Major Processes in Textile & Garment ManufacturingSN Processes

1 Spinning

BlowroomCardingDrawing FrameCombing (Comber Frame)DrawingRoving ManufacturingRing Spinning

2 Weaving

Yarn from Spinning SectionDoubling and TwistingWindingCreelingWarpingSizingWinding on Weavers BeamWeaving

3 Dyeing / Printing & Finishing

Inspection of Grey ClothStitchingCroppingBrushingSingeingDesizingScouringBleachingSouringWashingDryingMercerizingDyeing / PrintingAftertreatmentFinishingInspectionPackingBaling

4 Garments Manufacturing

Design / SketchPattern DesignSample MakingProduction PatternGradingMarker MakingSpreadingCuttingSorting / BundlingSewing / AssemblingInspectionPressing / FinishingFinal InspectionPackingDespatch

About 65-70% cost of the garment is the cost of the fabric and hence it is very crucial to get the right cost of the fabric from fabric manufacturers and suppliers.

A large variety of fabrics are used in the export/domestic market for different end uses. Costing depends a lot on quantity and order received. Buyers send specifications and the fabric has to be developed as per the design trend. Garment manufacturers or merchandiser source fabrics with specific construction and characteristics in different quantities for different end uses. Garment manufacturers struggle to get the best possible cost of the fabric. It would be interesting to know the important points to consider for getting a comprehensive understanding of costing. Costing seems to be a complex exercise as it depends on a number of variables. Costs are calculated taking into consideration the complete production process and machinery involved.

Introduction:

Cost typically can be defined as the economic value placed upon the resources consumed to make a product. Costing is the process of estimating and then determining the total cost of producing a garment, including the cost of materials, labour and  transportation as well as the general expenses of the operating the business. Merchandiser has to have thorough understanding of costing. There are several reasons where cost plays the vital role. Merchandiser does the costing mainly for two purposes.

Pricing of the garment: If manufacturer is selling garments directly to the end consumers, then it’s very important to estimate the cost very accurately. Pricing of the garment can be done by manufacturing cost added with estimated mark-up or profit % to it. Order acceptance: If manufacturer is exporting the garment, the costing is base of the business. On the basis of cost of manufacturing including wages, operating expenses and transportation and freight charges, and profit margin of company, merchandiser claims the cost of unit garment. With this cost merchandiser negotiates with buyer and decides whether to accept the order or not.

In order to do perfect garment costing, one must know about all the activities including purchase of fabrics, sewing, packing, transport, overheads, etc. and also about their costs, procedures, advantages and risk factors. Merchandiser must be aware that there are always fluctuations in the costs of raw materials and accessories, charges of knitting, processing, finishing, sewing and packing, charges of transport and conveyance. The method of making costing will vary from style to style, as there are many different styles in garments.

Components of cost of garment:

In continuation of the other functions Production merchandiser is also required to do the costing of the product. The costing is done by keeping in mind the cost of the various raw materials, operating cost of the company, the competition and expected profit of the organization. At the same time, it is necessary to keep in mind the buyers costing expectations. The components on which cost of garment depends is as follows:

Fabric Trims

Cut Make & Trim charges

Value added services: printing, embroidery, washing, applique

Testing of the garment

Quality

Transportation and logistics cost

Profit of the manufacturing organization

All these components of garment cost depend upon certain parameters which drastically affects above cost parameters. These parameters plays vital role when production merchandiser does the costing of garment; as these parameters are very dynamic and keep fluctuating frequently.

The parameters that affect the garment cost mostly are; Unit of Measurement, MOQ, Incoterm decided between raw material vendor and garment manufacturer, order quantity, etc.

Conclusion

Production merchandiser is responsible for doing the costing; hence knowledge of costing is must for merchandiser. Apart from costing knowledge merchandiser must be aware of fluctuation of cost of different components of garment, time to time. The costing is very dynamic process; at international level negotiation is done only on cost of production or most popularly known FOB of the garment. Hence, merchandiser should be very careful while negotiating the cost of garment with the buyer. Sourcing is common practice globally in garment business, production merchandiser is playing buyers role for fabric/ trim manufacture on the other hand he/she plays suppliers role for garment buyer. Production merchandiser must take care of both roles, when it comes to cost as well.

How to Calculate Raw Material Cost for Garments?Material cost is the major cost component of a garment manufacturing costs. A correct cost calculation method will give you better projection of garment cost for a style. In this article how to calculate direct materials cost have been explained in details. Raw materials required for making a garment is sourced from suppliers. Main materials are like fabric, labels, sewing thread, hang tags, trims etc. So to have correct material cost you must have price knowledge of each item.

Steps used for material costing estimation are – Preparation of material requirement sheet

Material price listing

Preparation of material cost sheet

Prepare material requirement sheetList down all items required and calculate consumption per unit for all materials to be used in garments.

