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CHAPTER I

1 INTRODUCTION TO THE INDUSTRY

The Indian Autolooms industry is one of the oldest and most significant
industries in the country. It accounts for around 4 per cent of the gross domestic
product (GDP), 14 per cent of industrial production and over 13 per cent of the
country's total export earnings. In fact, it is the largest foreign exchange earning
sector of India. Moreover, it provides employment to over 35 million persons.

The Indian Autolooms industry is in a stronger position now than it was in the
last six decades. The industry which was growing at 3 - 4 percent during the last
six decades has now accelerated to an annual growth rate of 9 - 10 percent.
Considering the domestic availability of cloth, the per capita availability of cloth
is projected at 62.23 sq. meters. by the end of the Eleventh Plan period, as
against 39.17 sq. meters. in 2016-17, registering an annual rate of growth of
9.70 percent per annum. The per capita availability is estimated based on the
projected population and expected export trend.

It present, India ranks First in jute production (at 1,900 million kilograms),
Second in silk production (at 15 million kilograms of raw silk), Second in cotton
exports (at 2,000 million kilograms), Second in cotton production (at 2,700
million kilograms of cotton fibre), Fifth in man-made fibres (at 2,000 million
kilograms) and ranks Eighth in the total production of wool (at 51 million
kilograms) in the world.

The Autolooms Mills are the backbone of Tamil Nadu's industrial development
and are providing massive employment in the State predominantly spinning-
oriented. The State Autolooms industry has a significant presence in the national
economy also. There are 3069 large, medium and small spinning mills in India,
of which, 1889 are located in Tamil Nadu. The spinning mills in the State
comprise 18 Cooperative Spinning Mills (5 functioning), 17 National
Autolooms Corporation Mills (7 functioning) and 1854 Private Mills (including
23 Composite Mills). Those spinning mills provide employment for around 2.40
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lakh persons. The capacity of the spinning mills in the State is around 18.92
million spindles. The State produces about 1612 million kg. of spun yarn per year
and this is about 40% of the spun yarn produced per year in the entire nation.
The Power Loom Sector in Tamil Nadu
provides employment to around 9.14 lakh
workers. As against 19.03 lakh registered
power looms in India, 3.66 lakh are located in
Tamil Nadu and of that 42,566 are covered
under 164 Power loom Weavers Co-operative
Societies. During the year 2008-09,
these Societies have produced 1487.50 lakh meters of cloth worth around Rs.
246.09 Crores and the turnover was around Rs.253.50 Crores.

The processing sector determines the core product value, product quality and
has tremendous scope for innovations and control over the final output.
Processing is an important value-added segment in the Autolooms Industry.
There are about 10397 Hand Processing Units and 2510 Power Processing Units
in India, out of which 2614 Hand Processing Units and 985 Power Processing
Units are located in Tamil Nadu.

Tamil Nadu has the largest cotton Autolooms industry cluster in India which
contributes to 39 per cent of the total production in the country. The country's
largest Autolooms cluster, Tirupur, is also situated in Tamil Nadu.

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CHAPTER II

2. INTRODUCTION TO THE COMPANY

About the R.P. Autolooms


The products manufactured in R.P. Autolooms Cluster are cotton terry towels,
Shirts and bedsheets. The towels and bed sheets are renowned in the country and
have good market in India. The main raw material for the units is cotton yarn,
which is procured from local spinning mills and agents. The cost of energy
(electrical and thermal energy) as Percentage of manufacturing cost varies
between 8 and 10%.

Majority of the cluster units are of integrated type, where the raw material yarn
is processed in-house to the final product. The energy cost is second to the raw
materials cost. Majority of the units in the cluster are dependent on local/ run of
the mill technologies of low end and with little investment initiatives and
technology up-gradation.

In R.P. Autolooms produces the largest pool of skilled technicians, skilled


workers and Engineers in Autolooms Industry. Abundant availability of skilled
manpower makes R.P. Autolooms an ideal investment destination.

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CHAPTER III

3. EXPECTED LEARNING
The main energy forms used in the cluster units are grid electricity, wood, and
small quantity of coal. The electricity is used for power looms, doubling
machines, winding machines, hydro extractors, warping machines and lighting.
Wood is used as fuel for boilers, thermic fluid heaters, and chulhas for hot water
generation. The details of annual energy consumption of a typical unit having a
production capacity of 1, 20,000 kg of final product of the cluster are furnished
in the Table 1.1 below:

Table 1.1 Details of annual energy consumption of a typical unit

S.No. Parameter Unit Value

1 Electricity consumption kwh/annum 1,97,784

2 Wood consumption tonne/annu 144


m
3 Production kg/annum 1,20,000

Production process
The main operational process for production of towels and bed sheets in cluster
units are:

Doubling
In the Doubling process, thin single yarn is converted to double yarn for
strengthening the yarn by using doubling machine.

Yarn dyeing

Initially, the yarn is soaked in soap water for 24 hours to remove the dirt and
other foreign materials and after soaking, the yarn is taken for bleaching.
Bleaching is carried out by soaking the yarn in tanks mixed with bleaching
agents and after completion of the process; the yarn is washed with normal
water. The hang dyeing machine tanks are filled with required quantity of
normal water and required chemicals and dyeing agents are added.
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The temperature of the water is raised by oil circulation or direct steam
injection. Fire wood is used as fuel. The required colors are added to the yarn
and the dyeing process takes about 90 to 120 minutes per batch.

After dyeing, the yarn is washed with normal water, and the yarn is taken for
soaping for color fixation in hot water for about 20 minutes in hang dyeing
machines.

The water is drained to the waste drainage lines. The wet yarn is taken to hydro
extractors for removing the water in the yarn and taken for drying in the natural
sunlight.

Winding

The yarn after drying is taken for winding in which the yarn is wounded to
bobbins and cones. The winded yarn is taken for further process.

