Readymade Garments: Clothing Business Ideas & Opportunities Manufacturing
Plant,
Detailed
Project
Report,
Profile, Business Plan, Industry Trends, Market
Research,
Survey,
Machinery,
Raw
Manufacturing
Materials,
Feasibility
Process, Study,
Investment Opportunities, Cost and Revenue, Plant Economics, Production Schedule, Working Capital Requirement, Plant Layout, Process Flow Sheet, Cost of Project, Projected Balance Sheets, Profitability Ratios, Break Even Analysis
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Introduction Ready-made garments are mass-produced finished textile products of the clothing industry. They are made from
many different fabrics and yarns. Their characteristics depend on the fibers used in their manufacture. The garments are very simple to manufacture and easily marketable both in urban and rural areas. The demand of readymade garments is increasing day by day due to urbanization of the cities.
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Readymade garments are a part of our daily life. Clothes are an epitome of a culture. People in different parts of the world have their own styles of dressing which symbolize their
culture
and
status.
The
Readymade
garments
industry is increasing day by day due to changes of fashion in day to day life. The textile industry including readymade garments
occupies
economy.
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a
unique
position
in
the Indian
Its predominant presence in the Indian economy is manifested in terms of its significant contribution to the
industrial production, employment generation and foreign exchange earnings. The
readymade
garment
industry
in India
owes its
existence to the emergence of a highly profitable market for exports. Ready-made garments account for approximately 45% of India's total textile exports.
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It has immense potential for employment generation particularly in the rural and remote areas of the country on account of its close linkage with agriculture. They represent value added and less import sub sector. In the recent years, however, the domestic demand has also been growing rapidly. Thus, due to demand it is a good project for entrepreneurs to invest.
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Market Outlook India’s textiles sector is one of the oldest industries in Indian economy dating back several centuries. Even today, textiles sector is one of the largest contributors to India’s
exports with approximately 15 per cent of total exports. The textiles industry is also labour intensive and is one of the largest employers.
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India is the sixth largest supplier of readymade garments in the world with a 3.7 per cent share in global exports. The textile industry employs about 51 million people directly and 68 million people indirectly. India's overall textile exports during FY 2015-16 stood at US$ 40 billion. The Indian textiles industry, currently estimated at around US$ 120 billion, is expected to reach US$ 230 billion by
2020.
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The Indian Textile Industry contributes approximately 4 per cent to India’s Gross Domestic Product (GDP), and 14 per cent to overall Index of Industrial Production (IIP).
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Indian Apparel Exports
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Projections for India in World Exports
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The size of India’s textile market in 2014 was USD99.0 billion which is expected to touch USD226 billion market by 2023 at a CAGR of 8.7
per cent between 2009-23E.
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India’s Textile Market Size
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Few Indian Major Players are as under •
Achiever Apparels Pvt. Ltd.
•
Arvind Clothing Ltd.
•
Arvind Goodhill Suit Mfg. Pvt. Ltd.
•
Biba Apparels Pvt. Ltd.
•
Centex International Pvt. Ltd.
•
Gini & Jony Ltd.
