§1What this business is
The unit does not knit or dye. It buys dyed or bleached cotton knitted fabric that has 5% to 10% Lycra (spandex) yarn, which makes the cloth stretch and fit closely. The fabric is checked against light for knitting faults and uneven colour, cut in layers on a cutting table, and stitched on overlock, flat-lock and folding machines. Each piece is checked, pressed and packed. The profile names slacks, sportswear, swimwear and other fashion wear as the products.
Capacity: 22,500 dozen cotton-Lycra knitted garments a year, valued at ₹1,13,40,000 (₹504 a dozen), on one 8-hour shift, 25 days a month at 75% efficiency.
§2Is it right for you?
Who it is for
Someone who knows hosiery stitching and has buyers among garment wholesalers or sportswear shops.
Who it is not for
Someone who cannot fund three months of fabric stock or has no way to judge knitted fabric quality.
Advantages
- No knitting or dyeing plant is needed — the fabric is bought ready
- Fixed capital is small (₹5,60,000 in the profile) because the building is rented
- The profile says the unit causes no pollution
- Stretch fabric fits well without complicated tailoring
Drawbacks
- Raw material takes ₹7,27,500 of the ₹8,12,500 monthly cost, so most of the money is locked in stock
- Working capital (₹24,37,500) is more than four times the fixed capital
- The main overlock and folding machines in the profile are imported
- Net margin in the profile is only about 10%
Skills you need
- Judging knitted fabric for faults and shade
- Pattern making and layer cutting for stretch cloth
- Running overlock and flat-lock machines
- Checking finished pieces for stains, dropped stitches and bad seams
Why difficulty 3/5: Simple cut-and-stitch work, but it needs skilled operators and a large fabric stock.
§3Market
Who buys
- Hosiery and garment wholesalers
- Sportswear and readymade garment shops
- Garment exporters and buying houses
How it sells
- Sale to wholesalers in hosiery markets
- Direct supply to retail shops
- Job work or supply to exporters
Good to know
- The profile says knitted garments sell well in India and abroad, and that the Gulf, South-East Asian and developed countries are buyers.
- The profile values the output at ₹504 a dozen (2003 prices).
§4Raw material & machinery
| Item | Qty | Cost |
|---|---|---|
| High-speed four-thread overlock machine with motor and stand (imported) | 5 | ₹2,25,000 |
| Flat folding machine with stand and table (imported) | 3 | ₹1,80,000 |
| Straight-knife cutting machine | 1 | ₹40,000 |
| Rib cutting machine with motor and stand | 1 | ₹5,000 |
| Sewing machine with motor and stand | 2 | ₹10,000 |
| Scissors, press, measuring instruments and other small items | — | ₹10,000 |
| Laboratory equipment (weighing balance, magnifying glass, microscope, testing chemicals) | — | ₹10,000 |
From: DC-MSME project profile — Cotton Lycra (Spandex) Knitted Wears (2003)
- Dyed or bleached knitted fabric (40s cotton 90%, 40 denier Lycra 10%)2,800 kg a month at ₹200 per kg = ₹5,60,000 (2003 prices)
- Elastic, zips, hooks, buttons and stickers₹1,12,500 a month
- Sewing thread₹5,000 a month
- Labels, size labels, polythene bags and mill-board boxes₹50,000 a month
From: DC-MSME project profile — Cotton Lycra (Spandex) Knitted Wears (2003)
§5Licences & registration
- Udyam registration
- GST registration
- Trade licence from the local body
- Factory licence if the number of workers crosses the Factories Act limit
- Import Export Code (IEC) if you export
Start it in your state
Pick your state: today’s cost, central + state subsidy, raw material, land and help, on one page.
§6Schemes & subsidies
At 2003 prices the project is ₹29,98,000, under the PMEGP ceiling of ₹50 lakh for manufacturing — but work out today's cost and check it against that ceiling. CGTMSE can back a loan without collateral.
§7Money
How the investment is worked out: The building is rented. Fixed capital ₹5,60,000 (machinery and equipment ₹4,80,000, erection and electrification ₹48,000, office equipment ₹25,000, pre-operative expenses ₹7,000) + working capital for 3 months ₹24,37,500 = ₹29,97,500, which the profile rounds to ₹29,98,000.
Working capital: Recurring cost is ₹8,12,500 a month: raw material ₹7,27,500, staff ₹60,000, utilities ₹5,000 and other expenses ₹20,000 (including rent). The profile keeps 3 months of this, ₹24,37,500, as working capital.
Prices from 2003 — machinery, rent and wage costs will be much higher now.
§8Export potential
Export council / board: AEPC
- The profile prints no HS code. Look up the correct code for knitted garments in the DGFT ITC-HS list before you export.
§9Risks — where people fail
- Faulty or unevenly dyed fabric spoiling a whole lot
- Fashion and colour changes leaving unsold stock
- Slow payment from wholesalers
- Breakdown of imported machines with spares hard to find
§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 cotton-lycra stretch knitwear (slacks and sportswear) unit, ask 10 buyers about price and quantity, and get quotations from 3 suppliers.
- Days 31–60: Udyam and the licences you need (Udyam registration, GST registration), 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
§12Watch
There is no episode on this business yet. Shows are coming soon on the Podcast page.
Want to start Cotton-Lycra Stretch Knitwear (Slacks and Sportswear)?
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.