Draft Detailed Project Report

Proposal for MOU with Government of Sikkim

to Set-Up and Operationalise
Apparel Making Training & Skill Center
in Sikkim

SUBMITTED TO:
The Secretary
Department of Skill Development & Entrepreneurship
Government of Sikkim
Sochaythang
Gangtok - 737102
Sikkim

MONTH & YEAR OF PREPARATION:

September, 2020

PREPARED BY:
Neo Co-Operative Society
DPH Road, Gangtok 737101
Sikkim

EMAIL ADDRESS:
neosikkim@gmail.com
The Secretary
Department of Skill Development & Entrepreneurship
Government of Sikkim
Sochaythang
Gangtok - 737102
Sikkim

Dear Ma'am,

As part of our engagement to provide Detailed Project Report to your esteemed

department for proposal to establish ​Apparel Making Training & Skill Center
(AMTSC) in Sikkim and for designing the project, undertaking the pre-project
activities and providing implementation support during the course, we hereby
submit the Draft Detailed Project Report for setting up of AMTSC for your kind
perusal.

Our work has been limited in scope and time and we stress that more detailed
procedures may reveal other issues not captured here and any perusal and lack of
any component in our report may be communicated to us for any amendment to the
same. The procedures summarized in our Draft Detailed Project Report do not
constitute an audit, a review or other form of assurance in accordance with any
generally accepted auditing, review or other assurance standards.

We appreciate the cooperation and assistance provided to us to present our idea to

your esteemed department.

Thanking you.

Yours sincerely,

Neo Co-Operative Society

DPH Road, Gangtok 737101
Sikkim

2
Abbreviations
AMTSC Apparel Making Training and Skill Center

DDU - GKY Deen Dayal Upadhyaya ​Grameen Kaushalya Yojana

EIA Environmental impact assessment

EHS Environment, Health & Safety

EMS Environmental management system

FDI Foreign Direct Investment

FICCI Federation of Indian Chambers of Commerce & Industry

GDP Gross Domestic Product

GESIP Gender, Equity and Social Inclusion Plan

GM General Manager

GSDP Gross state domestic product

GST Goods and Services Tax

LCA Life cycle assessment

MIC Manufacturing Incubation Centre

MOU Memorandum of Understanding

MSDE Ministry of Skill Development and Entrepreneurship

MSME Micro Small and Medium Enterprises

MTCs Model Training Centres

RMG Resource Management Group

SHG Self Help Group

TC Training Center

3
Contents
Abbreviations 3
Introduction 9
Background 9
Project Rationale 13
Demographic Overview and Challenges 17
Sikkim’s Skill Development Objectives 18
Apparel Making Training & Skill Center (AMTSC) Program 18
Training Center 19
Courses 21
Soft Skills 23
Assessment and Certification 24
Employment Linkages 25
Manufacturing Incubation Centre 25
Post Training Preferential Support 26
Key Indicators to measure AMTSC Program Success 27
Key stakeholders 28
Executive Summary 32
Cooperative & Apparel and Garment Business 35
Neo Cooperative Society, Skill Development AMTSC & Business Model 37
Gender, Equity and Social Inclusion Plan (GESIP) 40
Objective & Approach 41
Market Potential and the Way Forward 43
Institutional Sales and Uniforms 44
Home Furnishing 45
Winter Wear & Outdoor Wear 46
Primary research 50

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Human Resource Development 51
Organisation structure 52
The Manufacturing Process 56
Procurement of Fabric: 56
Cutting and Stitching: 56
Washing, Checking, Pressing and Packing: 57
Quality Control and Standards: 57
Apparel Making 57
Pattern Making Process 58
Pattern Grading 59
Marker making 60
Spreading or Laying 60
Fabric Cutting 61
Bundling - Reassembling cut pieces 63
Sewing Process 64
Common machines used for garment manufacturing 67
Pressing or Folding 70
Finishing and Detailing 71
Quality Control 71
Pre-Production Processes in Garment Manufacturing 74
Textile and Apparel Info graph & Advantage India 78
Clearances Required from Respective Authorities 80
Quality Systems & Standards 82
Infrastructure & Facilities 84
Training Block 84
Garment Manufacturing Block 85
Administrative Block 85

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 Manufacturing Incubation Block 85
Utilities Block 85
Hostel and Staff Accommodation 85

Open Areas 86
Other Areas 86
Expenditure Pattern 87
Civil Construction Cost 87
Details Of Computers & Software 87
Details Of Other Fixed Assets 87
Details Of Preoperative Expenses 88
Details of Contingencies 88
Details Of Plant & Machinery 88
Operating Expenditure 89

Financial analysis 94
Income assumptions 94
Working capital and cash flow statement 95
Projected Balance Sheet 97
Profitability 98
Environment, Health & Safety 99
Planning and Design 99
Environmental and Social Screening 100
Cleaner Production Applications 101
Administrative preventions 101
Better process control 101
Material substitution 101
Equipment modification 101
New process technology 102

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 Reuse/ Recycling 102
Product modification 102
Tools and Methods For Cleaner Production 103
Environmental Impact Assessment (EIA) 103
Environmental Management System (EMS) 103
Life Cycle Assessment (LCA) 103
Environmental Technology Evaluation 103
Chemical Evaluation 104
Waste Inspection 104
Environmental Inspection 104
Eco-label/ Environmental Labeling 104
Water Footprint 104
Carbon Footprint 104
Risk Assessment 105
Basic requirements for EHS management 105
Storm Water Management 105
Fire Risk Management 106
Rain Water Harvesting 107
Sewage Treatment Plant 107
Ventilation system 107
Monitoring 108
Social and Environmental Safeguards 110
The Health Sector 113
Health Status in Sikkim 114
Education 115
Higher Educational Institutes in Sikkim 116
Literacy Rate in Sikkim 116

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 Income 116
Key Risks & Mitigation 118
Risk Strategy & Risk Management Framework 118
Type Of Risks and Mitigation Measures 118
General Risks & Mitigation 119
Operational Risks & Mitigation Measures 120
Connectivity Risks & Mitigation Measures 120
Human Resource Risks & Mitigation Measures 120
Financial Risks & Mitigation Measures 121
Legal Risks & Mitigation Measures 122
Conclusion 123

8
Introduction

Background
The garment industry occupies a unique place in any industrial journey of a country
or state by generating substantial export earnings and creating mass employment.
It is a labour intensive industry and the employment provided by this sector is a
source of livelihood for millions of people around the world. This industry has been
the first bridge of all modern states that have moved from a traditional agrarian
economy to an industrial economy with minimum capital investment and perhaps
the only industry where a person with no formal education and degree can acquire
highly technical skills required to work in the garment industry.

India is the seventh largest economy after the United States, China, Japan,
Germany, UK and France and it has become one of the fastest growing economies
in the world.

Though India lags behind the other emerging economies like Brazil, China, and
Russia etc. in per capita income, nevertheless with the change in the social and
economic framework, India’s per capita income is expected to increase. Also the
middle class population which forms a huge chunk of private consumption is
expected to increase and as per the World Bank population estimates, the
emerging middle class is expected to reach about 60% of the total population of the
country by 2025, thus making India the fifth largest consumer market in the world.

9
India is among the leading textile and apparel manufacturing and exporting
countries in the world. The Indian textile and apparel industry is characterized by its
strong vertical integration with presence in almost all the sub-sectors of the industry
starting from fiber to apparel retail and exports.

India’s capability of producing both natural and man-made fiber based textile and
apparel, its manpower availability coupled with entrepreneurial spirit reflect the
robust ecosystem thus ensuring sustainable long term growth prospects of Indian
textile and apparel sector.

Apparel retail accounts for 7-8% of the total Indian domestic retail market and is
expected to grow at a CAGR (​Compound Annual Growth Rate​) of 10%. The Indian
fashion retail market has witnessed several significant changes in recent years.
One of the significant growth factors is the emergence of e-commerce fashion
businesses which has witnessed high growth rates in the last couple of years. With
increasing FDI & disposable income, growing middle class and private consumption
of 59.6% of the GDP, the apparel market is likely to grow over the years. Along with
the domestic market, apparel exports have shown significant growth over the past
five years.

Manufacturing has long been recognised as an essential driver of economic

development for most countries, as it has an important economic and employment
multiplier effect. The manufacturing sector will have to play an important role to
take Indian economy to a high growth rate trajectory and achieve the planned
objectives. Micro Small and Medium Enterprises (MSME) play an essential role in
the overall industrial economy of the country and account for over 45% of India’s
manufacturing output.

The garment industry of India is considered to be one of the largest scale industries
of the country employing nearly about 8 million dedicated workers. Most of the
workers employed in the Indian garment manufacturer industry are women and
mainly contribute about 4% of the GDP of India. While India is among the leading
textile and apparel manufacturing and exporting countries in the world, Sikkim on
the other hand as an associate state does not feature at all in the apparel
manufacturing industry of India.

Sikkim has traditionally been an agrarian economy and moved towards a service
oriented economy in the past few decades in the form of mass employment with the
Government of Sikkim and also lately, the Tourism and Hospitality sector. The
manufacturing sector in Sikkim is very limited apart from a few pharmaceutical,
distillery & brewery units and the apparel manufacturing industry is non prevalent in
the state.

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Post Covid 19 scenario, there will be a need to set up many MSMEs related to
manufacturing to absorb many unemployed youth of Sikkim as many will prefer to
be productive at home rather than move out of the state for employment.

This project report is prepared for the setting up of a proposed Apparel Making
Training & Skill Center (AMTSC) by Neo Cooperative Society, with an MOU with
the Government of Sikkim to provide skilled and future employment and absorb
Sikkimese youth in this vocation at par with top industry standards around the
country. It is our dream and desire to bring Sikkim in the international map of
quality apparel manufacture in the very near future if given the support as sought
by us within a cooperative structure set up that would be inclusive and democratic.

An ​Apparel Making Training & Skill Center (AMTSC) as envisioned will act as
a catalyst to train and develop a skilled workforce needed to set up future MSMEs
related to Apparel and Garment manufacturing Sikkim and subsequently absorb the
trained workforce without having to go elsewhere. This industry will be ideal for
Sikkim in these times of reverse migration.

We have imagined this novel idea in Sikkim to be realised through an organised

cooperative society. There are many exemplary examples worldwide wherein
successful cooperatives exist along the supply chain of apparel and garment
manufacturing. From growing fibres, manufacturing and commercialisation, to the
consumption and recycling of textiles, cooperatives have been serving various
social and economic needs of people directly or indirectly linked to the garment
industry. As democratic, membership-based organizations, cooperatives have
presented socially and environmentally sustainable alternatives and ethical

11
sourcing for producers and consumers of garments.

Cooperatives are instrumental in generating income, creating employment,

advancing formalization of the informal economy and promoting decent work
particularly in the lower tiers of the supply chains, where informality and decent
work deficits are most prominent. The trainees joining the cooperative as members
post their skill development in Sikkim can benefit collectively being a part of a larger
cooperative society from economies of scale, access inputs, share equipment and
space, develop market linkages and increase their bargaining power with public
and private sector actors and allowing them to advance toward decent work as
cooperative members.

Given the voluntary and open membership of cooperatives, they can play a key role
in social and economic inclusion of marginalized and vulnerable populations, such
as low income women, unemployed youth, indigenous peoples, ethnic minorities,
displaced persons, persons with disabilities and transgenders among others.

Cooperatives also have a proven record of being catalysts for women’s

empowerment, not only because they provide women with the opportunity to enter
the labour market with improved conditions, but also because they facilitate access
to and/or provide care services and education for children, reducing time and effort
allocated to family responsibilities.

The Cooperative will also be actively be engaging with SHGs and Clusters in
home-based workers as part of the value chain in a network of intermediaries in
subcontracting and thereby improving the quality, standard and skills of everybody
down the value chain in the long term. The process will involve home based
workers usually being given the raw materials and paid on a piece-rate basis. They
cover many costs of production themselves –
workplace, rent, electricity, equipment, supplies,
utilities, storage and transport fees to name a few
but beneficial to them as they could tend to their
family matters easily while working from home.

This is in sync with the vision and policy of our

Hon’ble Chief Minister, Mr P S Golay, to ​allot
maximum opportunities to the Self Help Groups
(SHG) and Cooperatives in the value chain
especially with school uniform production and
empowering them to a better livelihood and skilled
self employment opportunities in Sikkim.

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Project Rationale
We believe that vocational training is the key tool to transform Sikkim towards
industrial apparel manufacturing. We envision and aspire to have a pool of trained
and skilled manpower in Sikkim in the coming years which is needed for Sikkim to
manufacture quality garments to compete with the rest of the garment
manufacturing hubs regionally, nationally and internationally. To train the youth into
a lucrative and steady career path we need to skill them in the latest garment
making technology as per modern industry standards internationally.

Neo Cooperative Society solicits support from the Government of Sikkim in the
form of a MOU to set up an Apparel Making Training & Skill Center (AMTSC) to
realise the above mentioned objectives along with available resources to start ups
within the North East Industrial Development Scheme (NEIDS) 2017, Chief
Ministers Start Up Scheme, DDU - GKY and other schemes & grants available
under MSDE.

We have listed the path of the program briefly as a rationale to the project idea as:

Training Centres and Infrastructure

Setting up a Training Center and allied infrastructure requirement is paramount to

the whole project. However, if any existing infrastructure is available, then it will not
envisage construction of any new buildings for the purpose of implementation of
this programme to set up the training academy and workshop.

Our envisioned training centre Apparel Making Training and Skill Center (AMTSC )
is intended to be established as a visible Model Training Centre (MTCs) equipped
with state of art machinery and teaching aids under guidelines of Apparel Lab
Specifications under Pradhan Mantri Kaushal Kendra Scheme of Ministry of Skill

13
Development and Entrepreneurship ( MSDE )

Trainers

The AMTSC management will be headed by a General Manager and with a team of
trainers with various skill sets. Experienced trainers will be sourced from the
industry and AMTSC will aspire to implement best practices. Essential linkages to
experienced and well known names and reputable resource persons from different
fields in the industry via training and seminars will be part of the training program.

The curriculum will encompass not just theory but practical training and internship
also.

Mobilisation and Selection of Trainees

One of the challenges of the programme will be to identify the youth who are willing
to undergo training and work in the industry. The trainees will be identified and
selected to meet the requirements of the industry. The program shall adopt a
comprehensive strategy for such mobilization of the trainees.

We intend to work with the department, local self government and other
stakeholders to reach this segment via :

A. Database of unemployed candidates with the Department of Skill

Development and Entrepreneurship, Government of Sikkim.

B. Recommendations from Area MLAs, Panchayats and NGOs.

C. Applications received from Print advertisements in local relevant

newspapers.

D. Applications received from Social Media Advertisements

While selecting candidates to train, we will consider what will be expected of them
in their role once they qualify to train. Criterias like language, past learning
achievements, location, gender would be considered including attitudes like
compassion, patience and the ability to work as part of a team to suit the role.

The criteria for selection will be clearly explained before inviting candidates to
apply. Selection will be unbiased and designed to find the best candidate. It will be
done based on candidates' curriculum vitae, simple written or practical exercises to
identify existing knowledge and skills (e.g. testing visual acuity), and observation of
the candidate to assess their attitude.

Preference will be given to marginalised social groups like women, differently abled

14
persons, transgenders, minorities and persons from the BPL category.

Content

The content for each of the skill sets shall be need-based to meet the highest
standards and requirements of the apparel and garment industry segment. Use of
multimedia content and other applications of Information Technology (IT) would be
encouraged.

Soft Skills

In addition to the targeted domain specific hard skills, the programme shall also aim
at imparting Soft Skills to the trainees.

Assessment and Certification

Scientific criterion would be evolved by empanelled assessment agencies for

assessing the proficiency of skills of the trainees based on the standards used by
the related industry segment.

Employment Linkages

One of the key outcomes of the programme is the number of trainees who are
successfully engaged in the related occupations after the training.The program
would take all steps to partner with industry and obtain the commitment of industry
to absorb successfully trained candidates.

Post Training Preferential Support

The AMTSC is committed to absorbing as many candidates within the unit. To

provide placement and absorb the candidates into employment, we have to ensure
the manufacturing unit achieves higher turnover every year.

Manufacturing Uniforms in the first phase of production will be key to sustain the
business and we expect preferential support from the Government of Sikkim.
AMTSC aspires to provide quality products to various departments like the
Department of Human Resource Development, Department of Health & Family
Welfare, Sikkim Police, Department of Commerce & Industries for their requirement
of uniforms

Coming together of the above mentioned stakeholders also provides the basis for
collective bargaining and sound labour relations with the objective to arrive at a
collective agreement that regulates terms and conditions of employment, and

15
addressing the relationship between the parties, thus ensuring harmonious and
productive manufacturing industries and workplaces. Enhancing the inclusiveness
of collective bargaining and collective agreements, representation and leadership
will be our principle and key means for reducing inequality and extending labour
protection to skilled trainees from this program.

Production towards self sustenance and income generation for AMTSC

AMTSC has a vision of being self-sufficient in manufacturing and marketing of

Ready Made Garments in 3 years time. While the unit will continue to provide
quality uniforms to the various departments and institutions, we intend to move to
the second phase of production of Winter Wear, Sports & Outdoor Wear and Home
Furnishings. The AMTSC will tie up with distributors for RMG in North East India as
well as export houses for Home Furnishing.

A. The AMTSC intends to develop a home grown brand for Winter Wear,
Fleece Jackets , Sports and Lounge wear through retail or online channels.

B. Develop an upmarket and niche home furnishing product line with traditional
Sikkimese and Regional weaves and for the international market.

C. The finished products will be sold to the government departments,

institutions, modern retail outlets, e-commerce sites and to wholesalers in
the region to eventually allow this novel project in Sikkim to be self
16
 sustainable and earn export revenue for the state apart from the primary
objective of providing meaningful and skilled long term employment and
profit for the cooperative society and its members.

Demographic Overview and Challenges

While India stands to benefit from an immense demographic dividend, with the
largest youth population in the world (around 66 percent of the total population is
under the age of 35), it has an overall employment rate of 4.7 percent (under usual
principal status approach) and an overall labour force participation rate of 50.9
percent.

Sikkim with an official population of about 6.5 lakhs reported an unemployment

rate of 2.3% in Apr 2020, according to a survey conducted by the Centre for
Monitoring Indian Economy (CMIE). It is very high in relation to its small population.
As per the official government unemployment data provided by the Directorate of
Economics, Statistics & Monitoring and Evaluation (DESME), Sikkim, with 158
unemployed per 1000 people, has the one the highest unemployment rate in the
country too.

