Cotton Lycra (Spandex) Knitted Wears

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Product Code There is no specific Code No. for this product but the Code No. 260399000 may be referred, which is for the item of other synthetic knitwears.
Quality and Standards There is no specific BIS specification for this product. However the product may be manufactured as per requirements of the market.
Uploaded on July 2007


This project is for manufacturing of Cotton Lycra knitted wears, such as swim wears, slacks, sportswear and other fashioned wears etc. Spendex (Lycra) is recognised as a natural fibre providing superior fit with no complicated tailoring. With the change in the clotting habits will certainly induce many knitting units to switch over to this type of fabric to manufacture high value fashion garments. Spandex fibre is already very popular in the West because of its elastomatic properties specially for sportswear's. The content ratio of Lycra yarn used with the cotton yarn varies from 5% to 10%.

In this scheme guideline for manufacturing of cotton Lycra knitted wears is given.

Market Potential

Hosiery industry is an ancient industry in the field of textiles and having very good market within India and also in the export market. The garment sector alone has a big share in the India's total export. But this is not to say that the inherent potential has been tapped to the full. India's garment exports to the world market amount to just 2% of the total garment business, besides the large demand by developed and south East Asian countries, Gulf countries have a large demand too. So far the unit manufacturing cotton knitted garments or coming up units having prospective future.

Basis and Presumptions

  • The Project Profile has been prepared on the basis of single shift of 8 hours each day, 25 days in a month and at 75% efficiency.
  • It is presumed that in the 1st year, the capacity utilisation will be 60% followed by 70% in the next year and 80% in the subsequent years.
  • The rates quoted in respect of salaries and wages for skilled workers and others are the minimum rates in the State/ Neighbouring States.
  • Interest rate for fixed and working capital has been taken @ 14% of an average, whether financed by bankers or by Financial Corporation.
  • Margin money required is minimum 30% of the project investment.
  • The Workshed and other built up/covered area has been taken of its own
  • Pay back period of the project is three years after initial gestation period of one and half year.
  • The rates quoted in respect of machines. Equipment and raw materials are those prevailing at the time of preparation of this Project Profile and are likely to vary from supplier to supplier and place to place. When a tailor made project profile is prepared necessary changes are to be made.

Implementation Schedule



Preparation of Project Report
  • Calling quotations
  • Preparation
1 Month
2 Weeks
Provisional Registration as SSI 1 week
Financial Arrangement 3 Months
Purchase and procurement of machines and equipments 2 Months
Installation of Machines 1 month
Electrification 1 month
Recruitment of Staff and Workers. 1 month

Technical Aspects

Process of Manufacture

  • Dyed/Bleached cotton knitted fabric with Lycra procure from the market.
  • Fabric is inspected by laying the fabric on the inspection table against light before cutting so that if any knitting fault or unevenness in the colour, which is visible in that may be marked.
  • Cutting is done on the cutting table by laying the fabric in layers.
  • Stitching is done on different machines as per requirement such as overlocking, flatlock, folding etc.
  • Final checking is done before pressing and packing on the checking table.
  • Finally pieces are pressed and packed in the desirous packing.

Quality Control and Standards

For quality product, inspect the garment for neatness, shape and cleanness finish. Look for oil stains, needle marks, yarn slubs, dropped stitches inaccurate seaming, unevendyeing, holes, cuts etc. Proper care must be taken at the time of selection of fabric, it must be of fine quality. The other required quality control measures are to be taken during production.

Production Capacity (per annum)



Value (Rs.)

Cotton Lycra knitted garments 22500 doz. 1,19,21,000
Motive Power 10 H.P.

Pollution Control

As this industry does not involve any pollution as such, no pollution control measures are required.

Energy Conservation

As the power requirement is small proper house keeping can save it.

Financial Aspects

Fixed Capital

Land and Building Factory shed 300sq. mt.@ Rs 2000 psm. amounting
Rs 600000 200
Building Area Store (Raw material)
Store (Finished goods)
Total covered area
Total construction
cost Rs. 3000/
Total investment in land and building. 1500000

Machinery and Equipments

Description of Machines


Rate(In Rs.)

