Internship Report - Readymade Garment Shop
1. Acknowledgement
I would like to express my sincere gratitude to the management and staff of the readymade garment shop for
giving me the opportunity to intern and learn about the operations of the retail garment industry. My special
thanks to my internship coordinator and faculty members for their continuous support and guidance.
2. Company Profile
The readymade garment shop operates in the retail sector and specializes in gents shirts and trousers. The
business contributes to the Indian economy by generating employment and catering to both domestic and
export markets. The shop sources quality fabrics and ensures precise cutting, stitching, washing, and
packaging processes.
3. Internship Objectives
- To understand the retail management system of a readymade garment shop.
- To gain insights into procurement, production, and sales functions.
- To learn about customer handling and inventory control.
- To apply classroom knowledge to a real-world business environment.
4. Work Experience
Internship Report - Readymade Garment Shop
During the internship, I observed and assisted in various departments such as inventory management,
customer service, billing, and procurement. I also gained exposure to the stitching and packaging units,
learning about the production flow from fabric inspection to final delivery.
5. Key Learnings
- Importance of quality control in fabric selection and garment stitching.
- Understanding customer preferences and the impact of fashion trends.
- Practical knowledge of POS systems and stock maintenance.
- Financial management aspects like cost calculation and pricing strategies.
6. SWOT Analysis
Strengths: High-quality production, skilled workforce, established market.
Weaknesses: Limited digital presence, manual record keeping.
Opportunities: Growing demand for ready-to-wear clothing in rural areas.
Threats: Market competition and changing fashion trends.
7. Conclusion
This internship has been an enriching experience that helped bridge the gap between academic learning and
practical application. It provided valuable insights into the functioning of a readymade garment business and
enhanced my understanding of commerce and business operations.
9
Gents Readymade Garments
PRODUCT CODE : 264104005
QUALITY AND STANDARDS : Garment Quality Guide— IS12675
Readymade Garment Packaging for Export
IS 4039
Garments Guide for Positioning of Labels
IS 10194
PRODUCTION CAPACITY : Qty. : 90,000 Pcs. Shirts, 90,000 Pcs. Trousers
Value : Rs. 4.50 crore
MONTH AND YEAR : March,1999
OF PREPARATION
PREPARED BY : Branch Small Industries Service Institute,
151, Patel Road, Coimbatore-641009.
(Tamil Nadu)
INTRODUCTION MARKET POTENTIAL
Readymade garment industry has Readymade garments are the
occupied a unique place in the industrial choice of urban people. It is also
scenario of our country by generating gaining wider acceptance in semi-
substantial export earnings and creating urban and rural areas. The huge
lot of employment. Its contribution to charges made by tailors and delay in
industrial production, employment and delivery have made people to switch
export earnings is very significant. This over to readymade gar ments. In
industry provides one of the basic domestic market and export market,
necessities of life. The employment it has made spectacular progress in
provided by it is a source of livelihood the last decade. This industry is
for millions of people. It also provides
becoming very vibrant and lot of
maximum employment with minimum
foreign investment pouring in this
capital investment. Since this industry
industry because of low risk and high
is highly labour-intensive, it is ideally
earning nature of this industry. As
suited to Indian condition. This project
report is prepared for the manufacture these products are fashion oriented,
of gents shirts, gents trousers as they find entrepreneurs should always keep in
wide acceptance in local and international mind the changing fashion styles.
markets. Such establishments can be Considering its advantageous
easily set up by any person having the position, it is assumed that there will
knowledge of cutting and stitching be no constraint in marketing of
operations. gents readymade garments.
G ENTS READYMADE GARMENTS 45
B ASIS AND PRESUMPTIONS 3. Preparation of feasibility 1 month
report
1. This project is based on single
4. Registration with commi- 1 month
shift basis and 300 working days
ssioner of Industries/DIC
in a year.
2. Since this industry is labour- 5. Arrangement of finance 3 months
intensive, the working efficiency (Term loan and working
is considered at 75%. capital)
6. Procurement of machin- 1 month
3. Costs of machinery and equipment/
ery and equipment
material indicated refer to a particular
make and approximately to those 7. Plant erection and 2 weeks
prevailing at the time of electrification
preparation of this project. 8. Arrangement of raw 1 month
4. Installation and electrification cost material including
is taken @ 10% of cost of packaging material etc.
machinery and equipment. 9. Recruitment of manpower 1 month
5. Non-refundable deposits, project 10. Selection of market 1 month
report cost, trial production, channel
security deposits with Electricity
Board are taken under pre- 11. Miscellaneous works 2 months
operative expenses. like power/water
6. Depreciation has been considered: connection etc.
(a) On Building @ 5% Note: Considering that some of the
(b) On plant and machinery above activities may be
@ 10% overlapping, the project
(c) On office furniture and fixtures implementation will take a total
@ 15% period of six months
(d) On other fixed assets @ 15%. approximately for starting the
7. Interest on capital investment has production.
been taken @ 14% per annum.
