Branded Ladies Petticoat Project

Rathii Textile Mills Private Limited

No: 7-A, Ramakrishnapuram North, Near Vinayakar Kovil,
Karur-639001, Tamil Nadu, India.
Contact: 9894630674, 9016539945, E-Mail: rathiitextile@gmail.com
Sr. No: Particulars Page No

 Title 1

 Content 2

 Vision 3

 Mission 3

 Scope of the business 3

1  The Product 4

 A. In-skirt / Petticoats 4

 B. In-skirt Sizes 5

 C. Price structure 5

 D. Cost Break-up 5
2  The Market 6

 A. Requirement 6

 B. Market Segments 6

 C. Present Scenario 6
3  Marketing 7

 Prime Focus 7
4  Sales 7

 A. Strategy 7

 B. Sales Matrix 7

 C. Sales Matrix 2017 - 2018 8

 D. Sales Matrix 2018 - 2019 8

5  Project Execution 9

 Phase – 1 9

6 9
 Conclusion
7 10
 Project Financial Summary
 RATHII’S AMBITION

Vision:-
Generating livelihood for women through “RATHII” is our prime VISION, by the way of economically
empowering the women. “RATHII” will induce the confidence of women, where they need to take the
right decision at the right time at the right place. Women can tackle any type of problems in their home,
society and elsewhere. The freedom of women to make their decision will increase if they are economically
safe and sound. “RATHII” is the key solution for women's empowerment and women's liberation.

Mission:-
Being a Team of 4 women Founders & Directors, “RATHII” have own mission to achieve its vision.
 Selling one lakh petticoats per day & Generating employment for ten lakh women.
 Our aim is to grow team “RATHII” for the livelihood of entire women community for centuries.

Scope of the Business

 In the market, there is a huge requirement for petticoats due to the wear and tear of its regular use.
 Since the petticoats are made by cotton fabrics, there is no expiry for this product.
 There are 3.75 crore women population in Tamil Nadu, out of which 2.50 crore women consuming
at least 6-8 petticoats every year. That means for every year approximately 15 – 20 crore petticoats
in all varieties from high end to low end are selling in Tamilnadu state only.
 If we consider all together the remaining highly saree wearing other 9 states in India, per year in
average means the volume of petticoat sales is unimaginable and is really huge.
 Cluster based very small manufacturing units in each and every state is catering to these all
consumptions of petticoats throughout the country.
 Ladies are buying a silk saree of Rs.2500/- To Rs.25000/- from a collection of design and quality.
Similarly there is lot of scopes to do in petticoats by the way of using our expertise in this field. We
have explored new qualities, new designs, new concepts, new feels and new finishing in ladies
petticoat.
 Scope to create a brand for petticoat is very high, because the ground is completely empty as we are
not going to compete any established brands for petticoats like Ramraj, MCR or others compete in
dhoti (Vestry) business.
 Higher brand can easily capture 25-40 % market within 2-4 years. Branded Products can get more
margins too.
 No payments problem for Established brands.
 The business needs money for fabric, stitching and overhead on starting only. At the end of 2 - 4
years, the initial investment can be taken out or can be used for expansion of the business.
 For the growth of team “RATHII” there are lot of options like Venture Capital, Equity Funds, and
etc.,
 After 5 year we can go for IPO under the scheme of SEBI for SME. Or direct IPO for bigger
expansion.
 Selling one lakh petticoats per day is our short term goal.
 Generating ten lakh livelihoods for women through “RATHII” is our lifetime vision.
1. The Product:
In-skirt / Petticoats
In-skirt is the under garment for the women’s attire of sarees. The Saree is a South Asian female garment
that is typically wrapped around the waist, with one end draped over the shoulder, baring the Midriff. The
sari is associated with grace and is widely regarded as a symbol of Indian Women. The women in Tamil
Nadu, Pudhucherry, Kerala, Karnataka, Andhra Pradesh, Telungana, Odessa, Chhattisgarh, and West
Bengal, wear sarees throughout the day for all occasions. The women in other Indian states also wear
sarees on Family and religious functions. The women are using the in-skirt as an inner garment for two
reasons

1) The in-skirt will hold the sarees on hip area of the body
2) The in-skirt will act as barrier to expose the body parts through sarees.

