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PROJECT REPORT

ON
SURGICAL Syringe and ABSORBENT COTTON

PRODUCT :Syringe and SURGICAL ABSORBENT COTTON.

SCOPE OF MARKET
Although there are many units in the country engaged in the manufacture of syringes, there are
few units in organized sector, who are manufacturing all glass syringes in India. They all are
using pyrex glass for the manufacture of syringes. Earlier there were very few units engaged in
the manufacture of plastic syringes but with the rapid increase in demand for syringes, the plastic
syringes making units are also growing. The main factors governing the demand of plastic
syringes are given below:
a) Expansion in medical facilities resulting in an increase in the number of hospitals,
dispensaries etc.
b) Increased turnover of medical personnel on account of expansion in medical institutes,
colleges, training programmes.
c) Performance for injection treatment to oral treatment because of its greater
effectiveness and quicker results.
The use of plastic syringes is becoming more popular due to following advantages.
i) Plastic syringes have been lower co-efficient of thermal expansion and hence greater
accuracy.
ii) It is unbreakable.
iii) It is cheaper than any other material syringes.
In India there are several manufacturers of plastic syringes on small scale. Their installed
capacity has been described below:
Sizes of Syringes Installed Capacity (Annual)
2 C.C. 3.3 lacs dozens
5 C.C. 3.0 lacs dozens
10 C.C. 1.9 lacs dozens

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The above size of syringes are in general use. There is not any specific installed capacity for
other sizes because the manufacturer can produce any size of syringes according to market
demand.
The export of Indian make plastic syringes is possible in middle east and other countries. The
efforts are also being made by the manufacturers to export their plastic syringes and the
favourable response is being received. It indicates that there is good export potential of this
product.
Due to the above salient features of plastic syringes, there is a good scope for this industry.
It is technically feasible to manufacture these plastic syringes on small scale basis. The minimum
viable capacity of such a unit is 500 syringes per day. The return on the total capacity investment
is about 35%. All the raw material and machineries are available indigenously. No foreign
collaboration is required for such unit.
SUGGESTED LOCATION : Major Centres in NER.
PLANT CAPACITY
1. 90,000 Nos. Syringes 5 C.C. capacity per annum.
2. 50,400 Nos. syringes of 2 C.C. capacity per annum.
3. 10,600 No.s of syringes of 1 C.C. capacity per annum.
PROCESS
i) Plastic materials in the form of granules (Raw metarials) is subjected to heat and

pressure in an extruder.
ii) Semi-molten plastic in extruder passed through the nozzle known as parison.
Adjustments have to be made in the machine to vary the wall thickness of the
parison.
iii) Suitable parison is then inserted in a female mould and air in blown into parison to
force the molten plastic against the sides of the mould.
iv) The material is then cooled before removal from the mould.
v) The article is then trimmed to remove flashes.
MACHINERY
Sl.No. Particulars Nos.
1. Bareel moulding machine 1
2. Nozzle plate and Cap making machine 2
3. Piston making machine 1
4. Blender 1
5. Grinder 1
6. Universal printing machine 1
7. Welding machine 1
8. Steriliser 1
9. Other assembling machine 1
10. Automatic packing machine 1
11. Moulds and other miscellaneous equipments
Total amount would be Rs. 6.30 lakhs

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INFRASTRUCTURE
The main infrastructural facilities required are:
Shed 1000 Sq.ft.
Power 20 KW
Water 1000 Ltr. Per day
TOTAL CAPITAL REQUAIREMENT
The project cost comprising fixed capital and margin money on working capital is Rs 19.43 lakhs.
( Rs. In lakh)
A. Fixed Capital:
Land (1000 M2) 4.00
Building (Factory, office etc.) 6.00
Machinery 6.30
Miscellaneous fixed assets 1.50
Preliminary and pre-operative expenses 1.20
_____
Total (A) : 19.00
=====
B. Working Capital:
Raw materials & packing materials 3 month 1.05
Finished goods 7 days 0.21
Working expenses 1 month 0.18
Receivables 7 Days 0.28
_____
Total (B) 1.72
=====
Note: Working capital may be financed as:
Bank Finance Rs 1.29 lakh
Margin Money Rs 0.43.lakh
__________
Rs 1.72 lakh
==========
MEANS OF FINANCE
The project cost of Rs. 19.43 lakhs including margin money for working capital may be financed
as under:
Promoters Contribution (35%) Rs. 6.80 lakhs

