KNIT GARMENTS AND COSTING,MERCHANDISING

 KNIT GARMENTS

PREFACE

As everybody knows, the textile industry is one of the best profitable and interesting trade among all the trades and businesses in the world. Especially the need for knit garments around the world is everlasting. It is possible to make the knit garments with a minimum of 90 GSM fabrics (Grams per Square Metre) for summer seasons and with a maximum of 600 GSM fabrics for winter seasons. Also the knit garments can be made in lightweight, at the same time, with more thickness fabrics for winter seasons. Because of this special and comfort qualities, the requirement for knit garments is huge and forever. Hence manufacturing and exporting knit garments is definitely a life long profitable business.

At the same time, there is a huge competition among the exporters around the world. Hence the overseas buyers and importers would prefer to do business only with the suppliers

-          who are having their own manufacturing factories with huge production capacity,

-          who are quality conscious,

-          who are able to make prompt shipment in right time in right quality,

-          who are adopting local labour laws and code of conduct,

-          who are having thorough knowledge about the business,

-          who are reliable,

-          who are having sound financial strength and

-          who are able to supply the garments on competitive prices.

As the quota restrictions will be removed from January 2005 and due to globalisation, we expect a huge competition in all the businesses among the sellers and buyers worldwide. In these years, we have been competing within our country or region. But we will have to compete with the other countries. It will be very tough. At the same time, it is not an impossible thing. We can achieve success, if we pay more attention in knowing about the trade thoroughly.

Actually, I wanted to share my knowledge and experience with my younger brothers who are also in this same trade. That is the why I decided to give them the important hints for their easy understanding and reference. But while I was writing, I decided to write this also for others who are in this interesting trade and who is interested to know about this trade. Then I decided to write this elaborately covering all the stages of this trade in detail. Also I have explained the details in very simple and easy language so that every one who reads this book can understand easily.

I have gained all these knowledge and experience from my previous company ‘SCM International’ which is an Export House in Tirupur, India. I am always thankful to my previous employers for teaching me about this trade and for giving opportunity to work with them.

In this book, I have given the costs and costing in Indian Rupees. It is not only convenient for me, but it will help the readers to understand easily about production. The readers, other than Indians, will have to convert the costs and costing in their desired currencies. I believe that the readers will bear with me for this inconvenience.

I am very happy to bring my knowledge about this trade through this book and I feel real happiness as I am sharing the details with you. Hope all the information in this book will be useful to you all and hope you will be satisfied. I wish you all success in your business or career!

GARMENTS

There are 2 types of garments. One is Woven garments. Another is Knitted garments.

Shirts, trousers, sarees, bed spreads, blankets, towels and made ups are Woven.

T shirts, sweatshirts, undergarments, pyjamas and socks are Knits.

Woven fabrics are made in hand looms, power looms and mill made. Making woven fabrics is simple. But yarn counts, reed & picks (warp & weft), width should be considered with more care. The fabric quality is made differently by various methods of finishing and treating.

Knit fabrics are made in different kinds of knitting machines. According to the structure of fabrics, they are named in different names. The mainly used fabrics are Single Jersey, Pique, Interlock, Rib, French Rib, Flat back rib, Loop knit, Fleece, Polar fleece and Jacquards. The knit garments can be made in solid dyed or all over printed or yarn striped.

GSM

GSM is the short form of Grams per Square Metre. GSM is the very most important thing which defines the weight of the knit garments.

Garment price and quality based on many things like GSM, fabric quality, colours, finishing, prints, embroidery, style, etc. But GSM is the most important thing to be decided when confirming the prices between the sellers and buyers.

GSM is the weight of 1mtr x 1mtr fabric. It means 100cm x 100cm = 10,000 sq.cms. It can be found out by any one of the below ways.

By the weight of 100cm x 100cm fabric bit.

By the weight of 50cm x 50cm fabric bit multiplied by 4.

By the weight of 25cm x 25cm fabric bit multiplied by 16.

By the weight of 10cm x 10cm fabric bit multiplied by 100.

We must be aware that if we use the smaller size bit, we can not get the accurate GSM. The bigger size of fabric bit is better used.

If we have fabrics, then we don’t have any problem in finding the GSM, as we can cut any dimension to find GSM. But most of the times, we will have to find the GSM with the use of garments. And we will have to keep the garment for style, making and other references. Hence nowadays, round cutters are used. This system is used worldwide. With the help of this round cutter, the fabric will be cut into a small bit.

Then the GSM of the fabric can be found out by multiplying the weight of this round bit by 100. As this bit is very small and as the weight has to be multiplied by 100, the fabric has to be cut very sharply to get the exact GSM. Hence the blades of this round cutter are to be sharp and new to get the GSM exactly.

YARN

The thickness of yarn is measured as Counts. The cotton is considered as 0 counts. Yarns are made in 2’s, 4’s, 10’s, 16’s, 20’s, 24’s, 25’s, 30’s, 34’s, 36’s, 38’s, 40’s, 60’s, 80’s, 100’s, 120’s counts generally.

We can consider like this. 0’s counts are cotton. 20’s counts yarn is thicker than 24’s yarn. Likewise 30’s yarn is thicker than 34’s.

Yarn prices based on the thickness. Price of 20’s yarn is lesser than 24’s. Likewise price of 30’s yarn is lesser than 34’s yarn.

There are 2 qualities of yarn. Combed and Carded.

Combed is superior quality. During spinning, the yarn will undergo a special process called ‘Combing’. The purpose of this process is to remove the hairyness of the yarn. As the yarn is combed, the hairyness will not be there. Yarn is very much even. Hence after knitting or weaving, the fabric will be very even. Because of this extra process and because of the weight loss due to this process, the yarn price is more than Carded and yarn quality is superior than carded yarn.

Carded is inferior quality. As the above said process is not being done, the yarn will have hairyness and due to this the fabric will have unevenness.

We have to use either Combed or Carded yarn according to buyers’ requirements and suitability of price.

Yarn prices will vary from Mill to Mill as there quality standards are different. As the yarn prices are fluctuated often and as the yarn is major cost factor, we have to pay more attention in yarn quality and cost.

When we think about the raw materials for knit garments, we can understand that there is only one raw material which is, the Yarn. We must be aware that the cost of yarn covers almost 60% of garment price. The cost of yarn depends on the quality standards like dyeing absorbency, hand feel, evenness, strength, raw material, availability, etc. Hence the yarn cost based on the yarn quality.

The processing (dyeing, bleaching and finishing) results will be different according to the yarn quality. The garment quality is based on the fabric quality; the fabric quality is based on the yarn quality. Hence the garments’ quality is lying on the yarn quality.

Let us see below the approximate prices for various qualities of 100%Cotton yarns.

Approximate grey yarn prices per kg in Rs:

                               20’s        24’s         30’s          34’s           40’s

Combed                 100         120         130            140           145

Carded                    95          110         120            130           140

Melange yarn:

Melange means mixture. Melange yarn means mixture of different qualities of yarn.

There are different mélange yarns. They are Grey mélange, Ecru mélange, Bleached mélange, Flax mélange, colour mélange, etc.

Melange yarns are generally made with Cotton and Viscose fibers. According to the required percentage and colour shades, the fibers are mixed together before making into yarn.

Grey Melange, Ecru Melange, Bleached Melange are used widely. These mélange yarns are generally in the composition of 85%Cotton / 15%Viscose approximately. In these yarns, the cotton portion will be in light shade and the Viscose portion will be in dark shade.

In colour mélange yarn also cotton portion will be in light shade. In the light colour mélange, it is enough to add little percentage of Viscose. But in the dark colour mélange, higher percentage of Viscose portion to be added to get dark shades. For example, the Dark Blue colour mélange yarns will have 55%Cotton / 45%Viscose. But we have to remember that as we use colour mélange yarns with higher percentage of Viscose, the fabric made with these yarns will have higher shrinkage; also the shrinkage can not be controlled. The fabric may have very soft feel and shiny look. But we have to be sure of shrinkage, which is very important.

Hence, we have to be very cautious of the percentage or composition of Viscose. It is safer not to use mélange yarns with higher percentage of Viscose, due to higher shrinkage.

To avoid this shrinkage problem, colour mélange yarns made by 100%Cotton fibers are also used. But this is more expensive than normal colour mélange yarn with Viscose blend.

Also there is another way to solve shrinkage problem and to reduce the cost. Fabric can be made with Ecru mélange or Grey mélange and can be over dyed to required dark shades. Cost wise, there will not be big difference between colour mélange yarn and over dyeing. But by this method, we can solve the shrinkage problem.

Approximate Melange yarn prices per kg in Rs:

For Ecru Melange & Grey Melange yarns, Rs.10 to 15 to be added with above prices of Combed yarns.

For Colour Melange in Cotton / Viscose blend:

Light colours: Rs.20 to 30 to be added with above prices of Combed yarns.

Medium colours: Rs.30 to 40 to be added with above prices of Combed yarns.

Dark colours: Rs.40 to 50 to be added with above prices of Combed yarns.

For Colour Melange in 100% Cotton:

Approximately Rs.70 to  80 to be added with above prices of Combed yarns.

Dyed yarn:

For making the stripes and jacquard designs fabrics, the dyed yarn is used. Yarns are dyed by manually and by sophisticated machines. We can not expect the consistency of shades, yarn strength and quality by manual dyeing. Hence it is always advised to dye the yarns with the latest machines only.

Approximate Dyed yarn prices per kg in Rs:

Generally for yarn dyeing, only combed yarns are used.

The prices of dyed yarn are based on the counts and colour shades. For easy reference, the dyed yarn price of 30’s Medium colour will be around Rs.250 per kg. The prices for other colours will be differed according to the shades.

The prices for other counts will have differences according to the difference of grey (kora) yarn prices.

Mercerised Yarn:

This is a very special quality yarn. It is very expensive. Mercerised yarn always will be in 2 ply. It means 2 yarns of same counts have to be doubled. Let us see how this yarn is made.

2 combed yarns of same counts simultaneously will go through the high power gas lights. Due to more heat, the hairy particles of the yarn will be burnt out. Then as the continuous process, both yarns will be doubled (twisted into a single yarn). Thus the yarn will be very neat and even. This process is called Gassing. This yarn is called Gassed yarn.

This Gassed yarn is mercerized with Costic soda to get the luster and shininess. After this process, the yarn is called Mercerised yarn.

For example, two yarns of 60’s counts will be gassed and doubled. Then we get 2/60’s gassed yarn. Then after mercerizing, the yarn is called 2/60’s mercerised yarn.

The special features of Gassed Mercerised yarn are

1. Used for making very expensive special garments.
2. Luster and shininess of yarn, fabric and garments.
3. Complete evenness throughout the yarn, fabric and garments.
4. Very less shrinkage of yarn, fabric and garments.
5. Longer life of garments.

After making the fabrics with these Gassed Mercerised yarns, the fabric has to be mercerised again to get the shiny look permanently. As the yarn is mercerised and the fabric is mercerised again, it is called Double Mercerising.

As the prices of Mercerised yarns are higher than Gassed yarns, we can use Gassed yarns instead of Mercerised yarns to minimise the cost. After making the fabrics with these Gassed yarns, the fabric has to be mercerised again. We will get the shiny look on the fabric. But this shiny look will not be permanent and will be inferior comparing with the fabric used with Gassed Mercerised yarns. In this method, as the yarn is not mercerised and as only the fabric is mercerised, it is called Single Mercerising.

In any case, the fabric has to be mercerised before fabric dyeing.

Also Gassed Mercerised Dyed yarns are available. For yarn striped fabrics and jacquard design fabrics, these dyed yarns are used.

Approximate Gassed (Grey) yarn prices per kg in Rs:

2/60’s: Rs.310

2/74’s: Rs.360

2/80’s: Rs.400

Approximate Gassed Mercerised (Grey) yarn prices per kg in Rs:

2/60’s: Rs.380

2/74’s: Rs.440

2/80’s: Rs.490

Approximate Gassed Mercerised Dyed yarn prices per kg in Rs:

2/60’s: Light colours: Rs.480

            Medium colours: Rs.520

            Dark colours: Rs.550

2/74’s: Rs.60 to be added with the above prices of 2/60’s dyed yarn.

2/80’s: Rs.100 to be added with the above prices of 2/60’s dyed yarn.

Grindle Yarns:

These yarns are also called as ‘Twisted Yarns’. Two yarns of same counts but in different colours are twisted together. Among these 2 colours, one colour will be in lighter shade and other will be in darker shade. After the twisting, the yarn will give a different mixing shade. We must be sure of these yarns are in same counts and have same yarn strength. Also when they are being twisted together, the number of twists per inch (usually 14) should be even for the full length of yarn. If the twisting is not done properly, then we will face problems during knitting.

The prices of grindle yarns depend on the colours, counts, etc. The above prices can be referred to get approximate idea.

KNITTING OR FABRICATION

There are 2 types of knitting. One is Tubular knit. Another is Flat knit.

Tubular knit is used for the body fabric. Flat knit is used for Collars & cuffs.

There is another type of flat bed machines which are used to make Sweaters (Tricot garments). With these machines, the body fabrics, sleeves and necks are being made. And they are joining together with the help of Linking machines. We have to note that for joining these parts also is done with the main yarns. No separate sewing threads are used for joining. Some buyers call these garments as Knitted garments or Tricot garments or Sweaters.

When we discuss about Knit garments, there are many things to be taken care of. Yarn counts, knitting machine selection as per the required fabric quality, machine gauge, machine diameter, nos. of feeders, grey fabric GSM, loop length, grey fabric diameter, etc should be well considered before start knitting.

The fabric before dyeing or any process is called greige fabric. It is also called Grey fabric.

Machine Gauge:

There are different types of fabric structure like Single Jersey, Pique, Interlock, Rib, French rib (loop knit), Flat back rib, Fleece, Herring bone, etc.

There are machines with different Gauges. Like 2GG, 3GG, 4GG, 5GG machines are used for sweater knitting (Tricot knit).

Fabrics like Single Jersey, Pique, Rib, Interlock are knitted on 14GG, 16GG, 18GG, 20GG, 24GG, 26GG, 28GG, 30GG suitably.

Gauge is meant by the number of needles per inch. For example, if the fabric is knitted in 24GG machine, there will be 24 needles (feeders) per inch. If we need more needles per inch, we have to go for higher gauge machine.

As the higher Gauge machines are having more number of needles per inch, the fabric will be knitted tightly. And the fabric will have lesser shrinkage and better feeling.

If the Gauge is higher, the thinner yarn can be used.

If the Gauge is lesser, the thicker yarn can be used.

So the yarn count selection is more important according to the selected Gauge machine.

Also the machine Gauge to be selected according to the yarn count selection.

Texture:

There are 2 things making the knit fabric. They are Wales and Coarse.

Wales is the vertical yarn. Coarse is the horizontal yarn.

Wales lines are fixed by the machine gauge. This can not be changed.

Coarse lines are fixed by adjusting in the machine. This is called Texture.

By adjusting this texture, the required GSM (Grey or kora) can be achieved.

Diameter:

As the knit fabrics are made in tubular form, the patterns for making garments are being made according to tubular fabrics. Hence the diameter of fabric is very important.

APPROXIMATE KNITTING CHARGES PER KG IN RS. :

Jersey                                     8             

Pique                                     15                   

Interlock                                18                  

1x1 rib                                   15                  

Jersey with Lycra                  25           

Pique with Lycra                   25              

Rib with Lycra                      30

Feeder stripes Jersey             12

Feeder stripes Pique              18

Feeder stripes Interlock         20

Feeder stripes rib                   15

Engg stripes Jersey               40-60

Engg stripes Pique                50-70

Engg stripes Interlock           40-60

Engg stripes Rib                   110-130

PRE-PROCESSING

When we make the fabric, our ultimate aim is to get the finished fabric with following.

-          GSM (as per Purchase Order)

-          Diameter (as per Pattern)

-          Shrinkage (as per the tolerance – normally below 5%)

-          Colour (shade, fastness as per approval)

-          Fabric feeling (as per requirement)

To fulfill all these important things, we have to check following things during knitting.

-          GSM – during knitting, in Grey (kora) fabric before processing, after processing, before finishing or compacting, after compacting (on cutting table).

-          Diameter – machine dia, in Grey fabric before processing, after processing, before finishing or compacting, after compacting (on cutting table).

-          Shrinkage – before compacting and after compacting.

-          Colour shade and fastness to be checked before and after finishing.

-          Fabric feeling should be controlled during compacting.

