Start a Cotton Knitted Undergarments (Briefs, Panties, Vests) Manufacturing Unit

             


(201) Start a  Cotton Knitted Undergarments (Briefs, Panties, Vests) Manufacturing Unit

This project profile is for the setting up of unit for the manufacture of cotton undergarments such as vests, briefs and panties. Knitted undergarments are used and liked by the people because of its good drapability, stretchability, softness and absorbency of sweat characteristics. In this report, guidelines for setting up of unit for the manufacture of gents briefs, vests, ladies panties are given. Machinery and raw material required to set up this industry are indigenously available.Introduction

Market Potential

Hosiery industry is an ancient industry in the field of textile industry having very good potential in domestic market and also in the export market. There is increasing market demand for hosiery undergarments for its various advantages. Cotton undergarments are widely used by all classes of people because of its good absorbency, cheaper prices and ready availability. These foundation garments are used by the people throughout the year under different climatic conditions. It is presumed that there will be no problem in marketing of knitted undergarments of good quality.

Basis and Presumptions

This project is based on single shift basis with 8 hours and 300 working days in a year. The unit is proposed to be started in own building. Costs of machinery, equipment, raw material indicated in this report refer to a particular make and approximately to those prevailing at the time of preparation of this project and it is presumed that these rates are likely to vary from supplier to supplier and place to place. Cost of installation and electrification of plant and machinery is taken @ 10% of its cost.

Non-refundable deposits, project report cost, trial production cost, security deposit with Electricity Board are taken under pre-operative expenses. Depreciation has been considered at 5% on building, 10% on plant and machinery, 15% on furniture and 15% on workshop accessories. Interest rate for the loan has been considered at 14% per annum.

Implementation Schedule

Time period required for executing the project from preparation of project report to starting the trial run production will be 7 months period approximately. Considering that some of the many activities may be overlapping, the project implementation will take a total period of five months approximately for starting the actual production.

Technical Aspects
Process of Manufacture

The manufacturing process involves the following steps :

1. Procurement of Knitted Fabric

Dyed/bleached cotton knitted fabrics are to be procured from the open market. The fabric will be inspected by laying the fabric on the inspection table against light before cutting so that unevenness in colour/shades or any other fault if any visible in the fabric can be eliminated.

2. Cutting and Stitching

The inspected fabric is placed on the cutting table in layers and then the different parts of the respective garments are demarked by a chalk as per different sizes. Cutting of fabric layer is carried out by fabric cutting machine in order to have accurate dimensions.

Stitching of whole garment is carried out by the skilled workers with the help of overlock, sewing machines etc.

3. Washing, Checking, Pressing and Packing

Garments obtained from the sewing section will normally have some dirt/ stains which are to be eliminated by treating them with mild soap solution in garment washing machine. Excess water is to be removed from the garments by charging in hydro-extractor and dried in garments drying tumbler.

Final checking is done by placing individual pieces on the checking table so that any fault and protruding thread in the piece may be removed. The individual pieces are pressed by pressing man to remove the wrinkle marks in the piece and packed in the paper board boxes specifically available for the purpose.

Quality Control and Standards

Necessary quality checking must be followed in each stage of manufacturing process in order to maintain the quality. BIS standards applicable for undergarments are given below:

Sl.No.	BIS No.	Title
1.	IS 4046:1981	Gents cotton knitted briefs
2.	IS 4809:1968	Cotton knitted string vests
3.	IS 4963:1980	Plain knitted cotton vests
4.	IS 4965(Part-1):1975	Interlock cotton knitted vests.

Production Capacity (per annum)

Product	Qty. (Dzs.)	Value (Rs.)
Vests and ladies panties	36,000	11340000
	18,000	6660000
Total	54,000	18000000

Motive Power

Total power of 22 HP is required to run this unit with proposed installed capacity. The above requirement of power is proposed to be obtained from State Electricity Board.

Pollution Control

Although not required, entrepreneurs are to contact State Pollution Control Board as a precautionary measure.

Energy Conservation

Wastage of energy should be minimised by proper house-keeping methods in order to keep the unit more competitive in the market.

Financial Aspects
A. Fixed Capital

(i) Land and Building :	Factory shed	450 sq. mt.@ Rs 1500 psm. amounting Rs 6,75,000 300 sq.mt.
Building Area	Store (Raw material) Store (Finished goods) Office etc. Total covered area Total construction cost Rs. 3000/sq.mt.	50 sq.mt. 50 sq.mt. 25 sq.mt. 425 sq.mt. 12,75,000
Total investment in land and building.		1950000

(ii) Machinery and Equipments

Sl. No.	Description	No.	Rate (In Rs.)	Amount (In Rs.)
(a)	Cutting machine (Power Operated)	1	75000	75000
(b)	Overlock machine (3 thread) with motor and stand (1/2 HP)	55	8000	440000
(c)	Folding machine with stand and motor (1/2HP motor)	4	15000	60000
(d)	Rib Cutting machine with stand and motor (1/2 HP motor)	2	7000	14000
(e)	Sewing machine with motor stand (1/2 HP)	4	5500	22000
(f)	Scissors, measuring instruments, checking table and miscellaneous items	LS	30000	30000
(g)	Garment washing machine 12kg. capacity	1	75000	75000
(h)	Hydro-extractor 25 kg. capacity	1	78000	78000
(i)	Dryer Tumbler 25 kg. capacity	1	165000	165000
(j)	Washing room trolleys	4	11000	44000
(k)	Steam press portable type	6	19000	114000
(l)	Packing, forwarding, CST and Others	LS		110000
Total				1227000