The sectoral share of workforce in Sikkim in the manufacturing sector is just 4.8
compared to the national average of 12.6 as per the unemployment survey of
NSSO and NLI research studies series.

While this trend is worrying due to lack of SMEs and opportunities in the

17
manufacturing sector, the state however has a large youth population along with
established gender parity and equality and whom if skilled and opportunities
available within the state; could drive the growth for the state in the coming
decades apart from already established tourism and pharmaceutical industry.

For the state to gain from this demographic dividend, skilling and up-skilling its
youth are key priorities for the Government of Sikkim and its efforts in that direction
have been commendable.

Global experience shows that a workforce with higher skill levels leads to higher
productivity and personal income. Returns on existing vocational and skill training
programs in Sikkim have shown higher firm-level productivity.

The apparel and garment manufacturing industry, while requiring a highly skilled
workforce , is also an industry where a person with no formal education and degree
can acquire highly technical skills required to work there.

Sikkim’s Skill Development Objectives

To realise the potential of the skill development in Sikkim for promotion of self
employment among its youth, the Government of Sikkim established “The Skill
Development & Entrepreneurship Department” in September 2015 with the aim and
objective to evolve an appropriate skill development framework in creating
opportunities and scope for the youth of Sikkim to facilitate and produce skilled
manpower through vocational and technical training, skill up-gradation and skill
mapping of existing skills with proper certifications.

The establishment of a full-fledged State Institute of Capacity Building at Karfectar,

Jorethang with the purpose of imparting training, transfer of knowledge and building
stronger capacities of the unemployed youth is perceived with a visionary intent.

Apparel Making Training & Skill Center (AMTSC)

Program
The AMTSC Program as envisioned and coined by Neo Cooperative Society seeks
to enhance the technological and skill base of selected trainees in apparel and
garment manufacturing to produce apparel and garments as per international
standards. AMTSC will have as its mission to bring modern apparel manufacturing
in Sikkim and improve the competitiveness of its trained and skilled trainees at par
with national and international standards.

This will be achieved by providing an integrated suite of services related to skill and

18
training and providing them access to technology, skills, qualified resource persons
and access to business advisory services. AMTSC will reinforce the technical
capability as well as their performance, by further increasing their participation in
the private sector in the form of further training and post training evaluation and
absorption for eventual employment.

Training Center

The AMTSC training centre will include state of the art and industry standard
training facilities needed to equip trainees in the latest skills required in the
competitive industry. The training Center will be equipped with the following
infrastructure & facilities:

DEPARTMENTS Area ( Sqft)

Classrooms ( 5 Nos) 5,000
Design Lab 1,000
Meeting Room 500
Admin Office 1,000
Lobby and Common Area 5,000
Store Room 10,000
Laundry and Water Storage 5,000
Hostel Facility 5,000
Housing for Trainers 5,000
Generator Backup - 500 Kva 200
Kitchen & Pantry Area 2000

19
Area (sqft) Infrastructure & Facilities

20
Courses

AMTSC program courses will include long & short term training programs in the
areas of Design, Production, Production Management and Quality Control &
Standards. The apparel and garment industry needs different skills to operate
different machineries and genres of clothing manufacturing.

Production management is a process of planning, organizing, directing, and

controlling the activities of the production function. Thus the objective of production
management is related to being able to determine the Right quality, Right quantity,
Predetermined time and Pre-established cost (manufacturing cost).

The activities of production must fulfill the activities that include production of goods
at the right time and in sufficient quantity to meet the demand, production of goods
at minimum possible cost and production of goods of acceptable quality.

The training Program will also include customised programs for specialised
product-wise manufacturing offering.

AMTSC will provide the infrastructure and manpower for an in-house design lab of
apparel design and sample making.

The following courses will be offered by AMTSC for various skills needed to
operate the machinery mentioned below:

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AMTSC Long Term Diploma & Certificate Programmes

Essential/  Duration – 
Course 
S.No  Course name  minimum  Hours/  Fees (Rs) 
Type 
Qualification  Months 

Fashion Design 1040 Hrs/

1 Diploma 12th Pass 45000
Technology (FDT) 1 Years

Apparel
1040 Hrs/
2 Manufacturing Diploma 12th Pass 45000
1 Years
Technology (AMT)

Production 720 Hrs/

3 Certificate 10th Pass 32500
Supervisor- Sewing 9 Months

720 Hrs/ Spon.

4 Fashion Designer Certificate 12th Pass
9 Months FOC

720 Hrs/
5 Pattern Master Certificate 10th Pass 32500
9 Months

720 Hrs/
6 QC Executive Certificate 12th Pass 32500
9 Months

AVI Short Term Certificate Programmes

Essential /  Duration – 
Course 
S.No  Course name  minimum  Hours  Fees 
Type 
Qualification  /Months 

360+60
Sampling
1 Certificate 10th Pass Hrs/ 18000
Coordinator/GCT
4 Months

Machine 540+60
2 Certificate 10th Pass 25500
Maintenance/ Hrs/

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 Mechanic Sewing 6 Months
Machines

270+60
Sewing Machine Spon.
3 Certificate 5th Pass Hrs/
Operator (SMO) FOC
3 Months

360+60
Spon.
4 In-Line Checker Certificate 10th Pass Hrs/
FOC
4 Months

340+60
Self Employed Tailor Spon.
5 Certificate 8th Pass Hrs/
(SET) FOC
4 Months

Soft Skills

Apart from technical skills, AMTSC will also impart soft skills to all trainees.

Soft skills are personal attributes that influence how well you can work or interact
with others.

These skills make it easier to form relationships with people, create trust and
dependability, and lead teams.

Soft skills are the people skills, personality skills, and communication abilities your
workforce needs for the long-term success of your organization.

Almost every job requires employees to engage with others, either inside or outside
of your organization, making these skills something not to be overlooked.

Soft skills are a cluster of productive personality traits that characterize one's
relationships in a milieu.

These skills can include social graces, communication abilities, language skills,
personal habits, cognitive or emotional empathy, time management, teamwork and
leadership traits.

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Soft Skills module training will include:

Communication Skills, Presentation Skills, Team Skills, Leadership Skills,

Customer Service Skills, Time Management Skills, Job Interview Skills,
Self-Motivation, Leadership, Responsibility, Teamwork, Problem Solving,
Decisiveness and Ability to Work Under Pressure.

Assessment and Certification

On completion of basic and advanced modules training, skill development and

internship, AMTSC shall offer certifications upon successful completion of the
training program . The training program shall be conducted as per ISO 29990
standards.

For quality professional practice, 

Learning services for  performance and enhance transparency 
ISO 29990  non-formal education and 
training  Allows for comparison on a worldwide basis 
of learning services, and management 
  standards in the field of non formal learning 

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Employment Linkages

Post-training AMTSC will link with industry in the provision of a structured and
formal vocational placement service with a variety of skilled trainees to now engage
and be employed and absorbed with local SHGs, Clusters and MSMEs
(Local/Regional/National) engaged in Apparel and Garment production. The
assessed and certified trainees under the program will be assisted and guided by
Placement Coordinators who will have the task of locating ongoing placement
hubs, explaining to employers the training given to pass out trainees, and
establishing guidelines for assessment and reporting on progress of placed
trainees.The key motivation for the trainees will be is quality and skilled
employment.

The placement cell in AMTSC shall also interact with the industry associations like
CMAI (Clothing Manufacturers Association of India), ASSOCHAM, FICCCI
including organised industrial apparel clusters all over the country.

Manufacturing Incubation Centre

A MIC will be an integral part of the proposed AMTSC. The MIC will include a
leased world class manufacturing plant and machinery on rental basis for a 5 year
period . The MIC is expected to fuel the growth of enterprises to immediately
employ and absorb the skilled trainees and be ready to work in a professional set
up ready to execute industry specific orders.

25
The MIC would provide shell infrastructure, support business facilities, IT support
and assist with consultancy and be an incubation center for future entrepreneurs
thinking of setting up apparel and garment manufacturing start ups and also help
connect with suppliers and skilled workers.

The MIC will also engage and provide consultancy to SHG and clusters and home
based workers though the cooperative membership drive as part of its forward
Linkages and support as part of the value chain in the form of better access to
technology and business advisory services.

Post Training Preferential Support

The AMTSC will also help create and support apparel clusters and SHGs across
Sikkim to be a part of the manufacturing value chain both upstream (MMF fabric
manufacturing) and downstream (designs, marketing, branding). AMTSC’s
Program Development Objective is envisioned to enhance the competitiveness of
our Cooperative model of MSMEs along with value chain partners in apparel
clusters and SHGs by improving their access to technology and business advisory
services through systems of financially sustainable business models.

This program will create an ecosystem to help MSMEs and SHG to engage in the
apparel and garment manufacturing business and to become more competitive by
acquiring improved technology and employing better skilled workers. This will be
done directly through the services provided to them by AMTSC, as well as indirectly
through the linkages with larger firms . The AMTSC’s will contribute by providing

26
inputs to prospective future MSMEs and SHG working on apparel and garment
manufacturing with technology & business advisory and by improving the skills of
workers/ skill seekers for better employment opportunities.The competitiveness of
the envisioned proposed idea is impacted by various factors such as
entrepreneurial drive of the cooperative members, market and customer dynamics,
their access to technology, finance & business advisory and availability of skill
manpower.

Key Indicators to measure AMTSC Program Success

The AMTSC will shape the outcomes of the program so as to make it possible to
measure the success of this program with the key indicators that will be measured
are:

1 Number of trainees skilled to render it with placement services.

2 Number of trainees trained (direct program beneficiary)

3 External trainers trained with newly developed contents.

No of trainees ( especially women, persons with disabilities and transgenders

4
backgrounds, displaced persons and disadvantaged sections of society)

5 Number of skills development contents

6 Developed and adopted by industry associations, and/or certifying agencies

Number of long term trainees employed by industry, including MSMEs, within six
7
months after being trained at AMTSC

8 No. of trainees trained in Long term & Short term training programme

No. of courses identified which are suitable for women employment & courses
9
designed

10 AMTSC gross profit before depreciation (not including land)

11 Access to Technology

12 Capacity utilization of AMTSC infrastructure

Number of technology strategies/roadmaps developed by AMTSC under guidelines

13 under the Skill India Program and Department of Skill Development &
Entrepreneurship

27
Key stakeholders
AMTSC will require multiple stakeholders to enhance local competitiveness to skill
trainees as per latest industry trends.We intend to upskill trainees by improving
their access to technology and business advisory services. through systems of
financially sustainable Training Centres.

Post training, the support of the Government of Sikkim in a preferential support

access in the form of its many departments procuring apparel for distribution under
its many social schemes is sought. This will immensely help and support the
nascent MSMEs employing and absorbing the skilled workforce by procuring the
manufactured products from units associated with AMSTC.

Apart from the government departments, SHGs and Clusters could associate and
collaborate in procurement, training and part manufacture with AMTSC within the
value chain.

Other stakeholders post the initial phase would be multiple other concerns related
to the apparel and garment industry like MSMEs, and other collaborations with
Industry associations like sourcing agencies, apparel brands, export houses and
others will have an opportunity to source skilled workforce and needed to realise
their goals and even source manufactured products as production under license
from their registered trademarks and branding line.

The key stakeholders in the program will include:

S.NO  STAKEHOLDER  ENGAGEMENT  

1 Department of Skill  The program would be designed and implemented under the
Development &  aegis of the Department of Skill Development &
Entrepreneurship -  Entrepreneurship, Government of Sikkim. The department has
Government of Sikkim the mandate to support this scheme with an MOU with Neo
Cooperative Society in setting up AMTSC to serve this purpose.

Apparel Making Training and Skill Center (AMTSC) - The

AMTSC will serve as the nodal point for MSMEs and SHG post
training and skill development with an integrated suite of
services ranging from providing them access to technology,
access to skills and access to business advisory services.

28
2 Apparel Making  The AMTSC will serve as the nodal point for MSMEs/
Training and Skill  SHGs/Clusters post training and skill development with an
Center (AMTSC)  integrated suite of services ranging from providing them access
to technology, access to skills and access to business advisory
services.

3 Department of  The Department of Commerce & Industries, Government of

Industry & Commerce  Sikkim has formulated policies over the years to support
- Government of  entrepreneurship in the guise of incentives/ subsidies viz.,
Sikkim  Excise Duty exemption, Income Tax exemption, Capital
Investment Subsidy, Interest Subsidy under NORTH EAST
INDUSTRIAL DEVELOPMENT SCHEME (NEIDS), 2017 and
also other incentives GST reimbursement, stamp duty
reimbursement, digital upgradation subsidy, lease rental
reimbursement, power subsidy, reimbursement on patent filing
cost, incentives for hiring women, differently abled and trans
genders, marketing and promoting expense, preferential
market access, self - certificate & compliance under the Chief
Minister’s Start up Scheme.

4 MSME & SHG Units  MSMEs, SHGs and Clusters in home-based workers
collaborating and engaging with AMSTC as part of the value
chain in a network of intermediaries will be the prime
beneficiaries of the program. The overall objective of AMSTC
providing them with access to learning skills or employing a
skilled workforce strengthens the Cooperative idea envisioned.
Forward Linkages and support as part of the value chain will be
beneficial in the form of better access to technology and
business advisory services.

5 Department of HRDD,  The Department of HRDD, Government of Sikkim is accorded

Government of Sikkim  the highest priority by the Government of Sikkim by providing an
outlay of almost 20% of the State’s annual plan budget. Sikkim
ranks well in the national ranking on elementary education
based on the four parameters of Accessibility, Infrastructure,
Teacher and Outcome.
The government provides free school bags, uniforms, shoes,
books, socks and even raincoats for all students till class VIII.
School uniforms items annually distributed include pants, shirt,
skirts, tunic & bakhu set.
The support of the Department of HRDD in a preferential
support access in the form of its many departments procuring
apparel for distribution under its annual scheme to support the
nascent industry could prove beneficial and also help the

29
 MSMEs in Sikkim produce finished manufactured uniforms with
quality prescribed by the department.

6 Sikkim Police   The Police Central Stores section for Uniform articles procures,
stores, and distributes police uniforms in the approved design,
colour and quality. The support of the Sikkim Police in a
preferential support access in the form of procuring uniforms by
its Central Stores could prove beneficial and also help and
support MSMEs and SHG engaging with AMTSC

7 Department of Health  The Department of Health & Family Welfare, Government under
& Family Welfare,  its clinical established rules and regulations procures, stores,
Government of Sikkim   and distributes clinical uniforms in use in hospitals and health
centers in the approved design, colour and quality. The support
of the department in a preferential support access in the form of
procuring clinical uniforms could prove beneficial and also help
and support MSMEs and SHG engaging with AMTSC in
producing the said uniforms as per the quality and standards
prescribed.

8 Department of Labour,  The Department of Labour, Government of Sikkim ensures

Government of Sikkim   cordial relation between employers and employees, to provide
job securities, good hygienic conditions and safety measures at
work sites, welfare and beneficial wages to workers in time and
compensation in case of accidents, medical facilities, provisions
for future etc, and thereby to improve Socio-Economic condition
of the working class and to bring about industrial peace and
harmony which could in turn accelerate productive activity of the
country resulting in its prosperity.
It is the nodal department to enforce 18 (eighteen) labour laws
and acts have been enforced in the State of Sikkim. The
support of the department in bringing about cordial relations
among different stakeholders in the apparel and garment
manufacturing industry could prove beneficial and also help and
support the mission and objectives of AMTSC.

9 Regional / sectoral  Strategic collaborations between AMTSC and various other

industry associations  organizations will be critical to foster research and development,
representing CMAI  business incubation and strengthen the AMTSC with regard to
(Clothing  manufacturing services, business advisory and training
Manufacturers  capabilities
Association of India 

10 Regional / national  Strategic collaborations between AMTSC and Regional /

level engineering/  national level engineering/ vocational training institutions will be

30
 vocational training  critical to foster research and development, business incubation
institutions  and strengthen the AMTSC with regard to manufacturing
services, business advisory and training capabilities

11 Local technical  Strategic collaborations between AMTSC and Local technical

training institutes   training institutes will be critical to foster research and
  development, business incubation and strengthen the AMTSC
with regard to manufacturing services, business advisory and
training capabilities

12 Academia  Strategic collaborations between AMTSC and Academia will be

critical to foster research and development, business incubation
and strengthen the AMTSC with regard to manufacturing
services, business advisory and training capabilities

31
Executive Summary
Objective of the DPR: Evaluate the feasibility of the proposed AMTSC in Sikkim

Opportunity and Need Assessment

Social and Environmental Assessment

Technology and Skill Set Requirement

Investment and Returns

Opportunity and Need Assessment

❏ impart relevant industry skill to trainees

❏ employ and absorb skilled trainees in a manufacturing unit in Sikkim
❏ manufacture quality finished products for long term business sustainability
❏ engage and collaborate with clusters & SHGS to bring them up the value chain

Key Stakeholders

❏ Neo Cooperative Society

❏ Dept of Skill Development & Entrepreneurship, Govt of Sikkim
❏ Dept of Cooperation, Govt of Sikkim
❏ Dept of Commerce and Industries, Govt of Sikkim
❏ Dept of Health and Family Welfare, Govt of Sikkim
❏ Dept of Education, Dept of Health and Family Welfare, Govt of
Sikkim
❏ Sisco Bank
❏ SHGs, Clusters, Entrepreneurs & Garment Industry Experts
❏ Retailers and Wholesalers
❏ E-commerce Platforms
❏ Fabric Suppliers & Vendors

Key Training Required

❏ Pattern Design - Manual & Auto Cad

❏ Garment Stitching
❏ Washing
❏ Pressing
❏ Quality Check
❏ Packaging

32
Investment & Financials

Cost of Project 
Description  Total Cost 
Land 30.00

Building 80.00
Plant & Machinery 101.63

Computers & Softwares 20.00

Other Fixed Assets 13.00
Preoperative Expenses 16.00

Contingencies 10.73
FIXED CAPITAL INVESTMENTS  271.36 
Working Capital Gap 486.20

PROJECT COST  757.56 

Turnover Details:  Turnover ( in Cr) 

Year 1 795.35
Year 2 1041.62
Year 3 1201.09

Year 4 1377.78

Year 5 1573.73

Objective of the DPR: Evaluate the feasibility of the proposed AMTSC in Sikkim

​1  Innovation and Design Center

❏ Design Support (fabric specifications, sampling & testing)

33
2  Sampling and Testing

❏ Facility for low volume production

❏ 3D Design and Sampling

​ 3  Training, design and stitching

❏ Machines repair and maintenance

4  Manufacturing Incubation Center for SHG & Cluster engagement

❏ Shell Infrastructure
❏ Business Facilities
❏ Market linkage and Support

Close to National Highway Close to a Railway Station Close to an Airport

Connectivity with Siliguri & beyond

34
Cooperative & Apparel and Garment Business
A cooperative is defined as an “autonomous association of persons united
voluntarily to meet their common economic, social and cultural needs and
aspirations through a jointly owned and democratically controlled enterprise.” This
business model has a long-standing history dating back to the first cooperative of
weavers: the original Fenwick weavers from 1761, which soon expanded into
providing affordable food and credit to members.

