Profile No.
: 05 NIC Code: 13924
BED LINEN
1. INTRODUCTION:
Bed Linen comprises of articles made out of fabric and used in bed like bed sheets &
pillow covers (also known as Pillowcase). Bed sheets are used for spreading on the bed.
Sometimes two bed sheets are stitched together to form a sandwich sheet called Dohar.
Such a sheet becomes thicker, traps air inside and works as a very light blanket.
However, usage of Dohar in India is limited to certain States only.
2. PRODUCT & ITS APPLICATION:
Bed sheets come in different weaves, sizes, colors and prints. The major classification is
Single bed sheet and Double bed sheet. Various sizes are available in double bed sheet
like Regular, Queen, King etc. matching the size of bed and mattress. Hospitals and
Hotels usually use white bed sheets and pillow covers. Single bed sheets come in one
size only although single beds used by Hotels, Hospitals, Hostels and kids vary in size.
Bed sheets are used for spreading on the mattress to give the bed a better look and to
protect the mattress. Similarly a pillow cover enhances beauty of the pillow and also
protects it from soiling over long run. Bed sheets and pillow covers are made out of
woven fabric of cotton or blended fibers. Cotton fabric is preferred in warm weather
because of its moisture absorption property although it is expensive compared to
blended fabrics and also gets more wrinkles and therefore frequent washing and ironing.
3. DESIRED QUALIFICATIONS FOR PROMOTER:
Graduate in any discipline.
4. INDUSTRY OUTLOOK & TRENDS:
Bed linen is a necessity. Continuous rise in disposable income of the families leads to a
robust demand for such products and the trend is bound to continue for several years.
5. MARKET POTENTIAL AND MARKETING ISSUES, IF ANY:
Bed sheets and pillow covers of different cost and quality are used in each household.
Growing awareness about cleanliness and hygiene has also led to higher demand for
clean and crisp bed linen in Hospitals, Railways, Hotels, Hostels and such other
institutional buyers. Improving income levels has also fueled people’s aspiration to buy
quality bed linen to enhance their home décor. The market is growing continuously in
line with population & income levels.
6. RAW MATERIAL REQUIREMENTS:
The main raw material is cotton or blended fabric of varying quality which is easily
available in grey and dyed forms. Printed fabric is also used in some made ups. Fabric
quality is generally expresses in terms of Thread Count (TC) which means a sum total of
warp and weft threads in one square inch of the fabric. Although general perception is
higher the TC better the quality, it may not always be true because quality of each
thread or yarn also matters quite a bit which in turn depends on quality of the fiber used
in yarn. Fabrics of multiple thread counts, colors and prints are easily available
throughout India. Since a double bed sheet is 9 to 10 feet wide, fabric of wide width
(120”) is normally used in bed linen.
7. MANUFACTURING PROCESS:
The fabric purchased in roll form is spread in layers on the cutting table. Patterns of
various bed sheets or pillow covers made out of card board or plywood or metal are laid
on the fabric in such a way that wastage of fabric is minimized. Several layers of fabric
are then cut through vertical motorized blade. Bed sheets and pillow covers are stitched
in assembly line manner wherein each machine operator completes only a part of the
product. The stitching starts on the 1 st machine and gets completed at the last stage
where the product is inspected for quality defects if any. Sometimes pillow covers are
sent for further work like embroidery, special patch-work, border etc. Products are finally
cleaned of loose yarn or dirt and packed in plastic bags as per customer requirements.
Bed linen is sold in sets as well as individually.
8. MANPOWER REQUIREMENT:
The enterprise shall need 39 employees as detailed below:
Sr. No. Designation of Employees Monthly Number of Annual cost
Salary ₹ employees required ₹. in lacs
1 Machine Operators 12,000 23 33.12
2 Helpers 8,000 12 11.52
3 Production supervisor 25,000 1 3.00
4 Accounts Executive 15,000 1 1.80
5 Stores Assistant 12,000 1 1.44
6 Office Boy 8,000 1 0.96
Total 39 51.84
9. IMPLEMENTATION SCHEDULE:
The project can be implemented in 3 months as shown below:
Time Required
Sr. No. Activity
(in months)
1 Acquisition of premises 1
2 Construction (if applicable) -
3 Procurement & installation of Plant & Machinery 2
4 Arrangement of Finance 2
5 Recruitment of required manpower 2
Total time required (some activities shall run concurrently) 3
10. COST OF PROJECT:
Detailed cost of project is shown below:
Sr. No. Particulars ₹ in Lacs
1 Land -
2 Building -
3 Plant & Machinery 18.35
4 Furniture, Electrical Installations 5.50
