Business plan: Textile industry

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INTRODUCTION

As the textile students, we are going to start our own business, in another two years’ time using our technical knowledge. Because we have good technical knowledge for textile and apparel field, we select ladies jeans as our production. All garments can be categorized in to three types as formals, casuals, designers. Normally formal wears are worn at officers. Casual wears are normally with some features such as oversized pockets, pockets with flaps, larger front buttons, and loose fit etc. designer garments at parties, joyous gathering and etc. From these, denim trouser for ladies belongs to semi-formal wear. After involving the denim fabric, it can be made this garment by cutting, stitching or making up.

That production belongs to Apparel industry. Apparel industry is one of the big industries in Sri Lanka. It plays a major key role in advancing the economy of Sri Lanka. This industry has been grown rapidly within last four decades. Today apparel industry earns 40% of foreign export from the total exports and 52% of foreign export from the industrial product exports. In every year university undergraduates expose to this industry. So they enter to create new customized ranges of production with innovative techniques. So day by day this industry is extended can’t predict about any falling down. So we can trust our industry which belong our production. Also from this industry, we can easily find the raw materials for our production such as fabric, accessories, zips, buttons, sewing thread, packing material and etc.

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With the development of the country, we can see lot of women wear the jeans. It can be referred that from both of women, every women wear the jeans. So we can achieve best demand for our production. Also a jean is used daily so much so. As well as the denim fabric which is used for this production can be considered as comfortable one. These things cause to extend the demand of our production. Also customers need quality and fashionable thing. By giving good finishing for our production, we can achieve it. According to that we are going to get fade effect by using washing technology.

Because the textile industry is the vast industry, we have to compete with more competitors. There are so many brands for trousers in Sri Lanka such as ODEL, NOLIMIT, TESCO, GV, Canterbury, Pink Tiger, Pepperts and etc. So we have to face to our competitors to win our task. But we have belief that we can achieve good demand for our brand within few months. Apart from these mentioned brands there are lot of brands which is produced by MAS, Brandix and etc. But these brands do not affect for our productions because they produce their production for exporting specially to the US market.

We are going to apply several pricing strategies to make our business success with the demand of our consumers and long term profit. We have to incur our manufacturing cost, distribution cost, overhead cost and etc as well as we have to compete with our competitors. So when setting price, it should be based on both cost and value.We are going to use price adjustment strategies because we have decided

to give discounts to the customers as rewards for promoting products in New Year seasons. Under Psychological pricing strategywe price our product as ……. Then customer will feel that it is not that much of high price. Then they will tend to buy this product and we can win by fighting with other brands. So our production will give best profit for our effort.

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What are the machines / raw materials we want?

Process of Manufacture

It should be consider about the “what are the machines / raw materials we want” before manufacture the denim jeans. There are several processes that product the garment. It can be identified given bellow.

Manufacture of denim garments is like any other garment except that these garments require special care and finishes. The basic outline of the operations for denim garments in general is given below.

  • Cloth cutting
  • Sewing by sewing machine.
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It should be want Sewing machine, fabric, looper Thread, Needle thread, Scissors, attachments, button and zips to sew the denim jeans.

Sewing machine

There are several type of sewing machine used for sew the jeans. They are;

  • Lock stitch
  • Single needle
  • Double needle
  • Over lock
  • Button hole
  • Bar taking

Lock stich machine

There are two types of lock stich machine are available to sew jeans. They are single needle and double needle. It should have powerful motors that can drive the needle through several thick layers of the heavy fabric. The choosing of a high-torque motor helps to increase the penetrating force of the needle. When sewing multi-layered parts of a heavy-weight material, the needle certifies excellent penetrating force even as the result of motor’s power.

Single needle and Double needle sewing machine

Lockstitch machines, the maximum needle thread size that can be sewn is usually determined by according to the capacity of the hook or bobbin in the machine, and the size of the needle being used. There must be adjusted enough clearance between the bobbin case and the hook base to allow the thread to move freely around the hook during the stitch formation..

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Over lock

C:\Users\DELLL\Desktop\olff-comparison.pngOver lock machine is used ensure the edge of seam and joint two or more edge together.

