Sweater Manufacturing Project

Sweater Project

How to start a sweater manufacturing project? What docs are required? What about machinery and their price? How much area does it require? How much manpower? How much salary? What is the total cost of the project? What is the expected productivity and profit? Let us go through the following article that might be helpful to find the answers. In this article we shall be able to find a-z of a sweater project of 800 hand driven flat knitting machine. The project discussed here is Bangladesh based. This series of article will be helpful to the merchandisers involved in sweater merchandising to learn a -z of a sweater project.

List of required license/document

01	Trade License
02	Verified Memorandum Copy
03	IRC with pass book
04	IRC Recommend
05	ERC with pass book
06	TIN
07	Certificate of Incorporation
08	Investment Board Certificate
09	Project Feasibility Report
10	Factory License
11	BGMEA Registration
12	Fire License
13	Fire Policy
14	EPB Registration
15	Factory Insurance
16	General Bond
17	Factory Layout
18	Bond license customs
19	Bond license BGMEA
20	Bond Specimen Signature
21	Environment Certificate
22	Chamber Certificate
23	Boiler Registration
24	Group Insurance
25	Electricity permission
26	Gas Connection
27	WASA Permission
28	Telephone Connection

Required Area Calculation

Description	Quantity	Required area
01. Knitting section                                               3g	150 sets	30,000 sft
5g	250 sets
12g	400 sets
02. Knitting distribution and inspection chamber		2,000 sft
03. Winding section	16 sets	3,000 sft
04. Dial linking section                                         5g	45 sets	8,000 sft
6g	15 sets
8g	80 sets
14g	150 sets
16g	50 sets
05. Overlock section		800 sft
06. Zipper tuck section		800 sft
07. Linking distribution and inspection chamber		2,000 sft
08. Trimming, mending & continue section		4,500 sft
09. Washing section	3 sets	3,000 sft
10. Hydro extractor section	2 sets
11. Dryer section	4 sets
12. Washing goods dumping
13. Boiler section	2 sets	700 sft
14. Light checking section                                       38"	4 sets	600 sft
40"	4 sets
15. Iron section	35 pcs	2,500 sft
16. Iron inspection and label sewing section		100 sft
17. Ware house		4,000 sft
18. Office		1,800 sft
19. P.q.c. final check & finishing section		2,000 sft
20. Sample section		600 sft
21. Generator section		500 sft
22. Doctor's room & child care room		200 sft
23. Pump house		600 sft
24. Workshop		200 sft
25. Toilet		1,800 sft
Total		69,700 sft

Sweater Machinery List

Sl	Description	Quantity	Unit Price	Amount
1	Hand Driven Flat Knitting Machine	150 Sets	$  300.00	$  45,000.00
	(Needle Bed 36")                                     3g
	Origin : China
2	Hand Driven Flat Knitting Machine	250 Sets	$  290.00	$  72,500.00
	(Needle Bed 36")                                     5g
	Origin : China
3	Flat Knitting Machine	250 Sets	$  145.00	$  36,250.00
	(Needle Bed 36")                                    7g
	With Standard Accessories
	Origin : China
4	Hand Driven Flat Knitting Machine
	Model: Mn Type (Needle Bed 36")              12g	320 Sets	$  290.00	$  92,800.00
	(Needle Bed 42")                   12g	80 Sets	$  325.00	$  26,000.00
	Origin : China
5	Automatic Transfer                                   5g	125 Sets	$  20.00	$  2,500.00
	Origin : China                          7g	125 Sets	$  20.00	$  2,500.00
	12g	200 Sets	$  20.00	$  4,000.00
6	Twist Yarn Travers Winder	14 Sets	$  520.00	$  7,280.00
	08 Spindles
	Origin : China
7	Dial Linking Machine
	Without Stand, Chair & Motor             14g	150 Sets	$  145.00	$  21,750.00
	16g	50 Sets	$  150.00	$  7,500.00
	5g	45 Sets	$  140.00	$  6,300.00
	6g	15 Sets	$  140.00	$  2,100.00
	8g	80 Sets	$  140.00	$  11,200.00
8	Automatic Washer Machine
	Origin : China, Capacity: 70kg	3 Sets	$  5,400.00	$  16,200.00
9	Hydro Extractor
	Origin : China, Capacity: 70kg	3 Sets	$  3,800.00	$  11,400.00
10	Industrial Auto Dryer
	Origin : China, Capacity: 70kg	5 Sets	$  5,500.00	$  27,500.00
11	Inspection Equipment                       38"	4 Sets	$  390.00	$  1,560.00
	40"	4 Sets	$  405.00	$  1,620.00
	Origin : Taiwan
12	Industrial Steam Iron	35 Sets	$  115.00	$  4,025.00
13	Automatic Strap Knitting Machine 7g	3 Sets	$  800.00	$  2,400.00
	With Double Heads (Needle Bed 18") 12g	4 Sets	$  800.00	$  3,200.00
	Origin : China
14	M-7-Fur-Waste Brushing-Off Machine	2 Sets	$  3,000.00	$  6,000.00
	Origin : China
15	Standard Accessories	1 Lot		$  10,000.00
Total				$ 421,585.00