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Project at a Glance COST OF PROJECT
Particulars Land & Site Development Exp. Buildings Plant & Machineries Motor Vehicles Office Automation Equipments Technical Knowhow Fees & Exp. Franchise & Other Deposits Preliminary& Preoperative Exp Provision for Contingencies Margin Money - Working Capital TOTAL
Existing Proposed Total 0.00 0.00
105.00 152.00
0.00 0.00
55.53 6.00
0.00
31.50
0.00
5.00
0.00
0.00
0.00
2.00
0.00
4.00
0.00 0.00
22.71 383.74
MEANS OF FINANCE Propose Particulars Existing d
105.00 Capital 152.00 Share Premium Other Type Share 55.53 Capital 6.00 Reserves & Surplus
Total
0.00 0.00
95.93 0.00
95.93 0.00
0.00 0.00
0.00 0.00
0.00 0.00
0.00
0.00
0.00
5.00 Internal Cash Accruals Long/Medium Term 0.00 Borrowings
0.00
0.00
0.00
2.00 Debentures / Bonds Unsecured 4.00 Loans/Deposits
0.00
0.00
0.00
0.00
0.00
0.00
31.50 Cash Subsidy
22.71 383.74 TOTAL
0.00
0.00
287.80 287.80
383.74 383.74
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Project at a Glance Year
Annualised
Book Debt Dividen Value d
Per Share `
EPS `
CEPS `
Per Share ` `
1-2
5.16
8.14
15.16 24.00
0.00
2-3
8.33
10.97
23.49 18.00
0.00
3-4 11.36 45 14.23 56 16.91
13.70
34.85 12.00
0.00
16.30
49.09
6.00
0.00
18.74
65.99
0.00
0.00
Retained Earnings
Per Share % ` 100.0 0 5.16 100.0 0 8.33 100.0 0 11.36 100.0 0 14.23 100.0 0 16.91
Payout Probabl P/E Yield Price/ e Ratio Book Value Market Price No.of Times % ` % 0.00
5.16
1.00
0.00
0.00
8.33
1.00
0.00
0.00
11.36
1.00
0.00
0.00
14.23
1.00
0.00
0.00
16.91
1.00
0.00
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Project at a Glance Year
D. S. C. R.
Debt / Equity Total Retur asNet n on Depos Equity Wort Net its h Worth Debt
Individ Cumulat Overa ual ive ll
(Number of times)
(Number of times)
%
Initia l 12 1.23
1.23
1.58
1.58
1.99
2-3 1.58
1.40
0.77
0.77
1.07
3-4 1.98
1.57
0.34
0.34
0.57
4-5
2.44
1.76
0.12
0.12
0.30
5-6
2.98
1.96
0.00
0.00
0.15
3.00
1.96
%
Profitability Ratio
GPM
PBT
PAT
%
%
%
Assets Curre Turnov nt er Ratio Ratio
Net P/V Contri Ratio bution %
3.00 25.03 % 28.27 % 30.41 % 31.79 % 32.63 %
12.57% 8.33% 11.53 17.92% % 13.77 21.62% % 15.32 24.17% % 16.38 25.90% %
406.7 4 465.1 4 531.3 6 597.5 9 663.8 1
68.48 % 67.12 % 67.09 % 67.07 % 67.05 %
1.38
0.88
1.50
1.27
1.51
1.80
1.46
2.44
1.36
5.06
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Project at a Glance
BEP BEP - Maximum Utilisation Year Cash BEP (% of Installed Capacity) Total BEP (% of Installed Capacity) IRR, PAYBACK and FACR Internal Rate of Return .. ( In %age ) Payback Period of the Project is ( In Years ) Fixed Assets Coverage Ratio ( No. of times )
5 58.48% 61.14% 25.08% 2 Years 4 Months 3.910
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Major Queries/Questions Answered in the Report? 1. What is Readymade Garments Manufacturing industry ? 2. How has the Readymade Garments Manufacturing industry performed so far and how will it perform in the coming years ? 3. What is the Project Feasibility of Readymade Garments Manufacturing Plant ? 4. What are the requirements of Working Capital for setting up Readymade Garments Manufacturing project ? www.entrepreneurindia.co
5. What is the structure of the Readymade Garments Manufacturing Business and who are the key/major players ? 6. What is the total project cost for setting up Readymade Garments Manufacturing plant ? 7. What are the operating costs for setting up Readymade Garments Manufacturing plant ? 8. What are the machinery and equipment requirements for setting up Readymade Garments Manufacturing project ?
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9. Who are the Suppliers and Manufacturers of Plant & Machinery for setting up Readymade Garments Manufacturing plant ?