8. Minimum 25% of total investment
TECHNICAL ASPECTS
is required as margin money. Process of Manufacture
The process involves the following steps:
IMPLEMENTATION SCHEDULE
Procurement of Fabric : Dyed/
Implementation period in months for bleached/printed cotton/synthetic
executing this project in stage-wise is fabrics as per demand are to be
given below : procured from the open market. The
Sl.No. Activity Period fabric will be inspected by laying on the
1. Selection of site/working 1 month inspection table against light before
shed cutting so that unevenness in colour/
2. Formation of company 1 month shade or any other fault, if any visible in
(ownership/partnership) the fabric are eliminated.
46 G ENTS READYMADE GARMENTS
Cutting and Stitching : The inspected Motive Power
fabric is placed on the cutting table in Total 55.5 HP is required to run this
layers and then the different parts of the unit at installed capacity.
respective garments are demarked by a
chalk as per different sizes. Cutting is Pollution Control
carried out by the cutting machine.
The process of manufacture does not
Stitching is carried out for individual
generate pollution. However, entrepreneurs
portion of the garments by skilled
are to contact State Pollution Control
workers with the help of overlock, lock
Board for necessary guidance.
stitch machines etc.
Washing, Checking, Pressing and Energy Conservation
Packing : All garments are charged into
Maximum care should be taken while
washing machine containing mild
selecting the machinery and other
detergent and washed for 4 hours in
electrical equipments so as to ensure
order to remove dirt and stains acquired
minimum power consumption.
during the manufacturing process. After
washing, the garments are hydroextracted FINANCIAL ASPECTS
to remove excess water and after this,
these garments are dried in tumbler A. Fixed Capital
dryer. Final checking is done before (i) Land and Building
pressing and packing on the checking Land 800sq.mt. @ Rs. 150p.s.m.
table so that any fault in the piece may Amounting Rs.1,20,000
be removed and protruding threads Building Area
eliminated. The individual pieces are Factory shed 250 sq. mt.
pressed by steam presses to remove any Store (Raw material) 50 sq. mt.
wrinkle marks and packed in the carton Store (Finished goods) 50 sq. mt.
boxes. Office etc. 25 sq. mt.
Total Covered Area 375 sq. mt.
Quality Control and Standards
Total Construction Cost Rs. 6,75,000
The quality of gar ments mainly @ Rs. 1,800/sq.mt.
depends on quality of fabric used. Total Investment in Hand Rs. 795000
Therefore, care must be taken while and Building
purchasing fabrics to ensure good
(ii) Machinery and Equipments
colour fastness properties, uniformity in
shade etc. Generally garments are made Sl. Description No. Rate Amount
as per customer’s specification in No. (In Rs.) (In Rs.)
respect of size, design and fashion. 1. Fabric inspection 1 1,60,000 1,60,000
machine
Production Capacity (per annum) 2. 8" Power driven 1 70,000 70,000
cloth cutting machine
Product Quantity(pcs.) Amount (In Rs.) 3. Single needle lock 50 20,000 10,00,000
stitch machine with
Gents Shirts 90,000
motor
Gents Trousers 90,000 4. 2 Needle overlock 1 50,000 50,000
4,59000,000 safety stitching machine
with edge trimmer
G ENTS READYMADE GARMENTS 47
Sl. Description No. Rate Amount Sl. Designation No. Rate Amount
No. (In Rs.) (In Rs.) No. (In Rs.) (In Rs.)
5. Double Needle lock 2 75,000 1,50,000 4. Store-keeper 1 4000 4000
stitch machine
6. Double Needle feed 1 100,000 1,00,000 5. Clerk/Typist 2 3,000 6,000
of the arm machine
6. Electrician 1 3,000 3,000
7. Button holing 1 1,45,000 1,45,000
machine 7. Peons/Watchman 2 2500 5000
8. Button stitching 1 75,000 75,000 Total 45,000
machine
Production Staff
9. Hot fusing press 1 65,000 65,000
1. Production Manager 1 10,000 10,000
10. Garment washing 1 1,45,000 1,45,000
machine 25 kg. 2. Supervisors 2 5000 10,000
capacity
3. Cutting Master 1 8000 8000
11. Hydroextractor 1 70,000 70,000
25 kg. capacity 4. Skilled Workers 55 3,500 192500
12. Tumbler dryer 1 1,40,000 1,40,000 5. Pressman 4 2,500 10,000
25 kg.capacity
6. Unskilled workers 6 2250 13500
13. Flat bed steam 4 75,000 3,00,000
iron press with 7. Lab. Attendant 1 4500 4500
vacuum table
Total 2,48,500
14. Zig zag embroidery 1 45,000 45,000
machine Perquisites @20% 58,700
15. Generator set 30KVA 1 1,00,000 1,00,000
G.Total 3,52,200
16. Washing room 4 10,000 40,000
trolleys (ii) Raw Material (per month)
17. Testing equipments LS 55,000 55,000 Sl. Description Qty. Rate/ Amount
(ends/pick checker, No. Unit(Rs.) (In Rs.)
electronic balance,
laundrometer etc.) 1. Cotton fabric 19000 60 11,40,000
shirts (mtrs.)