Sewing machine required for the sweater project

BRAND: JUKI/BROTHER

Sl	Description	Quantity	Unit Price	Amount
1	Plain Machine	14 Sets	$ 400.00	$ 5,600.00
2	Overlock Machine	10 Sets	$ 900.00	$ 9,000.00
3	Button Hole Machine	4 Sets	$ 4,500.00	$ 18,000.00
4	Button Stich Machine	4 Sets	$ 4,250.00	$ 17,000.00
5	Bartek Machine	4 Sets	$ 3,100.00	$ 12,400.00
6	Flat Lock Machine	2 Sets	$ 1,350.00	$ 2,700.00
Total				$ 64,700.00

Other machinery

Description	Quantity	Unit (Appx)	Amount
Boiler Machine Required: Capacity-470kgs/H	2 Sets	$ 22,492.00	$ 44,984.00
Generator Required: Capacity-350kva Brand: F.J. Wilson	1 Sets	$ 22,492.00	$ 22,492.00
Metal Detector	1 Sets	$ 12,000.00	$ 12,000.00
Total			$ 79,476.00

Cost of local machinery required for this project

Sl	Particulars	Quantity	Unit Price	Amount
1	Label Cutting Machine	4 Sets	$ 35.71	$ 142.86
2	Drawstring Machine	2 Sets	$ 428.57	$ 857.14
Total				$ 1,000.00

Furniture | Equipment

Sl	Description	Quantity	Unit Price	Amount
1	Knitting Stand (For 36" & 42" Needle Bed)	400 Pcs	$ 31.43	$ 12,571.43
2	Knitting Side Table	800 Pcs	$ 10.00	$ 8,000.00
3	Knitting Measurement Table	12 Pcs	$ 57.14	$ 685.71
4	Knitting Inspection Table	6 Pcs	$ 142.86	$ 857.14
5	Knitting Weight Scale	4 Pcs	$ 142.86	$ 571.43
6	Linking Table With Motor	57 Pcs	$ 214.29	$ 12,214.29
7	Linking Inspection Table	4 Pcs	$ 142.86	$ 571.43
8	Linking Weight Scale	2 Pcs	$ 28.57	$ 57.14
9	Trimming Table	10 Pcs	$ 114.29	$ 1,142.86
10	Long Bench	20 Pcs	$ 28.57	$ 571.43
11	Mending Table	10 Pcs	$ 114.29	$ 1,142.86
12	Long Bench	20 Pcs	$ 28.57	$ 571.43
13	Table For Light Check	6 Pcs	$ 57.14	$ 342.86
14	Chair	6 Pcs	$ 14.29	$ 85.71
15	Iron Table	13 Pcs	$ 121.43	$ 1,578.57
16	Iron Side Table	35 Pcs	$ 14.29	$ 500.00
17	Iron Inspection Table	4 Pcs	$ 114.29	$ 457.14
18	P.Q.C. Table	9 Pcs	$ 114.29	$ 1,028.57
19	Long Bench	18 Pcs	$ 28.57	$ 514.29
20	Final Check Table	6 Pcs	$ 114.29	$ 685.71
21	Long Bench	12 Pcs	$ 28.57	$ 342.86
22	Packing Section Table	4 Pcs	$ 114.29	$ 457.14
23	Long Bench	8 Pcs	$ 28.57	$ 228.57
24	Incharge And Supervisor Table	60 Pcs	$ 71.43	$ 4,285.71
25	In-charge And Supervisor Chair	60 Pcs	$ 8.57	$ 514.29
26	Supervisor Cabinet	60 Pcs	$ 42.86	$ 2,571.43
	Total			$ 52,550.00

