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