VANDANA CHAUHAN

(Garment Manufacturing Industry)

Address:A-18,Anand Parwat Industrial Area,New Rohtak Road,Delhi

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. Its contribution to industrial production, employment and export
earnings is very significant. This industry provides one of the basic necessities of
life. The employment provided by it is a source of livelihood for millions of
people. It also provides maximum employment with minimum capital investment.
Since this industry is highly labor-intensive, it is ideally suited to Indian condition.
This project report is prepared for the manufacture of gents shirts, gents trousers as
they find wide acceptance in local and international markets. Such establishments
can be easily set up by any person having the knowledge of cutting and stitching
operations.

MARKET POTENTIAL:
Readymade garments are the choice of urban people. It is also gaining wider
acceptance in semi urban and rural areas. The huge charges made by tailors and
delay in delivery have made people to switch over to readymade garments. In
domestic market and export market, it has made spectacular progress in the last
decade. This industry is becoming very vibrant and lot of foreign investment
pouring in this industry because of low risk and high earning nature of this
industry. As these products are fashion oriented, entrepreneurs should always keep
in mind the changing fashion styles. Considering its advantageous position, it is
assumed that there will be no constraint in marketing of gents readymade
garments.
 VANDANA CHAUHAN
(Garment Manufacturing Industry)
Address:A-18,Anand Parwat Industrial Area,New Rohtak Road,Delhi
TECHNICAL ASPECTS:

PROCESS OF MANUFACTURE:
The process involves the following steps: Procurement of Fabric : Dyed/
bleached/printed cotton/synthetic fabrics as per demand are to be procured from
the open market. The fabric will be inspected by laying on the inspection table
against light before cutting so that unevenness in colour/ shade or any other fault,
if any visible in the fabric are eliminated.

Cutting and Stitching: The inspected fabric is placed on the cutting table in
layers and then the different parts of the respective garments are demarked by a
chalk as per different sizes. Cutting is carried out by the cutting machine. Stitching
is carried out for individual portion of the garments by skilled workers with the
help of overlock, lock stitch machines etc.

Washing, Checking, Pressing and Packing: All garments are charged into
washing machine containing mild detergent and washed for 4 hours in order to
remove dirt and stains acquired during the manufacturing process. After washing,
the garments are hydro extracted to remove excess water and after this, these
garments are dried in tumbler dryer. Final checking is done before pressing and
packing on the checking table so that any fault in the piece may be removed and
protruding threads eliminated. The individual pieces are pressed by steam presses
to remove any wrinkle marks and packed in the carton boxes.

QUALITY CONTROL AND STANDARDS:

The quality of garments mainly depends on quality of fabric used. Therefore, care
must be taken while purchasing fabrics to ensure good color fastness properties,
uniformity in shade etc. Generally garments are made as per customer's
specification in respect of size, design and fashion.
 VANDANA CHAUHAN
(Garment Manufacturing Industry)
Address:A-18,Anand Parwat Industrial Area,New Rohtak Road,Delhi

DETAILS OF PROPERITOR

Name of Proprietor Vandana Chauhan

Permanent Address D-8/141,TIBBBIA College,Karol Bagh,S.O Central
Delhi-110005
PAN No. ATNPM1489R
AADHAR No. 694106875439
Location of Enterprise A-18,Anand Parwat,Industrial Area,New Rohtak Road,
Delhi.

IMPLEMENTATION SCHEDULE:
The project can be implement in 3 Month-

Sr.No. Activity Time Required(In

Months)
1. Acquisition of premises 1.00
2. Procurement & Installation of P/M 2.00
3. Arrangement of Finance 2.00
4. Recruitment of required Man power 2.00
Total Time Required(some activities 3.00
shall run concurrently)

MOTIVE POWER:
Total 55.5 HP is required to run this unit at installed capacity.

POLLUTION CONTROL:
The process of manufacture does not generate pollution. However, entrepreneurs
are to contact State Pollution Control Board for necessary guidance.
 VANDANA CHAUHAN
(Garment Manufacturing Industry)
Address:A-18,Anand Parwat Industrial Area,New Rohtak Road,Delhi

ENERGY CONSERVATION :
Maximum care should be taken while selecting the machinery and other electrical
equipments so as to ensure minimum power consumption.