Nowadays, cooperatives exist along the supply chain of garments. From growing
fibres, manufacturing and commercialisation, to the consumption and recycling of
textiles, cooperatives have been serving various social and economic needs of
people directly or indirectly linked to the garment industry. As democratic,
membership-based organizations, cooperatives have presented socially and
environmentally sustainable alternatives for producers and consumers of garments.

Cooperatives are instrumental in generating income, creating employment,

advancing formalization of the informal economy and promoting decent work
particularly in the lower tiers of the supply chains, where informality and decent
work deficits are most prominent.

By forming or joining a cooperative, workers can benefit from economies of

scale,access inputs, share equipment and space, develop market linkages and

35
increase their bargaining power with public and private sector actors, allowing them
to advance toward decent work as cooperative members.

Given the voluntary and open membership of cooperatives, they can play a key role
in social and economic inclusion of marginalized and vulnerable populations, such
as low income women, unemployed youth, indigenous peoples, ethnic minorities,
migrants, displaced persons, persons with disabilities and transgenders among
others.

Cooperatives also have a proven record of being catalysts for women’s

empowerment, not only because they provide women with the opportunity to enter
the labour market with improved conditions, but also because they facilitate access
to and/or provide care services and education for children, reducing time and effort
allocated to family responsibilities.

Although the contribution of cooperatives in the garment sector has not been
quantified, cooperatives of all sizes operate along the garment supply chain
including in agriculture, textile and apparel production, retail and supporting
functions. Most garment production and manufacturing sites are located in
developing countries.

Apparel production comprises sewing, cutting, embroidery, printing, making,

trimming and designing of garments. Two types of worker cooperatives can be
found in the apparel production stage: home-based workers in the informal
economy and workers in garment workshops.

In developing countries women predominantly occupy jobs in apparel production, of

which many are in informal and home-based work. Many home-based workers
work as subcontractors to other subcontracted workers, intermediaries, garment
workshops or factories. They are usually given the raw materials and paid on a
piece-rate basis. They cover many costs of production themselves – workplace,
rent, electricity, equipment, supplies, utilities, storage and transport fees to name a
few. Home-based workers are largely invisible in the fragmented garment supply
chain because they work from their own homes.

36
Neo Cooperative Society, Skill Development, AMTSC &
Business Model
Neo Cooperative Society is a
registered Cooperative
Society registered with the
Government of Sikkim. The
Board of Neo Cooperative
Society consists of majority
women entrepreneurs coming
from diverse backgrounds and
having successful businesses,
skills and experience of
working in different fields and
vocations. Coming together to
explore the idea of doing
larger collective projects in the
cooperative model, the
cooperative was formed.

Board Members of NEO Cooperative Society

Pauline Tsechutharpa, Rinzing Choden Bhutia, Geeta Chettri, Enu Lamichaney, Yangtsola Lama
Dechen Barfungpa, Naresh Shrestha, Karma Michung Bhutia, Siddhant Pradhan, Deependra Dahal

37
The apparel and garment manufacturing industry is very labour intensive involving
a lot of workers in many upstream and downstream value chains. Neo Cooperative
Society is an organization envisioned to support members and to come together to
realize aspirations through collective financial and other support. The principles of
the cooperative society is based on welfare, progress, self-help and mutual aid in
accordance with the co-operative principles with membership voluntary and
available without restriction of any social, political, racial, gender or religious
discrimination. The cooperative was formed keeping in mind democratic
cooperative principles and membership to all persons who can make use of its
services and are willing to accept the responsibilities of membership.

The cooperative society’s stated goal is for-profit to financially benefit its members,
shareholders, creditors, debtors and investors.

The Apparel Making Training & Skill Center (AMTSC) managed and run by Neo
Cooperative Society, with an MOU with the Government of Sikkim will provide
skilled and technical training and for employment and absorbing trained and skilled
Sikkimese youth in this vocation at par with top industry standards around the
country.

The trainees joining the cooperative as members post their skill development in
Sikkim can benefit collectively being a part of a larger cooperative society from
economies of scale, access inputs, share equipment and space, develop market
linkages and increase their bargaining power with public and private sector actors
and allowing them to advance toward decent work as cooperative members. Given
the voluntary and open membership of cooperatives, they can play a key role in
social and economic inclusion of marginalized and vulnerable populations.

Neo Cooperative Society will also be actively be engaging with SHGs and Clusters
in home-based workers as part of the value chain in a network of intermediaries in
subcontracting and thereby improving the quality, standard and skills of everybody
down the value chain in the long term.

The apparel line of business is responsible for the huge amount of employment of
people directly and indirectly. As a business, Neo Cooperative Society is willing to
go the extra mile to invest in installing standard industrial sewing machines and
also to train and hire efficient and dedicated employees (tailors and support staff)
and generate employment.The right foundation, structures and processes will be
put in place to ensure that staff welfare is well taken off. The cooperative society’s
operational culture will be designed to drive the workforce to greater heights and
proper training/ retraining facilities to meet highest efficiency and achieve best
industrial quality standards.

38
Neo Cooperative Society will at all times demonstrate commitment to sustainability,
both individually and as a firm, by actively participating in our communities and
integrating sustainable business practices wherever possible. The cooperative
society also will ensure that it holds itself accountable to the highest standards by
meeting quality standards needs precisely and completely. It will cultivate a working
environment that provides a human, sustainable approach to all related parties,
with intent on building it with dedicated workforce.

Consumers are increasingly concerned about the origins, ethical, social and
environmental impact of the goods they buy. Consumer cooperatives, as
consumer-owned businesses, have been responding to their members’ needs and
exploring ways of reducing trade costs, shortening value chains, improving
traceability and providing fairer prices and inclusive employment opportunities.

The working of Neo Cooperative Society will follow specific principles that allow
businesses to call themselves Fair Trade-certified. The World Fair Trade
Organisation (WFTO) prescribes 10 Principles that Fair Trade Organizations must
follow in their day-to-day principles that allow businesses to call themselves Fair
Trade-certified as:

39
Gender, Equity and Social Inclusion Plan (GESIP)
Gender, Equity and Social Inclusion Plan (GESIP) is an important aspect of the
social management framework.

AMTSC being a cooperative with an inclusive approach aims to create more

choices for young people entering the labour force (including women and
especially those who belong to vulnerable sections of society) in terms of providing
opportunities for hands-on-technical skills development at varying levels and types
through AMTSC. This is in accordance with Government of India’s focus on
inclusive growth focusing on poverty reduction and group equality and also with the
World Bank’s Country Partnership Strategy with emphasis on engagement,
transformation and inclusion.

GESIP will be formulated for the proposed AMTSC, during its operational phase
which would not only be an outcome of the participatory process but also be rooted
in the national and state policies for gender and social inclusion.

Criteria for admission into vocational education and training for skills development:

Increased opportunities for employment to women trainees

Timings of training

Ease of Location of AMTSC

No. of women restrooms

Training Aids and infrastructure

The cooperative will prepare and monitor the strategy to help with the preparation
and implementation of a GESIP with particular emphasis on inclusion of young
women as well as those who belong to weaker and underprivileged sections of
society including social minorities, differently abled persons and transgenders.
Good practices coming out of the GESIP will be documented and encouraged.

40
Objective & Approach
Objective

The AMTSC is proposed to skill new trainees in various aspects of apparel and
garment manufacture .We propose to skill and reskill trainees in several stages of
garment manufacturing from basic product concept and prototyping to final
production.

The centre will focus on providing access to technology, providing skill up-gradation
and offering advocacy support to the trainees. The vision is to ensure
competitiveness of the trainees not just within the state but also excel as
professionals across the industry by providing them the latest technological training
and strengthening their linkage to the mainstream apparel industry.

The objective of this DPR is to evaluate feasibility of the proposed AMTSC in

Sikkim. This includes assessment of the market need in the region, technology and
skill set requirement, amount of investment required, construction needed, its
layout and subsequent requirements for implementation of the training center in
Sikkim.

This DPR has been prepared in consultation with relevant stakeholders including
Skill Development & entrepreneurship Department, Government of Sikkim,
Department of Commerce & Industries, Government of Sikkim, industry
associations, other consultants in the business. This DPR would facilitate the
implementation plan of the proposed AMTSC in Sikkim.

Approach

A comprehensive secondary research was carried out to understand the

technological requirements of the proposed project in Sikkim. To validate the facts,
the team performed a detailed primary research, which included meetings with
leading entrepreneurs from the industry within and outside the state. This helped
understand current business requirements, issues, challenges and help forecast
the future requirements.

Based on these outcomes, we were able to gauge the market opportunity in the
region and demand for higher skill for job work in the Apparel & Garment
manufacturing sector.

A Garment Manufacturing Centre in Sikkim will play an important role in providing

better job opportunities to the workforce in Sikkim and also make them adept for
opportunities outside the state.

41
At AMTSC, we propose to also provide support service to entrepreneurs from the
initial stages of product concept to prototyping to low volume production. The
AMTSC will focus on improving access to technology, providing skill up-gradation
and offering advocacy support to the MSMEs and SHG with high growth potential.

The vision is to ensure competitive advantage to small scale garment

manufacturing units,clusters and SHG by providing linkages to the market in Sikkim
or outside the state.

42
Market Potential and the Way Forward
On approval of the Detailed Project Report, we would immediately propose to
onboard Neo Cooperative Society and AMTSC Management as a key partner
through an MOU to be engaged as:

➔ Management Consultant ​for the development of the new facility.

➔ Manufacturing Technology Partner for procurement of machines and

adoption of new technologies and their training.

Marketing of AMTSC​ as a facility for training, manufacturing and consultancy.

The Garment Industry of India is a Rs One Trillion industry. Almost 33 % of its

knitwear production and about 20% of its woven-garment production, both by
volume, enters export markets. Overall about 25 % of the volume of its garment
production goes into export markets, leaving 75 % for domestic consumption.

In a developed market like garment manufacturing the key to success will depend
on factors like quality, price and the ability to predict consumer preferences. A
skilled workforce and good technical skills are paramount to achieve these factors.
The training by AMTSC would help trainees to acquire skills at par with
international standards.

The scope of the industry is huge but the key to success will lie in defining niche
sectors and tap the potential of the geography. The AMTSC defines the following
sub-categories as potential areas of development:

➔ Institutional Sales: Uniform for Schools, Hospitals and Government

Departments

➔ Home Furnishing: Create a niche home furnishing product line with

traditional Sikkimese and Regional weaves and for the domestic &
international market

➔ Winter - Wear: Create a line of winter and sportswear. The AMTSC intends
to develop a home grown brand for Winter Wear, Fleece Jackets , Sports
and Lounge wear through retail or online channels.

43
Institutional Sales and Uniforms

The demand for durable and quality uniforms is a gap which is yet to be completely
fulfilled by local production. An estimated INR 60 Crores annual market of uniforms
in Sikkim has till date been supplied by small scale units or manufacturers from
outside the state causing a major drain on the state’s economy. AMSTC aims not
only to fill this gap but also create local entrepreneurs to fulfil this demand as well
as provide employment to the local populace. The challenge of local manufacturers
is mainly due to lack of standardisation, quality control or delay in delivery.

At AMSTC, we intend to fill this gap in catering to this segment by providing quality
products at the best price. We intend to provide employment to the trainees under
fair work conditions but also encourage skill development and technology to an
individual or group of people under a SHG/Cluster to market their products.

44
At present, the uniforms for schools for Sikkim are manufactured outside Sikkim.
Same is the case with police uniforms as well as hospital uniforms.

There is a demand for at least 6 to 10 lakhs uniform garments per year in Sikkim.
One skilled tailor is able to make 3 to 5 garments per day, then this demand can
easily generate income for at least 500 households in Sikkim. The annual total
uniform industry is almost INR 60 crores and increasing.

In line with the Government of Sikkim vision to make policies and give support for
uniforms to be manufactured in Sikkim, it will meet its objective of creating skilled
self employment and giving business to local manufacturing MSMEs and SHGs.

Home Furnishing

The home furnishing market in India is projected to cross INR 40,000 crore by the
end of this year on account of rising demand for contemporary designs, increasing
number of households, growing demand for branded and custom designed furniture
and increasing availability of innovative and affordable home furnishing products in
the country. Over the last five years, India has emerged as one of the fastest
growing markets for home furnishing products in APAC. In 2016, the home
furnishing market in India is expected to witness a Y-o-Y growth of around 9.5%,
with a similar trend anticipated to continue through 2020.

Rising demand for bath and table linen products, upholstery, etc., increasing
demand for premium quality window coverings such as curtain fabric and blinds,
and rising trend of using wallpapers and wall-decals over traditional paints &
coatings are some of the major factors driving adoption of home furnishing products
in the country.

45
Lack of talent, especially merchandisers, designers and support services, difficulty
in accessing raw materials, logistics issues and no buyer visitation are the major
obstacles that we face in Sikkim. On the other hand, less overheads, easy access
to administration, peaceful working conditions and a rich history of Sikkimese
designs and handiwork is an advantage. While Sikkim has many ethnic fabric
designs and styles, much effort has not been given to fusing these ethnic and
traditional designs with niche home furnishing products like successful examples
from other North Eastern States.

Heirloom Naga, Dimapur (Nagaland) is perhaps one of the best examples of a unit
that enjoys the edge of local tradition and crafts, to indulge in innovative product
development which makes it possible to offer niche products to domestic and
international markets.

At AMSTC , our endeavour is to use technology and our market linkages to bring
our heritage and designs to the world.

Winter Wear & Outdoor Wear

Global Winter Wear Market is expected to rise from its initial estimated value of
USD 401.25 billion in 2018 to an estimated value of USD 613.46 billion by 2026,
registering a CAGR of 5.45% in the forecast period of 2019-2026. This rise in
market value can be attributed to the rising levels of disposable income of the
individuals along with the change in the preferences of the consumers.

46
Winter wear is a kind of apparel that is used for protection against the cold. They
mostly consist of outdoor wearing apparel and help in protecting the wearer from
harsh low cold temperatures of the winter weather. Due to the modernity, there
have been constant innovations and increase in the aesthetic appeal of the clothes,
which has been one of the major drivers for the market growth.

A lot of major Indian and international brands are getting attracted by the booming
winter wear market. The brands have huge opportunity because of the higher
margins in comparison to other product categories, a consequence of the material
used and complexity of designing. Though the segment has shown promising
growth and elicited enthusiasm from brands and retailers, there is still an arduous
task ahead for merchandisers and product developers. The seasonality of sales,
necessity of skilled labour, competition among the already established brands or
new international brands, competition from the unorganised market pose as
challenges to this seasonal segment. One of the major challenges is to make sure
that the correct merchandise reaches the targeted customer at the right point of
time.

Due to severe and harsh winters, North-Eastern India has always had a high
demand for Winter Wear .This market has mostly been catered to Chinese imports
due to similarities in size and style compared to Indian winter wear brands. AMTSC
envisions the start of a home grown brand which will cater to the domestic and
regional market in the short term and international markets in the longer term.

Besides Winter wear ​the market for outdoor and performance apparel is growing.
Sports and fitness clothing has become a staple for health conscious customers

47
around the world. The clothes in this category are not only getting functional and
versatile, but also stylish by each passing day.

Outdoor wear apparel and clothes is gaining increased importance in the

shapewear cum work-out wear sector. Besides tracksuits, manufacturers also
make socks, leggings, and pants to keep wearers active all day long. Fabrics that
keep moisture away and the wearer dry along with anti-bacterial and anti-odor
properties are being used in outdoor wear. Outdoor wear garments these days can
be worn at work, gym, and even at home. Customers want a single outfit that they
can wear just about anywhere. This has led to more purposeful outdoor wear.

The market and choice for outdoor apparels and extremely functional wear is
growing at a tremendous rate and we would like to be the first to produce such
products from Sikkim.

In India, Wildcraft, is the leading ​Indian ​manufacturing ​company from ​Bengaluru in

outdoor wear with products sold in over 200+ exclusive stores and 4,000
multi-branded stores in India and abroad.

Sikkim while being an associate state of India, shares similarities with Nepal in
cultural, geographical and tourism scenarios where outdoor activities like trekking
and hiking is one of the major components of their tourism. Outdoor wear apparel
available earlier to tourists and locals in Nepal were mostly duplicates of popular
outdoor wear brands manufactured and duplicated in China and locally. However,
over the years entrepreneurs and startups in Nepal realised the possibility of

48
creating their own brands of origin from Nepal like many other international outdoor
wear brands which proved very successful.

Nepal has successfully created a niche in the winter wear market with its own
homegrown brands like Sherpa, Sonam, KTM City etc. The quality of these
products are second to none and some brands even command a higher price than
international brands.

Stemmed from the speed of industry growth and the dynamism with which it was
transformed into a sophisticated industry – the export-oriented RMG industry has
been one of the most successful industries in Nepal.

This industry earns huge revenues with a turnover of around US$ 160 million. The
industry consisted of about 212 factories, each employing from around 200 to 1,500
workers and the whole value chain sector employed about 50,000 workers where
nearly 45 per cent of the employees were women. This has been possible in just
about 8 to 10 years.

49
Primary research
As a part of preparing the DPR, discussions with some garment manufacturers,
industry associations, and other stakeholders in the apparel manufacturing clusters
in Delhi, Ludhiana and Tirupur district were carried out.

The objective of the primary research was to understand the business

requirements, issues, challenges, and future requirements of setting up AMTSC
and to delve into processes required to establish a future garment industry in
Sikkim. The research also included the support requirements of players with
respect to designing, training, manufacturing and consultancy. The following were
recommendations :

1. Skill Training Center to produce skilled manpower trained in sampling and

production for the garment sector in Sikkim is a key requirement for
supporting MSMEs and SHG and large scale enterprises being set up in the
apparel and garment industry.

