National Institute of Fashion Technology

Final Jury Document

Apparel Merchandising
Sourcing and Costing of Apparel Products

Submitted by-:
Kajal Nandan
Meenal Shrma
Pooja Gupta
Fabric Type & Content

In India, T-Shirts are being made with a vast range of fabric composition and knit
patterns.

Cotton is the most common and preferred fabric for T-shirts. However, other materials
such as Linen, spandex, polyester, rayon, and blends of two or three materials are also
used for manufacturing T-shirts. T-shirts made from spandex and polyester are
generally used for athletic apparels, while cotton and linen T-shirts are preferred for
daily casual wear. Manufacturers also focus on 100 percent combed and semi combed
cotton allowing comfort and trend.

The prime knits patterns used in T-shirt industry are:

Single Jersey
Interlock structures
Pique structures

SINGLE JERSEY & INTERLOCK FABRIC

Fabric composition:
• 100% Cotton
• 100% Combed Cotton
• 100% Semi Combed Cotton
• 95% Cotton & 5% Spandex
• 65% Cotton & 35% Polyester
• 80% Cotton % 20% Polyester
• 100% Polyester
• 95% Polyester & 5% Spandex

PIQUE FABRIC:
Fabric composition:
• 100% Combed Cotton
• 100% Cotton

GSM: T-shirts are manufactured with GSM starting at 110, 140, 150, 160, 180, 200, 220,
245, 260, 280 & 320.
Fabric Sourcing

All the raw materials are being sourced from the domestic factories, except mélanges
which is sometimes being sourced from countries in the northern hemisphere.

Tirupur in Tamil Nadu and Ludhiana in Punjab are the two important knit manufacturing
centres in India. Other centres are Vapi in Gujarat, Delhi, Bangalore and Mumbai. All
the different types of knit fabrics for t-shirts are sourced from the factories of these
centres.

Lead Time: On an average, a domestic supplier takes 20 to 30 working days for

dispatch.

Price for fabric offered

Quality of a knit fabric material depends upon its composition, knit type and its GSM.
Therefore the cost of different knitted fabric on the basis of their composition, knit type
and GSM is given below-:

Price range of Knitted Fabrics according to composition in India

Type Min Price Max Price

100% Cotton Rs 120/Kg Rs 500/Kg
100% Polyester Rs 190/Kg Rs 360/Kg
Blended Rs 180/Kg Rs 550/Kg
Polyester Spandex Rs 180/Kg Rs 400/Kg

Price range of Knitted Fabrics according to knit type in India

Type Min Price Max Price

Jersey Knit Rs 200/Kg Rs 485/Kg
Interlock Rs 200/Kg Rs 500/Kg
Pique Knit Rs 250/Kg Rs 550/Kg

Price range of Knitted Fabrics according to GSM in India

GSM Min Price Max Price

100-150 Rs 125/Kg Rs 480/Kg
 100-150 Rs 40/Meter Rs 250/Meter
150-200 Rs 160/Kg Rs 500/Kg
200-250 Rs 200/Kg Rs 325/Kg
250-300 Rs 188/Kg Rs 550/Kg
150-200 Rs 250/Meter Rs 350/Meter
50-100 Rs 195/Kg Rs 250/Kg

Trims Details

Trims used in Basic T-Shirt are:

1. Threads
2. Mobilon Tape
3. Care Labels

1. Thread

Major Manufacturer :
a. Vardhman Pvt. Limited
b. Welspun Group
c. Deccan
d. Reglox
e. Jay Shubham Threads

2. Mobilon Tape
Some of the suppliers of Mobilon tapes are:

Supplier/ Type Color Material Pattern Cost

Company
Name

Mithra & Double White Polyuretha Plain 270/kg

Company Sided ne
(Tirupur)

Wellknown Single Transpare Polyuretha Plain 270/kg

Syndicate Sided, nt ne
(Tiruppur) Double
Sided

MLB Single White, - Plain 310/kg

Enterprises Sided, Transpare
 (Bangalore) Double nt
Sided

Om Narrow Double Multicolor Acrylic Plain 250/kg

Fabric Sided
(Gurugram)

Sri Sankar Single Black, - Plain 330/kg

Textile, Sided Brown,
Tiruppur Creamy,
Grey

Market Scenario of T-shirt

Worldwide T-shirt exports by country totaled US$47.3 billion in 2019. That dollar amount
reflects a 7.9% gain for all T-shirt exporters over the five-year period starting in 2015
when exported T-shirts were worth $43.9 billion. Year over year, the value of globally
exported T-shirts slowed by -0.3% from 2018 to 2019.