Total 25,50,000
2. Blended fabric 12000 125 15,00,000
(iii) Other Fixed Assets (Rs.) for trousers (mtrs.)
(a) Erection and installation 2,61,500 3. Trims and 15000 12 1,80,000
(b) Office furniture 40,000 embellishments (Nos.)
(c) Pre-operative expenses 30,000 4. Sewing thread 15000 3 45,000
(mtrs.)
Total 3,31,500
5. Washing detergents LS 3,000
Total Fixed Capital 28,81,500
6. Packing material 15000 3 45,000
(Nos.)
B. Working Capital (per month)
Total 29,13,000
(i) Staff and Labour Wages
Sl. Designation No. Rate Amount (iii) Utilities (per month) (Rs.)
No. (In Rs.) (In Rs.) Electricity 25,000
1. Marketing Manager 1 10,000 10,000 Water Charges 2,000
2. Sales Representative 2 6,000 12,000 Fuel for generator 5,000
3. Accounts Officer 1 5,000 5,000 Total 32,000
48 G ENTS READYMADE GARMENTS
(iv) Other Contingent Expenses (per month) (Rs.) (5) Rate of Return on Investment 28%
(Net Profit/Total Capital Investment)
(a) Advertisement and publicity 3,000
(b) Postage/Stationery 1,000 (6) Break-even Point
(c) Repair and maintenance 10,896 Fixed Cost (Rs.)
(d) Transport/travelling charges 3,000 Depreciation 314250
(e) Insurance 1,000 Interest on capital investment 19,09150
(f) Telephone 2,000 40% of wages of staff and labour 16,90,560
(g) Miscellaneous expenses 2,000 40% of other expenses 105100
Total 22,896 Insurance 12,000
(v) Total Recurring Expenses Rs. 33,20,096 Total 40,31,060
(per month)
B.E.P. = FC × 100
(vi) Total Working Capital for 3 Rs. 99,60,288 FC+profit
months
= 4031060 × 100
C. Total Capital Investment 4031060+383545
= 51%
(i) Land and building Rs. 7,95,000
(ii) Machinery and equipment Rs. 28,81,500
Addresses of Machinery and
(iii) Working capital for 3 months Rs. 99,60,288 Equipment Suppliers
Total Rs. 1,36,36,788
1. M/s. Paras Special Machine Co.
MACHINERY UTILISATION Madhopur Kucha No. 7,
Rohan Road, Ludhiana.
Capacity utilisation is considered as
2. M/s. Vijay Sewing (P) Ltd.
75% of installed capacity.
17-D, Everest House,
FINANCIAL ANALYSIS 46-C, Chowringhee Road, Kolkata.
3. M/s. Industrial Machines Pvt. Ltd.
(1) Cost of Production (per year) (Rs.) 1/23 B, Asaf Ali Road, New Delhi-2
Recurring expenses 3,98,41,150 4. M/s. Apparel and leather
Depreciation on building @ 5% 33,750 Techniques Pvt. Ltd.
Depreciation on machinery @ 10% 2,61,500 Kaikondanahalli,Sarjapur Road,
Depreciation on office furniture 19000 Near Bellaandur Gate, Bangalore-35.
and other fixed assets @ 20% 5. M/s. Industrial Sewing Systems
Interest on total investment @ 14% 19,09,150 30, Ramakrishna Street, North
Total 42,064550 Usman Road, T. Nagar, Chennai.
(2) Turnover (per year) (Sales)
Raw Material Suppliers
Pcs. Rate/Pc. Amount(Rs.)
1. M/s. Vardhman Threads
Gents shirts 90000 210 1,89,00,000
Mahavir Spinning Mills Ltd.
Gents trousers 90000 300 2,70,00,000 Chandigarh Road,
Total 4,59,00,000 Ludhiana-141001.
(3) Net Profit (per year) Rs. 38,35,450
2. M/s. Powerloom Cloth
Manufacturing Centre
(4) Net Profit Ratio (Net profit/Turnover 8.30%
per year) Erode, Bhiwandi, Mumbai, Surat etc.
