for manufacturing of

READYMADE GARMENTS

at Proposed Site :
PLOT NO. 621, PACECITY – II, SECTOR - 37,
GURUGRAM - 122050, HARYANA

Submitted by :

M/s ENDYMION EXPORT PRIVATE LIMITED

Registered Office at F - 301, Lado Sarai, New Delhi - 110030,

M/s SUSHIL CHANDRA JAIN (HUF) and M/s VIKAS JAIN (HUF)
Office at Flat no. - 104/105, Ivory Court - 2, Essel Towers, M. G. Road, Gurugram - 122002,

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INTRODUCTION:
Manufacturing of readymade Garment. 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 labour-intensive, it
is ideally suited to Indian condition. This project report is prepared for the
manufacture of gents shirts, as it 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 shirts.

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PROMOTERS COMPANY DETAILS :
Promoter no. (1)

Company Name : M/s ENDYMION EXPORT PRIVATE LIMITED,

CIN no. : U37100DL2011PTC217326]
Registered Office : F - 301, Lado Sarai, New Delhi - 110030,
Directors and Promoters : Shri Vikas Jain & Smt. Mini Jain

Promoter no. (2)

Company Name : M/s SUSHIL CHANDRA JAIN (HUF)

PAN no. : PAN no. ABAHS5433G
Office Address : Flat no. - 104/105, Ivory Court - 2, Essel Towers,
M. G. Road, Gurugram - 122002, Haryana,
Karta : Shri Sushil Chandra Jain

Promoter no. (3)

Company Name : M/s VIKAS JAIN (HUF)

PAN no. : AAJHV2535E
Office Address : Flat no - 104/105, Ivory Court - 2, Essel Towers,
M. G. Road, Gurugram - 122002, India
Karta : Shri Vikas Jain

Employment Potential : 103 Persons

BEP : 48.03%

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Projected Sales Cost & Profitability Statement

Particulars (in Rs. Lac)

A. Income 650.00

B. Cost of Production

 Consumables 390.00
 Utilities 10.50
 Direct Labor 71.28
 Repair, Maintenance & Insurance 2.50
 Depreciation 23.20
Total 497.48

C. Gross Profit (A-B) 152.52

D. Administrative Expenses 18.35

E. Other Overheads 13.00

F. Selling Expenses @ 5% on Sales 32.50

G. Provision for Taxation 22.72

H. Net Profit after Taxation 52.95.

Break Even Analysis (in Rs. Lac)

A. Income 650.00

B. Fixed cost
 Repair, Maintenance & Insurance 2.50
 Depreciation 23.20
 Administrative & other overheads (40% fixed) 15.44

Total 41.14

C. Profit before Taxation 75.67

D. Contribution (B+C) 155.31
E. DEP = B/A * 100 6.33

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Details of Machinery/Equipments proposed for the project (in INR)

Sr. Particulars Qty. Rate Amount

1. Stitching Machines 30 sets 28,000.00 840,000.00

2. Furniture & Fixtures & Accessories 01 320,000.00 320,000.00

3. ISDN Telephone Lines (2 MBPS) 01 180,000.00 180,000.00

4. Misc. Computer Accessories LS 1,00,000.00

6. Air conditioner (30 Ton) 5,63,000.00

Total 20,03.000.00

FINANCIAL FEASIBILITY

Cost of Project (Rs. In lacs )

a) Land , Building & Furniture 300.00

b) Machinery 20.03

c) Other Fixed Assets 2.00

d) Working Capital Requirement 30.00

352.03

MEANS OF FINANCE

a) Equity Share Capital & Unsecured Loans 150.00

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INCOME TURNOVER

Item Amount (Rs.)

Sales of Garments 6,50,00,000.00

The Gross Annual turnover from

Sales is estimated

Around Rs. 200.00 lacs initially which is likely to multiply

Manifolds in the subsequent years ____________

6,50,00,000.00

Say Rs. 650.00 Lacs

Consumables No. of days Rate Amount (Rs.)

Fabric, Swrovski, Emb.Material, 300.00 130000 .00 3,90,00,000.00

Button, Thread, Ink. Ribbon,

Paper Floppies, CDs etc Say Rs. 390.00 Lacs

DIRECT LABOUR

Designation Nos. Average Salary pm Amount (Rs.)

Direct Labour 30 16,414 5,40,000.00

5,40,000.00

Add 10% other benefits 54,000.00

-------------------

5,94,000.00

Yearly Expense 71,28,000.00

Say Rs. 71.28 Lacs

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UTILITIES

POWER 100 KW

Expenses on Power Supplied by HVPN 10,50,000.00 pa

+ Generator 10.50 Lacs

REPAIR MAINTENANCE & INSURANCE

Repair maintenance & Insurance 2,50,000.00

Say Rs. 2.50 Lacs

RATE OF DEPRECIATION

DEPRECIATION COST ON WDV AMOUNT (Rs.)

