Medical Gauze and Bandage

This profile envisages the establishment of a plant to produce gauze and bandage with a capacity of 263 tons per annum. The bandage is used to cover a wound and hold the dressing in place of immobilizing an injured part and gauze is a loosely woven cotton fabric used to absorb fluid. The demand for gauze and bandage is met through domestic production and imports. The present (2022) unsatisfied demand for gauze and bandage is estimated at 1,750 tons. The unsatisfied demand for gauze and bandage is projected to reach 1,916 tons and 2,281 tons by the years 2023 and 2025, respectively. The principal raw material required is a half-bleached cotton yarn which is fully available locally from textile factories. The total investment cost of the project including working capital is estimated at $ 780,000. From the total investment cost the highest share (485,472 or 62.24%) is accounted for by fixed investment cost followed by initial working capital ($ 202,722 or 25.99%) and pre-operation cost ($ 91,806 or 11.77%). The project can create employment for 296 persons. The establishment of such a factory will have a foreign exchange saving effect on the country by substituting the current imports. The project will also create backward linkage with the textile manufacturing subsector and forward linkage with the medical supplies subsector and also generates income for the Government in terms of tax revenue and payroll tax.

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