2. AMTSC should have other industry standard scrutiny and rigour apart from
the regular product development support.

3. A common facility centre for production & training was recommended.

However locational advantages and disadvantages to be looked into for
competitiveness of final products in terms of quality and pricing.

4. Manufacturing Incubation Centre should be present along with the training

infrastructure to support startups in the industry.

5. Facilities for designing and prototyping for the winter wear apparels should
be included.

6. Production of Winter Wear and Outdoor Wear which have a huge internal
and regional demand should be explored along with manufacturing of quality
uniforms which already have a domestic government and institutional
demand.

50
Human Resource Development
Globalisation, constantly emerging technologies and regulatory changes, COVID
19 are some of the challenges facing the industry as it adjusts to a global
quota-free trade landscape.

To meet these challenges will need a flexible workforce ready to upgrade their skill
and knowledge.Whether our business strategies rely on marketing know how,
technology, price, logistics, innovation or scale economies, success can only be
achieved through a highly skilled, motivated and globally competitive workforce - it
is people that make things happen in any organisation.

The success of an organisation depends upon the skill and experience of the team.
Thus it is critical to plan and recruitment the best available manpower in the region.

As per the existing structure, there are following functional areas/streams in a

AMTSC:

51
 Production

Design

Training

Consultancy and Marketing

Administration and Accounting

While there will always be a requirement for unskilled work given the nature of the
industry, the percentage of skilled labour will likely grow to satisfy sophisticated
consumer preferences. This in turn requires constant skilling to meet delivery
targets. AMSTC will provide for the requisite training modules required for changing
consumer demands. This should not only help the trainee move up the value chain
but will also help the business by offsetting unit labour costs and ultimately meet
price points in the marketplace.

The total sanctioned strength required for the organisational set up is a 100 team
members.

Organisation structure

Training

Production, Quality Control & Packaging

Design, Consultancy & Innovation

( including Incubation Centre)

Marketing & Sales

Administration

Finance & Accounts

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Management

Arguably one of the greatest skills development challenges for the sector lies in the
field of management training and development. The rising complexity and speed of
business, productivity pressures, innovation and process upgrading, chain
management, strategy formulation, logistics, information management and people
development are just some of the areas that require specialised training and
development interventions for managers to meet the demands of modern business.

The AMTSC will be divided into different verticals headed by a Manager reporting
directly to a General Manager:
Based on the considerations stated above, the organisational chart provided below
demonstrates the target organizational structure to be achieved in 5 years (by
2025-26) from inception. Though, we have provided the figures till 2025-26 since
we are estimating the revenue and expenditures for next 10 years.

S.No  Designation  Manager  Supervisor  MasterJi  Executives 

1 General Manager 1
2 Marketing 1 2
3 Administration & Accounting 1 7
Innovation, Design &
4 1 2 1 2
Consultancy
5 Production 1 2 4 60
Manufacturing Incubation
6 1 1
Centre (MIC)
7 Training 1 4 4

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The General Manager will report directly to the board of Neo Co-operative Society
➔ Proposed employee strength of the AMSTC not to exceed 100 employees
➔ It is proposed that AMTSC will be focused on apparel and garment training &
manufacturing.
➔ The Manager- Administration, would be responsible for Human Resource
Management, Recruitment and other issues pertaining to trainee
administration. He will be responsible for Job Placement & Career Planning
➔ The Supervisors, Masterji or the line managers will directly report on to the
Managers for day to day functioning.
While analysing the existing organizational structures and designing the one that
suits us, we have taken some considerations into account which have been
discussed.

Some of the key considerations are as below:

➔ In the proposed organizational structure for AMTSC , the main revenue

streams are Training, Production and MIC. These departments will be
headed by Managers who would directly report to GM (General Manager).

➔ In the proposed AMTSC, a separate vertical for the Manufacturing

Incubation Centre (MIC) has been proposed.

➔ The other three departments namely, Marketing, Administration and

Accounting, and MIC are proposed to be headed by Manager level positions
and they will directly report to GM. This has been done as the administration
and accounts department is lean and a manager level employee would be
able to manage the same. Also, as stated above, the total sanctioned
strength cannot exceed 60.

➔ It is proposed that training in the AMTSC will be focused solely on apparel

and garment manufacturing.

➔ In the structure for AMTSC, keeping in mind the scale and the number of
trainees in the short term courses, the manager would mainly be responsible
for administration, planning, quality control, issue of certificate to trainees,
fee collection and others. The managers would be additionally responsible
for placement of students which will include industry interaction, managing
training and placement, delivering presentations etc. Challenges in Human
Resources

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Re-engineering

The stark reality is that firms in this sector are becoming smaller, flatter, and
meaner, and doing whatever is necessary to stay in business. Large clothing and
textiles firms, as part of a growing trend, are re-engineering themselves into a
number of smaller interlocking business units to acquire market agility.

This multiplicity of roles is giving rise to more complex organisational architectures

in firms and presenting a plethora of new skills development opportunities beyond
the traditional offering of learnerships, apprenticeships and technical training, which
is also vitally important to improve the competitive capability of firms in the sector.

Value Chain

Mastery of the value chain is assuming greater prominence in all activities of the
firm with a view to cut costs and improves quality at every point in the activity chain.
Success or failure in firms is now measured by the speed of movement of raw
materials from the time it reaches the gate of the firm to the time the finished
product lands on the customer's doorstep.

Hierarchies

As firms downsize, traditional hierarchies are replaced by longer control spans.

Managers and supervisors need to be equipped with skills that rely more on
coordination and participation than on inspection and control. Likewise, operators
need to be trained to accept greater responsibility for individual performance,
display sound judgment, work in self-directed teams and offer solutions to problems
on the production floor. This is new ground for training in a sector accustomed to
Fordist manufacturing practices.

Work

In this new climate, firms need to organise around work, not jobs. The workforce
should be multi-skilled with fewer workers doing more work. Workers should rotate
around different projects. Managers should be skilled to guide projects, measure
performance, encourage innovation, manage talent and communicate effectively.
This also presents new skills development challenges and requires a fundamentally
different battery of skills for managers and workers alike.

55
The Manufacturing Process
1. Stages of Production Apparel Production is generally done in four stages:

2. Procurement and Inspection of raw material

3. Laying and Cutting of fabric/material

4. Assembly of the product

5. Finishing and Packaging

Procurement of Fabric:
Dyed/ bleached/ printed
cotton/ synthetic fabrics as
per demand are to be
procured from the open
market. The fabric will be
inspected by laying on the
inspection table against
light before cutting so that
unevenness in colour/
shade or any other fault, if
any visible in the fabric are
eliminated.

Cutting and Stitching:

The inspected fabric is
placed on the cutting table
in layers and then the
different parts of the
respective garments are
demarcated by chalk as per
different sizes. Cutting is
carried out by the cutting
machine. Stitching is
carried out for individual
portions of the garments by
skilled workers with the
help of overlock, lock stitch machines etc.

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Washing, Checking, Pressing and Packing:

All garments are charged into a washing machine containing mild detergent and
washed for 4 hours in order to remove dirt and stains acquired during the
manufacturing process. After washing, the garments are hydro-extracted to remove
excess water and after this, these garments are dried in a tumbler dryer. Final
checking is done before pressing and packing on the checking table so that any
fault in the piece may be removed and protruding threads eliminated. The individual
pieces are pressed by steam presses to remove any wrinkle marks and packed in
the carton boxes.

Quality Control and Standards:

The quality of garments mainly depends on the quality of fabric used. Therefore,
care must be taken while purchasing fabrics to ensure good colour fastness
properties, uniformity in shade etc. Generally garments are made as per customer’s
specification in respect of size, design and fashion. How Apparel Making Works

Apparel Making
Weaving

Weaving is a process of producing a fabric called woven fabric. Since manual

production of such fabric is too slow and least productive the mechanical as well as
electronic machines came to be used. The machine used in the weaving process is
called LOOM.

Looms at the very beginning of their innovation were too slow even though they
were better than manual operation.

Due to this fact different developments took place in looms and we do have better
looms today. This development is explained in terms of loom generations.

Knitting

Knitting is a method by which yarn is manipulated to create a textile or fabric; it is

used in many types of garments. Knitting may be done by hand or by machine.

Knitting creates stitches: loops of yarn in a row, either flat or in the round (tubular).
There are usually many active stitches on the knitting needle at one time. Knitted
fabric consists of a number of consecutive rows of connected loops that intermesh
with the next and previous rows. As each row is formed, each newly created loop is

57
pulled through one or more loops from the prior row and placed on the gaining
needle so that the loops from the prior row can be pulled off the other needle
without unraveling.

Differences in yarn (varying in fibre type, weight, uniformity and twist), needle size,
and stitch type allow for a variety of knitted fabrics with different properties,
including color, texture, thickness, heat retention, water resistance, and integrity. A
small sample of knitwork is known as a swatch.

The ready to wear apparel involves various stages from pattern drafting to garment
construction which include pattern designing and p ​ attern making, grading,
marker making, apparel cutting, sewing, pressing a ​ nd​ finishing​.

Pattern Making Process

Once the pattern is graded, the fabric must be prepared for cutting. In order to
spread the fabric properly, the spreader must know how the pattern pieces will be
placed on the fabric.

“Marking” refers to the process of placing pattern pieces to maximize the number of
patterns that can be cut out of a given piece of fabric. Firms strive for “tight”
markers largely because fabric is one of a manufacturer’s most significant business
costs, often exceeding the cost of labor. Although markers can be made by hand or
using CAD software, the computerized method is up to eight times faster. Once a
marker is completed, a CAD system can use a plotter to print a full size layout on a
long sheet of paper. This layout becomes the guide for the cutter. Computer
software helps the technicians create the optimum fabric layout to suggest so fabric
can be used efficiently. Markers, made in accordance to the patterns are attached
to the fabric with the help of adhesive stripping or staples. Markers are laid in such
a way so that minimum possible fabric gets wasted during cutting operation. After
marking the garment manufacturer will get the idea of how much fabric he has to
order in advance for the construction of garments. Therefore careful execution is
important in this step.

Computer marking is done on specialized software. In computerized marking there

is no need for large paper sheets for calculating the yardage, in fact, mathematical
calculations are made instead to know how much fabric is required.

Not every marking is on every pattern because some are specific to a certain style
or construction technique. Layout and cutting markings don’t need to be transferred
to the fabric.

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Construction markings, on the other hand, are very helpful during the sewing
process and transferring them to the fabric is a good idea.

Pattern Grading

Patterns initially are made in only one size. In order to produce clothing that fits
various body types and sizes, the pattern pieces must be increased or decreased
geometrically to create a complete range of sizes. The process of resizing the initial
pattern is called “grading.” Each company determines its own grade specifications
for each size, and size specifications vary slightly from manufacturer to
manufacturer.

Although many small firms still use traditional grading methods, grading, like
pattern making, is becoming increasingly computerized. Using a CAD system, the
pattern can be resized according to a predetermined table of sizing increments (or
“grade rules”). The computerized plotter can then print out the pattern in each size.
Because the productivity gains are so great, small to medium sized manufacturers
are beginning to acquire their own CAD systems for grading.

Alternatively, they may use an outside grading service to perform this function.

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Marker making

Fabric is the most important basic material for apparel making and it accounts for
around 50 per cent of the ex factory cost of a garment. Thus, material optimization
or maximizing fabric utilization is the fundamental factor for every apparel firm.
Marker making is done to avoid material wastage. While making markers, fabric
width, length, fabric type and subsequent cutting method, all are taken into account.
Both single size and multiple size paper markers are made using automated
marker making tools and Computer Aided Design Computer Aided Manufacturing
(CAD/CAM) along with traditional manual methods. The firms providing this service
use previously graded patterns or the digitized copy of styles provided by the
apparel manufacturers.

Spreading or Laying

Spreading is the process of unwinding large rolls of fabric onto long, wide tables in
preparation for cutting each piece of a garment. The number of layers of fabric is
dictated by the number of garments desired and the fabric thickness. Spreading
can be done by hand or machine. Depending upon the fabric and cutting
technology, up to 200 layers of fabric may be cut at one time. Fabrics that are more
difficult to handle are generally cut in thinner stacks.

Spreading and cutting is smooth laying out of fabric in superimposed layers or piles
of specified length. The cutting marker is laid on the topmost layer. The maximum
cutting width is the usable fabric width minus selvedge or needle marks caused by
stencil marks. Fabric utilization is the amount of fabric actually utilized in the marker
as the percentage of the total fabric area.

Types of Lay Plan

❏ Half Garment Lay includes only half of the garment pieces for example one
side left or right. Generally used for tubular fabrics.

❏ The Whole Garment Lay includes garment pieces, left and right sides.
Generally used for Open width fabrics.

❏ Single Size Lay is used using all garment pieces of one single size.
Disadvantageous as the consumption of fabric is higher.

Types of Lay

❏ Single Ply is a single layer of fabric generally to make samples.

❏ Multiple Ply is a number of fabric layers stacked on one top of another..

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 ❏ Stepped Lay is multiple lay in which groups of layers have different lengths
generally used for getting best utilization and consumption of fabric.

Forms of Spreading

❏ One Way Cutting is when fabric is laid the same way up with grain or print
pattern running in the same direction. Fabric has to be cut at the end of each
ply.

❏ Fact to Face Cutting is when the plies are laid in pairs face to face. The grain
or pattern runs in the same direction.

❏ Two Way Cutting is when plies are laid continuously from left to right and
right to left without cutting at the end. Most Efficient method of spreading.
Cannot be used with grain restrictions or one directional printed fabric.

Presentation of Fabrics

Presentation depends on the type of materials, their application. Generally fabrics

are Open width (rolled), Doubled (wound) and Tubular (plaited)

Ideal Lay height for cutting

Fabric weight …..….Woven Knits

Heavy Weight …………..4​5″ 5​4 “

Med Weight ……………..3​4″ 3​3.5″

Light Weight …………..2.5​3″ 2​2.25″

Fabric Cutting

Cutting is the process which cuts out the pattern pieces from specified fabric for
making garments. Once the marker is made, pattern pieces must be cut out of the
specified fabric, a process called “cutting.” Currently, several cutting techniques
exist, ranging from low​ to high ​tech. Although scissors are used very rarely ​only
when working with very small batches or sensitive fabrics ​cutting continues to be
done by hand, particularly in many lower volume establishments. Here, cutters
guide electric cutting machines around the perimeter of pattern pieces, cutting
through the fabric stack. An electric drill may be used to make pattern notches. The

61
accuracy and efficiency of this system is considerably less than in computerized
cutting systems.

Computerized cutting systems are achieving more widespread use as technology

costs decrease and labor costs rise. These computer driven automated cutters
utilize vacuum technology to hold stacks of fabric in place while cutting. Cutting
blades are sharpened automatically based upon the type of fabric being cut. Gerber
Garment Technology manufactures one of the most commonly used cutting
systems. This technology has the advantage of being highly accurate and fast, but
does cost considerably more than other cutting techniques.

Best Practices

Precision of cut: To ensure the cutting of fabric accurately according to the line
drown of

Clean edge: By avoiding the fraing out of yarn from the fabric edge. Cutting edge
must be smooth and clean. Knives must be sharp for a smooth or clean edge.

Consistency in cutting: All the sizing safe of the cutting parts should be the same as
the knife should be operated on the right angle of the fabric lay.

Types of Cutting

Fully manual:

❏ Hand operated scissor

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Manually operated power knife:

❏ Straight knife

❏ Band knife

❏ Round knife

❏ Die cutting

❏ Notcher

❏ Drill

Computerized methods of fabric cutting:

❏ Computer controlled knife cutting

❏ Cutting by Laser beam

❏ Cutting by Water jet

❏ Cutting by Plasma torch

Bundling - Reassembling cut pieces

Bundling is the process of disassembling the stacked and cut pieces and
reassembling them in production lots grouped by garment unit, colour dye lot, and
number of garments.

“Bundling” is the process of disassembling the stacked and cut pieces and
reassembling them in production lots grouped by garment unit, colour dye lot, and
number of garments.

Manufacturers use a variety of bundling methods depending upon their needs, with
four basic systems being the most common among local manufacturers:

❏ Item bundling – all pieces that comprise a garment are bundled together.

❏ Group bundling – several (10​20) garments are put together in a bundle and
given to a single operator or team to sew.

❏ Progressive bundling – pieces corresponding to specific sections of the

garment (such as sleeves or a collar) are bundled together and given to one
operator. Other operators sew other parts of the garment, which are then
assembled into the finished garment in the final phase.

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 ❏ Unit production system (UPS) – individual garment pieces are delivered to
sewers using a computerized, fully mechanized “assembly line” that runs
throughout the manufacturing facility. Using a UPS computer monitoring
system, a manufacturer can fully track the production of a garment, identify
where sewing slowdowns are occurring, and reroute garment pieces to other
sewers who work more quickly. UPS system, which eliminates the need for
passing apparel piece bundles from worker to worker. This lowers labour
costs because employees spend less time handling bundles and more time
sewing. It also facilitates short cycle manufacturing.

❏ Modular or “team based” manufacturing is another type of bundling that

combines some of the above characteristics. Developed in Japan, it is the
grouping of sewing operators into teams of eight to ten. Rather than each
sewer performing a single task, they work together on a garment from start
to finish. One ​third of the U.S. apparel industry has switched to either unit
production or modular manufacturing.

Sewing Process

The basic process of sewing involves fastening of fabrics, leather, furs or similar
other flexible materials with the help of needle and threads. Sewing is mainly used
to manufacture clothing and home furnishings. In fact, sewing is one of the
important processes in apparel making.

Most of such industrial sewing is done by industrial sewing machines. The cut
pieces of a garment are generally tacked, or temporarily stitched at the initial stage.
The complex parts of the machine then pierces thread through the layers of the
cloth and interlocks the thread.

Industrial Sewing

Although it seems to be a simple process, industrial sewing is quite a complex

process involving many preparations and mathematical calculations for the perfect
seam quality. Good quality sewing also depends on the sound technical knowledge
that goes into pattern designing and making. Flat sheets of fabric having holes and
slits into it can curve and fold in three​ dimensional shapes in very complex ways
that require a high level of skill and experience to wrinkle​ free design. Aligning the
patterns printed or woven into the fabric also complicates the design process. Once
a clothing designer, with the help of his technical knowledge, makes the initial
specifications and markers, the fabric can then be cut using templates and sewn by
manual laborers or sewing machines.