The important thing we have to remember is that there is no standard procedure to be followed for knitted fabrics. Nobody can be 100% sure of knitting procedures and processes. Because we may not get the same result every time, even if we use the same mill yarn, same knitting machine, same dyeing factory, same finishing process. We may get different result, if we use the same mill yarn but with different lot. Likewise we may get different results due to knitting machine make, gauge, processing methods, qualities of dyes & chemicals, processing timing, processing water quality, compacting method & temperature, etc. Hence we always expect different results and we always must be prepared for avoiding the differences or deviations.

Due to the above reasons, after processing, there will be shade variations between lots. But we must be aware that there should not be shade variation between body, sleeves, collar and cuffs in one garment. Also there should not be shade variation between garments of different sizes which are packed in one carton. This is very important.

Even though the buyer knows that the lot to lot shade variations can not be avoided 100%, they will expect at least no shading between garments packed in one carton.

To avoid shade variations, we have to follow the following procedures.

To avoid shading between body, sleeves, collar, cuffs, rib, rope, twill tape:

1. Grey fabric for body, sleeves and grey collars, cuffs, rib, rope, twill tape should be knitted with same mill yarn from the same lot.
2. Fabric for body, sleeves, collar, cuffs, etc., should be dyed or processed in one lot only.
3. Body and sleeves should be cut in the same fabric roll. Fabric program should be made accordingly. (If this is not possible or not suitable due to more wastage or any other reason and if the body and sleeve fabrics are in different diameters, they should be dyed or processed in one lot only).

To avoid shading between different sizes of garments in one carton:

1. We must study the packing methods well. If the packing is assorted sizes in one carton, the grey fabrics to be sent for processing according to assorted sizes wise.
2. If the packing is Solid size in one carton, the grey fabrics to be sent for processing according to Solid size wise.
3. Collars, cuffs, ribs, twill tapes, ropes, etc should be sent for dyeing along with the main fabrics.

To avoid shading between fabric lots:

1. Water temperature, processing time, quantity of water, dyes & chemical are the defining factors of dyeing. These should be consistent to get even dyeing and consistency in shades. As it is not possible in manual winch dyeing, we should dye the fabrics only with soft flow dyeing machines.
2. Same mill yarn from the same lot to be used.
3. When we have to use yarn from different lots, the grey fabrics from one lot should be sent for processing. Fabrics from the second lot should be sent separately.
4. Approved lab dips should be followed ONLY for the 1^st fabric lot.
5. When the colour shade in the first fabric lot is approved, the same shade to be followed for the second and further lots too. First lot cutting swatch to be followed for further lots. This cutting swatch to be sent along with the grey fabrics when they are sent for processing.
6. Once 1^st lot is approved, this lot cutting only to be referred and followed for further lots. Lab dips should not be referred. This is very important.

PROCESSING

AZO FREE DYESTUFFS:

When we discuss about processing, we must be aware of Azo Free dyes and chemicals. Some years ago, German Government had banned using some 70 dyes and chemicals, as they give irritation and skin diseases. Nowadays almost all countries are following this. If the garment supplied by us tested and proved that it contains any of these banned dyes or chemicals, the buyer has the right to sue a case against us in International Court. Even if the buyer has not specifically mentioned about this, we have to use Azo Free dyes and chemicals only. 

BLEACHING:

There are 2 qualities of bleaching. One is Chlorine Bleach. Another is Peroxide Bleach.

Chlorine bleach is cost wise cheaper and lesser in quality. It will have lesser whiteness. If a garment is made of Chlorine bleached fabric, the whiteness will vanish after washes and becomes pale white or Offwhite. The fabric will have Chlorine smell. Also it will give irritation to body. Above all, Chlorine is one of the Azo dyes which are banned in most of the countries.

Peroxide bleach is to be used. Any bright shades like Milk White, Snow White can be achieved. The brightness will be forever even after many washes of garments. There will not be any smell. Also it will not give irritation to body.

There are 2 types of Peroxide bleaching. One is Winch bleach. Another is Continuous bleach. Winch bleach is normal. By using Continuous bleaching machine, we can get consistent Whiteness throughout entire lots.

Peroxide Winch bleach (approx Rs.22/kg) is more expensive than Chlorine bleach (approx Rs.12/kg).

Continuous bleach (app Rs.30/kg) is more expensive than Peroxide Winch Bleach.

Some bleaching factories will say that they will use Peroxide bleach in winches. But they will use Chlorine bleach and will do Peroxide coating to minimize their cost. But this can not be accepted. If we smell the fabric deeply, we can smell Chlorine. If this fabric tested for Azo contents, the result will show that it contains Chlorine. Also after ironed and packed the garments into a polybag and kept for some times, we can smell Chlorine immediately after removing and smelling the garments from the polybag.

Peroxide bleach can be made only with hot water. Hence we have to be sure that the bleaching factory is having boiler. And we must be sure whether they are using boiling water for our job.

FABRIC DYEING:

There are 3 qualities of dyeing. They are Reactive dyeing, Pigment dyeing and Discharge dyeing.

1. Reactive dyeing:

When we call dyeing, it means Reactive dyeing only. This is the normal dyeing. The dyes used for dyeing are called Reactive Dyes. As we discussed earlier, only Azo Free dyes should be used.

2. Pigment dyeing:

In this type of dyeing, the Pigment dyes are to be used. Pigment dyeing is used when the fabric is to be stone washed or acid washed or enzyme washed (like Jeans). Pigment dyes are mainly used for printing. Generally this pigment dyeing is made in Jigger machines. By using these dyes in dyeing, the fabric will be very stiff, as if the fabric is pigment printed both sides 100%. After this the fabrics is to be washed in special machines for getting special effects like stone wash, acid wash, enzyme wash, etc.

Nowadays, there are advanced soft flow machines with simplified methods from which we get better results.

3. Discharge dyeing:

For this type of dyeing, Discharge dyes are to be used. Some dyes are having the quality of discharge. Discharge dyeing is required only when the fabric is to be Discharge printed. We will discuss about this later when we discuss about Discharge printing.

LAB DIPS:

Before proceeding dyeing, the Lab dips are made in the laboratory. 2 or 3 lab dips are made similar to the required shade. As each yarn will have different dyes absorbency, the lab dips should be made in the same fabric which we want to dye the particular colours. Then only we will get required results.

When lab dips are made, the combination of dyes & chemicals are noted well in the books. This combination is called Recipe. The same combination is used in bulk dyeing proportionately.

There are 2 types of dyeing. One is Winch dyeing. Another is Soft flow dyeing.

WINCH DYEING:

Winch dyeing is a traditional method of dyeing. Fabrics will be rolled in winches. When they roll, it will be dipped in Dyes diluted with water. After checking whether the required shade is attained, fabrics will be removed from the winches.

There are 2 types of dyes. One is Hot dyes (Indirect dyes). Another is Cold dyes (Direct dyes).

Hot dyes are soluble in hot water. Cold dyes are soluble in cold water.

When we use hot dyes, the dyes kept with hot boiled water in the bottom of the vessel. The dyeing process will take different timing for different colour. Some dark colours will take approximately 8 hours. As the winch is kept open, the temperature of water will not be consistent. Temperature in the first hour will not be the same in 4^th or 5^th hour. It will be lesser. Hence the absorbency of colour will not be even. Also as the fabric rolled in folded form on winches, the colour patches will be there.

For getting some shades, dyes of some 2 or 3 colours to be mixed proportionately. This is called Combination colours. Each dye will have different solubility and reactivity. When 2 or 3 different dyes are mixed together, fabric may not absorb some colour properly. Due to this, the particular colour will not have required shade and colour fastness.

SOFT FLOW DYEING:

It is also called Jet dyeing or Closed Winch dyeing. These types of machines are used in recent years. It is a closed winch. Temperature, dyes & water capacity, fabric capacity, timing, everything is computerised. Due to this, the temperature is consistent. Hence the fabric absorbs the dyes evenly. Also the colour fastness will be better.

Though soft flow dyeing is expensive, this is the best way to get required shade exactly with better colour fastness. There will not be any colour patches. Also the fabric wastage will be lesser than open winch dyeing. In open winch dyeing, the fabric rolls ends are tied by themselves. But in soft flow dyeing, the fabric rolls are joined with over lock stitches, the fabric wastages can be reduced considerably. 

APPROXIMATE PROCESSING CHARGES PER KG IN RS.:

Peroxide Bleach (White):

By soft flow dyeing :  20 to 24

Continuous Bleaching : 30 to 35

Chlorine Bleach:

By open winch or open tub: 10 to 12

Fabric washing:

By open winch : 5

Colour Dyeing:

There are too many shades in each colour. It is difficult to give exact definition for light colours or dark colours by their names. Anyhow let us have a rough idea about colours now.

Offwhite, Light Grey, Lt Blue, Lt Pink, Lt Yellow, Lt Orange, Lt Green, etc are Light colours.

Blue, Orange, Blue, Light Red, Yellow, Medium Green, Grey, etc are Medium colours.

Navy, Dark Blue, Green, Brown, etc are Dark colours.

Black, Red, Olive Green, Military Green, Dark Navy, etc are Darkest colours.

The costliest colour is Royal. (It is too expensive, as the direct dyes for Royal to be used to get the brightness, etc. Sometimes if the shade is lighter and if the customer cooperates to reduce the cost, the shade can be achieved with the combination of Blue, Black, Red, etc. But it is advisable to use direct dyes only).

For the darker shades as more dye stuffs are to be used and due to more processing time, the dyeing charges for darker shades are higher than the lighter shades.

By open winch : Light colours : 20 – 25

                           Medium colours : 30 – 40

                           Dark colours : 45 – 50

                           Darkest colours : 55- 60                

                           Royal : 70 – 80

By soft flow dyeing : Light colours : 30 – 40

                                   Medium colours : 40 - 50

                                   Dark colours : 60 – 70

                                   Darkest colours : 70 - 80                

                                   Royal : 90 – 100

Drying charge : 5 - 10

WASHING

We make some fabrics with dyed yarn or mélange yarn. But after knitting, these fabrics have to be washed with soft cold water to remove the smell and dusts of yarn. Also to avoid the handling stains these fabrics are to be washed.

Not only the fabrics. The collars, ribs, twill tapes, ropes made with dyed yarns or mélange yarns also to be washed to avoid stains, smell and to get softer hand feel.

FINISHING & COMPACTING

CALENDERING:

After bleaching or bleaching or washing and after drying, the fabric will have wrinkles and creases. To remove these wrinkles, the fabric is to be ironed to enable to cut easily. Technically we call this ironing method as Calendering. This is done with steam pressure to get smooth, glossy finish of fabric. Also this will help the fabric to maintain its diameter.

COMPACTING:

Nowadays it is not enough to calender the fabrics. When we calender the fabrics, it will only remove wrinkles and will maintain the diameter. But it will control the shrinkage or fabric weight (GSM). There are no facilities in calendering. As the shrinkage and GSM are important things, we have to compact the fabrics.

With the latest compact machines, we can adjust following things.

1. Diameter.
2. GSM.
3. Shrinkage.

But all these above 3 things can not be adjusted simultaneously. We can adjust either diameter or GSM or shrinkage. We must be aware of this important fact. To avoid these problems in the end, we must take more and more care during yarn selection and knitting program.

STENDERING:

The above compacting machines are used for compacting the knit fabrics in tubular form. Some times, we will have to compact the fabric in open width form. These open width fabrics can be compacted by Open Width compacting machines or Stender machines.

Generally these stender machines are used for compacting woven fabrics. We can get the same good result for knit fabrics too.

HEAT SETTING:

The 100% Cotton fabrics are normally very soft. But if the fabric is made or blended with synthetic or artificial fibers like Polyester, Polyamide (Nylon), Elastan, Acrylic, Viscose, etc, the fabric will be very stiff and hard. These fabrics can not be used with this stiffness and hardness. Hence to get softer hand feel and flexibility, these blended fabrics has to be Heat Set.

Heat set can be done both in open width and tubular form. But to get better result, it is better to do heat set in open width form.

As 100% Cotton fabrics don’t need this heat set process, they can be used for cutting in tubular form itself. But for the blended fabrics, heat set process is a must.

APPROXIMATE FINISHING CHARGES PER KG IN RS.:

Steam calender : 1.50 to 2.50

Tubular compacting : 6

Open width compacting : 12 - 15

One side raising : 10

Printed fabric washing with slight enzyme : 8 – 10

Printed fabric washing with heavy enzyme : 10 – 12

Stendering / Heat setting : 25 – 30.

PRINTING

There are two different prints. They are all over prints and chest prints.

ALL OVER PRINTS:

All over prints can be made manually (table prints) and by machines. Fabrics are spread on long tables and printed manually with screens. Printing is done one colour by one colour. We can print the second colour, only after drying the 1^st colour. It will take more time. Also the application of colour will not be even and consistent. The print quality depends on the printer’s stroke. If the stroke of the printer differs, the print quality will differ. Also the registration (placement) of all colours will not be perfect.

Hence nowadays we use Rotary printing. Though it is expensive than manual table printing, we have many advantages in rotary printing. They are as follows.

1. Quick and time saving.
2. Up to 12 colours can be printed at a time.
3. Perfect registration (placement).
4. Consistent printing colours and quality.
5. Immediate drying.
6. Less wastage.

For printing with Rotary machines, tubular screens are to be made for each colour. But the films and screens are to be made with great care to get perfect accuracy, seating and registration. Some times, we will have to make the films with the help of computers. Even though it will cost more, we can achieve perfection in printing.

Pigment prints, Reactive prints and Discharge prints can be printed manually and with Rotary machines.

Important thing which we have to be sure that during and after dyeing or bleaching, softner should not be added. If the softner is added, the fixing of printing on fabric will be affected. Also before printing, we have to be sure that the fabric is dried completely. When we drop one or two drops of water on fabric, if the fabric absorbs the water, it means the fabric does not have softner. If the fabric does not absorb the water, it means the fabric has softner. If the fabric has softner, it should be removed from the fabric by washing the fabric again.

If the fabric is even slightly wet, when we print on rotary printing in tubular form, the first page will be in lighter shades. After printing, as the continuous process, the fabric will be dried. So when we print the same fabric on the second page, the print will be better than on the first page. There will be difference between both sides in shades and registration. Hence the fabric is to be dried completely before printing.

Rotary screens are in tubular form. The diameter of the screen is 64.1cms. Hence the repeat of print will be 64.1cms. To avoid the repeat joint after printing, more care to be taken while making films, BLD (Bright Light Duplicating) and screens. Extra care to be taken for geometric designs like multi checks with inner designs. Though the films are made with computer, screens to be made with showing the repeat in screens.

There are some machines available to print with 90cms screen width. These machines are very rare in use.

PIGMENT PRINTING (BY ROTARY MACHINE):

This is the regular print. For this, Pigment dyes are used.

Procedure:

1. Grey fabric to be bleached or light colour dyed.
2. Fabrics must be absolutely dry.
3. Can be printed in tubular form or open width form. Better to print in open width form to avoid shade variation between both sides while printing in tubular form.
4. Required printing colours are mixed with the turbantine base which is a petroleum product. Due to the higher cost and scarcity in availability of turbantine, kerosene is used an alternate.
5. Fabric rolls on the printing bed beneath screens. By the impression of screens on the fabric, the fabric is printed. As the continuous process, the printed fabric will go through the drier machine. Then the printed fabric will come out in thoroughly dried form.
6. Then the fabric is to be rolled on the other side and the other side to be printed.
7. As the petroleum product (turbantine or kerosene) is used as the base fluid, after the print, the fabric will have the smell of this base fluid. Hence after printing on both sides, the fabric should be cured to remove the smell from the fabric.
8. If the print has more than 30% print coverage or printed with dark colours, the fabric is to be washed after printing. This wash will help for better fixation of colours, avoid smell, better shrinkage and better colour fastness. If we need softer hand feel after printing, the printed fabric can be enzyme washed.
9. As the normal procedure, then the fabric is to be compacted to control shrinkage and to avoid creases. But some print designs may loose its shape after compacting. For example, a square design may change into a rectangle; a round design may change into a oval shape.  To avoid this problem, the fabric washing will help.

Advantages:

1. Cheaper cost.
2. Any shade is possible.
3. Selection or mixing colours are easier.
4. Print shades can be checked and corrected during printing.
5. Printing colours will be the same before and after printing.
6. Can be printed in tubular form or open width form.
7. Single process. Less process after printing.

