Jute Rope Project Report, Manufacturing Plan

Introduction To Jute Rope Project Report, Manufacturing Business Plan: If you are willing to initiate a jute rope or jute twine manufacturing business, then this article includes information about how to start the business comprising jute rope or Sutli manufacturing process, required raw materials, expenses, and essential machinery.

Jute is a natural product and an eco-friendly fiber. It is famous as a golden fiber for its extensive characteristics such as good tensile strength, silkiness, low extensibility, long stability, is heat resistance, luster, and long-staple lengths. Presently, India, China, and Bangladesh are the three countries that are majorly jute-producing places in the world.

A Guide to Jute Rope Project Report, Manufacturing Business Plan, and License

If you dwell in a jute-producing area, then it is recommended to start a jute twine-making business with low capital. Not only these advantages, the business demands very little capital and area for operation.

Market potential of Jute Rope Manufacturing Business

Jute Rope Project Report
Jute Rope Project Report (Pic credit: pixabay)

Generally, the jute segment has a significant role and contributes to the economy of any nation. With jute, we can have some other important value-added products. They are carpet, apparel, composites, decorative, upholstery furnishings, fancy non-woven for new products, decorative color boards, etc.

Traditional products chiefly contain Hessian, Carpet-backing cloth, and sacking and diversified items include blankets, decorative fabrics, gift articles, shopping handbags, and wall hangings.

According to the quality and thickness, we have three different types of jute twines one can manufacture. They are basic twine, export and the last one is sacking twine. The general type of twine is used for packaging purposes. However, others are significant ingredients in producing fishing nets, clothes, carpets, etc. Besides, the various types of jute ropes are gaining great potential in the export market too.

Business plan for starting Jute Rope Manufacturing

Preparing a business plan is necessary. Irrespective of the size of any business, craft a specific business plan. Mainly, you have to note down what particular type of jute rope you are interested to manufacture. When you plan the various types, next determine the production capacity. Accordingly, you must arrange your unit and monitor all the financial aspects. Apart from all these aspects, select a marketing plan for your business.

License approvals required to start Jute Rope Manufacturing Business

Below is the list of approval required to start the Jute Rope Manufacturing Business in India.

  • Register your business identity
  • MSME registration
  • GST registration
  • ROC
  • Get the PAN Card
  • Registration of firm
  • Shop Act License
  • IEC Code
  • Export License
  • Fire and Safety
  • ESI
  • PF
  • No Objection Certificate from pollution board
  • Trade license from local municipal authority

Area required for establishing the Jute Rope business unit

When you do not have your own space for establishing the unit, then it is recommended to choose a rental location. It will support in reducing the startup investment in case the land is owned by you. While deciding the location, ensure that the power and water provision is there. Also, check the distance from closely located market and if the transport facilities are there or not. Commonly, about 800 sq. ft. area is sufficient for starting a small unit.

The machinery required for starting Jute Rope Manufacturing Business

We have mentioned the essential and primarily used machinery here for your convenience.

  • Fiber extraction machine
  • Fibre carding machine
  • Rope finishing M/C 
  • Automatic feed rope making
  • Semi-auto twisting machine
  • Hand making coil winding M/C
  • Weighing scales, etc.

Raw materials required for Jute Rope Manufacturing Business in India

The basic raw material includes two entities. They are raw jute and packaging constituents. The manufacturing process is simple. It does not demand skilled workers. The company which supplies the machine could be requested for providing some initial training regarding the operation to the staff.

The manufacturing process of Jute Rope

in case if you miss this: Sandalwood Oil Project Report.

Jute Rope
Jute Rope (Image source: pixabay)

In this method, long jute stalks are sent through pinned roller at a higher speed. Later they are cut into an entangled mass of equal length and are arranged in the form of a ribbon that is uniform in weight per unit length. Some of the common manufacturing stages include:

  • Fiber extraction
  • Carding of extra fiber
  • Spinning
  • Converting of spun jute yarn into sutli/rope.
  • Sutli/rope coiling
  • Finishing
  • Weighing and packing

Normally, jute rope making is a very easy business for the beginning. Moreover, there are several facilities you can have to grow this business in the future.

Industrial Manufacturing of Jute Rope

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Manufacturing of Jute Rope
Manufacturing of Jute Rope (Pic source: pixabay)

Jute passes through three steps: Breaker carding, inner carding, finisher carding.

