COTTON TO READYMADE GARMENTS

Dr.R.B.CHAVAN

FORMER PROFESSOR, I I T DELHI

CONSULTANT

MAHATMA GANDHI INSTITUTE OF RURAL INDUSTRIALIZATION

WARDHA

COTTON CULTIVATION STATISICS

STATUS OF COTTON GROWING FARMERS AND COTTON USING INDUSTRIALISTS

ORGANIC AND NON-ORGANIC CULTIVATION

Non ORGANIC COTTON CULTIVATION

HIGHEST CONSUMPTION OF PESTICIDES (33%)

MOST EXPENSIVE CROP

HARMFUL TO SOIL

HARMFUL TO HUMAN LIFE AND OTHER LIVING ORGANISMS

ENVIRONMENT POLLUTION

ORGANIC

LESS EXPENSIVE

NON-HAZARDOUS TO SOIL, HUMAN LIFE, OTHER LIVING ORGANISMS

ENVIRONMENT FRIENDLY

NO EFFECT ON PHYSICAL AND CHEMICAL PROPERTIES OF COTTON FIBRE

LONG RELATION OF HUMAN BEING AND CLOTH

RIGHT FROM BIRTH TO DEATH

MODERN CIVILIZATION CAN NOT THINK OF LIVING WITHOUT CLOTHS EXCEPT JAIN MUNIs

WHEN A PERSON DIES EVERY THING IS RMOVED FROM HIS/HER BODY EXCEPT CLOTHES

PROBABLY FIRST FIBRE DISCOVED WAS COTTON

RECORDS INDICATE DISCOVERY OF COTTON FIBRE 8OOO YEARS B C

RECORDS AND MYTHOLOGY ALSO INDICATE THAT COTTON PLANT WAS DISCOVERED BY BRIHANMAD RISHI AT KALAMB A VILLAGE NEAR YEOTMAL

DIFFERENT FIBRES FOR CLOTH MAKING

NATURAL

COTTON

WOOL

SILK

SYNTHETIC

NYLON

POLYESTER

ACRYLIC

BLENDS OF NATURAL AND SYNTHETIC FIBRES

COTTON KING FIBRE

COTTON CONSIDERED TO BE KING FIBRE

SILK QUEEN FIBRE

COTTON

ROBUST TO DAY TO DAY WEARING

COMFORTABLE IN TROPICAL COUNTRY LIKE INDIA

CHEAP

ABUNDANT AVAILABILITY COMPARED TO WOOL AND SILK

BIODEGRADABLE

ENVIRONMENT FRIENDLY

UNFORTUNATE VIDARBHA FARMERS

LARGE SCALE CULTIVATION OF COTTON IN VIDARBHA

COTTON GROWING FARMERS ARE POOREST AND IN DEBT

PRONE TO SUICIDES BECAUSE OF DEBT DUE TO PURCHASE OF EXPENSIVE AND LARGE SCALE USE PETICIDES

MANY TIMES NO EXPENSES INCURRED ARE MORE THAN EARNING

IS IT POSSIBLE TO CHANGE THE EQUATION BETWEEN EXPENSES AND EARNING?

WAY OUT

CONVERT THE RAW COTTON INTO FINISHED PRODUCT LIKE

YARN

GREY FABRIC

FINSIHED FABRIC

READYMADE GARMENTS

PHASEWISE CONVERSION SUGGESTED

IT WILL BE INTERESTING TO UNDERSTAND HOW PROFIT MARGIN INCREASES AS ONE MOVES FROM RAW COTTON ►YARN ►GREY FABRIC ►FINISHED FABRIC ►GARMENTS

