Knitted Socks (Cotton/Nylon)

Home » Technology » Project Profiles » Textile » Knitted Socks (Cotton/Nylon)
Product Code 260103/260301
Quality and Standards Nylon Socks-IS 5084:1990
Socks Cotton-IS 3329:1973
Production Capacity Quantity: 1,50,000 Dozen Pairs
Value : Rs. 34380000
Uploaded on August 2007


In the hierarchy of human needs, clothing occupies the second top most priority coming only next to the food. The use of socks by the armed forces fighting in high altitude and in adverse climatic conditions has now been finding its ways among executives and school children. Wearing of any kind of shoes without socks is termed as incomplete. Socks are simple items and one of the basic necessities of people of all ages and income strata. Socio-economic changes and fashion awareness amongst the masses have brought in a sea change in the living styles in India.

Socks of various types and designs can be produced by using cotton yarn, acrylic yarn, polyester yarn, nylon yarn of different counts, quality and shades. The elastic portion on the top of socks is produced by using rubbered yarn or lycra yarn. This project is prepared for the manufacture of men's socks for domestic market in various sizes to ensure that this commodity is available in a wide range. Subsequently, the unit may diversify for similar products like children socks, women stockings etc. depending upon the market demand from time to time.

Market Potential

The demand for the socks has been increasing gradually for the last few decades particularly in India and other developing countries. The largest consumer of socks are the Europeans and Western countries who have been using this item as part of their dresses for a very long period. The European and Western countries have been producing socks, from where these items used to be imported into India and other countries.

However, as the item has gradually become popular, the socks have also been produced in India initially to meet the domestic demand and subsequently for export purposes. Over the past few years as the standards of living went up, the socks which were earlier worn to provide comfort to the feet have now become part of fashion commodities. The socks industry has a very bright future as its demand both in India and abroad has increased substantially.

A Survey conducted recently show that only 2% of population in India wears socks and therefore, 98% market is yet to be exploited, while consumption of socks in most advanced countries is extremely high. The existing production capacity in the country is grossly inadequate to meet the domestic and international demand. It is, therefore, feasible to set up more socks knitting units.

Basis and Presumptions

The building is considered of its own. The project is based on single shift basis and 300 working days and time period for achieving maximum capacity utilisation considered from 3rd year from the date on which production is started. Costs of machinery and equipment mentioned in this report refer to a particular make and approximate 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 State Electricity Board are taken as pre-operative expenses.

Depreciation has been considered as 10% on plant and machinery, 20% on furniture and fixtures and 25% on workshop accessories. Interest on capital loan is considered as 14% per annum. Minimum 25% of total investment is required as margin money. Break-even point has been calculated on full capacity utilisation.

Implementation Schedule

The implementation schedule of this project may take a total period of six months approximately for starting the production.

Technical Aspects

Process of Manufacture

Initially, the size and design of the socks to be knitted are decided and accordingly, the machines are selected and set. After setting the machine with the required design and size, the predetermined colour yarns are loaded on the bobbin stands in the creel assembly of the machine and fed into the knitting elements of the machine.

Socks are knitted in continuous process and several operations are performed before a socks is completed. Knitting is done in stages begining with elastic portion for which elastic yarn is used. The leg portion is knitted followed by heel and foot portion ending up with the toe portion of the socks. The toe portion of socks is closed by stitching on overlock machine. Socks thus produced will have acquired dirt which have to be removed by washing in socks washing machine containing mild detergent. After washing, socks are charged into hydroextractor to remove excess water and dried in dryer tumbler. Visual examination is done to remove any faults and finally ironed to remove wrinkles and also to provide proper shape. Socks are reversed and paired manually by attaching pins at different places and packed in polythene bags. About 10 pairs of socks are put into paper board box for sending it to customers.

Quality Control and Standards

Strict quality control is required to be implemented/monitored in each stage of operation cycle of manufacturing process. Raw materials (Yarn) should be purchased only from reputed manufacturers and should have excellent fastness properties as the quality of socks largely depends on yarn quality. The Bureau of Indian Standards have specified following Indian standards for knitted socks.
Cotton socks – IS 3329:1973
Nylon socks – IS 5084:1990

Production Capacity (per annum)



Value (Rs.)

Plain Socks (Doz. pairs) 90,000 17820000
Terry Socks (Doz. pairs) 60,000 16560000
Total 1,50,000 34380000

Motive Power

62 HP of power is required to run this unit. For interruption-free running of the unit, a genset is proposed to be installed as stand-by arrangement.

Pollution Control

No Pollution is generated in the manufacture of socks. As such no pollution control measure is required to be undertaken.

Energy conservation

Energy can be saved by adopting proper house-keeping methods.

