Download - Readymade Garment Manufacturing
INTRODUCTION
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.
This project report is prepared for the manufacture of
gents shirts, gents trousers as they find wide acceptance
in local and international markets.
MARKET POTENTIAL
The demand for Readymade Garments is increasing at
around 18-20 % annually in the country.
The domestic market and the export
market are growing rapidly
Process of Manufacture
Cutting and Sewing
Labeling
Packing
Finishing and Packing
Quality Control and Standards
Our Vision
To become a globally prominent
readymade garment manufacturer and be
ranked amongst the top garment
manufacturers in the country in terms of
quality, service standards and ultimately
customer satisfaction.
FINANCING
Promoters Contribution 0.15 lacks
Seed Capital 3.00
lacks
Bank Loan 5.85 lacks
PROJECT COST SUMMARY
S.NO PARTICULARS AMOUNT(LACS)
1 Land NIL
2 Civil Works NIL
3 Plant & Machinery 1.86
4 Miscellaneous Fixed Assets 1.10
5 Preliminary & Preoperative expenses 0.50
6 Working Capital 5.54
9.00
MEANS OF FINANCE
1 Seed Capital (Maximum for this Category) 3.00
2 Promoters Contribution 0.15
3 Loan from Bank 5.85
DETAILS OF LOANS
A Long Term Investment 3.46
1 Seed Money 1.21
2 Term Loan From Bank 2.25
B Working Capital Requirement 5.54
1 Seed Money 1.94
2 Working Capital Finance From Bank 3.60
Details of Machinery and Equipments
Sl. Description Nos. Rate Amount
No. (Rs.) (Rs.)
1. Power operated 1 35,000 35,000
cutting machine
2. Power operated 8 5,000 40,000
SNLS stitching
machine
3. Overlock stitching 1 6,000 6,000
machine with motor
and accessories
4. Garment washing 1 25,000 25,000
machine 15kg capacity
5. Hydro extractor 1 25,000 25,000
15 kg. capacity
6. Tumbler dryer 1 25,000 25,000
15 kg. capacity
7. Potable steam press 1 20,000 20,000
9. Other miscellaneous LS 20,000 10000
assets
Total 186000.00
DETAILS OF PRELIMMINARY & PRE-
OPERATIVE EXPENSES
S.NO PARTICULARS AMOUNT(LACS)
1 Traveling & Conveyance 0.05
2 Printing & Stationary 0.05
3 Professional Charges 0.05
4 Misc. Expenses including fee etc. 0.15
5 Interest during Moratorium Period 0.20
0.50
DETAILS OF MISCELLANEOUS FIXED ASSETS
S.NO PARTICULARS AMOUNT(LACS)
STEEL LOCKER, TABLE, CHAIRS
1 for 12 persons L S 0.50
2 FIRE EXTINGUISHER 4 0.20
3 Electric Fitting and Lighting 0.30
TOTAL 1.10
INSTALLED CAPACITY AND PRODUCTION PROGRAMME Keeping in view the climatic conditions and other factors prevailing in the valley into
consideration, the operational hours shall be assumed as:-
RAW MATERIAL REQUIREMENT and SALES AT 100% INSTALLED CAPACITY
S.no particulars Qnt. No. of No. of Total Rate Amount Sale Revenue
Req items items quantity per in Rs. price per
per produced produced of meter per annum
item in per day per material piece Rs.
meters annum required Rs.
per
annum
A) LADIES
SUITS
1 COTTON 5.00 10 3000 15000 53.00 795000 490 1470000
B) CHILDREN
SETS
1 COTTON 1.5 12 3600 5400 65 351000 200 720000
2 WOOLEN 1.5 12 3600 5400 125 675000 300 1080000
C) SHIRTS
1 COTTON 2.25 10 3000 6750 90 607500 320 960000
2 TERI 2.25 10 3000 6750 130 877500
WOOL
335 1005000
MISCELLANEOUS ITEMS LINING 100000
MATERIAL, EMBROIDERY, THREAD,
BUTTONS, PACKING, STICKERS, ZIPS
ETC.
TOTAL AMOUNT IN RS. 3406000 5235000
SAY IN RS. LACS 34.06 52.35
YEAR CAPACITY SAL/WAG PURCHASE UTILITIES SALES
UTILISATION (Lacs) (lacs)
1ST 50.00 2.22 17.03 0.13 26.18
2ND 55.00 2.44 18.73 0.14 28.79
3RD 60.00 2.66 20.44 0.16 31.41
4TH 65.00 2.89 22.14 0.17 34.03
5TH 70.00 3.11 23.84 0.18 36.65
6TH 75.00 3.33 25.55 0.20 39.26
7TH 80.00 3.55 27.25 0.21 41.88
8TH 80.00 3.55 27.25 0.21 41.88
SALES REALIZATION AND PURCHASES IN PHASED MANNER
S.No. PARTICULARS SALARY PER MONTH Nos. TOTAL(PA)
1 Manager 5000.00 1 60000.00
2 Skilled Workers (Cutters) 4000.00 1 48000.00
3 Tailors 3000.00 8 288000.00
4 Sales/Marketing Executive 2500.00 1 30000.00
5 Chokidar 1500 1 18000.00
Total 12 444000.00
Say 4.44 Lacs
STATEMENT OF MANPOWER REQUIREMENT & THEIR REMUNERATION
PAY BACK PERIODPay back period is the length of time in which, the unit recovers its initial investment. It may also be defined as
the number of months or years required for the unit to generate commutative gross operating surplus equal to
the fixed capital investment in the project.
