Infant GarmentsPR O D U C T : In fa n t G a rmen tsPR O D U C T C O D E : 2 6 4 1 0 4Q U A LITY A N DS TA N D A R D S : C h ild ren G a rments Pa cka g in gfo r E xp o rt IS4 0 3 9G a rmen t G uid e fo r Pro cessin go f la b els IS 1 0 9 9Pro d uctio nC a p a city (p er a n n um)Q ua n tity: (N o s. )6 0 , 0 0 0 N o s.Va lue : R s. 1 1 , 0 4 , 0 0 0M O N THA N DYE A R : Ja nua ry, 2 0 0 3O F PR EPA R ATIO NPR EPA R EDBY : S ma llIn d ustriesS erviceIn stituteO kh la ,N ew D elh i -1 1 0 0 2 0Ph o n eN o. 2 6 8 3 8 1 1 8Fa x: 2 6 8 3 8 0 1 6E-ma il sisi@ d el. 3 vsn l. net. inINTRODUCTIONReady made garments for infant is anew area in garment manufacture whichhasbeendevelopingveryfastinourcountry in recent years, as there is goodscopetosetuptheinfantgarmentmanufacturingunitinthecountrytofulfil the huge demand in domestic aswell as export market. Infant garmentsare generally manufactured from specialtype of fabrics having different coloursand shades attached with frills, tape laceat different places of garment to attractthecustomer.Itisessentialforanentrepreneur to keep certain factors likecolourcombinationofdifferentfabricanddesigninmindasthesemakeasignificant changes in garments. Sometime,smallmotifofembroideryworkand fixing stickers on the garments makemore attractive. The demand of infantgarmentisincreasingdaybydaytourbanizingofthecitiesanditisverysimpletomanufactureandeasilymarketablebothinurbanandruralareas.MARKET POTENTIALAs this is a growing field in the areaofreadymadegarmentindustryandconsumers in urban areas are preferringto purchase the infant garments directlyfrom showrooms rather stitching it fromthe tailor. There will not be any constraintin marketing of children garments. It isalso a difficult task for a tailoring shopto stitch infant garments as per choice.At present, these industries are mostlypresent in selected cities only, so thereisagoodscopetomaketheventuresuccessful. The main market of ready-madegarmentinIndiaisbasedonDelhi,Mumbai,Kolkata,Chennai,Punjab, Bangalore, Rajasthan and U.P.1154Theexportmarketforreadymadegarments are also based on Germany,USA,Canada,U.K.,IndonesiaandAustralia, Brazil, West Africa, France, Italyand Holland etc.BASI S AND PRESUMPTIONSThisproj ectispreparedonthefollowing assumptions:1. Thenumberofworkingdaysisconsidered as 300 working daysin a year on single shift basis.2. Sincethisindustryislabourintensive, the working efficiencyis considered at 75%.3. Costofmachi neryandequipment/material indicatedrefer to a particular make andapproxi matel ytothoseprevai l i ngattheti meofpreparation of this project.4. Installation and electrification costtaken@10%ofthecostofmachinery and equipment.5. Non-refundable deposits, projectreportcost,trialproduction,securitydepositwithElectricityBoardaretakenunderpre-operative expenses.6. Depreciation has been considered:a) On machinery and equipment@ 10%b) On Office furniture and fixture@ 20%7. Interest on capital investment hasbeen taken @ 15% per annum.8. Mi ni mum25%of totali nvestmenti srequi redasmargin money.IMPLEMENTATION SCHEDULEImplementation period in months forexecuting this project stage-wise is givenbelow:Sl.No. Activity Period1. Selection of Site/working 1 monthshed2. Formation of Company 1 month(Ownership/Partnership)3. Preparation of feasibility 1 monthreport4. Registration with 1 monthCommissioner ofIndustries /D.I.C5. Arrangement of finance 3 months(Term loan and workingcapital)6. Procurement of machinery 1 monthand requirement7. Plant and m/c erection 2 weeksand electrification8. Arrangement of raw 1 monthmaterial includingpackage material etc.9. Recruitment of man 1 monthpower10. Selection of market 1 monthchannel11. Miscellaneous work 2 monthslike power/waterconnection etc.Note: Consideringthatsomeoftheaboveactivitiesmaybeoverlapping,theproj ectimplementation will take a totalperiodofsixmonthsapproximately for starting theproduction.INFANT GARMENTS55TECHNICAL ASPECTSProcessofManufactureThe process involves the following steps:1. ProcurementofFabric:Dyed/printed/bleachedcotton/syntheticfabrics as per demand are to beprocured from the open market.Thefabricwillbeinspectedbylyingontheinspectiontableagainst light before cutting so thatunevennessincolour/shadeoranyotherfaultifvisibleinthefabric are eliminated.2. CuttingandStitching:Theinspected fabric is placed on thecuttingtableinlayersandthenthedifferentpartsofrespectivegarmentsaredemarkedbyachalkasperdifferentsizes,cuttingiscarriedoutbythescissor. Stitching is carried out forindividualportionandthegarments by skilled workers withthehelpofstitchingandoverlocking,doubleneedlestitching machine etc.3. Checking, Pressing and Packing :Checking is done before pressingand packing in the checking tableso that any fault in the garmentmayberemovedandthreadseliminated. The individual