Among continents, suppliers in Asia sold the highest dollar worth of exports for knitted
or crocheted T-shirts (inclusive of all types of materials) during 2019 with shipments
valued at $26.5 billion or 55.9% of overall T-shirt exports. In second place were
European shippers at 30.4%. Smaller percentages of total T-shirt exports were sourced
from Latin America (7.7%) excluding Mexico but including the Caribbean, North America
(3.7%), Africa (2.3%) and Oceania (0.04%) led by Australia and Fiji.

Cotton is the dominant material for T-shirt manufacturing. Cotton T-shirts accounted for
$32 billion in international sales or about two-thirds (67.5%) of total exported T-shirts.
Similar apparel made from textiles other than cotton equaled $15.3 billion for the
remaining 32.5%.

The 4-digit Harmonized Tariff System code prefix for knitted or crocheted T-shirt is 6109.
Drilling down, cotton T-shirts fall under 610910 while T-shirts made from other materials
are categorized as 610990.

During 2019, India is the 3rd largest country in the World for exporting T-Shirt, made up
of Cotton, worth $2 billion(6.2%). During 2019, India is the 7th largest country in the
World for exporting T-Shirt, in non- cotton textile, worth $667.7 million (4.3%).

Overall India secured 4th position in the world in exporting T-shirt worth $2.66 billion
(5.6%).

Flow Chart of Merchandising

Major Buyers

Knit t-shirts is one of the largest apparel export commodities for India, accounting for a
share of around 16% of total apparel exports, both knit and woven. The T-shirt market in
India is estimated to be at Rs 5,400 crore, according to the latest report from Technopak
Analysis.

Main markets of exports for India are US, Canada, popular fashion houses in Europe
like Spain, Italy, France, UK, The Netherlands, etc , Australia, Japan, South Africa and
the Middle East.

India’s Knitted T-Shirt Exports

Major buyers include many world renowned companies and labels such as Zara, Gap,
H&M, Mango, El Corte, Desigual, Tommy Hilfiger, Lacoste, FILA, St. Michael, United
Colors Of Benetton, Kiabi, Marks & Spencer, C&A, Jockey, Tape L'Oeil, J.C.Penny,
Gallery Lafayette, Wal-Mart, Old Navy, Quicksilver, Decathlon, Migros, Primark, Manor,
S. Olivier, Euro Disney, Group Andre, Tom Tailor, Adidas, Carrefour, La Redout,
Karstadt Quelle, Monoprix, Devianne, Oxbro, Replay, Nautica, Abacrobi & Stitch, MRK,
C&A, Switcher, Primark, Diesel, ARMY, M&S, Respect, HTHP, Whale, Duke, Nike and
Reebok.

Indian retailers include Monte Carlo, Allen Solly, Peter England, Woodland, Reliance
clothings, ColourPlus etc.
Indian t-shirt industry faces fierce competition from countries like China, Bangladesh,
Vietnam, Indonesia and Cambodia. Higher bank interest rate, shortage of labour,
increase in wages and power cost, fluctuation in foreign currency, increase in
transportation cost and following up of compliances are some major challenges.

FOB( Free on Board)

The FOB price of some of the best T-shirts made in India is about $7.5. But in US retail
markets, it is sold at about $45-50! On an average, T-shirts are priced five to six times
higher by the US buyers.

Major T-Shirt manufacturing industries in India

Sunstar Uniforms:- Sunstar Uniforms is a leading t-shirts manufacturer in Ahmedabad,

Gujarat, India. Some of their clients are Birla Group, Reliance, Adani’s, ONGC, Tata
Motors, Maruti Suzuki. They provide bulk requirements of t-shirts, crew neck t-shirts,
polo t-shirts, raglan t-shirts at lowest rates.