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While handling the fabric and in the process of sewing, the cloth must be held stiff
and unwrinkled. The seam quality is very sensitive to cloth tension that varies from
time to time in the whole sewing process. These undesirable variations in the cloth
tension affect the product quality. Therefore, there arises the need of strict control
over the whole process. The work of sewing is focused on the handling of fabrics
lying on the working table and guide them towards the sewing machines needle
along the seam line. The attention is equally focused on the control of appropriate
tensional force so as to maintain high quality seam.

Pre sewing functions

Before the actual task of sewing begins, there are certain other tasks that have to
be taken care of which can be termed as fabric handling functions​ Ply separation;
Placing the fabric on the working table; Guiding the fabric towards sewing needle;
and tension control of fabric during the sewing process.

While ply separation, stacks of fabric plies are sequentially positioned with the help
of some feeding apparatus in an unloading position. The uppermost ply in such a
stack is individually and sequentially separated from the stack. In the process, an
edge of the separated fabric is presented between the jaws of a gripping device. A
proximity switch determines the spacing between the gripper jaws. When this
spacing confirms that only one fabric ply is in place between the jaws, the single ply
is transferred over onto the receiving end of a conveyor for further processing. In
aerodynamic technique, the uppermost ply of fabric is lifted by suction from the
remainder of the stack.

When the fabric is placed on the working table, the tasks that are performed before
the sewing process include – recognizing the fabric’s shape, edges that will be
sewn, planning of the sewing process and identification of the seam line.

Recognizing the fabric’s shape

The appropriate tensional force depends on the fabric properties. So the fabrics
have to be identified into categories like knitted fabrics, woven fabrics etc.
depending on their physical properties. Various shapes of the fabrics such as,
convex, non​convex, with straight or curve edges, also have to be considered and
each of them require different handling strategies. In brief, the sewing methods
done by automatic systems require classification of fabrics into various categories
and certain preliminary schemes of the path that the fabric must follow so as to
produce the required stitches.

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Fabric Edges to be sewn

There are two basic types of stitches​ one is that are for joining two parts of cloth
together and the second one is done for decorative purposes. Sometimes, both
types of stitching have to be done on some parts of cloth, for example, a pocket
has to be joined on three sides with the apparel as well as it may be given some
decorative stitches too. At what points and which type of stitching has to be done​ all
such information is stored digitally on automated devices through Computer​Aided
Design (CAD) and accordingly sewn.

Planning of sewing process

Sequence of seams to be stitched is determined before the sewing starts. Which

part will be joined first, what stitches will follow one another, etc. are decided.
However, some stitches have to be necessarily done before or after another stitch.
In the example above, the decorative stitches must be done first followed by the
joining stitches. Embroidered patterns also follow the same sequence but
sometimes in clothing items like hats, decorative stitches or embroidery is done
after the production of hats and with the help of embroidery machines.

Identification of seam lines

Sewing process is performed on seam lines situated inside the fabric edges, some
millimeters inside the fabric’s outer line. For the straight lines, the seam line is
found by transferring the outer lines inside the fabrics and the intersection of these
lines makes the vertices of the seam line. Therefore, the seam line is parallel to the
outer edge and the distance between the two has to be determined as it is different
for different parts of the cloth. This distance is greater for trousers legs than for shirt
sleeves. Seam allowance is the area between the edge of the fabric and the line of
stitching. It is usually 1.5 cm away from the edge of the fabric. Seam allowance is
usually 2.5 cm or more for standard home dressmaking. Industry seam allowances
vary but they are usually 0.6 cm.

Sewing Fabrics

The sewing process consists of mainly three functions​ guiding fabric towards
needle; sewing of the fabric edge; and rotation around the needle. The fabric is
guided along the sewing line with a certain speed that is in harmony with the speed
of the sewing machine. The orientation error is either manually monitored or if
monitored automatically then error is fed to the machine controller so that the
machine corrects the orientation of the fabrics. When one edge of the seam line is
sewed, the fabric is rotated around the needle till the next edge of the seam line

66
coincides with the sewing line. The sewing process is thus repeated until all the
edges of the seam line planned for sewing, are sewed.

Significant Aspects of Sewing

There are certain aspects that have to be carefully considered while the sewing
process as they are very crucial for high quality sewing.

Thread tension and consumption

Correct balancing of the stitch and the tension given to the threads is very
important for quality stitch formation. Thread consumption, which is closely
associated with correct stitch geometry and thread tension, is usually measured by
digital encoders.

Presser​ foot displacement and compressing force

Presser​ foot is the part of the sewing machine that holds the fabric in place as it is
being sewn and fed through by the feed dogs. The feeding system is one of the
most important constituting systems of the sewing machine. If this system is not
efficient then it results in irregular seams and many other defects, especially when
running on high speed. To evaluate feeding efficiency, the force on the presser foot
is measured with the help of electric or other sensors.

Needle penetration force measurement

The interaction of a needle with fabric is very crucial. Fault​free needle penetration
depends chiefly on the properties of fabric and needle choice. Needle penetration
force is one of the variables whose measurement is important for the analysis of
quality problems or “sewability testing” and also quality monitoring. It takes various
factors into consideration, such as the needle geometry (including the point angle
and point length of the needle), the friction between the needle and the fabric, the
friction between the needle eye and the thread along with fabrics’ property, and the
sewing conditions.

Common machines used for garment manufacturing

Cutting Machine

An effective cutting room with good cutting machines is the best foundation in any
production unit. The major operation in the cutting room is to cut the spread out
fabric. This is the most decisive function – because once the fabric has been cut,
very little can be done to correct serious mistakes.

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Some of the main features of a Cutting Machine

Power Session: Is often used in the sample room and is used to cut one or two
layers of fabric.

Round Knife: Is a very fast machine. It is excellent for cutting straight and curved
lines. Blade size ranges from 4 cm to 20 cm diameter and the cutting height is
about 40% of blade diameter.

Straight Knife: Commonly used for cutting and if correctly used is best and
accurate for most cutting rooms.

Band Knife: The narrow blades allow the finest of shapes to be cut very accurately.
Some band knife machines have air flotation tables which support the block of work
and a fine air cushion which helps the worker to cut fabric with minimum
disturbance to the layers of cloth.

Computer Controlled Cutting: The marker data it transferred to the cutting unit by
means of tapes, floppy discs or directly from the marker planning system itself. This
is 6​8 times faster and produces accurate cut components. Although costly initially it
is the best investment for large scale production.

Sewing Machines

The clothing industry requires special sewing machines for sewing a wide variety of
garments. Specialised sewing equipment for their own particular requirement is a
basic necessity in the garment manufacturing unit.

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Single Needle Lock Stich Machine

❏ Works with electronic controls Functions at a high speed of 6000 rpm.

❏ Automatic clipping of top and bottom threads

❏ Has several special sewing machine attachments which can be used to help
the operator maintain a consistent standard of quality particularly when
stitching collars, cuffts, yokes etc.

Double Needle Overlock Stitch

❏ Works with electronic controls at a high speed of 6000 RPM.

❏ Machine consists of two needles which function together. You get double
rows of stitching in a single operation.

❏ Used particularly for sewing jeans, safari suits etc, where double seams are
required. Produces quick and uniform stitches and thus saves production
time.

Over Lock Machine

❏ This could be a three or five thread overlock machine

❏ This name is given to the machine as it stitches the edges of a garment to

be finished. It covers rough edges of fabric in order to present a clear and
neat appearance where seam edges are visible.

❏ It speeds up to 8500 rpm and does automatic edge trimming and thread
clipping. It is also used for assembling knitted articles such as T​Shirts.

Button Sewing Machine

❏ This is also a high speed electronic machine.

❏ Buttons with 2,4 holes or shanks can be sewn on the same machine by
simple adjustments to the button clamp and spacing mechanism.

❏ The needles have a vertical movement only and the button is moved from
side to side by the button clamp.

❏ Each machine has a maximum number of stitches i.e.16, 24 or 32 and can

be adjusted to sew the few or half the stitches i.e. 8 or 16, 12 or 24, and 16
or 32.

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 ❏ Generally decorative buttons can be sewn with half the number of stitches
used for functional buttons.

Button Hole Making Machine

❏ This is a very expensive machine.

❏ The machine automatically slits through the garments and sews round its
edges to prevent fraying and stretching.

❏ The number of threads used depend on the garment type and quality.

❏ In standard types of garments such as shirts the operator simply positions

the work in the machines wherever button holes are at predetermined
distances which the machine automatically stitches and trims the thread
ends.

Fusing Machines

There are several kinds of fusing machines ranging from small table models to
large floor standing machines. Basically this type of press consists of padded top
and bottom bucks with heating elements in one or both of the bucks. The bottom
buck is static with the top buck raised or lowered to open or close the press.
Relatively speaking, fusible interlinks are precision products and it is essential that
they are fused on correct equipment. Under strict temperature control. The duration
of time required is also programmed.

During fusing it is necessary to apply equal pressure over the component to ensure
the following factors:

❏ Intimate contact between top cloth and interlining.

❏ Heat transfer is correct.

❏ There is even transfer of the resine into the fibre of the top cloth

Pressing or Folding

Some pressing, termed “under pressing,” may be done in the course of assembling
a garment, for example, pressing seams open or ironing a collar. Most pressing is
done after assembly to improve the appearance of a garment. In other cases,
especially with knits, garments are simply folded instead of pressed. Although
pressing remains largely a manual task, a new automated process exists that apply
force and steam to garments placed over a body form.

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Finishing and Detailing

“Finishing” is the addition of special detailing such as pleats, embroidery and

screen printing to a garment. This includes hand stitching (unseen hand work done
inside collars and lapels to give them shape) and its automated substitutes. This
may also include adding buttons, hooks, eyes, or trims, as well as clipping loose
threads. All finishing of moderate​ and lower​priced garments is done by machine.

Quality Control

Quality control helps to ensure that all garment products meet production standards
and match the original sample.

There are two main aspects to the quality of garment.

Design Quality​: It is concerned with materials, fit and construction methods.

Manufacturing Quality​: Manufacturing quality is concerned with the degree to which

the garment produced agrees with the sample or specifications.

Who decides the quality level

The consumer of the number of the public who buys a garment from a retail shop
also influences the quality requirements. In many cases this can be negative.i.e he
does not buy, all though in the bigger organization where marketing programs are
carried out the consumer can affect the design quality.

In the majority of cases the customer decides the acceptable levels of quality both
from design and manufacturing aspects. The customer may be a professional
buyer for a large wholesale or retail organization.

The main objective of quality control is to ensure that goods are produced to the
first customer (Direct Order) and hopefully to the second customers (Re​order/ Alter
Order/ New Order) as well.If both customers can be satisfied then the
manufacturer’s products are more likely to be continued in demand. Satisfactory
quality can only be ensured through (from the manufacturers point of view):

❏ Knowing the customers needs

❏ Designing to meet them

❏ Faultless construction

❏ Certified performance and safety

71
 ❏ Clear instruction manuals

❏ Suitable packing

❏ Prompt delivery

❏ Feedback of field experience

Satisfied quality can be ensured from the customers point of view by providing:

❏ Right Product

❏ Right Quality

❏ Right Time

❏ Undamaged Condition

How can quality be achieved?

❏ Goods must be designed to meet customers needs and make manufacturing

process and maintenance easy.

❏ They must be made exactly and consistently to the specified design.

❏ Marketing must ensure accurate advertising, trade description with constant

feedback for improved design.

❏ Total commitment to organized design.

Principles of Quality Management

The objectives to prevent errors by early detection and action are:

❏ The need to make the requirement complete and clear at all levels, from this
specification of a large system to the individual's work construction and
terms of reference.

❏ The detection error by monitoring both product and the method by which it is
produced The prevention of errors at the earliest(right at first time)

❏ The total involvement of all concerning the contribution to the final products
quality. Establish a total forward or backward control system, allowing
flexibility for change.

72
Purpose of Quality control

It is a long standing tradition of any organization to offer the customers first quality
merchandise. The purpose of this control program is to assist manufacturers in
meeting our high standards.

In addition, a company’s quality control program can also help the suppliers with
their operation. Quality control programs not only help spot and reject defective
items, but more importantly they pinpoint production operations that need special
attention, thereby reducing the number of defects in future production. This type
quality control provides basis for management decisions in the manufacturer’s
plant. The defect refers to the condition that renders merchandise of second quality
or unacceptable because the defect is one or more of the following:

❏ It is conspicuous

❏ It will affect the salability of the product

❏ It will affect the serviceability of the product

❏ It is significantly different from the specification

It is understood that all performance and legal requirements should be following the
letter (L/C or any other contract between the buyer and seller) with no deviation
allowed, including (but not limited to) requirement for the following:

❏ Flammability

73
 ❏ Refurbishing(cleaning)

❏ Labeling

Pre-Production Processes in Garment Manufacturing

The processes that are done prior to the start of bulk garment production are
known as pre-production processes. From sample development, approvals,
research and development work for orders, testing of raw material to pre-production
meetings are pre-production processes. Pre-production processes are very
important for efficient production.

A typical garment export house generally has following pre-production processes:

Meeting with buyers

In this stage, the designer of a manufacturing house shows their creations, latest
designs to buyers. On the other hand, if the buyer already had a fixed design of a
style and needed few changes on it related to fit, fabrics or trims they discuss those
things with the merchandiser of the manufacturing unit.

Development of initial samples for the buyer

In this stage after receiving the buyer's concept or instructions on the new style,
samples are made with available fabrics and trims.

74
Development of fabric sample, bit loom, print and embroidery artwork

The fabric is developed as per the buyer requirement. Fabric development means
sourcing of customer specific fabric with matching properties, dyed and finished for
solid colors. For the solid color lab dip approval is a very important process. Until
the lap dip sample is approved merchants re-submit lap dips.

In case of yarn dyed fabrics merchants develop fabric samples with specified
design, stripes or checks. These fabric samples are called Bit Loom. Other
approvals such as print and embroidery artwork approval and color approval are
done. It may be done at a later stage at the time of pre-production.

Costing of a garment (complete cost as well as manufacturing cost)

Merchants prepare a cost sheet with detailed cost break up such as raw material
cost, manufacturing cost, overheads and margin. Costing is a very critical stage.
Because whether a manufacturer will get an order or not depends on their costing.
If the garment cost is very high then the manufacturer may lose the order and on
the other hand, if the factory keeps their cost low, they will not earn profit from the
order. Estimation of the garment cost should be done on data based.

Pattern making, correction of pattern, pattern grading

In a factory,

➔ The pattern master prepares the first fit pattern.

➔ Then re-develop pattern adding buyer comments and rectification on a fit

sample.

➔ After fit approval, pattern master grade pattern for size set samples only for
specified sizes.

➔ Once the order is ready for production they grade patterns for the whole size
range.

Fit sample, size set sample making and approval from buyer

➔ Each sample has a certain purpose.

➔ Samples are made in the sampling department and sent to the buyer for
approvals.

➔ Correction of fit samples according to buyer comments.

➔ If the sample is not approved or further work is recommended by the buyer.

75
 ➔ Correction is done and re-submitted to the buyer.

Approval process

➔ Approval of fabric swatches, print colors, embroidery design, beadworks

➔ Production planning, Material planning and line planning

➔ To start production on time and ship the order on time planning is a must.
Planning is needed for material sourcing, production capacity, line planning.
Scheduling of jobs and responsibility is defined at this stage.

➔ Placing an order for fabrics, trims, accessories and packing materials

➔ Sourcing of raw material. Raw materials include fabrics, all kinds of trims
and accessories.

Testing of fabrics and other raw materials

Physical properties are being tested for bulk fabric. This test can be done in
in-house testing labs.

Study of approved sample​; Sampling of garments is given great emphasis. It

determines the approval of future orders from buyers and fetches business for a
garment manufacturing or export company. Sampling is one of key elements of the
pre-production processes in a garment industry. Before a manufacturer produces
bulk orders, a prior sampling of styles is done to get approvals and jumpstart the
fabrication of garments. Sampling is not just for buyers, but the manufacturers can
also derive estimates of yarn consumption for development of fabric, dyeing,
printing, and stitching cost for a particular style or pattern given by the buyer. a
separate sampling department or a merchandiser, who works closely with the
sampling section to source raw materials, and processes for developing a quality
product for an affordable price. Sampling includes details like a product/ style code

76
or a reference number, color specifications, kind of fabric, composition, description,
quantity, and details of embroidery, buttons, zippers, or any other sort of
accessories used. Hence it can be said that samples of garments work as a bridge
between buyers and the producers.

For operation breakdown, work content, critical operation and line setting. Also
finding the best ways for producing the garment most efficiently in the production
stage.

Pre-production meeting

Once pre-production (PP) sample is approved (also called sealer sample) and most
of the trims are sourced, merchants or production planning departments conduct
pre-production meetings with the production team, quality team and sourcing team.
All important comments, procedures to be followed, dos and don’ts are discussed.
Scheduling of PCD (planned cut date) and shipment date is announced to all
teams.

All operations are studied by GSD experts for motion analysis. At the same time all
operations are videoed for future reference. Calculated SAM of the operations for a
Formal Shirt has been shown in the following table. This has been defined by a
GSD practitioner of a large size Indian garment export company using GSD
software.

77
Textile and Apparel Info graph & Advantage India

78
79
Clearances Required from Respective Authorities
The proposed AMTSC in Sikkim would include development of physical
infrastructure including facilities like production, training, administration, hostel,
canteen, accommodation blocks, utilities etc. keeping in view the long-term
sustainability.

The same would require clearances at different levels during construction such as
approval of layout plan, environmental clearance, electricity and water supply
connection, health and safety clearance and other associated clearances.

Obtaining these clearances would be crucial for timely completion of the project
and therefore needs to be planned well in advance. The following table gives
indicative details of the various clearances along with the respective approving
authorities and the tentative time required.

S.No  Clearance required  Government Department / Authority 

Department of UD & HD/ Rural Development

1 Trade License
Department

2 Goods & Services tax Registration Commercial Taxes Division

Land conversion - Conversion of land

use in concerned government Land Revenue Department
3
department/ whether private land or District Collectorate
alloted

Land Revenue Department

District Collectorate
4 Allotment of plots in Industrial Areas Department of Industries & Commerce
Department of Skill Development &
Entrepreneurship

Environmental Clearance and consent State Pollution Control Board (SPCB),

5
to establish Sikkim

Consent to operate under the Air Act Sikkim State Pollution Control Board
6
and Water Act from (SPCB), Sikkim

7 Electricity connection Energy & Power Department

8 Water connection Department of Public Health Engineering

80
 Fire Safety Sikkim Fire and Emergency Services, Sikkim
9
No Objection Certificate Police

Approval of Site for permission to

Department of Commerce & Industries /
construct buildings under the Factories
10 Rural Development Department/Department
Act & Approval of factory layout plan
of Labour
under factories Act, 1948

11 Registration of trainees and employees Department of Labour

Registration of shops and commercial Department of Labour/ UD & HD

12
establishments Department/Rural Development Department

Cooperative Society registration under

13 Sikkim Cooperative Societies Act, Registrar, Cooperation Department
1981.

81
Quality Systems & Standards
Quality is of prime importance in any aspect of business. Customers demand and
expect value for money. As producers of apparel there must be a constant
endeavor to produce work of good quality. Systems are required for programming
and coordinating the efforts of the various groups in an organization to maintain the
requisite quality. As such Quality Control is seen as the agent of Quality Assurance
or Total Quality Control.

