Commercial Embroidery Report

Pre-Feasibility Study
COMMERCIAL EMBROIDERY UNIT
(Multi Head Embroidery Machine)

INTRODUCTION

Commercial embroidery

Commercial embroidery is a new business introduced in Pakistan a few

years ago. There is a lot of potential in this business because of less
number of factories in the market and an increasing demand of
embroidery in local as well as international market. Industrial
embroidery machines (multi head machines) of different makes &
origins (Japanese, Chinese and Korean) are used for embroidery

OPPERTUNTY RATIONALABLE

The trend of usage of embroidery on garments of all sorts is on a rise

since last few years. Initially, the embroidery work was used to be done
on export garments as per foreign customer's requirements. However,
with the passage of time the trend has changed and local market of
ladies suits has also emerged as a main customer of embroidery work.
Also, the cotton fabric of ladies suits, which is exported to Middle East
market, is embodied before being exported. Apart from these, the
embroidery work is also done on bed sheets, table cloths, and sofa
covers, badges etc. Almost 70% of the potential embroidery business
exists with the local market while the remaining 30% is done for
foreign market. So there is a potential for new people to come into the
business of commercial embroidery

PROJECT BRIEF

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

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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 three
embroidery machines.

PROCESS FLOW CHART

Receipt Designing Loading Embroidery Threading Packing

of & Tracing on &
Fabric Machine Dispatch

RAW MATERIEL

Embroidery is the process of sewing a design onto a garment. With

recent advancements in technology embroidery machines have
become computerized and software has been developed to assist in
the day to day operation of embroidery machines. This means that
designs and set up costs can be low and the machines can run quicker
with any number of colors being applied in a single operation. Designs
are converted in to digital format known as digitizing and once this has
been done can be used over and over again. These designs are
individually stored on to computer disks, which are place in to the
embroidery machine every time a design is required. This reduces the
set-up times required and also means that you no longer require large
volumes to make it cost effective. Main raw material required is thread
and sequence which is readily available. Following is the details of raw

COMMERCIAL EMBROIDERY IN PAKISTAN

Commercial Embroidery Units

According to the estimates given by industry and the machine sellers, there are about

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1000 embroidery machines working in the Pakistan.

Embroidery Hubs

Most of the embroidery factories are located in Karachi, Lahore, Faisalabad and Sialkot.
A few factories are also located in Hyderabad, Multan, and Rawalpindi.

Embroidery Products

The embroidery work is done on the following products:

Fabrics
Women Suits
Bed Sheets
Table & Sofa Cloths
Badges & Monograms
Export Products (Clothes, T-shirts, Caps etc.)

PROJECT COST & REVENUES

Technical Details of Machinery

SWM (Chinese)
Estimated price per machine 3,00000-
No. Heads 24

Cost
Cost Quantity Price (Rs)
machines 3 90,00000-
Ups for machines 3 10,00000-

Expanses
Expanses per machine / per month average 2,40000-
Machine depreciation per month 10% 2,5000-
Total 2,65000-

Sale
Sale per machine per month average 3,80000-

Revenue
Per machine profit per month Per machine profit per year 3 machine profit per year
1,15000- 13,80000- 41,40000-

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Total investment
Estimated project investment 10.Million
Estimated investment bring in 2.5 year

Key Success Factors

There is a lot of potential in the commercial embroidery business because the trend of
embroidery on garments of all sorts is on a rise.
Production process is simple, there are no complications in the process, and raw material
requires no processing. Machines are fully computerized and no technicalities are
required to handle the machines.
The commercial viability of this embroidery unit depends on the regular business orders
i.e. enough orders to operate the unit for at least 300 days a year. This requires aggressive
marketing efforts at the entrepreneurs end. The local as well as foreign markets have to
be identified and approached in order to get the business and to keep the unit running.
Following points should also be ensured to make the business successful:
Assurance of high consistent quality
Surety of products on time delivery
Competitive rates
Cost efficiency through better management

Threats for the Business

Due to the increase in number of commercial embroidery units and competition, there are
chances that the market rates may reduce. However, this can be tackled by providing
different value added services to customers.

Another major threat to the business is credit factor. This is also related to the
competition. The customers may ask for credit facility for a longer period, and this can
disturb the cash cycles of the unit. This can be avoided by making a similar policy for all
customers, so there will be no complaints from customers and cash cycle will not be
disturbed.