10. What are the requirements of raw material for setting up Readymade Garments Manufacturing project ? 11. Who are the Suppliers and Manufacturers of Raw materials for setting up Readymade Garments Manufacturing plant ? 12. What is the Manufacturing Readymade Garments?
Process
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of
13. What is the total size of land required for setting up Readymade Garments Industry? 14. What will be the income and expenditures for Readymade Garments project ? 15. What are the Projected Balance Sheets Readymade Garments Manufacturing plant ?
of
16. What are the requirement of utilities and overheads for setting up Readymade Garments Manufacturing project? 17. What is the Built up Area Requirement and cost for setting up Readymade Garments Manufacturing Business? www.entepreneurindia.co
18. What are the Personnel (Manpower) Requirements for setting up Readymade Garments Production? 19. What are Statistics of Import & Export for Readymade Garments? 20. What is the time required to break-even of Readymade Garments Manufacturing ? 21.What is the Break-Even Analysis of Readymade Garments Manufacturing plant? 22.What are the Project financials of Readymade Garments Factory? www.entepreneurindia.co
23. What are the Profitability Ratios of Readymade Garments Manufacturing plant? 24. What is the Sensitivity Analysis-Price/Volume of Readymade Garments Manufacturing project? 25.
What are the Projected Pay-Back Period and IRR of Readymade Garments Manufacturing plant?
26. What is the Process Flow Sheet Diagram of Readymade Garments Manufacturing project?
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27.
What are the Market Opportunities for setting up Readymade Garments Manufacturing plant?
28. What is the Market Study and Assessment for setting up Readymade Garments Manufacturing unit? 29. What is the Plant Layout for setting up Readymade Garments Manufacturing Business?
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Table of Contents of the Project Report
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1. PROJECT LOCATION 1.1. 1.1.1. 1.1.2. 1.1.3. 1.1.4. 1.1.5. 1.1.6. 1.1.7. 1.1.8.
DISTRICT PROFILE & GEOTECHNICAL SITE CHARACTERIZATION General Location & Geographical Area. Topography Map Administrative set up. Industry at a Glance Growth Trend Major Exportable Item
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2. INTRODUCTION 2.1. 2.2.
HISTORY OF READYMADE GARMENTS FUTURE POTENTIALS
3. USES 4. JEANS 4.1. 4.2. 4.3.
HISTORY OF JEANS KEY TRENDS IN DENIM MARKET POPULAR JEANS BRAND NAMES
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5. B.I.S. SPECIFICATION 5.1.
IS: 2364 – 1987– GLOSSARY OF TEXTILE TERMSWOVEN FABRICS
6. IS: 15798 – 2007–TEXTILES—REQUIREMENTS FOR LABELLING AND MARKING OF CONSUMER TEXTILES — SPECIFICATION 7. BENEFITS OF WEARING JEANS 8. 100% EXPORT ORIENTED UNIT
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9. MARKET SURVEY 9.1. 9.2. 9.3. 9.4. 9.5. 9.6. 9.7. 9.8. 9.9. 9.10.
READYMADE GARMENTS LEADING BRANDS COTTON GARMENTS UNDERGARMENTS MARKET STRUCTURE LEADING BRANDS DENIM AND JEANS NEWLY EMERGING INDICATORS MARKET STRUCTURE LEADING BRAND
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10. EXPORT & IMPORT: ALL COUNTRIES 10.1. EXPORT: ALL COUNTRIES 10.2. IMPORT: ALL COUNTRIES 11. FINANCIALS & COMPARISON OF MAJOR INDIAN PLAYERS/COMPANIES 11.1. ABOUT FINANCIAL STATEMENTS OF CMIE DATABASE 11.2. PROFITS & APPROPRIATIONS 11.3. TOTAL LIABILITIES 11.4. TOTAL ASSETS 11.5. NET CASH FLOW FROM OPERATING ACTIVITIES 11.6. SECTION –I
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11.6.1. 11.6.2. 11.6.3. 11.6.4. 11.6.5. 11.7. 11.7.1. 11.7.2. 11.7.3. 11.7.4. 11.7.5. 11.7.6. 11.7.7. 11.7.8. 11.7.9.
