PROJECT PROFILE
PRODUCT/PROJECT: GARMENT
CAPITAL INVESTMENT: RS 812200
MONTH AND YEAR OF PREPARTION
MARCH 2011
PREPARED BY:
UMAKANTA NAYAK
GLOBAL INSTITUTE OF MANAGEMENT
BHUBANESWAR, ORISSA
INTRODUCTION::
Garment is an article of clothing which covers human body.
Wearing garments has become a habit to all of us in today's world. There are different kinds of
material available to make a dress, attire, apparel or garments. We wear clothing primarily to protect
our body from natural elements. Social reasons and functional reasons are secondary.
Since the beginning of mankind humans have used some kind of garments for their body. The
archaeologists and anthropologists say that the earlier clothing was made of fur, leather, leaves or
grass, draped or tied to the body.
We in the modern times still drape, wrap or tie our cloths. The difference is that of different materials
or fabrics we use to make our garments. There are two categories of Fabrics we use :
• Natural
• Artificial
Natural fabric is made out of :
• Cotton
• Silk
• Wool
• Fur
• Leather
Artificial fabrics for clothing are:
• Nylon
• Polyester
• Terylene
• Terycot
• Lycra
The modern man uses different fabrics to make garments.
Types of Garments:
Man, woman and child use different garments. Usually men wear pants and shirts. Women wear
skirts, dresses, or pants and shirts as well. In India women mostly wear sarees or Salwar Kurta.
In the old days people used to stitch their cloths in the house, but now we can get readymade
cloths. There is a huge market for readymade garments. You get :
• Men's wear
• Ladies wear
• Kids wear
MARKET DEMAND:
Kendra para districts population 1301856, and 60% people depend upon
readymade garment remain 40% making their garment in tailor..in this districts people
income is different individual to individual, if measure in percentage then 15% people are
richest family they require minimum 3 pair garment in a year,30% people medium family
they require 2 pair minimum garment in a year,55% people are poorest family they require
1 pair minimum garment in year.
There is no garment industries in Kendra para, it depends other districts and state, mostly
people are purchasing from the local market. According the following specification will have
a very good demand in local market of kendrapara
Basis and presumptions:
1. The scheme is based on 12 hours per day and 336 days per
annum.
2. The cost in respect of machinery and equipment, raw materials
and selling prices of the3 finished products etc .those are normally
prevailing at the time of preparation of the project profile and may
vary depending on various factors.
3. Minimum wages have been considered in preparation of the
scheme.
4. 12% interest rate has been considered on the total capital
investment.
IMPLEMENTATION SCHEDULE:
1. Preparation of project profile and registration
With D.I.C
1 month
2. Selection of site
1 month
3. Availability of finance
3 month
4. Machinery procurement, installation
1 month
5. Recruitment of staff
1 month
7 months
Process of garment
There are four major kinds of textiles processing .fiber processing yarn
processing. Fabric processing and garment processing. Garment processing has
grown to a to great extent during the past few years, this growth can be
attributed mainly to the denim garment, which is the largest garment segment
today.
Garment finishing is mainly through wet processing .garments are dyed for
imparting color of them .proper finishing can provide a better look to the
apprarel, change the feel and texture of the fabric ,and can also9 add value to
the product .various types of finishes are given to the garment .which include
peach finish, antimicrobial finish, wrinkle finish, aroma finish ,UV guard finish,
acid wash, enzyme wash, moisture management, laser coating etc.the factor to
be considered while processing include the choice of chemicals, production
limitation and types of machinery used .usually garment processing is done on
small scale which minimize the damages risk. if some changes are to be made or
the process of finishing has to be replaced ,it could be done easily in small scale
productions.
Quality control
For every industry or business, to get increased sales and better name
amongst consumers and fellow companies it is important to maintain a level of
quality There are a number of factors on which quality fitness of garment industry is
based such as - performance, reliability, durability, visual and perceived quality of the
garment. Quality needs to be defined in terms of a particular framework of cost. The
national regulatory quality certification and international quality programmers like ISO
9000 series lay down the broad quality parameters based on which companies maintain
the export quality in the garment and apparel industry. Here some of main fabric
properties that are taken into consideration for garment manufacturing for export
basis:
. Overall look of the garment.
. Right formation of the garment.
. Feel and fall of the garment.
. Physical properties.
. Color fastness of the garment.
. Finishing properties
. Presentation of the final produced garment.
Pollution conrol
As this product is manufactured from cloth there is no
pollution problem involved.
Production Target (p.a)
item quantity rate value
Shirts 10080 300 3024000
Pant s 6720 350 2352000
5376000
FINANCIAL ASPECTS:
Land -1500sq.ft
Building and raw materials and storing-700 sq.ft. Own
FIXED CAPITAL
MACHINARY QUANTITY RATE
VALUE IN RS
Sew machine 20 100000
200000
Zig zag machine 4 15000
60000
Button machine 1 160000
160000
Fan 10 1000
10000
430000
FURNITURE
Table 21 1500
31500
Chair 22 300
6600
38100
PRE-OPERATIVE EXPENDITURE
RUPEES
Preparation of project profile
300
Telephone connection
1500
Electricity installation
2000
Travel and miscellaneous expenditure
7000
Stationary
500
Other miscellaneous expenditure
500
11800
FIXED CAPITAL=430000+38100+11800=479900
WORKING CAPITAL ANALYSIS (PER MONTH)
RAW MATERIALS QUANTITY
RATE VALUE
Shirt clothes 184800cmtrs 0
.45 84000
Pant clothes 67200cmtrs
1.33 89600
Needles 20
5 100
Threads 50
2 100
173800
STAFF AND LABOR PAYMENT
Supervisor 1
10000 10000
Skilled worker 20
6000 120000
Un skilled worker 4
3500 14000
Accountant 1
4000 4000
Watch man 1
3000 3000
151000
OTHER EXPENDITURE(PER MONTH)
Rs
Tele phone
500
Stationary
500
Travel and transport
5000
Electricity bill
1500
7500
WORKING CAPITA L (P.M)
=173800+151000+7500=332300
TOTAL CAPITAL INVEST MENT:
FIXED CAPITAL
= 479900
WORKING CAPITAL
= 332300
812200
COST OF PRODUCTION(P.A)
RS
Recurring expenditure
3987600
Depreciation on machinery @10%
43000
Depreciation on furniture @20%
7620
Interest on total capital investment @12%
97464
4135684
TURN OVER (P.A)
PROFIT=RS 5376000-4135684=1240316
NET PROFIT RATIO = PROFIT X 100 = 1240316 X 100 =23.07%
TURN OVER 5376000
RATE OF RETURN = PROFIT X 100 = 1240316 X 100 = 152.7%
INVESTMENT 812200
BREAK EVEN ANALYSIS
FIXED COST
Depreciation on machinery @10%
43000
Depreciation on furniture @20%
7620
Interest on total capital investment @5%
40610
40% salary
724800
40% other expenditure
36000
852030
BREAK EVEN POINT:
Fixed Cost X 100 = 852030 x 100 = 40.72%
FC+Profit 852030+1240316
Manufacturer
Some of the Garments Manufacturers and suppliers:
• Subhadrea Exports- ladies fashion knitwear.
• Hindutch Overseas Limited- exporter and wholesale supplier of leather garments.
• Triglobe Designs and weaves-exporter of woven fabrics and garments.
• Anand International, Mumbai-ladies apparel, readymade garments.
• Shikhit Exports,Delh-exporter of ladies embroidered garments
