§1What this business is
Wool yarn is wound and knitted into panels, which are inspected, linked, trimmed, mended, fitted with button holes, washed, labelled, ironed and checked before dispatch. About 5 kids' sweaters come from 1 kg of wool, per the report.
Capacity: 72 sweaters a day, 21,600 a year (8 hours, 300 days).
§2Is it right for you?
Who it is for
Someone in a cold region or near a woollen market, with retail contacts.
Who it is not for
Warm regions without winter demand, unless you sell to distant markets.
Advantages
- Small start (₹6.67 lakh)
- Computerised machine is easy to run, says the report
- Children outgrow sweaters every year — repeat demand
- Small team of 5
Drawbacks
- Winter-only sales; stock must be built ahead
- Very low first-year profit
- Competes with Ludhiana and other hubs
- Wool prices rise yearly in the report
Skills you need
- Knitting machine programming
- Linking and finishing
- Design and sizing for children
- Season planning
Why difficulty 2/5: Small and simple, but sales are squeezed into a few winter months.
§3Market
Who buys
- Parents buying for children
- Garment and hosiery shops
- Schools (uniform sweaters)
How it sells
- Winter wholesale markets
- Retail shops and online
Good to know
- The report puts India's woollen industry at ₹11,484.82 crore.
§4Raw material & machinery
| Item | Qty | Cost |
|---|---|---|
| Computerised knitting machine, stitching machine, hand plate, other equipment and hand tools | 1 set | ₹2.50 lakh (excl. GST) |
From: PMEGP sample project report — Kids Woolen Sweater (prepared by Udyami/Samadhan)
- Wool yarn₹320 a kg in year 1; about 5 sweaters a kg; 4,200 kg a year at full capacity
- Buttons, labels and packingfor finishing
From: PMEGP sample project report — Kids Woolen Sweater (prepared by Udyami/Samadhan)
In our raw material database
§5Licences & registration
- Udyam registration
- GST registration
- Trademark for your brand name (optional)
§6Schemes & subsidies
- PMEGPCentralActive15–35% subsidy
- MudraCentralActiveLoan up to ₹20 lakh, no collateral
- CGTMSECentralActiveNo collateral, up to ₹10 crore
Prepared for PMEGP; a MUDRA Kishore loan covers ₹6.67 L.
§7Money
How the investment is worked out: Shed (1,000 sq ft) ₹2.00 L + plant & machinery ₹2.50 L + furniture ₹0.50 L + working capital ₹1.67 L = ₹6.67 L. Term loan ₹4.50 L, working capital ₹1.50 L, own ₹0.67 L.
Working capital: Working capital ₹1.67 L (bank ₹1.50 L): 15 days of wool and finished stock.
Year not printed in the report — check current machinery and raw-material prices.
§8Export potential
Confirm the HS code in the DGFT ITC(HS) lookup before you export
Export council / board: Wool and Woollens Export Promotion Council (WWEPC)
- Kids' woollen sweaters fall under 6110 11 or 6111 depending on size.
§9Risks — where people fail
- Mild winter
- Unsold stock after the season
- Wool price rise
- Machine breakdown at peak season
§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 kids' woollen sweater knitting 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 Kids' Woollen Sweater Knitting?
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.