Building 200.00 10% 20.00

Machinery 20.03 15% 3.00

Other Assets 2.00 10% 0.20

23.20 Lacs

Say Rs. 23.20 Lacs

ADMINISTRATIVE EXPENSES

Designation Nos Salary pm Amount (Rs)

General Manager 1 60,000.00 7,20,000.00

Accountant 1 35,000.00 4,20,000.00

Office Asstt 1 20,000.00 2,40,000.00

Peon Cum Chowkidar 2 12,000.00 2,88,000.00

16,68,000.00

Add 10% Other benefits 1,66,800.00

18,34,800.00

Say Rs. 18.34 Lacs

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OTHER OVERHEADS

Expenses on printing

& stationery, staff welfare,

Telegram, Telephones, travelling

& conveyance, business promotion

Etc. 13,00,000.00

Say Rs. 13.00 Lacs

IMPLEMENTATION SCHEDULE

Implementation period in months for executing this project in stage-wise is given

below:

Period

Activity (in month)

1. Selection of site/working shed 1 month

2. Formation of company 1 month
(ownership/partnership)
3. Preparation of feasibility report 1 month
Registration with commissioner of
4. Industries/DIC 1 month
Arrangement of finance (Term loan and
5. working 3 month
capital)

6. Procurement of machinery and equipment 1 month

7. Plant erection and electrification 2 weeks

8. Arrangement of raw material including packaging 1 month

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 material etc.
9. Recruitment of manpower 1 month
10. Selection of market channel 1 month
11. Miscellaneous works like power/water 2 month
connection etc.

BASIS & PRESUMPTIONS:

1. This project is based on single shift basis and 300 working days in a year.

2. Since this industry is labour-intensive, the working efficiency is considered at

75%.

3. 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.

4. Installation and electrification cost is taken @ 10% of cost of

machinery and equipment.

5. Non-refundable deposits, project report cost, trial production, security

deposits with Electricity Board are taken under pre-operative expenses.

6. Depreciation has been

considered: On plant and

machinery @ 10%

7. Interest on capital investment has been taken @ 12% per annum.

8. Minimum 25% of total investment is required as margin money.

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TECHNICAL ASPECTS

Process of Manufacture:

The manufacturing process involves the following steps:

Procurement of Knitted Fabrics

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 over-lock, 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.

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QUALITY CONTROL & STANDARD:
The quality of shirts mainly depends on quality of fabric used. Therefore, care
must be taken while purchasing fabrics to ensure good colour fastness properties,
uniformity in shade etc. Generally garments are made as per customer's
specification in respect of size, design and fashion.

Sl. No. BIS No. Title

1. IS:12675 Garment Quality Guide

2. IS:4039 Readymade Garment Packaging for Export.

3. IS:10194 Garment Guide for Positioning of Labels

POWER

The total connected load required for running the unit is estimated as 50
KVA/KW only- 3 phase.

MANUFACTURING PROCESS.

The clothing are taken and cut to required design. Then they are stitched
together to form the product. The necessary buttons, zibs, hooks etc are fixed
and it is then taken to ironing and ready for sale. The embroidery works are
carried out if necessary.

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MARKETING.

The marketing of any product is the decision making factor of the existence of
the unit and on considering that the promoter has taken all the possible ways
for marketing such as direct sales and personal contacts etc. In fact the
promoter had made a wide network of marketing for the last one year and is
capable for the forthcoming years also. The marketing area is concentrated in
retail shops of small towns and there are a number of dealers through which
the product can be sold. Most care will be taken in the change of fashion and
trends as they are much affected in the field of ready-made garments.

MODE OF FINANCE

The promoter expects financial assistance from leading nationalized branch.

This unit will be financed under ESS scheme and eligible for 40% subsidy of total
fixed investment .

ASSUMPTION

It is assumed that there will not be any major increase in the rate of raw
material and any major changes in prices will be compensated with
corresponding change in product.

CONCLUSION

On revealing the various aspects of the project and studying the financial &
technical features of the scheme it can easily be noted that the above project
will be a great success. The economics of the project is detailed as follows.

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STAFF & LABOUR.

The unit will be operated in one shift. The staff and labors needed for the unit
will be selected from locally. The details of staff & labors are enlisted in the
economics of the project.

OTHER EXPENSES.

The probable other experiences are considered in the economics of the project.
They include rent, electricity charges, transportation, communication,
travelling, maintenance, postage & stationery etc.

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