Warping

In warping, the winded yarn is wound to beams according to designed pattern


(customized designs). Then the beams are taken for Weaving.

Weaving

The beams, which are wound with yarn are taken and placed in power looms
where the designed pattern is already set. In power looms, the yarn is converted
to final product (Towel or bed sheets) by weaving.
The product obtained from weaving is taken for stitching and packing. The
general process flow diagram of a typical unit for production of towels and bed
sheets is furnished in Figure 1.1.

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SINGLE YARN
(Raw material)

DOUBLING MACHINES

REALING MACHINES

DYEIN
CHULHA MANUAL DYEING IN Drained water
HOT WATER

HYDRO EXTRACTORS
FUEL OPEN

WINDING MACHINES

To Drain
WARPING MACHINES

POWER LOOMS

STITCHING & PACKING

DISPATCH

Figure 1.1 Process flow chart of typical Autolooms unit


The production process as depicted above is similar for all Autolooms units in
R.P Auto Loom cluster. However, depending on type of product and product
quality, the above stated process flow varies as per the requirement of the
industry.

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Energy performance in cluster

Majority of the industries located in R.P. Autolooms are engaged in


manufacturing of towels and bed sheets. The main energy sources for R.P. Auto
Looms cluster units are electricity and fuels such as Wood & briquettes.
The wood and GN husk briquettes are used as fuel for boilers, thermic fluid
heaters and chulhas for hot water generation and electricity is used for operation
of prime movers of doubling machine motors, ID & FD fans, pumps, hank
dyeing machine drives, power loom drives, winding machine motors, etc.
Majority of the units in the R.P. Autolooms cluster are using wood for thermal
energy generation due to easy availability and economical point of view. Energy
cost is around 8 to 10 percent of manufacturing cost in typical manufacturing
unit, out of which the cost of electrical energy works out to 58 percent of the
total energy cost and remaining accounts for thermal energy.
In a typical Autolooms manufacturing unit annual consumption of electrical
energy and wood is 1,97,784 kWh and 144 tons respectively for average
production capacity of 1,20,000 kg of final product.

Specific energy consumption of final product


Specific electrical and thermal energy consumption in autolooms unit depends
upon the final product manufactured in that unit. The electrical and thermal energy
consumption of typical autolooms unit is 1.65 kWh per kg of final product and 1.20
kg of wood per kg of final product respectively (includes all colors dyeing in cold
water, medium temperature water and high temperature water)

Proposed equipment to be upgrade

Description of existing equipment

During energy audit studies in various autoloom industries in R.P. Autolooms


cluster, it was observed that about 1200 power loom in R.P. Autolooms cluster.
All power looms are of shuttle type and are too old. These power looms are used
for weaving terry towels and bed sheets. In the present conventional shuttle
looms, it is necessary to pass a shuttle weighing around half a kilogram through
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the warp shed to insert a length of weft yarn which weighs only few grams.
The shuttle has to be accelerated rapidly at the starting of picking cycle and also
to be decelerated, stopped abruptly at the opposite end. This process creates
heavy noise and shock and consumes considerable energy. Beat-up is done by
slay motion which again weighs a few hundred kilograms.

The wear life of the picker and checking mechanism is also limited due to heavy
shock. Due to the above reasons smooth sequence of weaving is disturbed which
affects the maximum running speed and hence machine production. In multi-
color weft insertion, drop box motion is attached which is also further limits the
speed of the machine.

The small weft package in the shuttle requires frequent replenishments and for
each loom stoppage there is a possibility of one defect. The probability of weft way
fabric defects are high to the tune of 70% in shuttle looms. Even in automatic
shuttle looms there is a chance of transfer failures and weft lashing in defects.

Role in process

The power looms are one of the most important equipment in producing of
cotton terry towels and bed sheets. The power looms are used for weaving the
dyed yarn to towels and bed sheets.

Baseline for existing equipment


Energy consumption for Power loom would depend on following:
• Load on Power loom
• Operational & maintenance practices

Design and operating parameter

Present conventional loom is operated for 12 hours in a day and average


electricity consumption is 34 kWh per day (8.5 kWh per loom for four
conventional looms) connected with 1 HP motor. The average production is 48
kg per day per machine. The power loom machines are operated in two shifts in
a day.
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Production cost per kg of final product

Production cost for various power loom machine of three typical units in the
cluster are separately furnished in Table 1.2 below:

Table 1.2 production cost by power loom machine


Production Production
Name of Cost (Including Production
cost for 4 Production
S.N unit wages, O&M, per day
looms cost/kg
o. power cost (kg/loom)
(`/day)
etc)(`./day)
1 Unit I 190 760 12.5 15.2
2 Unit II 182 728 11.9 15.3
3 Unit III 187 748 14.5 12.9

Barriers for adoption of proposed equipment

The technology and innovations in SMEs are generally different from that of
large firms. Technology in the SME sector has an increasingly complex or
combinative character, most of the SMEs units in R.P. Autolooms cluster are
labor intensive and utilize local resources. The SME entrepreneurs are generally
not willing to invest in state-or-art technology. Major barriers in the up-
gradation of technology in the cluster are non-availability of technology;
distrust on technology supplier, lack of awareness about energy efficiency
among small and medium enterprises, prevents them from adoption of energy
efficient technologies.

Technological Barriers

The major technical barriers that prevented the implementation of Rapier loom
are
• Lack of awareness and information about the rapier loom and its benefit
• Absence of local Rapier loom supplier
• Dependence on local equipment suppliers, whom doesn’t have technical
knowledge about rapier loom and its proper installation
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Financial Barrier
Implementation of the proposed project activity requires investment of 49.81
lakh per unit. Such investment is not commonly seen in the cluster units for
energy efficiency improvement. Further, from the business perspective of SMEs,
it is more viable, assured, and convenient to invest on project expansion for
improving the production capacity or quality, rather than make piecemeal
investment in retrofit and replace options for energy savings.

