👕 Garment manufacturing business — investment, profit & project report
Plan a small-to-mid garment factory: sewing-line sizing, machinery capex, per-piece labour, fabric flow, break-even and 5-year profit. Currency-aware (₹/$/€/£/¥ — pick from the header dropdown). Includes downloadable project report in Word & PDF for loan applications.
📸Gallery
📋Eligibility — by region
🇮🇳India
- GST + MSME Udyam registration. Apparel Export Promotion Council (AEPC) membership for export units (IEC mandatory).
- ISI / BIS certification optional for branded children's wear. Labour Welfare Fund + ESIC + EPF mandatory above 10 workers.
- Factory licence (Factories Act 1948) if >10 workers with power, or >20 without.
🇺🇸USA
- FTC Care Label Rule + CPSIA (Consumer Product Safety) for children's apparel + USDA Cotton Standards.
- EPA / state wastewater permit if dyeing on-site. State workers-comp + OSHA.
🇬🇧UK
- OPSS Textile Labelling Regulations + REACH for dyes & finishes.
- Modern Slavery Act 2015 statement if turnover > £36M (best practice for all sizes).
🇪🇺EU
- EU Textile Regulation 1007/2011 + REACH compliance.
- Country manufacturing licence (e.g. France SIRET, Germany Gewerbeanmeldung).
🌏Australia / Canada
- AU: Textile Labelling Act + ACCC Country of Origin.
- CA: CBSA import-export + Textile Labelling Act + Competition Bureau.
🏗️Setup requirements (capex breakdown)
Edit any value to match your local prices — totals update live and flow into the calculator below.
| Item | Specification | Cost (₹) |
|---|---|---|
| Sewing line | 15 single-needle + 4 overlock + 2 flat-lock + 1 buttonhole | |
| Cutting + finishing | Cutting table + auto-cutter + ironing | |
| Fabric initial stock | 1,500 m cotton + poly-cotton | |
| Shed + electrical | Boundary + 3-phase wiring | |
| QC + packaging | Quality station + label printing | |
| Working capital | 2 months operating buffer | |
| Total capex | ₹20,30,000 | |
| Year | Revenue | Cost | Profit | Cumulative |
|---|
⚠️Risks & mitigation
- Cotton + dye-price volatility: Lock 60-day raw-material contracts. Track MCX cotton futures. Use poly-cotton blends when cotton spikes.
- Export-buyer payment delays: Letter of Credit (LC) for new buyers; ECGC credit-insurance cover; never > 60-day open credit on first order.
- Labour shortages in clusters: Build worker hostel + provide ESIC / EPF. Tirupur / Ludhiana migrant retention > 70% with welfare benefits.
- Fast-fashion margin squeeze: Compete on lead-time (4-week vs Chinese 8-week) not just price. Move to value-added (printed / embroidered) SKUs.
💰Funding & support programs
🇮🇳India
- PMEGP: 15–35% margin-money grant for new garment micro-units.
- MUDRA Tarun: Up to ₹10L collateral-free working-capital loan.
- Stand-Up India: ₹10L–₹1Cr for SC/ST/women.
- SIDBI: Term loans for textile clusters; co-finance with banks.
- ATUFS (Amended Tech Upgradation Funds Scheme — Ministry of Textiles): 10–15% capital subsidy on modern sewing machines; TUFS legacy commitments still serviced.
🇺🇸USA
- SBA 7(a): Up to $5M for equipment + working capital.
- State textile-corridor grants: NC, GA, SC offer 10–25% capex grants for new apparel plants.
🇬🇧UK
- Innovate UK — Apparel: R&D grants for sustainable fabric + automation.
- Start Up Loans: £500–£25k for new founders.
🇪🇺EU
- EU Cohesion + ERDF: Capex grants for regional textile clusters.
- Country examples: Portugal CITEVE, Italy MISE textile grants, Romania POR.
🌏Australia / Canada
- AU: AusIndustry Manufacturing Modernisation grant.
- CA: Federal Apparel Industry Programme + provincial export grants.
📄Generate project report (Word + PDF)
Fill in your details — defaults are pre-populated. Click Print as PDF for a browser-printable PDF or Download Word for an editable .docx file usable in bank loan applications.
❓FAQ
How many machines for 300 pieces / day?
Roughly 22 machines (15 single-needle, 4 overlock, 2 flat-lock, 1 buttonhole) with 25–30 operators on a single-shift basis produce 250–350 pieces / day depending on SAM (Standard Allowed Minutes per garment).
What's the difference between job-work and own-label?
Job-work (CMT — Cut/Make/Trim) margins are 8–12% but volumes are guaranteed by the buyer. Own-label margins are 25–40% but you carry inventory + marketing risk. Most clusters start with job-work then layer own-label.
How does ATUFS subsidy work?
10% capital subsidy on eligible textile machinery (subject to caps). The Ministry of Textiles disburses post-installation via PFI bankers — apply pre-commissioning. TUFS legacy claims are still being honoured.
Is export essential?
No — domestic wholesale (mandi / hypermarket private-label) is a robust market. Export adds 30–40% to top-line but requires AEPC + IEC + LC management. Many Tirupur units run 60% domestic / 40% export.
How many workers do I need?
Single-shift 22-machine unit: 25 operators + 4 helpers + 1 supervisor + 2 cutting / packing + 1 QC = ~33 people. Two-shift doubles output with ~55 workers total (some shared roles).