For an example, let you are going calculate material cost for a polo shirt. To make polo you need knitted fabric – Single jersey/pique, cuff and collar rib. Sourcing of knitted fabric can be done three ways

- You can directly purchased dyed fabric or- You can source yarn, knit fabric and process the knitted fabric as per your requirement or

- Purchase dyed yarn and knit.

Let you will purchase yarn and get knitting and dyeing processes done by job workers. To go through this process collect the pricing list of different types of yarn (or at least for the yarn that you will purchase for your product), knitting cost, knitting loss%, dyeing cost per kg and process loss% from suppliers.

Prepare material requirement sheetList down all items required and calculate consumption per unit for all materials to be used in garments.

For an example, let you are going calculate material cost for a polo shirt. To make polo you need knitted fabric – Single jersey/pique, cuff and collar rib. Sourcing of knitted fabric can be done three ways

- You can directly purchased dyed fabric or- You can source yarn, knit fabric and process the knitted fabric as per your requirement or

- Purchase dyed yarn and knit.

Let you will purchase yarn and get knitting and dyeing processes done by job workers. To go through this process collect the pricing list of different types of yarn (or at least for the yarn that you will purchase for your product), knitting cost, knitting loss%, dyeing cost per kg and process loss% from suppliers.

Material Price listing Collect material price quote for all the material you need to purchase from different vendors. Prepare database for the current market price of raw materials.

For example here is one Price List

Yarn: The costs for different yarns are –

20s Combed – Rs.105/kg

30s Combed – Rs. 115/kg

50s Combed – Rs.140-145/kg

2/60s Combed – Rs.200/Kg

2/60s dyed yarn – Rs.420/Kg dark shade

Knitting cost:

For Single Jersey – Rs.15/kg

For Rib - Rs.18/kg

For Interlock - Rs. 30-35/kg

Knitting loss: 2%

Dyeing cost: Rs. 80/kg for dark shades

Process loss (Dyeing): 6%

Fabric cost: Ready to use fabric cost is calculated using basic calculation as shown in the following table. Cost of the knits fabric is represented in price per Kg.

Shell Fabric Collar/Cuff

Fabric Description 2/60s single jersey 2/60s rib

Yarn cost (Rs.) 200.00 200.00

Knitting cost (Rs.) 18.00 20.00

Knitting loss (2%) 4.36 4.40

Processing cost (Dyeing)

(Rs.)

80.00 80.00

Processing loss (6%) (Rs.) 18.14 18.26

Cost per Kg Rs. 320.50 Rs. 322.66

Fabric Consumption: Next step is to find requirement of fabric for the polo. Suppose for this polo shirt you need shell fabric 0.32 Kg and Ribs for cuff and collar 0.080 Kg. Read how to calculate fabric consumption for a knitted garment to know fabric consumption calculation.

Prepare material Cost Sheet Once you find fabric cost and fabric consumption prepare material cost sheet including all other material required to make a garment ready for sale. An example of material cost sheet has been shown below.

Items Consumption UOM* Rate (Rs.)

Amount (Rs.)

Remarks

1 2/60s single jersey

0.32 KGs 320.5 102.56

2 Cuff and collar ribs

0.08 KGs 322.66 25.81

3 Sewing thread 159 Meters 4 approx.

4 Buttons 3 Gross 2 approx.

5 Main label 1 Unit 1 approx.

6 Care label 1 Unit 1 approx.

7 Hang Tags 1 Unit 3 approx.

8 Price Tags 1 Unit 2 approx.

9 Poly bags 1 Unit 1 approx.

10 Kimble 1 Unit 0.5 approx.

Total Cost 142.87

*UOM - Unit of measure

So, Total fabric cost is Rs. 128.37 and including other material costs total cost of the material for making this Polo Rs. 142.87

Now for each item merchants generally purchased extra quantity of inventory (from 2% to 7%) as buffer. This excess cost due to extra purchase of material is added into the garment costing.

About Morarjee Textiles Limited:

Morarjee is a leading player in the premium shirting fabric business and high fashion printed fabric business. It makes premium voiles and high fashion printed fabrics for the Middle East, Far East, North African and the European markets. The company has integrated manufacturing plant at Nagpur in Maharashtra. It counts most of the popular international and domestic brands as it clients, across 20 coutries. Dunhill, Zara, Esprit, Hugo Boss, Next, Paul Smith and Zodiac are some of its customers. In the domestic market Morarjee caters to popular brands like Louis Philippe, Van Huesen and Zodiac. Morarjee has a 49% stake in Just Textiles Ltd. which is currently engaged in processing various textile fabrics installed at its factory in Ambernath, Mumbai.

About Integra Apparels and Textiles Pvt Ltd:

Integra, a subsidiary of Morarjee Textiles was set up up a team of professionals with a proven track record in the apparel industry. Specialising in woven tops, the manufacturing facilities is equipped to handle basic woven shirts for men to complicated embellished dress for women.