Rajasri Export:- Raja Sri Exports was established in the year 2000 in Tirupur, India.
Their areas of service include Textiles & Apparels, corporate t-shirts, fabric
manufacturing and ready stock plain t-shirts. They export to countries like Europe, UK,
USA and Dubai. Their range of products includes Round Neck T Shirt, Collar t shirts,
crew neck t-shirts etc.

Casablanca Apparel Pvt Ltd:- Established in 1993, Casablanca Apparels is one of

India’s largest manufacturers of quality promotional wear. Their range of products
includes t-shirts, shirts, jackets, polo shirts to over 1500 business partners and 4,000
companies in India and overseas. Some of them are Ruffty, Carbonni, HighO2,
WildHorn, 69Turtles and also Adidas.

Ramsay Exports: Ramsay Exports is one of t-shirt manufacturers in Tirupur – South

India. They manufacture t-shirts for exports as well as for PAN India Market. They
manufacture T Shirts( Print Tees, Polo Tees & more, Hoodies, Leggings, Boxers &
other knitted garments).

Bhagwati MFG CO:- Established in the year 1990, they are a prominent manufacturer
and wholesaler of t-shirts, bulk t-shirts, Polo t-shirts based in Ahmedabad, Gujarat, India.
Stellar Clothing Company:- Incorporated in the year 2007, they are based in Tirupur
and are manufacturer, exporter, wholesaler of t-shirts, polo t-shirt & printed t-shirt.

Vogue Sourcing:- Established in 1992, Vogue Sourcing is a Tiruppur based

government recognized and ISO 9001 certified t-shirt manufacturer and supplier. Their
range of products includes T-Shirt, Polo Shirts, hoodies, sweatshirts, uniform,
sportswear. They export to countries like the UK, Australia, and France etc.

Other t-shirt manufacturing industries are Madhavan Exports Pvt Ltd, Eastman
Exports, etc.
 COSTING OF GARMENT PRODUCTION

Factory Details

Factory Location= Sector 63, Noida, India

Area of the factory= 9000 sq ft

Total number of working days in a factory=26

Clock Time= 8 hours

Line efficiency considered=70%

Total number of machines per sewing line=40

Total number of sewing machines in the factory=240

Order Quantity=1,50,000

Salary of an operator=Rs 8500/month

Operation Breakdown

S.NO. OPERATION MACHINE SAM HOURLY

TARGET

1. Care Label attachment SNLS 0.22 272

2. Front and Back part match Manual 0.18 333

3. Shoulder Joint Over-lock 0.36 166

4. Neck Rib measure and cut Manual 0.4 150

5. Neck Rib join Over-lock 0.82 73

 6. Neck Round Top Stitch Flat-Lock 0.46 130

7. Main Label attachment with SNLS 0.35 171

corner fold

8. Sleeve hemming Flat-Lock 0.37 162

9. Sleeve and body match Manual 0.15 400

10. Sleeve attachment Over-lock 0.71 84

11. Armhole Top Stitch Flat-Lock 0.36 166

12. Under Sleeve and Side Seam Over-lock 1.05 57

13. Body Hemming Flat-Lock 0.34 176

14. Final Thread Cut and Sticker Manual 0.5 120

Remove

6.27

Sewing SAM = 6.27

Spreading & Cutting SAM

Fabric consumption for 1 t-shirt - 1.2 meters

Total fabric consumption for 150000 t-shirt pieces - 180000 meters

Marker length - 9 meters

Maximum Plies - 200

Number of shifts - 180000/(9*200)= 100

Marker preparation - 0.90 hours/marker = 54 min/marker

Spreading time per ply (min) - 0.85

Spreading time for whole orders - 100 * 0.85 * 200 = 17000 minutes

Cutting time per garment marked - 15 min

Cutting time for all pieces - 15 * 100 = 1500 min

Total time for marker making, cutting and spreading - 54+17000+1500=18554 min

SAM for cutting and spreading= 18554/150000= 0.12

SAM for cutting and spreading= 0.12

Fabric Consumption
Men's Basic T-shirt
Description: Men's Basic T-shirt-short sleeves
Measurements in cm: (Finished garment)

