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Non-Woven Bags Project Business Plan

Project Description

Nonwoven fabric is a fabric-like material made from staple fiber (short) and long fibers (continuous long), bonded together by chemical, mechanical, heat or solvent treatment. The term is used in the textile manufacturing industry to denote fabrics, such as felt, which are neither woven nor knitted. Some nonwoven materials lack sufficient strength unless densified or reinforced by a backing. In recent years, nonwovens have become an alternative to polyurethane foam.

Typically, a certain percentage of recycled fabrics and oil-based materials are used in nonwoven fabrics. The percentage of recycled fabrics vary based upon the strength of material needed for the specific use. In addition, some nonwoven fabrics can be recycled after use, given the proper treatment and facilities.

Non-Woven Materials are Used in Numerous Applications, Including Baby diapers, Feminine hygiene, Adult incontinence products, Wet wipes, Bandages and wound dressings, Isolation gowns, Surgical gowns, Surgical drapes and covers, Surgical scrub suits, Caps, Gasoline, oil and air – including HEPA filtration, Water, coffee, tea bags, Pharmaceutical industry, Mineral processing, Liquid cartridge and bag filters, Vacuum bags, Soil stabilizers and roadway underlayment, Foundation stabilizers, Erosion control, Canals construction, Drainage systems, Geomembranes protection, Frost protection, Agriculture mulch, Pond and canal water barriers, Sand infiltration barrier for drainage tile, Carpet backing, Composites such as Marine saillaminates, Tablecover laminates, Chopped strand mat, Backing/stabilizer for machine embroidery, Packaging – to sterilize medical products, Pillows, cushions, and upholstery padding, Batting in quilts or comforters, Consumer and medical face masks, Mailing envelopes, Tarps, tenting and transportation (lumber, steel) wrapping, Disposable clothing (foot coverings, coveralls) etc.

The global nonwovens market has a total volume of 10.1 million tonnes or 269.8 billion square metres, and is valued at $42.3 billion in 2018 It is projected to grow to 13.6 million tonnes or 382.0 billion square metres, valued at $57.4 billion by 2022. Annual growth rates (2017-22) are projected to be 6.2% (tonnes), 7.2%, and 6.3%.

In the case of non-woven bags, there is bright potential in Bangladesh as the government is discouraging the use of polythene bags to protect the environment. And non-woven bags are playing a great role in replacing polythene bags as the demand of these eco-friendly bags is increasing day by day. Due to increasing demand of non-woven bags in Bangladesh, GreenBangla Fabrics & Bag Industries Ltd (GFBIL) has planned to establish a non-woven bags project under GFBIL at Nohaliapara,Kalapara, Panchagarh Sadar, Panchagarh (Near BGB Camp) with 233 decimals project land where total 18,000 square feet prefabricated steel structure building will be built for main factory, store and godown, Admin office, Utilities Building, and Security Room

GFBIL will manufacture different types of non-woven bags such as retail carry bags, gifts Bag, wrapping bags so on. The attainable production will be 7,500 KG per day, 187,500 KG per month and 2,250,000 KG per annum. GFBIL will utilize the capacity at 75% in 1st year, 80% in 2nd year, 85% in 3rd year, 90% in 4th year and 95% in 5th year.

 For implementation of this project, total cost has been estimated BDT 198.01 mn in which fixed costs will be BDT 183.61 and variable costs will be BDT 14.40 mn. In this project, five years’ average sales revenue has been estimated BDT 432.62 mn where average net profit would be BDT 38.95 mn which is 8.87% by considering the utilized production capacity of 75% to 95% over the next five years.

The Net Present Value (NPV) of the project is around BDT 270.25 million with an Internal Rate of Return (IRR) of 31.26% and a discounted payback period of 4.25 years.

The project provides employment opportunities to 62 people. Finally, the management of GFBIL has vast knowledge and experience in business areas especially in the non-woven sector. GFBIL will manufacture high quality non-woven bags as per international standards and also set up competitive price with strong linkages for the success of this project.