Business in TEXTILES sector

Small or medium sized business in Textiles sector offers many opportunities in Pakistan. But it is important that those who want to select & pursue such business should have some knowledge, experience and most importantly passion for the Textiles sector. Otherwise, the probability for failure may be high.

Below are some of the selected businesses in livestock sector.  SMEDA has also made very good pre-feasibility studies on this sector.

For the complete detailed pre-feasibility reports, you will first have to register with SMEDA and then you can download it FREE.

For registration, you may click the link:  SMEDA Registration

Below are the summarized versions of the pre-feasibility reports by SMEDA on Business in Textiles sector for you to get an idea before you download the full version.

1  - Absorbent Cotton 

Region: Punjab
Investment Size: PKR Between 1-2 Million

Cotton is a fiber being widely accepted by consumers, not least because many products consisting of cotton have been made and used by man for a long time. Loose cotton has been used for a long time by the sanitary and pharmaceutical industry as so-called cotton wool, cotton wool tips and cotton balls. The raw cotton is processed by series of steps which render the cotton hydro-phillic in character and free from external impurities needed to be fit for use in surgical dressings and personal hygiene. With the development of medical facilities and growing awareness towards personal hygiene, the absorbent cotton industry registered steady growth rate in past and is picking up pace with the spread of education and upward economic growth of towns and villages. Demand for absorbent cotton depends on various factors. The demand of this product is directly related with the increase in population and expansion of Public Health Services. The consumption of surgical cotton or cotton wool increases with the increase in population and number of hospitals, dispensaries, health care centers, nursing homes etc. Govt. hospitals and big nursing homes are the largest consumers for cotton wool. Cotton is a highly absorbent fiber and therefore suited very well for absorption of body fluids such as urine, blood and other fluids. It is used for bandages and wound dressings, absorbent pads (demake-up), tampons, sponges, swabs. Cotton also offers the positive property of being a naturally breathing fiber, i.e. it largely prevents the passage of fluids, but lets gas and water vapor pass. With this property cotton is also predestined for surgical gowns and drapes. Government of Pakistan primarily has made majority of investment in health sector by setting up hospitals, health centers in different areas of Pakistan, but these facilities are not up to standard and are very less in numbers as compared to population. Generally, Health care in Pakistan is government sponsored, but over the years private health care providers have become more common due to the tremendous increase in population. With the increase in population the demand of surgical cotton is also increasing. Currently most of the surgical cotton manufacturing units are in Lahore, Karachi and Okara. The total estimated cost of the project is Rs.37.525 million. The project shall be financed through equity contribution of 50% by Equity Contributor-Private Investor and 50% by Bank Loan. The project will be run by qualified professionals. In the total estimated cost, a sum of Rs. 5.709 million is required as working capital. Projected IRR, NPV and Payback of the proposed project are 32%, Rs. 38.722 million and 4.27 years respectively.

2 - Bed Linen Stitching Unit 

Region: Punjab
Investment Size: PKR Between 5-10 Million

Bed Linen is an important value added sub-sector of Textile sector. The products include bed sheets, pillow covers, quilts, etc. This project provides information about stitching unit of Bed Linen.

3 - Boutique (Women Designer Wear) 

Region: Punjab
Investment Size: PKR Between 2-5 Million

The pre-feasibility study focuses on the establishment of women designer wear Boutique including the operations of apparel designing, stitching, selling and marketing. The study has been designed to capture the dynamics of the Boutique industry with its many components and possible strategic opportunities.

4 - Cotton Towels Manufacturing Unit 

Region: Punjab
Investment Size: PKR Between 20-50 Million

Towel is an important product used in every day life. Towels and its allied products constitute an important sector of textile industry. In made ups, towels sub-sector is the second largest after bedwear in terms of production and exports. Towels are manufactured in various sizes, shapes and qualities depending upon customers’ requirements. The proposed project is for setting up a Towels Manufacturing Unit. This will be a vertically integrated unit including the facility of weaving, dyeing, finishing and stitching. Most of its production will be for export purpose as this is an export-oriented order based industry, hence contributing towards the earnings of foreign exchange for the country. There is a vast range of towel products like towels, terry towels, warp pile fabric, dish cloth, wash cloth, floor cloth, bar mops, bathrobes, bath mats, dusters, kitchen towels etc. All the calculations and financial workings have been done while treating this as an export based project. The yarn used in the production of towels is 10/s, 16/s and 20/s cotton, polyester/cotton yarn is also used to increase the strength of the product. Pakistan Towel Industry produces a complete range of towels which include hand towels, bath towels, face towels, kitchen towels, wash cloths, etc., available in rich assortment of patterns and designs in eye-catching colors. The towel manufacturers in Pakistan also produce a large range of allied products of towels including, terry bar mops, terry bathrobes, terry face towels, terry wash cloths, shop towels, terry gloves, terry pillow covers, terry coverlets and all other terry made-ups as desired by the buyers.

