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Manufacture of Shirt (top) and Skirts

PRODUCT CODE QUALITY AND STANDARDS : 264104 : Garment Quality Guide IS 12675 Children Garment Packaging for Export IS 4039 Garments Guide for Positioning of Labels IS 1094 : Qty. : Shirts/Tops : 108,000 Pieces Skirts/Dress : 72,000 Pieces Value : Rs. 223.20 lakh MONTH AND YEAR OF PREPARATION PREPARED BY : May, 2003 : Branch Small Industries Service Institute 386, Patel Road, Coimbatore-641009 (Tamil Nadu)

PRODUCTION CAPACITY

INTRODUCTION
Manufacture of Shirt (top) and Skirts is a new area in garment manufacture which has been developing very fast in our country in recent years, as there is good scope to set up this type of garment manufacturing unit in the country to fulfil the huge demand in the domestic market. These garments are generally manufactured from special type of fabrics having different colours and shades attached with frill, tape, lace at different places of garments to attract the children. It is essential for an entrepreneur to keep certain factors like colour combination of different fabric and design in mind as these make a significant changes in gar ments. Sometimes, small motif of embroidery work and fixing stickers on the garments makes more attractive. This report is prepared to give details on setting up unit for the manufacture of shirt (top and

skirts) with the capacity of 1,80,000 pieces per annum.

MARKET POTENTIAL
As this is a growing field in the area of readymade garment industry and consumers in urban areas are preferring to purchase the children garments directly from show rooms rather stitching it from the tailoring shops, there will not be any constraint in marketing of these garments. It is also a difficult task for a tailoring shops to stitch childrens garments as per choice. At present, these industries are mostly present in selected cities only, so there is a good scope to make the venture successful.

B ASIS AND PRESUMPTIONS

This project is prepared on following assumptions:

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The number of working days is considered as 300 working days in a year. The rental value indicated in the project is Rs. 30 per sq. mt. Costs of machinery and equipment referred in this project profile refer to a particular make and approximately to those prevailing at the time of preparation of this project. Installation and electrification expenditure is taken at 10% of cost of machinery and equipment. Non-refundable deposits, project report cost, trial production, security deposit with Electricity Board are considered under pre-operative expenses. Depreciation has been taken @ 10% on plant and machinery, 20% on office fur niture and 25% on workshop accessories. Interest rate on capital loan is taken at 14% per annum.

be identified for regular supply. After the purchase, fabric is inspected to check and remove any weaving defects, colour variation etc.

Cutting and Sewing The inspected fabric piece is laid on the cutting table for cutting. After cutting of fabric, individual components are sorted out like front, back, collar, pocket, cuff, etc. and proper bundles of different sizes like small, medium, large etc. are made separately for identification. Different components are made by tailors and after this, required components are sewn together to make a complete garment. Labelling Labels like brand name, washing instruction, size of the garments are sewn at the respective places of the garments. Washing, Checking, Pressing and Packing All gar ments are charged into washing machine containing mild detergent and washed for 4 hours in order to remove dirt and stains acquired during the manufacturing process. After washing, the gar ments are hydroextracted to remove excess water and after this, they are dried in the tumbler dryer. Final checking is done before pressing and packing on the checking table so that any fault in the piece can be removed and protruding thread may be eliminated. The individual pieces are pressed by steam presses to remove any wrinkle marks. Finishing and Packing After completion of steam pressing, the garments are packed as per the buyers requirements.

IMPLEMENTATION SCHEDULE
Time period in months required for executing different types of works for implementing this project is estimated at 6 months period approximately. However, on considering that some of many project implementing activities may be overlapping and can be done at the same time. The project implementation will take a total period of five months approximately for starting the actual production.

TECHNICAL ASPECTS
Process of Manufacture

Procurement and Inspection of Fabric Raw material basically consists of fabric and accessories like buttons, threads, elastic, tags, labels, polybags are to be procured locally. Suitable suppliers for these items would have to

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Quality Control and Standards Since the garments are made on specific design, there is no Indian standard specification on children garments. As a general rule, the product should be clean from oil stain, cuts and holes etc. Production Capacity (per annum)
Product Quantity (Pcs) Shirt (top) and Skirts 1,80,000 Value (Rs.) 2,23,20,000

Sl. Description No. 3. Overlock stitching machine with motor and accessories

Nos. 15

Rate (Rs.) 6,000

Amount (Rs.) 90,000

4. Garment washing 1 1,45,000 1,45,000 machine 25kg capacity 5. Hydroextractor 25 kg. capacity 6. Tumbler dryer 25 kg. capacity 7. Potable steam press 1 70,000 70,000