T-Shirt size-L

Measurement in cm size L

Total Length 70cm

Chest 60cm

Sleeve Length 24cm

Neck Round 52cm

Neck Rib Width 3cm

Hem 3cm
Patterns are generally made with the seam allowance and cutting allowance. Generally,
12 cm is added with the total of body length and sleeve length.
That is,
Fabric consumption =
(Body length + Sleeve length + allowance) * (Chest + allowance) * 2 * GSM
10000
= (70 + 24 + 12) * (60 + 3) * 2 * 140
10000
= 187 grams
Body & Sleeves : 187 grams
Neck round fabric : 10 grams (approximately)
Gross weight : 197 grams Therefore, the fabric consumption per garment is 197 grams.

Cost of fabric per kg is calculated and given

Particulars Charges

34's combed yarn Rs.135.00

Knitting charge Rs.8.00

Dyeing charge Rs.45.00

Compacting charge Rs.6.00

Fabric wastage @ 5% Rs.9.70

Fabric cost per kg Rs.203.70

Fabric consumption per 197 gms

garment

Fabric cost per garment Rs.40.13

Cost of trims
Thread: Rs 5.97
Labels: Woven main label (2.5 cm width x 7 cm length): Rs 0.35
Polyester printed wash care label: Single colour print: Rs 0.10
Hang tag: Rs 0.40
So the total cost of trims is Rs 6.82 per garment.
Cost of accessories:
Polybags: Normal - Rs 0.30 per garment
Master Polybag: Rs 2 per master polybags to contain 8 garments - Rs 0.25 per garment.
Export carton: Normal: Rs 40 per carton to contain 48 garments - Rs 0.80 per garment.
So the total cost of accessories is Rs 1.35 per garment.

CMT charges are calculated as:

Total available capacity per month (in minute) = 26 working days*8 hours/day*60min
=12,480 minutes

Labour cost per minute = (Monthly salary of an operators/Total minutes available in

the month) at 100% efficiency

= 8500/12480

=0.681 Rs.

Sewing cost = (SAM of the garment * Minute cost of the labour)/Line efficiency (%)

= (6.27*0.681)/70% = Rs 6.099

Cutting cost = (SAM of cutting * Minute cost of the labour)/cutting efficiency (%)

= (0.12*0.681)/70% = Rs 0.116

Production cost of garment (CMT) = sewing cost+ cutting cost

= 6.099+0.116= Rs 6.215

Garment costing
Price of garment estimation is given in Table

Particulars Charges

34's combed yarn Rs 135.00

Fabric cost per garment Rs 40.13

Cost of Trims Rs 6.82

CMT Charges Rs 6.21

Cost of accessories Rs 1.35

Cost of Garment Rs 54.51

Rejection of garments (commonly Rs 1.63

3%)

Local Transport Rs 1.00

Profit@15% approximately Rs 8.17

Commission/ pc Rs 2.00

Insurance Rs 1.13

Apparel Price(FOB) in Rs Rs 68.44

Apparel Price(FOB) in US ($) $ 0.92

Apparel Price(FOB) in Euro E 0.81

Factory Rent & Electricity Cost

Rent of the factory per month - Rs 80000

Total electricity consumption per month - Rs 40000

Overhead Cost

Administrative expense: office salaries, insurance, utilities, sample cost etc. - Rs

170000

Maintenance cost of machines per month - Rs 7000

Machine depreciation cost per month - Rs 5000

Returns & allowances - Rs 6000

Security - Rs 8000

Total overhead/per month - Rs 196000

Direct Expense

Direct expense = Rs 68.44*1,50,000

Direct expense = Rs 1,02,66,000

Indirect Expense

Indirect expense = Factory Rent + Electricity cost + Overhead cost

Indirect expense = Rs 3,16,000

Total Expense

Total Expense = Direct expense + Indirect expense

Total Expense = Rs 1,05,82,000

 Time and Action Plan

Order quantity : 1,50,000 pieces

Let-:

Master L/C receiving date : 15th May 2020

Fabric source from: China

Production Capacity : 10,000 metre/ day

Consumption of fabric : 1.25m/garment including wastage

Garment accessories sourcing from: Hongkong

Finishing accessory sourcing from: Local market

General Information about the company

Total Sewing Machines : 240

Clock Time : 8 hours

Total machines/ line : 40

Production in each line : 80 pieces/hour

T&A Plan

Total fabric required = 1,50,000 x 1.25 = 1,87,500 metres

Time required for production of fabric = 19 days

Total lines = 240/40 = 6

 Production / day = 80 pieces x 6 lines x 8 hours = 3840 pieces/day

Total days required to stitch = 1,50,000/3840 = 39 days

S.No Date Day Action/Activity Department Remarks

.