piecesarepressedbysteampresstoremoveanywrinklemarksandpacked in carton boxes.QualityControlandStandardsThequalityofgarmentsmainlydependsonqualityoffabricused.Therefore,caremustbetakenwhilepurchasingfabricstoensuregoodcolour fastness made as per customersspecificationinrespectofsizedesignand fashion.Production Capacity (per year) Qty. (Nos.)1. Baby frocks/shirts 240002. Baby suits 240003. Baby bed sheets and blanket set 12000Total Rs. 11,04,000UtilitiesPower +Water.PollutionControlThe process of manufacture does notgenerate pollution. However, entrepreneursaretocontactStatePollutionControlBoard for necessary guidance.EnergyConservationMaximum care should be taken whileselectingthemachineryandotherelectricalequipmentssoastoensureminimum power consumption.FINANCIAL ASPECTSA. Fixed Capital(i) Land and BuildingCovered area 250 sq.mt.@Rs. 2 per sq.mt (Rented) Rs.5,000 per month.(ii) Plant, Machinery and EquipmentsSl. Particulars Ind/ Qty. Rate ValueNo. Imp (Rs.) (Rs.)1. Foot operated Ind 20 4,500 90,000sewing machinewith all access-ories2 Double needle Ind 1 35,000 35,000stitching machinewith motor andall accessoriesand motor3. Overlock stitch- Ind 01 26,000 26,000ing machine com-plete with all acce-ssories and motorINFANT GARMENTS56Sl. Particulars Ind/ Qty. Rate ValueNo. Imp (Rs.) (Rs.)4. Electric Press Ind 02 1,000 2,000(steam)5. Installation charges 15,300@10% withelectrification etc.6. Workshop and 9,700testing equipment7. Office equipment 20,000(iii) Pre-operative expenses 12,000Total 2,10,000B. Working Capital (per month)(i) Staff and LabourSl. Designation No. Salary/ TotalNo. month (Rs.)1. Production cum 1 6,000 8,000MarketManager2. Supervisor/Inspection 1 3,000 3,0003. Accountant-cum- 1 3500 3500purchase officer4. Clerk-cum-store 1 3,000 3,000keeper5. Peon-cum-Chowkidar 2 2250 4500Total 22,000Technical Staff andLabour6. Pattern maker cum 1 5500 5500Master7. Checkers 1 2500 25008. Skilled workers 12 2,500 30,0009. Unskilled worker 4 2250 9,000Total 69,000(+) Perquisites @20% 13,800Total 82,800(ii) Raw Material (per month) (on Single Shift Basis)Sl. Particular Qty. Rate ValueNo. (Rs.) (Rs.)1. Terry cot/Cotton 2400 110 2,64,000fabrics of various mtr.mtr.colour and design2. Knitted shoddy 4000 60 2,40,000raised fabrics/cotton fabricsSl. Particular Qty. Rate ValueNo. (Rs.) (Rs.)3. Cotton fabrics/ 1500 70 1,05,000blanket cloth4. Foam L.S. 39,5005. Lining cloth L.S. 6,0006. Sewing thread 2500reels 3 75007. Misc. items like 5 25,000label and packingmaterialTotal 6,87,000(iii) Utilities (per month) (on Single Shift Basis)1. Power/Electricity and Water charges Rs.3,200(iv) Other Contingent Expenses (per month)Sl. Item AmountNo. (Rs)1. Rent 5,0002. Advertisement and Publicity 1,5003. Postage, stationery and Telephone 1,5004. Travelling/transportation charges 3,0005. Taxes/Insurance 1,0006. Miscellaneous 1,0007. Consumable store 1,500Total 15,000(v) Total Recurring Expenditure (per month) (Rs.)1. Salary and Wages 82,8002. Raw material 6,87,0003. Utilities 3,2004. Other contingent expenses 15,000Total7,88,000C. Total Capital Investmenti) Fixed Capital Rs.2,10,000ii) Working capital (3 months) Rs.23,64,000TotalRs. 25,74,000MACHINERY UTILISATIONCapacityisutilized75%oftheinstalled capacity.INFANT GARMENTS57FINANCIAL ANALYSIS(1) Cost of Production (per annum) (Rs.)a) Total recurring expenditure 94,56,000b) Depreciation on m/c and 16,830equipment @10%c) Depreciation on work shop, testing 5940equipment and office equipment@20%d) Interest on total investment @15% 3,86,100Total 98,64,870Say 98,65,000(2) Turnover (per year)Sl. Item Qty. Rate ValueNo. No. (Rs.) (Rs.)(i) Baby frocks/shirt 24,000 180 43,20,000of different design,shade and size(ii) Baba suits of 24000 220 52,80,000different colourdesign, shadeand size(iii) Baby bed sheets 12000 120 14,40,000and blanket setTotal 11,04,000(3) Net Profit (per year) (Before Income Tax)Turnover-Cost of Production =Net ProfitRs.1,10,40,000-Rs.98,65,000=Rs.11,75,000(4) Net Profit Ratio= Net profit 100Total turn over= 117400010011040000= 10.6%(5) Rate of Return on Investment= Net profit 100Total capital investment= 11750001002574000= 45%(6) Break-even Point (% of Total ProductionEnvisaged)(i) Fixed Cost (Rs.)i) Depreciation 22770ii) Rent 60,000iii) Interest 3,86,100iv) 40% of wages for staff and labour 3,97,440v) 40% of other expenses including 58,560utilitiesvi) Insurance 12,000Total 9,36,870(ii) Net Profit (per year) Rs. 11,75,000B.E.P. FC 100= FC +Profit936870100= 936870+1175000= 44%Addressesof Machi neryandEquipmentSuppliers1. M/s. Kapoor Sewing machineF-174 B, Laxmi Nagar,Delhi-1100922. M/s. K.C. Sewing MachineJ agatpuri,Delhi-1100513. M/s. Paul Brother and Co.1523, Nai Sarak,Delhi-1100064. M/s. Rajan Hosiery Enterprises21-B, New Qutab Road,Delhi-110006RawMaterialSuppliersThe Raw Material is available in thelocal market.INFANT GARMENTS