UNIFORM MANUFACTURING

PRODUCT CODE : 18001

QUALITY AND STANDARDS : NA

PRODUCTION CAPACITY : 30,000 Nos. (per annum)

Value : Rs. 56,40,000/-

MONTH AND YEAR : June, 2014

OF PREPARATION

PREPARED BY : Sh. Neeraj Sharma

Assistant Director (Tailoring)

1. INTRODUCTION
This profile shows the costs structure, profitability and other particulars for
making school uniforms for children in the age group 3-10 years. It is suggested that
school uniforms be made for six to eight months and ready-made garments for the
remaining months of the year in order to keep that unit functioning. Cloth
requirements, costs and product prices are worked out in this report on the basis of
average sizes of uniforms and readymade garments.

2. MARKET POTENTIAL
Uniform for school students is a must in any region. It can be assumed that
every student requires at least two pairs of uniform every year. This assumption
suggests that the proposed capacity of 6,000 pairs requires at least 3,000 students in
the location where this unit is to be set up. Therefore the unit would have enough
market potential in any area where 8-10 schools function. The total market potential
in any particular location can be worked out by multiplying the number of student’s
up to 10 years age in each school and the number of schools. Generally people prefer
to buy ready-made garments for children instead of getting it stitched. Additional
item proposed in this project is readymade garments for children. Capacity of such
ready-made garments is only 6,000 pieces and the market would not be difficult as
clothing is one of the basic necessities.

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3. BASIS AND PRESUMPTIONS

i. This project profile has been prepared on the basis of single shift of 8 hrs. per
day, 25 days in a month.
ii. The rates quoted in respect of salary and wages are above the minimum wages.
iii. Margin money is required at 30% of total capital investment.
iv. Cost of machinery and equipments, raw materials and consumables, other
expenses etc. indicated in the profile are based on the prices prevailing at the
time of project preparation. Therefore, these are subject to necessary changes
from time to time.
v. Interest on capital investment has been taken @ 15 %
vi. Depreciation has been considered as
a. On plant and machinery @ 10%
b. On office furniture and fixtures @ 20%
c. On other fixed assets @ 20%.

4. IMPLEMENTATION SCHEDULE
For commencement of production, the project will take a period of 6 months
from the date of approval of the scheme. Break-up of the activities with relative time
for each activity is shown below:
Name of Activity Period
Scheme preparation and approval 1 month
Provisional registration as MSME 1 week
Sanction of loan 3 months
Placement of orders for delivery of machinery 2 weeks
Installation of machinery 1 week
Electrification 2 weeks
Recruitment of staff and workers. 2 weeks

5. TECHNICAL ASPECTS
5.1. Process of Manufacturing
Manufacturing process involves following steps:
i. Procurement of fabric: As per the demand, dyed/bleached/printed
cotton/synthetic fabric of various colors is to be procured from the market.
Fabric will be inspected by laying on the inspection table against light before
cutting so that unevenness in color/ shade or any other fault if visible in the
fabric are eliminated.
ii. Cutting and Stitching: Inspected fabric is placed on the cutting table in the form
of layers and then the different parts of the respective garments are demarked
by a chalk as per different sizes. Cutting of garment parts is done manually.
Stitching is carried out for individual portion of the garments by skilled
workers with the help of over lock, lock stitch machines etc.

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iii. Checking, Processing and Packing: 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 may be eliminated. Individual pieces are pressed by
electric presses to remove any wrinkle marks and packed in the carton boxes.

5.2. Quality Control and Standards

No standards are available for the manufacturing of these items. However,
care must be taken to procure good quality apparel fabrics.

5.3. Production Capacity

Production capacity of the unit is 30,000 pieces of school uniforms including
6,000 pieces of children readymade garments.

