Industrial Clothing Business Investment Opportunity in Amritsar, India

- Very fast-growing business. We scaled this business very quickly as soon as we started this business in 2011.

- We currently have 45-50 clients spread from Amritsar to Hyderabad and Manipur as well.

- The market size is very huge and presently there is no competition as far as scheduled manufacturers are concerned.

- High potential and high margins can be achieved through economies of scale.

- Looking at the business potential, we decided to expand and diversify into related businesses before the pandemic and we bought land and started construction of the new factory but got trapped because of the pandemic.

- Most savings and reserves were used to complete the project and sustain the business which was halted due to the shifting of educational institutions to the online mode which resulted in no sales for almost 3 years.

- However, we used our core strengths and not only established our new factory and trained a new workforce, and started online sales with Flipkart, Meesho, and amazon.

- We also started to make handmade ladies' dress material which resulted in the expansion of our business line on online platforms/commercial websites.

- We also pitched uniforms requirements with some European armies and we worked in tandem with fabric suppliers and got our trousers approved by the buyers in the last 2 years.

- Now we have orders for 1,000 pants per month from one buyer which is expected to increase to 3 more buyers in the next 6 months thereby making the requirement 3,500 to 4,000 pants per month.

- While improving our business, and also establishing new factories, and sustaining our manufacturing facility, we are shackled due to the minimum working capital available to achieve higher targets.

- Most of the money generated is used in paying off EMI and servicing bank interest.

- The business partners and customers know our strength and they want to increase business with us but we are not able to move forward due to a scarcity of working capital.

- Although customers give advances we need investment from our side which gets constrained due to financial stress.

- We have a well-established name and quality in the market.

- We have understood the online sales business very well and we are confident of achieving a sales growth rate of a minimum of 50% year on year for the next decade.

All types of uniforms, hosiery, online sales, and ladies' dress material.

We own the land on which the factory is built.

We also own stitching machines, specialized machines for textile and hosiery, finishing machines, printing machines, diesel generators, computers and peripherals, backup systems, electrical panels, storage racks, cutting tables, cutting machines, and fabrics.

- We own 4,660 square yards of land on which the factory has been developed.

- We have 2 factory buildings spread over 9,800 sq. ft. and the other over 5,400 sq. ft. both having two floors.

- The factory is located near the terminal point of the international northeast corridor which starts from Russia to India. Also, it is within 1 km from the newly established Bharat mala project from the Delhi-Amritsar-Katra expressway as well as the Amritsar-Jamnagar expressway.

- Term loans from HDFC and Bank Of India for INR 2.60 crore.

- Working capital limits from banks - INR 2.07 crore.

- Machinery loan of INR 20L out of which the current outstanding amount is INR 17L.

- Covid-19 GECL loan of INR 40L out of which the current outstanding amount is INR 24L.

- The complete business is wholly owned by the family.