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Cotton Lycra (Spandex) Knitted Wears
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Product Code
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There is no specific Code No. for
this product but the Code No. 260399000 may be referred,
which is for the item of other synthetic knitwears.
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Quality and Standards
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There is no specific BIS specification
for this product. However the product may be manufactured
as per requirements of the market.
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Uploaded on
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July 2007
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Introduction
This project is for manufacturing of Cotton
Lycra knitted wears, such as swim wears, slacks, sportswear
and other fashioned wears etc. Spendex (Lycra) is recognised
as a natural fibre providing superior fit with no complicated
tailoring. With the change in the clotting habits will certainly
induce many knitting units to switch over to this type of
fabric to manufacture high value fashion garments. Spandex
fibre is already very popular in the West because of its elastomatic
properties specially for sportswear's. The content ratio of
Lycra yarn used with the cotton yarn varies from 5% to 10%.
In this scheme guideline for manufacturing
of cotton Lycra knitted wears is given.
Market Potential
Hosiery industry is an ancient industry
in the field of textiles and having very good market within
India and also in the export market. The garment sector alone
has a big share in the India's total export. But this is not
to say that the inherent potential has been tapped to the
full. India's garment exports to the world market amount to
just 2% of the total garment business, besides the large demand
by developed and south East Asian countries, Gulf countries
have a large demand too. So far the unit manufacturing cotton
knitted garments or coming up units having prospective future.
Basis and Presumptions
1. The Project Profile has been prepared
on the basis of single shift of 8 hours each day, 25 days
in a month and at 75% efficiency.
2. It is presumed that in the 1st year,
the capacity utilisation will be 60% followed by 70% in the
next year and 80% in the subsequent years.
3. The rates quoted in respect of salaries
and wages for skilled workers and others are the minimum rates
in the State/ Neighbouring States.
4. Interest rate for fixed and working
capital has been taken @ 14% of an average, whether financed
by bankers or by Financial Corporation.
5. Margin money required is minimum 30%
of the project investment.
6. The Workshed and other built up/covered
area has been taken of its own
7. Pay back period of the project is three
years after initial gestation period of one and half year.
8. The rates quoted in respect of machines.
Equipment and raw materials are those prevailing at the time
of preparation of this Project Profile and are likely to vary
from supplier to supplier and place to place. When a tailor
made project profile is prepared necessary changes are to
be made.
Implementation Schedule
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Sl. No.
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Activity
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Period
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1.
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Preparation of Project Report
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a) Calling quotations
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1 Month
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b) Preparation
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2 Weeks
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2.
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Provisional Registration as SSI
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1 week
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3.
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Financial Arrangement
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3 Months
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4
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Purchase and procurement of machines
and equipments
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2 Months
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5
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Installation of Machines
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1 month
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6
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Electrification
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1 month
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7
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Recruitment of Staff and Workers.
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1 month
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Technical Aspects
Process of Manufacture
i.) Dyed/Bleached cotton knitted fabric
with Lycra procure from the market.
ii.) Fabric is inspected by laying the fabric on the inspection
table against light before cutting so that if any knitting
fault or unevenness in the colour, which is visible in that
may be marked.
iii.) Cutting is done on the cutting table by laying the fabric
in layers.
iv.) Stitching is done on different machines as per requirement
such as overlocking, flatlock, folding etc.
v.) Final checking is done before pressing
and packing on the checking table.
vi.) Finally pieces are pressed and packed
in the desirous packing.
Quality Control and Standards
For quality product, inspect the garment
for neatness, shape and cleanness finish. Look for oil stains,
needle marks, yarn slubs, dropped stitches inaccurate seaming,
unevendyeing, holes, cuts etc. Proper care must be taken at
the time of selection of fabric, it must be of fine quality.
The other required quality control measures are to be taken
during production.
Production Capacity (per annum)
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Item
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Qty.
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Value (Rs.)
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Cotton Lycra knitted garments
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22500 doz.
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Motive Power
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10 H.P.
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Pollution Control
As this industry does not involve any
pollution as such, no pollution control measures are required.
Energy Conservation
As the power requirement is small proper
house keeping can save it.
Financial Aspects
A. Fixed Capital
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(i) Land and Building
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: Factory shed
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300sq. mt.@ Rs 2000 psm. amounting
Rs 600000 200 sq.mt.
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Building Area
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Store (Raw material)
Store (Finished goods)
Total covered area
Total construction
cost Rs. 3000/sq.mt.
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50 sq.mt.
50 sq.mt.
300 sq.mt.
9,00,000
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Total investment in land and building.
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1500000
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(ii) Machinery and Equipments
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Sl. No.
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Description of Machines
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Qty.
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Amount
(In Rs.)
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1.
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High speed overlock (four thread)
machine with motor (Imported) and stand (power 3 H.P.)
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5
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250000
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2.
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Flat folding machine with stand
and table (total power 3 H.P.) (imported)
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3
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210000
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3.
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Straight knife cutting machine
(Power 1/2 H.P.) (Indian)
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1
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48000
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4.
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Rib cutting machine with motor
stand (1/2 H.P.) (Indian)
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1
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8000
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5.
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Sewing machine with motor stand
(1 H.P.) (Indian)
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2
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14000
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6.
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Scissors Press measuring instrument
and other misc. items.
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LS
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10000
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7.
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Laboratory equipment such as weighing
balance magnifying glass, microrscope and other testing
equipment and chemicals.
