 Directcost: Cost of raw material -- 66%.

Cost of size and chemicals - 4%.

Production cost comprising of running
the machine, maintenance, power fuel,
humidification and other utilities -- 8 %
and worker wages and salaries -- 8%
losses incurred due to shrinkage,
wastage, grading, and also selling
commissions.
 Indirect
cost : Interest on investment,
loan, working capital, depreciation, etc.
Above 7%, overheads and administrative
expenses like travelling, telephone,
couriers, legal issues, taxes comprising
of 7%.
 Profit: 10- 20% depending on the order
size. In some companies, 70% of the
fabric cost will comprise of direct cost,
but in corporate selling only 40% cost of
the fabric is direct cost and 60% is
overheads.
 Cost of the raw material that is fibre.
 Cost of spinning.
 Cost of weaving .
 Cost of pre-treatment processing.
 Cost of Dyeing
 Cost of finishing
 Cost of embellishment( embroidery,
appliqué other surface ornamentations) if
required
 Other than the above listed factors, there are
wastage of material and other resources at each
stage of processing of the fabric. These wastage
get added to the cost of the fabric.
 Besides this, there are procurement costs viz.
ordering cost, transportation, material handling
and storage costs, insurance and duty payment
etc.
 The cost of different factors listed above keeps
changing with time depending on the level of
demand in the market and some other macro
economic factors.
 Below is an indicative list of factors
that will influence the cost of cotton
fibre.
 Acreage yield of cotton crop for a given season. This
will depend on the weather conditions
 Quality cotton required. Egyptian cotton, American
cotton are superior varieties of cotton and hence cost
more. Likewise for woollen, Australian Marino wool is
considered the best quality in the world and hence is
most expensive
 Subsidy grants by the government to the
cotton farmers. For fertilizers and
pesticides
 Minimum support price as declared by
the government.
 Demand in the market etc.
 Similarly cost of spinning will
depend roughly on the below
factors.
 Type of spinning like ring spinning and Open end
spinning.
 Type of yarn. Finer the yarn, higher the price
 Yarn quality. Combed yarns are more expensive than
the carded yarns. Novelty and texture yarns are more
expensive than the simple yarns. Also in the former
types, the wastage is more.
 Other aspects of yarn quality such as
plying and twist of the yarn. Higher the
twist, costlier the yarn. Plied yarns are
generally more expensive than single
yarns.
 Price of fuel , power, and other
operational costs. Etc.
 Before, weaving, there are these
following processes need to be
performed.
 Winding
 Warping
 Sizing
 Beaming
 Looming
 Cost of sizing material used.
 Type of weave. Jacquard, dobby, clip spot
etc are generally more expensive than
the simple plain, twill or satin weave.
 Width of the woven fabric. Higher the
width, higher the cost.
 Construction of the fabric. Higher the
construction, more is the consumption of
the yarn and hence costlier the fabric.
 Type of loom used like shuttle looms or
shuttle less looms.
 Mill made fabric or power loom fabric.
Mill made fabrics are more expensive
than the power loom fabric and also of
better quality.
 Wastage in the process of weaving.
 The different types of pre- treatment
processing are done to make the fabric
suitable for dyeing. The fabric after pre-
treatment processing is called RFD (
ready for dyeing fabric).
 The different types of pre treatment
processing are
 Desizing, mercerisation, singing,
carbonization, boil-off, solvent scour,
bleaching, Resin finishing etc..
 The cost of these treatments depend
broadly upon the type of chemical used
and fabric quality. Wastages in the
process are added to the cost of the
fabric
 The cost of dyeing depends broadly on
the following factors.
 Width of the fabric. Small width fabric dyeing
is less economical as compared to the higher
width fabric because the processing does not
change in the same proportion as the change in
the width of the fabric.
 Type of dyestuff used. Different classes of dyes
have different cost.
 Type of colour required. Generally the
darker colour dyes are more expensive than
the lighter colours.
 Darkness of shade. Lighter shades are less
expensive than the darker shades because
less amount of dyestuff is used. The quantity
of dyestuff to be used is expressed as a
percentage of weight of the fabric. The term
used is OWF (on weight of fabric). For
darker shades, the OWF percentage is
higher.
 Weight of the fabric. Fabric with open
construction, and low twist in the yarn
tend to absorb the dye quickly and hence
the processing time is less so the cost is
reduced.
 Finishing is done on the garment to make it
suitable for the end use. There are aesthetic
finishes that enhance the visual appeal of the
fabric ( not without some loss of strength and
abrasion resistance) and there are functional
finishes that add utility to the fabric ( antiseptic
finishes, water repellent finishes, flame retardant
finishes etc.)
 These finishes require the application of
chemicals and processing on the machine. The
cost of finishes depend on the type of chemical
uses and the time required for processing.
 These costs depend on the material used in
the ornamentation and time required for
processing.
 An all over schiffli embroidery requires
more consumption of thread and greater
processing time on machine and hence
costs more as compared to a placement
embroidery. Other type of embellishment
could be placement prints ( pigment print,
plastic prints, foil prints) bead and sequin
work, appliqué work etc.
  calculate the cost per meter of the woven fabric
given the following specification.
 Cost of 1 kg of ginned cotton = Rs.96
 Cost of spinning= Rs. 90 ( Rs60 for roving + Rs.30
yarn conversion)
 Weaving charges = Rs.10 per meter
 Cost of desizing, socuring and bleaching = Rs.5 per
meter.
 Dyeing cost = Rs.5/ mtr
 Finishing cost = Rs.15/ mtr
 Add wastage of 2% at each stage
 Add profit margin of 20% at each stage
 The fabric specifications are, 2/80’s X 60’s ; 133x72