High speed overlock (four thread) machine with motor (Imported) and stand (power 3 H.P.) 5 250000
Flat folding machine with stand and table (total power 3 H.P.) (imported) 3 210000
Straight knife cutting machine (Power 1/2 H.P.) (Indian) 1 48000
Rib cutting machine with motor stand (1/2 H.P.) (Indian) 2 8000
Sewing machine with motor stand (1 H.P.) (Indian) 2 14000
Scissors Press measuring instrument and other misc. items. LS 10000
Laboratory equipment such as weighing balance magnifying glass, microrscope and other testing equipment and chemicals. L.S. 10000
Erection and electrification charges @ 10%   55000
Cost of office equipment, including Almirah, office furniture, type writer, etc.   50000
Pre-operative Expenses   20000
Total 675000

Working Capital (per month)


Description of Machines


Rate(In Rs.)

Amount(In Rs.)

Supervisor/Manager 1 15000 15000
Accountant (Part Time) 1 3000 3000
Clerk/Store keeper 1 5000 5000
Peon-cum-Chowkidar 2 3250 6500
Skilled Workers 10 4000 40000
Unskilled Worker 5 3250 16250
Total 85750
Add Per-quisites @ 10% of salary 8575
Total 94325

Machinery Utilisation


Qty. (per kg.)

Rate (In Rs.)

Amount(In Rs.)

Dyed/bleached knitted clothes for garments (40s cotton 90% and 40 denier Lycra 10%) 2800 240 672000
Elastic, Zips, Hooks, Buttons, Sticker etc. LS LS 130000
Sewing Thread LS LS 6000
Labels, Size lable, polythene bags, mill board boxes etc. LS LS 55000
Total 863000

Utilities (per month)


Power, Water charges 7000

Other Contingent Expenses (per month)


Repair and Maintenance 1500
Consumables Stores 2000
Stationery/Postage 1000
Transportation Charges 10000
Advertisement and Publicity 10000
Insurance taxes telephone bills etc. 3000
Total 27500

Total Recurring Expenses (per month)


Raw Material 863000
Personnel 94325
Utilities 7000
Other contingent expenses 27500
Total 991825

Working Capital for 2 months 991825 ×2 1983650

Total Capital Investment

Fixed Capital 2175000
Working capital for 2 Months 1983650
Total 4158650

Machinery Utilisation

75% machinery utilisation is considered for achieving the projected target.

Financial Analysis

Cost of Production (per year)


Total recurring cost 11901900
Depreciation on Building @ 5 % 75000
Depreciation on machinery and equipments @ 10% 67500
Interest on total investment @ 14% 582211
Depreciation on office furniture fixtures @ 20% 10000
Total 12636611

Turnover (per year)


Qty. in Doz

Rate (Rs.)/Doz

Welcome to TIMEIS

Cotton Lycra Knitted 1,13,40,000 Garments (such as slacks, swimwear, tides) 22500 604 13590000

Net Profit (per year) (Before Income Tax)


Sale – Production Cost


Net Profit Ratio


Net Profit × 100

Turn over per year


Rate of Return


Net Profit × 100

Total Investment


Break-even Point (% of Total Production Envisaged)

Fixed Cost (per year)


Total Depreciation 152500
Total interest 582211
40% of salary and wages. 452760
40% of other contingent expenses 132000
Total 1319471
B.E.P. Fixed Cost × 100
Fixed cost + Profit

= 58.05%

Addresses of Machinery and Equipment Suppliers

  • M/s. Akal Mechanical Works
    Gali Vakilla,
    Purana Bazar, Ludhiana.
  • M/s. Swaroop Mechanical Works
    Overlock Building,
    Overlock Road, Ludhiana.
  • M/s. Vijay Sewing Pvt. Ltd.
    17-D, Everest House,
    Chaurangi Road, Kolkata.
  • M/s. Rita Mechanical Works Pvt. Ltd.
    416, Industrial Area–A, Ludhiana.

For imported machines Local suppliers may be contacted

Knitted Fabric

  • M/s. Mayfair Fabric
    90–Industrial Area–A,
  • M/s. Superfine Knitters Ltd.
    269, Industrial Area,
  • M/s. Sharmanji Fabric
    Bhadur Ke Road,
    Near Dana Mandi,

Sewing Thread/Elastic Tapes

  • M/s. Vardhman Spinning and
    General Mills Ltd.
    Chandigarh Road,
  • M/s. Coats India Ltd.
    144, M.G. Road,
  • M/s. Modi Threads Ltd.
    Modi Nagar,
    Uttar Pardesh.
  • M/s. D.P. Elastics
    3784, Nai Basti,
    Pahadi Dheeraj, Delhi.
  • M/s. Techno-Elastics
    877, East Park Road,
    Karol Bagh, New Delhi.
  • M/s. M.D.R. Tapes Pvt. Ltd.
    120, Pocket E-15,
    New Delhi

For further information please contact

Information Manager
TIMEIS Project