Profile No.

: 80 PMEGP
Code:2668552

Vijay vaishanv
Kirti nagar foy Sagar road ajmer
8058424297

Tailor

1. INTRODUCTION:

More and more parents these days look for ready to wear garments for
their children instead of stitching the same at home. Growing income
levels, urbanization and awareness of fashion design has created a big
market for children wear of all fabrics, designs, colors and patterns. Mass
scale production of these garments has also brought down the cost of
latest fashion children wear.

2. PRODUCT & its application:

Children wear include frocks, kid’s underwear, shorts, shirts, pants,

dungarees, chaniya choli (skirt blouse) and the like. Fashion designers
come up with a variety of designs, patterns, shapes and fittings in these
products to create a huge product line fulfilling the needs of all segments
of the society.

3. DESIRED QUALIFICATIONS FOR PROMOTER:

Graduate in any discipline.

4. INDUSTRY OUTLOOK & TRENDS:

 Increasing income levels, growth in ratio of working women, aspiration to
give child a better life and urbanization has brought a boom in spending on
the baby garments. Increasing trend in income and education level shall
continue to have positive impact on spending on children garments.

5. MARKET POTENTIAL AND MARKETING ISSUES, IF ANY:

As long as the population increases, the market for children wear shall
continue to grow. Even if one was to manufacture and sell these garments
on a local level, there is sufficient market in every reasonably sized city of
India.

6. RAW MATERIAL REQUIREMENTS:

The key raw material is fabric which is available in from textile mills or
wholesalers or agents throughout India. One can use cotton or polyester or
blended fabric to achieve the desired cost & comfort in the end product.

7. MANUFACTURING PROCESS:

The fabric purchased in roll form is spread in layers on the cutting table.
Patterns of various parts of the garment made out of card board or
plywood or metal are laid on the fabric in such a way that wastage of fabric
is minimized. Several layers of fabric are then cut through vertical
motorized blade. Garments are stitched in assembly line manner wherein
each machine operator completes only a part of the product. The stitching
starts on the 1st machine and gets completed at the last stage where the
product is inspected for quality defects if any. Garments are then cleaned
of loose yarn or dirt and packed in plastic bags as per customer
requirements.
8. MANPOWER REQUIREMENT:

The enterprise shall need 40 employees as detailed below:

Sr. No. Designation of Monthly Number of

Annual cost
Employees Salary ₹ employees
₹. in lacs
required
Variable Labour /
Workers:
1 Machine Operators 12,000 24 34.56
2 Helpers 8,000 12 11.52
sub-total 36 46.08
Fixed Staff Costs:
1 Production 25,000 1 3.00
supervisor
2 Accounts Executive 15,000 1 1.80
3 Stores Assistant 12,000 1 1.44
4 Office Boy 8,000 1 0.96
sub-total 4 7.20
Total 40 53.28

9. IMPLEMENTATION SCHEDULE:

The project can be implemented in 3 months as shown below:

Sr. Activity Time

No. Required
(in months)
1 Acquisition of premises 1
2 Construction (if applicable) -
3 Procurement & installation of Plant & Machinery 2
4 Arrangement of Finance 2
5 Recruitment of required manpower 2
Total time required (some activities shall run 3
 concurrently)

10. COST OF PROJECT:

Detailed cost of project is shown below:

₹ in
Sr. No. Particulars thousan
d
1 Land -
2 Building -
3 Plant & Machinery 14.65

4 Furniture, Electrical Installations 5.00

Other Assets including Preliminary / Pre-operative

5 1.50
expenses
6 Margin for Working Capital 4.97
Total 26.12

11. MEANS OF FINANCE:

Bank term loans are assumed @ 60% of fixed assets. The proposed
funding pattern is as under:

₹ in
Sr. No. Particulars
Lacs
Promoter's
1 13.44
contribution
2 Bank Finance 12.68

Total 26.12

12. WORKING CAPITAL CALCULATION:

The project requires working capital of ₹ 300000 lacs as detailed below:

 Sr. Gross Margin Bank
Particulars Margin %
No. Amt Amt Finance
1 Inventories 8.26 40% 3.30 4.96
2 Receivables 2.21 40% 0.89 1.33
3 Overheads 3.10 100% 3.10 -
4 Creditors -5.78 40% -2.31 -3.47
Total 7.79 4.97 2.82

