PROJECT REPORT

ON
KURTI, CHURIDARS AND NIGHTY

MONTH & YEAR OF PREPARATION: April 2019

PREPARED BY: Niranjan Mohanty

Bhubaneswar, Odiaha
Ph-
INTRODUCTION:

Manufacturing of Ladies Kurti, Churidar and Nightgown 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. Indian Textile industry contributes to 7 per cent of industrial output in terms of
value, 2 per cent of India's GDP and to 15 per cent of country's export earnings.
The size of India's textile and apparel market recorded USD 108.5 billion in 2015 and is
expected to reach USD 226 billion by 2023, growing at a CAGR of 8.7 per cent between 2009
and 2023. India is the second largest producer and exporter of cotton in the world at $6.3
billion, marginally close to China. India has emerged as the largest producer of cotton in the
world with the production of 345 lakh bales in 2016-17 and second largest exporter after China.
Currently, the cotton industry is sustaining livelihoods of 5.8 million farmers and 40-50 million
people engaged in other activities like processing and trading. 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.
In order to follow the goal of making India's development inclusive, the central government is
focusing on a number of policies in providing best manufacturing and infrastructure to local
artisans, technology and innovation, enhancing skills and strengths of the local industry.
Some of these major initiatives are listed below:
The government has been implementing various policy initiatives and programmes for
development of textiles and handicrafts, particularly for technology, infrastructure creation,
skill development, including:
 Amended Technology Upgradation Funds Scheme (ATUFS)
 PowerTex India Scheme
 Scheme for Integrated Textile Parks
 SAMARTH- scheme for capacity building in Textile Sector
 Silk Samagra- integrated silk development scheme
 North Eastern Region Textile Promotion Scheme (NERTPS)
 National Handicraft Development Programme (NHDP)
 Comprehensive Handicrafts Cluster Development Scheme (CHCDS).

The Textile Ministry of India announced 690 Cr INR (US$ 106.58 million) for setting up 21 ready-
made garment manufacturing units in seven states for development and modernisation of
Indian Textile Sector.
This project report is prepared for the manufacture of ladies’ Kurti, Churidar and nightgown as
they find wide acceptance in local and international markets. Any person having the knowledge
of cutting and stitching operations can easily set up such establishments.
(Source: - Textile Industry In India: Latest Facts, Figures And Government Schemes)

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 have 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 ladies’ readymade garments.

BASE & SUPPOSITIONS:

We have taken the following presumption into consideration while preparing the project
proposal
 This project is based on single shift basis and 300 working days in a year.
 Since this industry is labour-intensive, the working efficiency is considered at 75%.
 Costs of machinery and equipment/ material indicated refer to a particular make and
approximately to those prevailing at the time of preparation of this project.
 Installation and electrification cost is taken @ 10% of cost of machinery and equipment.
 Non-refundable deposits, project report cost, trial production, security deposits with
Electricity Board are taken under pre-operative expenses.
 Depreciation has been considered on the following variables:

a) On Building @ 10%
b) On plant and machinery @ 15%
c) On office furniture and fixtures @ 10%
d) On other fixed assets @ 15%.

 Interest on capital investment has been taken @ 13% per annum.

  Minimum 25% of total investment is required as margin money.

IMPLEMENTATION SCHEDULE
Implementation period in months for executing this project in stage-wise is given below:

Serial No. Activity Period Time in Months

1 Selection of site/working shed 1
2 Formation of company 1
(ownership/partnership)
3 Preparation of feasibility report 1
4 Registration with commissioner of 1
Industries/DIC
5 Arrangement of finance (Term loan and 3
working capital)
6 Procurement of machinery and equipment 1
7 Plant erection and electrification 0.5
8 Arrangement of raw material including 1
packaging material etc.
9 Recruitment of manpower 1
10 Selection of market channel 1
11 Miscellaneous works like power/water 1
connection etc.

Note: Considering that some of the above activities may be overlapping, the project
implementation will take a total period of six months approximately for starting the production.

TECHNICAL ASPECTS

Process of Manufacture: The manufacturing process involves the following steps:

 Procurement of Fabric: Dyed/bleached/printed cotton/synthetic fabrics as per demand
are to be procured from the open market. The fabric will be inspected by laying on the
inspection table against light before cutting so that unevenness in colour/shade or any
other fault, if any visible in the fabric are eliminated.

 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 is carried out by the cutting machine. Stitching is carried out for
individual portion of the garments by skilled workers with the help of over-lock, lock
stitch machines etc.
  Washing, Checking, Pressing and Packing: All garments are charged into washing
machine containing mild detergent and washed for 4 hours in order to remove dirt and
stains acquired during the manufacturing process. After washing, the garments are
hydro extracted to remove excess water and after this, these garments are dried in
tumbler dryer. Final checking is done before pressing and packing on the checking table
so that any fault in the piece may be removed and protruding threads eliminated. The
individual pieces are pressed by steam presses to remove any wrinkle marks and packed
in the carton boxes.

