§1What this business is

Interlock is a double-knit fabric made with two sets of needles (cylinder and dial) on interlock knitting machines of 18–30 gauge. Combed cotton yarn of 30s–50s count (or 80–160 denier filament for synthetics) is loaded from cones, threaded through tensioners and stop motions, and knitted into rolls; each roll is checked and marked with count and date. Compared with plain knit it has better sweat absorbency, weight (GSM) and strength. Buyers are undergarment, sportswear, children's and baby wear makers.

Capacity: 1,21,200 kg of interlock fabric a year, sold grey at ₹150 a kg — ₹1.818 crore.

§2Is it right for you?

Who it is for

A knitter or yarn trader with steady orders from innerwear or sportswear makers.

Who it is not for

Someone without working capital for yarn or a buyer base.

Advantages

  • The profile says few units make interlock, so innerwear makers look for it
  • Better absorbency and strength than plain knit
  • Small team and low machinery cost
  • No pollution from knitting

Drawbacks

  • Thin margin — about 5% of sales
  • Most of the money goes into yarn
  • Established centres (Kolkata, Tiruppur, Ahmedabad) set prices
  • Machine stoppages from yarn breaks cut output

Skills you need

  • Setting up interlock machines and gauges
  • Judging yarn knittability
  • Fabric inspection for faults
  • Selling to garment makers

Why difficulty 2/5: Simple machines, but thin margins and heavy yarn working capital.

§3Market

Who buys

  • Undergarment makers
  • Sportswear makers
  • Children's and baby wear makers
  • Fabric traders and exporters

How it sells

  • Direct supply of grey fabric rolls to garment units
  • Fabric traders in hosiery centres

Good to know

  • The profile says cotton interlock is made mainly in Kolkata, Tiruppur and Ahmedabad.
  • It reports a positive export trend for quality knitted fabric.

§4Raw material & machinery

ItemQtyCost
Interlock knitting machines, 18 gauge, 14 in dia, with motor4₹2,00,000
Interlock knitting machines, 18 gauge, 15 in dia, with motor4₹2,20,000
Interlock knitting machines, 20 gauge, 16 in dia, with motor2₹1,20,000
Interlock knitting machines, 20 gauge, 17 in dia, with motor2₹1,30,000
Weighing balance1₹30,000
Workshop accessories1 lot₹10,000

From: DC-MSME project profile — Interlock Knitted Fabric (2003)

  • Cotton grey yarn of various counts (combed 30s–50s)10,300 kg a month at ₹125 a kg in the profile
  • Texturised filament yarn, 80–160 denier, for synthetic interlock

From: DC-MSME project profile — Interlock Knitted Fabric (2003)

Suppliers in Building Business Bazaar

Adinath Textiles Ltd · Ludhiana →Raj Mechanical Works · Ludhiana →T.S. Mechanical Works · Ludhiana →Vardhman Spinning General · Ludhiana →

In our raw material database

Cotton yarn →

§5Licences & registration

  1. Udyam registration
  2. GST
  3. Trade licence from the local body
  4. Factory licence, EPF and ESI registration depending on workers and power

We can do this registration for you

§6Schemes & subsidies

PMEGP fits the project size; CGTMSE for loans without collateral; Stand-Up India for SC/ST or women founders.

§7Money

How the investment is worked out: DC-MSME profile (SISI New Delhi, May 2003): fixed capital ₹8.07 L (12 interlock knitting machines ₹6.70 L, accessories and balance ₹0.40 L, erection, furniture and pre-operative ₹0.97 L) + working capital for 3 months ₹41.07 L = ₹49.14 L. 350 sq m rented at ₹7,000 a month.

Working capital: Working capital is ₹41.07 L for 3 months — mostly 10,300 kg of cotton grey yarn a month at ₹125 a kg.

Prices from 2003 — machinery, raw material and wage costs will be much higher now.

How to prepare a loan file

§8Export potential

Confirm the HS code in the DGFT ITC(HS) lookup before you export

6006.21Other knitted or crocheted fabrics of cotton — unbleached or bleached

Export council / board: TEXPROCIL (The Cotton Textiles Export Promotion Council)

  • Dyed interlock falls under 6006.22; confirm the 8-digit ITC(HS) line with DGFT.
  • You need an Import Export Code (IEC) from DGFT before the first shipment.

§9Risks — where people fail

  • Yarn price swings
  • Slow payment from garment makers
  • Competition from large knitting clusters
  • Low machine use when orders dip

§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 interlock (double-knit) cotton fabric 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), 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

Not verified yet

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 Interlock (Double-Knit) Cotton Fabric?

DPR, loan file or registration — ask us on WhatsApp.

Get a DPR / loan file made

Sources

  1. DC-MSME project profile — Interlock Knitted Fabric (2003)

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