. Therefore, employment and income generation are more cyclical. We can therefore conclude that the project is technically, socially, and commercially viable.



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