Breaker carding: Root cutting is essential before introducing it into the manual feed breaker machine.

Inner carding: In this process, jute will be softened after it is gathered by hand-feeding with a suitable weight.

Finisher carding machine: This machine will make the sliver more uniform and regular in terms of the length and weight obtained from the Breaker carding machine. The Finisher carding machine is similar to the Breaker Carding Machine but it includes pair of rollers, pinning arrangement, staves, and speed. Around 4 -12 slivers are obtained from the Breaker carding machine and are fed on the finisher machine.

Quality control and specifications in Jute Bag Making

IS: 6753- – 1981 is for the fertilizers

IS: 8069- – 1981 is for the pesticides

HDPE woven sacks can also be manufactured according to the need and major customers.

Financial aspects in Jute Rope Making business

A: Fixed Capital:

Land & Building:

Workspace 1200 sq. meters on long-term monthly rental basis Rs. 1,800

Plant and Machinery:

  • Wooden Printing Table: Rs. 25,000
  • Screen of Diff. Design: Rs. 10,500
  • Rubber Wiper: Rs. 1,250
  • Dye Paste Stirrer: Rs. 1,4400
  • Water Drum: Rs. 3,800
  • Cottage Steamer: Rs. 16,500
  • Tubes, Steel Spoons, Mugs, Bucket, Roper, Clips, Stools etc.: Rs. 6,800

Total: Rs. 78,250.

Stitching Section:

  • Lock Stitch Machine: Rs. 28,200
  • Wooden Working Table: Rs. 4,000
  • Cutting Table: Rs. 1,800
  • Electric Fittings: Rs. 4,500

Scissors, Measuring tape, and other Equipment: Rs. 2,800

Total: Rs. 41,300

Total Machinery: Rs. 1,19,550

Furniture and Fixture:

Office furniture like almirah, table, chair, rack, etc. Rs.12,500

Total non-recurring expenditure/ fixed.

Capital: Rs. 1,32,050.

Working Capital per month:

Monthly expenses for Salary & Wages:

Manager cum Supervisor: Rs. 3,000

Clerk cum-Accountant: Rs. 2,000

Salesman: Rs. 4,000

Peon/ Chowkidar: Rs. 1,000

Master Printer/ Designer: Rs. 2,500

Master Cutter: Rs. 2,200

Stitching Machine Operator: Rs. 9,000

Skilled Printer: Rs. 6,000

Unskilled Worker: Rs. 6,000

Sum: Rs. 35,700

Add: Perquisite @ 20%: Rs. 7,140

Total: Rs. 42,840.

Raw Material Consumption per month: Rs. 1,08,150

Monthly Other Expenses: Rs. 8,800

Total Working Capital per month: Rs. 1,59,790

Total Working Capital for 3 months: Rs. 4,79,370

Total Capital Investment: Rs. 6,11,420.

Financial Analysis:

Cost of Production per year:

  • Total Recurring Expenditure: Rs. 19,17,480
  • Depreciation on Plant & Machinery @ 15% p.a.: Rs. 17,933
  • Depreciation on Furniture @ 10% p.a.: Rs. 1,250
  • Interest on total Capital Investment @ 12% p.a.: Rs. 73,370

Total: Rs. 20,10,033.

Turnover per year:

Printed & Decorated Jute Rope: Rs. 26,25,000

Total Turnover (incl. tax): Rs. 26,25,000

Net Profit per year:

Turnover per year – Cost of production per year = Rs. 26,25,000 – Rs. 20,10,033 = Rs. 6,14,967

Profit Ratio on Sale = 6,14,967 x 100/26,25,000 =23.43%

Rate of Return = 6,14,967 x 100 / 6,11,420 =100.58%.

Break Even Point Analysis:

Fixed Cost

  • Depreciation on Plant & Machinery: Rs. 17,933
  • Depreciation on Furniture & Fixture: Rs. 1,250
  • Interest on Total Capital Investment: Rs. 73,370
  • Rent: Rs. 21,600
  • Insurance: Rs. 18,000
  • 40% Salary & Wages: Rs. 2,05,632
  • 40% of other expenses excluding rent & insurance: Rs. 42,240

Total: Rs. 3,80,025

Beak Even Point = Fixed Cost x 100/Fixed Cost + Profit = 3,80,025 x 100/3,80,025+6,14,967 = 3,80,02,500/9,94,992 = 38.19%.

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