Term Loan (65%) Rs. 12.63 lakhs


_____________
Rs. 19.43 lakhs
=============
OPERATING EXPENSES
The annual operating expenses are estimated at Rs.8.99 lakhs as given below:
(Rs. In lakhs)
1. Raw materials 4.20
2. Utilities 0.45
3. Wages & Salaries 1.50
4. Overheads 0.10
5. Selling expenses @4% of annual sales 0.47
7. Interest 1.67
9. Depreciation @ 10% 0.60
Total: 8.99

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SALES REALISATION
Sl.
No.
Particulars Annual Sales
Realisation
(Rs. in lakhs)
1. Receipt through sale of
90,000 Syringes 5 C.C. capacity
@ Rs.9/-each
8.10
2. 50,400 Syringes of 2 C.C. capacity
@ Rs.6/- each
3.02
3. 10,600 Syringes of 1 C.C. capacity
@ Rs.5/- each
0.53
Total: 11.65
PROFITABILITY
Based on the sales realization and the operating expenses, the profit at 100% capacity utilization
would be Rs. 2.66 lakhs per year. This works out to a return on investment of 14%. The unit will
break even 57% of the rated capacity.
HIGHLIGHTS
The major highlights of the project are as follows:
Total Capital Requirement Rs. 19.43 lakhs
Promoters contribution Rs. 6.80 lakhs
Annual Sales realization Rs. 11.65 lakhs
Annual operating expenses Rs. 8.99 lakhs
Annual profit (pre-tax) Rs. 2.66 lakhs
Pre-tax return on sales 23%
Break-Even Point 57%
No. of persons employed 6

1
PROJECT PROFILE
ON

SURGICAL ABSORBENT COTTON


1. INTRODUCTION
Absorbent Cotton is also known as Surgical Cotton or Cotton Wool and mainly used
for medical purposes in hospitals, nursing homes, dispensaries and at home (for first
aid) etc. because of its property of high fluid absorbency, it is better known among
masses as absorbent cotton. The raw cotton is processed by series of steps which
render the cotton hydrophilic in character and free from external impurities needed to
be fit for use in surgical dressings and personal hygiene. Apart from medical purposes
absorbent cotton is also used for making conventional type of sanitary napkins or
pads. Fairly good quality of absorbent cotton is also used for removing make-up and
dirt at beauty parlours.
2. MARKET POTENTIAL:
The demand of Surgical Absorbent Cotton is directly related with the increase in
population and expansion of public health services. The demand for Surgical
Absorbent Cotton increases with the increase in population and number of hospitals,
dispensaries, nursing homes, health care centers etc. Progressive increase in health
amenities offered by Government and coming up of new hospitals and health care
centres in private sector even at small towns are contributing to the growth of
absorbent cotton industry. Government hospitals and large nursing homes are the
largest consumer for cotton wool.
With the development of medical facilities and growing awareness towards personal
hygiene, the surgical 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.
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3. BASIS AND PRESUMPTIONS:
1. The estimates are drawn for a production capacity generally considered Technoeconomically
viable for model type of activity.
2. The costs in respect of land and building, machinery & equipments, raw materials
and the selling prices of the finished product etc. are those generally prevailing at the
time of preparation of the project profile and may vary depending upon various
factors from place to place and time to time.
3. The production capacity is based on single shift working for 300 working days per
annum.
4. Where as some names of manufacturers / suppliers of machinery and equipments, raw
materials are indicated at the end of the profile, these are by no means exclusive or
exhaustive.
4. IMPLEMENTATION SCHEDULE :
Every project requires some specific time for commercial production and are briefly
as under:Sl. No. Activity Expected time
1. Selection of Site 0-1 months
2. Preparation of Project Report 1-3 months
3. Provisional Registration 1 week
4. Financial Arrangements 3 6 months
5. Construction of Building & Working Shed. 3 6 months
6. Procurement of Machinery 3-5 months
7. Installation, electrification and commissioning of

