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Writer's pictureBhagchandra Rajak

How to Start Denim Garment Manufacturing Business?

Updated: Feb 9, 2021

INTRODUCTION:



The term ‘apparel’ or ‘garment’ would include ready-made garments also as

knitwear/hosiery. The apparel industry is classified as those establishments

which cut and/ or stitch/ structure garments out of woven or knitted fabrics

without being involved within the manufacture of materials .



All these garments are often broadly classified into 3 categories. Formals,

Casuals and Designers. Formal range of garments refers of these dresses, which

are worn at offices and other sober places of visit. Casual garments ask

that breed of dresses whose styles are generally nonconformist with normal

features of over sized pockets, pockets with flaps, larger front buttons, loose fit

etc. Designer garments ask the road of dresses which are worn at parties,

joyous gathering like weddings, receptions where general code of dress

is not specified and has limited editions of a sampling cater to little segment,

Denim garments come under the category of semi-formal wear.


jeans
jeans

Image source.. pinterest


Levi’s Strauss made the primary pair of jeans using tent canvas to assist miners

stash away enough gold into various pockets of hurriedly sewn up trousers,

during the gold rush in California in1890’s. Today every person ,

man or women wear jeans. Comfort is the key word, which has contributed

to a boom within the acceptability of jeans as a part of lifestyle such a lot so, that it

has nearly come to be accepted as an executive, formal wear too. Denim has

become so popular among the people that a Tamil Film maker has named a movie

as “Jeans”, starring former Miss world, Aishwarya Rai.

Denim dresses over the years have revealed a capability to transcend age

and gender barriers. Boys and girls, men and women, the young and therefore the old have

come to carry the view this comfort and fashion. Travelling during a pair of jeans and

T-shirt or sports-neck shirt is that the definition of “travelling comfortably

dressed”. The denim fabric, accessories and trims like collars, zips, buttons, sewing

thread, fusible/non fusible linings etc. technology and therefore the skilled workers for

making these garments are available in India at competitive prices. aside from

the availability of staple , various support services like garment dyeing/

bleaching/finishing units, packing

material manufacturers etc. are also available within India.

MARKET POTENTIAL:

The state of Maharashtra is one among the leading manufacturers’ of readymade

garments for domestic and export markets within the country thanks to its natural

advantage of peaceful industrial climate, high skills of labor force, easy availability

of raw materials, reliable infrastructure facilities, uninterrupted power supply etc.

In the domestic market readymade garment industry has made spectacular

progress within the last decade in our country thanks to vast bourgeoisie

population which is equivalent in numbers to the entire population of USA

and has 17 per cent of the world’s population. Readymade garment

business thrives during a situation of rising levels of incomes particularly of the

middle and upper middle classes. At the same time export markets for

readymade garments are very large and the growth is tremendous. As per AEPC

report, overall share of Indian garments in the International market as just 2.4%

when compared to other smaller nations like South Korea , Hong Kong, Malaysia,

Bangladesh, Sri Lanka, where it's more than 4% each. As per WTO agreement

all quota restrictions for exports are going to be removed by 2005 AD which can further

boost the exports from country. In Indian denim market, there's a

premium segment which is catered mainly by foreign brands like Wrangler,

Pepe, Lee’s and Levi’s (all are American). However, this premium segment

accounts for a mere 3 percent, in volumes terms, of the entire jeans

market, pegged at approximately 25 million pairs once a year . the quality

and economy segments catered by Indian brands like Flying Machine, killer,

Texas, Sunnex, New Port (Aravind Mills), Trigger (KG Denim), Ruf and Tuf (tailor

jeans by Aravind Mills occupy remainder of the market). the entire jeans market in

India is estimated at about Rs. 2855 crores during which the premium segment

accounts for Rs. 275 crores to 300 crores, standard segment of around Rs.

840 crores, and therefore the rest by the unorganized economy segment. Predictably, the

economy segment enjoys the most important market share by volume-nearly-70 per

cent. there's fast growing trend within the standard and economy segments than

the premium segment. The semi formal segment is growing at a rate of 35

percent once a year for the previous couple of years, and will still grow at this rate.