5 - Denim Jeans Stitching Unit 

Region: Punjab
Investment Size: PKR Between 1-2 Million

The proposed project presents an investment opportunity in manufacturing of denim jeans. The project profile has been prepared for a standard five pocket jeans trouser. The proposed stitching unit will be having the potential for its own manufacturing and supply for the local market as well as for the export market. However washing will be outsourced.

6 - Embroidery Unit (Commercial) 

Region: Punjab
Investment Size: PKR Between 10-20 Million

The proposed project is designed as a small-scale commercial embroidery unit. This unit will be capable of providing its services to local garments and fabric manufacturers as well as to those garment manufacturers who are dealing in export and require embroidery work on their garments. This sort of project is quite flexible in a way that there is no processing of raw materials required and each machine is independent in its working. The project can be started even with a single machine. However keeping in view the potential and industry norms, the project will be more feasible and economical with two embroidery machines.

7 - Fabric Dyeing & Finishing Unit (Knit Fabric) 

Region: Punjab
Investment Size: PKR More and Above 50 Million

The proposed project provides details about the investment in fabric dyeing & finishing unit. This unit will process fabric on commercial basis meeting the requirement of export oriented units as well as the manufacturers of apparel and made-ups for supply to the local market. As most of the processing will be for export oriented units, hence this project would contribute towards earning of foreign exchange for country. Primarily, this project would be established for dyeing and finishing of fabric. However, with the help of additional investment, it could be extended for yarn dyeing and could also be converted into a composite unit.

8 - Fabric Weaving Unit (Auto Looms) 

Region: Punjab
Investment Size: PKR Between 10-20 Million

This is a project of fabric weaving unit and is based on Auto Loom technology. The fabric quality produced on these looms is meant both for the local industry and for export purpose. This export can either be in the form of fabric or in the form of woven made-ups and hence will contribute in the earning of foreign exchange for the country. The unit size as of 72 looms proves to be the best possible economically viable unit size as of this number of looms utilizes manpower most optimally. Therefore, a generic feasibility study has been prepared while taking 72 number of looms as a base figure. The complete project details of 72 wider width Auto Looms have been covered in this section.

9 -  Garments Stitching Unit (Men's Dress Trousers) 

Region: Punjab
Investment Size: PKR Between 2-5 Million

This pre-feasibility study provides information and guideline about the investment opportunity in a stitching unit for woven dress trousers for men. The production of this unit will be for export purpose, and therefore will earn foreign exchange for the country. There is a vast variety in dress pants in relation to quality of the fabric used, style, stitching techniques, etc. This project will start its operation on CMT1 basis (commercial basis), but ultimately, this would be an export-oriented unit. Problems like lower margin and longer cash cycles are not prevalent in the export business because it is operated on LCs (letter of credit) basis. This unit will also be capable of producing other similar garments like twill and denim trousers with little modification of process.

10 - Polo T-shirts Stitching Unit 

Region: Punjab
Investment Size: PKR Between 20-50 Million

The subject pre-feasibility study provides details about the investment opportunity in a stitching unit for knitted garments. Mainly the production of this unit will be for export purpose, and hence will contribute in the earning of foreign exchange for the country. There is a vast range of knitted products like knitted T-shirts, blouses, trousers and shorts etc. However, this unit is designed on basic Polo Tshirt. Initially, for some time period, this unit will operate on CMT3 (commercial basis), but ultimately, this would be an export-oriented unit. Therefore, all the calculations and financial workings have been done while treating this as an export based project. This project will also have the potential for horizontal as well as vertical integration.

11 - Socks Manufacturing Unit 

Region: Punjab
Investment Size: PKR More and Above 50 Million

Socks are broadly classified into two main categories, cotton and nylon or blended socks. Cotton socks are specially preferred by sportsmen, besides their normal use and also have export potential as well. Cotton sports socks are further classified into two types: Pouch socks and reel socks. The proposed project will be manufacturing 65% pouch socks and 35% reel socks. It will be started with 30 machines. All the equipment for the project is supposed to be new. Second hand machinery can also be used to reduce the cost of project, which is easily available in the market. The project should be started with 60% initial year capacity.

12 - Work Wear Stitching Unit 

Region: Punjab
Investment Size: PKR Between 5-10 Million

Most of the production of the subject project will be for export purpose and hence contribute in the earning of foreign exchange for the country. There is a vast range of work wear products as mentioned above. However, this project is based on the production of standard Basic Overall. Initially, for some time period this unit might be operating on CMT (Cut, Manufacture & Trim (commercial) basis), but ultimately this would be an export-oriented unit. Therefore, all the calculations and financial workings have been done while treating this as an export based project


For the complete detailed pre-feasibility report on business in Textiles sector, you will first have to register with SMEDA and then you can download it FREE.

For registration, you may click the link:  SMEDA Registration



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