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PROJECT REPORT

EXECUTIVE SUMMARY:

The following report outlines the feasibility of establishing a textile

manufacturing plant on a 1-acre land in Puducherry. The plant will produce a
range of textile products including clothing, home textiles, and industrial textiles.
The project will require an initial investment of INR 1 Crore, and is expected to
generate annual revenues of INR 2 Crores.

MARKET ANALYSIS:

The textile industry is a major contributor to the Indian economy, with the market
expected to grow at a CAGR of 10.5% between 2021 and 2026. The demand for
textile products is increasing due to factors such as population growth,
urbanization, and increasing disposable incomes. The Indian textile industry is
projected to reach INR 223 billion by 2021.

PRODUCTS:

The plant will produce a variety of textile products including t-shirts, pants,
jackets, bed linen, curtains, towels, and industrial fabrics such as filtration and
geotextiles.

PRODUCTION PROCESS:

The plant will have a modern production process that will use the latest
technology and machinery. The process will involve the following steps:

1. Spinning: This is the process of converting raw cotton or other fibers into
yarn.

2. Weaving/Knitting: This is the process of interlacing the yarn to create a

fabric.

3. Dyeing/Printing: This is the process of coloring the fabric.

 4. Finishing: This is the process of treating the fabric to give it the desired
characteristics such as softness, durability, and resistance to shrinkage.

FACILITIES:

The plant will be located on a 1-acre plot of land and will have the following
facilities:

1. Production Area: This will be the main area where the textile products will
be manufactured.

2. Storage Area: This will be used for storing raw materials, finished
products, and other supplies.

3. Office Area: This will be used for administrative purposes such as

management, accounting, and sales.

4. Parking Area: This will be used for parking vehicles used by employees
and visitors.

FINANCIAL PROJECTIONS:

The project will require an initial investment of INR 1 Crores, which will be used
to purchase land, machinery, and other equipment. The project is expected to
generate annual revenues of INR 2 Crores, with a profit margin of 20%. The
following table shows the financial projections for the first five years of
operation:

• Year 1:
Revenue = INR 2 Crores, Expenses = INR 1.6 Crores, Profit = INR 0.4 Crores
• Year 2:
Revenue = INR 2.4 Crores, Expenses = INR 1.9 Crores, Profit = INR 0.5 Crores
• Year 3:
Revenue = INR 2.8 Crores, Expenses = INR 2.2 Crores, Profit = INR 0.6 Crores
• Year 4:
Revenue = INR 3.2 Crores, Expenses = INR 2.6 Crores, Profit = INR 0.6 Crores
• Year 5:
Revenue = INR 3.6 Crores, Expenses = INR 2.9 Crores, Profit = INR 0.7 Crores

CONCLUSION:

The establishment of a textile manufacturing plant on a 1-acre land in Puducherry

is a viable business opportunity due to the growing demand for textile products.
The project requires an initial investment of INR 1 Crores, and is expected to
generate annual revenues of INR 2 Crores. The plant will be equipped with state-
of-the-art machinery and technology, and will produce a variety of textile
products including clothing, home textiles, and industrial textiles. The project has
the potential to generate significant returns on investment and contribute to the
growth of the Indian textile industry.