Cotton Lycra Knitted Wears

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Uploaded on : January 2013

Product & Applications

Lifestyle is changing in most of the urban cities very rapidly. People are conscious of advantages and utility of different types of textile. Lycra blended knitted fabric has gradually taken over the conventional cotton knitted fabric for use as hosiery material. Cotton Lycra fabric is widely used in sportswear, slacks, swim wears etc. Lycra is recognized as a natural fiber providing natural fit with no complicated tailoring. The changing fashion and habits calls for new units to come forward and take up such knitted garments for the emerging market. The fabric and its garments are popular in Western countries for its elastomeric properties especially in garments for specialized purpose such as sports. The blending of lycra yarn along with cotton or synthetic yarn varies from 5-10% depending on the utility of the garment.

Industry Profile and Market Assessment

Manufacture of hosiery products is an age old industrial activity and is concentrated in different parts of the country. Ludhiana in Punjab and Tirpur in Tamil Nadu are few such clusters. Whereas in Tirpur the concentration is of Cotton base Hosiery products, Ludhiana boasts of for W0ollen and Synthetic based knitted products. Both the varieties can suitably adopt Lycra blended garments. There is a good export market for the products. The garment sector has a good share in Indian exports. The South East Asian countries and the Gulf area has a good export market for Indian textile and Garment sector. Such garments are now popular in most forms of sports as they have advantages over the traditional cotton garments as regards perspiration absorbing qualities, quicker drying, comfort in fitting, weight better ventilation etc.

Manufacturing Process & Know How

The process of manufacturing is simple and standardized. The dyed/Bleached cotton knitted fabric with Lycra is initially inspected for defects and color variations. The fabric is cut as per the requirement of the garment in manufacture. The cut parts are stitched in different machines as over locking, flat lock folding etc. Finally the finished stitched garment is inspected for any defects, ironed out and packed.

Know how is available with Central Government research Laboratories. The machinery is all indigenously available.
The production capacity envisaged is 75 doz per day on one shift basis for 300 days per year.


Plant and Machinery:


The main plant and machinery required comprise

High Speed over lock m/c. 5 no.      
Flat folding m/c   3no.
Straight Knife cutting             1nos
Rib cutting m/c   1 no
Sewing m/c (Electrical)  1 no.
Scissors, Press, measuring instruments L.S
   Misc. Office Furniture L.S

The total cost of machinery is estimated to be Rs.11.20 lakhs.
The unit will also require miscellaneous assets such as furniture, fixtures, storage facilities etc. the total cost of these is estimated to be Rs. 0.80 lakhs.
The total requirement of power shall be 10 HP.


Raw material and Packing Material

The basic raw material for the unit is good quality Dyed / Bleached knitted clothes for garment cotton-lycra mixed. Elastic tape, Zips, Hooks, Buttons, Stickers etc. Besides, the unit will also require sewing Threads, labels, packing boxes, polythene bags etc. for packing. The annual requirement of cloth is estimated to be 33600 kg at rated capacity.  The packing may be of two types for retail sale and for bulk sale. For retail printed polythene bags are suitable, while for bulk polylined gunny bags. Packing material like boxes, polythene sheets, box strapping etc shall also be required.
On an average the raw material cost has been estimated to be Rs.87.30 lakhs per annum. At 60% capacity in 1st year the cost works out to Rs 52.38 lakhs


Land and Building

For smooth operation of the unit, it will require a built up area of 300 sq. mts. The total cost of land and building is estimated at Rs. 8.00 lakhs.




For smooth functioning of the unit the requirement of man power is expected to be around 11 persons.


Sales person                            Self          
Skilled Workers                         5
Semi skilled workers                   2
Helpers                                           3
Supervisor                                1

The annual salary bill is estimated to be around Rs.7.20 lakhs.:


Sales Revenue: (100% capacity)

Selling price varies depending on the product quality. For products such as swim wears, slacks, kids shorts etc. an average price of Rs 600/- per dozen has been taken, the annual income at installed capacity of 22,500 dozs is Rs 135.00 lakhs. At 60% installed capacity it is Rs. 81.00 lakhs.


Cost of Project:


Rs. lakhs 
Land & Building             8.00
Plant & Machinery      11.20
Other assets              0.80
Contingencies             2.00
 P & P expenses       1.00
Margin money               4.29
Total                     27.29
Means of Finance  
Promoters Contribution 12.29
Term Loan 15.00
Total 27.29




                           Rs. lakhs 
Sales                              81.00
Raw material                 52.38
Salary 7.20
Utilities                                        0.90
Stores & Spares 0.30
Repairs & Maintenance 0.60
Selling expenses                       8.10
Administrative expenses           2.02
Depreciation 1.12
Interest on T.L                       1.65
Interest on W.C                          0.86
Cost of production                   75.13
Profit                                          5.87


Requirement of Working Capital


    Margin W.C        Margin money
Raw material & packing      15 days    30%  2.62          0.78
Stock of finished goods       15 days    25%   3.93          0.98
Working expenses                1 month 100% 1.66           1.66
Sale on credit                       15 days   25%  4.05         1.01
Margin money for W.C         4.43          


Break Even point:   44%


Machinery Suppliers

    1. M/S Akal Mechanical Works Gali Vakila, Purana Bazar, Ludhiana.

    2. M/s Swaroop Mechanical Works, Overlock Road, Ludhiana.

    3. M/S Vijay Sewing P Ltd. Everst House, JLN Road, Kolkata.

    4. M/S Rita Mechanical

Knitted Fabric

  1. M/S Mayfair Fabric, Industrial Area – A, Ludhiana.

  2. M/S Superfine Knitters Ltd. 269, Industrial Area, Ludhiana.

  3. M/S Sharmanji Fabric, Bahadur Road, Dana Mandi, Ludhiana.

Sewing Thread & Elastic Tape

  1. M/S Vardhaman Spng & Genl Mills, Chandigarh Road, Ludhiana

  2. M/S Coats India Ltd. 144, M.G. Road, Bangalore.

  3. M/S Modi Threads, Modi Nagar,U.P

  4. M/S D.P. Elastics, Nai Basti, Pahari Dheeraj, Delhi

  5. M/S Techno Elastics, East Park Road, Karol Bagh, New Delhi.

  6. M/S M.D.R. Tapes P. Ltd. Pocket E-15, Sector-8, Rohini, N.Delhi.

For further information please contact

Information Manager
TIMEIS Project