Woven Labels

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Production Capacity No specification has been framed so far, for this product. However, the quality is to be maintained as per the requirement of the market by using good quality of yarn.
Quality and Standards Qty. : 14400000 Labels (per annum)
Value: Rs. 7200000
Uploaded on 15th December 2006


Labels are used in every garment industry of Textile and Leather as well as by the tailors to give the identity of the manufacturers and the specifications of the material used. With the increasing awareness of the consumer towards the better quality product and feeling the brand consciousness, this has become a neacessity for the garment manufactuers and the tailors.

Market Potential

There are very few units in the State which are engaged in manufacturing lables. These labels are required by each and every type of garment manufacturing unit as well as leather products. Due to the increase in the production of garments, the demand of labels is also being increased day-by day. The export of readymade garments to different countries has also been increased. Still there is a gap of supply of labels to the manufacturing units. There is good scope if some units come forward for manufacturing of labels.

Basis and Presumptions

  • The scheme has been prepared on the basis of 75% efficiency on single shift considering 25 working days in a month.
  • The rate of 12% interest in the scheme has been worked out on the basis of 12% on an average however, this figure is likely to vary depending on the financial out-lay of the project as well as location of the unit.
  • The break-even point in the scheme has been calculated on the full capacity utilization basis.
  • The cost of machinery and equipment as indicated are approximate which are fuling locally at the time of preparation of the scheme when a tailor cut project profile is prepared, necessary changes are to be made.
  • The rate quoted in respect of salaries and wages for workers and others are the minimum rates in the State, neighbouring states.
  • Margin money required is minimum 30% of the Projected investment.
  • After the initial gestation period of one and half year, it will require approximately 4 years to pay back the loans.
  • Working capital for 3 months has been taken into consideration for smooth running of the project.

Implementation Schedule



Preparation of the Project Report:
a) Calling quotations
b) Preparation of Project report

1 month
2 weeks
Provisional registration as SSI unit 1 week
Financial arrangements 3 months
There is no need for Pollution Control equipment. Even then NOC from Pollution Control Board is required 3 months
Installation of machines and equipments 2 months
Electrification 1 month
Recruitment of staff and workers 2 months

Technical Aspects

Process of Manufacture

The main raw material required to manufacture Labels is Polyester Yarn/ Silkyarn/Cotton yarn/Viscose yarn/ Blended yarn of different counts and colours. The yarn normally comes in the market on cones, from these cones warp is made on warping machine. The design which is required to be produced is punched through punching machine on card. Some people use few ends of Jari yarn to enhance beauty of the label. The width of the label depends from one inch to two inches. Accordingly, the warp is made and the yarn is inserted to shuttle for weaving the labels in a continous length. These labels are checked and packed for marketing to the garment manufacturers.

Quality Control and Standards

The Bureau of Indian Standards has not brought out any specifications for labels. Labels are manufactured as per the customer design and selection of material. So far, no unit is adopting any quality standard for this purpose. However, quality of the woven labels depends upon the materials use and the fast colour of the yarn used for manufacturing woven labels.

Production Capacity

(per annum)

Quantity 1,44,00,000 Labels
Value Rs. 37,44,000-00

Motive Power

20 H.P.

Pollution Control

No effluents are required, since the process involves weaving of yarn into woven labels. So, there is no requirement of installation of effluent plant.

Energy Conservation

Energy Conservation has become essential in these days. It becomes the individuals duties to realise its necessity.

Financial Aspects

Fixed Capital

Land and Building Value (Rs.)
Rented 500 sq. mtr @ Rs. 100 sq.mtr. 50,000

Machinery and Equipments



Rate (Rs.)

Amount (Rs.)