1 1,40,000 1,40,000 6 20,000 1,20,000 10,000 20,000 40,000 20,000 9,30,000 (Rs.) 87,000 25,000 18,000 Total 1,30,000 10,60,000

Motive Power Totally, 30 HP of power is required to operate all the machines in this unit. Pollution Control Although not required, enterpreneurs have to contact State Pollution Control Board for necessary guidance. Energy Conservation Maximum care should be taken while selecting the machinery and other electrical equipments so as to maintain minimum power consumption with maximum efficiency.

8. Washing room trolleys 4 9. Other miscellaneous LS assets Total (iii) Other Fixed Assets (a) Erection and installation (b) Office furniture (c) Pre-operative expenses

Total Fixed Capital

B. Working Capital (per month)

(i) Staff and Labour Wages Sl. Designation No. 1. Manager 2. Clerk/Store-keeper 3. Watchman Nos. 1 1 1 Total Rate (Rs.) 8000 3000 2250 Amount (Rs.) 8000 3000 2250 13250

FINANCIAL ASPECTS
A. Fixed Capital
(i) Land and Building Building area Rent per month (ii) Machinery and Equipments Sl. Description No. 1. Power operated cutting machine 2. Power operated SNLS stitching machine Nos. 1 60 Rate (Rs.) 65,000 Amount (Rs.) 65,000 500 sq. mt. Rs. 10,000

Production Staff
1. Cutting master 2. Skilled workers 3. Pressing man 4. Helpers 1 77 6 7 7000 3500 3000 2250 Total 7000 269500 18000 15750 3,10,250 64,700 G. Total 3,88,200

4,000 2,40,000

Prequisites @ 20%

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(ii) Raw Material Sl. Description No. 1. Cotton popline/ terrycot fabric in different colours, design and shades Qty. (mts.) 12,000 Rate/ unit 44 Amount (Rs.) 5,28,000

MACHINERY UTILIZATION
Capacity utilisation is considered as 75% of installed capacity.

FINANCIAL ANALYSIS
(1) Cost of Production (per year) 35 3,52,800 Recurring expenses Depreciation of machinery @ 10% Depreciation on office furniture @ 20% Depreciation on workshop items @ 25% 1,00,000 30,000 (2) Turnover (per year) LS LS 75,000 1,20,000 3,000 Total 12,08,800 (Rs.) 14,500 2,000 Total 16,500 Product Shirts/Tops Skirts/Dress Total (3) Net Profit (4) Net Profit Ratio (Net Profit/ Turnover) Pcs. Rate/ Pc. 1,08,000 72,000 1,80,000 120 130 Amount (Rs.) 1,29,60,000 93,60,000 2,23,20,000 Rs. 17,49,270 7.83% Interest on total investment @ 18% Total (Rs.) 1,96,38,000 87,000 5,000 5,000 8,35,730 2,05,70,730

2. Cotton popline/ 10080 Rubia or fancy fabric in different colours, design and shades 3. Lining cloth collars/stripes etc. 4. Button, Hooks, Plastic etc. 5. Sewing thread, packing material 6. Packing materials 7. Detergents for washing LS LS

(iii) Utilities (per month) Electricity Water charges

(5) Rate of Return on Investment 29.30% (Net Profit/Total Capital Investment) (6) Break-even Point Fixed Cost Rent on Building Depreciation Interest on Capital investment 40% of wages of staff and labour 40% of other contingent expenses Insurance Total B.E.P. = FC 100 FC + profit 3138090 100 3138090+1749270 3138090 100 4887360 64.20% (Rs.) 1,20,000 97,000 8,35,730 18,63,360 1,10,400 12,000 31,38,090

(iv) Other Contingent Expenses (per month) (Rs.) (a) Rent for building (b) Postage/stationery (c) Repair and maintenance (d) Transport/travelling charges (e) Insurance (f) Miscellaneous Total (v) Total Recurring Expenses (vi) Total Working Capital for 3 months 10,000 1,000 9,000 1,000 1,000 1,000 23,000 16,36,500 49,09,500

C. Total Capital Investment

(i) Machinery and equipment (ii) Working capital for 3 months Total Rs. 10,60,000 Rs. 49,09,500 Rs. 59,69,500

= =

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Addresses of Machinery Equipment Suppliers

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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.

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,