In view of this and given the limited financial strength of the autoloom mills, it
is evident that the owners would not like to take the risk and invest in energy
efficiency measures. However, the financial attractiveness of the project activity
may motivate the owners to move forward in taking up initiatives in energy
conservation and efficiency.

Skilled manpower

The non-availability of skilled manpower having awareness about energy


efficiency and related issues in the cluster is one of the major barriers. Lack of
skilled manpower for operation and maintenance of the rapier looms is also one
of the major barriers that prevented the implementation.

Other barrier (If any)

The recent recession in European and other Asian countries and reduction in
market trend for the products in national and international markets was also one
of the major barriers for the proposed technology

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CHAPTER IV

4. DEPARTMENTS OF THE ORGANIZATION

SERVICE EQUIPMENT

The rapier looms offer unparalleled versatility when it comes to yarns. From the
finest counts of cotton to the thickest Industrial yarns and can handle anything
thrown at its negative rapier head. The soft-pick gear system enables smooth
transition of even highly fancy yarns like embroidery and slub. The rapier loom
is upgrade from shuttle-looms to the world of modern weaving system and
shutte-less weaving. Rapier looms has been designed to replace the old shuttle
looms without any major changes to the existing infrastructure. The Immediate
benefits of selecting rapier looms are

Figure 2.1 Rapier loom


• No need for new buildings or any new infrastructure.
• Could fit in place of your current shuttle-looms.
• Configured specially keeping in mind the skills of power-loom operators.
• No special training required for loom operators.
• Immediate reduction of man-power and laborers.

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• 20% subsidy under TUFS on our certified looms in addition to State
Government Incentives.
• Step-by-Step consultancy by our engineers to help you upgrade, install &
adapt to new machines.

Speed

The normal speed of the conventional power looms is around 120 RPM, where
as in rapier looms, the speeds up to 220 RPM (actual) can be attained and
coupled with high efficiencies of up to 95%, this machine gives up to 3 times
more productivity than the conventional power looms.

Color Weft Insertion

Rapier looms offers up to 8 Color Pick-at-Will weft insertions, so that weave the
fanciest of fabrics can be attained. The pick-at-will system is computerized, and
microprocessor controlled, hence letting the programmed sequences of more
than 1, 00,000 picks. Such technological edge will definitely give you an edge
in the market.

Start-Mark Prevention System

Rapier looms realizes the most delicate need of rapier users to prevent start-marks
in weaving. The custom designed ‘HT-Drive’ motor of the machine supplies more
than 150% torque for the first-pick to successfully prevent the start marks.

Lower per meter Costs

Considering 3 times more productivity with same space and even lesser amount
of man power along with lower power consumption, it is quite obvious that
rapier looms can offer lower production costs compared to conventional power-
looms or even rapier-shuttle change machines. Moreover, continuous weft-
insertion eliminates the need for investing in pirn- winding machines or even
extra operators.

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Lower Maintenance
Due to lower vibrations, there’s less wear-n-tear of rotating components and
bearings resulting in lower maintenance costs.

Also, centralized lubrication offered on the looms gives single-point lubrication


for the complete machine, thus further reducing the headaches of maintenance

Shedding

The rapier loom has the flexibility and can easily add and attach any of the
shedding motions available in the market including:
• Dobby
• Jacquard
• Cam Shedding
• Positive Cam: for Heavy plain fabrics (bolting cloth, tire cord cloth etc.)
• Negative Cam: for light sensitive fabrics

Take-Up

Universal 7-wheel Wretchet-n-Pawl semi-positive take-up is the most widely


used and well established Take-Up system offered in rapiers around the world.
The well-designed take-up is capable of handling a weft-density of 4-120 picks
per Inch.

Let-Off

The capability of rapier looms to weave any and all kinds of fabrics has been
created due to 3 different let-off options available with the machine depending
on your fabric.

Ruti-Type

For weavers of regular cotton-fabrics who’ve been used to highly versatile Ruti-
Type let-off.

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Microprocessor Controller

The heart of the complete control system, this microprocessor is one of the most
powerful control systems offered today for crank-type rapier looms. The system
can be programmed to output any kinds of pick programs. The standard
functions include:
• Constant monitoring of weft and warp yarn for breakages Cloth Length
Counter
• Pick-programming
• Weft-Controller

Exclusive Feature

For all power loom users, investing in Rapier looms normally require them to
erect a completely new building infrastructure. But, with AWT-250EX, we’re
proud to say that we are the only rapier-loom manufacturer in the world whose
machines can fit in the regular ’16-feet sheds’, thus eliminating the need for any
additional investment and hence brings down the up-gradation costs
considerably. In R.P. Autolooms Cluster units, majority of the units has power
looms, Considering the above facts and benefits of the rapier loom and for
reducing the overall production cost, it is suggested to replace power looms with
rapier looms. The details of production cost per kg in power looms is provided
in Annexure 1

Availability of equipment

The Rapier loom suppliers are available in Pune, which is 200 km from R.P.
Autolooms city and M/s Laxmi Shuttle less loom is also planning to appoint a
dealer at R.P. Autolooms.

Service/equipment providers

The service providers are available in Coimbatore. Details of service providers


are given in Annexure 6.

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TECHNOLOGY/EQUIPMENT SPECIFICATION

Benefits of rapier loom over power loom machine are shown in Table 2.1 below.

