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The project report for Ready made churidar manufacturing is as follows:
After food and shelter, clothing is the most essential human need. Few years back, we had to depend on tailors to get our dress stitched, but now most of us depend on readymade garments. If we had to wait for the mercy of tailor for days or even weeks, that time, to get the dress stitched, now most of us choose the readymade cloths of any type/size/style/price, which we like and wear it right away. With the advent of online shops, there is no need to go to textile shops either. One can select his/her dress through computer and purchase it online by sitting at home itself. Readymade garments are usually cheaper than tailor made one as material is purchased in bulk quantity.
India’s textiles sector is one of the oldest industries in Indian economy dating back several centuries. Today, Indian sub continent is the second largest manufacturer of garments after China. India is known for its high quality garments. Most of the garment units are in MSME sector. Textile and apparel sector contributes 14% to industrial production, 4% to India's Gross Domestic Product (GDP) and constitutes 15% of the country's export earnings. The textiles industry is also labour intensive and is one of the largest employers. With over 45 million people, the industry is one of the largest sources of employment generation in the country.
With their high purchase power and modern life styles, readymade garment industries have a great scope. This unit is proposed to produce readymade churidars aiming the potential young customers.
The proposed products of the unit are Readymade Garments. Major products are
Readymade churidars
Churidars are made from various materials such as cotton, terri –cotton, silk, linen etc. according to the market demand. It is made in different sizes . Only fast moving sizes are made in the initial stage. The raw materials are procured from Erode, Coimbathore, Banglore and Gujarath, where the rate is comparatively less.
Method of Production:
The process includes 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 checked by laying on the inspection table against light before cutting so that unevenness in color/shade or any other fault, if any visible in the fabric are eliminated.
Cutting and Stitching:
The checked 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 over lock, lock stitch machines etc.
Rinsing, Checking, Pressing and Packing:
All garments are charged into rinsing machine containing mild detergent and rinsed for 4 hours in order to eliminate dirt and stains acquired during the manufacturing process. After rinsing, the garments are hydro extracted to eliminate excess water and after this, these garments are dried in tumbler dryer. End checking is done before pressing and packing on the checking table so that any fault in the piece may be eliminated and protruding threads eliminated. The individual pieces are pressed by steam presses to eliminate any wrinkle marks and packed in the carton boxes.
PROCESS
The raw material is procured from wholesale markets of Karnataka, Tamil Nadu, Maharashtra and Gujarat. After quality checking, with the help of designers, the cloth is cut and then move for stitching. Parts are stitched and finally stitch together to make the finished goods. After the final quality verification, move for packing.
CAPACITY OF PRODUCTION
Initially ten machines will be used for an average production of Hundred pieces per day, with the capacity utilization of 60%. Then it will be gradually increased to 90%. New markets are to be identified and along with it production can be enhanced.
The raw materials required are:
Cloths of different materials & lining cloths
Zib, hooks
Thread
Buttons,
Decoration materials as frills
Packing materials etc.
