Gents Readymade Garments

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Product Code 264104005
Quality and Standards Garment Quality Guide— IS12675
Readymade Garment Packaging for Export IS 4039
Garments Guide for Positioning of Labels IS 10194
Production Capacity Qty. : 90,000 Pcs.
Shirts, 90,000 Pcs. Trousers
Uploaded on August 2007


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 is 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. This project report is prepared for the manufacture of gents shirts, gents trousers as they find wide acceptance in local and international markets. Such establishments can be easily set up by any person having the knowledge of cutting and stitching operations.

Market Potential

Readymade garments are the choice of urban people. It is also gaining wider acceptance in semiurban 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 gents readymade garments.

Basis and Presumptions

  • This project is based on single shift basis and 300 working days in a year.
  • Since this industry is labourintensive, 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 preoperative expenses.
  • Depreciation has been considered:
    (a) On Building @ 5%
    (b) On plant and machinery @ 10%
    (c) On office furniture and fixtures @ 15%
    (d) On other fixed assets @ 15%.
  • Interest on capital investment has been taken @ 14% 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 :

Selection of site/working shed 1 month
Formation of company (ownership/partnership) 1 month
Preparation of feasibility report 1 month
Registration with commissioner of Industries/DIC 1 month
Arrangement of finance (Term loan and working capital) 3 months
Procurement of machinery and equipment 1 month
Plant erection and electrification 2 weeks
Arrangement of raw material including packaging material etc. 1 month
Recruitment of manpower 1 month
Selection of market channel 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

The 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 overlock, 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 hydroextracted 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 and Standards

The quality of garments mainly depends on quality of fabric used. Therefore, care must be taken while purchasing fabrics to ensure good colour fastness properties, uniformity in shade etc. Generally garments are made as per customer's specification in respect of size, design and fashion.

Production Capacity (per annum)


Quantity (pcs.)

Gents Shirts 90,000
Gents Trousers 90,000

Motive Power

Total 55.5 HP is required to run this unit at installed capacity.

Pollution Control

The process of manufacture does not generate pollution. However, entrepreneurs are to contact State Pollution Control Board for necessary guidance.

Energy conservation

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

Financial Aspects

Financial Aspects

Land and Building (Rented) (per month)

Land @ Rs. 1500p.s.m. Amounting Rs.1200000
Building Area
Factory shed 250 sq. mt.
Store (Raw material) 50 sq. mt.
Store (Finished goods) 50 sq. mt.
Office etc. 25 sq. mt.
Total Covered Area 375 sq. mt.
Total Construction Cost @ Rs. 3000/ 1125000
Total Investment in land and Building 2325000

Machinery and Equipments



Rate (In Rs.)

Amount (Rs.)

Fabric inspection machine 1 200000 200000
8" Power driven cloth cutting machine 1 90000 90000
Single needle lock stitch machine with motor 50 20000 20000
2 Needle overlock safety stitching machine with edge trimmer 1 50000 50000
Double Needle lock stitch machine 2 75000 150000
Double Needle feed of the arm machine 1 120000 120000
Button holing machine 1 160000 160000
Button stitching machine 1 75000 75000
Hot fusing press 1 80000 80000
Garment washing machine 25 kg. capacity 1 160000 160000
Hydroextractor 25 kg. capacity 1 90000 90000
Tumbler dryer 25 kg.capacity 1 160000 160000
Flat bed steam iron press with vacuum table 4 85000 85000
Zig zag embroidery machine 1 45000 45000
Generator set 30KVA 1 200000 200000
Washing room trolleys 4 12000 48000
Testing equipments (ends/pick checker, electronic balance, laundrometer etc.) LS 65000 65000
Total   3033000

Other Fixed Assets


Erection and installation 300000
Office furniture 70000
Pre-operative expenses 30000
Total 400000
Total Fixed Capital 5758000

Working Capital (per month)

Staff and labour Wages



Rate (In Rs.)

Amount (Rs.)

Marketing Manager 1 16000 16000
Sales Representative 2 8000 16000
Accounts Officer 1 6500 6500
Store-keeper 1 5000 5000
Clerk/Typist 2 4000 8000
Electrician 1 5000 5000
Peons/Watchman 2 3000 6000
Total 62500
Production Staff
Production Manager 1 16000 16000
Supervisors 2 8000 16000
Cutting Master 1 10000 10000
Skilled Workers 55 4800 264000
Pressman 4 4500 18000
Unskilled workers 6 3250 19500
Lab. Attendant 1 5500 5500
Total 5 3200 411500
Perquisites @20%     82300
G.Total 493800

Raw Material (per month)




Rate/ Unit(Rs.)

Amount (Rs.)

Cotton fabric shirts mtrs 19000 90 1710000
Blended fabric for trousers mtrs. 12000 160 1920000
Trims and embellishments Nos 15000 16 240000
Sewing thread mtrs 15000 4 60000
Washing detergents     LS 3900
Packing material Nos 15000 4 60000
Total 3993900

Utilities (per month)


Electricity 32000
Water Charges 2200
Fuel for generator 10000
Total 44200

Other Contingent Expenses (per month)


Advertisement and publicity 10000
Postage/Stationery 2000
Repair and maintenance 13000
Transport/travelling charges 5000
Insurance 1000
Telephone 3000
Miscellaneous expenses 4000
Total 38000
Total Recurring Expenses (per month) 4569900
Total Working Capital for 2 months 9139800

Total Capital Investment

Land and building 2325000
Machinery and equipment 3433000
Working capital for 2 months 9139800
Total 14897800

Machinery Utilisation

Capacity utilisation is considered as 75% of installed capacity.

Financial Analysis

Cost of Production (per year)


Recurring expenses 54838800
Depreciation on building @ 5% 116250
Depreciation on machinery @ 10% 303300
Depreciation on office furniture and other fixed assets @ 20% 80000
Interest on total investment @ 14% 2085692
Total 57424042

Turnover (per year) (Sales)




Amount (Rs.)

Gents shirts 90000 290 26100000
Gents trousers 90000 390 35100000
Total 61200000
Net Profit (per year) 3775958
Net Profit Ratio (Net profit/Turnover per year) 6.17%
Rate of Return on Investment (Net Profit/Total Capital Investment) 25.35%

Break-even Point

Fixed Cost


Depreciation 499550
Interest on capital investment 2085692
40% of wages of staff and labour 2370240
40% of other expenses 177600
Insurance 12000
Total 5145082

B.E.P. Fixed cost × 100
Fixed cost + Profit
= 57.67%

For further information please contact

Information Manager
TIMEIS Project