TOTAL FIXED CAPITAL

S.No Particulars Rs
1. Plant & Machinery 500000/-
2. Furniture, Electrical Installation 300000/-
3. Other Assets including Preliminary /Pre-operative 50000/-
expenses
Total 850000/-

WORKING CAPITAL (PER MONTH)

STAFF & LABOUR WAGES
S.No. Destination of Employees Monthly Salary Number of Monthly Cost
Employees Rs’In Lacs
required

1. Marketing Manager 10000 1 10000/-

2. Sale Representative 6000 1 6000/-
3. Account Officer 5000 1 5000/-
4. Clerk/Store Keeper 3500 2 7000/-
5. Electrician 3500 1 3500/-
6. Peon/Watchman 3000 2 6000/-
Total 37500/-
Production Staff:
7. Production Manager 10000 1 10000/-
8 Cutting Master 8000 1 8000/-
9 Skilled Workers 3500 55 192500/-
10. Press man 3500 4 14000/-
11. Unskilled Workers 3000 6 18000/-
Total 242500/-

Raw Material (Per Month)

Description Unit Qty Rate/Unit(Rs) Amount
Cotton Fabric Mtrs 16500 80/- 1320000/-
Trim and 7500 15/- 180000/-
Embellishment(Nos)
 VANDANA CHAUHAN
(Garment Manufacturing Industry)
Address:A-18,Anand Parwat Industrial Area,New Rohtak Road,Delhi
Sewing 15000 LS 123750/-
Thread(Mtrs)
Washing Detergent LS 5000/-
Packing Material No. 15000 3 45000/-
Total 16,73,750.00

Utilities (Per Month)

Elecricity 22000/-
Water Charges 2000/-
Fuel for generator 5000/-
Total 31000/-

Other Contingent Expenses (per month)

Rent 15000/-
Advertisment & Publicity 3000/-
Postage/Stationary 1000/-
Repair & maintenance 2000/-
Transport/travelling Charges 5000/-
Telephone Bills 2000/-
Miscellenous Exps 2000/-
Total 39000/-

Total Recurring Expenses

Staff & Labour 336000/-
Raw Material 1673750/-
Utilities 31000/-
Other Contingent Expenses 39000/-
Total 2079750/-

Total Working Capital for 3 months (2079750*3)=6239250/-

 VANDANA CHAUHAN
(Garment Manufacturing Industry)
Address:A-18,Anand Parwat Industrial Area,New Rohtak Road,Delhi
TOTAL CAPITAL INVESTMENT & MEANS OF FINANCE
TOTAL CAPITAL INVESTMENT
1. Machinery & Equipment 8,50,000.00

2.Working Capital for 3 month 62,39,250.00

TOTAL 70,89,250.00
MEANS OF FINANCE
PROMOTER CONTRIBUTION 60,89,250.00
BANK 10,00,000.00
TOTAL 70,89,250.00

Machinery Utilization:
Capacity utilization of Machinery is considered as 75% of installed capacity.However,this can be improved to 80%
during 3rd year of production

Financial Analysis:

Cost of Production (Rs.)

Recurring Expenses 2,49,57,000.00
Depreciation on Machinery @ 15% 75,000.00
Depreciation on Furniture & Fitting @ 10% 30,000.00
Interest on Total Investment @ 16% 11,34,280.00
Total 2,61,96,280.00

Turnover (per year) (Sales)

Pcs Rate/Pcs Amount(Rs.)

Gents Shirt 50000.00 210.00 1, 05,00,000/-

Gents kurta Payjama 50000.00 350.00 1,75,00,000/-

Total 2,80,00,000/-

Net profit( per year) 18,03,720.00

Net profit Ratio 6.44%

Rate of Investment 25.44%

 VANDANA CHAUHAN
(Garment Manufacturing Industry)
Address:A-18,Anand Parwat Industrial Area,New Rohtak Road,Delhi

Break Even Point Analysis

1. Rent 1,80,000.00

2. Depreciation 1,05,000.00

3. Interest on Capital Investment 11,34,280.00

4. 40% of Wages of Staff & Labour 13,44,000.00

5. 40% of Other Contingent Expenses 1,87,200.00

Total Fixed Cost 29,50,480.00

Break Even Point

Fixed Cost * 100 = 2950480 *100= 62.06%
Fixed Cost+Annual Profit 2950480+1803720
 VANDANA CHAUHAN
(Garment Manufacturing Industry)
Address:A-18,Anand Parwat Industrial Area,New Rohtak Road,Delhi

BASIS AND PRESUMPTION:

 This project is based on single shift basis and 300 working days in a year.
 Since this industry is labour intensive, the working efficiency is considered
at 75%.
 Costs of machinery and equipment/ material indicated refer to a particular
make and approximately to those prevailing at the time of preparation of
this project.
 Installation and electrification cost is taken @ 10% of cost of machinery and
equipment.
 Non-refundable deposits, project report cost, trial production, security
deposits with Electricity Board are taken under preoperative expenses.
 Depreciation has been considered:
(a) On plant and machinery @ 15%
(b) On office furniture and fixtures @ 10%
 Interest on capital investment has been taken @ 16% per annum.