The payback period of the unit is estimated in the following table.
Year CFAT Cumulative Cash inflow
1st 4.90 4.90
2nd 5.37 10.27
3rd 5.88 16.15
4th 6.44 22.59
5th 7.03 29.62
6th 6.87 36.49
7th 7.40 43.89
8th 6.61 50.50
1 year + 10 Months
Projected Profitability Statement
The annual cost of sales and profitability during the first eight
years of operation of the plant is estimated in the following
table.
S.no Particulars Operating Years
1 Year of operation 1st 2nd 3rd 4th 5th 6th 7th 8th 2 Capacity Utilization (%) 50.00 55.00 60.00 65.00 70.00 75.00 80.00 80.00 3 Sales realization 26.18 28.79 31.41 34.03 36.65 39.26 41.88 41.88
A: Cost of production
1 Raw Material 17.03 18.73 20.44 22.14 23.84 25.55 27.25 27.25
2 Salary & wages 2.22 2.44 2.66 2.89 3.11 3.33 3.55 3.55
3 Utilities 0.13 0.14 0.16 0.17 0.18 0.20 0.21 0.21
4 Repairs & Maintenance 0.06 0.09 0.12 0.15 0.15 0.18 0.18 0.18
5 Administrative expenses 0.26 0.29 0.31 0.34 0.37 0.39 0.42 0.42
6 Selling expenses 1.05 1.15 1.26 1.36 1.47 1.57 1.68 1.68
7 Total 20.75 22.85 24.94 27.04 29.11 31.21 33.28 33.28
8 Gross profit 5.43 5.95 6.47 6.98 7.53 8.05 8.60 8.60
B: Financial expenses
1 Interest on term loan 0.20 0.20 0.16 0.12 0.08 0.04 0.00 0.00 2 Interest on WCL 0.32 0.37 0.42 0.42 0.42 0.42 0.42 0.42 3 Depreciation (SLM) 0.35 0.35 0.35 0.35 0.35 0.35 0.35 0.35 4 Total 0.87 0.92 0.93 0.89 0.85 0.81 0.77 0.77 5 Profit before tax 4.55 5.02 5.54 6.10 6.68 7.24 7.83 7.83 6 Taxation 0.00 0.00 0.00 0.00 0.00 0.72 0.78 1.57 7 Profit after tax 4.55 5.02 5.54 6.10 6.68 6.52 7.05 6.27 8 Withdrawals 0.00 0.00 0.50 0.50 0.50 1.00 1.00 1.00 9 Profit carried to B/S 4.55 5.02 5.04 5.60 6.18 5.52 6.05 5.27
10 Cumulative profit 4.55 9.58 14.62 20.21 26.39 31.91 37.96 43.23 11 Add back depreciation 0.35 0.35 0.35 0.35 0.35 0.35 0.35 0.35 12 Total cash surplus 4.90 9.93 14.96 20.56 26.74 32.26 38.31 43.58
C: Less payment 1 Term Loan 0.00 0.45 0.45 0.45 0.45 0.45 0.00 0.00 2 Withdrawals 0.00 0.00 0.50 0.50 0.50 1.00 1.00 1.00 3 Total payments 0.00 0.45 0.95 0.95 0.95 1.45 1.00 1.00
4 Net Cash accruals 4.90 9.48 14.01 19.61 25.79 30.81 37.31 42.58
PROJECTED BALANCE SHEET
The balance sheet of a unit is a very important feature of the
working of the unit. In a healthy unit, there is always a growth
in total assets and liabilities every year. In a projected balance
sheet on the liabilities side the reserves and surplus and on
the assets side the cash and bank balances should show
healthy growth.
S.no Particulars Year
1st 2nd 3rd 4th 5th 6th 7th 8th
A: Liabilities
1 Promoters Contribution 0.15 0.15 0.15 0.15 0.15 0.15 0.15 0.15
3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00
2 Share Capital
Reserves & 4.55 9.58 14.62 20.21 26.39 31.91 37.96 43.23
3 Surplus
2.25 1.80 1.35 0.90 0.45 0.00 0.00 0.00
4 Term Loan
3.60 4.14 4.68 4.68 4.68 4.68 4.68 4.68
5 WCL
13.55 18.67 23.80 28.94 34.68 39.75 45.80 51.06
Total
B: Assets
3.46 3.11 2.77 2.42 2.08 1.73 1.38 1.04
1 Gross Block
0.35 0.35 0.35 0.35 0.35 0.35 0.35 0.35
2 Depreciation
3.11 2.77 2.42 2.08 1.73 1.38 1.04 0.69
3 Net Block
5.54 6.08 6.62 6.62 6.62 6.62 6.62 6.62
4 Current Assets
4.90 9.82 14.75 20.24 26.32 31.74 38.14 43.75
Cash and bank
5 balance
13.55 18.67 23.80 28.94 34.68 39.75 45.80 51.06
Total
Target marketWe are going to focus on baby wear, children
clothing and youth clothing (both boys and girls).
Market Segmentation
The garments industry can be categorized in many
segments, however our target market consists of;
Baby Wear.
Children Clothing.
Youth Clothing (Boys & Girls)
Competitive Strategy
To establish a system of recording feedback and
complaints of customers in order to meet the need of
customers in better way.
To provide quality garments at best available price in the
market.
To provide new policies related to return and exchange
of clothes which assists the customers in the event of
need for return.