Cotton Knitted Undergarments (Briefs, Panties, Vests) Product Code Quality and Standards Uploaded on Introduction 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. 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. : 260104000/260102008 The following Indian Standards may be referred. : IS 4663:1980, IS 4665:1975, IS 4809:1968, IS 4046:1981 : July 2007

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. 1. 2. 3. 4. IS 4046:1981 IS 4809:1968 IS 4963:1980 IS 4965(Part-1):1975 Title Gents cotton knitted briefs Cotton knitted string vests Plain knitted cotton vests Interlock cotton knitted vests.

Production Capacity (per annum) Product Vests and ladies panties Qty. (Dzs.) 36,000 18,000 Total 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 450 sq. mt.@ Rs 1500 psm. amounting Rs 6,75,000 300 sq.mt. 50 sq.mt. 50 sq.mt. 25 425 12,75,000 sq.mt. sq.mt. 54,000 Value (Rs.) 11340000 6660000 18000000

(i) Land Building :

and

Factory shed Store (Raw material) Store (Finished goods) Office etc. Total covered area Total construction cost Rs. 3000/sq.mt.

Building Area

Total investment in land and building. (ii) Machinery and Equipments Sl. No. (a) (b) (c) (d) (e) (f) (g) (h) (i) (j) (k) (l) Total (iii) Other Fixed Assets (a) Erection and installation (b) Office furniture (c) Pre-operative expenses Total Total Fixed Capital(i)+(ii)+(iii) B. Working Capital (per month) (i) Staff and Labour Wages Sl. No. 1. 2. 3. 4. 5. Total Production Staff 1. 2. 3. Cutting Master Supervisor Skilled workers

1950000

Description Cutting machine (Power Operated)

No. 1

Rate (In Rs.) 75000 8000 15000 7000 5500 30000 75000 78000 165000 11000 19000

Amount (In Rs.) 75000 440000 60000 14000 22000 30000 75000 78000 165000 44000 114000 110000 1227000

Overlock machine (3 thread) with motor and stand 55 (1/2 HP) Folding machine with stand and motor (1/2HP 4 motor) Rib Cutting machine with stand and motor (1/2 HP 2 motor) Sewing machine with motor stand (1/2 HP) 4

Scissors, measuring instruments, checking table LS and miscellaneous items Garment washing machine 12kg. capacity Hydro-extractor 25 kg. capacity Dryer Tumbler 25 kg. capacity Washing room trolleys Steam press portable type Packing, forwarding, CST and Others 1 1 1 4 6 LS

(Rs.) 100000 50000 30000 180000 3357000

Designation Plant Manager Sales Representative Clerk/Store-keeper Peon Watchman

Nos. 1 1 1 1 1

Rate (Rs.) 16000 9000 5000 3000 3000

Amount (In Rs.) 16000 9000 5000 3000 3000 36000

1 1 67

10000 7000 5000

10000 7000 335000

4. 5. Total

Pressing man Helpers

6 7

5000 4500

30000 31500 449500 89900 539400

Perquisites @ 20% G.Total (ii) Raw Material Sl. No. 1. 2. 3. 4. 5. 6. 7. Total (iii) Utilities (per month) Electricity bill Water charges Total (iv) Other Contingent Expenses (per month) (a) Advertisement and Publicity (b) Postage/stationery (c) Repair and maintenance (d) Transport/travelling charges (e) Insurance (f) Telephone bills (g) Miscellaneous expenses Total (v) Total Recurring Expenses (per month) (vi) Total Working Capital for 2 months C. Total Capital Investment (i) Land and building (ii) Machinery and equipment (iii) Working capital for 2 months Total Machinery Utilization Qty. Unit 40s 2520 Rate (In Rs.) 180 150 4.6 1.5 12000 8500 6000

Description Dyed/bleached knitted cotton cloth count for vests and panties (kgs.)

Amount (In Rs.) 453600 113400 82800 31500 12000 8500 6000 707800

Dyed/bleached knitted cotton cloth 30s and 756 34s count for briefs (kgs.) Top elastic for briefs and panties (mts.) Leg elastic for briefs and panties (mts.) 18000 21000

Labels, size label, polythene bag, brand LS boxes Sewing thread Detergent for washing LS LS

(Rs.) 14000 1200 15200 (Rs.) 8000 1000 10000 5000 700 2000 5000 31700 1294100 2588200 (Rs.) 1950000 1227000 2588200 5765200

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) Recurring expenses Depreciation on building @ 5% Depreciation on machinery @ 10% Depreciation on office furniture @ 15% Interest on total investment @ 14% Total (2) Turnover (per year) by Sales Product Vest and Ladies panties Briefs Total Qty. (Rs.) 36000 18000 54000 Rate/Dz (Rs.) 315 370 Amount (Rs.) 11340000 6660000 18000000 (Rs.) 15529200 97500 122700 7500 807128 16564028

(3) Net Profit (per year) (4) Net Profit Ratio (Net Profit/Turnover (per year) (5) Rate of Return on Investment (Net Profit/Total Capital Investment) (6) Break-even Point Fixed Cost Depreciation Interest on capital investment 40% of wages of staff and labour 40% of other contingent expenses Insurance Total FC ------------FC + Profit

1435972 7.98% 24.91%

(Rs.) 227700 807128 2589120 148800 8400 3781148 100

B.E.P.

72.48%

Addresses of Machinery and Equipment Suppliers 1. Madhopur Rohan 2. 17-D, M/s. Paras Kucha Vijay Everest Special Road, Sewing Machine Co. 7, Ludhiana. Ltd. 46-C,

No.

M/s.

House,

(P)

Chowringhee 3. 1/23 New 4. M/s. Kaikondanahalli, Sarjapur Near Bangalore-560035. 5. 30, North T. Raw 1. M/s. Chandigarh Ludhiana-141001. Vardhman M/s. B, Apparel Industrial

Road, Asaf Machines Ali Techniques Pvt.

Kolkata. Ltd. Road, Delhi-110002. Pvt. Ltd. Road, Gate, Sewing Systems Street, Road, Chennai. Suppliers Mahavir Spinning Mills Ltd. Road,

and

Leather Bellaandur

M/s.

Industrial Ramakrishna Usman Nagar, Material Threads,

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