Financial Aspects

Financial Aspects

Land and Building
Land @ Rs. 2000p.s.m. Amounting Rs.1200000
Factory shed
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.)

Automatic power socks knitting machine for the production of 3 colour jacquard socks with horizontal stripes plaiting system colour by colour motif and mesh with colour modes M1 MC3 30 250000 7500000
Automatic power socks knitting machine for the production of terry socks with 2 colour motif and horizontal stripes and broad rib elastic top upto 23 steps 20 150000 3000000
Power driven overlock machine (high speed) 8 58000 464000
Rotor cabinet socks setting machine with built-in boiler and 36 frames 1 480000 480000
Garment washing machine 50 kg. 2 180000 360000
Hydroextractor 25 kg. 1 85000 85000
Dryer Tumbler 25 kg. 1 180000 180000
Wash room trolleys 3 10000 30000
Steam press (Central boiler type) 2 200000 400000
30 KVA Generator Set complete 1 150000 150000
Personal Computer (Pentium IV Processor) 1 50000 50000
Course/Wales checker 1 15000 15000
Laendro meter 4 50000 50000
Other miscellaneous assets LS 20000 20000
Total 12784000

Other Fixed Assets


Erection and installation 1300000
Electrification 100000
Office furniture 50000
Pre-operative expenses 50000
Total 1500000
Total Fixed Capital 16609000

Working Capital (per month)

Staff and labour Wages



Rate (In Rs.)

Amount (Rs.)

Marketing Manager 1 15000 15000
Mercandiser/Coordinators 1 12000 12000
Sales Officer 1 10000 10000
Accountant/Cashier 1 6000 6000
Computer operator 2 4000 4000
Store-keeper 1 5000 5000
Peons 2 3000 3000
Watchman 2 3000 6000
Production Staff
Production Manager 1 15000 15000
Supervisors 2 6000 12000
Skilled workers 32 4000 128000
Pressing man 8 4500 36000
Unskilled workers 15 3000 45000
Total 300500
Perquisites @ 20% 60100
G. Total 360600

Raw Material (per month)


Qty. in Kgs

Rate/ unit (Rs.)

Amount (Rs.)

Cotton yarn/ Acrylic yarn 6000 180 1080000
Nylon Yarn 1500 300 450000
Elastic Yarn 300 380 114000
Detergent for washing LS   5000
Packing material LS   15000
Total 1664000

Utilities (per month)


Electricity bill 40000
Water Charges 2000
Fuel for generator 10000
Total 52000

Other Contingent Expenses (per month)


Postage/stationery 3000
Repair and maintenance 28000
Transport/travelling charges 5000
Insurance 3000
Telephone Bills 5000
Miscellaneous expenses 5000
Total 49000

Total Recurring Expenses (per month) 2125600
Total Working Capital for 2 months 4251200

Total Capital Investment

Land Machinery and equipmen t 16609000
Working capital for 2 months 4251200
Total 20860200

Machinery Utilisation

Capacity utilisation is considered as 75% of installed capacity. However, it can be improved when the unit reaches its second year of operation. Maximum capacity utilisation can be achieved in third year from the date on which the production is started.

Financial Analysis

Cost of Production (per year)


Recurring expenses 25507200
Depreciation on Building @ 5 % 116250
Depreciation on machinery @ 10% 1278400
Depreciation on office furniture @ 20% 10000
Interest on total investment @ 14% 2920428
Total 29832278

Turnover (per year) (Sales)



Rate/Dz Pair (Rs.)

Amount (Rs.)

Plain Socks (Doz. pairs) 90000 198 17820000
Terry Socks (Doz. pairs) 60000 276 16560000
Total 34380000
Net Profit (per year) 4547722
Net Profit Ratio (Net profit/Turnover per year) 13.23%
Rate of Return on Investment (Net Profit/Total Capital Investment) 21.8%

Break-even Point

Fixed Cost


Depreciation 1404650
Interest on capital investment 2920428
40% of wages of staff and labour 1730880
40% of other expenses 220800
Insurance 36000
Total 6312758

B.E.P. FC×100
= 58.13%

Addresses of Machinery and Equipment Suppliers

  • M/s. Vishit Synthetics (P) Ltd.
    Saritaderahan, Opp. Jaihind
    Press, Ashram Road,
  • M/s. Meghaylen Synthetics Pvt. Ltd.
    10, Jasvillem, IIIrd Floor,
    9, New Marine Lines,
  • M/s. Crompton Pvt. Ltd.
    29, Chitalsar Nagpada, S.V. Road,
  • M/s. Suryalan Synthetic Inds. (P) Ltd.
    216, Jolly Bhavan,
    10, Sir V. Thackeray Marg.

For further information please contact

Information Manager
TIMEIS Project