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Techno economic & market aspects of Innovative bamboo yarn products
By  : Munish Tyagi

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Future Growth of bamboo products will be driven by natural Organic products story & proposition for better margins by the retailers.


4: Value Addition Potential of Bamboo Yarn Poducts Vis a Vis Normal Cotton Yarns.

 

Yarn Cost Heads

14s/1KW ,of 100% Bamboo Towelpile

20s/1CH of 100% Cotton Towelpile

40s/1CW 60%Bamboo/ 40%Cotton Bedlinen

40s/1CW,of 100% Cotton Bedlinen

Sale Rate, Rs /kg

excl. VAT

N S R



240


230.7


123


116.7



230


219.7



145


139.0



Sale Expenses


9.30



6.30



10.3



7.1



Indirect Costs



5.86



7.36



19.18



19.18



Direct cost



218.0



112.83



191.5



126.8



Total Cost bef. sale, 233.2 Rs/kg


EBIDTA margin, 6.8Rs/ Kg


126.5


-3.50


221.0


9.00

153.01


-8.00


Note that at Todays high Cotton rates most Spg. Mills are having -ve Ebidta, which is the gross or operating profit; the Bamboo yarn products provide opportunity to create higher Ebidta for the mills despite limited demand in slow markets.


 

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 Published On :  Wednesday, September 03, 2008

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