Name of Company with Contact Details Name of Director(S) Plant Capacity Location of Plant Name of Raw Material(S) Consumed With Quantity &Cost SECTION–II Assets Cash Flow Cost as % Ge of Sales Growth in Assets & Liabilities Growth in Income & Expenditure Income & Expenditure Liabilities Liquidity Ratios Profitability Ratio www.entrepreneurindia.co
11.7.10. 11.7.11. 11.7.12. 11.7.13.
Profits Return Ratios Structure of Assets & Liabilities (%) Working Capital & Turnover Ratios
12. EXPORT & IMPORT STATISTICS DATA 12.1. EXPORT STATISTICS DATA FOR JEANS (READYMADE GARMENT) 12.2. IMPORT STATISTICS DATA FOR JEANS (READYMADE GARMENT) 13. PRESENT MANUFACTURERS 14. PROPERTIES OF COTTON FIBRES
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15. GUIDELINES FOR JUDGING QUALITY OF FABRICS 15.1. 15.2. 15.3. 15.4.
MATERIAL WEAVE FINISH FINISHING DETAILS
16. DENIM QUALITY 16.1. 16.2. 16.3. 16.4.
SIZE AND FIT STANDARDS DENIM FABRIC PROPERTIES DIMENSIONAL STABILITY TEAR STRENGTH
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17. DENIM DYES 18. MANUFACTURING PROCESS OF JEANS
18.1. 18.2. 18.3. 18.4.
RAW MATERIAL REQUIRED MANUFACTURING PROCESS USED AND DISTRESSED LOOKS ENVIRONMENTAL AND HUMANITARIAN IMPACT
19. PROCESS FLOW DIAGRAM OF JEANS 20. BUYING HOUSE
20.1. WORKING PROCEDURE OF A BUYING HOUSE
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21. FLOW DIAGRAM OF BUYING HOUSE 22. QUALITY CONTROL
23. SUPPLIERS OF RAW MATERIAL 24. SUPPLIERS OF PLANT & MACHINERY 25. PHOTOGRAPHS/IMAGES FOR REFERENCE 25.1. MACHINERY PHOTOGRAPHS 25.2. RAW MATERIALS PHOTOGRAPHS 25.3. PRODUCT PHOTOGRAPHS
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26. PLANT LAYOUT 27. QUOTATION OF PLANT, MACHINERY AND EQUIPMENTS FROM SUPPLIER
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Project Financials •
Project at a Glance
Annexure
• Assumptions for Profitability workings ………………………..1 • Plant Economics…………………………………………………..2 • Production Schedule………………………………………………3
• Land & Building……………………………………………….……4 Factory Land & Building Site Development Expenses
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• Plant & Machinery……………………………………………..……..5 Indigenous Machineries Other Machineries (Miscellaneous, Laboratory etc.) • Other Fixed Assets………………………………………..........….......6 Furniture & Fixtures Pre-operative and Preliminary Expenses Technical Knowhow Provision of Contingencies • Working Capital Requirement Per Month……………………….…7 Raw Material Packing Material Lab & ETP Chemical Cost Consumable Store
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• Overheads Required Per Month and Per Annum………….…….…8 Utilities & Overheads (Power, Water and Fuel Expenses etc.) Royalty and Other Charges Selling and Distribution Expenses • Salary and Wages …………………………………………....……..9 • Turnover Per Annum ……………………………………….....…10 • Share Capital…………………………………………………….....11 Equity Capital Preference Share Capital
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• Annexure 1 :: Cost of Project and Means of Finance • Annexure 2 :: Profitability and Net Cash Accruals
Revenue/Income/Realisation Expenses/Cost of Products/Services/Items Gross Profit Financial Charges Total Cost of Sales Net Profit After Taxes Net Cash Accruals
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• Annexure 3 :: Assessment of Working Capital requirements
Current Assets Gross Working Capital Current Liabilities Net Working Capital Working Note for Calculation of Work-inprocess
• Annexure 4 :: Sources and Disposition of Funds
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• Annexure 5 ::
