This business idea is for production and marketing of cotton t-shirts. Cotton t-shirts are particularly for sports and casual wear. A good sweat absorbent wear, these garments are soft, tough and wrinkle free. The revenue is estimated at US$ 702,000 per year, and the project cost is estimated at US$ 107,819 inclusive of operating cost in the first year and the revenue potential is USD 702,000. The pay period is 3 months at net profit of 87%.The production capacity per day is 450 t-shirts per day. The risk associated is marketing mix which can be managed by better management and control of the business.
As per the desired sizes and designs, the knitted fabric is cut into pieces and labeled as per measurement of the latest designs for the market. Then, the required button stitching is added to the semi finished fabrics. These products undergo strict quality control measures as knitted shirts and finished garments that are ready for packing and marketing.
Capital Investment Requirements in US$
|Capital investment item||Units||Qty||@||Amount|
|Over lock machine||no||1||988||988|
|Industrial flat iron||no||1||258.4||258.4|
|Zig zag machine||no||1||610||610|
|Total cost on machinery||18,318|
Production and Operating Costs
|Cost Item||Unit||@/ day||Qty/ day||Pdn cost/ day||Pdn cost/ month||Pdn cost/ yr|
|Cotton knitted fabric||mtrs||1.5||450||675||17,550||210,600|
|Utilities(water and power)||150||1,800|
|Depreciation(Asset write off)Expenses)||4579||54,953|
|Total Operating Costs||7,458||89,501|
- Production costs assumed are for 312 days per year; with a daily capacity of 450 pieces of T-shirts.
- Depreciation (fixed assets write off) assumes 4 years life of assets written off at 25% per year for all assets.
- Direct costs include: materials, supplies and other items that directly go into production of the product.
Project Product Costs and Price in US$
|Item||Qty/day||Qty/yr||@||Pdn cost /yr||UPx||TR|
Profitability Analysis in US$
|Profitability Item||Per day||Per month||Per Year|
|Less production and operating Costs||287||7,458||89,501|
The demand for T-shirts has been increasing as a casual wear especially for sportswear. Apart from domestic demand, the shirts enjoy a lot of demand from the export market. With the current market prospects in the Western countries, this could yet turn out to be a very profitable project
Source of raw materials and equipment
Raw materials can be sourced locally from knitting industries like phoenix or could be imported from Italy and German.
Government Facilities and Incentives
The government is willing to support industrialist as an initiative for development. There are tax exemptions and land protectionism at relatively low interest rates.