Garments Project Opportunity Rationale

The main competitive advantage of this industry is the availability of low cost, normal to above quality organic fiber as well as cotton, but mainly, the cotton and synthetic. The apparel segment is the highest value added link in the entire textile value chain. The trade in the sector accounts for 53% of the total value of global textiles trade and has been consistently growing since the last two decades. According to WTO (World Trade Organization) estimates, the total trade of textiles and clothing will exceed the US $600 billion mark, and this growth will be driven primarily by the clothing sector, which will constitute almost 70% of the total trade. Readymade garments industry of Pakistan enjoys active demand in the foreign as well as domestic markets. Besides being a potential source of foreign exchange earnings, it provides an important means of diversification within textile industry, by allowing conversion of domestically made cloth into a higher value added production in the form of garments. This industry also provides an employment opportunity for skilled and semi-skilled labor, which is easily available in the areas where the clusters of this industry exist. Needless to say that import of one industrial sewing machine valued at about US $500 creates 3 jobs and earns US $27,000 per year in the shape of foreign exchange or by other means. The development of this industry not only offers attractive return on capital but is also advantageous to the economy as its domestic maximize value addition to raw cotton.

Garments Project brief for funding

This pre-feasibility study provides information and guideline about the funding opportunity in a stitching unit for woven dress suits for men and women at very affordable prices to middle and lower community. The production of this unit will be for uplifting and welfare of local community, and therefore will helpful to earn prosperity for the country. There is a vast variety in dress suits for men and women in relation to quality of the fabric used, style, stitching techniques, etc. This project will start its operation on JIT  basis (Just In Time basis), but ultimately, this would be an normal production unit with high level raw material and finished goods. Problems like lower margin and longer cash cycles are not prevalent in this business because it is operated on cash sales basis. This unit will also be capable of producing other similar garments like twill and denim trousers with little modification of process.