NSIC

Project Profiles

READYMADE GARMENTS MANUFACTURING

1. INTRODUCTION
The busines of ready made garments is increasing day by day due to changesof
fashions in human life. The business is not only in india ,there is bitg export
market . In the RMg sector Jean pants is showing good growth in local and export
market. There are number of branded Ready made garments manufacturing
Units in India. Even though the small scaleunits also survining in the country
because of varities. Besides being one of the favourite attres,jeans have also
gained popularity as a casual wear too. These days several companies are into
the business ofmaking jeans pants and also supplementary items
likebuttons,zips etc..

2. MARKET
The demand for RMg is increasing at around 18-20 % annually in the country.
The popularity of jean pants is good among youth and fashion conscious
public.The domestic market and the export market are growing rapidly and the
unit for manufacturing can be run quite sucessfully if they can tap the market
giving good price and quality.
3. MANUFACTURING PROCESS
The manufacturing procees is depends on skills of the workers . Required cloth to
be cut in to required sizes and design as per the measurements of the latest
designs.Then the required lining ,buton stiching , zip etc. are added to the semi
finished fabric and finished garments is ready for pacling and marketing.
4. PRODUCTION CAPACITY PER ANNUM
Capacity

7200 Pairs per

annum

Selling Price

Rs.

205 Per pair

5. PROJECT COST/CAPITAL INVESTMENT

S.No

Description

1
2
3

Preliminary & Preoperative Expns

Fixed Capital
Working Capital for
Total Project Cost

Amount Rs.

2000
44400
116700
163100

month(s)

6. MEANS OF FINANCE
S.No

1
2
3

Description

Promoter Contribution
Subsidy
Term Loan
Total

%age

Amount Rs.

15%
20%
65%

24465
32620
106015
163100

NSIC

Project Profiles

7. FINANCIAL ASPECTS
A. FIXED CAPITAL
i. Land and Buildings

Rented

2000 per month

ii. Machinery and Equipment

S.No

1
2
3
4
5
6
7

Description

Qty.

Sewing machine
Embroidery machine
Zig zag machine
Other accessories
Iron box, stools etc
Electrification
Wooden racks
Total

4
1
1
1
1
1
1

Rate

3500
6000
8000
5000
5000
3000
3400

Amount Rs.

14000
6000
8000
5000
5000
3000
3400
44400

B. WORKING CAPITAL
i. Salaries & Wages (per month)
S.No

1
2
3

Description

Nos.

Supervisor/Entrepreneur
Skilled
Unskilled
Total

1
3
2

Sal/mon. Amount Rs.

2500
2000
1500

2500
6000
3000
11500

ii. Raw Material (per month)

S.No

1
2
3

Description

Cloth
Buttons, Thread etc
Color cloth
Total

Unit

Qty.

Mtrs
Lum
Lum

600
1
1

Rate

150
6000
3000

Amount Rs.

90000
6000
3000
99000

iii. Utilities (per month)

S.No

1
2

Description

Power
Water

Unit

LS
LS
Total

Amount Rs.

500
200
700

iv. Other Expenses (per month)

S.No

2
4
5

Description

Transportation Expenses
Consumeble Stores
Miscellaneous Expenses
Total

Amount Rs.

1000
500
2000
3500

NSIC

Project Profiles

v. Total Working Capital (per month)

S.No

1
2
3
4
5

Description

Amount Rs.

Rent
Salaries and Wages
Raw Material
Utilities
Other Expenses
Total

2000
11500
99000
700
3500
116700

8. COST OF PRODUCTION (PER ANNUM)

S.No

1
2
3

Description

Amount Rs.

Total Working Capital

Depreciation
Interest
Total

1400400
6660
12722
1419782

@
@

15%
12%

9. TURNOVER (PER YEAR)

S.No

Description

Unit

Qty.

Pairs per annum7200

Rate Rs. Amount Rs.

205

Total

1476000
1476000

10. FIXED COST (PER YEAR)

S.No

1
2
3
4
5

Description

Amount Rs.

Depreciation
Interest
Rent
Salaries & Wages
@ 40%
Other Expenses incl. Utilities @ 40%
Total

6660
12722
24000
55200
20160
118742

11. PROFIT ANALYSIS & RATIOS

1
2
3
4

Net Profit
Percentage of Profit on Sales
Percentage of Return on Investment
Break Even Point

Rs.

56218
4%
34%
68%