When the women wraparound the sarees they will insert the top part of the saree into in-skirt on hip
portion. The front portion of the in-skirt on hip part is tied by a rope which will hold the saree. Here with
attached a YouTube link, which is showing very clearly that how women needs an in-skirt to wear a saree.
In a simple way we can say, in-skirt is an unavoidable inner garment for sarees
https://www.youtube.com/watch?v=jorqok0ydig.
In-skirts are made by 100% cotton fabric for the comfort to wear as an inner garment, and the fabrics are
solid colour dyed. The women will choose the colour of the in-skirt to match the colour with the sarees so
that the sarees will not give any contrast look. Women likes to wear more varieties of in-skirts by means of
designs like, different sizes of frills on bottom of the in-skits, simple embroidery designs on bottom of the
in-skirts to more floral patterns of embroidery works with Multy-colored thread designs and many more
concepts. The design of the in-skirt is not going to be visible over the saree but Indian women likes more
designs on their in-skirts.
From being the garment of choice for the average Indian women, the saree has come a long way to gain
patronage from fashion designers and Hollywood celebrities. Needless to say, the saree now scales the
range from everyday normal wear to elitist designer wear! And for the urban Indian woman of today, there
is a huge variety of saree to choose from. Sarees are said to be originated in South India, and are reputed
for their ability to add to the appearance of women of all its shapes and sizes. The right saree, with the right
petticoat and blouse can take pounds off a person. A thin woman can pick a saree made of the right
material to make her look heavier, and the sari flatters a full figure just as much. To add a dash of spice to
the saree, the two essential garments that go with this – namely the blouse and the petticoat, have taken on
various avatars and these days, demand their own share of the attention.

Indian designers have pushed the boundaries with this simple garment by adding embroidery, lace, sequins
and bestowing it. Most important thing in women’s day to day life is, all kinds of sarees and other
costumes like nightties are usually worn over a Petticoat by every woman in all the above mentioned states.
B. In-skirt Sizes
Below is the chart of In-skirt sizes available in the market with market terms. There is a small variation on
sizes in between one manufacturer to another. The fixed sizes based on the structure of women body. There
are 9 standard sizes available in the Market based on width and height of women which are as follows:-

Width Height
Small size called as - 6 Part 95 cm Height 100 cm Height 105 cm Height

Medium Size called as – 7 Part 95 cm Height 100 cm Height 105 cm Height

Large Size Called as – 8 Part 95 cm Height 100 cm Height 105 cm Height

C. Price Structure
Our In-skirt price structure is designed by considering the following areas:-
1. CTC: Cost to The Company: This includes all expenses of an In-skirt for its production along with
its packing and ready to deliver.
2. Mark up: Based on the product and other factors, by adding not less than 25% on CTC is our company
policy for our own margin.
3. SPM: Selling Price of Manufacturer to the Retailers.
4. RM: Retailer’s Mark Up: Company will fix Retailers Margin according to the volume of the
business & their payment commitments.
5. MRP: Maximum Retail Price, our company will fix the MRP for all our Products as per the
company policy.

D. Cost Breakup
We worked out the cost break up based on the actual cost of in-skirt manufacturing units in
Dhalavaipuram, Tamil Nadu. The product cost or the CTC varies due to the time consuming of stitching,
Embroidery work, thread used for stitching and embroidery works, fabric consumptions as per the designs
of the in-skirt, quality of the fabric, marketing, advertising, overhead and other hidden costs. Below is the
cost breakup for the largest selling petticoat size of 7 part 95cm height.

Cost Break Up % Amount Rs.

CTC : Cost To the Company 131.07

Mark Up: Company profit as per company Policy 25% 32.77
Total 163.84
Round off 0.16
SPM: Selling Price of Manufacturer 164.00
RM: Retailer Margin (including GST 5%) 40% 65.60
Total 229.60
Round off 0.40
MRP: Maximum Retail Price by Company Policy 230.00
2. The Market
A. Requirements
A woman needs minimum 6-8 petticoats per year on an average, due to the wear and tear of the regular use
for 24 X 7 of 365 days throughout the year. The Female Population in Tamil Nadu is 3.75 Crore. Out of the
women population the female children under 21 years is 1.25 Crore, those are new generation, not wearing
the sarees regularly and their night dressing habits are not Petticoats. We can leave the 1.25 crore children
from the calculations of women population for those are wearing sarees and nightties. Then the petticoat
wearing women in Tamil Nadu is 2.50 Crore. So the in-skirt requirement for the women in Tamil Nadu
only is 15-20 Crore pieces per year.
Below is the women population chart of 9 states where women using petticoats based on census of 2011.