STEPS INVOLVED

PRE-SPINNING

SPINNING

PRE-WEAVING

WEAVING

CHEMICAL PROCESSING

GARMENT MAKING

STEPS INVOLVED

PRE-SPINNING

1. RAW COTTON

2. GINNING

3. BALE FORMATION

4. FIBRE OPENING

5. LAP MAKING

6. CARDING

7. SLIVER MAKING

8. ROVING MAKING

SPINNING

9. YARN

PRE-WEAVING

10. SIZING

11.LOOM PREPARATION

12. WEAVING

GREY FABRIC

CHEMICAL PROCESSING

13. DESIZING

14. SCOURING

15. BLEACHING

16. DYEING

17. PRINTING

18. FINISHING

19. GARMENT MAKING

CAPITAL INVESTMENT

ESTABLISHING A TEXTILE MILL

MOST CAPITAL AND LABOUR INTENSIVE

CAPITAL INVESTMENT FEW CRORES RUPEES

MOST EXPENSIVE PROPOSAL FOR MARGINAL FARMERS OR GROUP OF FARMERS

WAY OUT

CLUSTER ACTIVITY IN A GROUP

OF MINIMUM OF 10 FARMERS

EQUIPMENTS

MINI-SLIVER PLANT

AMBER CHARKHA

HANDLOOM

INVESTMENT

3-5 LAKH RUPEES

PHOTO

Ginning machine

Lap making machine Sliver making machine

Carding machine

VALUE ADDITION

RAW MATERIAL

COTTON WITH SEED COST Rs.3200 PER QUINTAL i.e. 100 Kg

COST PER Kg Rs.32

3 Kg COTTON WITH SEED = 1 Kg COTTON WITHOUT SEED

COST OF 1 KG GINNED COTTON = 32x3 = Rs.96

GINNING

COST OF GINNING Rs. 1.5 PER Kg

GINNING COST 1.5x3 = Rs. 4.5 PER Kg

COST OF COVERSION OF 1Kg OF GINNED COTTON TO 1 Kg ROVING = Rs.30

ASSUMPTION ALL OPERATIONS CARRIED OUT INHOUSE

NO TRANSPORTATION COST INVOLVED

COST OF CONVERSION OF 1 Kg ROVING INTO 1 Kg YARN = Rs.60

(30 HANKS OF 30s COUNT IN 1 Kg. Rs. 2 PER HANK SPINNING WAGES)

TOTAL COST OF CONVERSION OF 1 KG YARN

COST OF GINNED COTTON + GINNING COST + ROVING CONVERSION COST + YARN CONVERSION COST

Rs. 96 + 4.5 + 30 + 60 = 190.5 i.e 190

YARN SELLING COST Rs. 240 PER Kg.

PROFIT ON 1 Kg YARN Rs. 240 – 190 = 50

THIS MEANS PROFIT ON 3 Kg UNGINNED COTTON = Rs.50

PROFIT ON 1 Kg UNGINNED COTTON = 50/3 = 16

SALE PRICE OF UNGINNED COTTON 32 + 16 = 48

COST OF 1 QUINTAL COTTON INCREASE TO 48x100 = 4800

CONVERSION OF YARN TO GREY FABRIC

FROM 1 KG YARN IT IS POSSIBLE TO WEAVE 8 METERS OF GREY FABRIC

WEAVING CHARGES

Rs. 10 PER METER

CHARGES FOR WEAVING 8 METER FABRIC 10x8 = Rs.80

SELLING COST OF GREY FABRIC Rs. 50 PER METER

TOTAL COST OF FABRIC 8x50 = Rs 400

PROFIT ON 8 METER FABRIC

SELLING COST OF GREY FABRIC – (YARN CONVERSION COST + FABRIC CONVERSION COST)

400 – (190+80) = 130

PROFIT ON 3 Kg UNGINNED COTTON = Rs.130

PROFIT ON 1 Kg UNGINNED COTTON = 130/3 = 43

SALE PRICE OF 1Kg COTTON AFTER CONVERSION TO GREY FABRIC 32 + 43 = 75

SALE PRICE OF 1 QUINTAL COTTON 75x100 = 7500

CONVERSION OF GREY FABRIC TO FINISHED WHITE FABRIC

COST OF DESIZING, SCOURING AND BLEACHING Rs. 5 PER METER

TOTAL PROCESSING COST 8x5 = 40

SELLING PRICE OF WHITE FINISHED FABRIC Rs. 70 PER METER

PRICE OF 8 METERS WHITE FABRIC 70x8 = Rs 560

PROFIT ON WHITE FABRIC 560 – 40 = 520

COST OF 3 Kg UNGINNED COTTON = Rs.520

COST OF 1 Kg UNGINNED COTTON 520/3 = Rs. 173

SELL PRICE OF 1 Kg UNGINNED COTTON 32 + 173 = 205

SELL PRICE OF 1 QUINTAL COTTON = Rs.20,500

CONVERSION OF WHITE FABRIC TO GARMENTS

FROM 8 METERS FABRIC ONE CAN STITCH 4 HALF SHIRTS

STITCHING CHARGES Rs. 70 PER GARMENT

STITCHING CHARGES OF 4 GARMENTS = 4x60 = Rs.240

SELLING PRICE OF EACH GARMENT Rs. 225

TOTAL SELLING PRICE 225x4 = 900

PROFIT ON 4 GARMENTS 900 – 240 = Rs.660

PRICE OF 3 Kg. UNGINNED COTTON INCREASED TO RS. 660

PRICE OF 1 Kg UNGINNED COTTON 660/3 = 220

SELL PRICE OF 1 Kg. COTTON BECOMES 32 + 220 = 252

SELL PRICE OF 1 QUINTAL COTTON 252x100 = 25200

PRICE APPRECIATION SUMMARY

SELLING PRICE PER QUINTAL (Rs.)

