Synthetic Tannin Powder For Leather Industry - Manufacturing Plant, Detailed Project Report, Profile, Business Plan, Industry Trends, Market Research, Survey, Manufacturing Process, Machinery, Raw Materials, Feasibility Study, Investment Opportunities

PROJECT DESCRIPTION

The term tannin refers to the use of tannins in tanning animal hides into leather; hence the words tan and tanning for the treatment of leather. However, the term tannin by extension is widely applied to any large polyphenolic compound containing sufficient hydroxyls and other suitable groups (such as carboxyls) to form strong complexes with proteins and other macromolecules. Synthetic tannins are used in tanneries as replacement to compliment the tanning action made by the natural tanning extracts. They are used as auxiliaries for pre-tanning, re-tanning and combined tanning and as dispersing agents for vegetable tannins and dyestuffs. Tannins are incompatible with alkalis, gelatin, heavy metals, iron, limewater, metallic salts, strong oxidizing agents and zinc sulfate, since they form complexes and precipitate in aqueous solution. Uses & Applications They have a property to tan animal skin to convert to leather or hide. Conversion imparts resistance to water, heat and abrasives. They can be extracted using water-acetone/alcohol mixture. They have a property to precipitate gelatine & heavy metals. Market Survey In the wattle bark trade, one could process stick bark, bale it and sell it, or process wattle bark, extract tannin and sell it. Sale is normally by export. There are only two companies in East Africa, which extract tannin, namely EATEC AND KTE. These are business concerns that are profit driven. Two other concerns, the sotik wattle bark and the MWB, were the only two other concerns dealing with wattle bark within east Africa. These were owned by farmers and dealt only with processing stick bark and marketing it. The sotik wattle bark company has since gone under and it is only the MWB that remains as the sole flagship of black wattle farmers. Tannin extract is traditionally produced from black wattle trees but there is now stiff competition from tannin extract produced from chestnut and Quebracho trees from South America. Locally there is stiff competition with synthetic tannin. It is this synthetic tannin that is used by all shoe making companies in Kenya. Synthetic tannin is made using sulphur, which adversely affects the environment, the ozone layers and the users. Synthetic tannin produces poorer quality leather than natural tannin and it is much cheaper than tannin extract from black wattle, which makes the best quality leather. ? There are three conventional types or grades of tannin extracts from black wattle. These are: 1. Solid Mimosa Extract. 2. Green sulphited mimosa powder, commonly called GS powder. 3. Spray dried ordinary mimosa powder. Solid mimosa extract is the cheapest and poorest quality tannin extract. It is made out of stick bark alone. Its demand worldwide appears to be waning and the profit margin is lower than the other two types of tannin extract. Spray dried mimosa powder is the next cheapest tanning extract. It is of higher quality than the solid mimosa extract. Spray dried mimosa powder is made out of stick bark, green bark or the combination of the two. GS powder is the highest quality tannin extract, has the highest demand and the profit margin. It is made only from green bark. The green bark that is used to GS powder must be processed within a maximum of 24 hours after being stripped.
Plant capacity Plant & machinery Working capital Cost of Project T.C.I Return Break even
3000 MT/ Annum 159 Lakh - 50600000 Cost of Project: 506 Lakh 25.00 53.00

PROJECT AT A GLANCE

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PROFITABILITY AND NET CASH ACCRUALS

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ASSSESSEMENT OF WORKING CAPITAL REQUIREMENTS

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PROFITABILITY RATIOS, DSCR, DEBT EQUITY

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BREAK EVEN ANALYSIS

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INTEREST AND REPAYMENT ON TERM LOANS

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Debt Service Coverage Ratio

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DEPRECIATION CHARGES AS PER BOOKS (TOTAL)

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Projected Pay Back Period

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PROJECTED BALANCE SHEET

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REASONS FOR BUYING THE REPORT

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INFORMATION/ DISCLAIMER

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