machinery and other facilities


1-3 months
8. NOC from Pollution Control Board 1- 2 months
Some of the steps mentioned above will work simultaneously, hence total time for the
complete operation of project may taken 5 6 months.
5. TECHNICAL ASPECTS
i) Production detail & Process of Manufacture:
The process of manufacturing consists of various steps, as follows:
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a) Opening and cleaning of Raw Cotton:
Raw cotton received in bale or otherwise is opened in opener where it is
loosened and simultaneously dust / foreign particles are also removed. Loosened
cotton is then put into a keir where chemicals such as caustic soda, soda ash,
detergent, etc. are added along with adequate water and steam boiled for about 34 hours. By this process most of the natural waxes and oils are removed while
remaining foreign matter get soften and disintegrated. The treated cotton is
transferred to washing tanks where it is washed thoroughly.
b) Bleaching:
Washed cotton is bleached to remove brownish colour developed due to
chemical treatment. Bleaching is done by using bleaching agent such as sodiumhypochlorite
or hydrogen peroxide. The bleaching process improves whiteness,
wetting properties and assists in disintegration of any remaining foreign
materials.
c) Removal of Chemicals:
The bleached cotton is thoroughly washed again to remove the chemicals. A
little quantity of dilute hydrochloric acid or sulphuric acid is also added to
neutralize excess alkali. If required, again washed with water. The water of
cotton is removed with the help of hydro-extractor. It is then sent to a wet-cotton
opening machine.
d) Drying:
The cotton so obtained is dried by passing through dryer or alternatively
subjected to sun drying where provision for dryer is not there.
e) Lapping:
The dried cotton is sent to blower room where it is thoroughly opened and made
into laps.
f) Carding:
The laps are then fed into carding machine wherein cotton is warped around
rollers in thin layers.
g) Rolling:
Cotton so obtained is compressed and rolled into suitable role size along with
packaging paper.
h) Weighing and cutting:
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The rolls are then weighed and cut according to required weight and sizes and
labeled properly before packing in polythene sheets and heat sealed.
ii) Quality Control & Specification:
This item is covered under Drug Control Act. Hence, it should be manufactured to
meet its requirements.

iii) Production Capacity ( per annum )


iv) Motive Power Requirement:
The total connected load of the unit is approx. 120 KWH on assuming 60%
utilization of connected load.
v) Pollution Control:
NOC from Pollution Control Board is necessary to be obtained before starting the
industrial activity. Suitable equipments are to be provided to check the harmful
and non-permissible contents in the effluent. Hence, effluent water may be treated
suitably to remove harmful contents before discharging the effluent.
vi) Energy Conservation:
Suitable provisions like shunt capacitor for electric motors, thermal insulation, etc.
are required to save energy. All energy devices are required to be used with care
and judiciously.
6. FINANCIAL ASPECTS:
(A) Fixed Capital:
i) Land and Building :
Land 550 Sq. Mtrs. Rs. 2,75,000/Total Built up Area Rs. 5,00,000/a) Quantity : 300 M.T.
b) Value (Rs.) : Rs. 21.47 lacs.
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(Working Shed, Office, Stores etc.) 450 Sq. Mtrs.
Total: Rs. 7,75,000/ii) Machinery and Equipment :
Sl.
No.
Description Qty
(Nos.)
Value
(Rs.)
1 High pressure Keir(MS) inside coated with acid resistant epoxy
coating, fitted with pump, steam pipe, capacity 2000 kgs.
Charge of cotton with all accessories
1 1,70,000/2 Carding machine (Revolving flat high production) 1016 mm
width with dust extruder, electronic stop motion, brush rolls,
stripping brush rolls and other accessories.
2 7,50,000/3 Two compartment continuous cotton dryer with steam heating
arrangements at 100 psi provided with trolley, electrical heaters
and electric control panel
2 6,60,000/4 Porcupine cleaners 1200 mm working with 406 mm
diporcupine type cylinder with strikers having two striking
edges, centrally adjustable grid bars and reduction gear, electric
motor(5 HP) for materials transport with accessories.
2 2,50,000/5 Centrifugal Hydro-extractor with S.S. Basket dia 1000 mm

