§1What this business is
Fabric is inspected, cut on a power cutting machine, stitched on lock-stitch and overlock machines, washed, dried, checked, steam-pressed and packed. The MSME-DI Kanpur profile plans a large unit with 55 skilled tailors, washing and pressing in-house.
Capacity: 90,000 shirts and 90,000 trousers a year (sales table); single shift, 300 days.
§2Is it right for you?
Who it is for
Someone with garment-trade experience and buyers (retail chains, wholesalers or exporters).
Who it is not for
A first-timer — the profile's unit is a ₹1.3 crore operation; start much smaller.
Advantages
- Clothing is a basic need with year-round demand
- Labour-intensive — creates many jobs
- Machines are standard and easy to buy
- Can scale from a few machines
Drawbacks
- Very large working capital at this size
- Fashion changes quickly; unsold stock loses value
- Tight competition from big brands and Bangladesh-made garments
- Needs many skilled tailors
Skills you need
- Pattern cutting and sizing
- Production planning on the line
- Fabric buying and quality checks
- Selling to retailers and wholesalers
Why difficulty 4/5: Large workforce, large stock and fashion risk.
§3Market
Who buys
- Garment retailers in towns and cities
- Garment wholesalers
- Exporters and buying houses
How it sells
- Wholesale markets
- Direct supply to retail shops and chains
- Export orders
Good to know
- The profile notes that tailoring charges and delays push buyers to readymade garments, in rural and semi-urban areas too.
- It warns that the products are fashion-driven, so designs must keep changing.
- Shirt sale price ₹210 and trouser ₹320 a piece in the 2011 profile.
§4Raw material & machinery
| Item | Qty | Cost |
|---|---|---|
| Single-needle lock-stitch machine with motor | 50 | ₹11,82,500 (₹23,650 each) |
| 6-inch power cloth cutting machine | 1 | ₹50,000 |
| 2-needle overlock safety-stitch machine with trimmer | 1 | ₹50,000 |
| Double-needle lock-stitch machine | 2 | ₹1,50,000 (₹75,000 each) |
| Button-hole machine | 1 | ₹1,45,000 |
| Button stitching machine | 1 | ₹75,000 |
| Hot fusing press | 1 | ₹65,000 |
| Garment washing machine, 25 kg | 1 | ₹1,45,000 |
| Hydro extractor, 25 kg | 1 | ₹70,000 |
| Tumbler dryer, 25 kg | 1 | ₹1,40,000 |
| Flat-bed steam iron press with vacuum table | 4 | ₹3,00,000 (₹75,000 each) |
| Zig-zag embroidery machine | 1 | ₹45,000 |
| Generator set, 30 kVA | 1 | ₹1,00,000 |
| Wash-room trolleys | 4 | ₹40,000 |
From: PMEGP sample project report — Gents Shirts and Trousers (prepared by MSME-DI Kanpur, May 2011) (2011)
- Cotton fabric for shirts16,500 m a month at ₹80 per m
- Blended fabric for trousers10,000 m a month at ₹150 per m
- Trims and embellishments7,500 a month at ₹15 each
- Sewing thread15,000 m a month, ₹1,23,750
- Packing material15,000 a month at ₹3 each
From: PMEGP sample project report — Gents Shirts and Trousers (prepared by MSME-DI Kanpur, May 2011) (2011)
Suppliers in Building Business Bazaar
Apparel & Leather Techniques Pvt. Ltd · Bengaluru →B. B. Corporation · Kanpur →Industrial Machines Pvt. Ltd · Delhi →Industrial Sewing Systems · Chennai →Mehala Machine India Ltd · Kanpur →Mehala Machines India Limited · Delhi →Paras Special Machine Co · Ludhiana →Star International Pvt. Ltd · Kanpur →Vardhman Threads, Mahavir Spinning Mills Ltd. · Ludhiana →Vijay Sewing Pvt. Ltd · Kolkata →Apparel and Leather Techniques Pvt. Ltd. · Bengaluru →Powerloom Cloth · Surat →
§5Licences & registration
- Udyam registration
- GST registration
- Factory licence (with this many workers)
- EPF and ESI registration
- Shops/trade licence from the local body
§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
This size exceeds PMEGP limits; a smaller unit fits PMEGP, MUDRA or CGTMSE; Stand-Up India for SC/ST or women owners.
§7Money
How the investment is worked out: MSME-DI Kanpur profile (on the PMEGP site): machinery ₹25.58 L + erection ₹2.18 L + office furniture ₹0.40 L + pre-operative ₹0.30 L = fixed capital ₹28.45 L; working capital for 3 months ₹1,02,66,250; total ₹1,31,11,750. The PMEGP list shows ₹7.45 L for this title, but the document itself prints ₹1.31 crore.
Working capital: Monthly running cost ₹34.22 L (fabric ₹30.16 L); the profile keeps 3 months' worth (₹1.03 crore) as working capital.
Prices from May 2011 — machinery, wages and fabric cost much more now.
§8Export potential
Confirm the HS code in the DGFT ITC(HS) lookup before you export
Export council / board: AEPC (Apparel Export Promotion Council)
- HS codes are from the WCO HS 2022 list; confirm the 8-digit ITC(HS) line with DGFT or your customs broker.
- You need an Import Export Code (IEC) from DGFT before the first shipment.
§9Risks — where people fail
- Unsold stock when fashion changes
- Fabric price rises
- Worker turnover
- Retailers delaying payment
§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 gents shirts and trousers 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
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 Gents Shirts and Trousers?
DPR, loan file or registration — ask us on WhatsApp.
¶Sources
- PMEGP sample project report — Gents Shirts and Trousers (prepared by MSME-DI Kanpur, May 2011) (2011)
Data review: 6 October 2026. Spotted a mistake? Report it. For information only — not legal or financial advice.