MAKING COTTON TSHIRTS
Introduction
This business idea is for production and marketing of cotton t-shirts. Cotton
t-shirts are particularly for sports and casual wear. A good sweat absorbent
wear, these garments are soft, tough and wrinkle free.
The revenue is estimated at US$700 per year, and the project cost is estimated
at US$229,424 per year. The production capacity per day is 450 t-shirts per
day.
Production Process
As per the desired sizes and designs, the knitted fabric is cut into pieces and
labeled as per measurement of the latest designs for the market. Then, the
required button stitching is added to the semi-finished fabrics. These products
undergo strict quality control measures as knitted shirts and finished garments
that are ready for packing and marketing.
Market Analysis
The demand for T-shirts has been increasing as a casual wear especially for
sportswear. Apart from domestic demand, the shirts enjoy a lot of demand from
the export market. With the current market prospects in the Western countries,
this could yet turn out to be a very profitable project. Tri-star and Phoenix
have tried to invest in this sector.
Capital Investment Requirements in US$
|
Capital investment item |
Units |
Qty |
Unit cost |
Amount |
|
Over lock machine |
no |
1 |
750 |
750 |
|
Cutting machine |
no |
1 |
2,500 |
2,500 |
|
Sewing machine |
no |
5 |
450 |
2,250 |
|
Industrial flat iron |
no |
1 |
250 |
250 |
|
Packing materials |
no |
100 |
0.03 |
3 |
|
Cutting set |
no |
6 |
10.00 |
60 |
|
Measuring tape |
no |
2 |
2.5 |
5 |
|
Zig zag machine |
no |
1 |
600 |
600 |
|
Van |
no |
1 |
6,000 |
6,000 |
|
Total cost on machinery |
12,418 |
Production and Operating Costs
|
Cost Item |
Unit |
Unit |
Qty/ |
Prod cost/ |
Prod |
Prod |
|
mtrs |
1.5 |
450 |
675 |
17,550 |
210,600 |
|
|
Sub-total |
450 |
675 |
17,550 |
210,600 |
||
|
General costs(overheads) |
||||||
|
Utilities(water and power) |
150 |
1,800 |
||||
|
Labour |
750 |
9,000 |
||||
|
Rent |
100 |
1,200 |
||||
|
Miscellaneous costs |
50 |
600 |
||||
|
Distribution costs |
260 |
3,120 |
||||
|
Depreciation(Asset write off)Expenses) |
259 |
3,104 |
||||
|
Sub -total |
1,569 |
18,824 |
||||
|
Total Operating Costs |
19,119 |
229,424 |
Cotton knitted fabric 1 Production costs assumed are for 312
days per year; with a daily capacity
of 450 pieces of T-shirts.
2 Depreciation (fixed assets write off)
assumes 4 years life of assets written off at 25% per year for all assets.
3 Direct costs include: materials, supplies and other items that directly go
into production of the product.
Project Product Costs and Price in US$
|
Item |
Qty/day |
Qty/yr |
Unit Cost |
Prod cost/yr |
Unit Price |
Total Revenue |
|
T-shirts |
450 |
140,400 |
1.63 |
229,424 |
5.0 |
702,000 |
Profitability Analysis in US$
|
Profitability Item |
Per |
Per |
Per |
|
Revenue |
2,250 |
58,500 |
702,000 |
|
Less production and operating Costs |
735 |
19,119 |
229,424 |
|
Profit |
1,515 |
39,381 |
472,576 |