There is a growing trend towards soft jeans made with cellulose rayon and

Tencel blended denim garments. BASIS AND PRESUMPTIONS



1. The project profile has been prepared on the idea of single shift of 8 hours every day ,

25 days in a month and at 75% efficiency.

2. It's presumed that within the 1st year the capacity utilization are going to be

70 % followed by 85% within the next year and 100% within the subsequent

years.

3. The rates quoted in respect of salaries and wages for skilled workers et al. are the

minimum rates within the state/ neighboring states.

4. rate of interest for fixed and dealing capital has been taken @14% on

an average, whether financed by bankers or by financial corporations.

5. Margin money required is minimum 30% of the projected investment.

6. Pay Back period of the Project: After the initial gestation

of one and a half years, it will require 5 years to pay back the

loans.

7. The rental value of the work shed and other built up/covered area

has been taken at the speed of Rs. 20 per square meter .

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 put . When a tailor made project profile is ready

necessary changes are to be made.

9. capital for 3 months has been taken into consideration for smooth running

of the project.

IMPLEMENTATION SCHEDULE

Sl.No. Activity Period

1. Preparation of the Project Report: (a) Calling quotations 1 month

(b) Preparation 2 weeks

2. Provisional Registration 1 week as SSI

3. Financial arrangements 3 months

4. Purchase and a couple of months procurement of machinery

5. Installation of machine 1 month

6. Electrification 1 month

7. Recruitment of staff and 1 month workers.

TECHNICAL ASPECTS

Process of Manufacture Manufacture of denim garments is like

any other garment except that these garments require special care and

finishes. the essential outline of the operations for denim garments in

general is given below.

1. Pattern design and pattern making.

2. Cloth cutting by mechanical process.

3. Sewing by high-speed industrial sewing machine.

4. Trimming and inspection.

5. Ironing and pressing as finishing process. Designers use five elements to make

a design which will stimulate the potential consumer to shop for like colour, silhouette,

drape, texture and tone. Besides these the designer selects buttons, uppers,

snaps, thread lace, tapes, braids, medallions, sequins and a spread of ornaments and

closures and ornamental devices to impart the specified design effect.

Cutting involves three basic operations, i.e. making the marker,

spreading the material and chopping fabric into the marked sections. There

are six sorts of machines available to chop or cut a lam into the component

parts of the market like rotary blade machine, vertical reciprocal blade

machines, band knives, almost like band– saws, die clickers systems with straight

blades and automatic computerized laser beam cutting machines.

The sewing operation is performed to join the individual cut components in

to desired shape by using power operated home appliance .

Fusing and cementing are processes for stitching or decorative seaming. In

fusing, the seam bond on decoration is formed by melting some fibre or finish

content within the material during a manner that joins the sections or decorates within the

desired area. In cementing, the bond or decoration is formed by an adhesive, such

as cement, glue on plastic which is applied to the materials during or

immediately preceding the cementing process. Fusing is either by direct heat,

by hot head fusing presses, in which pressure area is heated by

electric heating grade or steam. Cementing processes use mechanical

pressure systems with inbuilt head application counting on the adhesive

materials used. Moulding may be a process that changes

the surface character to photography of a garment of 1 of its stitch sections

by application of warmth , moisture or pressure. Pressing, pleating, blocking

mangling, steaming, creasing, curing and casting curing and casting are trade

terms for various moulding processes.

Pressing has two major divisions: Buck press may be a machine for pressing a

garment or section between two contoured, heated pressure surface that

may have steam vacuum systems in either or both surface.

In the field of casual fashion the fade look has significant value. Previously the

faded effect wont to come after repeated washing of the garment. Now we will

get the fade effects instantly by latest washing technology and it plays a really

important role within the sale ability of the denim garment.

There are many sorts of washes. The prominently used are Hard Wash, Half

Bleach, Full Bleach, Marble Bleach, Acid Wash, Stone Wash, Chemical Wash, Ice

Wash, Moon Wash, Bright Wash, Gun Wash, Camel Wash, Ink Wash etc.