Button hole Sewing Machine

Buttonhole Sewing Machines can sew that stitch and purl stitch with adjustable button- hole width, length and stitch amount that use to sew with thread trimmer and fabric cutter.

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Bar Tacking Machine

This machine provides seam with neat, harmonious for heavy-weight materials. Bar taking industrial sewing machine for denim loop fix tidily and other purposes is a safety belt.

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Attachment

Not only sewing machine, it should be several types of attachments and folders that a device which are built into machine added to them afterwards, attached alongside or made use of in whatever ways. It is wanted to sew jean to easy to sewing. After the attachment is used, it can be got several advantages.

  • Productivity can be increased by spreading up operations by facilitating easy handling
  • Quality standards are maintained or improve
  • Consistency of quality is ensured regardless of skill of the operator
  • Training time could be reduce

Bellow folders are used to sew jeans.

Needle

C:\Users\DELLL\Desktop\sewing-room-078.jpgNeedle type of machine should be Sharp point, larger than most other types of machine sewing needles. These needles have a thick, strong shaft and a very sharp point. They are used for stitching tightly heavy woven fabrics like denim. They are also ideal for stitching through multiple fabric layers without breaking.

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Thread Size

There are two types of threads use to sew jean. They are needle thread and looper thread. Needle thread must be thick, shiny and light colour. Thread size can be varying with variety of denim fabric weights. Thread should be Tex 40 to a Tex 120.

Fabric

C:\Users\DELLL\Desktop\304006.jpgWhen select the fabric, it should be careful. Because fabric is the main factors when sew the jeans. Durability of jean depends on to the fabric type. Quality of fabric should be optimum. Unless value of the product decrease. There are many colors available, but we use black colour twill fabric for this jean. 81% cotton, 18% polyester, 1% spandex fabric is used for this jean. And also we want light weight polyester fabric piece for pockets.

According to size of jean measurement,

We need 20.84 Yds. Black color Twill fabric

And

4.06 Yds. Pocketing fabric.

Availability Of Machines, Raw Materials And Suppliers

When we consider about the machines needed for manufacturing our product there are different from each other. So first we have to consider the cost per machine and life time of them as well. After doing a research about machine and raw material suppliers we have to discuss among our director board of this company, whether what machines and raw materials can satisfy our main requirements without reaching a high cost for them. Because we are not targeting to export our product, only for the local market. So these are the suppliers for us with contributing our product in several ways.

Machines

We need to buy some machines for our manufacturing process. Our plan is all the machines get from SUNNY SEWING MACHINES, Quaker Street, Dallas. Then we will able to have discount from the supplier.

Double Needle Lockstitch Industrial Sewing Machine (LH-3500)

All models of this series are provided with a semi-dry head to eliminate staining with oil from the frame. It has more functions as widely adjustable thread tensions, can sew materials of many weights, from light to heavy. The increased width and height between the arm and needle help reduce operator fatigue. A new and more reliable thread-trimming mechanism is also adopted.

$ 2,100.00

Semi-dry-head - 2-needle - Lockstitch Machine (LH-3528A-7)

This is the cutting-edge model 2-needle sewing machine which comes with having more enhanced mechanisms such as the direct-drive mechanism, semi-dry head, new thread tension control mechanism and improved oiling system. All models of this have a semi-dry head to eliminate staining with oil from the frame.

$ 1,900.00

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Juki LBH-783 Lockstitch Buttonhole Sewing Machine - USED Single Needle Lockstitch Buttonhole Industrial Sewing Machine. Smooth operation contributes to high-quality finished buttonholes and a higher degree of efficiency. $1,795.00

Jack JK-768BDI-4 Two Needle Four Thread Over lock Serger High Speed Direct-Drive Overlock Sewing Machine - Complete and Fully Assembled $1,195.00

JUKI LK-1850 Bar Tacker | 28 Stich Bar Tack Sewing MachineJUKI LK-1900 Electronic Bar Tacker | JUKI Bar Tack Machine JUKI Electronic Bar Tacker in LIKE NEW Condition, complete, 40mm x 30mm Field, 110 Volt Power $ 1,195.00

Fabrics

Our plan is to bring all the fabrics from union TEXTILES OF CHINA (UDCTEX) LTD. It is a Chinese factory which has a good market all around the world. Fabric is named as Cotton Polyester Viscose SpandexDenimFabric.

