How to Start a Garment Manufacturing Business
Shubham Anil Jain
Aditya Birla Fashion and Retail Limited
The manufacturing of clothing necessitates proficiency in textile marketing as well as process technology. A garment manufacturing business involves the production of clothing and textile products. It encompasses various processes, from designing and pattern making to cutting, sewing, and finishing. Today’s world has a multi-billion dollar ready-made garment manufacturing industry. More people are conscious of their appearance and fashion. This has given the global garment manufacturing industry a lot of room to grow.
Things to Consider Before Starting a Garment Manufacturing Business:
Starting a garment manufacturing business requires careful planning, attention to detail, and a focus on quality. Here are some steps to help you get started:
1. Perform research:
The ready-to-wear clothing market is incredibly large. The creation of garments is a difficult task as well. You should start by taking a more comprehensive view of the clothing and garment market. Consider the full supply chain for clothing.
2. Consider all of the available options:
Before starting out, it is crucial to evaluate the potential of the apparel manufacturing sector. You can build a brand-new product line from the ground up.
As customers in the United States, Europe, and high-street retailers buy fabrics from third-world countries, mainly South Asia, you can also expand internationally. You can therefore start your own export garment manufacturing business.
3. Select the Products You Want to Make:
A fashion line contains many different kinds of products. Choose some categories for your company. When making a decision, do some research on current trends, best-selling items, staple products, and basic product categories.
Because you will be creating clothing for other people, product design is not necessary for this business. On the other hand, you must initially concentrate on product design if you want to build your brand and a fashion company with production facilities.
4. Select a Location:
If you don’t have enough space to manufacture, you won’t be able to start your factory. The next step for the production company would be to select a location. If your factory could be located in an industrial area, that would be ideal. That would have enabled you to benefit from numerous chances to get daily necessities.
Employees and tailors are easily accessible in the industrial area. Tirupur, Ludhiana, Noida, Delhi, Gurgaon, Bangalore, and Kolkata are a few of India’s well-known garment manufacturing hubs.
5. Determine the Monthly Production Estimate:
It is now time to decide how much output you will produce each day. In order to meet this demand, you will need to purchase a lot of machinery, hire a large number of workers, establish a manufacturing unit and departments, and set up additional equipment.
6. Estimate the Amount of Labour, Equipment, and Materials that will be Needed:
Make a thorough project report that details the personnel requirements, the types of equipment needed, and the materials needed to make the products.
Part of the machine demand planning process involves researching the various machinery needed to produce the targeted goods and types of goods. Next, determine how many sewing machines, non-sewing machines, and pieces of machinery are required to meet the monthly production quantity.
7. Draw up an Investment Strategy:
Create a thorough report that details the costs associated with the space, labour, equipment, and supplies. Once your project report is complete, calculate the cost of factory setup.
The cost of machinery and equipment, raw materials for one production cycle, three months’ worth of personnel pay, pre-operative costs, implementation costs, overhead costs like power, printing, and office supplies, marketing and promotion costs, and so on are all included in this financial report.
8. Choose a Source of Startup Funding:
You will have a better idea of how much money you will need to start and run the clothing business once you have compiled the financial report. Separate the required finances into two categories: the initial capital expenditure and operating expenses. According to this split, adjust the funds. By requesting a bank’s government-backed startup loan, you can raise capital. Another choice is to collaborate with someone who wants to invest in your business.
Steps to Set Up the Garment Manufacturing Business:
a) Registration of the company:
Consult the Ministry of Corporate Affairs about registering your company. The completion of the registration may take anywhere from one to seven days. The selection of a company name is the first stage. Additionally, the name must be both easy to pronounce and distinctive. To see if the name of your choice is available, visit the MCA website. The majority of clothing businesses are set up as Limited Liability Partnerships (LLP) or Private Limited Companies.
b) Open a bank account:
After the organization is registered, a separate bank account needs to be opened. The incorporation certificate and PAN card, which may be needed for opening a bank account, will be provided after business registration.
The account will be useful if you ever need to apply for a company loan. This is a crucial step in launching a clothing company in India.
c) Rental contract:
If the industrial premises are rented, the organization and the property owners must sign a lease. If the lease agreement is executed in the entity’s name, the responsibility will be constrained. In addition, transfer is easy.
d) Sign up for GST:
Before making plans for an inventory or paying for installations, the business must register for GST and obtain a GSTIN. You can claim all of the GST input tax credits by using your GSTIN number, which will reduce your tax obligation.
e) Complete the premises as per industrial standards:
After renting a property, upgrade the infrastructure. Depending on the floor plan (a single-floor factory or a multi-story building), social compliance must be taken into account when building.
Create a floor plan for the various divisions, offices, and production lines. Establish office infrastructure by installing electrical wiring, for example. You can set up a conference room, showroom, CAD room, and sampling room.
f) Invest in equipment:
In accordance with your project report and from a reliable supplier, purchase machinery and equipment. Get price estimates from a few equipment vendors. There are other sewing machine varieties available as well.
g) Hire and develop staff:
To get going, assemble a group of managers and workers to run your company. To hire employees, you can use the assistance of a workforce-providing organization.
There should be a head of department for each unit. Hire professionals who have experience working in the garment manufacturing sector. Make the necessary preparations if on-the-job training is required.
h) Start production:
You can start making garment samples of the designs you’ll be making to show prospective customers. Once you have a clientele, you’ll start getting large orders. To fulfill these orders, you will need to create a list of the raw materials and extras you will need, as well as purchase them all. When the facility is prepared for mass production, you should start garment manufacturing.
i) Promote and market your business:
It is now time for you to spend some time on the marketing of your company once you have finished setting up your organization and putting all the functions and operations in place. No company has a chance of success without marketing. You need to let people know about your business, what you have to offer, how you differ from the competition, your vision, and anything else that will draw in more and more customers.
These are the fundamental actions to begin start a garment manufacturing business. Additional approvals, clearances, and permits can be necessary depending on the state government and the size of the unit. To avoid potential legal difficulties, it is advised that you do extensive pre-licensing related study before opening a garment manufacturing facility. To get recurring orders, try to develop long-term partnerships with distributors, retailers, etc. Besides, to start a garment manufacturing business needs to stay updated with industry trends, invest in technology and automation, and maintain a focus on delivering high-quality garments to succeed in this competitive industry.
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Founder & Editor of Textile Learner. He is a Textile Consultant, Blogger & Entrepreneur. He is working as a textile consultant in several local and international companies. He is also a contributor of Wikipedia.