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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 |
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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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