Table 2.1 Benefits of Rapier loom over conventional power loom

Conventional Power-Loom Rapier loom

55-65% Efficiency 85-95% Efficiency

Max. 110 RPM (eff. 70 RPM due to lower Max. 220 RPM (eff. 200 RPM due to Higher
efficiency) Efficiency)
Lower Output per shift Up to 2.5 times more output per shift

Lower Output per operator Up to 2.5 times more output per operator

High Labor requirement Low labor requirement

‘Kandi / Shuttle / Pirn-Winder’ machine & Shuttle less (No Kandi, No Pirn, No Pirn
operator required Machine Operator)
High Maintenance because of extremely high Extremely Low vibration, hence lower
vibration maintenance
Higher & Faster Wear-n-Tear of components Lower vibration leads to better & longer life

Light-Weight leading to shorter life and Heavy-Duty Structure to reduce vibration thus
higher leading
vibrations to longer life
Lower Output per unit area of floor space 3 times more output per unit area of floor space

High Production Cost Due to lower labor Lower Production Cost


productivity and lower efficiencies and higher Due to lower labor and lower area and lower
costs per meter of fabric. power requirement per meter of fabric.

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Table 2.2 specification of power loom for suitable machine

Parameter Details Parameter Details

Driving System By Push Button Control Weft Selection Electronic


On Both Side of Loom
Running Speed 160-180 RPM Weft Feed By Weft Feeder

Reed Space 200, 230, 250, 260, 280 cm Driving Motor 1.5 kW, 960 RPM

Weft Insertion Both Side Flexible Applicable Yarn Cotton, All Man-
Rapier System Made Yarns
Weft Colors * Up to 6 Colors Terry Loop By Movable Reed
Operated by
Solenoid.
Weft Detection By Piezo Electronic Terry Loop Height 0-10 mm
Slide Sensor
Shedding Motion * Electronic Cramming Motion Electronic
Dobby / Jacquard
Cloth Roll dia. 400 mm Control Panel LCD System
with Keypad For
Selvedge Independent Positive Beam Flange Dia. Ground Beam: 600
Leno - False Selvedge mm Top Beam: 750
Motion mm
Warp Yarn 2 Row Electrical Type Lubrication Centralized
zetection For Top Beam & Ground Lubrication System
Beam.
Braking System By Electromagnetic Brake Letting Off Motion Electronically
Operated for Ground
/ Pile Beam.

Superiority over existing system

The benefits of the rapier looms over conventional power looms are furnished in
Table 2.1 above:
• High productivity due to high speed and wider width of looms.
• Reduced labor cost due to higher allocation of looms and productivity.
• Defect free cloth for longer length.
• Better environment due to low noise level.
• Pirn winding process is eliminated
• Less value loss of fabrics.

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• Low consumption of stores and spares.
• Less space requirement per meter of cloth.
• More colors in weft direction (up to 12) by Pick and Pick method.
• Wider width fabrics and multi width fabrics can be woven,
• High degree of flexibility to suit a wide range of fibers and counts
• Easily adaptable for market trends
• Bigger flanges can accommodate 3 times more yarn
• Due to less beam changes lower down-time and lesser wastages
• Less dependency on labor skills
• Higher design capabilities due to microprocessor and electronic controls
• Easy maintenance and less work load for Jobbers

ECONOMIC BENEFITS

Technical benefits
Fuel saving

No fuel saving is possible by the implementation of the project activity.

Electricity saving

Total electricity saving would be about 38400 kWh (4800 kWh per loom for
eight looms) per year by the installation of proposed equipment.
Improvement in product quality
Proposed equipment has significant impact in improving the quality of the product.

Increase in production

The proposed equipment increased in production is almost 2.5 to 3 times per


loom.

Reduction in raw material consumption

Raw material consumption is reduces due to reduction in breakages of the


yarn in shuttle power loom.

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Monetary benefits

The monetary savings due to installation of one rapier looms is ` 3, 20,700 per
year and for 8 rapier looms, the monetary benefit works out at ` 25,65,600. The
monetary savings are due to result of power savings, less manpower cost,
improved quality, low maintenance, more output/machine etc. Detail monetary
benefit is given in Table 3.1 below:

Table 2.3 Energy and cost benefit of Rapier loom


S.No Parameter Unit Value
.
1 Present electricity consumption in power loom (4 kWh/day 34
Power loom @ 8.5 kW/loom)
2 Operational hours hours/day 12
3 Operational days per annum days/annum 300
4 Electricity consumption after installation of Rapier kWh/day 18.0
loom (1 repair loom is equivalent to 4 power loom)
5 Cost of electricity /kWh 2.425
6 Electricity Cost savings after implementation in lakh/year 11,700
7 Total monetary benefit per auto loom (Detail provided in lakh 3,20,700
in Annexure1)
8 Total monetary benefit (for 8 auto looms, detail in lakh 25,65,600
provided in Annexure1)

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CHAPTER V

5. ROLES AND RESPONSIBILITIES OF THE FUNCTIONAL MANAGERS

A functional manager manages and owns the resources in a specific department,


such as IT, engineering, employee relations, or marketing, and generally directs
the technical work of individuals from that functional area who are working on
the project. The degree to which a functional manager is involved in the project
depends on the form of organizational structure.
In a matrix organization, the functional manager shares responsibility for
directing the work of individuals with the project manager. In a projected
organization, the project manager does all of the directing. In functional
organization, the functional manager does all of the directing. It is the
responsibility of the functional manager to avoid any conflicts with the
functional manager and coordinate the respective needs regarding the use of
resources to complete the auto looms work.

The Roles and Responsibilities

• Assign specific individuals to the team, and negotiate with the project
manager regarding resources
• Participate in the initial planning until work packages or activities are
assigned
• Provide subject matter expertise
• Approve the final schedule during schedule development
• Approve the final project management plan during working management
plan development
• Recommend changes to the project, including corrective actions
• Manage activities within their functional areas
• Assist with problems related to team member performance
• Improve staff utilization

The teams are done planning. They start on Monday. It’s Friday and a new issue
has just emerged that the business identifies as the highest priority. The business
wants to release the product every month.
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The activities of a functional manager may include:

Fabrics are required for domestic market and for exports. Fabrics are made with
conventional power-looms. There are several disadvantages in these type of
weaving and fabrics made with automatic looms have improved quality, good
patterns, higher productivity which are required both by domestic users and
overseas buyers. There is a good potential for making the fabric with autolooms.

