Neck – Ties

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Product Code 264104005
Quality and Standards The product is a fashion item and there is no BIS specification for this item, however, quality of the product depends upon the quality of the fabric.
Uploaded on August 2007


Ties are considered as item of fashion. Ties has been finding exceptionally good acceptance among the sales representatives, doctors, CEO's, Engineers, Hotel servants and others such as college and school students. Shirts worn without ties are considered as incomplete. Wearing of ties improves one's personality and respect. Ties are classified into two types, which are bow ties and neck ties. The former one are generally worn by hotel waiters whereas the later are worn by people mentioned above.

Ties are made from various types of fabrics and most popular fabrics that are used for the manufacture of ties are cotton, viscose, silk fabrics and their blends. Manufacturing of ties is very easy and anyone knowing tailoring and managing a unit can venture into this industry. The raw material and machinery required for the manufacture of ties are abundantly available. In this report, an attempt has been made to provide sufficient information for setting up of tie manufacturing units.

Market Potential

In recent years almost all the countries in the world are witnessing lot of changes in life style of people. Present life style is witnessing very fast changes in wearing fashion garments. The demand for fashion garments is very huge due to shifting of wearing fashion garments from elite people to common persons. Among various fashion garments, tie occupies an important place. There are very less number of units engaged in the manufacture of ties and as such demand and supply gap is getting wider. Tie have its own market demand from various market segments. Main customers for ties are Doctors, CEOs, Sales representatives, waiters in star hotels, reception counters and executives.

Basis and Presumptions

  • This project is based on double shift basis and 300 working days in a year.
  • The Building is considered of own.
  • The cost of machinery and equipments/materials indicated refers to particular make and approximately to those prevailing at the time of preparation of this project.
  • The cost of installation and electrification is taken @ 10% of cost of machinery and equipment.
  • Non refundable deposits, project report, cost, trial production, security deposits with electricity board are classified under preoperative expenses.
  • Depreciation has been considered: (a) on plant and machinery @ 10% (b) on office furniture & fixtures @ 20%
  • Interest on capital investment has been taken @13% per annum on borrowing amount.
  • Minimum 25% of total investment is required as margin money.

Implementation Schedule



Selection of site/working shed 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 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 period of 4 months approximately for starting the production.

Technical Aspects

Process of Manufacture

Before starting the stitching operations, fabrics of required quality are placed on the cutting table in layers and lay mark is prepared on top of the fabric layer and these layers are perfectly cut as per the mark without any distortion in cutting. The panels after cutting are taken out from the table and supplied to the skilled tailors for stitching. After the stitching, ironing is done with the aid of electric iron. Ironing is an important process by which ties are given proper and final shape. Ties are finally checked for any objectionable faults and packed for marketing.

Quality Control and Standards

This product is consumable item and having different designs and colours and its combinations depending upon the demand of the consumers. So standard specifications of appropriate quality is not possible. However, to manufacture better quality, good quality fabrics and other materials are to be used.

Production Capacity (per annum)

It is proposed to manufacture 90,000 pieces of Leather Garments for Men, Women and Children valued at Rs.


Qty. (pcs)

Value (Rs.)

Ties of different sizes 210000 5250000

Motive Power

Power required to run this industry will be 5 HP.

Pollution Control

This industry does not involve anypollution.

Energy Conservation

Power requirement is very low, even then energy can be saved by proper house keeping.

Financial Aspects

Fixed Capital

(i) Land and Building
Land @ Rs. 3000p.s.m. Amounting Rs 600000.00  
Building Area 100 sq. mt.
Store (Raw material) 25 sq. mt.
Store (Finished goods) 50 sq. mt.
Store (Finished goods) 50 sq. mt.
Office etc. 25 sq. mt.
Total Covered Area 100 sq. mt.
Total Construction Cost @ Rs. 4000/ 400000.00
Total Investment in land and Building 1000000.00

Machinery and Equipments



Rate (Rs.)

Amount (Rs.)

Eastern straight bar cloth cutting machine with motor 1 70000 70000
Power operated single needle lock sewing machine 10 320 3200
Electric iron 4 2200 8800
Table and workshop items LS 17000 17000

Other Fixed Assets

Other Fixed Assets


Erection and installation 9900
Office furniture 25000
Pre-operative expenses 25000
Total 158900
Total Fixed Capital 1158900

Working Capital (per month)

Staff and labour wages



Rate (Rs.)

Amount (Rs.)

Manager/Designer 1 8000 8000
Clerk/Typists 1 4000 4000
Production Staff
Cutting Master 2 6000 12000
Skilled workers 18 3800 68400
Helpers 8 3000 24000
Total 116400
Perquisites @ 20% 23280
G. Total 139680

Raw Material




Rate/ Unit (Rs.)

Amount (Rs.)

Synthetic fabrics of different colours, shades and design Mts 3000 54 162000
Sewing thread labels of different colours and shades Mts. LS 7000 7000
Packing materials Nos. LS 20000 20000
Total 189000



Electricity Bill 6000
Water charges 500
Total 6500

Other Contingent Expenses


Postage/Stationery 1000
Repairs and maintenance 800
Transport /travelling charges 1000
Insurance 250
Misc. 2000
Total 5050
Total Recurring Expenses (per month) 340230
Total Working Capital (for 2 months) 680460

Total Capital Investment

Land Machinery and equipment 1158900
Working capital (for 2 months) 680460
Total 1839360

Machinery Utilisation

Capacity utilisation is considered as 70% of installation capacity.

Financial Analysis

Cost of Production (per year)


Recurring expenses 4082760
Depreciation on Building @ 5 % 50000
Depreciation on machinery @ 10% 15890
Depreciation on Office furniture @20% 5000
Interest on total investment @13% 239116.8
Total 4392766.8

Turnover (per year)

Qty. (pcs)

Rate/ (Pc.)

Total (Rs.)

Ties of synthetic fabrics 210000 25 5250000

Net Profit (per year) 857233.2
Net Profit Ratio (Net Profit/ Turnover (per year) 19.51
Rate of Return on Investment (Net Profit/Total Capital Investment) 46.6

Break-even Point

Fixed Cost


Depreciation on Plant & Machinery office equipment etc 20890
Depreciation on Building 50000
Interest on capital investment 239116.8
40% of wages of staff and labour 670464
40% of other expenses 23040
Insurance 3000
Total 1006510.8
B.E.P F.C * 100/(FC+P)

For further information please contact

Information Manager
TIMEIS Project