Readymade Garment Manufacturing.

Business Plan on;

READYMADE GARMENTS MANUFACTURING By; Sheikh Mohd Yasir [email protected]

INTRODUCTION 

Readymade garment industry has occupied a unique place in the industrial scenario of our country by generating substantial export earnings and creating lot of employment.



This project report is prepared for the manufacture of gents shirts, gents trousers as they find wide acceptance in local and international markets.

MARKET POTENTIAL 

The demand for Readymade Garments is increasing at around 18-20 % annually in the country.



The domestic market and the export market are growing rapidly

Process of Manufacture 

Cutting and Sewing



Labeling



Packing



Finishing and Packing



Quality Control and Standards

Our Vision 

To become a globally prominent readymade garment manufacturer and be ranked amongst the top garment manufacturers in the country in terms of quality, service standards and ultimately customer satisfaction.

FINANCING 

Promoters Contribution



Seed Capital lacks



Bank Loan

0.15 lacks 3.00

5.85 lacks

PROJECT COST SUMMARY S.NO

PARTICULARS

AMOUNT(LACS)

1

Land

NIL

2

Civil Works

NIL

3

Plant & Machinery

1.86

4

Miscellaneous Fixed Assets

1.10

5

Preliminary & Preoperative expenses

0.50

6

Working Capital

5.54 9.00

MEANS OF FINANCE 1

Seed Capital (Maximum for this Category)

3.00

2

Promoters Contribution

0.15

3

Loan from Bank

5.85

DETAILS OF LOANS A

Long Term Investment

3.46

1

Seed Money

1.21

2

Term Loan From Bank

2.25

B

Working Capital Requirement

5.54

1

Seed Money

1.94

2

Working Capital Finance From Bank

3.60

Details of Machinery and Equipments Sl.

1.

Description

Power operated

Nos.

Rate

Amount

No.

(Rs.)

(Rs.)

1

35,000

35,000

8

5,000

40,000

1

6,000

6,000

1

25,000

25,000

1

25,000

25,000

1

25,000

25,000

cutting machine 2.

Power operated SNLS stitching

machine 3.

Overlock stitching machine with motor and accessories

4.

Garment washing machine 15kg capacity

5.

Hydro extractor 15 kg. capacity

6.

Tumbler dryer 15 kg. capacity

7.

Potable steam press

1

20,000

20,000

9.

Other miscellaneous

LS

20,000

10000

assets

DETAILS OF PRELIMMINARY & PREOPERATIVE EXPENSES S.NO

PARTICULARS

AMOUNT(LACS)

1

Traveling & Conveyance

0.05

2

Printing & Stationary

0.05

3

Professional Charges

0.05

4

Misc. Expenses including fee etc.

0.15

5

Interest during Moratorium Period

0.20

0.50

DETAILS OF MISCELLANEOUS FIXED ASSETS

S.NO PARTICULARS

AMOUNT(LACS)

STEEL LOCKER, TABLE, CHAIRS 1

for 12 persons

LS

0.50

2

FIRE EXTINGUISHER

4

0.20

3

Electric Fitting and Lighting

0.30

TOTAL

1.10

INSTALLED CAPACITY AND PRODUCTION PROGRAMME Keeping in view the climatic conditions and other factors prevailing in the valley into consideration, the operational hours shall be assumed as:RAW MATERIAL REQUIREMENT and SALES AT 100% INSTALLED CAPACITY

S.no

particulars

A)

LADIES SUITS COTTON

1

Qnt. Req per item in meters

No. of items produced per day

No. of items produced per annum

Total quantity of material required per annum

Rate per meter

Amount in Rs.

5.00

10

3000

15000

53.00

795000

B)

CHILDREN SETS

1

COTTON

1.5

12

3600

5400

65

351000

2

WOOLEN

1.5

12

3600

5400

125

675000

C)

SHIRTS

1

COTTON

2.25

10

3000

6750

90

607500

2

TERI WOOL

2.25

10

3000

6750

130

877500

MISCELLANEOUS ITEMS MATERIAL, EMBROIDERY, BUTTONS, PACKING, STICKERS, ETC.

TOTAL AMOUNT IN RS.

SAY IN RS. LACS

LINING THREAD, ZIPS

Sale price per piece Rs.

Revenue per annum Rs.

490

1470000

200

720000

300

1080000

320

960000

335

1005000

100000

3406000

5235000

34.06

52.35

SALES REALIZATION AND PURCHASES IN PHASED MANNER YEAR

CAPACITY

SAL/WAG

UTILISATION

PURCHASE

UTILITIES

SALES (lacs)

(Lacs)

1ST

50.00

2.22

17.03

0.13

26.18

2ND

55.00

2.44

18.73

0.14

28.79

3RD

60.00

2.66

20.44

0.16

31.41

4TH

65.00

2.89

22.14

0.17

34.03

5TH

70.00

3.11

23.84

0.18

36.65

6TH

75.00

3.33

25.55

0.20

39.26

7TH

80.00

3.55

27.25

0.21

41.88

8TH

80.00

3.55

27.25

0.21

41.88

STATEMENT OF MANPOWER REQUIREMENT & THEIR REMUNERATION

S.No.

PARTICULARS

SALARY PER MONTH Nos.