Modernization and upgradation are very critical in autoloom industry for


competing effectively in the changing market conditions. The complacency of
exporting autoloom products using conventional production methods would no
longer work in the changed environment. Weaving technology (fabric making)
in autoloom industry has undergone changes with reference to quality
requirements imposed by foreign buyers from time to time. The general
improvement in standard of living of the people, the technological upgradation,
identification of harmful chemicals and improved methods used for
manufacturing autoloom have resulted in adoption of latest technology in
autoloom fibers, yarns and fabrics. Adopting modern methods for converting
yarn into fabric has emerged as an essentiality in autoloom industry as the
conventional methods adopted in ordinary looms have become obsolete.

The decentralized power loom sector plays a pivotal role in meeting the clothing
needs of the country. The power-loom industry produces a wide variety of cloth,
both grey as well as processed. Production of cloth as well as generation of
employment has been rapidly increasing in the power-loom sector.

20
CHAPTER VI

6. FUNCTIONS OF THE DEPARTMENT


Environment Department

The grey yarn and dyed yarn of required count number is first converted into a
warp which will be used as longitudinal threads in weaving. For this, the yarn
which is in cone form will be orderly arranged in a creel numbering 500 to 1000
meters. If the yarn is in hank form, the hand to cone winding machine is used to
wind yarn on cones. The threads from the creel are taken through suitable guides
and tensioners and through condensing reed to a warp beam. Then, in a warping
machine, yarns are arranged in a mat form for facilitating the weaving process.

Weft Preparation

In weaving, we require (weft) cross wise threads with longitudinal threads.


Therefore, the crosswise threads are inserted as weft in Rapier looms through
double guided floating griper.

Process Weaving

The weaving process in the loom shed effects interlocking of two sets of
threads, one longitudinal termed as warp and other transverse, called as weft, to
manufacture a fabric on the looms. The weaving process is accomplished by the
operations of three primary loom motions, namely shedding, pricking and
beating up. In order to produce figured patterns of fabrics shedding devices like
dobbins and jacquards are attached to a loom.

Environment
Electricity: For operating the machinery the power load required is about 67 HP.

Water: Water is not required for process and required only for human
consumption.

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Improvement in working environment

As installation of Rapier loom eliminates Mechanical shock, Vibration and


sound etc., this may less the breakdowns and working environment may
improve.

Improvement in skill set of workers

The technology selected for the implementation is new and energy efficient.
The technology implemented will create awareness among the workforce
about energy saving.

Impact on wages/emoluments
No impact on wages or emolument of workers.
Reduction in effluent generation
The effluent generation due to implementation of the project activity is insignificant.
Reduction in GHG emission such as CO2, NOx, etc.
The major GHG emission reduction source is CO 2 and this equipment will
reduce electricity consumption. The total emission reductions are estimated as
32 ton of CO2 per annum due to implementation of the project activity.

Reduction in other emissions like Sox


No significant impact on SOx emissions.

Material Department

The raw material for weaving fabric is Cotton yarn. The yarn can be procured
from autoloom spinning mills or from yarn dealers located in Salem, Erode,
Tirupur Coimbatore. The yarn will be single or double. The regular counts used
in weaving are 17s, 20s, 40s, 60s and 80s. The yarn will be dyed according to
requirements.
Financial Department
Considering the above-mentioned assumptions, the net cash accruals starting
with 16.71 lakh in the first-year operation and gradually increases to 84.31 lakh
at the end of eighth year.

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Simple payback period
The total project cost of the proposed equipment is 52.49 lakh and monetary
savings due to reduction in electricity consumption is 25.66 lakh and the
simple payback period works out to be 2.04 years (25 months).
Net Present Value (NPV)
The Net present value of the investment at 10.00% works out to be 41.15 lakh.
Internal rate of return (IRR)

The after tax Internal Rate of Return of the project works out to be
31.48% thus the project is financially viable.

Return on investment (ROI)

The average return on investment of the project activity works out at 25.97%
for an investment of 52.49 lakh.
Table 3.1 Financial indicator of project
S. No Particulars Unit Value
1 Simple Pay Back period months 25
2 IRR %age 31.48
3 NPV lakh 41.15
4 ROI %age 25.97
5 DSCR ratio 2.05

Sensitivity analysis

A sensitivity analysis has been carried out to ascertain how the project
financials would behave in different situations like there is an increase
in electricity savings or decrease in electricity savings. For the purpose
of sensitive analysis, two scenarios are considered are.

• Increase in electricity savings by 5%


• Decrease in electricity savings by 5%

In each scenario, other inputs are assumed as constant. The financial


indicators in each of the above situation are indicated along with standard
indicators. Details of sensitivity analysis for different scenario are furnished in
Table 4.3 below:

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Table 3.2 Sensitivity analysis in different scenario
Particulars IRR NPV ROI DSCR
Normal 31.48% 41.15 25.97% 2.05
5% increase in electricity savings 33.86% 46.06 26.21% 2.15
5% decrease in electricity savings 29.08% 36.24 25.71% 1.94

As could be seen from the above table, though the project is highly sensitive to
electricity savings, DSCR works out to be 1.94 times in worst scenario, which
indicates the strength of the project.

Procurement and Implementation schedule

The project is expected to be completed in 8-10 weeks from the date of


financial closure. The detailed schedule of project implementation is furnished
in Annexure 5.