Unit Price:US $ 1.3/ Meter

Threads

We are planning to get all the sewing threads, zips, buttons, trims and other required accessories from COATS Private Limited Company. They have a good demand for all the accessories on modern market and there are some buyers of them whose are connected with them very frequently. So there are several places need to sew when making this garment, but not in a same way. Sometimes we have to use thick threads. Color of the threads may vary by fabric color. But they have a unique price for the thread cone whether it is a colored or white.

Each cone has 50 yards, that means all the cones that we ordered are same size and price.

unit price : Sewing thread cone price is $ 0.99

Zips

There are few colors that we required, but the price of a zip is not dependent on the color. Each trouser needs one zip.

unit price : $ 0.10

Buttons

silver colored button for waist, which has a diameter of 1.75 cm. Each trouser needs one button.

unit price : $ 0.12

Factors of production

Factors of production are,

  • Labour
  • Capital
  • Land
  • Entrepreneurship

These are used by society to produce consumer satisfying goods and services. Factors of production are also termed resources or scarce resources.

All four factors of production categories are important to the production of goods used in the wants-and-needs-satisfying process. Landprovides the basic raw materials that become the goods. Labourdoes the hands-on work. Capitalis the tools that make the job easier. Andentrepreneurshiporganizes the entire process.

Labour

Labour is the mental and physical efforts of humans used for the production of goods and services. Labour includes both the physical effort of factory workers and farmhands often associated with labour, as well as the mental effort of executives and supervisors.

E.g. stacking shelves in a supermarket or calculating the final accounts of a company.

We are expecting to recruit five employee including three machine operators and two helpers to fulfil the expected demand. We are planned to pay Rs. 10,000 per machine operator and Rs. 7,000 per helper. Their working time per day will be 9.00 am to 6.00 pm including one hour lunch break.

We are expecting to recruit employee who live nearby to working place and can reach the working place within 30min. To find that kind of employee, we planned to do a poster campaign and then interview and check the sills of the person who respond to the poster.

Employee who will be selected may have a one day training about their duty.

Capital

Capital is the manufactured, artificial, or synthetic goods used in the production of other goods, including machinery, equipment, tools, buildings, and vehicles. Capital is the produced factor of production.

None of our members can invest on the business as they do not have that much of money. So we planned to obtain a bank loan of Rs. 500,000 and buy three sewing machines, fabrics, sewing threads and other accessories & other tools. Also we have to pay Rs. 50,000 for the building owner as key money.

Land

Land is the naturally occurring materials of the planet that are used for the production of goods and services, including the land itself; the minerals and nutrients in the ground; the water, wildlife, and vegetation on the surface; and the air above. The natural resources and materials of the land become the goods produced.

E.g. the land that a building is constructed on, oil that is extracted from under the sea, under the land, forests and fish reserves.

We are planned to rent a building near the town as none of our members do not have a proper place to start the business. One of our member knows a person who owns a building near the town and we meet him and ask for the building.

Entrepreneurship

Entrepreneurship is the special sort of human effort that takes on therisk of bringing labour, capital, and land together to produce goods. Entrepreneurship is the factor that organizes the other three. Without someone to organize production, the other three factors do NOT produce. A key component of entrepreneurship is risk. This resource takes the risk of organizing production BEFORE anything is produced and with no guarantee that production will be successful.

Costing

Discription

Cost (Rs.)

raw material

fabric

sewing thread

zippers

buttons

Machine cost

82500

land and building

Key money

Rental (per month)

50000

50000

labour cost (per month)

Machine operators

Helpers

10000 x 3 = 30000

7000 x 2 = 14000

electric bill, water bill & other expenses (per month)

30000

Profit Margin: margin, reasons & etc.: 600