TOTAL(PA)

1

Manager

5000.00

1

60000.00

2

Skilled Workers (Cutters)

4000.00

1

48000.00

3

Tailors

3000.00

8

288000.00

4

Sales/Marketing Executive

2500.00

1

30000.00

5

Chokidar

1500

1

18000.00

Total

12

444000.00

Say

4.44 Lacs

PAY BACK PERIOD Pay back period is the length of time in which, the unit recovers its initial investment. It may also be defined as the number of months or years required for the unit to generate commutative gross operating surplus equal to the fixed capital investment in the project. The payback period of the unit is estimated in the following table

Year 1st 2nd 3rd 4th 5th 6th 7th 8th 1 year

CFAT 4.90 5.37 5.88 6.44 7.03 6.87 7.40 6.61 +

.

Cumulative Cash inflow 4.90 10.27 16.15 22.59 29.62 36.49 43.89 50.50 10

Months

Projected Profitability Statement The annual cost of sales and profitability during the first eight years of operation of the plant is estimated in the following table.

S.no

Particulars

1 2 3

Year of operation Capacity Utilization (%) Sales realization

A:

Cost of production

1

Raw Material

2

Operating Years 50.00 26.18

2nd 55.00 28.79

3rd 60.00 31.41

4th 65.00 34.03

5th 70.00 36.65

6th 75.00 39.26

7th 80.00 41.88

8th 80.00 41.88

17.03

18.73

20.44

22.14

23.84

25.55

27.25

27.25

Salary & wages

2.22

2.44

2.66

2.89

3.11

3.33

3.55

3.55

3

Utilities

0.13

0.14

0.16

0.17

0.18

0.20

0.21

0.21

4

0.06

0.09

0.12

0.15

0.15

0.18

0.18

0.18

5

Repairs & Maintenance Administrative expenses

0.26

0.29

0.31

0.34

0.37

0.39

0.42

0.42

6

Selling expenses

1.05

1.15

1.26

1.36

1.47

1.57

1.68

1.68

7

Total

20.75

22.85

24.94

27.04

29.11

31.21

33.28

33.28

8

Gross profit

5.43

5.95

6.47

6.98

7.53

8.05

8.60

8.60

B:

Financial expenses

1st

1 2 3 4 5 6 7 8 9 10 11 12

Interest on term loan Interest on WCL Depreciation (SLM) Total Profit before tax Taxation Profit after tax Withdrawals Profit carried to B/S Cumulative profit Add back depreciation Total cash surplus

0.20 0.32 0.35 0.87 4.55 0.00 4.55 0.00 4.55 4.55 0.35 4.90

0.20 0.37 0.35 0.92 5.02 0.00 5.02 0.00 5.02 9.58 0.35 9.93

0.16 0.42 0.35 0.93 5.54 0.00 5.54 0.50 5.04 14.62 0.35 14.96

0.12 0.42 0.35 0.89 6.10 0.00 6.10 0.50 5.60 20.21 0.35 20.56

0.08 0.42 0.35 0.85 6.68 0.00 6.68 0.50 6.18 26.39 0.35 26.74

0.04 0.42 0.35 0.81 7.24 0.72 6.52 1.00 5.52 31.91 0.35 32.26

0.00 0.42 0.35 0.77 7.83 0.78 7.05 1.00 6.05 37.96 0.35 38.31

0.00 0.42 0.35 0.77 7.83 1.57 6.27 1.00 5.27 43.23 0.35 43.58

C: 1 2 3

Less payment Term Loan Withdrawals Total payments

0.00 0.00 0.00

0.45 0.00 0.45

0.45 0.50 0.95

0.45 0.50 0.95

0.45 0.50 0.95

0.45 1.00 1.45

0.00 1.00 1.00

0.00 1.00 1.00

4

Net Cash accruals

4.90

9.48

14.01

19.61

25.79

30.81

37.31

42.58

PROJECTED BALANCE SHEET The balance sheet of a unit is a very important feature of the working of the unit. In a healthy unit, there is always a growth in total assets and liabilities every year. In a projected balance sheet on the liabilities side the reserves and surplus and on the assets side the cash and bank balances should show healthy growth.

S.no A: 1

Particulars

Liabilities Promoters Contribution

2

Share Capital

3

Reserves & Surplus

4 5

Year

1st

2nd

3rd

4th

5th

6th

7th

8th

0.15

0.15

0.15

0.15

0.15

0.15

0.15

0.15

3.00

3.00

3.00

3.00

3.00

3.00

3.00

3.00

4.55

9.58

14.62

20.21

26.39

31.91

37.96

43.23

2.25

1.80

1.35

0.90

0.45

0.00

0.00

0.00

3.60

4.14

4.68

4.68

4.68

4.68

4.68

4.68

13.55

18.67

23.80

28.94

34.68

39.75

45.80

51.06

3.46

3.11

2.77

2.42

2.08

1.73

1.38

1.04

0.35

0.35

0.35

0.35

0.35

0.35

0.35

0.35

3.11

2.77

2.42

2.08

1.73

1.38

1.04

0.69

5.54

6.08

6.62

6.62

6.62

6.62

6.62

6.62

4.90

9.82

14.75

20.24

26.32

31.74

38.14

43.75

13.55

18.67

23.80

28.94

34.68

39.75

45.80

51.06

Term Loan WCL Total

B:

Assets

1

Gross Block

2 3 4

5

Depreciation Net Block Current Assets Cash and bank balance Total

Target market We are going to focus on baby wear, children clothing and youth clothing (both boys and girls).

Market Segmentation The garments industry can be categorized in many segments, however our target market consists of;  Baby Wear.  Children Clothing.  Youth Clothing (Boys & Girls) 

Competitive Strategy 

 

To establish a system of recording feedback and complaints of customers in order to meet the need of customers in better way. To provide quality garments at best available price in the market. To provide new policies related to return and exchange of clothes which assists the customers in the event of need for return.