In the garment industry quality control is practiced right from the initial stage of
sourcing raw materials to the stage of final finished garment. For the textile and
apparel industry product quality is calculated in terms of quality and standard of
fibres, yarns, fabric construction, colour fastness, surface designs and the final
finished garment products. However quality expectations for export are related to
the type of customer segments and the retail outlets.

Quality control and standards are one of the most important aspects of the content
of any job and therefore a major factor in training and skill development.

The AMTSC would further aim to obtain various process certificates to enhance its
competitiveness. These include:

Indicative certifications of quality systems

Certification  Area  Details 

This would help to monitor, control, and improve quality

AMTSC
Quality
Management It is a series of standards that define, establish, and maintain a
ISO 9001 System (QMS quality assurance system for manufacturing and service
industries

ISO 9001 deals with the requirements that organizations

wishing to meet the standard must fulfil

Will help to address various aspects of environmental

management of the AMTSC
Environmental
Management
ISO 14000 It provides practical tools to identify and control environmental
System (EMS)
impact and constantly improve their environmental
performance

82
 EMS will equip the TC with procedures appropriate to ensure
that TC operations do not lead to any significant
environment impact.

For quality professional practice, performance and enhance

Learning services
transparency
for non-formal
ISO 29990 education and
Allows for comparison on a worldwide basis of learning
training
services, and management standards in the field of non formal
learning

Gives requirement for energy management systems

Energy
management
ISO 50001 Establishes framework for industrial plants; commercial
systems
institutional and government facilities and entire organisations
to manage energy usage

Specifies requirements for an occupational health and safety

(OH&S) management system, and gives guidance for its use,
to enable organizations to provide safe and healthy
workplaces by preventing work-related injury and ill health, as
OHSAS Occupational well as by proactively improving its OH&S performance.
It provides for the elements of an effective safety management
18001 Health and Safety
standard system which can be integrated with other management
systems and help organizations achieve better occupational
health and safety performance

It helps the organization to assess the potential hazards and

their associated risks due the operations

It provides guidance to those who recognize that respect for

Committed to
society and environment is a critical factor success factor and
operating in a
ISO 26000 as well as the “right thing to do”, application of ISO 26000 is
socially
increasingly viewed as a way of assessing an organisation’s
responsible way
commitment to sustainability and its overall performance

is an international standard published in 2009 that provides

Principles,
principles and guidelines for effective risk management. It
framework and
ISO 31000 outlines a generic approach to risk management, which can be
process for
applied to different types of risks (financial, safety, project
managing risk
risks) and used by any type of organization.

83
Infrastructure & Facilities
The infrastructure of the proposed AMTSC in Sikkim has to be developed based on
the requirements, recommended norms, capacity data of any existing Apparel
Training Center capacity, discussions with key stakeholders and the experience of
the team in providing professional advice on similar projects.

The team has studied the applicable Lab infrastructure guidelines under Pradhan
Mantri Kaushal Kendra scheme of National Skill Development Corporation of India
under the Ministry of Skill Development and Entrepreneurship.The norms for
development of infrastructure facilities Apparel and Garment Skill Training institutes
and detailing out the infrastructure provisions for the proposed AMTSC in view of
the same. Leading practises from international training institutes have also been
considered.

The AMTSC should be built on area of around 5 acres and the layout will have
following blocks with required infrastructure:

Training Block

This area will have classrooms, labs, conference hall, faculty rooms and facilities
for training / seminars/ workshops etc. The area will be divided into classrooms to
provide theory classes with overhead projectors and white boards. Production
training rooms and Innovation and Design Centre( ID&C) and space for future
growth.

84
Garment Manufacturing Block

This block will house the Ready Made Garment Manufacturing unit and highest
priority has been given to the allocation of space for garment
manufacturing.Depending on the space required by the machines, the area for
these activities should be demarcated which would also include other facilities like
toilets, washrooms and change rooms, adequate space for their mobility, clean
drinking water in their vicinity etc. In addition to the other facilities this

Administrative Block

This block will have GM Office and house office and desk space for all
management, professional staff, administrative and support staff, library and other
amenities such as conference room with video conferencing facility,meeting rooms
etc. This block will also house the Innovation and Design Centre which will consist
of offices for the innovation and design teams and conference rooms for client
interactions.

Manufacturing Incubation Block

This block will consist of around 2 demarcated rooms of 200-400 square feet for
house facilities for 4-5 entrepreneurs. In addition the block will include office
facilities, conference room with video conferencing facility, meeting rooms,reception
area etc. for common use of the entrepreneurs.

Utilities Block

The utilities block comprises areas that will house the main electrical meter,
distribution panel and power back up DG plant. The utilities block will also house
water pumps, water treatment areas around the building will also have some
utilities provision such as rain water harvesting. Utility will also include a sewage
treatment plant at an appropriate location.

Hostel and Staff Accommodation

The hostel blocks will comprise accommodation for the students (separate for
males and females). A few staff quarters (for driver, security officer, wardens –
boys and girls hostel, maintenance –mechanical and electrical, electrician, store
keeper etc.) will also be constructed to house some of the emergency staff or on
need basis.

85
Open Areas

The open areas comprise a driveway, landscaped areas including the facade and
main entry of the AMTSC , generator shed, extra rainwater storage tanks area.

Other Areas

Other functional areas of the infrastructure requirements are Kitchen, pantry and
canteen areas for meals and refreshment during working hours, parking, security
room

Apart from the above facilities AMTSC will have basic amenities with provision for:

R.O Drinking water, Toilets (Male/ Female/ Third Gender - if necessary), Dining
room, Changing rooms, Personal lockers for secure and clean storage of personal
belongings or clothing, Immediate availability of sufficient first aid kits, nursing and
health supervisors, doctors on call, ambulance, Fire safety with smoke alarms and
periodic fire safety awareness and fire drills from time to time and SOPs for fire
assembly area, Dustbins with proper colour coding in green for organic, yellow for
glass, white for paper,grey for metal, blue for plastic, red for hazardous products.

86
Expenditure Pattern
Capital Expenditure

Total capital expenditure to the tune of around INR 271.36 lakhs is envisaged for
the setting up of AMTSC .

The Cost of Civil Construction to the tune of around INR 80 lakhs is envisaged for
the setting up of AMTSC in Sikkim

Civil Construction Cost

ESTIMATED COST 
Sl. No.  DESCRIPTIONS  AREAS  AVG. RATE (Rs.)  
(Rs. In Lacs)  
1 Production Area 7000 800.00 56.00
2 Raw Material Store Room 600 800.00 4.80
3 Finished Goods Store Room 600 800.00 4.80
4 Admin Block 300 800.00 2.40
Boundary Wall and Other Misc
5 1500 800.00 12.00
Const.
Total  10,000      80.00  

In addition to the above mentioned capital expenditure, expenses to the tune of INR
59.73 lakhs will be incurred towards setting up the classrooms with modern
facilities, furniture and other preoperative expenses.

Details Of Computers & Software

ESTIMATED COST 
Sl. No.  DESCRIPTIONS 
(Rs. In Lacs)  
1 Computer with Internet Connectivity 5.00
2 Autocad & Plotter Software 15.00
Total  20.00  

Details Of Other Fixed Assets

ESTIMATED COST 
Sl. No.  DESCRIPTIONS 
(Rs. In Lacs)  
1 Generator & Electrical Installation 5.00
2 Furniture & Office Equipments 3.00
3 Other Misc Assets 5.00
Total  13.00  

87
Details Of Preoperative Expenses
ESTIMATED COST 
Sl. No.  DESCRIPTIONS       
(Rs. In Lacs)  
Pre-operative & Preliminary
1 16.00
Expenses
Total  16.00  

Details of Contingencies
ESTIMATED COST 
Sl. No.  DESCRIPTIONS  COST  RATE  
(Rs. In Lacs)  
1 Building 80.00 5.00% 4.00
2 Plant & Machinery 101.63 5.00% 5.08
3 Computers & Softwares 20.00 5.00% 1.00
4 Other Fixed Assets 13.00 5.00% 0.65
Total  10.73  

Details Of Plant & Machinery

Total expenditure on Plant & Machines is expected to be around INR 101.63 lakhs.

ESTIMATED COST 
Sl. No.  DESCRIPTIONS 
(In Lacs)  
1 Fabric Inspection Machine 1.30
2 8" Power driven cloth cutting machine 0.63
3 Single Needle Lock Stitch with motor 15.00
2 Needle Overlock Safety Stitching Machine with Edge
4 2.50
Trimmer
5 Double Needle Lock Stitch Machine 7.50
6 Double Needle Feed of the Arm Machine 5.00
7 Button Holing Machine 7.25
8 Button Stitching Machine 3.75
9 Hot Fusing Press 4.50
10 Garment Washing Machine ( 25 Kgs) 2.90
11 Hydro-Extractor (25 Kgs) 1.50
12 Tumble Dryer (25 Kgs) 2.80
13 Flat Bed Steam Iron Press with Vacuum Table 6.00
14 Embroidery machine 10.00
15 Washing Room Trolley 1.00
16 Testing Tools 0.50
17 Training Aid 2.50

88
 18 Training Modules 5.00
19 Projector & Copying Machine 1.00
20 CCTV and Other Security Devices 1.00
21 Erection & Commissioning 20.00
Total  101.63  

The assumed cost of land for setting up AMTSC is Rs.30 Lacs.

Operating Expenditure
The operating expenditure for AMTSC has been classified into ​variable operating
expenditure and ​fixed​ operating expenditure.

Variable operating expenditure

Variable operating expenditure has two key heads.

Expenditure under each head has been identified for the key income streams:

1. Raw materials and Consumables

A. Raw materials for Manufacturing

B. Raw materials for Training

Year  Total Uniform  Fabric Cost  Other Raw  Total Raw  Total Cost 
Production (Nos)  per Uniform  Materials per  Materials cost  (Rs. in Lacs) 
Uniform  per Uniform 

Year 1 162,000.00 400.00 30.00 430.00 696.60

Year 2 175,500.00 420.00 31.50 451.50 792.38

Year 3 189,000.00 441.00 33.08 474.08 896.00

Year 4 202,500.00 463.05 34.73 497.78 1008.00

Year 5 216,000.00 486.20 36.47 522.67 1128.96

Year 6 229,500.00 510.51 38.29 548.80 1259.50

Year 7 243,000.00 536.04 40.20 576.24 1400.27

89
2. Utilities & Other Expenses

POWER / FUEL & WATER CHARGES 

Year  Total Uniform Production  Rate of Power per Uniform  Total Cost (In Lacs) 
(Nos) 

Year 1 162,000.00 3.50 5.67

Year 2 175,500.00 3.68 6.45

Year 3 189,000.00 3.86 7.29

Year 4 202,500.00 4.05 8.20

Year 5 216,000.00 4.25 9.19

Year 6 229,500.00 4.47 10.25

Year 7 243,000.00 4.69 11.40

Year  Total Uniform Production  Rate of Freight per Uniform  Total Cost (In Lacs) 
(Nos) 

Year 1 162,000.00 2.25 3.65

Year 2 175,500.00 2.48 4.34

Year 3 189,000.00 2.72 5.15

Year 4 202,500.00 2.99 6.06

Year 5 216,000.00 3.29 7.12

Year 6 229,500.00 3.62 8.32

Year 7 243,000.00 3.99 9.69

OTHER ADMIN CHARGES 

Sales  Repair &  Total Cost 

Year  Consumables  Other Misc 
Promotion  Maintenance  (In lakhs) 

Year 1 8.00 0.75 0.75 0.50 10.00

90
 Year 2 8.40 0.79 0.79 0.53 10.50

Year 3 8.82 0.83 0.83 0.55 11.03

Year 4 9.26 0.87 0.87 0.58 11.58

Year 5 9.72 0.91 0.91 0.61 12.16

Year 6 10.21 0.96 0.96 0.64 12.76

Year 7 10.72 1.01 1.01 0.67 13.40

Fixed Operating Expenditure

Fixed operating expenditure has the following key heads.

Expenditure under each head has been identified for the key income streams:

1. ​Salary and wages/ establishment expenses

A. The salary expenses include salary for employees of proposed AMTSC in

Sikkim.

B. There will be 14 administrative staff and 79 employees ~ 60 will be on the

job training basis with a provision to induct as regular employees.

Particulars  Total Nos.  Monthly Salary  Annual Salary (Rs in lakhs) 

A. Administrative

1. Accounts Officer 2 15000 3.60

2. Marketing Executive 4 15000 7.20

3. Receptionist 1 10000 1.20

4. Pantry Staff 2 6000 1.44

5. Peon / Clerk 2 10000 2.40

6.Guards 3 10000 3.60

Total Administrative Salaries 19.44  

91
B. Direct Wages & Salaries

1. Head of Operation 1 30000 3.60

2. Counsellor 1 12000 1.44

3. Pattern Master 2 30000 7.20

4. Inline Master 2 20000 4.80

5. Cutting Master 2 20000 4.80

6. Production Associate 50 16000 96.00

7. Merchandiser 2 30000 7.20

8. Computer Operator 2 30000 7.20

9. Finishing Expert 10 12000 14.40

10. Press Master 2 15000 3.60

11. Runners 3 10000 3.60

12. Warehouse Manager 2 15000 3.60

Total Direct Wages & Salaries 157.44  

Salary is Expected to Increase by 10% per annum 

Direct Wages &  Administrative  Total (In Lakhs) 

Salaries  Salaries 

Year 1 157.44 19.44 176.88

Year 2 173.18 21.38 194.57

Year 3 190.50 23.52 214.02

Year 4 209.55 25.87 235.43

Year 5 230.51 28.46 258.97

Year 6 253.56 31.31 284.87

Year 7 278.91 34.44 313.35

92
2. ​Repairs and maintenance​ (R&M)

A. Cost of repair and maintenance has been calculated for:

B. Plant and machinery installed R&M for plant and machinery has been taken
as a percentage of plant cost in an operating year.

C. BuildingsR&M for building has been taken as a percentage of building cost

in an operating year

3. ​Training expenses:

Training expenses primarily comprise expenses incurred for faculty and visiting
faculty to AMSTC from time to time as part of Short term and Long term training.
These expenses typically include faculty fees, hotel and transportation.

4. ​Other production and administration expenses:

A. These include expenditure on heads like transportation/entry tax/ freight,

Vehicle expenses, Printing and stationery, traveling and conveyance, audit,
consultancy, advertisement, publicity, marketing, telephone, internet, bank
charges, miscellaneous expenses. Expenditure under each head has been
identified for the key income streams - Finished goods and Training

B. Insurance of new plant and machinery Insurance expense for new plant and
machinery includes the insurance cost for the new machinery to be installed.
The same has been calculated as a percentage of the gross block of new
machines.

C. Marketing Expenses Marketing expenses have been taken as fixed values

for first year and second year onward.

Descriptions  Year 1   Year 2   Year 3   Year 4   Year 5   Year 6   Year 7  

Variable Expenses 695.44 979.4 111.89 1242.41 1383.93 1537.25 1703.2

Fixed Expenses 72.55 64.96 59.51 55.57 52.76 50.85 49.68

93
Financial analysis
Key assumptions
Project construction and commencement of operations

The project construction is expected to start in the calendar year 2021. It is

assumed that the construction period and installation of machines shall be
completed in 3 months. Full-scale operations will commence at the end of the
construction period of 3 months. The infrastructure development will coincide with
the arrival of machines to be able to start the operations as planned.

Start of Project   1-Jan-2021  

Construction period (Months)   3 

Commencement of operation  1-April-2021 

Number of years, useful life of machines and equipment 

10 
(as per depreciation rules) 

Maximum days of operation in a year  300  

Income assumptions
Overall Income is the sum of the following​:

1. Income from sales of Ready Made Garments: 

Year  Year 1 Year 2 Year 3 Year 4 Year 5

Total Sales  795.35 1041.62 1201.09 1377.78 1573.32

All figures in lacs

94
2. Income from Training: 

Year  Year 1 Year 2 Year 3 Year 4 Year 5

Total Sales  46.08 49.92 53.75 60.47 64.51

All figures in lacs

Working capital and cash flow statement

Overall net working capital requirement for AMTSC is expected to grow from about
INR 486.20 lakhs in 2021-22 to INR 833.28 lakhs by year 2025-26.

