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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