Risk factors:

1. Will have lesser colour fastness especially in rubbing and sun light.
2. Print smell.

APPROXIMATE PRINTING CHARGES PER KG IN RS.:

All over prints (Pigment print) charges:

Table printing (manual printing) : 20 to 30% print coverage : 25 – 30

                                                       30 to 50% print coverage : 45 – 50

                                                       50 to 70% print coverage : 50 – 60

                                   

Rotary printing : 20 to 30% print coverage : 20 – 30

                            30 to 50% print coverage : 30 – 50

                            50 to 70% print coverage : 50 – 60

                            70 to 80% print coverage : 60 – 70

                            80 to 95% print coverage : 70 – 80

REACTIVE PRINTING (BY ROTARY MACHINE):

This is a special kind of print. For this, Reactive dyes to be used. (Pls remember, we are using the same Reactive dyes for fabric dyeing also).

Procedures:

1. Grey fabric is to be bleached or light colour dyed.
2. As the print dyes will penetrate into the fabric, there may be print impression on third page of fabric. It is called Third page image. To avoid this, it is better to print on open width form.
3. Printed in rotary machine.
4. The preparation of printing colours is not easier. Shade masters will prepare one shade; but after printing we will get entirely new shade. Hence it needs very good knowledge and experience for getting the exact shades.
5. Before bulk printing, small length of fabric is to be printed for checking the shades. One bit of this printed fabric is to be tested with hot silicate to see the final shades. Accordingly the dyes can be fixed or altered for bulk printing.
6. Printed fabric is to be kept under silicate storage for 10 – 12 hours.
7. Then the fabric is to be washed and rinsed in running water. To remove the print dusts, this wash is essential. These dusts should not stick to the fabric again. That is the reason why it has to be washed in running water. As the water should not be recycled, it is better to wash the fabric in rivers. It is called River Wash.
8. Then fabric is to be dried.

Advantages:

1. Best colour fastness.
2. Brightness of colours even after many washes.
3. Longer life for prints.
4. Very soft hand feel. There will not be any difference between the printed and unprinted areas.

Risk factors:

1. Very expensive.

2.   Too many important processes to be followed.

3. Too much care to be taken in every process.
4. Very difficult to get all the required shades exactly. 

APPROXIMATE PRINTING CHARGES PER KG IN RS.:

All over prints (Reactive print) charges:

Rotary printing : 20 to 30% print coverage : 60 – 70

                            30 to 50% print coverage : 70 – 80

                            50 to 70% print coverage : 80 – 90

                            70 to 80% print coverage : 90 – 100

                            80 to 95% print coverage : 100 – 120

DISCHARGE PRINTING (BY ROTARY MACHINE):

This is also a special kind of print. For this, Discharge dyes are to be used.

If we have to print dark colours on White back ground or Light colour back ground, we can easily use Pigment printing. It means the printing colours should be darker than the base colours.

If we have to print light colours on Dark colour back ground, we have to use Discharge printing.

(In some cases, we will have to print White colour on light base or medium colour base. For this Gadi is used to stick on the fabric. But this will not have better fastness. Print will vanish even by rubbing or washing. Prints will be so rough when touching the printed area. Importantly, as Gadi is not Azo free, it is not used widely. It is better to avoid this).

We have to remember that not all the dyes have Discharging qualities. Only discharge dyes are having discharging qualities. Hence the fabric is to be dyed with Discharge dyes.

Procedures:

1. Fabric is dyed ONLY with discharge dyes.
2. As the print dyes will discharge the dyed portions and penetrate into the fabric, there will be print impression on third page of fabric. It is called Third page image. To avoid this, the fabric is to be slit opened compulsorily before printing.
3. Before bulk printing, the printing dyes to be checked whether the required colour shades are achieved. This is very important as during printing, the printing shades will not be visible (like Reactive printing). 
4. Printing to be done with discharge dyes. When printing, the printing dyes will first remove the dyed portions where the print to be made. Then they will let the required colours to be fixed in the same places. These 2 things will take place at one time simultaneously.
5. After printing is completed, the fabric is to be stored in silicate storage for 10 -12 hours for fixation of colours.
6. After printing, the fabric is to be washed – Normal washing. No river wash is needed.

Advantages:

1. Only possible best way to print on dark colour base.
2. Better colour fastness.
3. Better soft hand feel.
4. Long lasting print quality.
5. Can be printed manually too.

Risk factors:

1. Expensive print cost.
2. All colour shades can not be achieved.
3. So much care to be taken before printing in selecting suitable colours.
4. All the pre-processes and post-processes to be done with much care.

APPROXIMATE PRINTING CHARGES PER KG IN RS.:

All over prints (Discharge dyeing + Discharge print) charges:

As we see earlier, discharge dyeing to be good to get a better print quality. Hence it is better to dye and print in one factory itself. Accordingly let us see the printing cost including dyeing cost. These costs will differ according to the dyeing shades, number of colour, etc. Hence the below costs are to give a rough idea only.

Table printing (manual dyeing + printing) : 20 to 30% print coverage : 60 – 70

                                                                      30 to 50% print coverage : 70 – 80

                                                                      50 to 70% print coverage : 80 – 90

                                   

Rotary printing (dyeing + printing) : 20 to 30% print coverage : 90 – 100

                                                           30 to 50% print coverage : 100 – 120

                                                           50 to 70% print coverage : 120 – 140

                                                           70 to 80% print coverage : 140 – 160

CHEST PRINTS:

Chest prints can be printed manually and with machines. Nowadays everybody is using machine prints only. As printing on rotary machines, printing on chest printing machines also have many advantages. They are as follows.

1. Perfect colours and shades.
2. Perfect placement and registration.
3. Better colour fastness.
4. Better smoothness and sharpness.
5. No smell. No stain in non-print areas.
6. Fast and quick.
7. Multi colour facilities (10 colours at a time).
8. Less wastage.

There are 2 types of machines. One is called Octopus automatic machine. Other one is Semi-automatic machine. Octopus machine will print automatically. This machine is very costly (about Rs.40 lakhs). Hence the printing cost will also be higher. But will have the best quality.

But nowadays the Semi-automatic machines are used widely. These machines are made locally with very low cost (about Rs.1 lakh). But we can get better quality prints at cheaper cost.

There are different quality chest prints namely Pigment prints, Plastisol prints, Glitter prints, Flock prints, Water prints, Non-PVC prints, Foil prints, Foam prints, Reflective prints, Perfume prints, Motif prints, Embossed prints, Sugar prints, Transfer prints, Sticker prints, etc.

CHEST PRINTING CHARGES:

Chest prints can be printed both in garment form and bit form. The printing cost is generally based on the number of colours, print area and coverage.

Manual printing (table printing) charges:

Only pigment prints should be printed by manually.

Up to 2 colours : up to 5cm x 5cm : 2 per pc

                            up to 10cm x 10cm : 4 per pc

                            up to 15cm x 15cm : 6 per pc

                            up to 20cm x 20cm : 8 per pc

For more than 2 colours, 10% of cost can be added per colour.

It is advisable to print only upto 4 colours by manually.

After the manual printing, the printed fabric or garment is to be cured to remove the print smell. The cost of  curing is approximately Rs.5 per kg.

Machine printing (Plastisol inks) charges:

The printing cost also depends on the print quality like plastisol, flock, foil, sugar, glitters, foam, etc. Here we will see the print cost for normal print namely Plastisol print.

To get the cost of other special quality prints, it is better to check with the printers.

Up to 3 colours : up to 5cm x 5cm : 3 per pc

                            up to 10cm x 10cm : 5 per pc

                            up to 15cm x 15cm : 7 per pc

                            up to 20cm x 20cm : 10 per pc

For above 3 colours, 10% of cost per colour is to be added with the above costs. 8 to 10 colours can be printed with machines.

After plastisol print, as there will be no print smell, the fabric or garment is not needed to be cured. But the printed part is to be fused to have better fixing and colour fastness. Fusing cost is included in the above costs.

SPECIAL PROCESSES

There are some other special processes like Tie & Dye, Batiks, Garment Dyeing (Garment wash), etc.

TIE & DYE:

This process can be done manually only. Reactive dyes or Discharge dyes can be used. It is better to use Discharge dyes. It will give printing effect; but in dyeing.

It can be done in garment form or bit form according to the design and style.

Procedures:

1. Only 100%Cotton fabrics can be tie & dyed manually (in India).
2. The fabric is to be Peroxide bleached for better result. (If it is Chlorine bleached, the result will not be good).
3. If we do tie & dye in garment form, the garment to be made in Bleached fabric.

      Important thing is that the garment to be stitched with 100%Cotton thread only. As

      Polyester thread will not get dyed, only 100%Cotton threads to be used for stitching.

As the garment will shrink during tie & dye, the bleached fabric is to be compacted well before making the garment.

After tie & dye process, as nothing can be done about measurements, shrinkage and shape of garment, some sample garments to be tested before bulk tie &dye, by noting down all the details and much care to be taken carefully to avoid problems in measurements, shrinkage and shape.

4. If we do tie & dye in bit form, the fabric bit is to be cut with shrinkage allowance and cutting allowance in lengthwise and widthwise.
5. When we cut the fabrics either for making garment or for bit form, the fabric is to be cut in wales (vertical) direction perfectly. Though this is the regular procedure for all garments, it has to maintain essentially to avoid spirality (curving) of garments after tie & dye.
6. If there is embroidery to be made in DTM colours (Dye To Match), the embroidery should be done with 100%Cotton thread only.
7. Fabrics for body, sleeves, neck rib and other accessories to be dyed simultaneously according to the requirement.
8. If there is any other base colour except White, the garment or bit to be dyed to the required base colour. And to be dried under shades manually.
9. Garments or bits are tightly tied with ropes according to the required design. It may be stripes or any other design.
10. Then the tied portions will be dipped into the required colour dyes. This is the dyeing process. The dipping will be done manually. It will take few minutes only.
11. Then the ties are removed and the garments or bits to be dried under shades.
12. Then the garments or bits to be tied again for the next colour(s) and to be dipped in the next colour(s) and to be dried under shades. And so on.
13. We have to remember that so far the colour dyes will not be added with the fixing agent. If the fixing agent is added, the other colours will not fix properly.
14. After the completion of dipping of all required colours and after the garments or bits dried after the final colours, the garments or bits to be fixed with fixing agent.
15. Then the garments or bits are to be dried under shadows.
16. As the fixing agent is fixed, in case of emergency, now the garments or bits can be dried with machines too. But to get better result, it is better to dry them in shadows.
17. Before cutting the bits for garments, the steam lines are to be carefully found out, as the designs will be slightly confusing.

Advantages:

1. Enormous designs can be made.
2. Very attractive and suitable for high fashions.
3. Better colour fastness.
4. As it is done manually, can be made at affordable prices.

Risk factors:

1. As all the processes are done manually, there will be less consistency of designs and quality.
2. Much time consuming process – especially drying.
3. More and more care to be taken at all stages – starting from knitting, cutting, garmenting, processing, etc.
4. During and after the process, the fabrics can be dried only manually. Drying by machines is not possible. No alternative can be made in rainy seasons. Shipments may be delayed if we don’t plan properly expecting the natural problems.
5. For larger quantities, many dyeing factories to be engaged accordingly. By this, due to different dyes, methods, etc., we will get different qualities and results.

APPROXIMATE TIE & DYE CHARGES PER KG IN RS.:

If it is to be tie & dyed in bit form, the charges will be based on number of colours, GSM, length and width of the bits. Approximately, for 2 colours, 70cm length x 60cm tubular width bit, the charge may be Rs.18 to 20. 

Approximate charge for 2 colours may be around Rs.70 to 80 per Kg.

BATIKS:

This is also done manually. This is almost like tie & dye. This is like printing. This is also called as Wax printing.

The printing designs like stars, flowers, etc., will be made by wax. The procedures are the same as for tie & dye. The print designs made by wax are sticked to the fabrics and over dyed. The fabric beneath the wax designs will not get dyed. Hence after removing the waxes, it will be like the wax designs.

Though it is being done for Woven and Knitted fabrics, mainly it is used for Woven fabrics. Mostly used for sarees, curtain cloths, bed spreads and lungies.

The prices for batiks are almost same as Tie & Dye charges.

GARMENT DYEING:

This is one of the expensive and special processes.

We had seen that the fabrics are dyed by winches and closed winches (soft flow machines). After the fabrics are dyed, they will be cut as per the patterns to make the garments. Then body, sleeves, collars, cuffs are attached together. Hence after finishing the garment and after washing, the garment may have shade variations between these parts, even though we have taken more care. Also the garment may have shrinkage more than the allowance. To avoid this and to have special effects on the garments, garment dyeing method is followed.

By this garment dyeing following special effects can be achieved.

1. Stone wash.
2. Acid wash
3. Enzyme wash
4. Faded wash.
5. Denim (Jeans) wash, etc.

Procedures:

1. Fabric for body, sleeve, collar, cuff, neck rib, rope, etc., to be made from the same mill yarn and from the same lot.
2. All these fabrics and accessories to be half bleached (semi bleached).
3. The garments to be made from this half bleached fabrics.
4. When we cut the fabrics either for making garment, the fabric is to be cut in wales (vertical) direction perfectly. Though this is the regular procedure for all garments, it has to maintain essentially to avoid spirality (curving) of garments after garment dyeing.
5. After garment dyeing, as nothing can be done about measurements, shrinkage and shape of garment, some sample garments to be tested before bulk dyeing, by noting down all the details and much care to be taken carefully to avoid problems in measurements, shrinkage and shape.
6. By these sample garments dyeing (pre-bulk dyeing), the washing method, washing effect is to be fixed and confirmed. If the garment dyeing is made more than enough, the garment will be damaged in some areas. This damage will happen where many fabrics are attached together. Mainly at neck seam around collar, shoulder seam, placket boxes, cuffs, side slits and pockets. Hence the garment should not be washed heavily.
7. Garments should be stitched with 100%Cotton threads only.
8. If there is embroidery to be made in DTM colours (Dye To Match), the embroidery should be done with 100%Cotton thread only.
9. Recipes of approved lab dips to be followed exactly.
10. Each vessel (soft flow dyeing machine) will have different capacities. The garments, dyed from one machine at one time, are called as Lot. There will be difference in shades and washing effect between lots. Hence quantity of garments to be divided into lots according to the packing method. This is important to avoid shade and effect variation between garments in one carton.

Advantages:

1. There will not be any shade variation between body, sleeves, collar, cuffs, etc.
2. As the shrinkage is controlled completely, there will not be any shrinkage further.
3. Washed look can be achieved.

Risk factors:

1. It is not possible to get the exact shades 100%.
2. Shade variation between lots can not be avoided fully.
3. Due to the damages in garments, rejections of garments will be high. Hence average cost of garments will be increased.
4. Due to the special effects and quality, it is expensive.
5. Much more care to be taken in all stages to avoid rejections and problems.

APPROXIMATE GARMENT DYEING CHARGES PER KG IN RS.:

Half bleach : 30

Light and Medium shades dyeing : 80 – 90

Dark shades dyeing : 90 – 110

EMBROIDERY

Embroidery can be made by manually and by computerized machines.

As all the machines are fully computerized with most advanced technologies, nowadays embroidery has the best finishing and consistent quality. With these machines it is possible to make any complicated design even in 9 colours.

Other types of embroidery are Applique and Acoba embroidery (all over embroidery).

Applique:

This is made as decorative embroidery. Some piece of same fabric or contrast fabric is to be attached with the garment and embroidery to be made on or around this fabric cutting.

Acoba embroidery (all over embroidery):

With the above said embroidery machines, size of the embroidered area is restricted to some extent. This will vary from machines to machines. But to make the embroidery all over the fabric, some other special machines to be used.

In these special acoba embroidery machines, all over embroidery can be made like the fabric is printed in rotary printing machines.

Though acoba embroidery can be made on woven and knitted fabrics, the best results can be achieved in woven fabrics. Because of its own quality nature, knit fabrics will get more damages and holes by acoba embroidery.

In India, Acoba embroidery is commonly made in sarees, blouses, designer’s fabrics, decorative fabrics, curtain clothes, etc.

EMBROIDERY CHARGES:

Embroidery cost based on the number of stitches, number of colours and sizes of embroidery.

Due to competition, nowadays the embroidery cost has come down as around Re.1.00 per 1000 stitches. But the minimum cost is around 2.50, though the number of stitches is lesser.

Applique embroidery cost is based on the fabric cutting cost, fixing cost, etc in addition to the number of stitches, number of colours and sizes of embroidery.

ACCESSORIES

Buttons, Zippers, Twill tapes, Ropes, Elastics, Badges, Labels, hang tags, Inner boards, Tissue papers, Packing pins, Polybags, Inner cartons and Outer cartons are called as accessories.

The prices of accessories are based on the quantity and quality. Also each accessory has many dimensions, qualities, specifications, etc. So it is difficult to discuss here about their prices in details. Hence it is better to check the prices with the suppliers.

Anyhow, for making costing, we must have a basic knowledge about the costs. Hence let us see approximate prices below.