(ii) Machinery and Equipments | ||||
Sl. No. | Description | No. | Rate (In Rs.) | Amount (In Rs.) - Inc GST |
1 | Kaisiman Model 110 Round Knife Cutting Machine | 1 | 4,250 | 5,015 |
2 | Lipu Cloth Cutting M/c size 8" with 550 Watts | 1 | 13,500 | 15,930 |
3 | Jack Model JK-F4 D/D Sewing Machine Complete Set | 10 | 15,625 | 1,75,000 |
4 | Jack Model JK-1377E Electronic Button Stitch Sewing M/c Set. | 1 | 49,107 | 55,000 |
5 | Jack Model JK-781/782D Button Hole Sewing M.C | 1 | 92,000 | 1,03,040 |
6 | Jack Model JK-9270-13 1/8 3 Needle Feed Off M/c Complete Set. | 1 | 58,975 | 66,052 |
7 | Taking Model TK-1412P Front Placket Sewing Machine Set. | 1 | 78,000 | 87,360 |
8 | Hashima Model HP-450 Fusing Machine | 1 | 1,89,500 | 2,23,610 |
9 | Sunrise Vaccum Ironing Table Size 125*80cm | 1 | 21,500 | 25,370 |
10 | Sunrise Boiler with 2128 Press and 8 ltrs Capacity. | 1 | 18,500 | 21,830 |
11 | Sunrise Model Horizontal Washing Machine 25 kg. | 1 | 2,65,000 | 3,12,700 |
12 | Sunrise Model Hydro Extractor 15 kgs | 1 | 1,45,600 | 1,71,808 |
13 | Sunrise Model Tumble Drier 25 kgs | 1 | 2,45,500 | 2,89,690 |
14 | Sunrise Wash Room Trolley SS | 1 | 45,400 | 53,495 |
15 | Handling/Transport Charges | 1 | 45,000 | 52,700 |
16 | Servicing/Installation Charges | 1 | 30,000 | 35,400 |
Total | 16,94,000 |
High economic growth has resulted in higher disposable income in India. This has led to rise in demand for products creating a huge domestic market. The domestic market for apparel and lifestyle products, currently estimated at US$ 85 billion, is expected to grow at a Compound Annual Growth Rate (CAGR) of 11.8 per cent to reach US$ 160 billion by 2025.
India presently has entered the second phase of growth and is witnessing a massive rise in the domestic demand. This is primarily due to the rise in the standard of living caused by the rise in the middle -income groups.
In our target market, majority of the folk belongs to the middle-income group and their purchasing power is comparatively better with the gulf remittance. Peoples from all economic strata generally wish to wear attractive, quality dress in every special occasion. This unit also aims at customers of all classes, up to the upper middle class people. Youngsters and students are the major focusing area. When the unit gains grounds with the domestic sales, export is also aimed as a distant target.
Numerous industrial, educational, commercial, service and financial institutions are located around the unit. Most of the people living around the unit belong to middle class and they have sufficient purchase power. There are great numbers of readymade garments shops are functioning well in the town and nearby places. This unit can sell the products through those shops. An online portal is also planned to enhance the sales. Promoter’s personal contact with some of the garment shops will be beneficial in marketing the products.
Strategy
The promoter has personal contacts with many retail shops, where the products can be displayed and sold. Being an experienced person, the products can be directly sold to the customers who are known to them.
Sales through social media, is also planned. Online marketing is expected to grow in a fast pace as trend among the youth is towards that line. For that, attractive schemes like, ‘pay on delivery’, return if you don’t like’ etc. plan to implement. The physical as well as the digital marketing together, no doubt will boost the marketing of the products. With the growth of sales, expansion of the unit for more production will be needed.