fitted with motor and other accessories 1 90,000/6 Wet cotton opener working width 1000 mm fitted with motors
and accessories 1 48,000/7 Vertical opener with 7 steel discs and three separate centrally
adjustable settings for beater and grid bars fitted with motor 5
HP complete with accessories
1 1,00,000/8 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 holder for continuous operations with 10 HP motor
starter etc.
2 6,50,000/9 Rolling and winding machine 1320 mm on face, complete with
motor starter and other accessories 2 60,000/10 Small band saw type machine with motor for rolls cutting 2 17,000/11 Air compressor for lapping machine 1 13,000/12 Coal/wood fired boiler 1000 kg/ hrs. Evaporation capacity, 50
psi complete with feed pump and accessories 1 1,95,000/13 Water overhead tank of 10,000 liters capacity and tube well
fitted with accessories
L.S. 80,000/6
14 Water treatment plant for treating process water required for
boiler and keir
L.S. 85,000/15 Water and pipe connection with insulation, various M.S. tanks
and concrete tanks for washing purpose etc. L.S. 47,000/16 Weighing scale, sealing machine and balancing equipments - 5,000/17 Testing equipments such as pH meter, Soxhletextractor,
chemical balance, crucibles, furnace, oven, etc. - 1,20,000/18 Electrification and installation charges - 3,00,000/19 Pollution Control and Energy Conservation equipments. - 1,50,000/Total 37,90,000/iii) Office Furniture & Equipments 50,000/iv) Pre-operative Expenses 30,000/Total: (i + ii + iii + iv) 46,45,000/(B) Working Capital (Per Month):
(Recurring Expenses) ( per month )
i) Staff and Labour ( per month) ( in Rs.)
Sl. No. Designation No. Total Salary
1 Manager 1 10,000/2 Chemist 1 8,000/3 Clerk cum Accountant 1 5,000/4 Supervisor 1 5,000/5 Storekeeper 1 4,000/6 Blow Room Operator 1 4,000/7 Boiler Attendant 1 4,000/-

8 Skilled Worker 20 70,000/9 Unskilled Worker 34 1,02,000/10 Packers 5 15,000/11 Peon cum Watchman 1 3,000/Sub- Total 2,30,000/Perquisites @ 15% 34,500/Total 2,64500/ii) Raw Material:
Sl. No. Particulars Quantity
(Kg.)
Rate
(Rs./Kg.)
Value (Rs.)
1 Raw Ginned Cotton 27,500 32 8,80,000/2 Caustic Soda 850 18 15,300/3 Soda Ash 550 11 6,050/4 Bleaching Agent 550 6.5 3,575/5 Misc. Chemicals LS - 26,000/7
6 Packing paper, labels, Gum,
Polyethylene sheets, sacks, etc.
LS - 50,000/Total 9,80,925/iii) Utilities:
Sl. No. Particulars Quantity Rate Value (Rs.)
1 Coal for boiler 45 MT 1,800 /MT 81,000/2 Electricity 17,000 KWH 4.5/KWH 76,550/Total 1,57,500/iv) Other Contingent Expenses:
Sl. No. Description Amount in Rs.
5. Postage and stationery : 1,000/6. Telephone : 1,000/7. Sales Expenses : 15,000/8. Transport : 10,000/9. Consumable Stores : 3,000/10. Repair & Maintenance : 2,500/11. Insurance : 1,500/12. Misc. expenditure : 1,500/Total : 35,000/v) Total Recurring Expenses. Amount in Rs.
a. Salary & Wages : 2,64.500/b. Raw material : 9,80,925/c. Utilities : 1,57,500/d. Other contingent expenses : 35,000/Total: : 14,37,925/Total Working Capital for 3 months = Rs. 14,37,925/- X 3 = Rs. 43,13,775/7. Total Capital Investment: Amount in Rs.
a) Fixed Capital 46,45,000/-