Population Population Population Female city based Women

No: Name Status Census Census Census Population women Population
01/03/1991 01/03/2001 01/03/2011 2011 Population in Rural
1 Tamil Nadu State 55,858,946 62,405,679 72,147,030 36073515 17458729 18614786
2 Pudhucherry State 1615570 1948690 2495906 1247953 426377 770516
3 Kerala State 29,098,518 31,841,374 33,406,061 16703031 7937466 8765565
4 Karnataka State 44,977,201 52,850,562 61,095,297 30547649 11812989 18734660
5 Telungana State 30,204,096 36,424,596 41,925,768 20962884 6804336 14158548
6 Andhra Pradesh State 40,419,034 45,222,736 49,386,799 24693400 6802592 17890808
7 Odessa (Orissa) State 31,659,736 36,804,660 41,974,218 20987109 3504135 17482974
8 Chhattisgarh State 17,614,928 20,833,803 25,545,198 12772599 2666176 10106423
9 West Bengal State 68,077,965 80,176,197 91,276,115 45638058 14946505 30691553
209626196 72359305 137215831

B. Market Segments:
Based on our extensive market analyzes by interacting with sales teams in the retail showrooms, retail
shops, end users of petticoats or customers and manufacturing units, we come in the conclusion that, there
are 4 major segments of petticoat purchasing women in above states.

1. Women of BPL (Below poverty line) - those are finding for the cheapest availability in the market.
2. Women of Price conscious but do not aware / bother about quality.
3. Women of Price conscious, Demanding the fabric quality / comfort.
4. Women will buy only established / Known branded.

C. Present Scenario:
There are no Monopoly players / brands in Tamil Nadu to cater the above requirements.
Petticoats from other small established units which are making Nightties and ladies garments are selling at
very high price and selling to their own comfortable nearby stores in their places and not coming out of
their regional belts and fulfilling the customer needs.
This kind of suppliers is doing this business for many decades, without understanding the concept of fabric
what they are using and also they doesn’t want to come out with full-fledged branded petticoats.
In all the showrooms, they are keeping one small section to sell the petticoats with very fewer qualities.
There are lots of small shops on the streets in the marketplaces who are also selling petticoats.
There are four kinds of in-skirts available in the retail markets.
Low price selling on retail shops Rs.60/- to Rs. 80 per piece
Medium price selling on retail shops Rs.85/- to Rs.140/-per piece
High price selling on retail shops Rs.145/- to Rs.170/-per piece
Branded and online selling Rs.175/- and above
3. Marketing
Prime Focus:
Team “RATHII’S” first focus will be on the segment of the Women who are Price conscious but
demanding the fabric quality and comfort. There are 32 Districts in Tamil Nadu and they are classified
according to the corporations and towns considering the women population in their area based on
government census -2011.
No: Details Women population No Women
1 Chennai Corporation 22 Lakhs 1 2124106
2 Municipal corporations 1 Lakhs -3 Lakhs 12 2502403
3 Municipal Towns 50,000. - 1 Lakhs 17 1171603
4 Municipal Towns 40,000. -50,000 21 1695850
5 Municipal Towns 30,000. - 40,000 34 1172077
6 Municipal Towns 20,000. - 30,000 59 1448237
7 Larger Towns 15,000. - 20,000 60 1032484
8 Bigger Towns 10,000. - 15,000 154 1884610
9 Medium Towns 5,000. - 10,000 408 2911092
10 Small Towns 1,000. - 5,000 353 1233808
1119 17176270
4. Sales
A. Strategy
One Sales Man can cover 3-4 Districts per month, as per the women population. He or she can cover the
entire retail shops of the districts for sales and payment collections either by personal visit or by making
phone calls to the shops. Big cities like Chennai, Coimbatore, Madurai, and Trichy needs more than one
person. 12 Sales Men can cover up the entire State of Tamil Nadu & Pondicherry. The Minimum Target
for the Sales Men is 500 Sets per month on starting and later on the target can increase after gaining some
experience. 36 pieces of petticoats is considered as one set and all the 36 pieces are different standard
colors.
B. Sales Matrix:
As per the below plan, at the end of one full financial year we can achieve the sales target of 23 crore.
14, 04, 000 Petticoats X Rs.164 / Petticoat = Rs.23, 02, 56, 000. (23 Crore).

