§1What this business is
The unit buys poplin, terrycot, rubia and fancy fabric in many colours, checks it for weaving faults and cuts it with a power cutting machine. Tailors on single-needle and overlock machines make the parts and join them, adding frills, lace, tape and labels. The finished garments are washed in mild detergent, spun in a hydro-extractor, tumble-dried, checked, steam-pressed and packed. The profile says these garments are made in bright colours and designs for children and are bought from showrooms rather than stitched by tailors.
Capacity: 1,80,000 pieces a year — 1,08,000 shirts/tops and 72,000 skirts/dresses — valued at ₹2,23,20,000 (₹120 a top, ₹130 a skirt). 300 working days a year at 75% of installed capacity.
§2Is it right for you?
Who it is for
Someone who has run a tailoring line or garment unit and already has orders from garment wholesalers or showrooms.
Who it is not for
A first-time founder who cannot manage a large workforce or wait for payment from shops.
Advantages
- The profile says parents in towns now buy girls' garments ready-made from showrooms
- All fabric and trims are bought locally
- The unit has its own washing and drying line, so garments leave clean and finished
- Gives work to many tailors — 77 skilled workers in the profile
Drawbacks
- Needs 60 stitching machines and 94 people from the first day
- Working capital (₹49,09,500) is far more than the fixed capital (₹10,60,000)
- Net profit ratio in the profile is only 7.83%
- Break-even is high at 64.20%
Skills you need
- Choosing fabric colours and designs that children like
- Cutting and line planning for 60 machines
- Managing and paying a large tailoring workforce
- Quality checks for stains, cuts, holes and loose threads
Why difficulty 4/5: A 94-person factory with a thin margin and a large working-capital need.
§3Market
Who buys
- Readymade garment showrooms and shops
- Garment wholesalers
- Buyers who place orders to their own packing requirements
How it sells
- Supply to wholesalers and showrooms
- Order-based supply packed as the buyer asks
Good to know
- The profile says these units are found mostly in selected cities, so there is room for new units elsewhere.
- The profile prices a top at ₹120 and a skirt at ₹130 (2003 prices).
- Standards named in the profile: IS 12675 (garment quality guide), IS 4039 (packaging of children's garments for export) and IS 1094 (positioning of labels).
§4Raw material & machinery
| Item | Qty | Cost |
|---|---|---|
| Power-operated cutting machine | 1 | ₹65,000 |
| Power-operated single-needle lock-stitch (SNLS) machine | 60 | ₹2,40,000 |
| Overlock stitching machine with motor and accessories | 15 | ₹90,000 |
| Garment washing machine, 25 kg capacity | 1 | ₹1,45,000 |
| Hydro-extractor, 25 kg capacity | 1 | ₹70,000 |
| Tumbler dryer, 25 kg capacity | 1 | ₹1,40,000 |
| Portable steam press | 6 | ₹1,20,000 |
| Washing-room trolleys | 4 | ₹40,000 |
| Other miscellaneous assets | — | ₹20,000 |
From: DC-MSME project profile — Manufacture of Shirt (Top) and Skirts (2003)
- Cotton poplin or terrycot fabric in different colours and designs12,000 m a month at ₹44 per m = ₹5,28,000 (2003 prices)
- Cotton poplin, rubia or fancy fabric10,080 m a month at ₹35 per m = ₹3,52,800
- Lining cloth, collars and stripes₹1,00,000 a month
- Buttons, hooks and plastic fittings₹30,000 a month
- Sewing thread₹75,000 a month (the profile's line also mentions packing material)
- Packing materials₹1,20,000 a month
- Detergent for washing₹3,000 a month
From: DC-MSME project profile — Manufacture of Shirt (Top) and Skirts (2003)
§5Licences & registration
- Udyam registration
- GST registration
- Factory licence (the unit employs well over the Factories Act limit)
- Trade licence from the local body
- State Pollution Control Board consent — the profile asks you to contact the Board because garments are washed
- 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
Even at 2003 prices the project is ₹59,69,500, above the PMEGP ceiling of ₹50 lakh for manufacturing, and today's cost will be higher — check it before you apply anywhere. CGTMSE covers loans up to ₹10 crore without collateral.
§7Money
How the investment is worked out: The building is rented. Fixed capital ₹10,60,000 (machinery and equipment ₹9,30,000, erection and installation ₹87,000, office furniture ₹25,000, pre-operative expenses ₹18,000) + working capital for 3 months ₹49,09,500 = ₹59,69,500.
Working capital: Recurring cost is ₹16,36,500 a month: raw material ₹12,08,800, wages ₹3,88,200, utilities ₹16,500 and other expenses ₹23,000 (including rent). The profile keeps 3 months of this, ₹49,09,500, 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 girls' woven garments in the DGFT ITC-HS list before you export.
§9Risks — where people fail
- Designs and colours going out of fashion before the stock sells
- Skilled tailors leaving in the busy season
- Shops buying on credit and paying late
- Fabric price rises that cannot be passed on
§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 girls' tops and skirts (garment factory) 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 Girls' Tops and Skirts (Garment Factory)?
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.