Reel Winder 8 spindle. 1 30000 30000
Pirn winder 8" 1 40000 40000
Beam winding M/c Warping) 1 30000 30000
Woven Labels making machine with Jacquard 8 150000 1020000
Creel Stands LS 20000 20000
Card punching and stitching machine 1 60000 60000
Total 1200000

Other Fixed Assets


Electrification and Installation Electric Motors 100000
Furniture and office equipments 200000
G.Total 1500000

Working Capital (per month)

Staff and Labour (per month)

Staff and Labour (per month)


Administrative and Supervisory
Manager 1 12000 12000
Supervisor/Accountant 6 6000 6000
Peon/Watchman 3 3500 10500
Skilled/Unskilled Worker
Operators for label making machines 4 5000 5000
Skilled/Unskilled Worker
Operators (Real winder pirn winder/Beam winder) 3 5000 15000
Helpers 2 3000 6000
Total 69500
Perquisites @ 22% 15290
Total 84790
Say 85000

Raw Material (per month)

Qty (mts.)

Amount (Rs.)

Polyester yarn III denier 600 kg. @300 180000
Viscose yarn 120 denir 200 kg. @250 50000
Total 230000

Note : Woven Labels are also made out of cotton, silk and nylon yarn. For calculations purpose, we have mentioned here Polyester and viscose yarn.

Utilities (per month)


Power and Electricity 20000

Other Contingent Expenses


Rent 50000
Postage and stationery 2500
Repair and maintenance 3000
Telephone 5000
Transportation charges/cartage 15000
Insurance 5000
Office expenditure 30000
Packing expenses 7500
Sales & Marketing Expenses 5000
Total 123000

Working Capital (per month)


Staff and Labour 85000
Raw material 230000
Utilities 20000
Other expenditure 123000
Total 123000
Total Working Capital for 3 months = 458000 x 3 = Rs. 1374000

Total Capital Investment

Machinery and Equipments Rs.1500000
Total working capital for 3 months Rs. 1374000
Total Rs. 2874000

Financial Analysis

Cost of Production (per annum)


Raw Material 2760000
Staff and Labour 1020000
Utilities 240000
Other contingent expenses 1476000
Depreciation on Machinery @ 10% 120000
Interest on total investment @ 12% 344880
Depreciation on Office furniture. 40000
Total 6000880

Turnover (per annum)


By sale of : 1,44,00,000 Labels @ Rs. 500 per thousand 7200000

Net Profit (per year)


Profit = Sales - Production Cost
= 7200000-6000880


Net Profit Ratio


Net Profit per year ×100

Turn over per year

1199120 ×100



Net Rate of Return


Net Profit per year ×100

Total Investment




Break-even Point

Fixed Cost


40% of salaries 408000
40% of utilities 96000
40% of other expenditure 2198400
Depreciation on machinery 120000
Depreciation on office furniture 40000
Interest on total investment  
Total 2862400
B.E.P Fixed Cost ×100
Fixed Cost + Profit


= 72.2%

Addresses of Machinery Manufacturers and Suppliers

  • M/s. Nota Machinery Works
    Industrial Area-A,
    Ghorrawali Factory,
  • M/s. Nota Machinery Corporation
  • M/s. Hamdard Textile Engineers
  • M/s. Guru Nanak Textile
    Machinery Manufacturers
    G.T. Road,
  • M/s. Nanak Chand and Sons
    Ganesh Nagar,
    St. No. 3, Link Road,

Raw Material Manufacturers and Suppliers

  • M/s. J.C.T. Ltd.
    Phagwara (Punjab).
  • M/s. Modi Cone Ltd.
  • M/s. Esslon Synthetics Ltd.
    Dakshineshwar Building,
    10-Hailey Road,
    New Delhi.
  • M/s. Shree Shyam Filaments
    15/17, Barwar House,
    Ajmer Road,
  • M/s. Rajasthan Patro Synthetics Ltd.
    4, Community Centre,
    East of Kailash,
  • M/s. J.K. Synthetics Ltd.
  • M/s. Vardhman Spinning and General Mills Ltd.
    Samrala Road,
  • M/s. Mahavir Spinning and
    General Mills Ltd.
    Hoshiarpur (Punjab)
  • M/s. Govindwal Cooperative Spinning Mills.
    Goindwal Sahib,
    Amritsar (Punjab)

For further information please contact

Information Manager
TIMEIS Project
E-mail: timeis@ficci.com