How to Start Garment Manufacturing Business in India 2021 – Best Step by Step Guide

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Starting a Garment Manufacturing Business in India seems a very big deal by just thinking, hence, it is so, however having proper knowledge of business ideas and strategies makes it easy for a startup.

The clothing business in India is one of the trending businesses which almost everyone wants to do, and it can be run in many phases.

Indeed, the garment business industry is too wide with many modules, if you want to start any garment business in India, you must have a proper strategy before starting, which I am going to explain to you in this blog.

Select The Garment Type

First, you need to choose the product with which you want to start manufacturing business for garments that means you want to start manufacturing of Men’s Garment Manufacturing, Women’s Garment Manufacturing, or Kids’ Garment Manufacturing.

It’s too necessary to decide the product type because you will have to hire experts for making the garment.

If you plan for starting multiple garment type manufacturing, you may face some unavoidable chaos which may put you in fix.

So, it’s too mandatory to choose the type of product first with proper market research and analysis.

Choose The Proper Business Name

Choosing the business name for a garment manufacturing business in India

Business Name is the first impression of your business which impacts the first impression on the new customer’s mind.

You should choose the appropriate and cheezy name for your business which forces the customer to interact with you once.

There are many business name generators with the use of them you can generate an attractive business name.

Registering a Business Or Company

The business registration or company registration for the business makes your business long-lasting and safe.

Before introducing your manufacturing business of garments in India, it’s quite recommended you register as a private limited company or one-person company with the business name or brand name.

Set The Budget With Resources

The manufacturing setup of the garment business is a big deal, you need to set the budget first, how much cost will you have to arrange for starting the garment manufacturing business.

There are many modules that you will have to set to start the business of garment manufacturing, like space, equipment, staff, experts, electricity bill, and other recurring expenses.

Buy or Rent The Space For Establishing The Manufacturing Unit

You must have enough space to establish the unit for the garment business as it requires more space, so I suggest you buy or rent a space in the rural area or in those are where you can have more space at a low rate.

The reason I am not telling you to focus on the location is that you will not have to grab the walk-in customers, because you are not a retailer, so you are not dependent on the retailed customers.

Suppose you are getting the required land in Rs. 20,000 monthly in the urban area, the exact space of land you will be getting in is just 8,000 – 12,000 rupees in the outside area.

Spending more investment than a required amount is not a good habit for sustaining the business.

Make The Quotation Of Required Equipment

The Garment Making Business Idea requires some technological equipment to produce the garments in a bulk with the manpower as well.

The requirement of garment-producing equipment depends on which type of garment you are making, i.e. it’s denim, or Shirts and T-shirts, sarees, Suites, or any other else.

You can have two options to bring the equipment, one is to purchase by physically visit the manufacturers of garment making machines and the second one is to order it online by B2B sites or Ecommerce sites.

If you are going to order them online, the recommended source is to order on B2B sites because here you can order it from the manufacturer directly which will save you too much cost.

Hire The Manpower

Your equipment will do almost all the work but still, you will need the manpower for 100% accuracy, because machines can not provide you as much accuracy as humans.

For example, you can use the washing machines for washing and drying the clothes but you will need manpower to manage the process.

Likely, the folding and packing process can not be done by machine and after cutting and shaping the garments, you will need the manpower for combining them accordingly, so manpower is a must.

Import of Fabric For Garment Making Business

Fabric is the first, mandatory, and basic raw material of the garment manufacturing business and for that, you must have the merchant or supplier of the best fabric for the garment.

One more thing you have to follow is that you will have to purchase the best fabric material at the lowest rate for your business of garment production.

The reason is that this is the strongest point where you can increase your profit margin for your business because you will not have control of employee salary, electricity bill, or rent.

The best source of importing the fabric for your garment manufacturing business is in Bangladesh, where you will be getting the best quality fabric at the lowest rate due to the currency rate variance.

Pattern Your Brand For Tagging

It’s too mandatory to keep attention that anyone is not using your brand name as their product’s brand because the quality of your product and his or her will not the same.

If another garment manufacturer is providing low quality and by chance, the common customer of yours and his will have the same product in hand, he can blame you that you are providing the low-quality material garment.

So, it’s advisable and recommended to pattern your brand by following the required steps and process and tag your brand name on the garment.

Focus on Packing Pattern

Don’t hesitate if you have to spend 1 or 2 rupees extra to make the packing of the garment because it is the key point for your fourth customer, i.e. the retail customer.

