Setting up an Automatic Reeling Unit for Silk Yarn Manufacturing in the Maharashtra: A Case Study

This case study examines the feasibility of establishing an Automatic Reeling Machine (ARM) unit in Maharashtra, which contributes 10% of India's mulberry cocoon production yet has only two operational ARM units. Through primary data collection involving field visits, stakeholder consultations, and questionnaires, the study evaluates site selection criteria, financial viability, government support schemes, market potential, products and properties. Findings reveal that a 400-end ARM unit requires an initial investment of Rs. 32 million, with government subsidies covering up to Rs. 13.5 million. The unit is projected to achieve growing profitability from Rs. 7.99 million in Year-1 to Rs.10.1 million in Year-5 at a selling price of Rs.3,500/kg, supported by 95% capacity utilization by Year-3 and additional revenue from by-products like silk waste and pupae. Key challenges include cocoon price fluctuations and dependence on skilled migrant labour. However, strategic measures such as workforce upskilling, optimized procurement, and ideal site selection (soft water access, non-residential zoning) can mitigate risks. The unit's potential is further enhanced by strong domestic demand from Pathani's saree- weaving clusters and export opportunities via Bangalore's Silk Exchange. By aligning with India's Silk Samagra-2 mission, this initiative promises economic returns while strengthening Maharashtra's silk industry, reducing import dependence, and generating rural employment. The ARM unit will produce high-quality raw silk (2/20D–6/20D) for luxury textiles, ensuring sustainable growth through diversified revenue streams and optimal resource utilization.