Other Assets including Preliminary / Pre-operative
5 1.50
expenses
6 Margin for Working Capital 12.01
Total 37.36
11. MEANS OF FINANCE:
Bank term loans are assumed @ 60% of fixed assets. The proposed funding pattern is as
under:
Sr. No. Particulars ₹ in Lacs
1 Promoter's contribution 22.15
2 Bank Finance 15.21
Total 37.36
12. WORKING CAPITAL CALCULATION:
The project requires working capital of ₹ 25.38 lacs as detailed below:
Sr. No. Particulars Gross Amt Margin % Margin Amt Bank Finance
1 Inventories 19.59 40% 7.84 11.75
2 Receivables 16.41 40% 6.56 9.84
3 Overheads 3.10 100% 3.10 -
4 Creditors -13.71 40% -5.48 -8.23
Total 25.38 12.01 13.37
13. LIST OF MACHINERY REQUIRED AND THEIR MANUFACTURERS
Value
Sr. No. Particulars UOM Qtty Rate (₹)
(₹ in Lacs)
Plan & Machinery / equipments
a) Main Machinery
i. Single Needle Machine Nos. 10.00 60,000 6.00
ii. Double Needle Machine Nos. 5.00 75,000 3.75
iii. Over-lock Machine Nos. 4.00 40,000 1.60
iv Cutting Table & machine Nos. 2.00 3,00,000 6.00
v. Embroidery machine Nos. 2.00 50,000 1.00
sub-total Plant & Machinery 18.35
Furniture / Electrical
installations
a) Inspection tables Nos. 2.00 50,000 1.00
b) Office & Store furniture LS 1.00 1,50,000 1.50
c) Desktop computer & printer Nos. 2.00 50,000 1.00
d) Storage system LS 1.00 2,00,000 2.00
sub total 5.50
Other Assets
a) Rent Deposits 2.00 75,000 1.50
sub-total Other Assets 1.50
Total 25.35
Single Needle and Double Needle stitching machines are available from following
suppliers. They have offices across several cities in India. There may also be other local
machinery manufacturers offering alternate machines of various makes and models.
IIGM Private Limited
Springdale No. 51,
Residency Road, 3rd cross,
Bangalore 560025
[Link]
Juki India Private Ltd
1090/I, Ground Floor,
18th Cross, Sector III,
HSR Layout,
Bangalore 560102
[Link]
Brother International (India) Pvt Ltd
Unit No.408, 215, Atrium B-Wing,
4th floor, Opp. Sangam Cinema,
Andheri Kurla Road, Andheri (East),
Mumbai 400093
[Link]
14. PROFITABILITY CALCULATIONS:
Sr. No. Particulars UOM Year-1 Year-2 Year-3 Year-4 Year-5
1 Capacity Utilization % 60% 70% 80% 90% 100%
2 Sales ₹ in Lacs 198.14 231.16 264.18 297.20 330.23
Raw Materials & Other
3 ₹ in Lacs 177.05 206.56 236.07 265.58 295.09
direct inputs
4 Gross Margin ₹ in Lacs 21.08 24.60 28.11 31.62 35.14
5 Overheads except interest ₹ in Lacs 18.58 18.58 18.58 18.58 18.58
6 Interest ₹ in Lacs 3.41 3.41 3.41 3.41 3.41
7 Depreciation ₹ in Lacs 1.87 1.87 1.87 1.87 1.87
8 Net Profit before tax ₹ in Lacs -2.78 0.74 4.25 7.76 11.28
The above calculations are based on assumed unit sales price varying from ₹ 300 to ₹
500 for various products. The key raw material is assumed at a cost range of ₹ 120 to ₹
130 per meter. Electricity tariff is assumed at ₹ 8 per KwH.
15. BREAKEVEN ANALYSIS:
The project shall reach cash break-even at 62.58% of projected capacity as detailed
below:
Sr. No. Particulars UOM Value
1 Sales Realization ₹. In Lacs 330.23
2 Variable costs ₹. In Lacs 295.09
3 Fixed costs incl. interest ₹. In Lacs 21.99
4 BEP = FC/SR-VC x 100 = % of sales 62.58%
16. STATUTORY/ GOVERNMENT APPROVALS
The project does not require any specific government approval. Registration with
MSME is optional. An Entrepreneur may be required to obtain Shops & Establishment
Registration and Professional Tax registration by local Municipal authorities.
Registration under Factories Act, Provident Fund Act and ESI provisions would be
required depending upon the number of employees, the location, the level of
mechanization and the age of the enterprise. Entrepreneur may contact State
Pollution Control Board where ever it is applicable.
17. BACKWARD AND FORWARD INTEGRATION:
As the machines used in the project are versatile, the Entrepreneur can also consider
manufacture of other articles like bags, wall hangings and garments etc. depending
on opportunities in the market he / she is familiar with.
18. TRAINING CENTERS/COURSES
Udyamimitra portal ( link : [Link] ) can also be accessed for
handholding services viz. application filling / project report preparation, EDP, financial
Training, Skill Development, mentoring etc.
Entrepreneurship program helps to run business successfully is also available from
Institutes like Entrepreneurship Development Institute of India (EDII) and its
affiliates all over India.
Disclaimer:
Only few machine manufacturers are mentioned in the profile, although many
machine manufacturers are available in the market. The addresses given for
machinery manufacturers have been taken from reliable sources, to the best of
knowledge and contacts. However, no responsibility is admitted, in case any
inadvertent error or incorrectness is noticed therein. Further the same have been
given by way of information only and do not carry any recommendation.