Other expenses related to the different type of supporting materials for sweater production

Description	Amount
Winding Section:
Calculator	$ 14.29
Wooden Cones	$ 314.29
Knitting Section:
Yarn Distribution Table (4sets) And Chair (4 Sets)	$ 228.57
Linking Section:
Distribution Table And Chair	$ 228.57
Basket	$ 1,000.00
Triming Section:
Chair (1set) And Table (1set)	$ 42.86
Basket	$ 114.29
Mending Section
Chair (1set) And Table (1set)	$ 42.86
Basket	$ 114.29
Washing Section	$ 1,500.00
Packing Section
Basket	$ 114.29
PQC & Final Check Section
Basket	$ 114.29
Store Section
Rack For Keeping Parts	$ 857.14
Almirah (2sets)	$ 142.86
File Cabinet (2 Sets)	$ 71.43
Table (1set) & Chair (1set)	$ 42.86
Maintenance Section
Tools	$ 285.71
Office
Fax Machine (1 Set)	$ 571.43
Photocopy Machine (1 Set)	$ 1,142.86
Type Writer (1set)	$ 142.86
Computer (2 Sets)	$ 1,142.86
Telephone (2sets)	$ 428.57
Almirah (2sets)	$ 114.29
File Cabinet (4 Sets)	$ 114.29
Total	$ 8,885.71

Required Manpower

Winding Section

Sl	Position	No	Salary Condition	Basic & Salary	Total
01	Yarn Controller	01	Fixed Pay	$ 171.43	$ 171.43
02	Distributor	04	Fixed Pay	$ 71.43	$ 285.71
03	Operator	14	Fixed Pay/Produc	$ 42.86	$ 600.00
04	Helper	06	Fixed Pay	$ 40.00	$ 240.00
Total		14			$ 1,297.14

Knitting Section

Sl	Position	No	Salary Condition	Basic & Salary	Total
01	In Charge	01	Fixed Pay	$ 214.29	$ 214.29
02	Supervisor	26	Fixed Pay	$ 92.86	$ 2,414.29
03	Distributor	08	Fixed Pay	$ 85.71	$ 685.71
04	Asstt Distributor	02	Fixed Pay	$ 64.29	$ 128.57
05	Inspection	10	Production	$ 57.14	$ 571.43
06	Operator	800	Production	$ 40.00	$ 32,000.00
	Total	26			$ 36,014.29

Linking Section

Sl	Position	No	Salary Condition	Basic & Salary	Total
01	Linking In Charge	01	Fixed Pay	$ 214.29	$ 214.29
02	Distributor	04	Fixed Pay	$ 85.71	$ 342.86
03	Technician	01	Fixed Pay	$ 128.57	$ 128.57
04	Inspection	06	Fixed Pay	$ 71.43	$ 428.57
05	Operator	340	Production	$ 40.00	$ 13,600.00
06	Supervisor	14	Fixed Pay	$ 92.86	$ 1,300.00
07	Helper	06	Fixed Pay	$ 40.00	$ 240.00
Total					$ 16,254.29

Trimming Section

Sl	Position	No	Salary Condition	Basic & Salary	Total
01	Operator	65	Production	$ 57.14	$ 3,714.29
02	Supervisor	02	Fixed Pay	$ 92.86	$ 185.71
03	Light Check Operator	08	Production	$ 50.00	$ 400.00
	Total				$ 4,300.00

Zipper Tuck Section

Sl	Position	No	Salary Condition	Basic & Salary	Total
01	Supervisor	01	Production	$ 85.71	$ 85.71
02	Operator	15	Fixed Pay	$ 57.14	$ 857.14
	Total				$ 942.86

Sample Section

Sl	Position	No	Salary Condition	Basic & Salary	Total
01	Designer	01	Fixed Pay	$ 328.57	$ 328.57
02	Sample Man (Knitting)	06	Fixed Pay	$ 100.00	$ 600.00
03	Sample Man (Linking)	02	Fixed Pay	$ 85.71	$ 171.43
	Total	09			$ 1,100.00

Mending Section

Sl	Position	No	Salary Condition	Basic & Salary	Total
01	Supervisor	02	Fixed Pay	$ 85.71	$ 171.43
02	Operator	40	Production	$ 57.14	$ 2,285.71
	Total	40			$ 2,457.14