b) Working Capital for 3 months 43,13,775/Total: 89,58,775/8


Machinery Utilization:
Extrusion process will be taken as the bottle neck operation for this project.
8. Financial Analysis:
(A) Cost of production (Recurring Expenses) ( per annum )
S. No. Particulars Amount (Rs.)
1. Total Recurring Expenditure 1,72,55,100/2. Depreciation on Machinery & Equipments @ 10% 3,79,000/3. Depreciation on office furniture and equipments
@ 20%
10,000/4. Depreciation on Building @ 5% 25,000/5. Interest on Total Capital Investment @ 15% 13,43,816/Total : 1,90,12,916/(B) Turnover (per annum)
Sales proceeds as shown below:
Item Quantity (M.T.) Rate (Rs.) Value (Rs.)
Absorbent Cotton 300 MT Rs. 71000/-MT 2,13,00000/Cotton Waste 25 MT Rs. 7000/-MT 1,75,000/Total: 2,14,75,000/(C) Net Profit (Per Annum):
Turn Over (-) Cost of Production
2,14,75,000/- (-) 1,90,12,916/- Rs. 24,62,084/(D) Net Profit Ratio (Per Annum):
Profit/annum X 100 24,62,084/-X 100
= 11.46%
Sales Per Annum 2,14,75,000/(E) Rate of Return:
Profit/Annum X 100 24,62,084/- X 100 = 27.48%
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Total Capital Investment 89,58,775/BREAK EVEN POINT:
Fixed Cost (Per Annum): Amount in Rs.
1. Depreciation on Machinery & Equipments, Building, Office
Equipments
4,14000/2. Interest on Total Investment @ 15% 13,43,816/3. 40% salary and wages 12,69,600/4. 40% of other expenses 1,68,000/5. Insurance 18,000/Total Fixed Cost: 32,13,416/Break Even Point:
Fixed Cost X 100 Rs. 32,13,416/- X 100
= 56.61%
Fixed Cost + Profit Rs. 32,13,416/-+ Rs. 24,62.084/9. Names and Addresses of Plant & Machinery Suppliers:

Carding Machine:
1. M/s. National Machinery Manufacturers Ltd.,
P.B. No. 3, Thane 300 601.
2. M/s. Ramesh Safe and Carding Works,
Station Road, Panipat(Haryana)
3. M/s. Machinery Manufacturers Corporations, B61, Circular Garden Road, Kolkata 600 043.
Keir, Boiler, Hydro-extractor/Other Machinery:
1. M/s. Gujarat Machinery Manufacturers Ltd.,
187, Worli, Mumbai 400 018.
2. M/s. APV Engg. Co. Ltd.,
Jessore Road, Kolkata.
3. M/s. Bery Bros. Industries,
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6, Orion Engg. Works, Mumbai.
4. M/s. Associated Textile Engineering, Forbes
Street, Fort, Mumbai,
5. M/s. Textile Machinery Corporation Ltd.,
103, Brabourne Road, Kolkata.
6. M/s. Wanson India(P) Ltd.,
10 A, Horington Street, Kolkata.
7. M/s. Rajesh Engineering Works,
Asian Chemical Compound, Subhash Nagar, Jogesswari(E) , Mumbai.
8. M/s. Anu Designers and Fabricators,
C 1/12, GIDC Estate Opp. Ambikanagar Society, Odhav. Ahmedabad.
(Gujrat).
10. Names and Addresses of Raw Material Suppliers:
Ginned Cotton:
1. From Cotton Traders or locally available sources
Chemicals:
1. M/s. United Trading Company, 12/56,
Desh Bandhu Gupta Marge, Karol Bag, New
Delhi 110 005.
2. M/s. Vikas Chemicals, Tolak
Bazar, Delhi 110 006.
3. M/s. Continental Chemicals,
M-67, Street No. 4, Shastrinagar, Delhi- 110 006.
4. M/s. Navin Enterprises, 153,
Chandra Bala Estate, Building No. 2, Flat No. 4, 30 th Road,
Bandra, Mumbai 400 050.
5. M/s. Gujrat Industrial Chemicals Corporation, 37/39, S.S.
Gaikwad Marg, Dhobhi Talao, Mumbai 400 002.

