§1What this business is

Woollen yarn is knitted into tubular fabric on a power-driven circular knitting machine. The fabric is cut, stitched on chain-stitch and overlock machines, steam-pressed, labelled and packed. The profile names IS 3330:1998, IS 2518:1964 and IS 3353:1966 as the quality standards. Buyers are wholesalers and shops selling winter wear; the profile says demand comes from both the home and foreign markets.

Capacity: 25,000 dozen vests a year, worth ₹107.50 L.

§2Is it right for you?

Who it is for

Someone from the hosiery or knitwear trade with buyers among winter-wear wholesalers.

Who it is not for

A first-timer without a selling network — unsold winter stock waits a full year.

Advantages

  • Woollen vests sell every winter to all age groups
  • One circular machine makes fabric fast, so output per worker is high
  • The profile shows a 34% return on the money put in

Drawbacks

  • Sales are seasonal — stock must be built months before winter
  • Two-thirds of the investment is working capital tied up in yarn and stock
  • Margin is about 11% of sales, so yarn price rises hurt quickly

Skills you need

  • Running and setting a circular knitting machine
  • Cutting to size with little waste
  • Buying yarn at the right time and price
  • Selling to wholesalers before the season

Why difficulty 3/5: Simple process, but the seasonal stock and large working capital need careful planning.

§3Market

Who buys

  • Winter-wear wholesalers
  • Hosiery and garment shops
  • Buyers in foreign markets (the profile says demand is both domestic and foreign)

How it sells

  • Supply to wholesale markets before winter
  • Direct supply to retail shops

Good to know

  • The profile calls woollen vests a consumer product used by all.
  • Turnover at full capacity is ₹107.50 L a year.

§4Raw material & machinery

ItemQtyCost
Circular knitting machine, 18–19 inch dia, 18 gauge, 1 HP1—
Power-driven cloth cutting machine, 8 inch1—
Chain stitching machine2—
Overlock stitching machine2—
Flat-bed steam iron press2—
Hand-operated hydraulic press1—
Total machinery and equipment—₹11,39,000

From: MSME-DI Hyderabad project profile — Knitted Woollen Vests

  • Woollen yarn, 24s single count1,250 kg a month
  • Woollen yarn, 20s single count1,500 kg a month
  • Labels, sewing thread and packing materialall raw material together ₹6,26,250 a month

From: MSME-DI Hyderabad project profile — Knitted Woollen Vests

In our raw material database

Raw wool →

§5Licences & registration

  1. Udyam registration
  2. GST registration
  3. Trade licence from the local body
  4. Factory licence if your worker count crosses the Factories Act limit
  5. BIS standards named in the profile (IS 3330, IS 2518, IS 3353) as the quality reference

We can do this registration for you

§6Schemes & subsidies

PMEGP (manufacturing projects up to ₹50 L) and CGTMSE fit the ₹33.88 L project; MUDRA covers loans up to ₹20 L; Stand-Up India for SC/ST and women founders.

§7Money

How the investment is worked out: Machinery ₹11.39 L (circular knitting machine, power cloth cutter, 2 chain-stitch machines, 2 overlock machines, 2 flat-bed steam presses, hand hydraulic press) + working capital for 3 months ₹22.49 L = total capital investment ₹33.88 L. Building rented at ₹5,000 a month.

Working capital: ₹22.49 L for 3 months. Raw material ₹6,26,250 a month: 1,250 kg of 24s and 1,500 kg of 20s single-count woollen yarn, plus labels, sewing thread and packing.

Year not printed on the MSME-DI Hyderabad profile; the prices are old — check current machinery and material prices.

How to prepare a loan file

§8Export potential

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

6109.90T-shirts, singlets and other vests, knitted or crocheted, of other textile materials (wool)6110.11Jerseys, pullovers, cardigans, waistcoats and similar articles, knitted, of wool

Export council / board: AEPC (Apparel Export Promotion Council)

  • Inner vests fall under 6109; sleeveless sweaters (waistcoats) under 6110.
  • Confirm the 8-digit ITC(HS) line with DGFT or your customs broker before shipping.
  • You need an Import Export Code (IEC) from DGFT before the first shipment.

§9Risks — where people fail

  • A warm winter cuts demand
  • Woollen yarn price swings
  • Unsold stock carried to next year
  • Cheap imports and large brands

§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 knitted woollen vests 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 registration), 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 Knitted Woollen Vests?

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

Get a DPR / loan file made

Sources

  1. MSME-DI Hyderabad project profile — Knitted Woollen Vests

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