PROFILE ON PRODUCTION OF COTTON YARN

 

Yarn consists of several strands of material twisted together. Each strand is, in turn, made of fibers, all shorter than the piece of yarn that they form. These short fibers are spun into longer filaments to make the yarn. Long continuous strands may only require additional twisting to make them into yarns. Sometimes they are put through an additional process called texturing. The characteristics of spun yarn depend, in part, on the amount of twist given to the fibers during spinning. A fairly high degree of twist produces strong yarn; a low twist produces softer, more lustrous yarn; and a very tight twist produces crepe yarn. Yarns are also classified by their number of parts. A single yarn is made from a group of filament or staple fibers twisted together. Ply yarns are made by twisting two or more single yarns. Cord yarns are made by twisting together two or more ply yarns. Yarn can be made from a number of natural or synthetic fibers. Many types of yarn are made differently though. There are two main types of yarn: spun and filament. The most common plant fiber is cotton, which is typically spun into fine yarn for mechanical weaving or knitting into cloth. Cotton and polyester are the most commonly spun fibers in the world. Cotton is grown throughout the world. After harvesting it is ginned and prepared for yarn spinning. The most commonly used natural fiber is cotton, accounting almost 50% of the world-wide consumption of textile fiber. Its widespread use is largely due to the ease with which its fibers are spun into yarns. Cotton's strength, absorbency, and capacity to be washed and dyed also make it adaptable to a considerable variety of textile products Cotton fiber, which grows in the seed pod of cotton plants, is the only one that is useful for the manufacture of textiles. Different species of cotton plants produce fibers of different lengths. Long-staple fibers are spun into fine, strong yarns, which are then woven into better-quality fabrics. Short-staple fibers produce coarser yarns for durable fabrics. Cotton yarns can be dyed and printed easily, so that they are useful for producing woven fabrics with a multitude of colors and designs. The plant will create employment opportunities for 11 persons. The total investment requirement is estimated at about N11.005million, out of which N3.0 million is required for plant and machinery. The project is financially viable with the following profitability indices:


Average Return on Assets                             65.5%

 Average Return on Equity                             95.4%

 Average Return on Sales                                7.1%

 Average Debt service coverage                     40.8

 Average proportion of Debt                           0.060

 Average proportion of Equity                        0.940

 Average Debt/Equity Ratio                          6.0:94.0

 Average Operating ratio                                82.9%

 Average current ratio                                     1.29

 UnDiscounted Pay back period (yr)               3.6

 Net present Value (N000)                            166273.1

 Internal Rate of Return                                   49.1%

 Break Even point(Based on year1)(Sales)    261139.2

 Fractional capacity utilization                        0.276

 Selling Price N000.00                                     500.0000


 

I.                 PRODUCT DESCRIPTION AND APPLICATION

 

Cotton yarn is a long continuous strand often of two or more plies that are composed of carded or combed fibers of cotton twisted together, or filaments or blends of it. It is used for warp and weft in weaving and for knitting or other interlacing that form cloth.  The most commonly used natural fiber is cotton, accounting almost 50% of the world-wide consumption of textile fiber. Its widespread use is largely due to the ease with which its fibers are spun into yarns. Cotton's strength, absorbency, and capacity to be washed and dyed also make it adaptable to a considerable variety of textile products. Cotton fiber, which grows in the seed pod of cotton plants, is the only one that is useful for the manufacture of textiles. Different species of cotton plants produce fibers of different lengths. Long-staple fibers are spun into fine, strong yarns, which are then woven into better-quality fabrics. Short-staple fibers produce coarser yarns for durable fabrics. Cotton yarns can be dyed and printed easily, so that they are useful for producing woven fabrics with a multitude of colors and designs.

Cotton fibres mostly are spun into yarns or threads and used to make textiles. Cotton also is used to make yarn used in crochet and knitting.


II.               MARKET STUDY

Nigeria has the potential to produce for the local market and also export to the Economic Community of West African States (ECOWAS) market of 175 million people, as well as to the developed world but of which various measures have become absolutely necessary to revive the textile industry. At present Nigeria spends over $4 billion, about N1.32 trillion, yearly on imported textile and other ready-made clothings. The Nigerian textile industry, hitherto the second largest employer after the government, has been bogged down by lack of infrastructure and smuggled textile from Asian countries, especially China.  In addition to the above, cotton yarn is spun at household level, and according to a textile sector study conducted by IPS, annual production of home- spun yarn is estimated at 200 tonnes. Traditional weavers (the handloom sector) use industrially produced yarn for warp and home – spun yarn for weft to produce traditional garments ( buluko, Gabi, etc.)

III.            RAW MATERIAL

 

Cotton has been a major cash crop in Africa, mainly in Nigeria, the areas cotton is grown in Nigeria is concentrated in the Savannah belts of the country which is the Northern & South Western Nigeria such as Kano, Kaduna, Oyo, Ondo, Kwara, Katsina, Jigawa, Ogun, Kebbi, Sokoto & Zamfara state.

 

 


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