§1What this business is
Wide-width cotton or blended fabric is laid in layers, cut with a motorised blade and stitched on an assembly line of sewing machines into bed sheets and pillow covers, some with embroidery. Hotels and hospitals mostly buy white sets.
Capacity: 100 pieces a day; 30,000 pieces a year on one 8-hour shift. The report plans 50% use in year 1.
§2Is it right for you?
Who it is for
A garment or textile trader with links to hotels, hospitals or retail chains.
Who it is not for
Someone who cannot manage a large stitching team.
Advantages
- Every home, hotel and hospital needs bed linen
- Fabric is easy to buy in grey, dyed or printed form
- Same machines can make bags and garments
- No special government approval needed (report)
Drawbacks
- Thin margin in year 1
- Big labour bill (20 people)
- Competition from Panipat, Solapur and other clusters
- Buyers want credit
Skills you need
- Pattern cutting to save fabric
- Line supervision
- Quality checking
- Institutional sales
Why difficulty 2/5: Simple stitching work; profit depends on volume and steady buyers.
§3Market
Who buys
- Households
- Hotels and hospitals
- Railways, hostels and other institutions
How it sells
- Retail shops and wholesalers
- Institutional supply and tenders
- Online marketplaces
Good to know
- The report says hotels and hospitals usually use white bed sheets and pillow covers.
§4Raw material & machinery
| Item | Qty | Cost |
|---|---|---|
| Single-needle machine | 8 | ₹4.80 lakh |
| Double-needle machine | 4 | ₹3.00 lakh |
| Overlock machine | 3 | ₹1.20 lakh |
| Cutting table and machine | 1 | ₹1.00 lakh |
| Embroidery machine | 2 | ₹1.00 lakh |
From: PMEGP sample project report — Bed linen (prepared by Udyami/Samadhan)
- Cotton or blended fabric, wide width (120")45,000 running metres a year at full capacity, ₹120 a metre in the report
- Plastic packing bagsfor packing as per customer needs
From: PMEGP sample project report — Bed linen (prepared by Udyami/Samadhan)
§5Licences & registration
- Udyam
- GST
- Shop and establishment registration
- Professional tax registration
- Factories Act, PF and ESI registration depending on staff size
§6Schemes & subsidies
- PMEGPCentralActive15–35% subsidy
- MudraCentralActiveLoan up to ₹20 lakh, no collateral
- CGTMSECentralActiveNo collateral, up to ₹10 crore
The report is a PMEGP sample; MUDRA and CGTMSE can cover the loan.
§7Money
How the investment is worked out: Samadhan sample report: building/shed 2,000 sq ft ₹4.00 L, machinery ₹11.00 L, furniture ₹0.80 L, working capital ₹6.67 L = ₹22.47 L.
Working capital: Working capital ₹6.67 L; bank limit ₹6.00 L. Buyers get credit, so debtors are the largest part.
Year not printed on the report — check current machinery prices.
§8Export potential
Confirm the HS code in the DGFT ITC(HS) lookup before you export
Export council / board: TEXPROCIL (Cotton Textiles Export Promotion Council)
- Cotton made-ups are a large Indian export; buyers expect certified fabric and consistent sizing.
§9Risks — where people fail
- Fabric price rise
- Slow payment from institutions
- Labour turnover
- Price competition from clusters
§1030 / 60 / 90-day plan
A general plan that applies to any business. A plan for this business will be added after research.
- Days 1–30: Visit a working bed linen stitching unit (bed sheets and pillow covers) unit, ask 10 buyers about price and quantity, and get quotations from 3 suppliers.
- Days 31–60: Udyam and the licences you need (Udyam, GST), a project report (DPR), and the scheme or loan file.
- Days 61–90: Space and machines, trial production, and first deliveries to 10 customers.
§11Who to connect with
Associations, clusters and training institutes — the directory is being built. Connect
§12Watch
There is no episode on this business yet. Shows are coming soon on the Podcast page.
Want to start Bed Linen Stitching Unit (Bed Sheets and Pillow Covers)?
DPR, loan file or registration — ask us on WhatsApp.
¶Sources
Data review: 6 October 2026. Spotted a mistake? Report it. For information only — not legal or financial advice.