24
Annexure 1 Establishment of baseline and monetary benefits
S. No Parameter Conventional Auto Monetary
Power Looms Benefit
looms
1 No. of Looms 4 1 0
2 Power consumption of 8.5 18.0 0.0
each loom (kWh/day)
3 Total power consumption 34 18.0 38.8
(kWh/day)
4 Monetary benefit due to power - - 11700.0
savings per annum (@ 300
days per year)
5 Average production per 12 50 -
loom (12 hours/day) [kg]
6 Total production per day (kg) 48 50 -
7 Manpower 4 1 3
8 Manpower cost per month (`) 5000 7000 0
9 Total manpower cost (for 4 loom) 20000 7000 13000
10 Reduction in labor cost per annum - - 156000
11 Market price for the product per kg 96 105 9
12 Monetary benefit due to - - 135000
quality improvement (15000
kg per annum)
13 Maintenance Cost per loom/annum 6000 6000 0
14 Total Maintenance Cost for looms 24000 6000 18000

15 Total Monetary benefit per - - 320700


auto/rapier loom (annum)
16 Total Monetary benefit per - - 1282800
auto/rapier loom (annum)
17 Total monetary benefit for two 2565600
auto looms (4* 2 auto looms)
(annum)

25
Annexure 2 Process flow diagram

Yarn

Doubling Yarn

Dyeing & Washing

(Hang dyeing machine) (60 0C) (Hydro extractor)

Drying

Winding

Warping

Power looms

Stitching

Finished Product

26
Annexure 3 Technology assessment report

In the conventional shuttle looms, it is necessary to pass a shuttle weighing


around half a kilogram through the warp shed to insert a length of weft yarn
which weighs only few grams. The shuttle has to be accelerated rapidly at the
starting of picking cycle and also to be decelerated, stopped abruptly at the
opposite end. This process creates heavy noise and shock and consumes
considerable energy. Beat-up is done by slay motion which again weighs a few
hundred kilograms. The wear life of the picker and checking mechanism is
also limited due to heavy shock. Due to the above reasons smooth sequence of
weaving is disturbed which affects the maximum running speed and hence
machine production. In multi-color weft insertion, Drop box motion is
attached which is also further limits the speed of the machine. The small weft
package in the shuttle requires frequent replenishments and for each loom
stoppage there is a possibility of one defect. The probability of weft way fabric
defects are high to the tune of 70% in shuttle looms. Even in automatic shuttle
looms there is chance of transfer failures and weft lashing in defects.

27
Annexure 4 Detailed financial analysis of Rapier loom (8 nos) Assumptions

Name of the Technology Auto Looms (8 Nos.)


Rated Capacity NA
Details Unit Value Basis
Installed Capacity Nos. 8
No of working days Days 300
No of Shifts per day Shifts 1 (Assumed)
Proposed Investment
Plant & Machinery (in lakh) 49.19
Erection & Commissioning (in lakh) 1.80
Civil Work Lump sum 1.50
Total Investment (in lakh) 52.49
Financing pattern
Own Funds (Equity) (in lakh) 13.12 Feasibility Study
Loan Funds (Term Loan) (in lakh) 39.37 Feasibility Study
Loan Tenure years 5 Assumed
Moratorium Period Months 6 Assumed
Repayment Period Months 66 Assumed
Interest Rate % 10.00% SIDBI Lending
rate
Estimation of Costs
O & M Costs % on Plant & 4.00 Feasibility Study
Equip
Annual Escalation % 5.00 Feasibility Study
Estimation of Revenue
Monetary Savings per loom Loom 320700
No. of looms 8
St. line Depn. %age 5.28 Indian Companies
Act
IT Depreciation %age 80.00 Income Tax Rules
Income Tax %age 33.99 Income Tax

28
Estimation of Interest on Term Loan
Years Opening Repayment Closing Interest
Balance Balance
1 39.37 3.30 36.07 3.54
2 36.07 6.80 29.27 3.30
3 29.27 7.20 22.07 2.60
4 22.07 7.80 14.27 1.85
5 14.27 9.20 5.07 1.02
6 5.07 5.07 0.00 0.15
39.37

WDV Depreciation
Particulars / years 1 2
Plant and Machinery
Cost 52.49 10.50
Depreciation 41.99 8.40
WDV 10.50 2.10

Projected Profitability
Particulars / 1 2 3 4 5 6 7 8
Years
Revenue through Savings
Fuel savings 25.66 25.66 25.66 25.66 25.66 25.66 25.66 25.66
Total Revenue (A) 25.66 25.66 25.66 25.66 25.66 25.66 25.66 25.66
Expenses
O & M Expenses 2.10 2.20 2.31 2.43 2.55 2.68 2.81 2.95
Total Expenses (B) 2.10 2.20 2.31 2.43 2.55 2.68 2.81 2.95
PBDIT (A)-(B) 23.56 23.45 23.34 23.23 23.10 22.98 22.84 22.70
Interest 3.54 3.30 2.60 1.85 1.02 0.15 - -
PBDT 20.01 20.15 20.74 21.37 22.09 22.82 22.84 22.70
Depreciation 2.77 2.77 2.77 2.77 2.77 2.77 2.77 2.77
PBT 17.24 17.38 17.97 18.60 19.32 20.05 20.07 19.93
Income tax - 3.99 7.05 7.27 7.51 7.76 7.76 7.72
Profit after tax (PAT) 17.24 13.38 10.92 11.34 11.81 12.29 12.31 12.21

29
Computation of Tax `

Particulars / 1 2 3 4 5 6 7 8
Years
Profit before tax 17.24 17.38 17.97 18.60 19.32 20.05 20.07 19.93
Add: Book 2.77 2.77 2.77 2.77 2.77 2.77 2.77 2.77
depreciation
Less: WDV 41.99 8.40 - - - - - -
depreciation
Taxable profit (21.98) 11.75 20.74 21.37 22.09 22.82 22.84 22.70
Income Tax - 3.99 7.05 7.27 7.51 7.76 7.76 7.72
Projected Balance Sheet