Apr- May- Jun- Jul- Aug- Sep- Oct- Nov- Dec- Jan- Feb- Mar- Total Total
18 18 18 18 18 18 18 18 18 19 19 19 Sets Pieces
Sales Man -1 500 500 500 500 500 500 500 500 500 500 500 500 6000 216000
Sales Man -2 500 500 500 500 500 500 500 500 500 500 500 5500 198000
Sales Man -3 500 500 500 500 500 500 500 500 500 500 5000 180000
Sales Man -4 500 500 500 500 500 500 500 500 500 4500 162000
Sales Man -5 500 500 500 500 500 500 500 500 4000 144000
Sales Man -6 500 500 500 500 500 500 500 3500 126000
Sales Man -7 500 500 500 500 500 500 3000 108000
Sales Man -8 500 500 500 500 500 2500 90000
Sales Man -9 500 500 500 500 2000 72000
Sales Man -10 500 500 500 1500 54000
Sales Man -11 500 500 1000 36000
Sales Man -12 500 500 18000
500 1000 1500 2000 2500 3000 3500 4000 4500 5000 5500 6000 39000 1404000
 C. Sales Matrix: 2017-2018 (6 Months)
As per the below plan, at the end of 6th month of this financial year 2017 – 2018, we can achieve the sales
target of 8 crore.
4, 86, 000 Petticoats X Rs.164 / Petticoat = Rs.7, 97, 04, 000 (8 crore).

2017 – 2018 SALES TARGET TABLE

Total Total
Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18
Sets Pieces
Sales Man -1 ( Chennai) 500 500 500 500 500 500 3000 108000
Sales Man -2 ( Chennai) 500 500 500 500 500 500 3000 108000
Sales Man -3 500 500 500 500 500 2500 90000
Sales Man -4 500 500 500 500 2000 72000
Sales Man -5 500 500 500 1500 54000
Sales Man -6 500 500 1000 36000
Sales Man -7 500 500 18000
1000 1500 2000 2500 3000 3500 13500 486000

D. Sales Matrix: 2018-2019

Next year first month onwards the sales area could be extended to our neighboring states like Kerala,
Karnataka and Andhra by increasing our sales person team. As per the below plan at the end of the
financial year 2018-19, we can achieve the sales target of 48 crore.
29, 16, 000 petticoats X Rs.164 / petticoat = Rs. 47,82,24,000 (48 crore).
Apr- May- Jun- Jul- Aug- Sep- Oct- Nov- Dec- Jan- Feb- Total Total
Mar-19
18 18 18 18 18 18 18 18 18 19 19 Sets Pieces
Sales Man -1 500 500 500 500 500 500 500 500 500 500 500 500 6000 216000
Sales Man -2 500 500 500 500 500 500 500 500 500 500 500 500 6000 216000
Sales Man -3 500 500 500 500 500 500 500 500 500 500 500 500 6000 216000
Sales Man -4 500 500 500 500 500 500 500 500 500 500 500 500 6000 216000
Sales Man -5 500 500 500 500 500 500 500 500 500 500 500 500 6000 216000
Sales Man -6 500 500 500 500 500 500 500 500 500 500 500 500 6000 216000
Sales Man -7 500 500 500 500 500 500 500 500 500 500 500 500 6000 216000
Sales Man -8 500 500 500 500 500 500 500 500 500 500 500 500 6000 216000
Sales Man -9 500 500 500 500 500 500 500 500 500 500 500 5500 198000
Sales Man -10 500 500 500 500 500 500 500 500 500 500 5000 180000
Sales Man -11 500 500 500 500 500 500 500 500 500 4500 162000
Sales Man -12 500 500 500 500 500 500 500 500 4000 144000
Sales Man -13 500 500 500 500 500 500 500 3500 126000
Sales Man -14 500 500 500 500 500 500 3000 108000
Sales Man -15 500 500 500 500 500 2500 90000
Sales Man -16 500 500 500 500 2000 72000
Sales Man -17 500 500 500 1500 54000
Sales Man -18 500 500 1000 36000
Sales Man -19 500 500 18000
4000 4500 5000 5500 6000 6500 7000 7500 8000 8500 9000 9500 81000 2916000
5. Project Execution:
Phase – 1
1) In the beginning we will make and sell all hot selling products in the market for market survey and
analysis. Slowly we will add lots and lots of designs and concepts which can’t be followed by others. In
the beginning we will make all designs and concepts with only one fabric quality. As we moves into the
market with full flow, we will add new fabric qualities in all the designs and concepts.

2) First thing we will do the fabric cutting at our own unit, which will save 6-8% of the fabric cost. This
cost will cover up our marketing expenses almost 80%.

3) Our marketing strategy for each and every phase are very well determined and perfectly planned to sell
more number of pieces in a rapid way where other regional players can’t do.

4) “RATHII” have very defined and more than 25 years experienced team in fabric line. They know very
well, how to save the fabric cost and get the best fabric manufactured. They have vast experience in fiber
till finished fabric in each sector of spinning, weaving, dyeing, and fabric finishing too. As we met so many
in-skirt manufacturers, fabric agents and fabric dealers till this date, we couldn’t find even a single person
who is having a wide knowledge about fabrics and fabric qualities. Everyone are following the available
fabric from erode and Rajasthan.