1 18 May Monday Performerinvoiceby Commercial

2020 fabric and trims Department
supplier given to
garment factory

2 20 May Wednesday Proto Sample Sent Sampling 2 Made - One to send to

2020 Department buyer and one to retain

3 20 May Wednesda Back to back L/C Commercial

2020 y opened for fabric Department

4 21 May Thursday Back to back L/C Commercial

2020 opened for trims Department

5 28 May Thursday Proto Sample Remarks Buyer Approved

2020 Received

6 30 May Saturday Fit Sample Made & Sampling

2020 Sent Department

7 27 May Wednesday Garment Commercial

2020 accessories Department
received from
Hongkong
8 27 May Wednesday Samples fabric Commercial
2020 approval received Department

9 28 May Thursday Trims testing Testing

2020 Department
10 28 May Thursday Approval of Lab dip Testing
2020 Department

11 28 May Thursday Fabric testing Testing Requested to send 20

2020 Department yardage of fabric for pre
production sample

12 6 June Saturday Fit Sample Remarks Buyer Approved

2020 Received

13 8 June Monday Size-Setsample Sampling

2020 made & sent Department

14 8 June Monday 20 yardage of fabric Commercial

2020 received from China Department
(for PP sample)
15 15 June Monday Size Set Sample Buyer Approved
2020 Remarks Received

16 15 June Monday Pre-production Production

2020 meeting held Department

17 17 June Wednesday Pre- production Sampling

2020 sample made & sent Department

18 18 June Thursday Fabric production in Production Total fabric required =

2020 China completed Department 1,50,000 x 1.25 =
1,87,500 metres

Time required for

production of fabric = 19
day

19 25 June Thursday Pre- production Buyer Approved

2020 Sample Remarks
Received

20 25 June Thursday Fabric x-factory Commercial Unloading - loading takes

2020 Department around 3-4 days
(China)

21 26 June Friday Trims received in Commercial All trims reach the

2020 house Department garment factory
22 27 June Saturday Order for finishing Commercial To be sourced from a
2020 accessories given Department local market.

23 1 July Wednesda Cut order plan made Cutting

2020 y and completed Department

24 6 July Monday Finishing accessories Commercial

arrived in-house. Department

25 7 July Tuesday Fabric received in Commercial Bulkfabricreachesthe

2020 house Department garment factory

26 7-8 July Tuesday- Pilot Production Cutting & 100 - 150 pieces to be
2020 Wednesday Sewing produced
Department
of Pilot
Production

27 9 July Thursday Approval for Pilot Cutting &

2020 production Sewing
Department
of Pilot
Production

28 10 July Friday Bulk Cutting Cutting

2020 Department

29 11 July Saturday Bulk Stitching starts Stitching Total lines = 240/40 = 6

2020 Department Production / day =
80x6x8 =3840
pieces/day

Total days required to

stitch = 150000/3840 =
39workingdaysrequired

30 13 July Monday Bulk Finishing starts Finishing Stitching & Finishing is

2020 Department done simultaneously

31 22 July Wednesda TOP Sample sent Sampling

2020 y Department

32 25 July Saturday Booking of vessels for Commercial

2020 shipment Department
33 30 July Thursday TOP Sample Approved Buyer
2020
34 3 Aug Monday Sending production Sampling
2020 sample to buyer Department

35 10Aug Monday Production Sample Buyer Approved

2020 Remarks Received

36 25 Aug Tuesday Stitching Completed Stitching

2020 Department

37 26 Aug Wednesday Finishing Completed Finishing

2020 Department

38 27 Aug Thursday Buyer qualityaudit Buyer Final inspection by buyer

2020

39 29 Aug Saturday Goods Ex factory Commercial

2020 Department