Particulars / 1 2 3 4 5 6 7 8
Years
Liabilities
Share Capital (D) 13.12 13.12 13.12 13.12 13.12 13.12 13.12 13.12
Reserves & Surplus 17.24 30.62 41.54 52.88 64.69 76.98 89.29 101.51
(E)
Term Loans (F) 36.07 29.27 22.07 14.27 5.07 0.00 0.00 0.00
Total Liabilities 66.43 73.01 76.73 80.27 82.88 90.10 102.41 114.63
D)+(E)+(F)

Assets
Gross Fixed Assets 52.49 52.49 52.49 52.49 52.49 52.49 52.49 52.49
Less: Accm. 2.77 5.54 8.31 11.09 13.86 16.63 19.40 22.17
Depreciation
Net Fixed Assets 49.72 46.95 44.18 41.40 38.63 35.86 33.09 30.32
Cash & Bank Balance 16.71 26.07 32.56 38.87 44.25 54.24 69.32 84.31
TOTAL ASSETS 66.43 73.01 76.73 80.27 82.88 90.10 102.41 114.63
Net Worth 30.36 43.75 54.67 66.00 77.81 90.11 102.41 114.63
Dept equity ratio 2.75 2.23 1.68 1.09 0.39 0.00 0.00 0.00

30
Annexure 5 Details of procurement and implementation plan Project Implementation

Schedule

S. No Activity Weeks
1-2 2-4 4-6 6-8 8 - 10
1 Collection of quotations and
order finalization

2 Delivery
3 Commissioning and trial runs

Break up of process down time


Activities days
S.No. 1 2 3 4 5 6/7 8/9
1 Time required for
dismantling or re- location
of the existing looms
2 Civil works and curing
3 Erection
4 Commissioning and trial
runs

31
Annexure 6 Details of equipment and service provider
Equipment Service/technology provider
details
Laxmi shuttle less loom Pvt limited
21, Raja Industrial Estate, Saibaba colony,

Coimbatore, Tamilnadu INDIA


Rapier looms Phone: 91 (79) 2562-2510 / 2562-4393 / 2562-0604
Fax: 91 (79) 2562-2845

Ms. Hema (Mobile 09824083935)

32
CHAPTER VII

7. SWOT ANALYSIS

SWOT analysis of autoloom industries is made based on the different


parameters to enhance the use of e-commerce in Hand Loom business.

Strength

Globalization is the requirement of 20th century in autoloom industry which


affects the world’s economy. It results in fallowing down the communication,
production and transportation cost in autoloom industry. It creates the new
investment opportunities with new supplementary markets. Cost Effective: As
multiple autoloom industries have started doing their business with suppliers
through internet, it has observed that there is drastic reduction in the costs. No
middle man is required like a wholesaler, so no infrastructure is required and
also the cost taken by middle man is eliminated. The use of Ecommerce in
autoloom industry saves 3% to 15 % of their indirect cost.

No time constraints: As Sale and purchase of products happen through the


internet, there is no time restriction. Anyone can purchase any autoloom product
from any corner of the world. No particular time for shopping or for transaction,
customer can do it 24 by 7. Time saving: Ecommerce helps consumer to save
their time, as they can do money transaction from anywhere and whenever
required through internet.

Weakness

Fake websites: Lot of fake websites can be found on internet related to textile E-
business. These sites assures service guarantee for delivering a product. These
websites are the reasons to bring bad name for textile E commerce. Due to
which customers are losing faith on electronic transactions.

Limited bargaining: In textile business, customers are always habituated with


the bargaining of the product. Hardly any Textile E- business provides this
facility, where customers can chat and bargain with the company before fix the
order. Even many customers are not aware about such chat n bargain facility.

33
Long delivery timing: Autolooms companies generally prefer the third parties to
deliver an ordered product. They outsource such type of service providers. If
service provider is casual in nature, then there is a possibility of delaying a
product by few days. If customers address is wrong or at remote location, in
such cases the product are sent back to the seller and whole process of delivery
need to be repeated again. Limited sources for Advertising: Any business
requires the advertisement to grow. Whereas in e-commerce mass advertisement
is not possible. Majority of advertisement can be done through internet and for
the internet users only. Out of which very few are interested in paying full
attention for complete advertisement.

Opportunities

Opportunities Establishing Brand: In this age of fashion, everyone is searching


for the quality and strength through the name of company. In the world lot of
small autoloom start-ups are coming up. They have a great opportunity to
become an exemplary for their service and quality. This will help them to
establish their company brand worldwide. Increase in number of users: As there
is continuous increase in number of users for internet facility. Peoples are more
enjoying on-line Textile products shopping with family, friends etc. at their
home. Global Expansion: Any one can do Textile E-business at anywhere at any
time without any interruption. There is always a scope of new person to take
advantage of e-commerce. New person as well as existing person, who is not
user for e- business can be a part for regular expansion of e-commerce. Anytime
availability: Earlier because of day to day busy schedule one needs to plan for
Loom goods purchasing specially apparel purchasing. But because of e-business
now anybody can find time for their shopping at any time even at night time
also, just by clicking a mouse, the consumer can take tour of all the available e-
resources for purchasing of autoloom products. Scope of e-business growth:
There is a huge scope for e-business especially for Textile products and day by
day modern technology fulfilling the need base requirement for the growth of e
handloom business. Every day there are new designs are entering in market and
e-commerce is an area where anybody can promote new designs with proper
way of understanding.

