§1What this business is
A composite KVIC model: 25 solar-powered charkhas spin sliver into yarn, 10 looms (5 new, 5 owned by weavers) weave it into cloth, and a small garment section (5 lockstitch machines, an overlock and a fabric cutter) makes men's shirts. About 18,000 shirts a year at around ₹445 each, sold through KVIC outlets and also as bedsheets, towels and uniforms to government buyers.
Capacity: About 60 shirts a day, 18,000 a year (₹80 L at full capacity); 70% use in year 1.
§2Is it right for you?
Who it is for
A khadi institution or experienced garment entrepreneur in a weaving area.
Who it is not for
A first-time founder without people-management experience.
Advantages
- Large rural employment — 47 people
- Value addition from yarn to finished shirts in one unit
- KVIC supports supply and marketing
- Net profit ratio above 21% in the report
Drawbacks
- Managing 47 workers across three stages is hard
- Depends on KVIC outlets and government orders
- Shirts must match changing sizes and styles
- Handloom output is slow
Skills you need
- Production planning across spinning, weaving and stitching
- Garment sizing and quality
- Managing a large workforce
- Selling through KVIC and to institutions
Why difficulty 3/5: Three production stages and a big team to run.
§3Market
Who buys
- Khadi shoppers through KVIC outlets
- Government departments and the Railways
- Institutions needing uniforms
How it sells
- KVIC departmental sales outlets
- Government supply through KVIC's Marketing Directorate
Good to know
- Average shirt price about ₹445 in the report.
§4Raw material & machinery
| Item | Qty | Cost |
|---|---|---|
| 8-spindle charkha | 25 | ₹3,37,500 (₹13,500 each) |
| Solar panel, battery and motor set | 25 | ₹4,50,000 (₹18,000 each) |
| Improved loom (5 more owned by weavers) | 5 | ₹2,00,000 (₹40,000 each) |
| Garment machine set: 5 single-needle lockstitch machines, 1 overlock machine, automatic fabric cutting machine and accessories | 1 set | ₹3,75,000 |
- Sliver/roving6,260 kg a year at ₹225 a kg = ₹14.09 L (full capacity); from KVIC plants or textile mills
§5Licences & registration
- Udyam registration
- GST registration
- Khadi certification through KVIC if you sell as khadi
- Trade licence from the local body
§6Schemes & subsidies
- PMEGPCentralActive15–35% subsidy
- CGTMSECentralActiveNo collateral, up to ₹10 crore
- Stand-Up IndiaCentralClosed₹10 lakh – ₹1 crore loan
Built for PMEGP (25% margin money in the report); CGTMSE and Stand-Up India (SC/ST or women founders) can back the bank loan. Above MUDRA's ₹20 lakh limit.
§7Money
How the investment is worked out: KVIC project report: 25 charkhas (8-spindle) ₹3,37,500 + 25 solar panel/battery/motor sets ₹4,50,000 + 5 improved looms ₹2,00,000 + garment machine set ₹3,75,000 = ₹13,62,500; pre-operative ₹50,000, furniture ₹1,00,000 (capital ₹15,12,500); working capital ₹9,75,194 → total ₹24,87,694. Finance: own 10% ₹2,48,769, term loan ₹13,61,250, working capital ₹8,77,675; KVIC margin money (25%) ₹6,21,924.
Working capital: Working capital ₹9,75,194 per cycle (bank ₹8,77,675); wages are the largest cost (₹32.56 L a year at full capacity).
Year not printed on the KVIC profile — check current machinery prices.
§8Export potential
Confirm the HS code in the DGFT ITC(HS) lookup before you export
Export council / board: Apparel Export Promotion Council (AEPC)
- Get an Import Export Code (IEC) from DGFT before exporting.
§9Risks — where people fail
- Unsold shirts
- Worker turnover
- Sliver supply delays
- Delayed payments from outlets or departments
§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 solar charkha spinning, weaving and garment unit 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 Solar Charkha Spinning, Weaving and Garment Unit?
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.