Readymade churidar manufacturing
Address
: | [email protected] | |
Phone | : | 000000 |
Constitution | : | Proprietership |
Total project cost | : | ******* |
Fixed Capital | : | ******* |
Working Capital | : | ******* |
Total Bank loan | : | ******* |
Promoter(s) contribution | : | ******* |
Term loan | : | ******* |
Working capital loan | : | ******* |
|
Debt Service Coverage Ratio (Average) | :1.87 |
Current ratio (Average) | :2.63 |
Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
---|---|---|---|---|---|
Current ratio | 1.53 | 2.06 | 2.62 | 3.19 | 3.76 |
Quick ratio | 1.13 | 1.56 | 2.10 | 2.64 | 3.18 |
Interest coverage ratio | 3.87 | 5.55 | 7.00 | 9.48 | 14.71 |
Debt equity ratio | 2.863 | 2.080 | 1.528 | 1.020 | 0.542 |
TOL/TNW | 3.02 | 1.45 | 0.79 | 0.43 | 0.21 |
DSCR | 1.65 | 1.86 | 1.90 | 1.94 | 1.97 |
Gross profit Sales Percentage % | 29.23 % | 28.54 % | 28.18 % | 27.86 % | 27.50 % |
Net profit Sales Percentage % | 10.84 % | 10.56 % | 11.10 % | 11.57 % | 11.90 % |
BEP in % of installed capacity % | 49.90 % | 27.12 % | 27.12 % | 27.12 % | 27.12 % |
BEP in sales of Rs | 2,620,800.00 | 1,840,695.65 | 1,972,173.91 | 2,103,652.17 | 2,235,130.43 |
Return On Capital Employed | 0.26 | 0.34 | 0.34 | 0.33 | 0.33 |
Sl. no | Item | Amount Rs |
---|---|---|
1 | Factory Building & Shed | ******* |
2 | Plant & machinery | ******* |
3 | Furniture & Fittings | ******* |
4 | Preliminary expenses | ******* |
5 | Working Capital | ******* |
Total | ******* |
Sl. no | Item | Amount Rs |
---|---|---|
1 | Consumables / stock in hand | ******* |
2 | Work in progress | ******* |
3 | Finished goods | ******* |
4 | Working expense. | ******* |
5 | Receivables/Sundry debtors | ******* |
6 | Payables | ******* |
7 | Total working capital | ******* |
8 | Own Contribution | ******* |
9 | Working capital loan | ******* |
Sl. no | Item | Rate | Quantity | Unit | Total Rs | |
---|---|---|---|---|---|---|
1 | Churidar Sale | ******* | X | 43200 | Piece | ******* |
Total | ******* |
Sl. no | Item | Amount Rs |
---|---|---|
1 | Factory Rent | ******* |
2 | Stiching Staff & Skilled Workers - 10 no | ******* |
3 | Cutting Master - 2 No | ******* |
4 | Supervisor- 1 No | ******* |
5 | Sales Representatives - 2 No | ******* |
6 | Manager - 1 No | ******* |
7 | Repairs & Maintenance | ******* |
8 | Electricity, Power & Fuel | ******* |
9 | Travelling | ******* |
10 | Telephone & Internet | ******* |
11 | Printing & Stationery | ******* |
12 | General Maintenance | ******* |
13 | Packing Material | ******* |
14 | Ringeing Detergents | ******* |
15 | Sewing Threads | ******* |
16 | Trims & Embellishments | ******* |
17 | Blended Fabric | ******* |
18 | Cotton Fabric | ******* |
19 | Unskilled Workers - 9 no | ******* |
Total | ******* |
Sl. no | Item | Subsidy % | No. | Rate | Amount Rs |
---|---|---|---|---|---|
1 | Factory Building & Shed | ******* | 1 | ******* | ******* |
2 | Plant & machinery | ******* | 1 | ******* | ******* |
3 | Furniture & Fittings | ******* | 1 | ******* | ******* |
4 | Preliminary expenses | ******* | 1 | ******* | ******* |
Total Investment | ******* | ||||
Total Subsidy | ******* | ||||
Net Investment | ******* |
Sl. no | Item | Amount |
---|---|---|
1 | Term Loan | ******* |
2 | Working capital Loan | ******* |
3 | Total loan | ******* |
4 | Term Loan contribution | ******* |
5 | Working capital contribution | ******* |
Year 1(!*) | Year 2 | Year 3 | Year 4 | Year 5 | |
---|---|---|---|---|---|
Revenue from operation | |||||
Sales | ***** | ***** | ***** | ***** | ***** |
Add : | |||||
Closing stock | ***** | ***** | ***** | ***** | ***** |