PROJECT PROFILE
On

SURGICAL BANDAGE CLOTH /


SURGICAL BANDAGE
Manufacturing unit
By

K. KARUNAKARAN MEMORIAL CO-OPERATIVE


SPINNING MILLS LTD.
PUTHENCHIRA EAST. P.O., MALA, THRISSUR 680 682
PROJECT PROFILE FOR THE MANUFACTURE OF
Surgical Bandage Cloth / Surgical Bandages Making Plant
By the
K. Karunakaran Memorial Co-operative Spinning Mills Ltd., Mala, Thrissur

1. Product Description: Bandages are used extensively in


health care institutions.
The uses of bandages range from simple dressing of superficial
wounds to holding together
fractured bones or body parts for rehabilitation and recovery.

2. Rational:

There are 524 famous hospitals in the state apart


from small clinics and
public health centres in Kerala. All these health care institutions
need bandages to treat
their patients. All the bandage requirement of the State is met by
importing the product
either from other states and from abroad. The production of
bandages requires strips of
woven garment made from cotton yarn and this can be produced in
the Region since there
are textile factories which produce yarn or cotton fabrics.

3. Market Potential: The existence of a captive market for


bandages in the state is
obvious by the fact that all health care institutions use bandages
brought from outside the
State. Even if some health personnel resist in using locally produced
bandages, there will be

sufficient market to justify the establishment of a bandage


producing plant in the region.
At present there is no industrial units manufacturing surgical
bandage cloth in the state and
all consumption is met by importing the cloth from outside Kerala
viz., from Tamil Nadu,
Maharashtra and Gujarat etc. Hence, there is great potential for this
product in the state and
it is relevant that as forward integration of a spinning mill such
projects are inevitable for
healthy survival of the unit.
:2:

4. Source of Raw material: The main raw material is either

cotton yarn or
cotton fabrics. This raw material can be obtained from the mill itself
as it produces cotton
yarn.

5. Production Process & Technology: The process


of manufacturing
surgical bandages passes through the following stages: (a)
purchasing or weaving the
bandage cloth (b) clearing and removing of organic impurities (c)
washing and bleaching (d)
drying and calendaring (e) rolling and cutting and (f) packing.
Machines required for the plant include sizing machines, weaving
looms, rolling and packing
machines and compressors.

6. Estimated Investment: Rs.5.00 CRORE


7. SOURCE OF FINANCE

Rs.2.50 crore Grant from Government


Rs.2.50 crore from Kerala Medical Services Corporation Ltd. (If a tie
up can be worked out for
mutual benefit)

8. PROJECT LOCATION AND SOCIAL IMPACT

K. KARUNAKARAN MEMORIAL COOPERATIVE SPINNING MILLS LTD.,


PUTHENCHIRA
EAST.P.O., MALA, THRISSUR 680 682 is the first industrial project in
the name of the veteran
national leader K. Karunakaran. This will have social impact in
commemorating the States
beloved Leader.
:3:

9. Benefits to the States Economy:

(a) creates employment (direct and indirect),


(b) stimulates economic activities in cotton plantation, ginnery and
yarn production
(c) makes the State self sufficient in the production of this product
(d) creates the possibility of exporting surgical bandages to other
neighboring countries.
(e) ready availability of the quality product with lower price
Conatact TEXFED for further details
Disclaimer:
The findings contained in this project profile are based on the initial information collated through primary and secondary study,
which is only indicative and may not reflect the realities of an actual project. Reference herein to any specific commercial
product, process, service by trade mark, trademark, manufacturer, or otherwise, does not constitute or imply its endorsement,
recommendation, or favouring by TEXFED or any entities thereof.