PRESENTATION MADE ON

TOWEL MANUFACTURING
COMPANY
SHINE MATE
PRE-FEASIBILITY STUDY COTTON
TOWELS MANUFACTURING UNIT
SMALL AND MEDIUM
ENTERPRISES DEVELOPMENT
AUTHORITY MINISTRY OF
INDUSTRIES & PRODUCTION
• PROJECT BRIEF
• TOWEL IS AN IMPORTANT PRODUCT USED IN EVERY DAY LIFE. TOWELS AND ITS ALLIED
PRODUCTS CONSTITUTE AN IMPORTANT SECTOR OF TEXTILE INDUSTRY. IN MADE UPS, TOWELS
SUB-SECTOR IS THE SECOND LARGEST AFTER BEDWEAR IN TERMS OF PRODUCTION AND
EXPORTS. TOWELS ARE MANUFACTURED IN VARIOUS SIZES, SHAPES AND QUALITIES
DEPENDING UPON CUSTOMERS’ REQUIREMENTS. THE PROPOSED PROJECT IS FOR SETTING UP
A TOWELS MANUFACTURING UNIT.
• THIS WILL BE A VERTICALLY INTEGRATED UNIT INCLUDING THE FACILITY OF WEAVING, DYEING,
FINISHING AND STITCHING. MOST OF ITS PRODUCTION WILL BE FOR EXPORT PURPOSE AS
THIS IS AN EXPORT-ORIENTED ORDER BASED INDUSTRY, HENCE CONTRIBUTING TOWARDS THE
EARNINGS OF FOREIGN EXCHANGE FOR THE COUNTRY. THERE IS A VAST RANGE OF TOWEL
PRODUCTS LIKE TOWELS, TERRY TOWELS, WARP PILEFABRIC, DISH CLOTH, WASH CLOTH,
FLOOR CLOTH, BAR MOPS, BATHROBES, BATH MATS, DUSTERS, KITCHEN TOWELS ETC. ALL THE
CALCULATIONS AND FINANCIAL WORKINGS HAVE BEEN DONE WHILE TREATING THIS AS AN
EXPORT BASED PROJECT. THE YARN USED IN THE PRODUCTION OF TOWELS IS 10/S, 16/S AND
20/S COTTON, POLYESTER/COTTON
• PROPOSED CAPACITY

• PROPOSED CAPACITY THE PROPOSED CAPACITY OF THIS UNIT IS 20 LOOMS PRODUCING 150
TONS OF TOWELS PER ANNUM BASED ON DAILY TWO SHIFTS OF 8 HOURS FOR 300 DAYS.
THIS UNIT HAS THE CAPABILITY FOR HORIZONTAL AS WELL AS VERTICAL INTEGRATION. 3.3

• TOTAL PROJECT COST

• THE TOTAL PROJECT COST OF THIS COTTON TOWEL MANUFACTURING UNIT IS RS. 38.9
MILLION
PRODUCTION PROCESS FLOW PRODUCTION OF GREY FABRIC ON LOOMS HEATING OF FABRIC IN KIER
DYEING OF FABRIC IN WINCH FABRIC DRYING
1. PURCHASE OF YARN
2 QUALITY INSPECTION

3WARPING OF YARN
4 SIZING OF YARN ALIGNMENT OF FABRIC IN STENTER TUMBLING AND FINISHING IN TUMBLE
5 CUTTING OF FABRIC

6 STITCHING
7LABELING OF
8 PACKING OF TOWELS

MOST OF THE TOWEL INDUSTRY IS CLASSIFIED AS CONSTITUTED OF SMALL AND MEDIUM SIZED UNITS
HAVING SMALLER PRODUCTIONS, AND MOSTLY MANUFACTURERS DO NOT HAVE COMPLETE
PROCESSING FACILITIES. THE WOVEN TOWEL IS SENT TO INDEPENDENT PROCESSING UNITS.
• CURRENT INDUSTRY STRUCTURE THE TOWEL INDUSTRY OF COMPRISES OF APPROXIMATELY 300
MANUFACTURERS AND EXPORTERS WITH A DIVERSE RANGE OF TOWEL PRODUCTS.
• GUIDELINES FOR TOWELS EXPORT BUSINESS- KEY SUCCESS FACTORS TO ENTER IN THE EXPORT
BUSINESS OF TOWELS,:
• 1. ENSURE GOOD QUALITY AT ALL COSTS. THIS IS A BASIC KEY FOR A SUCCESSFUL EXPORTER. THEREFORE,
QUALITY ISSUES SHOULD BE THE PRIMARY FOCUS.
• 2.COMMITMENTS WITH BUYERS REGARDING QUALITY, PRICE AND SHIPMENT ARE THE BASIC ESSENTIALS TO
ENTER AND GROW IN THE EXPORT BUSINESS
• . 3. MANY TOWEL-MANUFACTURING COMPANIES ARE CONSIDERING IT WORTHWHILE SETTING UP THEIR
OVERSEAS OFFICES AND WAREHOUSES.