QUALITY CONTROL & STANDARD:

The quality of garments mainly depends on quality of fabric used. Therefore, care must be
taken while purchasing fabrics to ensure good colourfastness properties, uniformity in shade
etc. Generally, garments are made as per customer's specification in respect of size, design and
fashion.
 IS:1267 Garment Quality Guide
 IS:4039 Readymade Garment Packaging for Export.
 IS:10194 Garment Guide for Positioning of Labels.

MOTIVE POWER REQUIRED:

Total 30 HP is required to run this unit at installed capacity.

POLLUTION CONTROL:

Periodically will contact State Pollution Control Board for necessary guidance.

ENERGY CONSERVATION:

Maximum care should be taken while selecting the machinery and other electrical equipment
so as to ensure minimum power consumption.

MACHINERY UTILISATION:

Capacity utilization of plant and machinery is considered as 75% of installed capacity. However,
this can be improved to 80% during 3rd year of production.
FINANCIAL ASPECTS:
1. Fixed Capital

A. Machinery Acquisition

Component Units Price Per Unit Cost in INR

Single Needle Lock Stitch 6 21,000 1,26,000
Machine
6” Power driven cloth cutting 2 20,000 40,000
2 Needle Overlock Safety 1 50,000 50,000
Stitching Machine with Trimmer
Double Needle Lock Stitch 1 60,000 60,000
Machine
Button Hole making Machine 1 90,000 90,000
Button Stitching Machine 1 60,000 60,000
Hot Fusing Press 1 60,000 60,000
Garment Washing Machine 25 1 1,45,000 1,45,000
Kg
Hydro extractor 20 Kg capacity 1 1,00,000 1,00,000
Tumbler Dryer 20 Kg capacity 1 1,00,000 1,00,000
Flat Bed Steam Iron Press with 1 45,000 45,000
Vacuum Table
Zig Zag Embroidery Machine 1 40,000 40,000
Generator Set 20 KVA 1 2,50,000 2,50,000
Wash Room Trolleys 2 10,000 20,000
Total 11,96,000

A. Other Fixed Assets

Component Cost in INR

Erection and installation 100,000
Office Furniture 20,000
Pre-operative expenses 15,000
Total 135,000

2. Working Capital

A. Staffing Expenses

Expense Type Nos. Expense/Month Total Cost in INR

Marketing Manager 1 11,000 11,000
Sales Representative 1 8,500 8,500
Accounts Officer 1 8,500 8,500
Peon/Watchman 1 6,000 6,000
Production Manager 1 10,000 10,000
Cutting Master 2 15,000 30,000
Skilled Workers 6 9,000 54,000
Unskilled Workers 2 7000 14,000
Pressman 1 8,000 8,000
Total 1,50,000

B. Raw Material

Material Type Units in Price Per Metres Total Cost in INR

Mt (Rs.)
Cotton Fabric for Kurti & 5,000 60 3,00,000
Chudidars
Fabric for Nighty 2,500 40 1,00,000
Trims and Embellishments 2,500 10 25,000
Sewing Thread 15,000 2 30,000
Total 4,55,000

C. Utilities & Other Contingent Expenses

Component Cost in INR

Washing Detergents 3,000
Packing Material 30,000
Electricity 15,000
Water 1,500
Rent 20,000
Fuel 5,000
Advertisement & Publicity 2,000
Postage & Stationery 500
Repair and Maintenance 1,500
Transport /Traveling charges 3,000
Miscellaneous 4,000
Total 90,000

3. Total Working Capital Requirement

Component Cost in INR

Fixed Cost (Land& Building, Machinery, 13,31,000
Other FA
Recurring Cost for 3 Months (Staffing, Raw 20,85,000
Materials, Other Contingency Expenses)
Total 34,16,000

4. Sales Projection Per Annum for First Year on Operation

Clothing Line Kurti Chudidars Night Gown

Q1 3,000 2000 2000
Q2 3,500 2500 2500
Q3 4,500 3000 3000
Q4 5,000 3500 3500
Total 16,000 11,000 11,000

5. Wholesale Selling Price Per Unit

Clothing Line Cost Per Unit in INR

Kurti 170
Chudidars 160
Night Gown 150

6. Cost Of Production (Per Annum)

1. Recurring Expenses Rs. 83,40,000/-

2. Depreciation on Machinery @ 15% Rs. 1,79,400/-
3. Depreciation on Office Furniture & other Rs. 2,000/-
fixed assets @ 10%
4. Interest on Total Investment @ 12% Rs. 4,09,920

Total: Rs. 89,31,320/-

7. Turn Over(per year) by Sales

Products Quantity Rate/Pc. (Rs.) Value (Rs.)

(Nos.)

Ledies Kurti 16,000 170/- 27,20,000

Ledies Churidar 11,000 160/- 17,60,000

Nighty 11,000 150/- 16,50,000
Total 61,30,000

BALANCE SHEET