Projected Balance Sheets
ROI (Average of Fixed Assets) RONW (Average of Share Capital) ROI (Average of Total Assets) • Annexure 6
::
Profitability Ratios
D.S.C.R Earnings Per Share (EPS) Debt Equity Ratio
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• Annexure 7
::
Break-Even Analysis
Variable Cost & Expenses Semi-Variable/Semi-Fixed Expenses Profit Volume Ratio (PVR) Fixed Expenses / Cost
B.E.P
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• Annexure 8 to 11 :: Sensitivity Analysis-Price/Volume
Resultant N.P.B.T Resultant D.S.C.R Resultant PV Ratio Resultant DER Resultant ROI
Resultant BEP
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• Annexure 12 :: Shareholding Pattern and Stake Status
Equity Capital
Preference Share Capital • Annexure 13 :: Quantitative Details-Output/Sales/Stocks Determined Capacity P.A of Products/Services
Achievable Efficiency/Yield % of Products/Services/Items Net Usable Load/Capacity of Products/Services/Items Expected Sales/ Revenue/ Income of Products/ Services/ Items
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•
Annexure 14
::
Product wise Domestic Sales
Realisation
•
Annexure 15
::
Total Raw Material Cost
•
Annexure 16
::
Raw Material Cost per unit
•
Annexure 17
::
Total Lab & ETP Chemical Cost
•
Annexure 18
::
Consumables, Store etc.
•
Annexure 19
::
Packing Material Cost
•
Annexure 20
::
Packing Material Cost Per Unit
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•
Annexure 21
::
Employees Expenses
•
Annexure 22
::
Fuel Expenses
•
Annexure 23
::
Power/Electricity Expenses
•
Annexure 24
::
Royalty & Other Charges
•
Annexure 25
::
Repairs & Maintenance
Expenses •
Annexure 26
::
Other Manufacturing Expenses
•
Annexure 27
::
Administration Expenses
•
Annexure 28
::
Selling Expenses
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• Annexure 29 :: Depreciation Charges – as per Books (Total)
• Annexure 30 :: Depreciation Charges – as per Books (P & M) • Annexure 31 :: Depreciation Charges - as per IT Act WDV (Total)
• Annexure 32 :: Depreciation Charges - as per IT Act WDV (P & M) • Annexure 33 :: Interest and Repayment - Term Loans • Annexure 34 :: Tax on Profits • Annexure 35 :: Projected Pay-Back Period and IRR
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Scope of the Report The report titled “Market Survey cum Detailed Techno Economic Feasibility Report on Readymade Garments” provides an insight
into the Readymade Garments market in India with focus on uses and applications, Manufacturing Process, Process Flow Sheets, Plant Layout and Project Financials of Readymade Garments project. The report assesses the market sizing and growth of the Indian Readymade Garments Industry. While expanding a current business or while venturing into new business, entrepreneurs are often faced with the dilemma of zeroing in on a suitable product/line. And before diversifying/venturing into any product, they wish to study the following aspects of the identified product:
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• Good Present/Future Demand • Export-Import Market Potential • Raw Material & Manpower Availability • Project Costs and Payback Period We
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consultancy and market research field, have demystified the
situation by putting forward the emerging business opportunity in the Readymade Garments. sector in India along with its business prospects. Through this report we have identified Readymade Garments project as a lucrative investment avenue.