Cost of Buttons: Ordinary design of shirt buttons (chalk): Rs.8 to 10 per gross (12 dozens).

     (Imitated) Horn buttons: Rs.10 to 15 per gross.

     Special designs of shirt buttons: Rs.15 to 40 per gross.

     Shirt buttons with engraved letters (inside design): Rs.50 to 70 per gross.

                             Shirt buttons with embossed letters (inside design): Rs.40 to 60 per gross.

                             Metal buttons, wooden buttons – Varies as per design, quantity, etc.

              

Cost of Zippers: No5 (5mm width) Nylon 7” length: Rs.7 per zip.

                             No5 Nylon 24” length: Rs.24 per zip.

                             No5 Metal (brass or antique brass) 7” length: Rs.5 – 7 per zip.

                             No5 Metal (brass or antique brass) 24” length: Rs.22 – 24 per zip.

For adult garments, No.5 zippers are used.

For children garments, No.3 zippers are used. Cost of No.3 zippers is lesser than No.5 zippers.

The above prices are for the zippers with normal pullers. For the special pullers, the prices will be different.

Cost of Twill tapes & ropes:

Though readymade twill tapes are available in the markets, it is better to make the twill tapes and ropes with the same yarn which is used for the body fabrics to avoid shade variations after dyeing. Hence here we will see only the weaving charge for twill tapes & ropes.

It is approximately Rs.30 to 40 per kg.

Cost of Elastics:

Elastics are made with Nylon and Polyester yarns.

Nylon elastics are costlier than Polyester elastics. Hence polyester elastics are used mostly.

There are plain elastics and named elastics. The prices are based on quality, width, thickness, etc.

Elastics with the width of 4mm, 6mm, 8mm, 10mm, 12mm, etc are used for legs of undergarments.

Elastics with 1cm, 2cm, 2.5cm, 3cm, 4cm elastics are used for waist of undergarments and outer garments.

From 4mm to 6mm width: Around Rs.0.50 per metre.

From 8mm to 10mm width: Around Rs.1.00 per metre.

From 1.5cm to 2cm width: Around Rs.1.75 per metre.

From 2.5cm to 3cm width: Around Rs.2.50 per metre.

From 3.5mm to 4cm width: Around Rs.3.50 per metre.

Prices of named elastics are more expensive than plain elastics. It depends on the design, number of colours, quality and quantity.

Cost of Badges:

Badges attached to the garments either by stitching or fixing with paste. Most of the badges are attached by stitches only.

Badges are in many types. It may be a big woven label or printed woven cloth or engraved leather or plastic or PVC sticker or reflective plastic. As these badges are very special, it is better to check the prices with the suppliers.

Cost of Labels:

There are main labels, size labels, wash care labels, flag labels and badge labels or patch labels.

These labels are made in woven or polyester printed.

Woven labels are made in computerized automatic looms to get better quality and clarity. Hence the labels made with these machines are costlier. There are 2 types of woven labels. One is Taffeta and the other is Damask. Taffeta labels are woven on single side of labels. Damask labels are woven on both sides of labels. Damask labels are costlier than Taffeta.

There are non-computerized looms are also available. With these machines also woven labels are made. Mostly these machines are used to make woven wash care labels, size labels and main labels with cheaper quality at cheaper prices.

Woven labels: Main label (2.5cm width x 7cm length): Rs.0.30 to Rs.0.40

Main label (4cm width x 10cm length): Rs.0.60 to Rs.0.80

                        Size label (1cm width x 3cm length): Rs.0.10

                        Wash care label (4cm width x 10cm length): Rs.0.30 to Rs.0.40

                        Badge (patch) label (1cm width x 4cm length): Rs.0.10

                        Flag label (3cm width x 4cm length): Rs.0.12

Printed labels are used for wash care labels. For undergarments these printed labels are used mentioning size, composition, care instructions, etc. Single colour and multi colours are printed on polyester or satin tapes. Satin tapes are little costlier than polyester tapes.

The printing inks may have poor colour fastness. Hence before using the printed labels, colour fastness of printing inks to be checked with hot water. If the printing colour bleeds, it may spread and spoil the garment after washing.

Printed labels: Single colour (1” width x 10cm length): Rs.0.08 per label.

                        Single colour (1.25” width x 10cm length): Rs.0.10 per label.

2 or 3 colours (1” width x 10cm length): Rs.0.15 per label.

Cost of Hang tags:

To mention brands, sizes, colours, prices, composition, etc, tags are used and attached with the garments. Though these tags are removed from the garments by the end users, it is used for attraction and for special look for the packed garments. Hence the quality, style, design, colours, cutting and presentation of these hangtags are to be importantly better.

Though the tags can be cheaper if printing and cutting made manually, it is always better and safer to print in automatic offset printing machines and to cut in die-cutting machines.

The price depends on quality & thickness of the board, printing design, 1 side or 2 sides printing, number of colours, measurement, die cut design and quantity.

If the tag is normal size with normal print without die cut, the price may be Rs.0.40 to Rs.0.80 per tag. If there is some thing special, the price may be Rs.1.00 to Rs.1.50 per tag.

If any photo is to be scanned & printed and if the quantity is lesser below 1000 nos, the price may be around Rs.4.00 per tag.

Cost of Inner board:

Price depends on sizes, quality, die cut (scoring) and quantity.

For normal size, normal quality: Rs.0.30 to Rs.0.50 per board.

For special sizes, special quality with die cut: Rs.0.50 to Rs.1.00 per board.

Cost of Tissue paper:

If it is plain tissue paper: Rs.0.10 to Rs.0.15 each paper, depends on paper quality.

If it is a printed tissue paper: Rs.0.25 to Rs.0.50 each paper, depends on quality of paper & print.

We have to remember that we may need to insert more than one tissue paper per garment.

Cost of Packing pins:

Some times the hang tags are to be attached to labels with safety pins. The cost of pin + rope may be around Rs.0.30 to Rs.0.50 depends on the quality of pin & rope (thread).

Cost of Polybags:

Normally 2 qualities of polybags are used. One is PP (Polypropylene). Another is PE (Polyethylene).

As PE polybags are recyclable, nowadays, most of the customers insisting to use PE only. PE polybags are little costlier than PP bags. The PE polybags will have less strength in sealing (side joints) comparing with PP bags. Due to this, the rejection of polybags will be more.  PE polybags look dull and will not have shiny look.

PP bags have bright look. If the polybag is very thin, it may not be recyclable. Hence the thickness (gauge) is to be checked and confirmed according to the specifications prescribed by the customers and Government statutory bodies.

Price depends on thickness (Gauge), measurements, prints, quantity, etc. The prices can be fixed either on weight (kg) or quantity. Price of each polybag is fixed with the number of polybags per kilogram.

PP polybags:

Approximate cost of polybag per kg: Rs.55.00 to Rs.65.00.

The cost of a normal polybag without print may be Rs.0.30 to Rs.0.40 per bag.

With size printed on front and care instructions printed on back (normal measurement): Rs.0.60 to Rs.0.80 per bag.

If the polybag is to be with heat sealed tape, the cost of tape will be added to the above prices at the rate of Rs.0.02 for one inch length. If the width of polybag is 12”, the tape cost will be Rs.0.24 per bag.

PE Polybags:

The prices of PE bags are approximately 10% higher than the prices of PP bags.

Cost of Master polybag:

Master polybags should have more thickness so that many garments can be packed inside. One master bag cost may be approximately Rs.3.00 to Rs.5.00 depends on the measurements and gauges. Approximately 12 or 24 garments can be packed in one master bag, depends on the packing size & volume of the packed garments. Hence approximately Rs.0.25 will be the master bag cost per garment.

Cost of Hangers & Sizers:

Cost of Cartons:

Cartons are used as Inner carton and Outer carton.

Inner Cartons:

The inner cartons can be in lesser ply and in lesser GSM paper. So the cost of inner cartons will be lesser.

For 3 ply cartons to pack 12 garments, the cost will be Rs.15.00 to Rs.20.00 per inner carton (for 12 garments). Hence the cost per garment will be approximately Rs.1.25 to Rs.1.60 per garment.

Outer Cartons:

It is important that the outer cartons to be made in Virgin paper which means it should be used for the first time. Recycled papers should not be used. Also the outer cartons must be sea worthy to avoid the damages due to salty wind during transit by sea.

The strength of cartons based on number of plies and paper thickness (GSM).

Normally 7 ply or 9 ply cartons with 100GSM, 120GSM or 150GSM papers are used.

Approximate cost of a carton is around Rs.25.00 to Rs.40.00 to pack 24 to 50garments.

Thus cost per garment will be around Rs.1.25.

CMT CHARGES (Cutting, Making, Trimming):

This is the main job in garmenting.

Some factories will do only CMT jobs. The export factories will supply the required fabrics, trims and accessories to these Job workers. These factories will add about 25% of the actual charges as their profit. Though CMT is Cutting, Making and Trimming charges, it is inclusive of the cost of sewing thread, charges of button attachment & button holes and other attachments, local transport, etc.

Here let us see the CMT charges as if done in the same factory.

CMT charge depends on the style of garment, number of jobs with over lock, flat lock & lock stitch machines, quality standards, time consumption, productivity, quantity, season/off season, urgency, etc.

For making knitted garments following machines are mainly used.

Over lock machines.

Flat lock machines.

Lock stitch machines.

Over lock machines are used for joining 2 or more fabrics. There are 3 thread, 4 thread, 5 thread and 6 thread over lock machines are used. For joining the sides of garments, 4 thread over lock is better to use, as there is a safety stitch in this. The productivity with this machine is very high. Hence the charges for these jobs are considerably lesser.

Flat lock machines are used for hemming the edges and for covering the stitches around armholes and shoulders. The operators of this machine should have more experience and knowledge. Due to the higher cost of these machines and due to the higher wages for the operators and due to the lesser productivity, the charges for these jobs are higher.

Lock stitches are used for making plackets, pockets, V neck covering, and attaching collars & labels. There are manual and power driven machines are used. Because of the better perfection and faster production comparing with manual machines, nowadays, only the power driven machines are used. When comparing with the other machines (over lock & flat lock), the productivity from these lock stitch machines are very lesser. Due to this and due to higher wages for the operators, the charges for these jobs are higher.

Here let us see approximate CMT charges for the basic garments.

Men’s Basic T shirts – short sleeves: Rs.10 per pc.

Men’s Basic T shirts – long sleeves: Rs.12 per pc.

Men’s T shirts – Printed or Yarn striped – short sleeves: Rs.12 per pc.

Men’s T shirts – Printed or Yarn striped – long sleeves: Rs.14 per pc.

Men’s Solid Polo shirts – short sleeves: Rs.18 per pc.

Men’s Solid Polo shirts – long sleeves: Rs.20 per pc.

Men’s Polo shirts – Printed or Yarn stripes – short sleeves: Rs.20 per pc.

Men’s Polo shirts – Printed or Yarn stripes – long sleeves: Rs.22 per pc.

Ladies Basic Tops without collar – short sleeves: Rs.10 per pc.

Ladies Basic Tops with collar – short sleeves: Rs.13 per pc.

Ladies Basic Night dresses – short sleeves: Rs.10 to Rs.12 per pc.

Long pyjamas with 2 side pockets: Rs.12 to Rs.15 per pc.

Boxer shorts with 2 side pockets: Rs.12 per pc.

Boxer shorts without pockets: Rs.8 per pc.

Shorts with 2 side pockets: Rs.10 per pc.

These above charges are approximate. If there are any extra works, the charges to be added accordingly.

GARMENT COSTING

Now we have come to the very important stage which is the costing. Costing is the deciding factor of price of a product and the important thing to be followed in all important stages like purchase, production, marketing, sales, etc.

Having very good knowledge and experience is very much essential for doing successful marketing and sales. Also update knowledge is essential.

Costing includes all the activities like purchase of raw materials and accessories, fabrication of fabrics, processing and finishing of fabrics, sewing and packing of garments, transport and conveyance, over heads, banking charges and commissions, etc.

To do reasonable and accurate costing, one must know about all these activities thoroughly about their costs, procedures, advantages and risk factors. Also he must know how to solve the problems when occurred and to take suitable alternate decision immediately in time.

Now before discussing about costing, we 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. Hence we must have update knowledge about the latest prices and charges, latest procedures, methods and quality systems, market prices and availability, transportation (road, sea, air) and freight charges, etc.

We must remember that the quality depends on prices. Each product will have different price according to its quality. We do not manufacture only one quality of garments. Also we manufacture the garments not only for one customer. We manufacture different garments to different customers who expect different qualities of garments at different price levels. Hence we can not follow the same costing for all the customers. While we do the garment costing, the customer’s price level, quality & quantity of garments and payment terms, to be taken into consideration.

Due to the above practical reasons, here it is not possible to clearly define the exact costing. But we will discuss about the approximate prices and charges, about the procedures of making costing, etc.

To make the garment costing, we have to find out following things.

1. Fabric consumption.
2. Gross weight of all parts of garment.
3. Fabric cost per kg.
4. Fabric cost per garment.
5. Other charges (print, embroidery, etc.)
6. Cost of trims (labels, tags, badges, twill tapes, buttons, bows, etc.)
7. CMT charges
8. Cost of accessories (hangers, inner boards, polybags, cartons, etc)
9. Cost of a garment.

FABRIC CONSUMPTION:

Garment prices are mainly based on the fabric consumption. Hence we must pay more attention to find out the fabric consumption more accurately or closely. It needs sound knowledge and good practical experience to find out the fabric consumption. Anyhow let us analyse here how to make this calculation.

As we discussed earlier, the garment quality is mainly based on the fabric weight (GSM). The consumption of fabric is also based on GSM. If the GSM is lesser, the consumption will also be lesser. If the GSM is higher, the consumption will also be relatively higher.

As we have seen earlier, GSM is Grams per Square Meter. That is, weight of the fabric of 1 square meter (which is the same as 10,000 square centimeters). In other words, if the area of the fabric is 10,000 sq.cms, then the weight of the fabric is called GSM. Hence to find out the fabric weight of the required dimension, we have to use follow the below formula.

We have to remember that some countries are measuring the garments in Inches and some other countries measure in Centimeters. USA, Canada, Australia are measuring in Inches. Asian and European countries are measuring in Centimeters.

The garment measurements for USA, Canada and Australia are bigger than European measurements. In Europe, the German measurements are bigger than other European countries.

To find out the fabric consumption, if the garment measurements are in Inches, they have to be converted into Centimeters. 1 Inch = 2.54Centimeters.

The method of finding consumption will vary from style to style. As there are many different styles in garments, it is not possible here to discuss about all the styles. Hence let us take few styles like Men’s Basic T shirts, Men’s Polo shirts, Ladies Night dress, Men’s Pyjamas, Men’s shorts which are in regular use. Based on these methods, consumption can be made for other styles too.

Also we will have to work prices for solid dyed or all over printed or yarn dyed stripes. Let us see them in detail now.

To work on the prices exactly, we must have full measurements of the garment. But compulsorily, we must have the measurements of Chest, Body Length and Sleeve Length.

The garments are to be made in many sizes to fit for everybody. Generally they are in the Sizes Small (S), Medium (M), Large (L), Extra Large (XL) and Double Extra Large (XXL). The quantity ratio or assortment will be approximately any one of the following ratio.

S : M : L : XL : XXL :: 1 : 2 : 2 : 2 : 1

S : M : L : XL : XXL :: 1 : 1 : 2 : 1 : 1

S : M : L : XL : XXL :: 1 : 2 : 3 : 2 : 1

As the price is the same for all these sizes of garments, we must take the centre size Large (L) for our calculation. Generally the quantity of L size will be higher or equal to the quantity of each of other sizes.

TRIAL COSTING NO.1

EXAMPLE ENQUIRY FOR MEN’S BASIC T SHIRTS (FOR EUROPE):

Enquiry No.: 3333        Style Ref: AAAA

Description: Men’s Basic T shirt – Short sleeves – 100%Cotton 140GSM Single Jersey –

1x1 rib at neck – Solid dyed – Light, Medium & Dark colours in equal ratio –

Label: Woven main label mentioning brand name and size to be stitched at centre of back neck.

           Polyester printed wash care label to be stitched at inside left bottom 10cm above hem.

Hang tag: Only Brand name printed tag. (No style number or no size is needed to print).

Polybag: Each garment to be packed in to an individual polybag.

Sizes: S, M, L, XL, XXL

Ratio: 1 : 2 : 2 : 2 : 1

Packing: Solid colour packing : 8 pcs in assorted sizes to be packed in a master bag.

                                                    6 master bags (8 x 6 = 48 pcs) in an export carton. 