6) In the beginning we need a working capital in which we are planning with a warehouse which contains 2
nos. of 5 threads over lock machines with cutting and other supportive machines, a system loaded with all
business software and vehicles for marketing and transportation. Also this working capital includes
marketing expenses also. This is a sample unit and this unit will do approximately 10000 pieces per month
production apart from continuous sampling development for R&D.

7) Apart from this production, remaining quantities will meet out from outsourcing and production target
will be achieved by the team experts of “RATHII”.

6. Conclusion:
Thus we have clearly explained all the facts about our peculiar and prospective petticoat project where we
can meet out our life time goal and achievements. Thanking you for spending all your valuable time to
have a look at our entire “RATHII” project and for doing the needful to us.

Thanking you all once again. Project financial summary in next page….
 RATHII TEXTILE MILLS PRIVATE LIMITED
Branded Ladies Petticoat Project

Project Summery for one finance Year

1) Name of the Product: RATHII THE BRANDED LADIES PETTICOATS
2) Project Cost Rs. 500 Lakhs

A) Capital Expenditure of Rs 40 Lakhs for below requirements

No: Details No: Brand
1 2500-3500 sqft with electric connection and toilets 1 Deposit for Shed
2 Fabric cutting Table to handle 58" width Fabric 1 Make to order 72" X 15'
3 Fabric cutting Table to handle 36" width Fabric 1 make to order
4 5 Thread over lock Machine 2 Juki
5 Single Needle sewing Machine 4 Juki
6 Single Needle embroidery Machine 2 Rita
7 wooden stool for stitching machines 6 local made
8 Single Boiler double bed steam ironing machine 1 Ramson
9 fabric cutting machine 1 Eastman
10 fabric cutting machine – small 1 Taking
11 Motor cycle to handle the production on installments 2 Down Payment
12 4 wheeler for marketing on installments 1 Down Payment
13 Electronic weighing scale 100 kg 1 Avery
14 smaller to weigh small objects 1 Branded
15 Hand held stripe packing 1 local made
16 Laptop 1 Lenova with dell Monitor
17 Billing and data entry computer 1 DELL Laptop
18 B/W LaserJet Printer with scanner 1 HP LaserJet M1136 MFP
19 Internet with Router 1 D-link
20 web site for mail ID on starting, later site launch 1 for ten years
21 Office table chair and furniture 1 local ready made
22 Stationary 1
23 steel Racks for storage 12 local made or make to order
24 GST and company formation 1
25 Genset 1 15 hp
26 Fan light fittings 40
27 mobile and landline connection 2

A) Total Capital Expenditure Rs. 40 Lakhs

B) Working Capital Requirements Rs. 460 Lakhs
-----------------------
Total Project Cost Rs. 500 Lakhs
-----------------------
3) Estimated Annual Production Capacity

Capacity Rate Total Value

Sr. No: Particulars
No: Rs. ( Lakhs)
1 Branded Ladies Petticoats 14,04,000 Pieces Different 2302.5 Lakhs
Total 14,04,000 Pieces Rate 2302.5 Lakhs

4 Raw Material : 154440000

5 Labels and Packing Material : 2,808,000
6 Wages (1-Skilled ) : 11,500,000
7 Salaries 1-Enterprenures/manager 2,808,000
8 Administrative Expenses : 1300000
9 Overheads : 3000000
10 Miscellaneous Expenses : 1226280
11 Depreciation : 10% 400000
12 Insurance : 1% 40000
13 Interest (As per the PLR)
a. C.E. Loan : 13% 520000
b. W. C. Loan : 13% 5980000
Total Interest 6500000
14 Working Capital Requirement :
Fixed Cost 15608000
Variable Cost 168414280
Requirement of WC per Cycle / 3 months 46005570

Capacity Utilization(Rs in 'Lakhs)

Sr. No. Particulars
100% 60% 70% 80%

1 Fixed Cost 156 93.6 109.2 124.8

2 Variable Cost 1684 1010.4 1178,8 1347.2
3 Cost of Production 1840 1104 1288 1472
4 Projected Sales 2302 1381.2 1611.4 1841.6
5 Gross Surplus 462 277.2 323.4 369.6
6 Expected Net Surplus 450.5 270.12 315.53 360.16

1. All figures mentioned above are only indicative.

2. This is model project profile for guidance
3.Cost of Project, and its profitability will be changed depends on the area, availability of raw
Material, man power, power requirements and various other factors etc..