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Who do we Serve? o o o o o o o o o o o
Public-sector Companies Corporates Government Undertakings Individual Entrepreneurs NRI’s Foreign Investors Non-profit Organizations, NBFC’s Educational Institutions Embassies & Consulates Consultancies Industry / trade associations
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Sectors We Cover o o o o o o o o
Ayurvedic And Herbal Medicines, Herbal Cosmetics Alcoholic And Non Alcoholic Beverages, Drinks Adhesives, Industrial Adhesive, Sealants, Glues, Gum & Resin Activated Carbon & Activated Charcoal Aluminium And Aluminium Extrusion Profiles & Sections, Bio-fertilizers And Biotechnology Breakfast Snacks And Cereal Food Bicycle Tyres & Tubes, Bicycle Parts, Bicycle Assembling
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Sectors We Cover
o o o o o o o o o
Cont…
Bamboo And Cane Based Projects Building Materials And Construction Projects Biodegradable & Bioplastic Based Projects Chemicals (Organic And Inorganic) Confectionery, Bakery/Baking And Other Food Cereal Processing Coconut And Coconut Based Products Cold Storage For Fruits & Vegetables Coal & Coal Byproduct
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Sectors We Cover o o o o o o o o o
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Copper & Copper Based Projects Dairy/Milk Processing Disinfectants, Pesticides, Insecticides, Mosquito Repellents, Electrical, Electronic And Computer based Projects Essential Oils, Oils & Fats And Allied Engineering Goods Fibre Glass & Float Glass Fast Moving Consumer Goods Food, Bakery, Agro Processing
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Sectors We Cover o o o o o o o o o
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Fruits & Vegetables Processing Ferro Alloys Based Projects Fertilizers & Biofertilizers Ginger & Ginger Based Projects Herbs And Medicinal Cultivation And Jatropha (Biofuel) Hotel & Hospitability Projects Hospital Based Projects Herbal Based Projects Inks, Stationery And Export Industries
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Sectors We Cover o o o o o o o o o
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Infrastructure Projects Jute & Jute Based Products Leather And Leather Based Projects Leisure & Entertainment Based Projects Livestock Farming Of Birds & Animals Minerals And Minerals Maize Processing(Wet Milling) & Maize Based Projects Medical Plastics, Disposables Plastic Syringe, Blood Bags Organic Farming, Neem Products Etc. www.entrepreneurindia.co
Sectors We Cover
Cont…
o Paints, Pigments, Varnish & Lacquer o Paper And Paper Board, Paper Recycling Projects o Printing Inks o Packaging Based Projects o Perfumes, Cosmetics And Flavours o Power Generation Based Projects & Renewable Energy Based Projects o Pharmaceuticals And Drugs o Plantations, Farming And Cultivations o Plastic Film, Plastic Waste And Plastic Compounds o Plastic, PVC, PET, HDPE, LDPE Etc. www.entrepreneurindia.co
Sectors We Cover o o o o o o o o o
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Potato And Potato Based Projects Printing And Packaging Real Estate, Leisure And Hospitality Rubber And Rubber Products Soaps And Detergents Stationary Products Spices And Snacks Food Steel & Steel Products Textile Auxiliary And Chemicals www.entrepreneurindia.co
Sectors We Cover
Cont…
o Township & Residential Complex o Textiles And Readymade Garments o Waste Management & Recycling o Wood & Wood Products o Water Industry(Packaged Drinking Water & Mineral Water) o Wire & Cable
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Contact us Niir Project Consultancy Services 106-E, Kamla Nagar, Opp. Spark Mall, New Delhi-110007, India. Email:
[email protected] ,
[email protected] Tel: +91-11-23843955, 23845654, 23845886, 8800733955
Mobile: +91-9811043595 Website : www.entrepreneurindia.co , www.niir.org Take a look at NIIR PROJECT CONSULTANCY SERVICES on #StreetView
https://goo.gl/VstWkd
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Follow us https://www.linkedin.com/company/niir-projectconsultancy-services https://www.facebook.com/NIIR.ORG https://www.youtube.com/user/NIIRproject https://plus.google.com/+EntrepreneurIndiaNewDelhi https://twitter.com/npcs_in https://www.pinterest.com/npcsindia/
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For more information, visit us at: www.niir.org
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