Thursday, 10 November 2011

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 4046:1981Gents cotton knitted briefs
2.IS 4809:1968Cotton knitted string vests
3.IS 4963:1980Plain knitted cotton vests
4.IS 4965(Part-1):1975Interlock cotton knitted vests.
Production Capacity (per annum)
ProductQty. (Dzs.)Value (Rs.)
Vests and ladies panties36,00011340000
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 shed450 sq. mt.@ Rs 1500 psm. amounting Rs 6,75,000
Building AreaStore (Raw material)
Store (Finished goods)
Office etc.
Total covered area
Total construction
cost Rs. 3000/
Total investment in land and building.1950000
(ii) Machinery and Equipments
Sl. No.DescriptionNo.Rate
(In Rs.)
(In Rs.)
(a)Cutting machine (Power Operated)17500075000
(b)Overlock machine (3 thread) with motor and stand (1/2 HP)558000440000
(c)Folding machine with stand and motor (1/2HP motor)41500060000
(d)Rib Cutting machine with stand and motor (1/2 HP motor)2700014000
(e)Sewing machine with motor stand (1/2 HP)4550022000
(f)Scissors, measuring instruments, checking table and miscellaneous itemsLS3000030000
(g)Garment washing machine 12kg. capacity17500075000
(h)Hydro-extractor 25 kg. capacity17800078000
(i)Dryer Tumbler 25 kg. capacity1165000165000
(j)Washing room trolleys41100044000
(k)Steam press portable type619000114000
(l)Packing, forwarding, CST and OthersLS 110000

(iii) Other Fixed Assets(Rs.)
(a) Erection and installation100000
(b) Office furniture50000
(c) Pre-operative expenses30000
Total Fixed Capital(i)+(ii)+(iii)
B. Working Capital (per month)
(i) Staff and Labour Wages
Sl. No.DesignationNos.Rate
(In Rs.)
1.Plant Manager11600016000
2.Sales Representative190009000
Production Staff
1.Cutting Master11000010000
3.Skilled workers675000335000
4.Pressing man6500030000
Perquisites @ 20%89900
(ii) Raw Material
Sl. No.DescriptionQty. UnitRate
(In Rs.)
(In Rs.)
1.Dyed/bleached knitted cotton cloth 40s count for vests and panties (kgs.)2520180453600
2.Dyed/bleached knitted cotton cloth 30s and 34s count for briefs (kgs.)756150113400
3.Top elastic for briefs and panties (mts.)180004.682800
4.Leg elastic for briefs and panties (mts.)210001.531500
5.Labels, size label, polythene bag, brand boxesLS1200012000
6.Sewing threadLS85008500
7.Detergent for washingLS60006000

(iii) Utilities (per month)(Rs.)
Electricity bill14000
Water charges1200

(iv) Other Contingent Expenses (per month)(Rs.)
(a) Advertisement and Publicity8000
(b) Postage/stationery1000
(c) Repair and maintenance10000
(d) Transport/travelling charges5000
(e) Insurance700
(f) Telephone bills2000
(g) Miscellaneous expenses5000
(v) Total Recurring Expenses (per month)1294100
(vi) Total Working Capital for 2 months2588200

C. Total Capital Investment(Rs.)
(i) Land and building1950000
(ii) Machinery and equipment1227000
(iii) Working capital for 2 months2588200
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 expenses15529200
Depreciation on building @ 5%97500
Depreciation on machinery @ 10%122700
Depreciation on office furniture @ 15%7500
Interest on total investment @ 14%807128
(2) Turnover (per year) by Sales
ProductQty. (Rs.)Rate/Dz (Rs.)Amount (Rs.)
Vest and Ladies panties3600031511340000
Total54000 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.)
Interest on capital investment807128
40% of wages of staff and labour2589120
40% of other contingent expenses148800

B.E.P.=FC × 100
  FC + Profit
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.
Sarjapur Road,
Near Bellaandur Gate,

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,

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

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