The retail customer who is purchasing your garment from the retailers is your last customer but your business is being run by him, so keep the double attention on the packing and make it attractive.

Converting The Business Into The Brand

Convert your Business in the Brand

Running a business as it is and as it was, carries you nowhere, if you do not convert your business into a brand, it will reflect the same results that you are receiving now.

By running the business with good strategies, providing the best services and quality, with the passage of time you can convert your business into a brand.

For example, if you want to buy a surface cleaner, you will prefer Dettol because Dettol has spread its identity as the best cleaner liquid by its quality, and today it has become a brand.

Similarly, you have to work constantly with providing the best quality and service to the customers which will convert your business into a brand.

Registration with B2B sites

If you were running the Retail Garment Business, it’s quite easy to grab the customer and add them to the customer list, however, you are running the Manufacturing of Garment Business, you need big and potential customers.

You have many options to find the customers by yourself, but by following that strategy, you will be covering only the local customers like wholesalers and retailers.

The retailers will not be able to give you a big order like 1000 pieces or 2000 pieces or more because they are relying on the retail customers who purchase just 2-3 pieces from them.

Considering the nature and size of your business, you are supposed to catch the huge requirement holding customers like 1500 – 2000 pieces.

By considering the requirement of selling as a garment manufacturer, you have to best option to register your business with B2B (Business to Business) sites.

They will find the customer on behalf of you and as long as they would get the prospect for you, they will be forwarding it to you on the spot.

Later on, it would be your responsibility how you make deal with them, and in the reward of supplying the customers, B2B will make you a minimal charges.

B2B sites offer you various packages according to the service, in which they offer you to rank your business in the top 3, creating a separate subdomain (website insider their portal), for you, various numbers of queries, etc…

India Mart, TradeIndia are the top 2 B2B in India and you can talk with their executives for more information, once you will visit their websites, they will send an executive to your working place according to your preference of availability of time.

Payment Security

B2B sites are providing you the payment security from the customer and they are providing the security the customer for the delivery from you.

The most and biggest benefit of tieing up with B2B sites is that your payment will be 100% secured because they are taking full responsibility for payment and forwarding, you the genuine customers.

B2B sites will be collecting the payment from the customer and garment bulk from you and will be exchanging it with each other at the same time, as a result, you and the customer, both will be safe and satisfied.

Identify The Customers And Source of The Customers

You will be coming in touch with various kinds of customers, however, it’s your responsibility to identify the potential and genuine customers and filter them.

A genuine customer will never negotiate in rate if you are providing the quality according to the rate that you are charging.

If the customer holds the proper knowledge of the garment, will accept the rate that you will be offering, you will have to take care that you would not lose that customer.

Inventory Management

Inventory Management for business

Inventory Management is mandatory is a must and mandatory for each business, because it indicates how much quantity should be going be to product tomorrow.

If you do not manage the inventory properly, you will not have a proper idea about the quantity of fabric that should be ordered and the number of pieces that should be manufactured.

There are many mobile and pc applications that you can utilize to manage the inventory of your business of garment manufacturing.

Investment

I have covered almost all expenses including one-time investment and recurring expenditures, and it depends on which type of business you are going to start, like, men’s garments, or women’s garments, or kids’ garments.

Each module contains multiple sub-modules, like for men, it contains shirts, T-Shirts, Jeans, etc… women garments contains saree, dresses, Kurtis, leggings, etc…

So, basically, the amount of investment depends on which business of manufacturing of garment you are going to start.

Business Loan Preferences

The garment manufacturing business idea requires a huge investment that may not be affordable for you in one go, and as a solution to that, you can apply for the business loan that is offered by the government as well.

There are multiple types of loans are being provided by the government like Startup loans, business enhancement loans, and other types of loans.

You are supposed to inquire in your nearby bank about the process and criteria in terms to get the approval of the business loan.

Conclusion on How to Start Garment Manufacturing Business in India

Starting of Manufacturing business in India asks for too many resources, teamwork, and micro-level strategy.

It’s quite sensitive because it needs huge investment in the six figures amount, so do not take it lightly, make the proper strategy, do the research first that which will be the best product for you and then move further.

One wrong step has the strength to ruin the entire business, do not leave any loophole anywhere that can have a little possibility to harm you.

Many Startup Garment Manufacturing gets failed due to not managing the inventory properly, not attending to the customers nicely, and not understanding the requirements of the customers.

Service and Quality are the two main pillars of every business on the planet that you should not compromise with.