Cotton Knitted Undergarments (Briefs, Panties, Vests)

Home » Technology » Project Profiles » Textile » Cotton Knitted Undergarments (Briefs, Panties, Vests)
Product Code 260104000/260102008
Quality and Standards The following Indian Standards may be referred.
IS 4663:1980, IS 4665:1975,
IS 4809:1968, IS 4046:1981
Uploaded on July 2007


This project profile is for the setting up of unit for the manufacture of cotton undergarments such as vests, briefs and panties. Knitted undergarments are used and liked by the people because of its good drapability, stretchability, softness and absorbency of sweat characteristics. In this report, guidelines for setting up of unit for the manufacture of gents briefs, vests, ladies panties are given. Machinery and raw material required to set up this industry are indigenously available.

Market Potential

Hosiery industry is an ancient industry in the field of textile industry having very good potential in domestic market and also in the export market. There is increasing market demand for hosiery undergarments for its various advantages. Cotton undergarments are widely used by all classes of people because of its good absorbency, cheaper prices and ready availability. These foundation garments are used by the people throughout the year under different climatic conditions. It is presumed that there will be no problem in marketing of knitted undergarments of good quality.

Basis and Presumptions

This project is based on single shift basis with 8 hours and 300 working days in a year. The unit is proposed to be started in own building. Costs of machinery, equipment, raw material indicated in this report refer to a particular make and approximately to those prevailing at the time of preparation of this project and it is presumed that these rates are likely to vary from supplier to supplier and place to place. Cost of installation and electrification of plant and machinery is taken @ 10% of its cost.

Non-refundable deposits, project report cost, trial production cost, security deposit with Electricity Board are taken under pre-operative expenses. Depreciation has been considered at 5% on building, 10% on plant and machinery, 15% on furniture and 15% on workshop accessories. Interest rate for the loan has been considered at 14% per annum.

Implementation Schedule

Time period required for executing the project from preparation of project report to starting the trial run production will be 7 months period approximately. Considering that some of the many activities may be overlapping, the project implementation will take a total period of five months approximately for starting the actual production.

Technical Aspects

Process of Manufacture

The manufacturing process involves the following steps :

1. Procurement of Knitted Fabric

Dyed/bleached cotton knitted fabrics are to be procured from the open market. The fabric will be inspected by laying the fabric on the inspection table against light before cutting so that unevenness in colour/shades or any other fault if any visible in the fabric can be eliminated.

2. 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 of fabric layer is carried out by fabric cutting machine in order to have accurate dimensions.

Stitching of whole garment is carried out by the skilled workers with the help of overlock, sewing machines etc.

3. Washing, Checking, Pressing and Packing

Garments obtained from the sewing section will normally have some dirt/ stains which are to be eliminated by treating them with mild soap solution in garment washing machine. Excess water is to be removed from the garments by charging in hydro-extractor and dried in garments drying tumbler.

Final checking is done by placing individual pieces on the checking table so that any fault and protruding thread in the piece may be removed. The individual pieces are pressed by pressing man to remove the wrinkle marks in the piece and packed in the paper board boxes specifically available for the purpose.

Quality Control and Standards

Necessary quality checking must be followed in each stage of manufacturing process in order to maintain the quality. BIS standards applicable for undergarments are given below:

BIS No. Title
IS 4046:1981 Gents cotton knitted briefs
IS 4809:1968 Cotton knitted string vests
IS 4963:1980 Plain knitted cotton vests
IS 4965(Part-1):1975 Interlock cotton knitted vests.

Production Capacity (per annum)

Product Qty. (Dzs.) Value (Rs.)
Vests and ladies panties 36,000 11340000
  18,000 6660000
Total 54,000 18000000

Motive Power

Total power of 22 HP is required to run this unit with proposed installed capacity. The above requirement of power is proposed to be obtained from State Electricity Board.

Pollution Control

Although not required, entrepreneurs are to contact State Pollution Control Board as a precautionary measure.

Energy Conservation

Wastage of energy should be minimised by proper house-keeping methods in order to keep the unit more competitive in the market.

Financial Aspects

Fixed Capital

Land and Building

Land and Building Factory shed 450 sq. mt.@ Rs 1500 psm. amounting Rs 6,75,000 300
Building Area Store (Raw material)
Store (Finished goods)
Office etc.
Total covered area
Total construction
cost Rs. 3000/

Total investment in land and building. 1950000

Machinery and Equipments



Rate (Rs.)

Amount (Rs.)

