Technology

Cotton Knitted Undergarments (Briefs, Panties, Vests)

Product Code : 260104000/260102008
Quality and Standards : The following Indian Standards may be referred.
IS 4663:1980, IS 4665:1975,
IS 4809:1968, IS 4046:1981
Uploaded on : July 2007

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.

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

Production Capacity (per annum)

Product Qty. (Dzs.) Value (Rs.)
Vests and ladies panties 36,000 11340000
  18,000 6660000
Total
54,000 18000000

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

(i) Land and Building : Factory shed 450 sq. mt.@ Rs 1500 psm. amounting Rs 6,75,000
300 sq.mt.
Building Area Store (Raw material)
Store (Finished goods)
Office etc.
Total covered area
Total construction
cost Rs. 3000/sq.mt.
50 sq.mt.
50 sq.mt.

25 sq.mt.
425 sq.mt.
12,75,000

Total investment in land and building. 1950000

(ii) Machinery and Equipments

Sl. No. Description No. Rate
(In Rs.)
Amount
(In Rs.)
(a) Cutting machine (Power Operated) 1 75000 75000
(b) Overlock machine (3 thread) with motor and stand (1/2 HP) 55 8000 440000
(c) Folding machine with stand and motor (1/2HP motor) 4 15000 60000
(d) Rib Cutting machine with stand and motor (1/2 HP motor) 2 7000 14000
(e) Sewing machine with motor stand (1/2 HP) 4 5500 22000
(f) Scissors, measuring instruments, checking table and miscellaneous items LS 30000 30000
(g) Garment washing machine 12kg. capacity 1 75000 75000
(h) Hydro-extractor 25 kg. capacity 1 78000 78000
(i) Dryer Tumbler 25 kg. capacity 1 165000 165000
(j) Washing room trolleys 4 11000 44000
(k) Steam press portable type 6 19000 114000
(l) Packing, forwarding, CST and Others LS   110000
Total
1227000

(iii) Other Fixed Assets (Rs.)
(a) Erection and installation 100000
(b) Office furniture 50000
(c) Pre-operative expenses 30000
Total
180000
Total Fixed Capital(i)+(ii)+(iii)
3357000

B. Working Capital (per month)
(i) Staff and Labour Wages

Sl. No. Designation Nos. Rate
(Rs.)
Amount
(In Rs.)
1. Plant Manager 1 16000 16000
2. Sales Representative 1 9000 9000
3. Clerk/Store-keeper 1 5000 5000
4. Peon 1 3000 3000
5. Watchman 1 3000 3000
Total
36000
Production Staff
1. Cutting Master 1 10000 10000
2. Supervisor 1 7000 7000
3. Skilled workers 67 5000 335000
4. Pressing man 6 5000 30000
5. Helpers 7 4500 31500
Total
449500
Perquisites @ 20% 89900
G.Total
539400

(ii) Raw Material

Sl. No. Description Qty. Unit Rate
(In Rs.)
Amount
(In Rs.)
1. Dyed/bleached knitted cotton cloth 40s count for vests and panties (kgs.) 2520 180 453600
2. Dyed/bleached knitted cotton cloth 30s and 34s count for briefs (kgs.) 756 150 113400
3. Top elastic for briefs and panties (mts.) 18000 4.6 82800
4. Leg elastic for briefs and panties (mts.) 21000 1.5 31500
5. Labels, size label, polythene bag, brand boxes LS 12000 12000
6. Sewing thread LS 8500 8500
7. Detergent for washing LS 6000 6000
Total
707800

(iii) Utilities (per month) (Rs.)
Electricity bill 14000
Water charges 1200
Total
15200

(iv) Other Contingent Expenses (per month) (Rs.)
(a) Advertisement and Publicity 8000
(b) Postage/stationery 1000
(c) Repair and maintenance 10000
(d) Transport/travelling charges 5000
(e) Insurance 700
(f) Telephone bills 2000
(g) Miscellaneous expenses 5000
Total
31700
(v) Total Recurring Expenses (per month) 1294100
(vi) Total Working Capital for 2 months 2588200

C. Total Capital Investment (Rs.)
(i) Land and building 1950000
(ii) Machinery and equipment 1227000
(iii) Working capital for 2 months 2588200
Total
5765200

Machinery Utilization

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) (Rs.)
Recurring expenses 15529200
Depreciation on building @ 5% 97500
Depreciation on machinery @ 10% 122700
Depreciation on office furniture @ 15% 7500
Interest on total investment @ 14% 807128
Total
16564028

(2) Turnover (per year) by Sales

Product Qty. (Rs.) Rate/Dz (Rs.) Amount (Rs.)
Vest and Ladies panties 36000 315 11340000
Briefs 18000 370 6660000
Total 54000   18000000

(3) Net Profit (per year) 1435972
(4) Net Profit Ratio (Net Profit/Turnover (per year) 7.98%
(5) Rate of Return on Investment (Net Profit/Total Capital Investment) 24.91%

(6) Break-even Point

Fixed Cost (Rs.)
Depreciation 227700
Interest on capital investment 807128
40% of wages of staff and labour 2589120
40% of other contingent expenses 148800
Insurance 8400
Total
3781148

B.E.P. = FC × 100
-------------
    FC + Profit
     
  = 72.48%

Addresses of Machinery and Equipment Suppliers

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,
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.

Contact for more information:

Information Manager
TIMEIS Project
E-mail: timeis@ficci.com


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