PROJECT PROFILE

ON
GARMENT MANUFACTURING, TRADING AND FANCY UNIT

Name of the Promoter : Ms. SHARAVATHI

Name of the Unit :

Constitution : Individual

Address : No. 2-21, Nadubettu, Maravanthe

Kundapura - 576224

Objects : Expansion of unit to manufacture of Garments

and trading in Garments & Fancy Items.
of carbo

Fixed Capital Investment : Rs. 50,000.00

Working Capital Investment : Rs. 2,50,000.00

---------------------------
Total Investment : Rs. 3,00,000.00

MEANS OF FINANCE:

Working Capital Loan from bank : Rs. 2,00,000.00

Promoter contribution : Rs. 1,00,000.00

----------------------------
TOTAL : Rs. 3,00,000.00

Banker's : Canara Bank, Maravanthe

1. INTRODUCTION

Manufacturing of Women Tops & Dresses, Ethnic Wear, Bottoms Trousers and other are under
the category of readymade Garment industry. Readymade garment industry has occupied a
unique place in the industrial scenario of our country by generating substantial export earnings
and creating lot of employment. Its contribution to industrial production, employment and
export earnings are very significant. This industry provides one of the basic necessities of life.
The employment provided by it is a source of livelihood for millions of people. It also
provides maximum employment with minimum capital investment. Since this industry is
highly labour-intensive, it is ideally suited to Indian condition. Any person having the
knowledge of cutting and stitching operations can easily set up readymade garment
establishments.

India is among a few countries that has a large domestic demand as well as competitive in
exports. Presence of strong raw material base in terms of cotton and polyester fibres and large
fabric manufacturing capacities in the country have given a thrust to the garment sector.
India’s domestic garment market was estimated to be US$ 68 billion in 2019 which has grown
at an annual growth rate of 9% in last 5-years. The market is dominated by ethnic garments
(sarees, salwar-kameez-duppatta, etc.) but the western wear categories are growing at a much
faster rate. USA is the largest market for India followed by United Arab Emirates and United
Kingdom.

Key Raw Materials

Garment manufacturing requires fabric as the main input and several types of accessories for
functional and aesthetic purposes. Fabric variety to be used depends on the type of garment,
its price, season for usage, etc. In terms of fibres, cotton, polyester, viscose, linen, and their
various blends are quite popular. Accessories that are used in garment production include
sewing threads, buttons, zips, laces, hooks, labels, etc.

Garment Manufacturing Process

Spreading & Cutting

Spreading is the process of laying fabric layers on a table, one on top of another so as to form
a“lay”. The fabric from the stores is issued to the cutting room daily in advance which is
stored in the cantilever rack provided next to the cutting tables. The fabric rolls are loaded on
to the roll holders. The fabric is spread manually by spreaders or by a semi-automatic or
automatic spreading machine. After spreading, layers are cut with the help of straight knife
cutting machines and end cutters. In order to cut across on such a wide table, a mobile cutting
machine guiding rail is used. This rail is a “mobile” guide that is used along with a straight
knife cutting machine having a foldable handle bar.
Sewing

The production system to be implemented in the factory would be an Assembly Line System
whereby a group of operators would work on a product depending on the product type.
Operation sequences for sewing room operations would define the sequence of the operations
for the reference styles in the projected product mix, along with machine type and work-aids
required. Stitching quality and production are of immense importance; hence imported
machines are suggested which are capable of producing high quality end product at good
speeds. All the sewing machines would be procured from reputed sewing machine suppliers.
The line will have quality checks after every set of operations. All pieces will also be checked
fully at the end of the line before they are moved on to the finishing department

Finishing

In the finishing stage the sewn products are checked for any faults or defects. These if
reparable are mended or else the piece is rejected. The pieces are then ironed and packed, after
a few more check points. In case the pieces have any soiling/staining a stain removal station
helps in cleaning the same.

Inspection
The garment pieces produced are checked thoroughly for various types of defects such as
Broken Needle, Fly, Hole, Thick Yarn, Thin Yarn etc

Packing& Dispatch
After inspection, the defective products are sent for correction while the other products are
wrapped in polythene bags and sent for packing in suitable form as per the buyers’
specifications. After packing, the final products are dispatched.