34
Threats

Threats Competitors: As e-business is executed globally, instead of local


competition, the existence of global competition always there for e-
businessmen. Branded and Big companies have already stood with their names
in this field. Mostly the consumers are habitual for these companies with their
cost. Innovation: Present market is always in a search of new or innovative
Textile products, which always put a pocket money burden on consumer and
financial burden on manufacturer. Web Spoofing: All the customers are not very
well verse with the identification of fake websites. So, there is always chance of
web spoofing. In web spoofing customer always think that he or she is
accessing a genuine site. But, hackers redirect them for fake site to get their
confidential information. Privacy invasion: It occurs when personal details of
the consumer are exposed to the unauthorized party. This is carried out without
the knowledge of the user with the help of advanced computing technologies.
Customer has to submit the personal details while registering the e-commerce
web site. This data is transmitted over the network. During data transmission
the hacker can hack the personal information.

35
CHAPTER VIII

8. LEARNINGS AND OUTCOMES


According to the new Autolooms policy, the Government will endeavor to
achieve an export turnover of autoloom and apparels from the present level of
US $11 billion to US $50 billion of 2010 of which the share of garments will be
US $25 billion. This will provide a conducive environment to the Indian
Autolooms industry to realize its full potential and to achieve global excellence.

The Confederation of Indian Autolooms Industry (CITI, formerly known as the


India Cotton Mills Federation or ICMF) has envisaged an investment of
Rs140000 crores for developing technology and improving the value addition in
Autolooms industry and increase in the size of the industry from the $36 billion
to $86 Billion by 2010.

To achieve the target by 2010 the machinery required include Ring Spindles:31
million: shuttle less looms:100000: Knitting machines 10250 Woven cloth
processing 65 million sq. meters per day; knit processing 2 million kgs. per day
and sewing machines 2.3 million. To meet this the investments projected under
various sectors are shown below.
Projected investments under various sectors

Sector Investments

Spinning 37000

Weaving 25000

Knitting 3000

Processing 50000

Garmenting 25000

Total 140000

Weaving requires additional investment and more and more auto looms have
to be installed
36
Cost of equipment implementation
Cost of equipment

The total cost for installation of 8 nos Rapier loom is estimated at ` 50.99 lakh,
which includes, Panel, switches, cabling etc.

Other costs

The total cost of implementation of the proposed rapier loom is estimated at `


52.49 lakh. The above cost includes cost of equipment/machinery, cost of
fabrication (and/or) commissioning charges and the details are furnished in
Table 4.1 below:

Table 4.1 Details of Project cost


S.No Particular Cost ( in` lakh)
1 Auto looms cost and compressors 49.1
2 Panel, switch & cabling, Elec.modi etc 1.80
3 Civil Work 1.50
4 Total Cost 52.49

Arrangement of funds
Entrepreneur’s contribution

The total cost of the proposed technology is estimated at 52.49 lakh. The
entrepreneur’s contribution is 25% of total project cost, which is 13.12 lakh.

Loan amount

The term loan is 75% of the total project, which is 39.37 lakh. As the overall
energy efficiency in the project is more than 15% it qualifies for subsidy of 25%
of the project cost as per the NMCP scheme of Ministry of MSME, GoI. 25 %
of the project cost in this case works out to 12.15 lakh. As the subsidy is
normally available after implementation of the project the same has not been
taken in the project cost and means of finance. On receipt of subsidy from
Ministry of MSME, GoI through the nodal agency the amount of subsidy is
generally set off from the loan outstanding by the lending bank. Availability of
this subsidy will make the project economically more attractive

37
Terms & conditions of loan

The interest rate is considered at 10.00% which is SIDBI'S Lending rate for
energy efficiency projects. The loan tenure is assumed 5 years and the
moratorium period is 6 months.
Installed Capacity

The installed capacity is 2285 meters per day for 16 machines, on 3 shift basis.
This works out to 800000 meters of fabric per annum for 350 working days.The
capacity has been worked out based on a standard configuration of typical fabrics

presently required by customers.


The general cotton fabrics required in foreign market are
2/40 x 20 2/17 x 2/17
------------ ----------------
60 x 56 36 x 40

They are normally checked fabrics.

Conclusion

E commerce has made its special identity in textile industry. Now a day it has
become an essential part of Autolooms industry. With the help of Information &
Communication Technology (ICT), peoples are able to communicate rapidly
with each other. More knowledge about EDI will support for the quick
exchange of products. Establishing & maintaining brand name is a biggest
challenge for all the Electronic based Autoloom industries. E commerce is the
easiest way to enter in to the global market. But there is still lot of work need to
be done in security to overcome the problem of web spoofing.

38
List of Abbreviations
kWh kilo Watt Hour
SME Small and Medium Enterprises
GHG Green House Gas
BEE Bureau of Energy Efficiency
DPR Detailed Project Report
O&M Operational & Maintenance
NPV Net Present Values
ROI Return on Investment
IRR Internal Rate of Return

DSCR Debt Service Coverage

Ratio PBT Profit Before Tax


PAT Profit After Tax
MoMSME Ministry of Micro Small and Medium Enterprises

SIDBI Small Industries Development of India

List of Annexure
Annexure 1 Establishment of baseline and monetary benefits..................................25
Annexure 2 Process flow diagram..............................................................................................26
Annexure 3 Technology assessment report...........................................................................27
Annexure 4 Detailed financial analysis of Rapier loom (8 nos)...............................28
Annexure 5 Details of procurement and implementation plan..................................31
Annexure 6 Details of equipment and service provider.................................................32

39
List of Tables
Table 1.1 Details of annual energy consumption of a typical unit.............................4

Table 1.2 Production cost by power loom machine............................................................9


Table 2.1 Benefits of Rapier loom over conventional power loom........................15
Table 2.2 specification of power loom for suitable machine.....................................16
Table 2.3 Energy and cost benefit of Rapier loom...........................................................18
Table 3.1 Financial indicator of project..................................................................................23
Table 3.2 Sensitivity analysis in different scenario..........................................................24
Table 4.1 Details of Project cost..................................................................................................37

List of Figures
Figure 1.1 Process flow chart of typical textile unit...........................................................6
Figure 2.1 Rapier loom........................................................................................................................11

40

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