Thursday, 10 November 2011

Start a School Uniforms Manufacturing Unit


(200) Start a School Uniforms Manufacturing Unit

This profile shows the costs structure, profitability and other particulars for making school uniforms for children in the age group 3-10 years. It is suggested that school uniforms be made for six to eight months and ready-made garments for the remaining months of the year in order to keep that unit functioning. Cloth requirements, costs and product prices are worked out in this report on the basis of average sizes of uniforms and readymade garments.
Market Potential
Uniform for school students is a must in any region. It can be assumed that every student requires at least two pairs of uniform every year. This assumption suggests that the proposed capacity of 6,000 pairs requires at least 3,000 students in the location where this unit is to be set up. Therefore the unit would have enough market potential in any area where 8-10 schools function. The total market potential in any particular location can be worked out by multiplying the number of students upto 10 years age in each school and the number of schools. Generally people prefer to buy ready-made garments for children instead of getting it stitched. Additional item proposed in this project is readymade garments for children. Capacity of such ready-made garments is only 3,000 pieces and the market would not be difficult as clothing is one of the basic necessities.
Basis and Presumptions
1. This project profile has been prepared on the basis of double shift of 16 hrs. per day, 25 days in a month.
2. The rates quoted in respect of salary and wages are above the minimum wages.
3. Interest rate on term loan and working capital loan has been taken @ 13% .
4. Margin money is required at 30% of total capital investment.
5. Cost of machinery and equipments, raw materials and consumables, other expenses etc. indicated in the profile are based on the prices prevailing at the time of project preparation. Therefore, these are subject to necessary changes from time to time.
Implementation Schedule
For commencement of production, the project will take a period of 6 months from the date of approval of the scheme. Break-up of the activities with relative time for each activity is shown below:
Sl. No.Name of ActivityPeriod
1.Scheme preparation and approval1 month
2.Provisional registration as SSI1 week
3.Sanction of loan3 months
4.Placement of orders for delivery of machinery2 weeks
5.Installation of machinery1 week
6.Electrification2 weeks
7.Recruitment of staff and workers.2 weeks
Technical Aspects
Process of Manufacture
Manufacturing process involves following steps:
1. Procurement of fabric: As per the demand, dyed/bleached/printed cotton/synthetic fabric of various colours are to be procured from the market. Fabric will be inspected by laying on the inspection table against light before cutting so that unevenness in colour/ shade or any other fault if visible in the fabric are eliminated.
2. Cutting and Stitching: Inspected fabric is placed on the cutting table in the form of layers and then the different parts of the respective garments is demarked by a chalk as per different sizes. Cutting of garment parts is done manually.
Stitching is carried out for individual portion of the garments by skilled workers with the help of over lock, lock stitch machines etc.
3. Checking, Processing and Packing: Final checking is done before pressing and packing on the checking table so that any fault in the piece may be removed and protruding threads may be eliminated. Individual pieces are pressed by electric presses to remove any wrinklemarks and packed in the carton boxes.
Quality Control and Standards
No standards are available for the manufacturing of these items. However, care must be taken to procure good quality apparel fabrics.
Production Capacity
Production capacity of the unit is 15,000 pieces of school uniforms including 3,000 pieces of children readymade garments.
Motive Power
5 HP power is required to run this unit at full capacity.
Financial Aspects
A. Fixed Capital
(i) Land and Building
Land @ Rs. 3000p.s.m. Amounting Rs 600000.00
Building Area
Factory shed100 sq. mt.
Store (Raw material)25 sq. mt.
Store (Finished goods)50 sq. mt.
Office etc.25 sq. mt.
Total Covered Area100 sq. mt.
Total Construction Cost @ Rs. 4000/
Total Investment in land and Building1000000.00
(ii) Machinery and Equipments
Sl. No.DescriptionNo.Rate (Rs.)Amount (Rs.)
1.Singer universal sewing machine with 1/4 HP4800032000
2.Singer automatic zig-zag machine12400024000
3.Singer overlock with 1/2 HP motor190009000
4.Cutting table125002500
5.Electric iron220004000
6.Other miscellaneous assets (scissors, tapes, etc.)LS36003600

(iii)Other Fixed Assets(Rs.)
(a)Erection and installation8000
(c)Pre-operative expenses10000
 Total Fixed Capital(i)+(ii)+(iii)1133100
B. Working Capital (per month)
(i) Staff and Labour Wages
Sl. No.DesignationNos.Rate (Rs.)Amount (Rs.)
1.Manager/ Cutting Master180008000
2.Skilled workers12500060000
3.Un-skilled workers6300018000
 Perquisites @ 22%19580
G. Total
(ii) Raw Material
Sl. No.DesignationQty (mts.)Rate / Unit (Rs.)Amount (Rs.)
1.Plain dyed P/C cloth4006425600
2.P/C cloth for Shirting5505831900
3.Dyed Cotton cloth for Froc4605223920
4.P/C cloth for blouse5205227040
5.Cloth for stitching of RMG5206031200
6.Sewing thread, zips etc.LS 3500

(iii) Utilities (per month)(Rs.)
Electricity bill, water and sanitation4000

(iv)Other Contingent Expenses (per month)(Rs.)
a.Repair and maintenance @ 5%4000
b.Postage/stationery, telephone etc.1000

(v)Total Recurring Expenses (per month)(Rs.)
a.Staff and labour108580
b.Raw material143160
d.Other expenses7000
(vi) Total Working Capital (for 1 month) Rs. 262740
C. Total Capital Investment
i.Land ,Machinery and equipment1133100
ii.Working capital for 2 months525480
Financial Analysis
(1)Cost of Production (per year)(Rs.)
a.Recurring expenses3152880
b.Depreciation on machinery @10%7510
cDepreciation on Building @ 5 %50000
d.Interest on total capital investment @ 13%34156.2
(2) Total Sales
e.Readymade Garments6000120720000
 Total30000 3480000

(3) Profit (per annum)235453.8
(4) Net Profit Ratio
(Net Profit/ Turnover per annum)
(5) Rate of Return on Investment
(Net Profit/Total Capital Investment)
(6) Break-even Point
 Fixed CostRs.
(a)Depreciation on building50000
(b)Depreciation on machinery @ 10%7510
(c)Interest on term loan amount34156.2
(d)40% of salary and wages521184
(e)40% of other expenses33600

  FC x 100
  FC + Profit
Addresses of Machinery Suppliers
1. M/s. Technik India (Apparel) Private Limited
74-E, First Floor,
Southern Wing,
Mount Road, Guindy,
Chennai-600 032
2. M/s. Industrial Sewing Systems
19, First Floor,
Jawaharlal Nehru Salai,
Ambal Nagar,
Chennai-600 097
3. M/s. Apparel and Leather Technics Limited
Kaikondanahalli, Sarjapur Road,
Near Bellandur Gate,
Carmelram Post,
Bangalore–560 035
4. M/s. Apparels and Leather Technics Limited
B-283, Okhla Industrial Area,
New Delhi-110 020.
Raw Material Suppliers
1. M/s. Shree Meena Fashions
No. 478/32, F, Ist Floor,
Chinery Vayal Kadu, Pallapatty,
Salem-636 009
2. M/s. Kalaimani Textiles
No. 1, Selvapuram,
Thennampalayam Extn.
Tirupur-641 604


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