Spinning Mill Investment Project in Andhra Pradesh, India

Opportunity Snapshot

  • Country: India India
  • Industry: Manufacturing
  • Stage: Seed
  • Investment size: $6,000,000 / min. $6,000,000

Investment Opportunity

Spinning process labour requirement is more so in India it got better opportunity to grow. Our core interest is to produce cotton yarn, which has global market. We are looking for investor interested to invest in India.

The investment for setting up a spinning mill with a capacity of 14400 spindles works out to Indian Rs. 26.90 Crores.

The land requirement will be around 2.5 acres.

The Preliminary & Pre-operative expense works out to Rs 1.36 crores.

Plant & Machinery including installation, erecting & transportation charges are of 16.91 Crores.

Buildings and civil works are estimated to be 6.55 Crores.

Erecting & transportation and electricity deposits have been considered in the project cost.

Stage of project: Planning

Investors can establish contact with us on Merar.

Competitive Advantage

The world cotton cultivation area and cotton production are estimated at around 30-31 million hectares and 20 million tons respectively. The biggest cultivators of cotton are America, India, China, Egypt, Pakistan, Sudan and Eastern Europe. India is the third largest producers of cotton after USA and China. USA has a considerable share in world exports - India and China both fall short of their domestic requirement and are net importers.

Andhra Pradesh is 3rd largest state in India which grows cotton. Among the consumers China leads the way being followed by India, Pakistan, USA and Turkey. Indian Textile Industry contributes 4% to the GDP of the country; it contributes 14% to Industrial Production, 9% of excise collections, 18% of employment in Industrial sector, and has 16 % share in country’s export. Textile industry provides employment to 35 million people in India.

Rationale for the deal

Margin money for working capital is estimated to be 1.60 Crores.

Cash payback period: 10 YEARS with 15% (per annum) interest.

Opportunity for the investor

Opportunity for investor: 35% partnership

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