Cutting machine (Power Operated) 1 75000 75000
Overlock machine (3 thread) with motor and stand (1/2 HP) 55 8000 440000
Folding machine with stand and motor (1/2HP motor) 4 15000 60000
Rib Cutting machine with stand and motor (1/2 HP motor) 2 7000 14000
Sewing machine with motor stand (1/2 HP) 4 5500 22000
Scissors, measuring instruments, checking table and miscellaneous items LS 30000 30000
Garment washing machine 12kg. capacity 1 75000 75000
Hydro-extractor 25 kg. capacity 1 78000 78000
Dryer Tumbler 25 kg. capacity 1 165000 165000
Washing room trolleys 4 11000 44000
Steam press portable type 6 19000 114000
Packing, forwarding, CST and Others LS   110000
Total 1227000

Other Fixed Assets


Erection and installation 100000
Office furniture 50000
Pre-operative expenses 30000
Total 180000
Total Fixed Capital 3357000

Working Capital (per month)

Staff and Labour Wages



Salary (Rs.)

Amount (Rs.)

Plant Manager 1 16000 16000
Sales Representative 1 9000 9000
Clerk/Store-keeper 1 5000 5000
Peon 1 3000 3000
Watchman 4 3000 3000
Total 36000
Production Staff
Cutting Master 1 10000 10000
Supervisor 1 7000 7000
Skilled workers 67 5000 335000
Pressing man 6 5000 30000
Helpers 7 4500 31500
Total 449500
Perquisites @ 20% 89900
G.Total 539400

Raw Material


Qty. (mts.)

Rate (Rs.)

Amount (Rs.)

Dyed/bleached knitted cotton cloth 40s count for vests and panties (kgs.) 2520 180 453600
Dyed/bleached knitted cotton cloth 30s and 34s count for briefs (kgs.) 756 150 113400
Top elastic for briefs and panties (mts.) 18000 4.6 82800
Leg elastic for briefs and panties (mts.) 21000 1.5 31500
Labels, size label, polythene bag, brand boxes LS 12000 12000
Sewing thread LS 8500 8500
Detergent for washing LS 6000 6000
Total 707800

Utilities (per month)


Electricity bill 7000
Water charges 1200
Total 15200

Other Contingent Expenses (per month)


Advertisement and Publicity 8000
Postage/stationery 1000
Repair and maintenance 10000
Transport/travelling charges 5000
Insurance 700
Telephone bills 5000
Miscellaneous expenses 5000
Total 31700
Total Recurring Expenses (per month) 1294100
Total Working Capital for 2 months 2588200

Total Capital Investment


Land and building 1950000
Machinery and equipment 1227000
Working capital for 2 months 2588200
Total 5765200

Total Working Capital (on 2 months basis) 484000

Machinery Utilisation

Capacity utilisation of plant and machinery is considered as 70% of installed capacity. However, this can be improved to 80% during 3rd year of production.

Financial Analysis

Cost of Production (per year)


Recurring expenses 15529200
Depreciation on building @ 5% 97500
Depreciation on machinery @ 10% 122700
Depreciation on office furniture @ 15% 7500
Interest on total investment @ 14% 807128
Total 16564028

Turnover (per year) by Sales


Qty. (Rs.)

Rate/Dz (Rs.)

Amount (Rs.)

Vest and Ladies panties 36000 315 11340000
Briefs 18000 370 6660000
Total 54000   18000000

Net Profit (per year) 512850
Net Profit Ratio (Net Profit/Turnover (per year) 7.98%
Rate of Return on Investment (Net Profit/Total Capital Investment) 24.91%

Break-even Point

Fixed Cost


Depreciation 227700
Interest on capital investment 807128
40% of wages of staff and labour 2589120
40% of other contingent expenses 148800
Insurance 8400
Total 3781148

B.E.P. FC×100
= 72.48%

Addresses of Machinery and Equipment Suppliers

  • M/s. Paras Special Machine Co.
    Madhopur Kucha No. 7,
    Rohan Road, Ludhiana.
  • M/s. Vijay Sewing (P) Ltd.
    17-D, Everest House, 46-C,
    Chowringhee Road, Kolkata.
  • M/s. Industrial Machines Pvt. Ltd.
    1/23 B, Asaf Ali Road,
    New Delhi-110002.
  • M/s. Apparel and Leather Techniques Pvt. Ltd.
    Sarjapur Road,
    Near Bellaandur Gate,
  • M/s. Industrial Sewing Systems
    30, Ramakrishna Street,
    North Usman Road,
    T. Nagar, Chennai.

Raw Material Suppliers

  • M/s. Vardhman Threads, Mahavir Spinning Mills Ltd.
    Chandigarh Road,
  • M/s. Powerloom Cloth Manufacturing Centre Erode,
    Bhiwandi, Mumbai, Surat etc.

For further information please contact

Information Manager
TIMEIS Project