Shipping Marks: To be printed on both length side of carton.

Export carton: 7 ply 120GSM Virgin corrugated – sea worthy.

                        Cartons are to be strapped with 2 nylon straps.

Quantity: 1 x 20’ container. (22,000 pcs).

Measurements in Centimeters:

                                   Size: L

Chest                      = 60 cms.

Length                    = 78 cms.

Sleeve Length        = 24 cms.

Neck rib width       =   3 cms.

Hem                       =   3 cms.

We must know that these are the measurements of a finished garment.

Patterns are generally made with the seam allowance and cutting allowance.

Hence Body length and sleeve length will have allowances for the hem and shoulder sewing. Bottom hem and sleeve hem are normally 3cm. Hence 4 to 5cm to be added with body length and 4 to 5 cm to be added with sleeve length.

For shaping and for allowance for neck seam and shoulder seam another 2 to 3 cm to be added with body length & sleeve length separately.

Generally, 12 cm is added with the total of body length and sleeve length.

That is, (Body length + Sleeve length + 12 cm)

We knit the fabrics in tubular form only. Due to unavailability of suitable diameter machines or due to some other practical reasons, the finished fabric may have more width than required. In case, if we are unable to control this, this full width of fabric is to be taken for our calculation. Generally for solid fabrics and normal fabrics like Jersey, Pique & Interlock, 2 to 3cm to be added with the chest measurement.

As the fabric is in tubular, we are multiplying the fabric Area into 2. Thus, we can find out the fabric consumption in the following formula.

Consumption:  (Body length + Sleeve length + allowance) X (Chest + allowance) X 2 X GSM

                                                                                    10000

                      :  (70 + 24 + 12) X (60 + 2) X 2 X 140

                                                10000

                      :  (106) X (62) X 2 X 140

                                                10000

Body & sleeves:  184 grams.

Neck rib           :    10 grams.

                            --------------

Gross weight    :  194 grams. (0.194 kg)

                            --------------

So the fabric consumption per garment is 194 grams.

Gross weight & Net weight:

The above weight is the Gross Weight of Fabric. It means, the weight of the fabric bits cut in tubular form without taking shapes is called Gross weight. This is the consumed fabric for the particular garment. Hence costing is to be made as per this gross weight.

The weight of the cut pieces after taking the shape according to the pattern is called Net Weight of Fabric.

FABRIC COST PER KG (In Rs):

                                     Light colours     Medium colours     Dark colours

34’s combed yarn      =     135.00                  135.00                  135.00

Knitting charge          =         8.00                      8.00                      8.00

Dyeing charge            =       35.00                   45.00                    65.00

Compacting charge    =         6.00                      6.00                      6.00

                                         ----------                 ---------                   --------

                                           184.00                 194.00                  214.00

Fabric wastage @ 5% =         9.20                     9.70                    10.70

                                         ----------                 ---------                   --------

Fabric cost per Kg    =     193.20                 203.70                  224.70

                                         ----------                 ---------                   --------

FABRIC COST PER GARMENT (In Rs):

Fabric cost per garment    = (Fabric cost per Kg) X (Gross weight of fabric in grams)

                                                                        1000 grams

For Light colours              = 193.20 X 194

                                                    1000

                                   

For Light colours              = 37.48 (Round off: Rs.37.50)

Likewise, let us work for Medium & Dark colours as follows.

For Medium colours          = 203.70 X 194

                                                    1000

                                   

For Medium colours          = 39.52 (Round off: Rs.39.50)

For Dark colours               = 224.70 X 194

                                                    1000

For Dark colours               = 43.59 (Round off: Rs.43.60)

                                              Light colours     Medium colours     Dark colours

Fabric cost per garment  =    Rs. 37.50                 39.50                      43.60

OTHER CHARGES (Print, embroidery, etc):

For this style (Basic T shirt), there is no need of print or embroidery. So there is no charges.

COST OF TRIMS (zippers, buttons, elastic, ropes, twill tapes, badges, labels, tags, bows:

The accessories which are attached to the garments are called Trims.

Now we have taken Men’s Basic T shirts, as example. Let us see what are the trims required for this style. We require following things.

1. Labels – Woven main label & Polyester printed label.
2. Hang tag – Normal (not a special one).

Let us see the cost of these things.

Labels: Woven main label: Small size (2.5cm width x 7cm length): Rs.0.35

             Polyester printed wash care label: single colour print: Rs.0.10

Hang tag: Rs.0.40

So the total cost of trims is Rs.0.85 per garment.

CMT CHARGES:

As we see earlier, the CMT charge for Men’s Basic T shirt is Rs.10.00 per garment.

COST OF ACCESSORIES (hangers, inner boards, polybags, cartons, etc):

For this Basic T shirt, let us see the costs of the required accessories.

1. Polybag - Normal (not a special one): Rs. 0.30 per garment.
2. Master polybag – Normal: Rs.2 per master polybag to contain 8 garments.

     : Rs.0.25 per garment.

3. Export carton – Normal: Rs.40 per carton to contain 48 garments.

  :  Rs.0.80 per garment.

So the total cost of accessories is Rs.1.35 per garment.

COST OF GARMENT

Now let us sum up all the above costs and charges together as follows to find out the cost of garment.

                                       Light cols     Medium cols     Dark cols

Fabric cost per garment                                   = Rs.37.50            39.50                43.60

Other charges (print, etc.)                               =      --                     --                       --

Cost of trims (labels, tags, etc)                       = Rs.  0.85              0.85                  0.85

CMT charges                                                   = Rs.10.00            10.00                10.00

Cost of accessories (polybags, cartons, etc)    = Rs.  1.35              1.35                  1.35

                                                                        = Rs.49.70            51.70                55.80

Rejection of garments (commonly 3%)          = Rs.  1.50              1.55                  1.70

Cost of garment                                              = Rs.51.20           53.25                57.50

We have found out the cost of garment. We must aware that this is only the cost – Not the price.

PRICE OF GARMENT

To get the price of garment, we have to add the charges of local transport & freight (sea or air), profit, over heads and commissions with the above cost of garment. Now let us see these things in detail.

LOCAL TRANSPORT, SEA FREIGHT, AIR FREIGHT:

While we confirm the orders from the customers, the delivery terms are to be confirmed. There are many delivery terms like FOB, C&F, CIF, Ex-factory, EXW, FCA, FAS, CFR, CPT, CIP, etc.

FOB:

It is the abbreviation of Free On Board. It means freight will be paid by the buyer.

C&F:

It is the short form of Cost and Freight. It means the price is inclusive of the cost and the freight.

CIF:

It is the short form of Cost, Insurance, Freight. It means the price is inclusive of the cost, insurance premium and the freight. The goods to be insured to 110% (generally) of the value of the goods and if any damage or theft or loss, it will be claimed by the buyer.

Ex-Factory:

This term is used only for domestic (inland) business. It is the same as FOB. It means the buyer will pay the freight - it may be road or rail transport.

If it is local domestic delivery, the terms can be Ex-Factory or C&F or CIF.

EXW (Ex Works):

It is the same as Ex-Factory.

FCA (Free Carrier):

It is the same as FOB.

FAS (Free Alongside Ship):

It is the same as FOB.

CFR (Cost and Freight):

It is the same as C&F.

CPT (Carriage Paid To):

It includes the Cost and Sea freight & Road transport upto the buyer’s final destination place.

CIP (Carriage and Insurance Paid to):

It is the same as CIF.

We have to confirm any one of these above delivery terms. Mostly FOB, C&F, CIF terms are used. Some buyers will use different names for the terms. If we have doubt about the terms, it is better to clarify with the buyer while discussing the prices.

In case of local supply on either on C&F or CIF terms, the charges of road or rail transport to be added with the above cost of garment. Local transport either by road or rail to the customer’s destination can be checked locally according to the distance, availability, etc.

In case of export to other countries, the local transport and sea freight or air freight are to be added with the above cost of the garment.

SEA FREIGHT:

When we talk about the freight charges, we have to remember that it is the total expenses of following.

1. Local transport to the port.
2. Port expenses – Loading, unloading and overtime charges (if needed in case of urgency).
3. Charges of stuffing the goods into container.
4. Customs charges – Documentation, inspection, etc.
5. Charges of freight.

The goods are stuffed in to containers and stowed in to the ships. There are 2 types of loading. One is FCL (Full Container Load) and the other is LCL (Loose Container Load).

There are 20’, 40’ and Hicube containers with different capacity. Their approximate capacity is as follows.

20’ container: 23 cubic metre.

40’ container: 46 cubic metre.

Hicube container: 60 cubic metre.

According to the volume of goods, the size of container is to be decided. If the volume is suitable to fit into one full container (20’ or 40’ or Hicube), it is called FCL.

If the volume is lesser than the capacity of 20’ container, then the goods can be stuffed in to a container as a part load. The balance volume of the container will be filled with other’s goods. It is called Loose Container Load.

Sometimes, different goods from different suppliers – but for the same buyer - may be stuffed in one full container. This is called Consolidation of Goods.

The sea freight is varied based on volume or weight, distance between destinations, routing & transit time, transshipment, shipping lines and conference lines.

Volume or weight:

Generally freight is considered by Volume – as we see above. But some goods (not garments) will have lesser volume; but with more weight – Like steel, granite stones, etc. In this case, the freight will be based on weight too.

Distance between destinations:

It is the distance from the loading port to the discharge port (destination port). The ship which carries the containers to the final destination port is called Mother Vessel. This ship will be very big in size with larger loading capacity.

Routing & transit time:

Transit time is the traveling time of the ship. It will differ according to the distance between destinations and to the sea route.

Transshipment:

Some ports will not have more sea depth. Hence the Mother Vessels can not enter into these ports. Even some ports have more sea depth, the Mother Vessel will not enter into these ports due to lesser port activities or taking more time to reach these ports, etc. To solve this problem, the small ships are used to take the containers to the nearest Bigger Port where the big mother vessels are available. These small ships are called Feeder Vessels.

For example, as Tuticorin port is small, the mother vessels do not come to this port. The nearest port is Colombo. Colombo port is very big. As this port is in the main sea route, most of the mother vessels are routing through Colombo port. The transit time between Tuticorin port and Colombo port is only 8 hours. Hence the feeder vessels are taking containers to Colombo port daily.

Thus the containers are sailed from Tuticorin port by feeder vessel. And in Colombo port, the containers are shifted (transshipped) to mother vessel. This system is called transshipment.

Also the mother vessels may not be able to reach some destination ports. Hence the containers may be transshipped to some other vessel from any other port in between. This is also called transshipment.

Freight charges are based on these transshipment expenses too.

Shipping lines:

The companies own the ships are called Shipping lines. These shipping companies operate their ships in the major ports around the world, according to their capacities. Some companies tie up their business with other shipping companies in some areas. If they don’t have their own vessel in a particular port area, their partner company will use their vessel.

The receipt of sea transport is called Bill of Lading – in short B/L. (We will discuss about this in detail later). Bill of Lading (receipt) will be generally issued by the shipping lines. As we discussed above, if there are more than one shipping line involved in one shipment or if the shipping line don’t have their office in our port, then the Bill of Lading will be issued by the Shipping agent or Liner’s agent. As this is a regular practice, most of the buyers will accept this.

Conference Lines:

Some big shipping lines are called Conference Lines. It means these companies will use only their own ships – for transshipments. It means from the port of loading to the port of destination, our goods will sail on one company’s ships. By using these Conference Lines, we will have more advantages like tracking the ships, better connection in transshipments, better safe, etc. Hence some buyers will insist to use conference lines.

Approximate sea freight from Indian ports inclusive of all charges:

To Far East ports like Singapore, Hong Kong, Taiwan, Japan, China, Bangkok:

20’ container: USD 1300 (Approx: Rs.58,500)

40’ container: USD 2100 (Approx: Rs.94,500)

To Middle East ports like Dubai, Kuwait, etc:

20’ container: USD 1200 (Approx: Rs.54,000)

40’ container: USD 2000 (Approx: Rs.90,000)

To African ports:

20’ container: USD 1400 (Approx: Rs.63,500)

40’ container: USD 2200 (Approx: Rs.99,000)

To European ports:

20’ container: USD 1600 – 1700 (Approx: Rs.72,000 – Rs.76,500)

40’ container: USD 2600 – 2700 (Approx: Rs.1,17,000 – Rs.1,21,500)

To American ports:

20’ container: USD 2000 (Approx: Rs.90,000)

40’ container: USD 3200 (Approx: Rs.1,44,000)

To Colombo port from Tuticorin port:

20’ container: USD 500 (Approx: Rs.22,500)

40’ container: USD 800 (Approx: Rs.36,000)

(This charge is suitable only if the Colombo is the final destination port).

AIR FREIGHT:

It is the freight charges if the goods are shipped by air. The advantage of sending the goods by air is to save time. Depending on the destination and on the flight services, the goods can reach the buyer’s place within 2 to 5 days. If the same goods send by sea it will take around 15 to 30 days depending on the destination.

At the same time, the Air freight charges are many times higher than sea freight. The goods will be loaded into the planes in box form. The charges are calculated by the weight and volume.

Air shipment procedures are almost same like sea shipment. The receipt is Airway Bill. There are Master Airway bill and House Airway bill. Master airway bill is issued by the Airlines. House airway bill is issued by the Airlines agent. (We will discuss about air shipment in detail later).

Approximate air charges from Indian air ports (inclusive of all charges):

To European airports: Rs.80 to Rs.110 per kg.

To American and Canadian airports: Rs.100 to Rs.140 per kg.

As like sea shipments, mostly all the air shipments will have transshipment. If the goods to be air shipped from a major airport to a major airport where there are direct cargo flights available, then only the shipment will go by a single flight.

As the freight charges are very high, most of the shipments will go by sea only. Only in case of the shipment is delayed or of urgent needs, the goods have to be sent by air.

Multimodal transport:

It is the combined transport of more different modes of transport. Some times, we have to send the consignment by Sea + Air. Some times by Sea + Air + Road. In these cases, the forwarding agent will arrange for all the connections and entire transports. Bills of Lading and Airway bills will be issued accordingly.

Calculation of the charges:

FOB terms:

Though the delivery term is FOB, we have to bear the local transport to the port, loading & unloading, customs clearing charges, stuffing charges, documentation charges, etc. It will come about Rs.1.00 to Rs.2.00 per garment depending on the distance to the port, volume of goods, etc.

C&F terms:

Based on the above details regarding C&F terms, the charges will come about Rs.4.00 to Rs.6.00 per garment depending on the volume of goods, distance between ports, routing, etc.

CIF terms:

The insurance charges are to be added with the above C&F charges. The insurance premium is calculated by 0.02% of the total value of goods. When we consider the value of goods, this charge is very nominal. Hence CIF charges are almost the same as C&F charges. But we should not forget to make the insurance cover.

PROFIT:

Now we have to add our profit margin with the above costs of garments. This profit includes the over heads (maintenance, electricity, office salary, bonus, incentives, interest for investments, depreciation of machineries, etc) and profit margin. It will vary from company to company depends on their size, machineries, standards, etc. For our calculation, let us work on 15% profit margin.

COMMISSION:

For some orders, we will have to give commission to the agent or the mediator. It may be 1% to 5% of FOB value. We have to add this commission, if any, with the above costs of garments.

Even if the terms are C&F or CIF, the agreed commission will have to pay on FOB value only.

Garment costing:

Now let us come back to the buyer’s enquiry No.3333. Now we have to find out the freight charges for the Men’s Basic T shirt which we have taken for example.

As the delivery terms have been mentioned in the buyer’s enquiry as ‘FOB’, we don’t have to add sea freight. But we have to add the local transport with the cost of garment. It may be approximately Re.1 per garment.

Let us recall our earlier costing.

                                       Light cols     Medium cols     Dark cols

Fabric cost per garment                                   = Rs.37.50            39.50                43.60

Other charges (print, etc.)                               =      --                     --                       --

Cost of trims (labels, tags, etc)                       = Rs.  0.85              0.85                  0.85

CMT charges                                                   = Rs.10.00            10.00                10.00

Cost of accessories (polybags, cartons, etc)    = Rs.  1.35              1.35                  1.35

                                                                        = Rs.49.70            51.70                55.80

Rejection of garments (commonly 3%)          = Rs.  1.50              1.55                  1.70

Cost of garment                                              = Rs.51.20            53.25                57.50

Now we add the local transport                     = Rs.  1.00              1.00                  1.00

                                                                        = Rs.52.20            54.25                58.50

Profit @ 15%                                                  = Rs.  7.85              8.15                  8.80

                                                                        = Rs.60.05            62.40                67.30

As there is no commission to be paid             =      -------             ------                -------

Prices of garment                                            = Rs.60.05            62.40                67.30

Now we have to convert these prices in to USD or Euro.