Washing Section (Including Dryer, Boiler & Hydro Extractor)

Sl	Position	No	Salary Condition	Basic & Salary	Total
01	Supervisor	01	Fixed Pay	$ 85.71	$ 85.71
02	Machine Operator	10	Fixed Pay	$ 57.14	$ 571.43
03	Helper	10	Fixed Pay	$ 42.86	$ 428.57
	Total	21			$ 1,085.71

Iron Section

Sl	Position	No	Salary Condition	Basic & Salary	Total
01	Supervisor	02	Fixed Pay	$ 114.29	$ 228.57
02	Inspection	06	Fixed Pay	$ 71.43	$ 428.57
03	Sample Man	02	Fixed Pay	$ 71.43	$ 142.86
04	Operator	35	Production	$ 64.29	$ 2,250.00
	Total	45		$ 0.00	$ 3,050.00

Sewing Section Section

Sl	Position	No	Salary Condition	Basic & Salary	Total
01	Sewing Machine Operator	14	Fixed Pay	$ 57.14	$ 800.00
02	Over Lock Operator	10	Fixed Pay	$ 78.57	$ 785.71
03	Flat Lock Operator	02	Fixed Pay	$ 57.14	$ 114.29
04	Buttonhole Operator	04	Fixed Pay	$ 57.14	$ 228.57
05	Button Stitch Operator	04	Production	$ 57.14	$ 228.57
06	Bartack Machine	04	Fixed Pay	$ 57.14	$ 228.57
07	Technician	01	Fixed Pay	$ 171.43	$ 171.43
08	Helper	05	Fixed Pay	$ 40.00	$ 200.00
	Total	44		$ 0.00	$ 2,757.14

Production Quality Control Final Check Section

Sl	Position	No	Salary Condition	Basic & Salary	Total
01	In Charge	01	Fixed Pay	$ 200.00	$ 200.00
02	Supervisor	02	Fixed Pay	$ 100.00	$ 200.00
03	Operator	40	Fixed Pay	$ 57.14	$ 2,285.71
	Total	45		$ 0.00	$ 2,685.71

Quality Control Section

Sl	Position	No	Salary Condition	Basic & Salary	Total
01	Quality Controller	08	Fixed Pay	$ 100.00	$ 800.00
	Total	08			$ 800.00

Packing Section

Sl	Position	No	Salary Condition	Basic & Salary	Total
01	Supervisor	01	Fixed Pay	$ 114.29	$ 114.29
02	Packing Man	20	Production	$ 57.14	$ 1,142.86
	Total	21			$ 1,257.14

Store Section

Sl	Position	No	Salary Condition	Basic & Salary	Total
01	Store In Charge	01	Fixed Pay	$ 171.43	$ 171.43
02	Asstt. Store In Charge	02	Fixed Pay	$ 57.14	$ 114.29
03	Loader	10	Fixed Pay	$ 54.29	$ 542.86
	Total	13			$ 828.57

Security Section

Sl	Position	No	Salary Condition	Basic & Salary	Total
01	Security (Male)	08	Fixed Pay	$ 57.14	$ 457.14
02	Security (Female)	05	Fixed Pay	$ 50.00	$ 250.00
	Total	13			$ 707.14

Office

Sl	Position	No	Salary Condition	Basic & Salary	Total
01	Production Manager	01	Fixed Pay	$ 857.14	$ 857.14
02	Asst. Prdn Manager	02	Fixed Pay	$ 428.57	$ 857.14
03	Accounts Manager	01	Fixed Pay	$ 571.43	$ 571.43
04	Accountant	04	Fixed Pay	$ 142.86	$ 571.43
05	Commercial Manager	01	Fixed Pay	$ 571.43	$ 571.43
06	Commercial Officer	01	Fixed Pay	$ 285.71	$ 285.71
07	Commercial Assitant	01	Fixed Pay	$ 71.43	$ 71.43
08	Quality Manager	01	Fixed Pay	$ 571.43	$ 571.43
09	Merchandising Manager	01	Fixed Pay	$ 1,000.00	$ 1,000.00
10	Merchandiser	01	Fixed Pay	$ 500.00	$ 500.00
11	Admin Officer	01	Fixed Pay	$ 214.29	$ 214.29
12	Office Asstt	02	Fixed Pay	$ 85.71	$ 171.43
13	Time Keeper	06	Fixed Pay	$ 71.43	$ 428.57
14	Peon	02	Fixed Pay	$ 42.86	$ 85.71
15	Cleaner	08	Fixed Pay	$ 42.86	$ 342.86
16	Helper	05	Fixed Pay	$ 50.00	$ 250.00
17	Security In Charge	01	Fixed Pay	$ 92.86	$ 92.86
18	Purchase Asstt	01	Fixed Pay	$ 157.14	$ 157.14
	Total	40			$ 7,600.00

