PROJECT REPORT
GARMENT MANUFACTURING
Submitted
to
Telangana State Industrial Infrastructure
Corporation Ltd (TSIIC)
Submitted
by
Ms Dipti Mrinalini Yejerla
Introduction
Readymade garment industry has occupied a unique place in the industrial scenario
of our country by generating substantial export earnings and creating lot of
employment. Its contribution to industrial production, employment and export
earnings is very significant. This industry provides one of the basic necessities of life.
The employment provided by it is a source of livelihood for millions of people. It also
provides maximum employment with minimum capital investment. Since this industry
is highly labour-intensive, it is ideally suited to Indian condition. This project report is
prepared for the manufacture of gents shirts, gents trousers as they find wide
acceptance in local and international markets. Such establishments can be easily set
up by any person having the knowledge of cutting and stitching operations.
Market Potential
Readymade garments are the choice of urban people. It is also gaining wider
acceptance in semi urban and rural areas. The huge charges made by tailors and
delay in delivery have made people to switch over to readymade garments. In
domestic market and export market, it has made spectacular progress in the last
decade. This industry is becoming very vibrant and lot of foreign investment pouring
in this industry because of low risk and high earning nature of this industry. As these
products are fashion oriented, entrepreneurs should always keep in mind the
changing fashion styles. Considering its advantageous position, it is assumed that
there will be no constraint in marketing of gents readymade garments.
Technical Aspects
Process of Manufacture
The process involves the following steps: Procurement of Fabric : Dyed/
bleached/printed cotton/synthetic fabrics as per demand are to be procured from the
open market. The 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 any
visible in the fabric are eliminated.
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 is carried out by the cutting machine. Stitching is carried
out for individual portion of the garments by skilled workers with the help of overlock,
lock stitch machines etc.
Washing, Checking, Pressing and Packing : All garments 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 garments
are hydro extracted to remove excess water and after this, these garments are dried
in tumbler dryer. 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
eliminated. The individual pieces are pressed by steam presses to remove any
wrinkle marks and packed in the carton boxes.
About the Promoter
Ms Dipti Mrinalini Yejerla is a first generation young aspiring woman entrepreneur
inspired by initiatives of Government of Telangana in promoting industries. She is
interested in starting the industry for self reliance and also for providing employment
to deserving women. She is a an young Engineering graduate in Information
Technology. She did masters program in International Development from Maxwell
School of Citizenship and Public Affairs, Syracuse University, Newyork. She has
done a course on Indian Fashion Apparel and Boutique Management from National
Institute of Fashion Technology, Hyderabad.
Other Features of the Project:
The unit comes in category A1 and is eligible for the below incentives under
Textiles and Apparel Policy (2017-22), Department of Industries of Telangana
State.
a. 35% investment subsidy on fixed capital Investment
b. Interest subsidy under Pavala Vaddi Scheme on the term loan in
excess of 3% per annum subject to a maximum reimbursement of
9% per annum for a period of 5 years.
c. 100% reimbursement of Stamp duty for Lease of Land/Shed/
Buildings and also mortgages and hypothecations.
d. Fixed power cost reimbursement @ Rs. 1.00 per unit for a period of 5
years
Location of the Unit:
The unit is proposed with an area of 1072 Sq. yards (plot no 1) at Textile Park,
Pashamylaram, Sangareddy District, Telangana State.
Land, Building and Machinery Cost:
Fixed Assets
Land Cost
S. No. Description [Link] Rate Amount
1 Land Cost of 1072 @ Sq meters 1072 8320 89,19,000
@Rs8320
Sub Total 89,19,000
Building and Civil Works
S. No. Description Qty. Rate Amount
1 Factory Shed, Raw Material room, 65,81,000
Finished goods Room ,Compound walls
and other civil works
Sub Total 65,81,000
Machinery
S. No. Description of Equipment Qty. Rate Amount
1 Fabric inspection machine 1 200000 2,00,000
2 8" Power driven cloth cutting machine 1 90000 90,000
Single needle lock stitch machine with 50 20000 10,00,000
3 motor
2 Needle overlock safety stitching 1 50000 50,000
4 machine with edge trimmer
5 Double Needle lock stitch machine 2 75000 1,50,000
6 Double Needle feed of the arm machine 1 120000 1,20,000
7 Button holing machine 1 160000 1,60,000
8 Button stitching machine 1 75000 75,000
9 Hot fusing press 1 80000 80,000
Garment washing machine 25 kg. 1 160000 1,60,000
10 capacity
11 Hydro extractor 25 kg. capacity 1 90000 90,000
12 Tumbler dryer 25 [Link] 1 160000 1,60,000
Flatbed steam iron press with vacuum 4 85000 3,40,000
13 table
14 Zig zag embroidery machine 1 45000 45,000
15 Generator set 30KVA 1 200000 2,00,000
16 Washing room trolleys 4 12000 48,000
Testing equipment’s (ends/pick checker, LS 32000 32,000
17 electronic balance, laundro meter etc.)
Sub Total 30,00,000
Grand Total 1,85,00,000
Total Project Cost:
A. PROJECT COST
(Rs in lakhs)
Description Amount
1. Land Cost of 1072 [Link] @Rs.8320 Per [Link] 89.19
2. Buildings & Civil Works 65.81
3. Plant & Machinery 30.00
4. Margin Money for Working capital 15.00
Total 200.00
B. MEANS OF FINANCE
(Rs in lakhs)
Description Amount
1. Promoter's contribution 20% of the project cost 40.00
2. Term Loan from Banks/FIs 80% 148.00
3. Working Capital 80% 12.00
Total 200.00
PROJECT AT A GLANCE
1 Name & Address of the Promoter : Ms Dipti Mrinalini Yejerla
2 Name of the Unit : M/s.
Readymade Garments
3 Name of the Activity :
Manufacturing
Plot No:1Textile Park,
4 Proposed Address of the Unit : Pashamylaram, Sangareddy
District, Telangana State
5 Project Cost : 200.00
6 Details of Project Cost :
Land Cost of 1072 Sq Meters : 89.19
Building and Civil Works : 65.81
Plant and Machionary : 30.00
Working Capital : 15.00
TOTAL : 200.00
7 Means of Finance :
Promotor controbution @20% : 40.00
Term Loan @ 80% : 148.00
Working Capital@ 80% : 12.00
TOTAL 200.00
8 Revenue from Sales (3rd Year) : 383.67
9 Profit (3rd Year) : 63.77
60
10 [Link] Employment :
11 Break Even Point (3rd Year) : 28.40%
12 D.S.C.R (3rd Year) : 1.51
13 D.S.C.R (Average) 1.69
23%
14 IRR
15 NPV 40.26