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LS
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10000
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Erection and electrification charges
@ 10%
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55000
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Cost of office equipment, including
Almirah, office furniture, type writer, etc.
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50000
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(iii)Pre-operative Expenses
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20000
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Total
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675000
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B. Working Capital (per month)
(i) Personnel
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Sl. . No.
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Designation
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No.
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Salary
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Amount
(In Rs.)
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1.
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Supervisor/Manager
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1
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15000
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15000
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2.
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Accountant (Part Time)
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1
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3000
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3000
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3.
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Clerk/Store keeper
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1
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5000
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5000
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4.
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Peon-cum-Chowkidar
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2
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3250
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6500
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5.
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Skilled Workers
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10
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4000
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40000
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6.
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Unskilled Worker
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5
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3250
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16250
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Total
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85750
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Add Per-quisites @ 10% of salary
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8575
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Total
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94325
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(ii) Raw Material Requirements (per
month)
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Particulars
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Qty. (per kg.)
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Rate (In Rs.)
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Amount
(In Rs.)
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Dyed/bleached knitted clothes
for garments (40s cotton 90% and 40 denier Lycra 10%)
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2800
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240
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672000
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Elastic, Zips, Hooks, Buttons,
Sticker etc.
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LS
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LS
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130000
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Sewing Thread
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LS
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LS
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6000
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Labels, Size lable, polythene
bags, mill board boxes etc.
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LS
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LS
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55000
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Total
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863000
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(iii) Utilities (per month)
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(Rs.)
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Power, Water charges
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7000
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(iv) Other Contingent Expenses
(per month)
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(Rs.)
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1. Repair and Maintenance
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1500
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2. Consumables Stores
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2000
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3. Stationery/Postage
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1000
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4. Transportation Charges
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10000
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5. Advertisement and Publicity
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10000
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6. Insurance taxes telephone bills
etc.
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3000
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Total
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27500
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(v) Total Recurring Expenses
(per month)
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(Rs.)
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1. Raw Material
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863000
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2. Personnel
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94325
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3. Utilities
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7000
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4. Other contingent expenses
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27500
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Total
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991825
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(iv) Working Capital for 2 months
991825 ×2
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1983650
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C. Total Capital Investment
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1. Fixed Capital
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2175000
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2. Working capital for 2 Months
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1983650
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Total
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4158650
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Machinery
Utilisation
75% machinery utilisation is considered for achieving the
projected target.
Financial Analysis
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(1) Cost of Production (per
year)
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(Rs.)
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1. Total recurring cost
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11901900
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2.Depreciation on Building @ 5
%
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75000
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3. Depreciation on machinery and
equipments @ 10%
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67500
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4. Interest on total investment
@ 14%
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582211
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5. Depreciation on office furniture
fixtures @ 20%
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10000
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Total
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12636611
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(2) Turnover (per year)
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Item
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Qty. in Doz
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Rate (Rs.)/Doz
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Value (Rs.)
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Cotton Lycra Knitted 1,13,40,000
Garments (such as slacks, swimwear, tides)
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22500
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604
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13590000
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(3) Net Profit (per year) (Before Income
Tax)
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Profit
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=
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Sale – Production Cost
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953389
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(4) Net Profit Ratio
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=
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Net Profit × 100
--------------------
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Turn over per year
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=
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7.02
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(5) Rate of Return
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=
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Net Profit × 100
-------------------
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Total Investment
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=
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22.93
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(6) Break-even Point (% of Total Production
Envisaged)
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Fixed Cost (per year)
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(Rs.)
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a. Total Depreciation
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152500
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b. Total interest
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582211
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c. 40% of salary and wages.
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452760
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d. 40% of other contingent expenses
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132000
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Total
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1319471
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B.E.P.
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=
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Fixed Cost × 100
------------------------
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Fixed cost + Profit
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=
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58.05%
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Addresses of Machinery and Equipment
Suppliers
1. M/s. Akal Mechanical Works
Gali Vakilla,
Purana Bazar, Ludhiana.
2. M/s. Swaroop Mechanical Works
Overlock Building,
Overlock Road, Ludhiana.
3. M/s. Vijay Sewing Pvt. Ltd.
17-D, Everest House,
Chaurangi Road, Kolkata.
4. M/s. Rita Mechanical Works Pvt. Ltd.
416, Industrial Area–A, Ludhiana.
For imported machines Local suppliers
may be contacted
Knitted Fabric
1. M/s. Mayfair Fabric
90–Industrial Area–A,
Ludhiana.
2. M/s. Superfine Knitters Ltd.
269, Industrial Area,
Ludhiana.
3. M/s. Sharmanji Fabric
Bhadur Ke Road,
Near Dana Mandi,
Ludhiana.
Sewing Thread/Elastic Tapes
1.M/s. Vardhman Spinning and
General Mills Ltd.
Chandigarh Road,
Ludhiana.
2. M/s. Coats India Ltd.
144, M.G. Road,
Bangalore.
3.M/s. Modi Threads Ltd.
Modi Nagar,
Uttar Pardesh.
4. M/s. D.P. Elastics
3784, Nai Basti,
Pahadi Dheeraj, Delhi.
5. M/s. Techno-Elastics
877, East Park Road,
Karol Bagh, New Delhi.
6.M/s. M.D.R. Tapes Pvt. Ltd.
120, Pocket E-15,
Sector-8,Rohini,
New Delhi
Contact for more information:
Information Manager
TIMEIS Project
E-mail: timeis@ficci.com

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