Production Quality Control Final Check Section

Sl	Position	No	Salary Condition	Basic & Salary	Total
01	Doctor	01	Fixed Pay	$ 357.14	$ 357.14
02	Nurse	02	Fixed Pay	$ 85.71	$ 171.43
	Total	3			$ 528.57

Working Capital Calculation

01	Winding Section	For 25 Persons	$ 1,297.14
02	Knitting Section	For 847 Persons	$ 36,014.29
03	Linking Section	For  372 Persons	$ 16,254.29
04	Trimming Section	For 75 Persons	$ 4,300.00
05	Zipper Tuck Section	For 16 Persons	$ 942.86
06	Sample Section	For 09 Persons	$ 1,100.00
07	Mending Section	For 42 Persons	$ 2,457.14
08	Washing Section	For 21 Persons	$ 1,085.71
09	Iron Section	For 45 Persons	$ 3,050.00
10	Sewing Section	For 44 Persons	$ 2,757.14
11	PQC & Final Check	For 43 Persons	$ 2,685.71
12	Qc Section	For 08 Persons	$ 800.00
13	Packing Section	For 21 Persons	$ 1,257.14
14	Store Section	For 13 Persons	$ 828.57
15	Security Section	For 13 Persons	$ 707.14
16	Office Expenses	For 40 Persons	$ 5,900.00
17	Medical Deptt	For 03 Persons	$ 328.57
Total			$ 81,765.71
Gas & Electricity Bills			$ 3,571.43
Misc. Expenses			$ 1,071.43
Stationery			$ 714.29
Total			$ 87,122.86
Total Working Capital For 3 Months 87,122.86 X 3 =			$ 261,368.57

Total Cost Calculation

01	Machine For Knitting & Others	$  421,585.00
02	Machine For Sewing & Others	$  64,700.00
03	Boiler (470 Kg X 2)	$  44,984.00
04	Metal Detector (1 Set)	$  12,000.00
05	Local Machine	$  1,000.00
06	Local Furniture/Equipments	$  52,550.00
07	Other Expenses For Supporting Equipments	$  8,885.71
	Sub Total	$  605,704.71
01	Electrical Sub Station	$  40,000.00 (Appx)
02	Electric Connection & Materials	$  42,500.00 (Appx)
04	Generator 350kv	$  22,492.00 (Appx)
05	Gas Connection	$  7,200.00 (Appx)
06	Water Line & Deep Tube Well	$  20,000.00 (Appx)
07	Fire Equipment	$  4,200.00 (Appx)
08	Documentation	$  11,000.00 (Appx)
	Sub Total	$  147,392.00 (Appx)
09	Working Capital For 3 Months	$  261,368.57 (Appx)
Grand Total		$  1,014,465.29

Productivity and Profit

Normal working hour	10 Hrs/Day
Working Days	22 Days(Avg)
	X 12 Months =264 Days/Year

Capacity of Production

3G Knitting Machine       150 x 8 pcs x 264 Days	3,16,800 Pcs
5G/7G Knitting Machine  250 x 7 pcs x 264 Days	4,62,000 Pcs
12G Knitting Machine      400 x 5 Pcs x 264 Days	5,28,000 Pcs
Total	13,06,800 Pcs/1,08,900 Dz

Expected Turn over (FOB Price)

3G -- 3,16,800 (Pcs) = 26,400 Dz @ $  51.00	$  13,46,400.00
5G/7G -- 4,62,000 (Pcs) = 38,500 Dz @ $  54.00	$  20,79,000.00
12G -- 5,28,000 (Pcs) = 44,000 Dz @ $  48.00	$  21,12,000.00
Total	$  55,37,400.00

Expected profitability @ 4% of Turnover

$  2,21,496.00

Note: Though normal profitability in sweater industry in Bangladesh is around 6% of turnover, here it is calculated it in a conservative way.