Denim Washing Unit

§1What this business is

A job-work unit that takes stitched denim garments from garment makers and washes them in industrial machines — stone wash, enzyme wash, bleach, tie-and-dye and other effects — then hydro-extracts, dries and packs them. Raw denim is stiff; almost no denim garment is sold without washing.

Capacity: Sales ₹226.80 L a year at full capacity (₹136.08 L in year 1 at 60%); washing charge ₹50 to ₹125 a garment.

§2Is it right for you?

Skills you need

• Wash recipes and chemical handling
• Boiler and machine operation
• Effluent treatment
• Getting job work from garment makers

Why difficulty 3/5: Chemical process and strict effluent rules.

§3Market

§4Raw material & machinery

From: SIDBI Stand-Up Mitra project profile — Denim Washing (2018) — private guide — confirm locally

• Caustic soda, hydrogen peroxide, enzymes, potassium permanganate, sodium and calcium hypochloritefor different wash effects
• Pumice stones, pebbles and sandfor stone wash and sand-blast effects
• Boiler fuel — oil, gas or coal

From: SIDBI Stand-Up Mitra project profile — Denim Washing (2018) — private guide — confirm locally

§5Licences & registration

1. Udyam registration
2. GST registration
3. State Pollution Control Board consent to establish and to operate (with ETP)
4. Boiler registration if the boiler falls under the Boilers Act
5. Groundwater permission where required
6. Factory licence

We can do this registration for you

§6Schemes & subsidies

• PMEGPCentralActive15–35% subsidy
• MudraCentralActiveLoan up to ₹20 lakh, no collateral
• CGTMSECentralActiveNo collateral, up to ₹10 crore
• Stand-Up IndiaCentralClosed₹10 lakh – ₹1 crore loan

PMEGP (up to ₹50 L for manufacturing), MUDRA and CGTMSE fit; Stand-Up India for eligible founders.

§7Money

How the investment is worked out: Plant and machinery ₹24.65 L (washing machines, hydro extractors, steam dryers, small boiler, ETP, compressor, pumps, trolleys) + furniture and computers ₹5.00 L + rent deposits ₹2.50 L + working-capital margin ₹8.37 L = ₹40.52 L. Premises rented. (The itemised machinery list adds up to ₹21.65 L.)

Working capital: Working capital ₹14.45 L (chemicals and stock ₹11.94 L, receivables ₹6.56 L, overheads ₹4.31 L, less creditors ₹8.36 L); margin ₹8.37 L.

Prices from 2018 — machinery, material and salary figures will be higher now.

How to prepare a loan file

§8Export potential

A job-work service; the washed garments are exported by the garment makers, not by this unit.

§9Risks — where people fail

• Pollution board action over effluent
• Damaged garments and claims
• Dependence on a few garment buyers
• Water shortage

§1030 / 60 / 90-day plan

A general plan that applies to any business. A plan for this business will be added after research.

1. Days 1–30: Visit a working denim washing unit unit, ask 10 buyers about price and quantity, and get quotations from 3 suppliers.
2. Days 31–60: Udyam and the licences you need (Udyam registration, GST registration), a project report (DPR), and the scheme or loan file.
3. 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.

¶Sources

1. SIDBI Stand-Up Mitra project profile — Denim Washing (2018)

Data review: 6 October 2026. Spotted a mistake? Report it. For information only — not legal or financial advice.