Garment Testing

Garment testing assess the quality of garment and workmanship, using a no. of quality control
checks

The Indian garment manufacturing industry is 60-70% unorganized which is characterized by

MSME units operating in specific clusters across the country. The organized part of the
industry is dominated by export oriented garment manufacturing units.
2. PROMOTER:

The unit is a existing proprietorship firm foray into expansion and the proprietor of the firm
has experience in the same line of business for about 10 years. The promoter Ms. Sharavathi
is a dynamic young lady hailing from respectable family. Considering the market and demand
for garments, fancy items she has decided to expand the unit to manufacture, deal in garments,
fancy items.

3. LOCATION OF THE UNIT

The unit will be located at No. 2-21, Nadubettu, Maravanthe, Kundapura – 576224. The place
is surrounded by number of villages and has become village hub.

4. MARKET AND MARKET POTENTIAL:

Readymade garments are the choice of urban people. It is also gaining wider acceptance in
semi-urban and rural areas. The huge charges made by tailors and delay in delivery has made
people to switch over to readymade garments. In domestic market and export market, it has
made spectacular progress in the last decade. This industry is becoming very vibrant and lot of
foreign investment pouring in this industry because of low risk and high earning nature of this
industry. As these products are fashion oriented, entrepreneurs should always keep in mind
the changing fashion styles. Considering its advantageous position, it is assumed that there
will be no constraint in marketing of gent’s readymade garments

5. INFRASTRUCURES:

5.1 LAND & BUILDING:

The unit is located be at No. 2-21, Nadubettu, Maravanthe, Kundapura – 576224 a rented
premises
5.2 MANPOWER:
The units require couple of semi / unskilled employees for manufacturing and sale of
readymade garments The required manpower are available locally in large numbers and also
within the vicinity of unit location of the unit. Further all the required manpower can be
employed without any difficulty throughout the year. Estimated manpower utilization are as
follows

S. Particulars Number of Salary Salary for first year

No Workers Per month in Rs. Rs.
Manufacturing
1 Semiskilled 1 No Rs. 12,000/- 1,44,000.00

Sales
2 Sales girl 1 No Rs. 9,000/- 1,08,000.00

Total 2 Nos 2,52,000.00

5.3 POWER
The unit having required power for manufacturing of readymade garments and sales counter.

5.4 RAW MATERIALS REQUIRED AND AVAILABILITY

Garment manufacturing requires fabric as the main input and several types of accessories for
functional and aesthetic purposes. Fabric variety to be used depends on the type of garment,
its price, season for usage, etc. In terms of fibres, cotton, polyester, viscose, linen, and their
various blends are quite popular. Accessories that are used in garment production include
sewing threads, buttons, zips, laces, hooks, labels, etc. The required raw materials can be
procured from Bangalore or from neibhouring states at an competitive price without any
difficulty.

6. PROJECT COST

The cost of project is computed as follows. The unit needs the following investments
Amount (in Rs.)
6.1 Land Own NA
Building Rented

6.2 Fixed Investments:

PLANT & MACHINERIES:
[Link] Description Qty Amount
(in Rs.)
1 Stitch Machine with motor , Cutting
Machine, Table & Scissors 1 No each 50000.00

Total Fixed Investment 50000.00

Working Capital:

1. Fabric, accessories, sewing 2 months 40000

threads, buttons, zips, laces, hooks,
labels, etc

2. Readymade Garments, Hosieries 2 months 150000

3 Fancy Items 2 months 60000

Total Working Capital 250000.00

Total Project Cost 3,.00,000.00

7. MEANS OF FINANCE:
The project is financed as follows
Working Capital Loan from bank : Rs. 2,00,000.00
Promoter contribution : Rs. 1,00,000.00
----------------------------
TOTAL : Rs. 3,00,000.00
8. REPAYMENT /RENEWAL OF WORKING CAPITAL LOAN:

The Working capital loan from bank shall be a demand loan and will be valid for one / two
years and renewed annually. Interest on loan and any other charges will be paid as and when
debited to the loan account by the bank.
9. PROFITABILITY OF THE PROJECT:

Profitability and cash flow statement along with requisite details have been provided at
annexure to report.

10. CONCLUSION:
With the experience, expertise, manufacturing and distribution support team, the promoter is
confident of running the unit successfully. Going through the above details and profitability of
the project it is evident that project is profitable. The project would provide direct and indirect
employment to local people, besides meeting the requirement of the society. Hence financial
assistance required for the project may favorably be considered.

KUNDAPURA SHARAVATHI
DATED: 19.02.2022 PROMOTER

Drafted by;
PUSHPALATHA K
AUDITOR & TAX CONSULTANT
NGO COMPLEX
KUNDAPURA -576201