5.4. Motive Power

4.5 HP power is required to run this unit at full capacity.

6. FINANCIAL ASPECT
6.1. Fixed Capital
6.1.1. Machinery and Equipments
Description No. Rate (Rs.) Amount (Rs.)
Singer universal sewing machine with 1/4 HP 10 12,000 1,20,000
Singer automatic zig-zag machine with 1/2 HP 2 26,000 52,000
motor
Singer overlock with 1/2 HP motor 2 15,000 30,000
Cutting table 2 3,500 7,000
Finishing Table 3 1,500 4,500
Press 3 2,500 7,500
Other miscellaneous assets (scissors, tapes, etc.) LS 8,000 8,000
Total 2,29,000

6.1.2. Other Fixed Assets (Rs.)

Erection and installation 10,000
Furniture 40,000
Pre-operative expenses 10,000
Total 60,000

Total Fixed Capital Rs. 2,89,000/-

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6.2. Working Capital (per month)

6.2.1. Land & Building
Building on Rent (Rs.)
Covered area for Production, office and store etc. 200 sqmt @ 35 per sq. mt. 7,000

6.2.2 Personnel
Designation Nos. Rate (Rs.) Amount (Rs.)
Manager/ Cutting Master 1 12,000 12,000
Skilled workers 12 10,000 1,20,000
Un-skilled workers 6 8,000 48,000
Peon/chowkidar 1 5,000 5,000
Total 1,85,000

6.2.3. Raw Material & Packaging Materials

Rate / Unit Amount
Material Qty (mts.)
(Rs.) (Rs.)
Plain dyed P/C cloth 400 75 30,000
P/C cloth for Shirting 550 65 35,750
Dyed Cotton cloth for Frock 460 60 27,600
P/C cloth for blouse 520 60 31,200
Fabric for RMG 520 60 31,200
Sewing thread, zips etc. LS 5,000
Packaging Material LS 6,000
Total 1,66,750

6.2.4. Utilities
Utilities (Rs.)
Electricity bill, water, sanitation 8,000

6.2.5. Other Contingent Expenses (Rs.)

Repair and maintenance @ 5% 13,750
Postage/stationery, telephone etc. 2,000
Miscellaneous 2,000
Total 17,750

6.2.6. Total Recurring Expenses (per month in Rs.)

Building Rent 7,000
Staff and labour 1,85,000
Raw material 1,66,750
Utilities 8,000
Other expenses 17,750
Total 3,84,500

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6.3. Total Capital Investment

Fixed capital Rs. 2,89,000
Working capital (for 2 months) Rs. 7,69,000
Total Rs. 10,58,000

7. FINANCIAL ANALYSIS
7.1. Cost of Production (per annum)
Description (Rs.)
Recurring expenses 46,14,000
Depreciation on machinery @10% 22,900
Depreciation on Furniture @ 20 % 8,000
Interest on total capital investment @ 15% 1,58,700
Total 48,03,600

7.2. Turnover (per annum)

Items Qty. Price. Value (Rs.)
Knicker 6000 200 12,00,000
Shirt 6000 170 10,20,000
Frock 6000 170 10,20,000
Blouse 6000 170 10,20,000
Readymade Garments 6000 200 12,00,000
Total 30000 54,60,000

7.3. Net Profit (per annum)

= Turnover – cost of production
= Rs. 54,60,000 – 48,03,600
= Rs. 6,56,400

7.4. Net Profit Ratio

Net profit per year
= X 100
Turnover per year

6,56,400
= X 100 = 12 %
54,60,000

7.5. Rate of Return

Net profit per year
= X 100
Total Capital Investment

6,56,400
= X 100 = 62 %
10,58,000

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7.6. Break-even Point

Fixed Cost (Rs.)

Depreciation 30,900
Rent 84,000
Interest 1,58,700
40% of wages for staff and labour 74,000
40% of other Contingent expenses 85,200
Total Fixed Cost 4,32,800

B.E.P
Fixed Cost
= X 100
Fixed Cost + Net Profit

4,32,800
= X 100
4,32,800 + 6,56,400

= 39.7 %

Addresses of Machinery Suppliers

 M/s. Apparels and Leather Technics Limited
B-283, Okhla Industrial Area, Phase-I, New Delhi-110 020.
 M/s. Divshum Industrial Sewing Machines,
B-283, Okhla Industrial Area, Phase-I, New Delhi-110 020.
 Datta & Datta India,
No. 887, Nai Sarak,New Delhi- 110006

Addresses of Raw Material Suppliers

 M/s. A.P. Impex, Coimbatore
7/505-2, A.L.R. Layout, Sakkthi Nagar,Pongalur,
Coimbatore - 641 667, Tamil Nadu, India
 M/s. Bansal Trading Company
No. 9/2890, Gurudwara Gali, Gandhi Nagar, Delhi - 110031
 Agents of Weaving Mills.
 Power loom Clusters in different states.

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