Let us convert this into USD as per the current exchange rate which is Rs.45.00 = 1 USD.

Then we will get following prices.

For Light colours     : Rs.60.05 divided by 45.00 = USD 1.33

For Medium colours: Rs.62.40 divided by 45.00 = USD 1.39

For Dark colours      : Rs.67.30 divided by 45.00 = USD 1.50

We understand that the quantities of Light, Medium and Dark colours are equal, as it is mentioned in the buyer’s enquiry 3333. Hence we have to find out the average price for the above prices. It is USD 1.39 per pc.

Cost of Quota:

If the style is under Quota, then the cost of quota is to be added with this price. Anyhow, the quota system will be removed from January 2005. But the Quota Category and Harmonised Code Numbers will be the same as we use now.

When giving our prices to our buyer, we have to inform like this.

-          Complete description (as per our calculation) to be mentioned.

-          If we made any change in buyer’s details, it has to be mentioned.

-          If we expect any price hike in near future, we can mention the validity for our prices.

-          Quota category to be mentioned.

-          Delivery terms to be mentioned. FOB / C&F / CIF.

If the terms are C&F and CIF, it is better to mention as C&F / CIF By Sea.

-          If the commission is added, it has to be mentioned.

Now for the buyer’s enquiry 3333, we give the price to buyer as follows.

Enquiry    Style No.                     Description                                                      Price / pc

3333           AAAA      Men’s Basic T shirt – Short Sleeves –

                                    100% Cotton 140GSM Single Jersey –

                                    1x1 rib at neck – solid dyed – Light, Medium, Dark

                                    colours in equal ratio – Sizes: S, M, L, XL, XXL.

                                    Quantity: 20,000 pcs.

                                    Quota Category: 4                                                              USD 1.39

Pls note the above prices are FOB.

If we give the prices to the buyer in the above format, it will be clear for him. Also it will be clear for our reference too.

Now let us see how to make costing for Men’s all over printed Polo shirts, Ladies Night dress, Men’s Pyjamas and Men’s Pique Polo shirts, one by one.

TRIAL COSTING NO.2

EXAMPLE ENQUIRY FOR MEN’S POLO SHIRTS (FOR CANADA):

Enquiry No.: 4444        Style Ref: BBBB

Description: Men’s Polo shirt – Short sleeves – 100%Cotton 190GSM Single Jersey –

All over printed on Offwhite base – 50% to 60% print coverage - Pigment print with soft hand feel – Flat knit collar with raised tipping – 3 buttoned placket – Half moon patch – Side slits – self fabric neck tape - Hanger pack.

Label: Woven Brand label + size label to be attached to inside half moon patch.

           Polyester printed wash care label to be stitched at inside left bottom 4” above hem.

Hang tag: Brand name printed tag. Style No, Size, Colour to be printed on back side. To be attached with second button with a silk rope.

Price tag: Will be supplied by buyer. To be attached with second button with hang tag.

Hanger: Plastic hanger with logo embossed + size marker. (Pls find the attached details).

Polybag: Hanger polybag with Style No., Size, RN no., safety instructions printed.

Sizes: S, M, L, XL, XXL

Ratio: 1 : 3 : 4 : 3 : 1

Packing: Solid colour.12 pcs in assorted sizes to be packed in an export carton.

Shipping Marks: To be printed on both length side of carton.

Export carton: 7 ply 100GSM Virgin corrugated – sea worthy.

Quantity: 48,000 pcs.

Measurements in Inches:

                 Size: L

Back length                                         = 30.5

Chest Circumference                                      = 48

Sweep                                                             = 48

Across shoulder                                  = 21.5

Armhole circumference                       = 23

Sleeve length from centre back           = 21.5

Cuff circumference                             = 16.25

Cuff opening                                       = 14.25

Collar neckline circumference = 17.5

Collar height                                       = 2.75

Collar point                                         = 2.75

Collar spread                                       = 4.5

Placket length                                     = 7

Placket width                                      = 1.5

For your reference, I have given you the full measurements.

Let us recall the steps once again.

1. Fabric consumption.
2. Gross weight of all parts of garment.
3. Fabric cost per kg.
4. Fabric cost per garment.
5. Other charges (print, embroidery, etc.)
6. Cost of trims (labels, tags, badges, twill tapes, buttons, bows, etc.)
7. CMT charges
8. Cost of accessories (hangers, inner boards, polybags, cartons, etc)
9. Cost of a garment.

Remember, the measurements in inches to be converted into Centimetres.

Chest (circumference)                         = 48 inches

Body length                                        = 30.5 inches

Sleeve length (from centre back)        = 21.5 inches

Chest circumference is 48 inches. It should be divided into 2 to get ½ chest. So it will be 24 inches. That is, 61cms. As this is all over print program, then the print wastage on sides will be about 2 inches (5cm) average. Also the allowance for cutting and stitching is to be added which is about 2 cm. So the calculation chest will be 61 + 5 + 2 = 68cm.

Body Length is 30.5”. That is 77.5cm. As this is all over print program, there will be some extra length is needed to straight the print design. 4 cm is to be added with body length.

That is, 77.50 + 4 = 81.5 cm.

Sleeve length from centre back is 21.5inches. For our calculation, we need the sleeve length from the shoulder point. If we deduct ½ shoulder length from centre back sleeve length, we will get sleeve length from shoulder point. That is,

Sleeve length from shoulder point = CB Sleeve length – ½ shoulder length.

                                                       = 21.5” – ½ (21.5”)

                                                       = 21.5” – 10.75”

                                                       = 10.75”

                                                       = 27.3 cm

The allowance for cutting and sewing for both body length & sleeve length can be 12cm.

Now let us do the calculation.

Consumption:  (Body length + Sleeve length + allowance) X (Chest + allowance) X 2 X GSM

                                                                                    10000

                      :  (81.5 + 27.3 + 12) X (68) X 2 X 190

                                                10000

                      :  (120.8) X (68) X 2 X 190

                                                10000

Body & sleeves  :  312 grams.

Half moon patch:    15 grams.

Placket               :    15 grams.

Collar                 :    40 grams.

                            --------------

Gross weight      :  382 grams. (0.382 kg)

                            --------------

So the fabric consumption per garment is 382 grams.

FABRIC COST PER KG (In Rs):

24’s combed yarn            =     120.00

Knitting charge              =         8.00

Dyeing charge                =       30.00

Printing charge                =       50.00

Fabric enzyme wash       =       15.00

Open width compact       =       12.00

                                              ----------

                                                235.00

Fabric wastage @ 10%   =        23.50

                                              ----------

Fabric cost per Kg        =Rs.258.50

                                              ----------

FABRIC COST PER GARMENT (In Rs):

Fabric cost per garment    = (Fabric cost per Kg) X (Gross weight of fabric in grams)

                                                                        1000 grams

                  = 258.50 X 382

                                                    1000

                                   

Fabric cost per garment    = Rs. 98.75

COST & PRICE OF GARMENT (In Rs):

Fabric cost per garment                                   = Rs.  98.75

Other charges (print, embroidery, etc.)           =        --      

Cost of trims (labels, tags, rope, etc)              = Rs.    2.50

CMT charges                                                   = Rs.  18.00

Cost of accessories – Hanger + sizer              = Rs.    5.00

                               – Hanger polybag            = Rs.    3.00

                   – Carton, packing materials         = Rs.    2.00

Local freight charges + shipping expenses     = Rs.    2.00

                                                                        = Rs.131.25

Rejection of garments (commonly 3%)          = Rs.    3.95

Cost of garment                                              = Rs.135.20

Profit & overheads @ 15%                             = Rs.  20.30

Price of garment                                              = Rs.155.50

That is the FOB price is USD3.45 per pc.

TRIAL COSTING NO.3

EXAMPLE ENQUIRY FOR LADIES NIGHT DRESS (FOR EUROPE):

Enquiry No.: 5555        Style Ref: CCCC

Description: Ladies Night Dress – Short sleeves – 100%Cotton 140GSM Single Jersey –

Solid dyed – Pastel colours – Plastisol print in chest – Round neck – binding with the self fabric - Label: Woven Brand label + size label to be sewn at centre neck.

           Polyester printed wash care label to be stitched at inside left bottom 10cm above hem.

Hang tag: Brand name printed tag. To be attached with the main label.

Price tag: Will be supplied by buyer.

Polybag: Each pc in to an individual polybag with style no., size and warning instructions printed.

Sizes: S, M, L, XL.

Ratio: 1 : 2 : 2 : 1

Packing: Solid colour.24 pcs in assorted sizes to be packed in an export carton.

Shipping Marks: To be printed on both length side of carton.

Export carton: 7 ply 150GSM Virgin corrugated – sea worthy.

Quantity: 16,000 pcs.

Terms: C&F Rotterdam port.

Measurements in Cms:

                 Size: L

Chest                           =   52

Waist                           =   60

Bottom sweep                         =   75

Body length                = 110

Sleeve Length             =   20

Let us do this directly as an exercise.

Consumption:  (Body length + Sleeve length + allowance) X (Chest + allowance) X 2 X GSM

                                                                                    10000

                      :  (110 + 20 + 12) X (75 + 2) X 2 X 140

                                                10000

                      :  (142) X (77) X 2 X 140

                                                10000

Body & sleeves  :  306 grams.

Neck piping        :    10 grams.

                            --------------

Gross weight      :  316 grams. (0.316 kg)

                            --------------

So the fabric consumption per garment is 316 grams.

FABRIC COST PER KG (In Rs):

34’s combed yarn            =     135.00

Knitting charge              =         8.00

Dyeing charge                =       50.00

Compacting                     =         6.00

                                              ----------

                                                199.00

Fabric wastage @ 5%     =        10.00

                                              ----------

Fabric cost per Kg        =Rs.209.00

                                              ----------

FABRIC COST PER GARMENT (In Rs):

Fabric cost per garment    = (Fabric cost per Kg) X (Gross weight of fabric in grams)

                                                                        1000 grams

                  = 209.00 X 316

                                                    1000

                                   

Fabric cost per garment    = Rs. 66.00

COST & PRICE OF GARMENT (In Rs):

Fabric cost per garment                                   = Rs.  66.00

Other charges – chest printing                        = Rs.    6.00     

Cost of trims (labels, tags, etc)                       = Rs.    2.00

CMT charges                                                   = Rs.  12.00

Cost of polybags, carton, packing materials   = Rs.    3.00

Local freight + sea freight + expenses            = Rs.    5.00

                                                                        = Rs.  94.00

Rejection of garments (commonly 3%)          = Rs.    3.00

Cost of garment                                              = Rs.  97.00

Profit & overheads @ 15%                             = Rs.  15.00

Price of garment                                              = Rs.112.00

That is, the C&F price is USD2.50 per pc.

When giving this price to buyer, it is better to mention as ‘Price USD2.50 C&F Rotterdam By sea’.

TRIAL COSTING NO.4

EXAMPLE ENQUIRY FOR MEN’S LONG PYJAMAS (FOR EUROPE):

Enquiry No.: 6666        Style Ref: DDDD

Description: Men’s Long Pyjamas - 100%Cotton 240GSM Interlock – Elastic waist band with DTM rope – with side pockets – without fly – Brand patch label to be stitched at front centre outside waist - 1x1 rib at bottom legs - Solid dyed – Black, Navy and Grey Melange –  Equal quantity ratio.

Label: Woven Brand label with size indication to be inserted at inside centre back waist.

           Polyester printed wash care label to be inserted near main label.

Hang tag: Brand name printed tag. To be sewn at front waist.

Polybag: Each pc in to an individual polybag with style no., size and warning instructions printed.

Sizes: S, M, L, XL, XXL.

Ratio: 1 : 2 : 3 : 2 : 1

Packing: Assorted Colours + assorted sizes.

   1 assortment x 3 colours per carton. 9 pcs x 3 = 27 pcs per carton.

Shipping Marks: To be printed on both length side of carton.

Export carton: 7 ply 150GSM Virgin corrugated – sea worthy.

Quantity: 13,500 pcs.

Terms: FOB

Measurements in Cms:

                 Size: L

Waist relaxed                          =   50

Waist extended                       =   58

Waist band width                   =     4

Outer length incl waist band   =   88

½ Thigh                                   =   27

½ Seat                                     =   58

Front rise incl waist band        =   24

Back rise incl waist band        =   31

Inseam                                     =   62

Leg rib height                          =     5

Before making the costing, let us see how to find the fabric consumption.

There are 2 ways. If we have the measurements of ½ seat and outer length, it is easier by using following formula.

Consumption  = (1/2 seat + allowance) X (outer length + allowance) X 2 X GSM

                                                                  10000

                        = (58 + 4) X (88 – rib height + 8) X 2 X 240

                                                            10000

                        = (62) X (88 – 5 + 8) X 2 X 240

                                                10000

                        = 62 X 91 X 2 X 240

                                        10000

Consumption   = 270 grams.

2 Pockets         =   70 grams

Leg rib             =   20 grams

Total                = 360 grams

If we don’t have ½ seat and outer length measurement, we can find consumption by using following formula. For using this formula, we must know the measurements of thigh, front rise, back rise & inseam.

If the buyer has given ½ thigh measurement, we multiply this by 2 so that we have one full thigh circumference measurement. We have to work prices with the largest measurements. Width wise, the seat is the largest measurement. But we don’t know the seat measurement. We know only thigh measurement. In this case, we have to add 4 cm with the full thigh measurement to get approximate seat measurement.

Consumption   = (full thigh circumference + 4cm + allowance) X (backrise + inseam -5cm due to curve – leg rib height + allowance) X 2 X GSM

      10000

                        = (54 + 4 + 4) X (31 + 62 – 5 - 5 + 8) X 2 X 240

                                                            10000

                        = (62) X (91) X 2 X 240

                                       10000

Consumption   = 270 grams

2 Pockets         =   70 grams

Leg rib             =   20 grams

Total                = 360 grams

‘S’ program:

For the long pants and shorts, if we cut the fabrics in regular style, the wastage will be more. Hence if the program is Solid program, we can cut the fabrics by marking one leg in the up direction and the other leg in the opposite down direction keeping as close as possible. This cutting style is called ‘S’ cutting. By this way, we can minimise the wastage. By doing like this, we can quote prices more accurately, reasonably and competitively.

We must remember that this ‘S’ cutting is possible only for Solid programs and not possible for all over print programs. If we use ‘S’ cutting for all over print programs, the print direction will be opposite between legs. This is not acceptable. For some flower design prints or mixed design prints for which maintaining direction is not needed, we can use ‘S’ cutting.

Let us continue the costing of trial costing no.4, Men’s Long Pyjamas.

FABRIC COST PER KG (In Rs):

30’s combed yarn            =     130.00

Knitting charge              =       18.00

Dyeing charge (average) =       60.00

Compacting                     =         6.00

                                              ----------

                                                214.00

Fabric wastage @ 5%     =        10.70

                                              ----------

Fabric cost per Kg        =Rs.224.70

                                              ----------

FABRIC COST PER GARMENT (In Rs):

Fabric cost per garment    = (Fabric cost per Kg) X (Gross weight of fabric in grams)

                                                                        1000 grams

                  = 224.70 X 360

                                                    1000

                                   

Fabric cost per garment    = Rs. 80.90

COST & PRICE OF GARMENT (In Rs):

Fabric cost per garment                                   = Rs.  80.90

Elastic 4cm                                                      = Rs.    4.00

Waist rope                                                       = Rs.    1.00

Woven patch label                                          = Rs.    0.60     

Cost of trims (labels, tags, etc)                       = Rs.    2.00

CMT charges                                                   = Rs.  15.00

Cost of polybags, carton, packing materials   = Rs.    3.00

Local freight + expenses                                 = Rs.    2.00

                                                                        = Rs.108.50

Rejection of garments (commonly 3%)          = Rs.    3.25

Cost of garment                                              = Rs.111.75

Profit & overheads @ 15%                             = Rs.  16.75

Price of garment                                              = Rs.128.50

That is, the FOB price is USD2.85 per pc.

TRIAL COSTING NO.5

EXAMPLE ENQUIRY FOR MEN’S PIQUE POLO SHIRTS (FOR EUROPE):

Enquiry No.: 7777        Style Ref: EEEE

Description: Men’s Pique Polo shirt – Short sleeves – 100%Cotton 220GSM Pique – Half moon patch – Flat knit collar & cuffs – Small logo embroidery at chest – 3 horn buttoned placket –

Side slits with DTM twill tape – DTM twill tape at neck.