• 4.IT IS VERY IMPORTANT IN SUCCESSFUL MARKETING TO BE ACTIVE AND QUICKLY RESPONSIVE TO THE
CUSTOMER DEMANDS.
• 5. PARTICIPATION IN TRADE FAIRS IS VERY HELPFUL IN KNOWING CUSTOMERS’ REQUIREMENTS AND
OBTAINING ORDERS. INTERNATIONAL TRADE FAIRS PROVIDE AN EXCELLENT OPPORTUNITY TO INTRODUCE A
NEW ENTRANT IN THE INTERNATIONAL MARKETS
• TOTAL MARKET SIZE AND GROWTH TOTAL GLOBAL TRADE VALUE OF TOWEL PRODUCTS IS
MORE THAN US$ 4.0 BILLION. COTTON TOWELS HAVE A SUBSTANTIAL SHARE IN THE TOTAL
EXPORTS OF TOWEL AND RELATED PRODUCTS.6 TABLE
• 5-1: TRADE OF TOWEL PRODUCTS IN WORLD7 TOWELS PRODUCTS PERCENTAGE SHARE
TOWELS 56% WOVEN COTTON PILE 30% CLEANING CLOTHES 11% TERRY TOWEL 3% TOTAL
100%

• MAJOR EXPORTERS
• CHINA IS THE MAJOR EXPORTER OF TOWEL TOTAL EXPORTS IN 1997 WERE $305 MILLION.
• IN EUROPE, PORTUGAL, GERMANY AND BELGIUM ARE THE MAJOR EXPORTERS
• RECOMMENDED MODE IT IS RECOMMENDED THAT THIS PROJECT SHOULD BE STARTED IN AN
OWNED BUILDING BECAUSE THIS SET-UP WILL INVOLVE
• INSTALLATION OF HEAVY MACHINERY,
• UNDERGROUND CABLING AND OTHER FIXTURES WITH CONSIDERABLE CASH OUTLAY.
• THE BASIC CRITERIA FOR THE SELECTION OF LOCATION WITHIN THESE CLUSTERS SHOULD BE
THE ACCESSIBILITY OF RAW MATERIAL AND SKILLED MANPOWER.
• BASIC UTILITIES LIKE
• ELECTRICITY, GAS, WATERS AND PUBLIC TRANSPORT IS MUST FOR
• THE ESTABLISHMENT OF SUCH SORT OF UNIT.
• UTILITIES REQUIREMENT ELECTRICITY GAS FURNACE OIL TELEPHONE FAX
INTERNET
THREATS FOR THE BUSINESS
• CLOSE COMPETITION AMONG LOCAL EXPORTERS CAUSES REDUCTION IN PRICES OF THE
ORDERS IN PROCESS.
• THE LABOUR FORCE AT THE LOWEST LEVEL I.E. SKILLED / SEMI-SKILLED MANPOWER,
MACHINE OPERATORS ARE QUITE UNORGANIZED
• NON-AVAILABILITY OF TECHNICAL PERSONNEL ESPECIALLY FOR DYEING, PROCESSING AND
FINISHING.
• IN CASE OF CMT BASED UNIT, THE REQUIREMENT OF CREDIT AND/OR DELAY OF PAYMENTS
FROM CLIENTS
• CONCLUSION

• THE OBJECTIVE OF THIS PAPER HAS BEEN TO PRESENT WORK DONE ON DESIGNING FOR THE
PRODUCTION MANAGEMENT IN THE TOWEL MANUFACTURING INDUSTRY.
• THIS PROCEDURE HAS BEEN DEVELOPED BY TAKING INTO ACCOUNT THE SPECIFIC FEATURES OF THE
INDUSTRY AS WELL AS SOME PARTICULAR METHODS AND HEURISTICS THAT MANAGEMENT ADOPTS.
• HAS BEEN DEVELOPED AIMING AT INVENTORY REDUCTION, INCREASED -PRODUCTIVITY, IMPROVED
CUSTOMER SERVICE AND CONTROL A’F THE BUSINESS IN A TEXTILE INDUSTRIAL UNIT. THE PHASLES
COVERED (WEAVING, STARCHING AND WARP MAKING)
• A PRODUCTION ORDER CAN BE SPLIT UP INTO A SET OF JOBS WHICH IS THEN ASSIGNED TO
MULTIPLE PARALLEL MACHINES; *
• ALL CUSTOMER ORDERS ARE ACCEPTED AND THE AVAILABLE CAPACITY IS ADAPTED ACCORDINGLY,
BASICALLY DUE TO THE EASE OF SUBCONTRACTING. BOTH FEATURES MAY CHARACTERIZE
PRODUCTION UNITS IN THE TEXTILE AND OTHER INDUSTRIES AS WELL. T