WORKING CAPITAL ANALYSIS  (Rs. In Lacs)

Sl Descriptions Period Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7

No (Days)

1 Raw Materials 60 114.51 130.25 147.29 165.70 185.58 207.04 230.18

2 Work in progress 45 111.20 124.25 138.71 154.61 171.98 190.90 211.45

(Based on Cost of
Production)

3 Finished Goods 45 97.49 122.64 136.93 152.65 169.84 188.56 208.91

(Based on Cost of
Sales)

4 Sundry Debtors 60 130.74 171.23 197.44 226.48 258.63 294.16 333.40

(Based on Sales)

5 Working
Expenses:

a) Direct Wages & 60 25.88 28.57 31.32 34.45 37.89 41.68 45.85
Salaries

b) Power & Coal 60 0.93 1.06 1.20 1.35 1.51 1.69 1.87

c) Factory 60 0.89 1.02 1.16 1.33 1.52 1.73 1.98

Overhead

d) Administrative 60 3.24 3.56 3.91 4.30 4.73 5.20 5.72

Overhead

e) Selling & 60 1.32 1.38 1.45 1.52 1.60 1.68 1.76

Distribution
expenses

6 WORKING 486.20 583.96 659.41 742.39 833.28 932.64 1,041.12

CAPITAL GAP

95
ANNEXURE - "F" 

PROJECTED CASH FLOW 

(Rs. In Lacs)  

SOURCES OF FUNDS  Pre-op. yr  Year 1  Year 2  Year 3  Year 4  Year 5  Year 6  Year 7 

Net Profit before

Interest & Tax 120.45 91.89 125.86 180.39 240.45 309.95 393.74

Capital 110.39 133.10 - - - - - -

Term Loan from Bank 160.97 - - - - - - -

Working Capital Loan - 353.10 - - - - - -

Depreciation - 36.88 29.59 24.25 20.20 17.05 14.52 12.46

 
TOTAL (A)   271.36   643.53   121.48   150.11   200.59   257.50   324.47   406.20  

OUTFLOW OF FUNDS

Fixed Assets & Capital

Expenditure 271.36 - - - - - - -

Increase in Working
Capital 486.20 97.65 75.56 82.98 90.89 99.36 108.48

Repayment of Term
Loan - 23.00 23.00 23.00 23.00 23.00 23.00 23.00

Interest on Term Loan - 15.23 12.94 10.64 8.34 6.04 3.74 1.44

Interest on WC Loan - 31.78 31.78 31.78 31.78 31.78 31.78 31.78

Taxation - 22.91 8.10 14.32 24.07 34.77 47.09 61.87

Further Investment - - - - - 50.00 100.00 150.00

 
TOTAL (B)   271.36   579.12   173.47   155.30   170.17   236.48   304.97   376.57  

96
NET SURPLUS (A - B) - 64.41 (51.99) (5.19) 30.42 21.02 19.50 29.63

OPENING BALANCE - - 64.41 12.42 7.23 37.65 58.67 78.17

CLOSING BALANCE - 64.41 12.42 7.23 37.65 58.67 78.17 107.80

​Projected Balance Sheet

(Rs. In Lacs)  

Descriptions   Year 1   Year 2   Year 3   Year 4   Year 5   Year 6   Year 7  

Liabilities

Capital 243.49 243.49 243.49 243.49 243.49 243.49 243.49

Profit & Loss A/c 50.53 89.61 89.61 274.94 442.80 670.13 968.79

Term Loan from

Bank 137.98 114.98 - 68.99 45.99 23.00 -

Working Capital
Loan 353.10 353.10 353.10 353.10 353.10 353.10 353.10

TOTAL (A)   785.09   801.18   686.20   940.52   1,085.38   1,289.72   1,565.38  

Assets

Fixed Assets 234.48 204.89 180.64 160.44 143.39 128.86 116.40

Current Assets 486.20 583.85 659.41 742.39 833.28 932.64 1,041.12

Cash in hand and

bank 64.41 12.44 7.26 37.69 58.71 78.22 107.86

Investment - - - - 50.00 150.00 300.00

TOTAL (B)  785.09  801.18  847.31   940.52   1,085.38   1,289.72   1,565.38  

97
Profitability
The net profit after taxes would likely grow from INR 50.53 Lakhs in FY22 to INR
167.86 in FY 26 at a healthy rate of 10.25%.

Break Even Analysis

Sl.No  Descriptions   Year 1   Year 2   Year 3   Year 4   Year 5   Year 6   Year 7  

1 Installed Capacity (Nos) 270000 270000 270000 270000 270000 270000 270000

2 Capacity Utilised (in %) 60% 65% 70% 75% 80% 85% 90%

3 Capacity Utilised (Nos) 162000 175500 189000 202500 216000 229500 243000

4 INCOME 841.43 1091.54 1254.85 1438.25 1637.83 1858.02 2104.4

5 VARIABLE EXPENSES 695.44 979.4 111.89 1242.41 1383.93 1537.25 1703.2

6 CONTRIBUTION (A - B) 145.99 112.14 1142.96 195.84 253.9 320.77 401.2

7 FIXED EXPENSES 72.55 64.96 59.51 55.57 52.76 50.85 49.68

8 P/V Ratio [(C x 100) / A] 17.35 10.27 91.08 13.62 15.50 17.26 19.06

11.14
9 BEP (%age) [D x 100 / E] 29.82% 37.65% 29.14% 21.28% 16.62% 13.47% %

10 Break Even Point (Nos) 80514 101655 78678 57456 44874 36369 30078

11 Cash BEP (in %)

[(Fixed Cost - Dep) x 100] / E 14.66% 20.50% 17.27% 13.54% 11.25% 9.62% 8.35%

12 Cash BEP (Nos) 39587 55353 46617 36570 30384 25986 22541

98
Environment, Health & Safety
Effective management of environmental, health, and safety (EHS) issues entails
the inclusion of EHS considerations at various levels during project implementation.
An assessment has been done of the proposed operations of AMTSC and their
EHS impacts are highlighted below:

Planning and Design

AMTSCs are like mini industries; hence planning, development and management of
the AMTSCs involve several critical environmental, health and safety obligations.
Good environment practices and processes are required to be an integral part of
any expansion or development of any green-field AMTSC. The foremost and most
essential stage of environment management is to conduct an environmental
screening that highlights appropriate level and type of Environmental aspects and
their likely associated environmental impact.

AMTSC is to be located in an industrial zone/unit allotted/developed by the Skill

Development and Entrepreneurship Department and/or the Department of
Commerce and Industries, Government of Sikkim. The land or building/structure
allocated for AMTSC by the government should involve acquisition of
land/building/structure keeping in mind the sound benefit of the surrounding area
and neighbourhood.

99
There should be no archaeological or cultural/heritage structure in the vicinity of the
site. Also, there is no biodiversity sensitive or protected area in the vicinity which is
likely to be affected by the operations of the unit.

Environmental and Social Screening

Environmental and social screening enables the envisaged risks to be addressed at
the very beginning of designing and conceptualizing the implementation of the
expansion or the green-field development.

The two main objectives of environmental and social screening are to:

1. Enhance the environmental and social sustainability of a proposed project.

This aspect of screening focuses on the environmental and social benefits of
a project.

2. Identify and manage environmental and social risks that could be associated
with a proposed project. This aspect of screening focuses on the possible
environmental and social costs of an intervention and may point to the need
for environmental and social review and management.

The screening process aims to quickly identify those projects in which no potential
environmental and social issues exist, so that only those with potential
environmental and social implications will undergo a more detailed screening
process. As a consequence, the outcome of the screening process will be a
categorization of the project into one or more of the following categories:

1. Category 1: No further action is needed, either because no significant

environmental impact and risks were identified, or because sufficient
environmental review has already been conducted and environmental
management recommendations have been incorporated into the project;

2. Category 2: Environmental sustainability elements need to be integrated into

project design because there are possible environmental and social benefits,
impact, and/or risks associated with the project (or a project component) but
these are limited in nature, predominantly indirect or very long-term and so
extremely difficult or impossible to directly identify and assess.

3. Category 3: Further environmental and social review and management is

needed because potential environmental and social impact or risks are
associated with the project (or a project component) and it is possible to
identify these with a reasonable degree of certainty. In some cases,
determining the significance of these impact or risks will require

100
 environmental and social assessment which, in turn, will lead to the
identification of specific environmental and social management measures
that need to be incorporated into the project

Cleaner Production Applications

The following practices will be undertaken by AMTSC for cleaner production
practices for practices for waste reduction at source.

Administrative preventions

It is one of the simplest methods of cleaner production and it is not costly because
there is no investment and it can be put into practice immediately after determining
the possibilities. Examples are the prevention of water, energy and other source
losses such as keeping the water vents closed, optimizing chemical dosing,
wasting equipment, etc. Moreover, focusing on the management and training of
employees can also be done under this heading.

Better process control

Within this heading; temperature, time, pressure, pH, process speed etc. are to be
checked to see if they are optimum in terms of welding consumables, production,
and waste production, and to make appropriate changes if necessary. This part
requires more complex monitoring and management than administrative measures.

Material substitution

This means that the productivity of the production is increased by the use of a
higher quality material without compromising quality and cost. In addition, material
substitution also means replacing existing materials with some more
environmentally friendly materials. For example, replacing a dyestuff containing a
hazardous chemical with an environmentally friendly one means that the
purification requirements and costs that would be caused by the hazardous
chemical substance are either eliminating or falling down.

Equipment modification

Equipment modification is the development of present equipment to produce fewer

waste and to ensure more efficient production processes. Examples include setting
engine speeds, optimizing tank volumes, isolation of hot pipes, and so on.

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New process technology

Because this method involves the use of more modern and efficient technologies, it
requires a higher initial investment cost than other methods. However, with the
developments of quality and savings the investment can be repaid in a very
short-dated way and with this application the company can more easily switch to
more up-to-date and modern production processes. Such applications also provide
improvements in product and production quality.

Reuse/ Recycling

Reusing rinse water from one process to another cleaning process is an example of
on-site recycling or reuse. It involves collecting waste and reusing it in the same or
different parts of the production. Non-preventable wastes can be recycled or sold
as an offshoot. This includes the creation of by-products, the sale of waste to
consumers or other firms after collection of waste.

Product modification

One of the basic headings of cleaner production to reduce the pollution caused by
products is to change product characteristics. Changing the product requires that
the product and its requirements be reviewed again. Reducing the weight and the
thickness of the products, designing that allows the product to be more easily
recycled, changing the packaging are examples of this approach. The main point of
view in the change of packaging is that the protection of the product is guaranteed
by the minimum amount of packaging material.

102
Tools and Methods For Cleaner Production

The choice of which tools are used to determine the use of cleaner production
opportunities according to their application areas depends on the problem in
operation and the work to be done. Single or multiple tools can be used based on
the nature of the problem.

Environmental Impact Assessment (EIA)

This is a procedure, which provides that environmental effects are taken into
account before making decisions. EIA includes identification of the positive and
negative effects of the planned projects on the environment, determination of the
measures to be taken to forestall and decrease these negative effects, and
monitoring the implementation of the projects.

Environmental Management System (EMS)

It aims at the management of activities that are linked to each other, have an
environmental impact or have potency. Phases of this system; environmental
policy, planning, implementation and operation, control and correction process,
management inspection. It provides a mechanism to firms for thinking about the
environment, deciding what to do and planning how to do it, actually applying it,
and correcting deviations in the plan.

Life Cycle Assessment (LCA)

It is also named “life cycle analysis”, “life cycle approach”, “cradle to grave analysis”
or “eco balance”, includes an assessment of aspects of a product system that are
generally relevant to the environment at entire phases of its life cycle. In other
sense, it is the cluster of means and methods that have emerged to aid in
environmental management for sustainable development. The LCA can be used to
systematically analyze and to prevent/mitigate negative impacts on the
environment caused by the goods and services from production to disposal, and to
determine resources used throughout their life cycle and to improve opportunities.

Environmental Technology Evaluation

Environmental impact assessments of various plants and projects involve the

discharge of the use of various technologies and the determination of the risks of
these technologies on human health and environmental values ​using qualitative

103
and quantitative methods. In summary, it examines the effects of a specific
technology on human health and natural systems and resources.

Chemical Evaluation

In this context, the toxic effects and quantities of the chemical substances used in
the production phase are analyzed to evaluate jeopardy on the health of humans
and the environment. It also includes methodologies for hazard and exposure
assessment.

Waste Inspection

Input/output inventories of processes, source, quality and quantity of wastes

generated, efficiency and weak points of the current process, waste minimization
targets for cleaner production are determined with waste control. Thus, losses are
reduced/prevented to increase process efficiency.

Environmental Inspection

It is the most commonly used and most important application tool of cleaner
production. Its scope is to specify the quantity and character of the waste from the
production process/services and to make decisions about what needs to be done to
reduce the pollution. Because it is a very effective tool, there are types developed
for different purposes such as waste, energy and risk monitoring.

Eco-label/ Environmental Labeling

An eco-label indicates that a product or service is sensitive to the environment in a

particular category. Ecolabelling is implemented worldwide and is a voluntary
method for certificating environmental performance.

Water Footprint

For a single process or product, it measures the volume of clean water consumed
and/or contaminated by humanity. It may also indicate how much water is
consumed from a particular river basin or aquifer from globally/country.

Carbon Footprint

The carbon footprint that comes to mind with the climate change problem is
described as the sum amount of greenhouse gasses which are spread by an
institution, person, activity or product. According to the definition of Wiedmann et al.

104
"The carbon footprint is a measure of the exclusive total amount of carbon dioxide
emissions that is directly and indirectly caused by an activity or is accumulated over
the life stages of a product". CO2 equivalents or Global Warming Potential (GWP)
was described as how many other greenhouse gasses have the same heat holding
capacity in the atmosphere compared to the same amount of CO2 for a given
period of time. With this unit, the effect of all greenhouse gasses can be collected
and expressed in a common unit.

Risk Assessment

The risks to be caused by a specific event on the sanitation of humans and the
surrounding and the precautions to be taken about these risks are determined by
this method. Policy instruments applied to encourage cleaner production may
include legal legislation, voluntary standards, economic instruments (taxes and
penalties, state aid, financial mechanisms, etc.), information and technical
assistance.

Basic requirements for EHS management

The following section outlines the details of the essential measures to be
undertaken for sound EHS management within AMTSC;

Storm Water Management

Storm water includes any surface runoff and flows resulting from rain, drainage or
other sources. Typically, storm and water runoff contains suspended sediments,
metals,petroleum hydrocarbons, Polycyclic Aromatic Hydrocarbons (PAHs),
coliform, etc. Rapid runoff, even of uncontaminated storm water, also degrades the

105
quality of the receiving water by eroding streambeds and banks. In order to reduce
the need for storm water treatment, the following principles would be applied:

➔ Storm water would be separated from process and sanitary wastewater

streams in order to reduce the volume of wastewater to be treated prior to
discharge.Surface runoff from process areas or potential sources of
contamination would be prevented.

➔ Where this approach is not practical, runoff from process and storage areas
would be segregated from potentially less contaminated runoff Runoff from
areas without potential sources of contamination would be minimized (e.g.
by minimizing the area of impermeable surfaces) and the peak discharge
rate would be reduced (e.g. by using vegetated swales and retention ponds)

➔ Where storm water treatment is deemed necessary to protect the quality of

receiving water bodies, priority would be given to manage and treat the first
flush of storm water runoff where the majority of potential contaminants tend
to be present;

➔ When water quality criteria allows, storm water would be managed as a

resource, either for storage and meeting water needs at the facility from the
unit roof, parking areas, and other roofed areas.

Fire Risk Management

Fire Alarm System

Automatic Fire alarm systems will be provided in all buildings of AMTSC excluding
student hostels and emergency staff quarters. The system will have appropriate
provisioning of smoke detectors and beam detectors with respect to the sensitivity
and probability of fire. Fire alarm panels will be provided at appropriate locations
with easy and convenient accessibility for manual activation of alarm in case failure
of automatic system. A control panel will be provided at the control station with a
repeater panel in the security cabin to activate, deactivate and reset the fire alarm
system. The instrumentation, panels, sensors and equipment used will be of
certified make confirming to relevant standards. Smoke detectors and beam
detectors will be installed above and below the false ceiling as applicable.

Fire Fighting System

Mapping of potential fire risk shall be done across AMTSC and fire extinguishers
(CO2 and powder based) will be placed in relevant areas. Maintenance of fire
extinguishers shall be undertaken on an annual basis.

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Rain Water Harvesting

AMTSC will be divided into 4 or 5 areas and the storm water from the roof top of
each building in each area will be collected in the specified area. The storm water
outlets on building roofs will be checked for adequacy with respect to size
considering maximum rainfall intensity. The outlets will be provided with vertical
down take pipes, which will be connected to the existing extra storage water tanks
and therefore to the storm water drainage storm water lines through nearby
chambers.

Sewage Treatment Plant

A sewage treatment plant with integral effluent treatment will be provided for
primary and secondary treatment.

Ventilation system

Internal buildings

The AMTSC premises will have provision for sufficient ventilation. This will be done
keeping in view the amount of space in the TC, number of people expected to
occupy the space, type and amount of machines/equipment, and overall size of the
space. The designing will be done keeping in view proper distribution of air for
ventilation throughout all occupied spaces across the TC.

Natural ventilation

The premises will have adequate openings, such as doors, windows and/or vent
opening to clean air. Roof vents would be placed wherever applicable to reduce the
reliance on air conditioning systems. Air input, smoke exhaust will also be installed
and maintained for proper ventilation.

Manufacturing/ Production area

The production area will be provided with an air cooling and heating system.

UPS room

Appropriately designed ventilation system will be provided to the UPS room. The
ventilation system will mainly consist of air conditioning units providing cold air at
lower temperature and exhaust system taking out hot air coming out of the UPS.
The system will be designed to maintain adequate temperature around the UPS
equipment as per manufacturer’s requirements/ specifications.

107
Monitoring

EHS monitoring programs would be undertaken to verify the effectiveness of

prevention and control strategies. The selected indicators should be representative
of the most significant EHS aspects, and the implementation of prevention and
control strategies. The monitoring program would include EHS inspection/Audits,
Calibration of the equipment, Surveillance of the working environment, Surveillance
of workers health.

Environmental Health and Safety (EHS) Policy

1
➔ Develop or review EHS policy
➔ Share management commitment to the policy with all personnel

Planning
➔ Identify EHS concerns
➔ Assess risk and control capability
2
➔ Identify legal requirements applicable to the organization
➔ Develop a process to keep track of legal requirements and changes in
laboratory work
➔ Establish objectives and targets for the EHS policy

Implementation
3
➔ Develop a process and organisational structure for communications

108
 ➔ Define a group to make decisions regarding external communications
➔ Define roles and responsibilities
➔ Develop and implement training as needed
➔ Define a process for maintaining documents
➔ Establish an organisational structure for responding to emergencies and
accidents

Performance Measurement, Audits and Change Management

4 ➔ Track key performance measurements
➔ Establish a system to investigate incidents and take appropriate actions
➔ Establish processes for controlling risks associated with changes to operations

Management Review

5 ➔ Engage management in the identification of objectives and target of the EHS

policy
➔ Perform annual management review
➔ Document decisions and recommendations

109
Social and Environmental Safeguards
Composition of Workforce , Employment & Unemployment Issues

According to the Census 2011, the number of total workers increased from
2,63,043 in 2001 to 3,08,138 in 2011 — an increase of 17% in a decade. Majority
of the population in Sikkim district is engaged in the primary and tertiary sectors.

The Primary sector

The Primary Sector employs a major proportion of people that are associated with
farming. There has been a gradual shift in employment & labour from agriculture
towards different sectors in Sikkim’s. Between 2004 and 2012, the increase in the
industry share from 29 to 55% has contributed to the decline in the share of
agriculture from 18 to 8%, and in services from 53 to 38%.

The number of cultivators in the state has decreased by more than 10% between
2001–2011. However, there has been more than 50% increase in the farm
labourers and over 44% increase in "other" workers. With the youth quitting
agriculture, increasing tracts of land are lying fallow. The increasing urbanisation
has also led to the sky-rocketing of land prices.