Solid dyed – 60%White, 20%Black, 20%Grey Melange.

Label: Woven Brand label to be attached at centre of neck.

           Woven Size + wash care label is to be attached at neck near main label.

Hang tag: Brand name printed tag. Style No, Size, Colour to be printed on back side. To be attached with main label.

Price tag: Will be supplied by buyer. To be attached with main label.

Polybag: Individual polybag with Style No., Size, warning instructions printed.

Sizes: S, M, L, XL, XXL

Ratio: 1 : 2 : 3 : 2 : 1

Packing: Solid colour. 4 assortments x 9 pcs = 36 pcs to be packed in an export carton.

Shipping Marks: To be printed on both length side of carton.

Export carton: 7 ply 150GSM Virgin corrugated – sea worthy.

Quantity: 72,000 pcs.

Measurements in Cms:

                 Size: L

½ Chest                                               = 58

Back length                                         = 75

Sleeve length incl cuff                        = 24

Consumption:  (Body length + Sleeve length + allowance) X (Chest + allowance) X 2 X GSM

                                                                                    10000

                      :  (75 + 24 + 12) X (58 + 3) X 2 X 220

                                                10000

                      :  (111) X (61) X 2 X 220

                                                10000

Body & sleeves  :  298 grams.

Half moon patch:    15 grams.

Placket               :    15 grams.

Collar                 :    40 grams.

Cuffs                  :    40 grams.

                            --------------

Gross weight      :  408 grams. (0.408 kg)

                            --------------

FABRIC COST PER KG (In Rs):

30’s combed yarn            =     130.00

Knitting charge              =       15.00

Dyeing charge (average) =       45.00

Compacting                     =         6.00

                                              ----------

                                               196.00

Fabric wastage @ 5%   =           9.80

                                              ----------

Fabric cost per Kg        =Rs.205.80

                                              ----------

FABRIC COST PER GARMENT (In Rs):

Fabric cost per garment    = (Fabric cost per Kg) X (Gross weight of fabric in grams)

                                                                        1000 grams

                  = 205.80 X 408

                                                    1000

                                   

Fabric cost per garment    = Rs. 83.95

COST & PRICE OF GARMENT (In Rs):

Fabric cost per garment                                   = Rs.  83.95

Embroidery                                                     = Rs.    3.00     

Cost of trims (labels, tags, etc)                       = Rs.    2.00

Twill tape                                                        = Rs.    1.00

CMT charges                                                   = Rs.  18.00

Polybag, carton, packing materials                 = Rs.    2.00

Local freight charges + shipping expenses     = Rs.    2.00

                                                                        = Rs.111.95

Rejection of garments (commonly 3%)          = Rs.    3.35

Cost of garment                                              = Rs.115.30

Profit & overheads @ 15%                             = Rs.  17.30

Price of garment                                              = Rs.132.60

That is, the FOB price is USD2.95 per pc.

The descriptions, measurements and costings given above are only for the reference of working procedures and calculations.

PAYMENT TERMS

For every business, payment is the very important thing. To do safer business, we have to be sure of getting prompt payment. We are producing the goods by spending money, time, labour, efforts, etc. After manufacturing and exporting the goods we have to get the money from the buyer in time. If there is any problem in getting payment from the buyer, we will be in great trouble. Hence we must be very careful in payment terms.

There are different terms followed in Export business. They are L/C, D/P and D/A terms.

L/C (Letter of Credit):

As this is the safest payment terms especially for the sellers, every seller wishes to do business on L/C terms.

After confirming the garment style, price, quantity, delivery terms, etc, the seller (exporter) is to send the Sales Contract to the buyer. Or the buyer (importer) is to send the Purchase Order to the seller. After signing these documents, the buyer will open the L/C through their banker. Buyer’s bank will send the L/C to the seller’s bank by telex or swift.

Here we have to remember that the buyer’s bank will proceed for L/C opening, only according to the financial strength, business performance and the securities of the buyer with their bank.

In the L/C many conditions will be mentioned by the buyer. Let us see the important conditions and the L/C format below.

1. Opening bank address: Buyer’s bank is called the opening bank or issuing bank.
2. Form of Documentary Credit (Letter of Credit): It has to be mentioned as ‘Irrevocable Transferable’. Irrevocable means can not be rejected. It means, after opening the L/C, it can be cancelled without the consent of seller and buyer.
3. DC No.: Issued by the opening bank.
4. Date of (L/C) opening:
5. Expiry Date and place: It is generally 12 or 15 days from the date of shipment. This period of 12 or 15 days is given for submitting the required documents. If the place is mentioned as the Country of Applicant (buyer), it means the documents should reach the buyer’s bank before the expiry date mentioned. Even if we send the documents in time, the documents may reach buyer’s bank with a delay, that is, after this expiry date. Hence it is always safer for seller to get it mentioned the place as the Country of Beneficiary.
6. Applicant (Address of buyer):
7. Beneficiary (Address of seller):
8. DC amount: It should be in the foreign currency such as USD, Euro, etc. according to the sales contract or purchase order.
9. Percent or Amount tolerance: Normally Plus or Minus 5% is allowed in amount & quantity. As it is not possible to ship the exact quantity, this tolerance is to be mentioned.
10. Available with / by: It has to be mentioned as ‘Any bank in country of beneficiary’. It means, after submitting the documents to the seller’s bank, the Invoice amount can be negotiated and can be credited into seller’s account based on the seller’s financial credit limit with the bank. If it is mentioned as ‘Opening bank’, then the documents can not be negotiated.
11. Drafts At: To be mentioned as ‘Sight for the full value’.
12. Drawee: It will be mentioned as the opening bank.
13. Partial shipments: It is safer for the seller to be mentioned as ‘Allowed’.
14. Transhipment: It is safer for the seller to be mentioned as ‘Allowed’.
15. Loading/Dispatch at/from: India or Any Indian port.
16. For Transportation to: Buyer’s country port (Final destination port).
17. Latest date of shipment:
18. Description of Goods: Style of garments, quota, price per garment (unit price), quantity to be mentioned clearly. (Some times buyer will ask us to issue the Proforma Invoice in which we have to mention all these details. In this case, in this clause, it will be mentioned as ‘As per the Proforma Invoice No…& date…).
19. Trade terms: FOB or C&F or CIF and whether By Sea or By Air to be mentioned.
20. Documents required: Very important clause. Following documents will be required.

1. Commercial Invoice - Original and 2 copies.
2. Full set clean on board marine Bills of Lading plus 2 Non-negotiable copies (in case of sea shipment).

Original clean airway bill or House airway bill consigned to the consignor (buyer) made out to the order of issuing bank. (When we make the air shipment, we must me careful about this clause. The airway bill has to be mentioned as ‘to the order of issuing bank’. Then only the buyer’s bank will hold responsibility for our documents. Otherwise, if the buyer’s bank is is not mentioned in the airway bill, the buyer may take delivery of documents from his bank without giving any guarantee for the payment).

3. Packing List – Original and 2 copies.
4. Beneficiary’s letter – stating that one set of copy documents sent by courier to the applicant within 3 days after the shipment. With this copy of documents, the originals of Export Certificate, Certificate of Origin, GSP Form A, Visa to be sent to buyer by courier. (These documents will vary from country to country and from quota to non-quota. Buyer will need these original documents soon after the shipment is made which enable him to get the import license from the buyer’s country authorities. Without the import license, the buyer can not clear the goods from the port. To avoid the demurrage charges at the buyer’s port, it is essential to apply and to get the import license well in advance before the vessel reaches the destination port).
5. Copies of Export Certificate, Certificate of Origin, GSP Form A, Visa, etc.
6. Original Insurance policy – in terms of CIF. (The insurance to be made for the account of buyer for the value of 110% of the value of goods. It means if there is any damage or theft or loss, the buyer can claim by himself for himself).
7. Inspection Certificate (if any) - issued by the buyer’s agent or buying office nominated by the buyer or by any third party testing organization.

21. Additional conditions: General conditions like discrepancy charges, documents dispatch instructions, transferring conditions, etc., will be mentioned here. These conditions to be followed promptly to avoid the discrepancy charges and deduction of payment.
22. Details of charges: It is generally mentioned as ‘All charges outside country of issue for account of beneficiary / exporter’.
23. Period of presentation: Within 21 days after the date of shipment but within the validity of the credit. (It means we have to submit the complete documents to our bank as per this L/C conditions before the expiry date of this L/C).
24. Confirmation instructions: As the L/C’s are transmitted by telex or swift, after receiving this L/C, our bank don’t have to wait for any other confirmation of this L/C. So this clause will always be mentioned as ‘Without’.
25. Information to presenting bank: It is the information given by the opening bank to our bank about making the payment.
26. Bank to bank info: It is the information given by the opening bank to our bank about the transfer of L/C.

L/C amendment:

After receiving the L/C, the exporter should read all the L/C conditions word by word thoroughly. There may be some mistakes or changes or differences in address or description or price or amount or shipment date or validity extension or documents clauses or anything else which are against our earlier acceptance. In this case, the exporter should inform them clearly to the buyer and should ask him to change them in the L/C. This is called L/C amendment. Accordingly the buyer will ask his bank to make the amendment. As our bank received the L/C, it will receive the L/C amendment also by telex or swift. This amendment should be considered as the integral part of the L/C. Some times, the amendments are made several times.

We have to remember that the buyer’s bank will charge the exporter for each amendment. This amount would be deducted when they are making the payment for the bills. To avoid these amendment charges, before opening L/C, it is always better to get the L/C application copy from the buyer. Each buyer will follow different L/C conditions and documentation according to their working systems and convenience. Hence we have to be careful in accepting their conditions before commencing their orders.

Importance of B/L and Airway Bill:

We have to remember that the buyer can clear the goods from his port or airport only with B/L or Airway bill. Without these documents, he can not clear the goods from his customs. As we have to be careful of these important documents, let us see the importance and procedures of them.

B/L:

As we see above, B/L is issued by shipping company or shipping agent or forwarding agent. Though we call it a B/L in singular, it is a set of following originals and copies.

-          B/L Originals (Negotiable documents) – 3 Nos.

-          B/L Copies (Non-negotiable documents) – 4 or 6 or more Nos.

Only the originals have got value. Hence they are very important.

Non-negotiable documents are having no value. They are only the copies.

There will be 3 Original B/L’s (Bills of Lading). It is called Negotiable documents. These 3 original B/L’s are called ‘FULL SET OF B/L’ or ‘3/3 B/L’. With these original B/L’s only, buyer can clear the goods. We should not forget that with One original B/L, the buyer can clear the goods.

Hence we must be sure of sending ‘Full set of B/L’ only through the bank. Some buyer may mention in the L/C to submit 2/3 B/L and the balance 1/3 B/L to send by courier. If we agree to this and if we send 2 of 3 B/L through bank and 1 of 3 B/L through courier, the buyer will take delivery of the goods by showing this 1 original B/L. This 1 original B/L is enough for him to clear the goods. Already he would have all the other copies of documents. He will not need our other documents which we sent through the bank. Hence there is no need for him to make payment to get the bank documents. Though we were careful in production, quality, pricing, documentation, etc., as we sent the 1 original B/L by courier, we don’t get the payment. In this case, we can approach International Arbitrary Committee for the settlement of the payment. But it is a long process which will take more time, money, stress and tension. To avoid all these things, we must be sure of this clause in L/C. In ‘Documents required’ clause, it has to be mentioned as

‘FULL SET CLEAN ON BOARD MARINE BILLS OF LADING…………..’

                                                OR

‘3/3 CLEAN ON BOARD MARINE BILLS OF LADING…………………...’

If is mentioned other than this, exporter should ask the buyer to make the amendment immediately without fail.

Airway Bill:

For the air shipment the terms are different. After the air shipment, the airlines or airlines agent will issue Master Airway bill or House Airway bill. There will be 3 AWBs. They are

1. Consignor’s copy (exporter’s copy)
2. Consignee’s copy (importer’s copy)
3. Consignment copy.

Consignor’s copy can be kept with the exporter.

Consignee’s copy is to be sent to the buyer.

Consignment copy will travel along with the consignment (goods).

Now the question is for sending Consignee’s copy to the buyer. We have to remember the fact that the goods will reach buyer’s airport within 2 or 3 days or maximum within a week. The buyer has to clear the goods from the airport within 3 days from the date of arrival. After 3 days, the airport will charge for demurrage. It will be heavy amount. To avoid this demurrage charges, buyer has to clear the goods within 3 days from the date of arrival. Also for clearing the goods, buyer will need the original AWB.

But as per L/C condition, we have to send the original AWB through bank and it will take more time to reach buyer’s bank. Then the buyer will be in trouble to pay the demurrage. To avoid this practical problem, the buyer will get the cooperation from the airport customs authorities. Normally they will release the goods to the buyer on receipt of photocopy or fax copy of AWB. They will verify the photocopy with the original Consignment copy.

Here comes the problem for exporter. After taking delivery of goods from the airport, buyer does not need other documents from the bank. Hence if he does not want to make payment to the exporter, he will not clear the payment. Then buyer’s bank will not take responsible for the payment. Then, as we had seen in sea shipment above, we have to approach International Arbitrary Committee.

To avoid this serious problem and to be on safer side, the exporter should be made sure that in the L/C, it is mentioned as follows.

‘Original clean airway bill or house airway bill MADE OUT TO THE ORDER OF ISSUING BANK, showing master airway bill number and dispatch date, this document credit number and NOTIFY THE APPLICANT’.

It means in the airway bill both buyer’s bank address and buyer’s address will be mentioned. If the buyer’s bank’s name is mentioned in the airway bill, the airport authority will not release the goods to buyer without his bank’s confirmation or endorsement on airway bill. Once the airway bill is endorsed by the buyer’s bank, the buyer’s bank is responsible for the payment.

We have to remember, if the bank’s name is not mentioned in the airway bill, it is not safe for the supplier.

Documentation:

Some buyers may purposely find out any small deviation or small mistake in our documents, in order to get the claim or discount. Hence to be on the safer side, the exporter should take much care to prepare the documents without even a small mistake. To be specified exactly, even commas, full stops, etc are to be taken care.

We have to fulfill all the L/C conditions and to submit all these documents exactly as per the requirements to our bank. Then after checking and scrutinizing them, our bank will send the documents to buyer’s bank by courier – as per the instruction given in this L/C.

On receipt of these documents, the buyer’s bank will check and scrutinize whether all the documents are according to the L/C conditions. If everything is OK, the buyer’s bank will inform the buyer about their receipt of the documents. According to the buyer’s confirmation, the buyer’s bank will make the payment to our bank and will hand over the documents to the buyer.

Even though the buyer’s bank makes the payment to our bank, it will reach our bank through another bank according to the currency of this L/C. If the currency is US Dollars and if the buyer’s bank is not in United States, then the buyer’s bank will send the payment to the American bank. And the American bank will make the payment to our bank. If the currency is Euro and if the buyer’s bank in not in European Union, then the buyer’s bank will send the payment to the European bank (according to their counter banks) and the European bank will make the payment to our bank. It is the same procedure for other currencies also.

Due to all the above procedures and formalities, our bank will get the payment usually in 15 days from the date of dispatching the documents from our bank. We have to note that this is the usual period, if the buyer instructs his bank to make the payment immediately on sight of the documents at his bank. If the buyer wants to make the payment with a delay, it will take more time for our bank to get the payment.

Different terms of L/C:

Even in L/C terms, there are different systems like At Sight L/C, 30 days L/C, 60 days L/C, 90 days L/C and 120 days L/C. Payment terms is to be discussed and to be confirmed between the seller and the buyer during confirming the export orders and before opening L/C.

At Sight L/C:

As per this term, the buyer / buyer’s bank has to make the payment as soon as they receive the documents from our bank. In other words, they are making the payment at the sight of documents. Hence it is called At Sight L/C.

Even in this term, if the buyer wants to delay the payment for any reason, he can do it. Some buyers will instruct their bank to release the payment as soon as their banks receive the documents and if they are acceptable as per the L/C conditions.

Some buyers will not make the payment immediately on receipt – even though the L/C is At Sight. We must note that the documents will reach the buyer’s bank within 7 days from the date of shipment. But the vessel will reach the buyer’s destination port around 20 to 30 days from the date of shipment. As the buyers will need the documents only to clear the goods from the port, some buyers will ask their banks to hold the documents till the vessel arrives in their port. In this case, in order to hold the documents for some days, the buyer’s bank will inform our bank that there are some discrepancies in our documents and due to this they are holding the documents and waiting for buyer’s confirmation. We may be shocked on seeing the discrepancy letter from the buyer’s bank, even though the discrepancies are not true. As soon as we receive the discrepancy letter, we must know from the buyer whether he is willing to pay and wants to hold the documents for a while or he does not want to pay our bills. If he only wants to hold the documents for a while, then we can assume that he is waiting for the arrival of the vessel to his port.