Total | ***** | ***** | ***** | ***** | ***** |
Less : | |||||
Opening stock | ***** | ***** | ***** | ***** | ***** |
Stock purchase | ***** | ***** | ***** | ***** | ***** |
Salary | ***** | ***** | ***** | ***** | ***** |
Repairs and maintenance charges | ***** | ***** | ***** | ***** | ***** |
gas | ***** | ***** | ***** | ***** | ***** |
ELECTRICITY bill | ***** | ***** | ***** | ***** | ***** |
Total | ***** | ***** | ***** | ***** | ***** |
Gross profit | ***** | ***** | ***** | ***** | ***** |
Less : | |||||
Rent | ***** | ***** | ***** | ***** | ***** |
Telephone/Postal &internet charge | ***** | ***** | ***** | ***** | ***** |
Total | ***** | 0***** | ***** | ***** | ***** |
Depreciation | ***** | ***** | ***** | ***** | ***** |
Interest on TL | ***** | ***** | ***** | ***** | ***** |
Interest on WC | ***** | ***** | ***** | ***** | ***** |
Total | ***** | ***** | ***** | ***** | ***** |
Profit before tax | ***** | ***** | ***** | ***** | ***** |
Income Tax | ***** | ***** | ***** | ***** | ***** |
Profit after tax | ***** | ***** | ***** | ***** | ***** |
Cash Inflow | Pre operative period | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 |
---|---|---|---|---|---|---|
Capital | 0.63 | ***** | ***** | ***** | ***** | ***** |
Subsidy | ***** | ***** | ***** | ***** | ***** | ***** |
Termloan | ***** | ***** | ***** | ***** | ***** | ***** |
Profit before tax with interest | ***** | ***** | ***** | ***** | ***** | ***** |
Increase in WC loan | ***** | ***** | ***** | ***** | ***** | ***** |
Depreciation | ***** | ***** | ***** | ***** | ***** | ***** |
Increase in Current liability | ***** | ***** | ***** | ***** | ***** | ***** |
Total Cash Inflow | ***** | ***** | ***** | ***** | ***** | ***** |
Cash Outflow | ||||||
Fixed Assets | ***** | ***** | ***** | ***** | ***** | ***** |
Increase in Current asset | ***** | ***** | ***** | ***** | ***** | |
Interest on TL | ***** | ***** | ***** | ***** | ***** | ***** |
Interest on WC | ***** | ***** | ***** | ***** | ***** | ***** |
Income Tax | ***** | ***** | ***** | ***** | ***** | ***** |
Decrease in Term loan | ***** | ***** | ***** | ***** | ***** | |
Drawing | ***** | ***** | ***** | ***** | ***** | ***** |
Total Cash Outflow | ***** | ***** | ***** | ***** | ***** | ***** |
Opening balance | ***** | ***** | ***** | ***** | ***** | ***** |
Net Cashflow | ***** | ***** | ***** | ***** | ***** | ***** |
Closing balance | ***** | ***** | ***** | ***** | ***** | ***** |
Liability | Pre operative period | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 |
---|---|---|---|---|---|---|
A. Share holders funds | ||||||
Capital | ***** | ***** | ***** | ***** | ***** | ***** |
Reserve & Surplus | ***** | ***** | ***** | ***** | ***** | ***** |
B.Non current Liabilities | ||||||
Termloan | ***** | ***** | ***** | ***** | ***** | ***** |
C.Current Liabilities | ||||||
Working capital loan | ***** | ***** | ***** | ***** | ***** | ***** |
Account payable | ***** | ***** | ***** | ***** | ***** | |
Total Liability | ***** | ***** | ***** | ***** | ***** | ***** |
Asset | ||||||
A. Non current Assets | ||||||
Fixed Assets | ***** | ***** | ***** | ***** | ***** | ***** |
B. Current Assets | ||||||
Inventory | ***** | ***** | ***** | ***** | ***** | ***** |
Trade receivables | ***** | ***** | ***** | ***** | ***** | ***** |
Cash and cash equivalence | ***** | ***** | ***** | ***** | ***** | ***** |
Total Asset | ***** | ***** | ***** | ***** | ***** | ***** |
Year | Installment | Outstanding at the beginning | Principal repayment | Interest | Amount paid | Outstanding at the end |
---|---|---|---|---|---|---|