(iii) Other Fixed Assets	(Rs.)
(a) Erection and installation	100000
(b) Office furniture	50000
(c) Pre-operative expenses	30000
Total	180000
Total Fixed Capital(i)+(ii)+(iii)	3357000

B. Working Capital (per month)
(i) Staff and Labour Wages

Sl. No.	Designation	Nos.	Rate (Rs.)	Amount (In Rs.)
1.	Plant Manager	1	16000	16000
2.	Sales Representative	1	9000	9000
3.	Clerk/Store-keeper	1	5000	5000
4.	Peon	1	3000	3000
5.	Watchman	1	3000	3000
Total				36000
Production Staff
1.	Cutting Master	1	10000	10000
2.	Supervisor	1	7000	7000
3.	Skilled workers	67	5000	335000
4.	Pressing man	6	5000	30000
5.	Helpers	7	4500	31500
Total				449500
Perquisites @ 20%				89900
G.Total				539400

(ii) Raw Material

Sl. No.	Description	Qty. Unit	Rate (In Rs.)	Amount (In Rs.)
1.	Dyed/bleached knitted cotton cloth 40s count for vests and panties (kgs.)	2520	180	453600
2.	Dyed/bleached knitted cotton cloth 30s and 34s count for briefs (kgs.)	756	150	113400
3.	Top elastic for briefs and panties (mts.)	18000	4.6	82800
4.	Leg elastic for briefs and panties (mts.)	21000	1.5	31500
5.	Labels, size label, polythene bag, brand boxes	LS	12000	12000
6.	Sewing thread	LS	8500	8500
7.	Detergent for washing	LS	6000	6000
Total				707800

(iii) Utilities (per month)	(Rs.)
Electricity bill	14000
Water charges	1200
Total	15200

(iv) Other Contingent Expenses (per month)	(Rs.)
(a) Advertisement and Publicity	8000
(b) Postage/stationery	1000
(c) Repair and maintenance	10000
(d) Transport/travelling charges	5000
(e) Insurance	700
(f) Telephone bills	2000
(g) Miscellaneous expenses	5000
Total	31700
(v) Total Recurring Expenses (per month)	1294100
(vi) Total Working Capital for 2 months	2588200

C. Total Capital Investment	(Rs.)
(i) Land and building	1950000
(ii) Machinery and equipment	1227000
(iii) Working capital for 2 months	2588200
Total	5765200

Machinery Utilization

Capacity utilisation of plant and machinery is considered as 70% of installed capacity. However, this can be improved to 80% during 3rd year of production.

Financial Analysis

(1) Cost of Production (per year)	(Rs.)
Recurring expenses	15529200
Depreciation on building @ 5%	97500
Depreciation on machinery @ 10%	122700
Depreciation on office furniture @ 15%	7500
Interest on total investment @ 14%	807128
Total	16564028

(2) Turnover (per year) by Sales

Product	Qty. (Rs.)	Rate/Dz (Rs.)	Amount (Rs.)
Vest and Ladies panties	36000	315	11340000
Briefs	18000	370	6660000
Total	54000		18000000

(3) Net Profit (per year)	1435972
(4) Net Profit Ratio (Net Profit/Turnover (per year)	7.98%
(5) Rate of Return on Investment (Net Profit/Total Capital Investment)	24.91%

(6) Break-even Point

Fixed Cost	(Rs.)
Depreciation	227700
Interest on capital investment	807128
40% of wages of staff and labour	2589120
40% of other contingent expenses	148800
Insurance	8400
Total	3781148

B.E.P.	=	FC × 100 -------------
		FC + Profit
	=	72.48%

Addresses of Machinery and Equipment Suppliers

1. M/s. Paras Special Machine Co.
Madhopur Kucha No. 7,
Rohan Road, Ludhiana.

2. M/s. Vijay Sewing (P) Ltd.
17-D, Everest House, 46-C,
Chowringhee Road, Kolkata.

3. M/s. Industrial Machines Pvt. Ltd.
1/23 B, Asaf Ali Road,
New Delhi-110002.

4. M/s. Apparel and Leather Techniques Pvt. Ltd.
Kaikondanahalli,
Sarjapur Road,
Near Bellaandur Gate,
Bangalore-560035.

5. M/s. Industrial Sewing Systems
30, Ramakrishna Street,
North Usman Road,
T. Nagar, Chennai.

Raw Material Suppliers 

1. M/s. Vardhman Threads, Mahavir Spinning Mills Ltd.
Chandigarh Road,
Ludhiana-141001.

2. M/s. Powerloom Cloth Manufacturing Centre Erode, Bhiwandi, Mumbai, Surat etc.

backup, limewire