Integra offers valued-added products like a wide range of washes, embroidery and panel prints using the latest technology. It counts popular international brands like Massimo Dutti, Paul Smith, Esprit, NEXT, Dockers and Levis amongst others as its key customers.

History:

Morarjee is a name synonymous with fashion. With over a hundred years of experience and modern integrated manufacturing facilities, Morarjee makes cutting edge fashion a reality. It has technical collaboration with Swiss and Japanese companies that sets it’s apart in the industry.

Morarjee is part of the Ashok Piramal Group, a diversified and leading business group in India.

The Morarjee Goculdas Spinning & Weaving Co. Ltd. is the oldest textile company in India, established as early as 1871. It is among the first five companies to be listed on the Indian stock exchanges.

In 1935, the mill was acquired by Piramal Chaturbhuj, heralding a new era of growth and prosperity. Since inception, quality and service were the hallmark of the company. Riding on these factors, the company has survived the ups and downs in the textile sector.

In the early 90’s the biggest challenge came from World War I. Not only did the mill survive, it came out much stronger. In 1940, the mill joined the Swadeshi movement and set up a Khaki department. It won special acclaim from Mahatma Gandhi for this. In 1942 – the Viceroy awarded a gold medal to the company for the khaki drill. The 1950’s was the period of unparalleled growth and expansion. The dye house was modernized with the installation of a continuous open width boiling & bleaching plant, a modern impregnating unit & a steaming J. Box. This was to improve the fastness of mineral khaki for which Morarjee Mills have been known for.

Next on the cards was acquisition. Morarjee took over the Sayaji Mills located in Mumbai in 1981 and transformed it from an obsolete loss making unit to a highly profitable modern textile mill.

Continuous up -of technology and research and development of products has transformed Morarjee into a leading player in the fabric business. Most of the leading global and domestic players are its clients today.

Shirting:

Morajee is the first company in India to have successfully entered a joint venture with an Italian company for setting up a yarn dyed shirting fabric unit at Nagpur, India.

The division specializes in color woven high end premium shirtings with fine yarn counts upto 180/2. The products are manufactured using the latest dyeing and finishing facilities and are in accordance with the Oeko-tex standard as well as national and international standards of full quality control assurance, at all times. This division is also equipped with advanced equipment for testing yarn, fabric and chemicals in accordance with international testing standards.

Today this division boasts of a growing customer base spread across the globe.

Fashion:

Satin, cambric, poplin, lawn and silk are just some of the exciting high fashion printed fabrics manufactured by this division. Subtle bi-prints, small geometric patterns, bold and beautiful floral prints intended for all seasons are the essence of this division. You can look forward to oriental prints as well as ethnic patterns that breathe the spirit of the old world. Our designs satiates the fashion appetite of both men and women.

Voiles:

Morarjee caters to the Middle East and African Subcontinent along with the conversion centers in Europe and Far East for its traditional ensembles.

Morarjee imports the best of raw material for spinning its fine count yarns and has mastered the art of giving special finishes to products through A.G.Cilander of Switzerland, producing world-class cotton rich fabrics for these regions.

Our designers work on African & Middle Eastern designs to create thobes best suited for the African palate. Constant innovation breathes a new life into this traditional garment.

Guthra:

Morarjee is one of the largest suppliers of Guthra (Arab headgear). Our voiles for the guthra are elegant and pleasing to the eye. The guthra, a square head cloth, is worn over the kuffiyah (skull cap). It is folded diagonally to form a triangle, and held in place by a coil of black wool called the igaal. They are made from extra long staple Giza Cotton from Egypt and Pima cotton sourced from USA.

Manufacturing Facilities – Fabric:

Morarjee has an integrated manufacturing plant at Nagpur in Central India. The plant is equipped to produce premium shirting and high fashion printed fabric for clients across the globe. To cater to the changing demand and requirements of the fashion industry, Morarjee believes in investing in product development and technology up-gradation.

In the last decades, two new fabric manufacturing units have been set up in Nagpur. These are supported by state- of-the-art Design Studios, to keep abreast of the trends in the industry. The company today is focusing on premium and high value niche product segment and has two divisions - Yarn dyed shirting division and Printing Division for voile, satin, poplin and other high-end products.

Manufacturing Facilities – Garments:

To meet the growing demand for quality shirts and dresses, Morarjee established a subsidiary company; Integra Apparel and Textiles Pvt. Ltd, in Bangalore, India. Integra specializes in products ranging from woven shirts for men to intricately embellished dresses for women. The other products on offer include different washes, embroideries and panel prints that employ the latest techniques.

Global Clientele:

Morarjee's competitive advantage lies in its innovative design, product development and flexible service offering.Its customer base is spread across 20 countries around the globe and is growing. Today, it offers premium cotton shirting fabrics to most of the leading Indian and International brands. It makes premium voiles and high fashion printed fabrics for the Middle East, Far East, North African and European markets.