Elastic Tape

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Product Code 267904002
Quality and Standards IS 9686:1980
Uploaded on August 2007


Garment forms one of the basic needs of human being. In a country like India with growing population, the increase in demand for the readymade garments is a continuing process. A good dress should give importance to three basic parameters. These are comfort to wearer, matching colours and climate adjustments.

Elastic tapes are required for the purpose of holding the garments tightly when it is worn by the persons. In addition to providing comfort, it also increases the life of the garments. Generally, the elastic tapes are used in undergarments like briefs, panties, brassiers, baggies, children's dress etc. It is also used in suitcases for inside straps for better grip holding and in car seats for safety driving etc.

Market Potential

With the increasing demand for the undergarments and readymade garments, there is enough scope for the garment ancillary units including the elastic tapes. There is always good demand for the elastic tapes.

Basis and Presumptions

  • This project is based on single shift basis and 300 working days in a year.
  • Time period for achieving maximum capacity utilisation is considered from 3rd year from the date on which production is started.
  • Building is considered of its own
  • 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.
  • Cost of installation and electrification is taken @ 10% of cost of machinery and equipment.
  • Non-refundable deposits, project report cost, trial production, security deposit with Electricity Board etc. are taken under preoperative expenses.
  • Depreciation has been considered as 10% on plant and machinery, 15% on office furniture and fixtures and 20% on workshop accessories.
  • Interest on capital investment has been taken @ 14% per annum.

Implementation Schedule

Activity Period
Selection of site/working shed 1 month
Formation of company (ownership/partnership) 1 month
Registration with Commissioner of Industries/ DIC 1 month
Procurement of machinnery and equipment 1 month
Arrangement of finance (Term loan and working capital) 3 months
Selection of market channel 1 month
Plant erection and electrification 2 weeks
Arrangement of raw material including packaging material 1 month
Recruitment of manpower 1 month
Miscellaneous works like power/water connection etc. 2 months

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

Different types of yarn like viscose, nylon and cotton are placed on creel for working purpose as per design. Warp is prepared on warping machine. It is to be ensured that no loose threads are present in the warp sheet in order to run the machine without stoppage. Prepared warp beam is shifted to needle loom and individual threads are drawn as per design. When the machine starts weaping, the woven tapes will come out of the machine and finally wound on the rolls, After finishing on finishing machine, rolls are packed into polythene packs for supply to the customers.

Quality Control and Standards

The product should be clean from oil stains, cuts, any other defects etc. Care should be taken while manufacturing to avoid occurrence of the above faults.

Production Capacity (per annum)



Value (Rs.)

Elastic Tape 16,80,000 10920000

Motive Power

25 HP is required to run this unit.

Pollution Control

Although not required, however, entrepreneurs have to contact State Pollution Control Board for necessary guidance.

Energy Conservation

Energy can be saved by proper housekeeping.

Financial Aspects

Fixed Capital

Land and Building

Land and Building
Uncovered area 100 sq.mt.
Land and Building 200 sq.mt.
Cost of land @ Rs. 2000/sq.mt 600000
Cost of construction @ 4000/sq.mt 400000
Total 1000000

Machinery and Equipments



Rate (Rs.)

Amount (Rs.)

High speed needle loom 12 shaft front reed 12" without back frame and beam Model 6/27 Varitex 2 600000 1200000
Warping machine type b 350 suitable or 350 mm dia and 250 mm width with warp speed 180 mts./ min.max. 1 1400000 1400000
Creel for 250 ends 1 80000 80000
Aluminium flanged beams bolted 50 1500 75000
Finishing machine series FS-2 main drum guide rollers made of SS 304 dia 800mm, length 1210mm, 36 heaters, maximum speed 36 mts./min. 1. 260000 260000
Back frames 3 10000 30000
Measuring and winding machine suitable for making rolls upto 30mm.dia 1 60000 60000
Fire fighting equipments LS 10000 10000
Lab. equipments LS 10000 10000
Total 3125000

Other Fixed Assets


Erection and installation 312500
Office furniture 50000
Pre-operative expenses 30000
Total 392500
Total Fixed Capital 4517500

Working Capital (per month)

Staff and Labour Wages



Salary (Rs.)

Amount (Rs.)

Plant Manager 1 16000 16000
Sales Officer 1 9000 9000
Accountant/Cashier 1 5000 5000
Peon 2 3000 6000
Supervisors 1 9000 9000
Skilled workers 4 4500 18000
Unskilled workers 2 3500 7000
Total 70000
Perquisites@20% 14000
G.Total 84000

Raw Materials (per month)


Qty. (mts.)

Rate (Rs.)

Amount (Rs.)

Crimped Nylon yarn 1/120 1000 240 240000
Viscose 450 Dn. yarn 750 120 90000
32 s Cotton yarn 750 140 105000
Latex thread 775 140 108500
Glue/starch 100 12 1200
Total 544700

Utilities (per month)


Electricity bill Water charges 15000
Total 15000

Other Contingent Expenses (per month)


Postage/Stationery 1000
Repair and maintenance 15000
Transport/travelling Charges 3000
Insurance Insurance 1000
Telephone bills 4000
Miscellaneous 4000
Total 28000
Total Recurring Expenses (per month) 671700
Total Working Capital for 2 months 1343400

Total Capital Investment

Land Machinery and equipment 4517500
Working capital for 2 months 1343400
Total 5860900

Machinery Utilisation

Capacity utilisation is considered as 75% of installed capacity.

Financial Analysis

Cost of Production (per year)


Recurring expenses 8060400
Depreciation on machinery @ 10% 312500
Depreciation on Building @ 5 % 50000
Depreciation on office furniture, other fixed assets @ 20% 78500
Interest on total investment @ 14% 820526
Total 9321926

Turnover (per year) (Sales)


Qty. (Rs.)

Rate/Dz (Rs.)

Amount (Rs.)

Elastic Tape 1680000 6.50 10920000
Total 10920000

Net Profit (per year) 1598074
Net Profit Ratio (Net profit/Turnover (per year) 14.63%
Rate of Return on Investment (Net Profit/Total Capital Investment) 27.27%

Break-even Point

Fixed Cost


Depreciation 441000
Interest on capital investment 820526
40% of wages of staff and labour 403200
40% of other contingent expenses 129600
Insurance 12000
Total 1806326

B.E.P. Fixed cost × 100
Fixed cost + Profit
= 53.06%

Addresses of Machinery and Equipment Suppliers

  • M/s. Baku Bhai Ambalal
    3-Madrwah Estate,
    Saki Vihar Road, Sakinaka,
  • M/s. Prashant Engg. Co.
    Plot No. 4/1-A,
    GIDC Estate, Vatva,

Addresses of Raw Material Suppliers

  • M/s. Moupan Ltd.
    Modi Nagar, (U.P.)
  • M/s. Lohia Machine Ltd.
    (Fibre Div.)
    C-3 and 4, Panki Indl. Estate,
  • M/s. Vardhman Spinning and Gen. Mills Ltd.
    Chandigarh Road, Ludhiana.
  • M/s. India Spinners and Processors
    5309, Basti Harphool Singh,

For further information please contact

Information Manager
TIMEIS Project
E-mail: timeis@ficci.com