RAW COTTON 3200

YARN 4800

GREY FABRIC 7500

WHITE FABRIC 20,500

GARMENT 25,200

PROFIT MARGIN

THE PROFIT MARGIN SHOWN AS GUIDELINE

THERE IS LIKELY TO BE VARIATION DEPENDING ON VARIOUS FACTORS

ONE THING IS CERTAIN

CONSIDERABLE VALUE ADDITION AS ONE MOVES FROM

RAW COTTON

YARN

GREY FABRIC

FINISHED FABRIC

GARMENTS

ORGANIC COTTON WILL HAVE BETTER PROFIT MARGIN COMPARED TO NON-ORGANIC COTTON

NO DOUBT ALL BIG BUSINESSMEN IN INDIA LIKE TATA, BIRLA, AMBANI ETC BUILD UP THEIR EMPIRE STARTING FROM TEXTILE BUSINESS

THE FARMERS CAN ALSO DREAM OF BECOMING TATA, BIRLA, AMBANI

YOU HAVE TO HAVE HIGH DREAMS AND GET TOGETHER, PLAN AND WORK HARD TO CONVERT THE DREAM INTO REALITY

MGIRI’S ROLE

KHADI GROUP AT MGIRI IS VERY ACTIVE IN PROVIDING TECHNICAL SUPPORT TO FARMERS

PLANNED TO DESIGN AND FABRICATE LOW COST PRE-SPINNING MACHINES FOR SMALL SCALE PRODUCTION 20 Kg YARN PER DAY

COST OF SUCH DOWSIZED MACHINES WILL BE IN THE RANGE OF Rs. 2-3 LAKH AGAINST FEW CRORES FOR LARGE SCALE MACHINES

THIS PRODUCTION CAPACITY USES THE MAH’ATMA GANDHI’S PRINCIPLE OF PRODUCTION BY MASSES

FARMERS IN A GROUP OF 10 CAN DO YARN AND FABRIC PRODUCTION IN THE FORM OF CLUSTER

IT IS STRONGLY BELIEVED THAT SUCH A EXPERIMENT BASED ON GANDHIAN PHILOSOPHY WILL GO A LONG WAY FOR THE BENEFIT OF FARMERS AND WILL PROVIDE A TECHNOLOGY SOLUTION TO SUICIDE PRONE FARMERS.

REMEMBERING GANDHI

WHEN ONE TALKS OF SMALL SCALE PRODUCTION IT IS OBVIOUS TO REMEMBER GANDHI

MAHATMA GANDHI STARTED HIS FREEDOM STRUGGLE PROPAGATING THE PRODUCTION OF KHADI

THEREFORE KHADI SYMBOLISES THE FABRIC OF FREEDOM STRUGGLE

GANDHI FIRM BELIEVED AND WAS CONVINCED THAT SMALL SCALE MANUFCTURING BASED ON THE PRINCIPLE OF PRODUCTION BY MASSES IS THE ONLY WAY TO FIGHT WITH THE EVIL OF UNEMPLOYMENT AND THE MISERABLE PLIGHT OF FARMERS AND VILLAGES IN GENERAL

I

KHADI A FABRIC FOR EMPLOYMENT GENERATION

KHADI MANUFACTURING INVOLVES LONG CHAIN OF PROCESSES

MOST IMPORTANT ACTIVITY FOR EMPLOYMENT GENERATION

GANDHI DREAMT THAT EVERY HOUSE SHOULD BECOME A TEXTILE MILL

THE DOWN SIZED TECHNOLOGY DEVELOPED AT MGIRI CAN HELP TO FULFILL THE DREAM OF GANDHI

GANDHI ALSO BELIEVED THAT KHADI IS PHILOSOPHY AND NOT A COMMERCIAL FABRIC

HE USE TO SAY

EVERY REVOLUTION OF CHARKHA SPINS LOVE AND PEACE

TIME IS OPPRTUNE TO REVOLVE CHARKHA TO BRING CHEERS ON THE FACE OF FARMERS AND LOVE AND PEACE IN THIR FAMILIES.

NEED OF COLLECTIVE EFFORTS

TO FULFILL MAHATMA GANDHI’S DREAM THERE IS NEED FOR COLLECTIVE EFFORTS, HARD WORK WITH PATIENCE.

FARMERS ARE BORN WITH THE QUALITY OF HARD WORK AND PATIENCE

WHAT IS NEEDED IS THE NEED OF COLLECTIVE EFFORTS

IT IS HOPED THAT FARMERS WILL MAKE USE OF GOLDEN OPPORTUNITY OF COMING TOGETHER PALN TO WORK UPLIFTING THEMSELVES

MGIRI WILL PROVIDE ALL POSSIBLE TECHNICAL SUPPORT IN THIS ENDEAVOR