Process-flow Diagram

Design Sample

Fabric checking and layering

Card board Pattern

Cutting, segregation and bundling

Stitching (single tailor or chain system)

Trimming

Thread cutting and labeling

Quality control check

Washing, drying and pressing

Individual packing

Carton packing

Dispatching

Quality Control and Standards

In addition to various fabric defects like slubs, snarls, shade variations from

selvedge to selvedge especially with dark shades like red, turquoise, navy blue,

mustard, dark lilac, etc. and shade variation in several batches should be

checked before fabric is cut for stitching . It is very essential to take care of garment

industry, because the export markets are highly competitive. No quality

specifications are followed either BIS or by the other institution because the same can

not standardized thanks to frequent fashion changes within the apparel industry .

However, general quality practices like good house keeping periodic checks at

each and each stage of production should be practiced. to seek out out various

quality parameters like colour fastness, tearing strength, bursting strength,

shrinkage test etc. testing services offered by reputed laboratories like

ATIRA, BTRA, SITRA, NITRA, SGS India etc. shall be utilized to watch and record

the quality levels at regular intervals.

Production Capacity (per annum)

On average 10 pieces of adult

garments are often produced with one

machine in conjunction with the special

machinery that works as complimentary.

Production per machine per day = 7 pieces

of 8 hours

Production per 50 machines = 350 pieces

per day of 8 hours

Production per 50 machines = 8750 pieces

per day of 25 days

Annual Production Capacity = 1,05000

(a) Quantity : 1.05 Lakhs pieces

(b) Value : Rs. 285 Lakhs

Motive Power

A total of 45 kW or 60 HP power is required to run at full capacity and this

can be drawn from state electricity boards.

Pollution Control

Unit goes to try to to only cutting stitching, pressing operations for the

manufacture of readymade garments, which doesn't involve in discharge of

any sort of pollution. Hence there's no need of taking measures to regulate the

pollution.

Energy Conservation

Another important international aspect of the recent period is energy

conservation. The energy conservation will make the industries to scale back their

production costs and thereby stay more competitive within the market. This matter

should be the priority of each person involved within the day to day operations of

any industry. Idle running of varied machines, heaters, boilers, lights, fans,

air conditioners etc. should be completely avoided. Suitable capacitors

and energy saving devices should be incorporated whoever possible to

minimize the wastage of energy.

FINANCIAL ASPECTS

A. Fixed Capital

(i) Land and Building (Rented)

(a) Built up/Covered area 1000 sq. mt.

(b) Open/Uncovered area 200 sq. mt.

Total Area 1,200 sq.mtrs.

Average Rental Charges = Rs. 24,000

(per month) @ Rs. 20 sq.mt.

(ii) Machinery and Equipment's

Sl. Description No. Rate (approx.) Amount

No. (Rs.) (Rs.)

