Do you want to start a small-scale hosiery company? Find here a detailed hosiery manufacturing and distribution business project sample profile for your ready reference.
Hosiery sector is one of the key components of the Indian clothing industry. The total hosiery market is highly fragmented due to the presence of several brands and non-brand companies. Some of the most popular hosiery brands are Puma, Nike, Adidas, Reebok, and Bata. Also, you can find plenty of regional small hosiery companies here.
Generally, socks account for the maximum volume of the total hosiery market in India. Typically, the hosiery caters to a wide range of items that all come in the knitted fabric. Some of the most popular hosiery products are vests, briefs, nights shirts, pajamas, bathrobes, dressing gowns, panty, leggings, jeggings, short pant, Capri, socks etc.
Related: Top Clothing Brands in India
Initiating a hosiery manufacturing business is quite an easy business in the textile industry. And certainly, if you want to start with a small investment, you must start with one or two items. Also, you can apply for financial help from the banks or other financial institutions.
8 Steps Guide for Starting Hosiery Manufacturing & Distribution Business
Step 1: Selecting the Right Product
This is the first and most important step in this business. There are plenty of products that come under the hosiery segment. However, you must select the product according to your target audience. So, you must analyze the local market first. Check the products that people use on the regular basis.
Also, check the products of the regional brands who are already in the market. Analyze their price chart including the distributor’s price and retail price. These simple basic steps will help you in selecting your products. If you concentrate either on ladies items or gents items, try to select some unisex products also like track pants.
Step 2: Hosiery Manufacturing Project Report Preparation
Depending on the products that you want to produce, you must prepare a customized project report. Apart from the technical aspect, the financial aspect is most important in the hosiery business. You will need to invest more in working capital than the fixed cost.
In the project report, some of the basic presumptions are whether you have your own premise or you want to have that on rent. Here in this sample profile, we mention the costs of machinery, equipment, raw material approximately. And it is presumed that these rates are likely to vary from supplier to supplier and place to place.
Step 3: Financial Aspect for Hosiery Manufacturing
In the hosiery business, it is better to apply for the working capital loan from the banks. Basically, a cash credit or overdraft facility is the best option. However, you can also apply for the entire project finance. And in that case, you will need to ensure the collateral security deposit that the bank asks for. Here we have a provided a sample cost calculation and financial analysis.
Land & building with factory shade total = Rs 8,32,500
Machinery & equipment = Rs 10,12,000
Electrification & other pre-operative expenses = Rs 11,49,000
Working Capital Cost
Staff & labor wages = Rs 3,60,720
Raw materials = Rs 5,77,580
Utilities = Rs 12,000
Other contingent expenses = Rs 19167
Total Capital Investment (Rs.)
Land and building = 8,32,500
Machinery and equipment = 11,49,000
Working capital for 3 months = 29,08,401
Total = 48,89,901
Step 4: Selecting the Location
After getting the financials, you will need to select a location for the operation. Generally, the requirement of space varies depending on the business size. The unit doesn’t need much height. However, proper ventilation is required. You must determine specific spaces for raw material storage, manufacturing operation, finished goods storage and official work.
Also, space must have electrification and water supply for normal use. As the hosiery industry is labor intensive, you must pay attention to the employee welfare. Provide proper toilet facility and pantry for the employees.
Step 5: Procuring Machinery
Generally, the machinery requirement varies depending on the specific raw materials you use and what product you want to produce. As an example, if you procure printed clothes, then you don’t need to have the dying arrangements. Here, we have provided some basic machinery requirement list.
- Cutting machine (Power Operated)
- Overlock machine (3 thread) with motor and stand (1/2 HP)
- Folding machine with stand and motor (1/2HP motor)
- Rib Cutting machine with stand and motor (1/2 HP motor)
- Sewing machine with a motor stand (1/2 HP)
- Scissors, measuring instruments, checking table and miscellaneous items
- Garment washing machine
- Dryer Tumbler
- Washing room trolleys
- Steam press portable
- Packing machinery
Step 6: Procuring the Raw Materials
Depending on the specific products you want to produce, you need raw materials. Some of the basic items are
- Dyed/bleached knitted cotton cloth in different count
- Top elastic
- leg elastic
- Zips, buttons
- Different sewing threads
- Labels and polythene bags for individual packing
- Cartoon box for bulk packaging
- Detergent for washing and other miscellaneous items.
Step 7: Hosiery Manufacturing Process
The manufacturing process involves the following steps :
First of all, procure the dyed/bleached cotton knitted fabrics from the open market. Inspect the fabric by laying the fabric on the inspection table against light before cutting so that you can eliminate unevenness in color/shades or any other fault if any visible in the fabric.
Place the inspected fabric on the cutting table in layers. And then, demark the different parts of the respective garments by a chalk as per different sizes. Cutting of fabric layer is carried out by the fabric cutting machine in order to have accurate dimensions.
Then, stitch the whole garment by the skilled workers with the help of overlock, sewing machines etc.
Garments obtained from the sewing section will normally have some dirt/stains. You can eliminate those by treating them with mild soap solution in garment washing machine. Remove the excess water from the garments by charging in hydro-extractor and dry in garments drying tumbler.
Do the final checking by placing individual pieces on the checking table so that any fault and protruding thread in the piece may be removed. Then press the individual pieces to remove the wrinkle marks in the piece. Finally, pack in the paperboard boxes specifically available for the purpose.
Step 8: Hosiery Distribution
In our country, wholesale distribution is one of the most preferred and proven way of selling the materials for the manufacturers. And for that, you must have a brand name for the product. Apply for the trademark registration for that name.
Prepare a distributor price list and a retail price list. Whenever you enter the market, retailers may show interest in your products. Also, consider some mass advertising and product promotion activity. These will help the retailers to sell your products. In India, electronic media advertising plays the significant role. Also, you can consider billboard advertising to promote the products of the hosiery manufacturing business.
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Editorial Staff at NextWhatBusiness is a team of Business Consultants having years of experience in small and medium scale businesses.