13. LIST OF MACHINERY REQUIRED:

Sr. UO Rate Value (₹ in

Particulars Qty.
No. M (₹) thousands)
a) Main Machinery
i. Single Needle Machine Nos
ii. Double Needle Machine Nos 00
iii. Border/Piping machine Nos
iv. Over-lock Machine Nos 3.00 15000 1.20
V Cutting Table & machine Nos 2.00 60,000 2.00
vi. Button Hole Machine Nos 1.00 500 0.40
Vii Button Stitching Machine Nos 1.00 2000 0.30
sub-total Plant & Machinery
Furniture / Electrical
installations
a) Inspection tables Nos
b) Office & Store furniture LS 1.00 5000 1.50
c) Desktop computer & printer Nos 2.00 20,000 1.00
d) Storage system LS 1.00 2000 2.00
sub total 5.00
Other Assets
a) Rent Deposits 0
sub-total Other Assets
Total
 Single Needle and Double Needle stitching machines are available from
following suppliers. They have offices across several cities in India. There
may also be other local machinery manufacturers offering alternate
machines of various makes and models.

 IIGM Private Limited

Springdale No. 51,
Residency Road, 3rd cross,
Ajmer 305001
www.iigm.in

14. PROFITABILITY CALCULATIONS:

Sr. Year- Year- Year-

Particulars UOM Year-4 Year-5
No. 1 2 3
1 Capacity % 60% 70% 80% 90% 100%
₹ in 113.4 132.3
2 Sales 151.25 170.16 189.07
Lacs 4 5
Raw Materials & Other ₹ in 110.2
3 94.51 126.01 141.76 157.52
direct inputs Lacs 6
₹ in
4 Gross Margin 18.93 22.08 25.24 28.39 31.55
Lacs
Overheads except ₹ in
5 18.58 18.58 18.58 18.58 18.58
interest Lacs
₹ in
6 Interest 1.76 1.76 1.76 1.76 1.76
Lacs
₹ in
7 Depreciation 1.56 1.56 1.56 1.56 1.56
Lacs
₹ in
8 Net Profit before tax -2.97 0.19 3.34 6.50 9.65
Lacs
 The above calculations are based on assumed unit sales price varying
from ₹ 90 to ₹ 450 for various products. The key raw material is assumed
at a cost range of ₹ 70 to ₹ 95 per meter. Electricity tariff is assumed at ₹
8 per KwH.
15. BREAKEVEN ANALYSIS:

The project shall reach cash break-even at 64.47% of projected capacity as

detailed below:

Sr. No. Particulars UOM Value

1 Sales Realization ₹. In Lacs 189.07

2 Variable costs ₹. In Lacs 157.52

3 Fixed costs incl. interest ₹. In Lacs 20.34

BEP = FC/SR-VC x 100 % of

4 64.47%
= sales

16. STATUTORY / GOVERNMENT APPROVALS:

The project does not require any specific government approval.

Registration with MSME is optional. An Entrepreneur may be required to
obtain Shops & Establishment Registration and Professional Tax
registration by local Municipal authorities. Registration under Factories
Act, Provident Fund Act and ESI provisions would be required depending
upon the number of employees, the location, the level of mechanization
and the age of the enterprise. Entrepreneur may contact State Pollution
Control Board where ever it is applicable.

17. BACKWARD OR FORWARD INTEGRATION:

As the machines used in the project are versatile, the Entrepreneur can
also consider manufacture of home furnishing articles like bed sheets,
 pillow covers, wall hangings etc depending on opportunities in the market
he / she is familiar with.

18. TRAINING CENTERS/COURSES

Udyamimitra portal (link : www.udyamimitra.in ) can also be accessed for

handholding services viz. application filling / project report preparation,
EDP, financial Training, Skill Development, mentoring etc.

Entrepreneurship program helps to run business successfully is also

available from Institutes like Entrepreneurship Development Institute of
India (EDII) and its affiliates all over India.
Disclaimer:
Only few machine manufacturers are mentioned in the profile, although
many machine manufacturers are available in the market. The addresses
given for machinery manufacturers have been taken from reliable sources,
to the best of knowledge and contacts. However, no responsibility is
admitted, in case any inadvertent error or incorrectness is noticed therein.
Further the same have been given by way of information only and do not
carry any recommendation.