1. 8” Power cutting 1 65,000 65,000

2. 8” Hot drill 1 50,000 50,000

3. Band knife cutting 1 5,00,000 5,00,000

machine

4. Cloth clamps 15 1,000 15,000

5. End cutter (Straight) 2 50,000 1,00,000

6. Single Needle 50 10,000 5,00,000

Sewing Machine

7. Single needle 1 35,000 35,000

sewing

m/c with thread

trimmer

8. Single needle 1 35,000 35,000

sewing

m/c with edge

trimmer

9. Overlock with 4 35,000 1,40,000

softy stitch

10. Double needle 2 60,000 1,20,000

straight machine

11. Double needle 1 80,000 80,000

split needle

machine

12. Three needle 1 1,50,000 1,50,000

feed of the arm

machine

13. Double Needle 1 75,000 75,000

feed of the

arm machine

14. Twin needle 1 75,000 75,000

double chain

stitcher

15. Bar tacking 3 80,000 2,40,000

machine

16. 4 Needle double 1 1,30,000 1,30,000

chain stitch

machine

17. Snap fastening 1 1,70,000 1,70,000

machine

18. Button hole 1 1,10,000 1,10,000

machine

19. Button stitch 1 50,000 50,000

machine

20. Embroidery Single 1 1,50,000 1,50,000

thread Computerised

machine

21. Automatic Jeans 1 2,50,000 2,50,000

pocket sewer

22. Compact 1 3,00,000 3,00,000

computerised

embroidery

machine

23. Trouser Topper 1 3,50,000 3,50,000

24. Steam Iron 4 5,000 20,000

25. Vacuum tables 4 35,000 1,40,000

26. Steam generator 1 70,000 70,000

27. 50 kg washing 1 2,00,000 2,00,000

machine

28. Hydro extractor 1 70,000 70,000

29. Drying tumbler 1 1,00,000 1,00,000

30. Diesel Generating 1 1,00,000 1,00,000

set 20 kVA

31. Non-IBR Boiler 1 1,00,000 1,00,000

32. Mini Transport 1 2,50,000 2,50,000

Vehicle

33. Borewell with 1 1,00,000 1,00,000

5HP motor

Testing Instruments

1. Electronic Micro 1 10,000 10,000

balance

2. Fabric ends/picks 1 15,000 15,000

tester

3. Fabric thickness 1 25,000 25,000

tester

4. Shrinkage tester 1 40,000 40,000

5. Colour fastness to 1 15,000 15,000

washing

6. Fabric strength 1 40,000 40,000

tester

7. Crease recovery 1 55,000 55,000

tester

Total 52,80,000


(iii) Other Fixed Assets (Rs.)

1. Erection and installation charges 2,00,000

2. Electrification and wiring 1,00,000

3. Office furniture 1,00,000

4. Pre-operative expenses 1,00,000

Total 5,00,000

(i) Salaries and Wages

B. Working Capital (per month)

Sl. Designation Nos. Salary (approx.) Amount

No. (Rs.) (Rs.)

Administrative Staff

1. Marketing manager 1 60,000 60,000

2. Merchandisers 2 30,000 60,000

3. Store Keeper 1 25,000 25000

4. Accountant/Cashier 1 20,000 20,000

(Part time)

5. Clerks/Typists (Part time) 2 11,500 23,000

6. Peon 1 9,250 9250

7. Watchmen 2 9250 18,500

8. Driver 1 12,500 12,500


Production Staff

1. Technical Manager 1 70,000 70,000

2. Line Supervisors 4 18,500 74,000

3. Pattern/Cutting master 1 45,000 45,000

4. Fabric/garment 5 12,500 12,500

checkers

5. Skilled tailors 60 (on contract) 7,00,000

6. Fitter 1 9,000 9,000

7. Electrician 1 10,000 10,000

8. Helpers 4 9,000 36,000

Total 1'1850'50

Add perquisites @ 10%

(ii) Raw Materials

Sl. Description Qty. Rate Value

No. (Rs.) (Rs.)


1. Denim fabric in 15,000 120/ 1'800'000

different colours mtr.

(6 ozs. to 9 ozs. GSM)

2. Embellishments LS 15% 1,90,000

like collars, of the

Interlining fabric

cloth, (Rounded of)

zippers, sewing

thread, elastic,

labels, buttons etc.

Total 1'990'000


(iii) Utilities (Rs.)Approx.

Electricity bill, Water charges, Fuel, 60,000

coal and furnace oil

(iv) Other Contingent Expenses (Rs.)

1. Building rent 50,000

2. Repair and maintenance 10,000

3. Transportation and cartage 25,000

4. Postage and stationery 5,000

5. Telephone bills 6,000

6. Insurance 15,000

7. Sales and advertisement 80,000

8. Miscellaneous expenses 20,000

Total 2,11000

(v) Total Working Capital (per month) (Rs.)

1. Salaries and wages 1'185'050

2. Raw Materials 1'990'000

3. Utilities 60,000

4. Other expenses 2,11000

` Total 3'446'050

C. Total Capital Investment

1. Fixed Capital Rs. 57,80,000

2. Working capital (for 3 months) Rs. 10'338'150

Total 16'118'150

Tbc.

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