Cotton Lycra (Spandex) Knitted Wears
| 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 |
Introduction
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
Activity |
Period |
| Preparation of Project Report | |
|
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)
Item |
Qty. |
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 sq.mt. |
| Building Area | Store (Raw material) Store (Finished goods) Total covered area Total construction cost Rs. 3000/sq.mt. |
50 sq.mt. 50 sq.mt. 300 sq.mt. 9,00,000 |
| Total investment in land and building. | 1500000 | |
Machinery and Equipments
Description of Machines |
Qty. |
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)
Personnel
Description of Machines |
Qty. |
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
Particulars |
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) |
(Rs.) |
| Power, Water charges | 7000 |
Other Contingent Expenses (per month) |
(Rs.) |
| 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) |
(Rs.) |
| 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) |
(Rs.) |
| 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)
Item |
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)
| Profit | Sale – Production Cost 953389 |
Net Profit Ratio
Net Profit × 100 Turn over per year 7.02 |
Rate of Return
Net Profit × 100 Total Investment 22.93 |
Break-even Point (% of Total Production Envisaged)
Fixed Cost (per year) |
(Rs.) |
| 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,
Ludhiana. - M/s. Superfine Knitters Ltd.
269, Industrial Area,
Ludhiana. - M/s. Sharmanji Fabric
Bhadur Ke Road,
Near Dana Mandi,
Ludhiana.
Sewing Thread/Elastic Tapes
- M/s. Vardhman Spinning and
General Mills Ltd.
Chandigarh Road,
Ludhiana. - M/s. Coats India Ltd.
144, M.G. Road,
Bangalore. - 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,
Sector-8,Rohini,
New Delhi
For further information please contact
Information Manager
TIMEIS Project
E-mail: timeis@ficci.com