1 | 1 | ***** | ***** | ***** | ***** | ***** |
1 | 2 | ***** | ***** | ***** | ***** | ***** |
1 | 3 | ***** | ***** | ***** | ***** | ***** |
1 | 4 | ***** | ***** | ***** | ***** | ***** |
1 | 5 | ***** | ***** | ***** | ***** | ***** |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
5 | 56 | ***** | ***** | ***** | ***** | ***** |
5 | 57 | ***** | ***** | ***** | ***** | ***** |
5 | 58 | ***** | ***** | ***** | ***** | ***** |
5 | 59 | ***** | ***** | ***** | ***** | ***** |
5 | 60 | ***** | ***** | ***** | ***** | ***** |
Particulars | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 |
---|---|---|---|---|---|
Receipts | |||||
a).Net Profit | ***** | ***** | ***** | ***** | ***** |
b).Depreciation | ***** | ***** | ***** | ***** | 0.30 |
c).Interest on termloan | ***** | ***** | ***** | ***** | ***** |
Total | ***** | ***** | ***** | ***** | ***** |
Repayments | |||||
a).Loan Principal | ***** | ***** | ***** | ***** | ***** |
b).Interest on termloan | ***** | ***** | ***** | ***** | ***** |
Total | ***** | ***** | ***** | ***** | ***** |
DSCR | ***** | ***** | ***** | ***** | ***** |
Particulars | Rate | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 |
---|---|---|---|---|---|---|
Building | ***** | ***** | ***** | ***** | ***** | ***** |
Less Depreciation | ***** | ***** | ***** | ***** | ***** | |
Written down value | ***** | ***** | ***** | ***** | ***** | |
Computers/ Printers /Photocopier/Electronic gadget | 00 | ***** | ***** | ***** | ***** | ***** |
Less Depreciation | ***** | ***** | ***** | ***** | ***** | |
Written down value | ***** | ***** | ***** | ***** | ***** | |
Furniture & fixtures | 00 | ***** | ***** | ***** | ***** | ***** |
Less Depreciation | ***** | ***** | ***** | ***** | ***** | |
Written down value | ***** | ***** | ***** | ***** | ***** | |
Racks & storage/Interior works | 00 | ***** | ***** | ***** | ***** | ***** |
Less Depreciation | ***** | ***** | ***** | ***** | ***** | |
Written down value | ***** | ***** | ***** | ***** | ***** | |
new item | 00 | ***** | ***** | ***** | ***** | ***** |
Less Depreciation | ***** | ***** | ***** | ***** | ***** | |
Written down value | ***** | ***** | ***** | ***** | ***** | |
new | 00 | ***** | ***** | ***** | ***** | ***** |
Less Depreciation | ***** | ***** | ***** | ***** | ***** | |
Written down value | ***** | ***** | ***** | ***** | ***** | |
Air-conditioning | 00 | ***** | ***** | ***** | ***** | ***** |
Less Depreciation | ***** | ***** | ***** | ***** | ***** | |
Written down value | ***** | ***** | ***** | ***** | ***** | |
Other investments | 00 | ***** | ***** | ***** | ***** | ***** |
Less Depreciation | ***** | ***** | ***** | ***** | ***** | |
Written down value | ***** | ***** | ***** | ***** | ***** | |
Total less depreciation | ***** | ***** | ***** | ***** | ***** | |
Total written down value | ***** | ***** | ***** | ***** | ***** |
The project as a whole describes the scope and viability of the Trading industry and mainly of the financial, technical and its market potential.The project guarantee sufficient fund to repay the loan and also give a good return on capital investment. When analyzing the social- economic impact, this project is able to generate an employment of 5 and above. It will cater the demand of Trading and thus helps the other business entities to increase the production and service which provide service and support to this industry. Thus more cyclic employment and livelihood generation. So in all ways, we can conclude the project is technically and socially viable and commercially sound too.
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