The Tertiary sector

The tertiary sector employs a large proportion of people, mostly in government
services or tourism sector being the largest contributor to the district’s economy.
The tertiary sector (services) employed 26% of the workers.

The Secondary sector

The Secondary sector accounts for the majority of the workforce in the private
sector in the pharmaceutical, food processing and liquor factories established in
Sikkim. Another 13% of the workers are employed in manufacturing, electricity,
water supply and construction, with more than half of them being employed in
construction.

The job aspirants in the state mostly look forward to being employed in the public
sector as there are very limited opportunities in the private sector. According to the
State Socio-Economic Survey (2006), 18.5 percent of the main workforce was
government employees and 73 percent of them were regular employees. Salaried
employees in the private sector were only 5.4 percent of the workforce.

Of the total workers, 62% continue to be engaged in agriculture, forestry and

fishing.

110
A majority (55%) of this increase was in the category of marginal workers. The work
participation rate has increased by almost 2 percentage points in the decade
2001-11. Among the marginal workers, about 30% were found to be employed for
almost three months.

Government jobs in demand

Sikkim government is the largest employer in the formal sector.

The job aspirants in the state continue to look forward to employment opportunities
in the government. Educated youth in the urban areas are keen to be employed in
the public sector as there are very limited opportunities in the private sector.

According to the State Socio-Economic Survey 2006, 18.5% of the main workforce
was employed in the government with 73% of them on the regular payroll.

Nearly 3% of those employed by the government are in the central government and
public sector undertakings. Salaried employees in the private sector accounted
for only 5.4% of the workforce.

Focus on self-employment
There has been a gradual shift in the contribution of different sectors to Sikkim’s
GSDP (gross state domestic product).

Between 2004 and 2012, the increase in the industry share from 29 to 55% has
contributed to the decline in the share of agriculture from 18 to 8%, and in services
from 53 to 38%.

In spite of growing industry share in the GSDP, the movement of labour from
agriculture to industry and services has been relatively slow. In 2011–12, close to
62% of the Sikkimese were employed in agriculture, forestry and fishing compared
to the national average of 48.9%.

Only 13% were employed in the secondary sector (mining, manufacturing,

electricity, gas, water supply and construction), with more than half of them being
employed in construction.

The remaining 25% of the workers are self-employed — almost similar to the
national average of 27%. When further broken down, 6% were employed in
wholesale and retail trade as well as in the repair of automobiles and motorcycles.

It is not surprising that Sikkim has a high proportion of self-employed workers given
the limited opportunities in the public and private sectors. The proportion of

111
self-employed in Sikkim (731 per 1,000) is higher than the average for the
north-eastern states (658) and also for the country (522). Only Nagaland and
Arunachal Pradesh have more people self-employed than Sikkim in the north east.

Another positive factor is that Sikkim has only a small proportion of casual workers
(47 per 1,000 labourers). According to the State Socio-Economic Survey 2006,
only 36.3% of the population was found to be working in various enterprises like
government-owned, private, household or otherwise. A further 33% of the
population were students enrolled at different levels.

The absolute number of unemployed was estimated at 26,811, of which there were
17,620 in the age group 15–34 years. Almost 88% of the unemployed youth were
from rural areas and the East district accounted for almost 50% of the total
unemployed. More than 75% of these unemployed youth had secondary school
or lower levels of education. Recent estimates by the government place the
number of unemployed youth at 21,000.

Despite many limitations, Sikkim has registered the third highest growth in
employment between 2005 and 2013, according to the results of the 6th All-India
Economic Census. The state has recorded the second highest percentage growth
in total number establishments (factories or business units) between 2005 and
2013. The growth rate of establishments in Sikkim is at 102.92%, which is an
impressive 2.5 times the overall national growth of 41.74%. Sikkim has registered
a massive growth in job creation achieving 77.14% growth in employment, 2.25
times the national employment growth rate of 34.35% from 2005 to 2013.

On gender equality in the workplace, Sikkim ranks 5th with the percentage of
female workers as 36.52% out of all workers in the state.

However, contradicting the above mentioned statistics, as per the latest

unemployment report, Sikkim, with 136 unemployed per 1000 people, has the
highest unemployment rate (136 per 1000). Maybe highly skilled training is the
need of the hour to bridge that gap and make Sikkimese youth more skill oriented.

112
The Health Sector
There has been significant progress in providing health care services to the people
of the State and manifold improvement in infrastructures, capacity building,
manpower placement and in delivery of comprehensive services through the
Department of Health Care, Human Services & Family Welfare.

Healthcare Infrastructure in Sikkim

HEALTH INFRASTRUCTURE  No 

STATE REFERRAL HOSPITAL/STNM HOSPITAL 1

DISTRICT HOSPITAL 4

COMMUNITY HEALTH CENTRE 2

PRIMARY HEALTH CENTRE 24

PRIMARY HEALTH SUB CENTRE 147

DISTRICT TUBERCULOSIS CENTRE, NAMCHI 5

SIKKIM MANIPAL CENTRAL REFERRAL HOSPITAL, TADONG (PPP) 1

Service Indicators

  1998-99  2014-15  

Complete immunization coverage 48 % 93 %

Cure rate of tuberculosis 48 % 93 %

Institutional delivery 49% 98.4%

3 or more antenatal checkups 45 % 87 %

Civil Registration of birth 45 % 93.33

Civil Registration of details 22% 98 %

113
Health Status in Sikkim

S.No  Indicator  1994  Present Year  

Crude Birth Rate (CBR)

1 24.6 16.6
(Per 1000 population)

Crude Death Rate (CDR)

2 6.9 4.7
(Per 1000 population)

Infant Mortality Rate (IMR)

3 46 16
(Per 1000 Live births)

Total Fertility Rate (TFR)

4 2.75 1.2
(Number of Children per women)

5 Full Immunization % 48 95

6 Institutional Delivery% 32 98.3

Contraceptive Prevalence Rate % (Any

7 46.7
Method)

8 Under 5 Mortality Rate 71 32

9 3 or More AnteNatal Checkup (ANC)% 45 86

Child Sex Ratio (0-6yrs) 957

10
(Per 1000 Males) (2011 census)

Sex Ratio (All ages) 890

11
(Per 1000 Males) (2011 census)

12 T.B.Treatment success Rate 963

13 Prevalence Rate of Goiter 957

Prevalence Rate of Leprosy

14 942
(Per 10000 Population)

15 Prevalence Rate of Malaria/ 1000 Pop. 875

16 Civil Registration of Birth 67

17 Civil Registration of Death 111

114
Education
Quality education has been the key concern and driver to the Government’s
policies in Sikkim. The Government of Sikkim has accorded highest priority to the
education sector by providing an outlay of almost 20% of the State’s budget and
records have shown that much progress has been achieved, manifesting in overall
improvement and accessibility to education.

The present structure of the education system in Sikkim is well organized and
maintained by its own ministry.

School education system in Sikkim is divided into 4 stages:

Primary Class I-V

Junior High Class VI-VIII

Secondary Class IX-X

Senior Secondary Class XI-XII

There is a pre-primary stage before the primary stage. To join the pre-primary
stage children should be aged at least 4+. Examination of Class VIII is conducted
by the Sikkim Education Board itself. But at secondary and senior secondary
level,children appear for examinations conducted by the Central Board of
Secondary Education (C.B.S.E.), Delhi because all government schools in Sikkim
are affiliated to the C.B.S.E.

English is the medium of instruction instead of mother tongue. Mother tongue of

different Sikkimese ethnic communities i.e. Nepali, Bhutia,Lepcha are taught as
second language.Some other languages or dialects which are used by different
caste groups of Nepali people like Rai,Gurung,Mukhia,etc.have also been
introduced at the school level and Limboo language has been introduced upto
college level. As a compulsory language Hindi is taught from class IV to class VIII.
In the senior secondary level, there are three main streams-Science,Humanities
and Commerce.

Apart from this, recently, vocational education as a stream has been introduced at
the school level. Subjects like Tourism,Floriculture, Horticulture, Poultry and
Information Technology etc. are taught in the vocational stream. Vocational stream
is available in 40 government schools.

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Higher Educational Institutes in Sikkim

S. No  Institute  Location  Streams 

1 N B Bhandari Government College Tadong Arts & Commerce

2 Namchi College Namchi Arts & Commerce

3 Rhenock College Rhenock Arts & Commerce

4 Sanskrit Mahavidyalaya Gyalshing Sanskrit

5 SHEDA Tiibetan Institute Gangtok Tibetan

6 ATTC Bardang Technical Education

7 CCCT Chisopani Technical Education

8 SMIMS Gangtok Medical

Engineering, Business
9 SMIT Majitar
Administration

10 Sikkim Central University Yangyang

Literacy Rate in Sikkim

2001 Census  2011 Census 

Literacy  68.81 81.42

Male Literacy  76.04 % 76.04

Female Literacy  60.40 % 75.61

Income
As per the report of the Ministry of Statistics and Programme Implementation
(released on 7 January 2020), the state per capita income of Goa is highest in the
country followed by Delhi and Sikkim. Sikkim's nominal state gross domestic
product (GDP) was estimated at US$1.57 billion in 2014 constituting the
third-smallest GDP among India's 28 states. However in terms of NSDP Per capita
(PPP) (2018–19 INT$), it is the third highest after Delhi and Goa at US$ 19,543.

116
The people of Sikkim experienced the highest growth in share of net state domestic
product (NSDP) during the 2004-05 to 2011-12 period. The net state domestic
product (NSDP) per capita increased by four-and-a-half fold during the eight-year
period

In 2012–13, Sikkim reported a per capita income (net state domestic product) of Rs
1,42,625 — the highest among the north-eastern states, higher than all states and
Union territories with the exception of Chandigarh and Delhi.

Its per capita income is more than double the all-India average of Rs 68,757 in that
period. Out of its demographic mix, 75% of the population are in rural areas and
over 60% are either directly or indirectly depending on the farm sector.

However there is a huge inequality in income distribution in the state and statistics
shown as per population are figures from hydel projects revenue which does not
come to state.

Sikkim has a very big unemployment problem due to lack of skilled manufacturing
industries and the private sector not big enough to absorb and employ.

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Key Risks & Mitigation
Risk management in a business environment is attempting to identify and then
manage threats that could severely impact or bring down the organization.
Generally, this involves reviewing operations of the organization, identifying
potential threats to the organization and the likelihood of their occurrence and then
taking appropriate actions to address the most likely threats.

Risk Strategy & Risk Management Framework

AMTSC recognises that risk is an integral and unavoidable component of business
and is committed to managing the risk in a proactive and effective manner.

The organisation has mainly two divisions - Training and Production.

In principle, risk always results as a consequence of activities or as a consequence

of non-activities. Risk Management and Risk Monitoring are important in
recognising and controlling risks.

Risk mitigation is also an exercise aiming to reduce the loss or injury arising out of
various risk exposures. AMTSC adopts a systematic approach to mitigate risks
associated with accomplishment of objectives, operations, revenues and
regulations. The institute believes that this would ensure mitigating risks proactively
and help to achieve stated objectives.

AMTSC will consider activities at all levels of the organisation and its Risk
Management with focus on three key elements :

Detailed study of threats and vulnerability and resultant

1 Risk Assessment
exposure to various risks

Risk Management and The probability of risk assumption is estimated with

2
Monitoring available data and information

3 Risk Mitigation Measures adopted to mitigate risk by the Institute

Type Of Risks and Mitigation Measures

In today’s challenging and competitive environment, strategies for mitigating
inherent risks in accomplishing the growth plans of the organisation are imperative.

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The common risks, inter alia, are Regulations, Competition, Business risk,
Technology Obsolescence, Retention of talent along with locational disadvantage.
Business risk, inter-alia, further includes Financial risk, Political Legal risk etc.

To manage risk more efficiently AMTSC would need to identify the risks that it
faces in trying to achieve the objectives of the institute. Once these risks are
identified, the institute would need to evaluate these risks to see which of them will
have a critical impact on the institute and which of them are not significant enough
to deserve further attention.

General Risks & Mitigation

RISKS  AMTSC MITIGATION MEASURES 

The Institute functions under a well defined organisation

Organisation and management risks
structure with focus on role clarity.

Proper systems should be in place in relation to

Production, process and productivity maintenance of inventories of raw materials,
risks consumables, key spares and tools to ensure their
availability for planned production programmes

Proper systems should be in place in relation to

Business interruption risks consisting maintenance of inventories of raw materials,
internal and external factors consumables, key spares and tools to ensure their
availability for planned production programmes

Proper training and development, incentives and

reward system for employees at all levels

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Operational Risks & Mitigation Measures

RISKS  AMTSC MITIGATION MEASURES 

Tracking micro and macro economic level data, market trends

Raw material availability and
and forecasts by expert agencies, internal review by team of
movement of rates
experts..

Developing a good understanding and tracking of movement of

Demand and Supply Risks
rates of raw material at macro level, keeping a track on global and
domestic economy, climatic conditions, geo-political factors,
global demand and supply, trade policies etc.

Quantities, Qualities, Suppliers Alternative sources are developed for uninterrupted supply of raw
and lead time materials

Demand and supply are external factors on which the Institute

has no control. However based on experience and by following
Competition the market dynamics as they evolve, the Institute shall be able to
estimate the demand during a particular period and accordingly
supply is planned and adjusted.

The Institute will be increasing operational efficiency and continue

Increase in commercial costs
to take initiatives to move up the quality control scale besides cost
Risk
reduction and cost control initiatives

Connectivity Risks & Mitigation Measures

RISKS  MITIGATION MEASURES 

Unreliable Road Connectivity, Institute needs a dedicated transport

Absence of Railway and Air company/group/division to handle all requirements relating
Connectivity to movement of fabrics, finished goods, scrap etc.

Request for Transport Subsidy to nearest railhead or airport

High cost of transportation.
as given to other industrial units in Sikkim

Human Resource Risks & Mitigation Measures

RISKS  MITIGATION MEASURES 

Key resource people needed to provide Skill and Training

Lack of Trained Resource Persons
are to be outsourced as Sikkim has very few people with
in Sikkim
industry experience in garment manufacturing. Our strong

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 association with industry associations and key players will
attract the right talent.
Reviewing and monitoring the country’s textile related
industrial, labour and other related policies and involvement
of representatives of industry-bodies.

While strong emphasis will be laid on local recruits getting

Motivation post training proper skill and training will be paramount, focus on
engagement with SHG and MSMEs to absorb and employ
trainees.

Ensuring training of maximum persons per different

Replacing skilled workers when due
to vacancy
specialised skills. Proper labour and employment contracts
to be signed and executed with a professional recruitment
policy.
Proper appraisal systems with the participation of the
employee and consistent with job content, peer comparison
and individual performance for revision of compensation on
a periodical basis has been evolved and followed regularly.

Cooperative Model of Unit should imbibe a collective sense

Unrest Risks due to Strikes and
Lockouts
of ownership, belonging and commitment and also
effectively train them in spheres other than their own
specialization.
Activities relating to the welfare of employees are
undertaken in consultation with all members.

Financial Risks & Mitigation Measures

RISKS  MITIGATION MEASURES 

Proper financial planning will put in place with detailed Annual

Liquidity Risks Business Plans discussed at appropriate levels within the
organisation.

Daily and monthly cash flows are to be prepared and monitored at

Financial solvency and
senior levels to access the fund requirements and ensure utilization of
liquidity risks
funds in an effective manner.

Cash management services are to be availed from the bank to

Cash management risks
ensure efficient collection and utilization of funds.

Ensure that stakeholders placing orders make timely payments as

Delayed payments shall be agreed in the MOU and additionally avail cash credit from
supporting banks against Order Invoice.

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Legal Risks & Mitigation Measures

RISKS  MITIGATION MEASURES 

Experienced team of legal professionals, advisors will

evaluate the risks involved in the contract, ascertaining our
responsibilities under the applicable law of the contract,
restricting our liabilities under the contract, and covering the
risks involved so that they can ensure adherence to all
contractual commitments.

Management places reliance on professional guidance and

Any legal risk posed to AMTSC in opinion and discusses the impact of all laws and regulations
the form of litigation and other legal to ensure company’s total compliance. Advisories and
framework requirements. suggestions from professional agencies and industry bodies,
chambers of commerce etc. are carefully studied and acted
upon where relevant.

AMTSC shall establish a compliance management system in

the organisation and GM being the focal point, get the
quarterly compliance reports from various unit heads and
being placed before the Board every quarterly Board meeting
of the institute and cooperative society.

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Conclusion
AMTSC is proposed to be an apparel and garment manufacturing focused Skill and
Training Center with an emphasis on segments such as production, design,
packaging, assembling, prototyping and testing.

Consultancy services for product design and development, manufacturing and

innovations in process and productivity; manufacturing incubation services and
training of the prominent activities are also to be undertaken by AMTSC. This also
includes support and engagement with SHGs and Clusters in the value chain,
MSME clusters in technology and engineering solutions, for improvement of their
quality systems and productivity, and for patent registration and harnessing.
AMTSC will make a concerted effort in reaching out to all stakeholders to realise
the vision set in this Detailed Project Report.

AMTSC will contribute towards skilling Sikkimese youth to make them employable
in industry by designing courses relevant to them. The focus areas for the proposed
AMTSC are in line with objectives of the program. This will be further complimented
by the proposed innovative ideas and steps to form consortiums with MSMEs and
Apparel Clusters around the country to jointly cater to the focus sectors. Once
formed, the AMTSC would further formalise and institutionalise the consortium.

AMTSC should provide handholding/ support and a pool of skilled and trained
talent to members of this consortium and prepare a road map for the next 3-5 years
to ensure that these MSME, SHGs and Clusters can develop the required
expertise and become more competitive.

The Manufacturing Incubation Centre proposed along with AMTSC with the basic
shell infrastructure and world class manufacturing plant and machinery on rental
basis for a 5 year period is expected to fuel the growth of enterprises which have
successfully crossed the stage of pilot order and are ready to execute larger orders.
The MIC would provide shell infrastructure, support business facilities, provide IT
support and assist with registration and clearances for setting up a manufacturing
unit to budding future entrepreneurs in Apparel and Garment Start ups so that
skilled trainees from AMTSC have better options of skilled employment and
absorption in the industry. In addition to this, the MIC would help entrepreneurs to
connect with suppliers and skilled workers.

Above all, the AMTSC program will enable to showcase the best practices not only
in the adoption of new technologies and skilling the youth but also managing all the
associated environmental and social aspects.

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