Here we have to see a very important thing. All the L/C’s are subject to the terms and conditions of UCP 500 (Uniform Customs and Practices of Documentary Credits 1993 issued by International Chamber of Commerce). All the importers and exporters who are doing business on L/C’s are to follow the directions and rules made under UCP 500.

Accordingly, if the buyer wants to hold the documents for some time, he should ask his bank to hold the documents by informing some discrepancies to the exporter’s bank. Here comes the important thing. The discrepancies should be intimated to the exporter’s bank within 7 working days from the date of receipt of documents. After 7 working days, the buyer’s bank can not send discrepancy letter. If the bank did not or failed to intimate any discrepancy to exporter’s bank within these 7 working days, the bank should honour the exporter’s bill what ever it may be. Even if the buyer does not want to make the payment, the bank has to release the payment to the exporter’s bank. This clause is made to the advantage of the exporters by International Chamber of Commerce.

Some times, some dishonest buyers will not make the payment immediately on sight. They use to send the discrepancy letter first. After that he will not make the payment. The exporter should ask him again and again by phone, fax or email to make the payment. But these buyers will say different stories with the intention of not making the payment or to get some discounts or claims from the exporters. They even say that they don’t want the goods and will ask the exporters to get their goods back. As the exporters will face many problems with their bank if the payment for their bills is not received and as there are so much of procedures and formalities to re import their goods and as they will loose huge money and reputation, the exporters always need to get the payment with some discounts or claims. These dishonest buyers know these things clearly and would make the exporters to accept discounts or claims.

Some reasonable and genuine buyers will clear the goods after making the payment. But when they notice some real defects or deviations or quality complaints in the goods, they will ask for some discounts or claims. If the seller is having good relationship and understanding with buyer, the buyer will accept to adjust this claim amount in the future orders. As these buyers are genuine, they will accept a reasonable discount or claim from the exporters. Here we have to remember the rules of Reserve Bank of India regarding discount or claim. It is allowed a maximum of 10% of the bill amount, if the claim is to be settled before making the payment by the buyer. And it is allowed a maximum of 15% of the bill amount, if the claim is to be settled after making the payment by the buyer. This percentage is subject to be changed according to the amendment of Reserve Bank of India.

30 days, 60 days, 90 days, 120 days L/Cs:

The conditions and procedures are the same as At Sight L/C. Only difference is, in the ‘Drafts By’ clause, it is to be mentioned as ‘30 days or 60 days or 90 days or 120 days from the date of receipt of documents’. It can also be mentioned as ‘30 days or 60 days or 90 days or 120 days from the date of Bill of Lading’.

If the L/C is ‘30 days from the date of receipt of documents’, the buyer’s bank will release the documents to the buyer, as soon as they receive from the seller’s bank. Then without paying the money to the bank, the buyer will get the documents and will take delivery of goods. Then the bank will release the payment to seller’s bank after 30 days from the date of receipt of documents.

It the L/C is ’30 days from the date of B/L’, the buyer’s bank will release the payment to seller’s bank after 30 days from the date of B/L.

In the same way, the other L/Cs for 60days, 90days, 120days are treated and followed.

In these terms, the buyer will take delivery of goods before making the payment. Hence after taking delivery, he will have time to check the quality of the goods. If there is any quality problem, buyer can claim any discount before making the payment. Hence seller has to be double-careful about the quality and other things, at least to get the payment without any claim.

As we have seen, At Sight L/C is much safer to the seller. If the buyer does not agree to open At Sight L/C, the seller can prefer this. As the buyer’s bank will take responsibility of the payment, the seller can give preference for these 30days or 60 days L/Cs next to At Sight L/C.

Revolving L/C:

Generally the L/C’s are opened for only one shipment. In this case, few partial shipments are allowed. Also one L/C can be opened for different goods to be shipped in different shipment dates. These are all normal L/Cs. There is another type of L/C which is called Revolving L/C.

If there is a steady business with buyer and seller and if they have agreed for the supply of goods continuously for a longer period, they will work on this Revolving L/Cs. By this kind of L/C, there is no need for buyer to open several fresh L/Cs many times. This kind of L/Cs will be automatically re-extended after its first use. The terms of L/C will be the same for ever. But the overall maximum amount, number of renewals, validity, etc, of this L/C is to be discussed and confirmed by the buyer and seller according to their business.

D/P (Delivery against Payment or Documents against Payment):

Some buyers prefer this D/P terms because of some reasons. Let us see what they are.

1. As we have seen earlier, the buyer can get the L/C opened, only if he has financial strength, good business performance and provision of securities with the bank. If he does not have them, his bank will not cooperate in opening L/C.
2. In some backward countries, the banks will not entertain in opening of L/Cs. In this case, the buyer has to open L/C from other countries through some financial agencies. Otherwise, he will have to deposit at least 300% of the L/C value to the bank to get the L/C opened. As no buyer will be ready to keep their huge money (300% of L/C amount) blocked in the bank for 4 to 5 months, these buyers will not open L/C.
3. Also the buyer has to spend good money towards the bank charges for opening L/C and proceedings.

Due to these above reasons, some buyers will prefer to do business on D/P terms.

In this terms, there is no need for the buyer to open L/C. But the other procedures are the same as L/C. The seller will send all the required documents including B/L to buyer’s bank through his bank. On receipt of the documents in their bank, buyer will make the payment for the bills and will get the documents from his bank.

By these terms, the buyer will save his money on banking charges and other things. If the buyer is genuine, the seller will not have any problem of getting payment.

If the buyer is not genuine, then seller will face some problems in getting payment. If the buyer opens L/C, then he has his commitment on that particular business and also the seller gets confidence of that particular business and getting payment. But in D/P terms, the buyer has no commitment to the seller or the bank. On the other hand, the seller does not get confidence on business and payment. Seller has to depend on the buyer completely for accepting the goods and making the payment. Seller can not expect any favour or rights for the payment. So he has to double-check about the buyer’s genuineness, honesty and reputation before accepting these terms. At the same time, the seller has to be double-careful in making the goods in the required quality and shipping the goods in time without any delay. Totally it is fully seller’s risk to make the business without problem.

Buyers will place the orders to the sellers. Without getting 100% confirmation, the seller has to proceed with his production. After the shipment of goods and after the dispatch of documents from his bank to buyer’s bank, the seller does not have any hold. He will have to wait for the buyer’s action.

If the buyer is dishonest and if he wants to play with the seller, he will say that he can not sell the goods or he is not interested in the goods or his customer refuses the goods or the poor quality of shipment samples or due to off season or due to sudden crisis on local market, etc. Then the seller’s problem started.

As nothing can be done, the seller will continuously communicate by phone, fax and email, with the buyer to convince the buyer to clear the goods. But as this buyer is not genuine, he will not show any interest in the goods. He will drag the days purposely to put the seller in trouble. In these days, the buyer will not communicate with the seller. Even if the seller calls buyer’s office, the buyer would not answer his call. He would avoid the seller completely. He would affect the seller psychologically. After 2 or 3 weeks, he will use any of the following dialogues to the seller.

1. I don’t like to put you into big loss. I tried with our customers. He strictly says that he doesn’t need the goods. But I have convinced my customer somehow. But he is ready to accept the goods at 50% price. I know this is not fair. I can not let you down because you are my friend. Hence I said to him that this is not possible. So I advise you to pls arrange to reimport your goods. I will send your documents back. I am sorry.

2. I can not convince my customer as he is not ready to take the goods. I understand your problems and I will help you to solve this problem. I will try to sell this consignment to some other customer. So pls send me another set of shipment samples quickly. Take care that these samples should not have any mistakes. (This is only a drama. He will not do anything with the samples).

3. I have tried my best to sell the consignment to the original customer and the other customers too. Believe me, friend. No body is interested to take the goods. In order to help you, I can try to sell the goods by myself. But it will take at least 2 to 3 months. If you want, I can do this help for you. Pls think it over and let me know. If you agree for this, I will send your documents back to you. And pls change the documents as ‘90 days D/A’ (we are going to discuss about this D/A as the next subject) and send them back to me immediately.

Thus the seller will get frustrated and disappointed by the buyer. Due to his commitments on this payment, the seller will get ready to get the payment with a discount or claim. Then he would inform the buyer his willingness for discount or claim. Or he would agree for D/A terms.

So in this term, the seller will have more risks of payment. Some times he may loose his business too.

To avoid this, the seller can discuss another option for payment with the buyer. That is giving some commission to the buyer for opening At Sight L/C. Some buyers will agree to open At Sight L/C, if the seller agrees to pay 2 to 3% of FOB value as L/C commission. With this commission, the buyer can cover his expenses of L/C opening charges, other banking charges and bank interest. Thus both the buyer and the seller will be happy.

D/A terms:

These terms are called Documents against Acceptance or Delivery against Acceptance. They will have different payment periods like 30days, 45days, 60days, 90days, 120days, etc.

This is almost like D/P terms. In the D/P terms, the buyer’s bank will release (the seller’s) documents to the buyer on getting the payment from him. But in D/A terms, his bank will release the documents to him without asking for his payment.

If the terms are mentioned as ‘60 days D/A’, the buyer’s bank will remind the buyer for the payment only after 60 days from the date of receipt of documents. Even after this period, if the buyer does not want to make the payment, neither buyer’s bank nor the seller can do anything.

So this term can be used only based on the good understanding between the buyers and the sellers.

MARKETING

For every product, Marketing is very most important. It is also called as Sales. The person who is in charge for this valuable Marketing Department is called Marketing Manager or Chief Marketing Executive. Some times, CEO (Chief Executive Officer) himself will take care of Marketing. There will be assistants for him like Deputy / Junior Marketing Managers or Marketing Executives, etc.

Though there are various assistants in various divisions / departments to assist or to help the Marketing Managers, it is very essential for the Marketing Manager to have his own technical knowledge and experience about all the important things of knitted garments. Then only he can do the marketing in a successful way.

Marketing mainly includes Self Study, Product Study, Costing, Pricing, Sampling, Communication, Documentation, Production, Quality, Delivery and Payment. We see that it covers almost all the important things. Hence the person who is doing marketing must have thorough knowledge in these things.

Now let us see briefly about the importance of these important things. Instead of giving details of these things, I prefer to explain them in a ‘how to do’ basis.

Self Study:

Before making any decision on marketing, we must know about the capacity, strengths, weaknesses, machineries, financial strength, payment terms of our company.

Also we must know about our customers, commitment to customers, market situation and general policy of our company.

Besides we must have knowledge about our working conditions, staff and workers, salary and wages, labour laws, benefits to workers, safety & environment of factory, pollution, etc.

Nowadays, the overseas buyers are very particular about Code of Conduct, Code of Ethics, Child Labour, Safety measures, Pollution, Benefits to workers, Hours of working, Attendance, Maternity leave for women workers, etc. As we are the persons who have to interact with the buyers, we must have knowledge in these things. Also we must be sure of ourselves that these things are followed in our company.

We must be aware the buyers strategy. Because of the competition in their sales, the buyers use to declare their commitment in their country market that their company is working with the factories which are following below procedures. These procedures are called Code of Conduct.

-          Child labour (less than 16 years old), criminals and mentally retarded should not be engaged as factory workers.

-          Workers should be allowed to work only up to 8 hours per day. Over time is allowed only in 2 days in a week. Even in these days, only 4 hours over time is allowed per day.

-          Factory should follow the safety measures strictly. Fire exits, fire extinguishers, fire alarm, etc to be kept in easily reachable places.

-          All the workers must know how to operate fire extinguishers. Fire training programs to be held often.

-          Workers should be provided with sufficient ventilation, good drinking water, spacious dress room, dining hall, medical aid, holidays as per local law, restricted working hours, weekly off, medical leave, reasonable salary as per the local labour law, Provident Fund, Employees State Insurance, attendance, etc.

-          Women workers should be given maternity leave with paid salary.

-          Each worker should be allowed to join in the workers union as he desires.

-          If the workers are staying in the factory premises, they should be provided with cot, bed spreads, blankets, fan, etc.

-          Separate toilets to be provided for Men and Women workers. They should be kept neat and clean. They should have enough light.

-          Close circuit cameras should not be fixed in the work area. It will hurt the worker psychologically and mentally.

The developed countries are very strict in workers’ policies. Also they are against to the bonded labour system, child labour, cruelty of labours, low wages, unsafe factories, etc. That is the reason, the big buyers are declaring to their countries that they are not working with the factories which are not following the above regulations.

Also these buyers are openly declaring their suppliers’ full address, contact person’s name, contact numbers and also the factory address & contact numbers. With these details, some times, some Social Organisations or Media Persons will visit and inspect the factories without any prior intimation. If they found that the factory is not following even any one of the regulations, they will publish in the newspapers and will telecast in televisions. As the publics of developed countries have very good social awareness, they will protest against the buyer’s way of business. And the buyer’s sales and business would be affected tremendously. Then it would be very difficult for the buyer to retain his reputation. So the buyers don’t like to take any risk. That is why they are very strict in selecting the factories to work with. Nowadays, the buyers give more preference for the Code of Conduct than for pricing, quality, capacity, etc.

A successful organisation must believe in working with a set of values rather than manuals. Basic values include believing in people, teamwork, fast pace of working and constant improvement. There should be ‘open door’ policy, granting all employees the right and possibility to discuss any work related issue directly with the management. Also the company policies must be known to every worker.

So it is our duty to study our organisation well. We must thoroughly know about our company’s internal policies and external policies. This will help us to take the right decision in right time always, according to our policies. That too, when we are doing marketing, it is very essential for us.

Let us see the definition of a Personnel Manager. The Personnel Manager is the person who can be reached easily by each and every employee or worker at any time on any occasion. Then only he will be able to understand the employees very well. Then only he can take appropriate action when it is needed. He must develop that kind of relation with the employees and workers.

Likewise, the Marketing Manager should be the person who can be reached easily by all the persons from the all the departments at any time. There should be a cordial relation among all the department staff. If the Marketing Manager keeps distance and forms unnecessary formalities to meet him, then he will not get the clear picture of other departments’ activities.

One thing all the Heads should remember always. The Head may be the Chairman, Managing Director, CEO, Marketing Manager, Production Manager, Factory Manager, Department Head, Supervisors, Security Head, etc. The Head should realise the fact that he is responsible for all the activities in his Organisation / Department / Division / Factory / Section / Wing / etc. The Head should realise that it is not possible for him to do all kind of works / jobs by himself. So he should consider that his employees, subordinates, assistants, juniors, workers, office boys, telephone operators, securities, even drivers are helping him by sharing his jobs. The Head should always remember the fact that without all these subordinates’ help, he can not do anything. In simple words, the Head should not think that the subordinates are working for him; but should think that they are HELPING him.

When a Head realise this fact, then he will not have head weight or superior feeling. He will have a pleasing personality. He will have easy approach. So he will have real close relation with colleagues, subordinates and other departments. So they will discuss with him freely, honestly, openly without hiding or exaggerating things. So he will know about all the activities going on in all the departments. So he will have clear idea of what is going on in his company or organisation. So whenever needed, he can take right decision in right time which will help for the improvement of his company or organisation. Also he can learn many things and he can update his knowledge in all the areas.

There is no end for learning. We have to learn continuously. If a man feels that he knows everything, then he will not show any interest in learning further. Then he will have head weight or superior feeling. It is very dangerous for his self improvement.

Some Heads won’t let his subordinates to grow. They wish their subordinates to be their subordinates for ever. And they should be their Chief for ever. To keep their positions, they will play tricks cunningly to get a good name from their superiors. Also they will spoil the lives of their subordinates and also the improvement of their companies or organisations. It is very narrow thinking and we should not follow this or encourage this behaviour. It is the indirect indication of lack of self confidence. If they have self confidence, they would learn further and would get promoted to further higher position. So it is within ourselves to grow higher and higher and higher.

Product study:

For every marketing person, it is a must to know about the product what he is going to sell or market. The product may be a small pen or a ship or a garment. Without knowing or without expressing his knowing, he can not sell even a small pen. It is the same for garment also.

Still more to write…….

MERCHANDISING

PRODUCTION

QUALITY CONTROL

There are always vacancies for higher posts in all the trades, businesses and organisations in all parts of the world. But it is the fact that very few people are trying for this higher posts. We should try for the higher posts. It is not easy. At the same time, it is not an impossible thing. In order to reach these jobs, we should be prepared for that by developing ourselves with the thorough practical knowledge, self confidence, honesty, sincerity and hard working.