Entrepreneurship Development Institute of India

PGDM-E (24-26)

Industry Vertical- Textile and Garments

Name Roll Number

Sahejaj Noorani 2024E072

Vedansh Bharadwaj 2024E079

Divyam Bhandari 2024E023

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Contents
Part A- Detailed Market Analysis ..................................................................................... 4
Section 1- Importance of the Textile Sector in the Indian Economy ................................ 4
Section 2: Key Growth Drivers and Factors of Production Focus: Innerwear, Sleepwear,
Leggings, and Hosiery Garments in India ..................................................................... 6
Section 3: Key Trends and Statistics Relevant for the Sector Focus: Innerwear,
Sleepwear, Leggings, and Hosiery Garments in India .................................................... 9
Section 4: Recent Entrepreneurial Initiatives Focus: Innerwear, Sleepwear, Leggings, and
Hosiery Garments in India ........................................................................................ 13
Section 5: Business Ecosystem and Relevant Agencies Focus: Innerwear, Sleepwear,
Leggings, and Hosiery Garments in India ................................................................... 16
Section 6: Government Support and Policies Focus: Innerwear, Sleepwear, Leggings, and
Hosiery Garments in India ........................................................................................ 20
Section 7 PESTEL Analysis........................................................................................ 23
Section 8 Porter’s Five Forces Analysis ...................................................................... 26
Part- B- Opportunity/Business Idea Profiling: Innerwear, Sleepwear, Leggings & Hosiery
Garments Sector in India ............................................................................................. 27
1. Product/Service Features & Applications ............................................................... 27
2. Manufacturing Process, Quality Specifications & Technology Level .......................... 28
3. Market Potential (CAGR, Export-Import) ................................................................. 29
4. Installed vs Utilised Capacity (India & Global) ........................................................ 31
5. Investment Requirement & Profitability Structure ................................................... 33
6. Break-Even Point (BEP) & Company Benchmarks.................................................... 35
7. Machinery Specifications, Suppliers & Rates.......................................................... 36
8. Critical Inputs for Success .................................................................................... 38
9. Critical Success & Failure Factors ......................................................................... 40
10. Why Choose This Sector ..................................................................................... 42
References.............................................................................................................. 44
Appendix- 1 ............................................................................................................. 47
Appendix- 2 ............................................................................................................. 47
Appendix- 3 ............................................................................................................. 48

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Appendix- 4 ............................................................................................................. 48
Appendix- 5 ............................................................................................................. 49
Appendix- 6 ............................................................................................................. 50
Appendix- 7 ............................................................................................................. 51
Appendix- 8 ............................................................................................................. 51

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Part A- Detailed Market Analysis
Section 1- Importance of the Textile Sector in the Indian Economy
The Indian Readymade Garments (RMG) sector is critical in the country’s economic framework.
It is a major contributor to GDP, employment generation, industrial output, and export revenues.
As one of the world's largest producers and consumers of garments, India’s RMG industry is both
a driver of economic growth and a key sector supporting inclusive development.

1. Contribution to GDP and Industrial Output

• The textiles and apparel industry, which includes RMG, contributes approximately 2.3%
to India’s GDP and 7% of industrial output.

• Within this, the RMG segment plays a significant role by serving the fast-growing domestic
fashion retail market and contributing nearly 45% of textile exports.

• The total domestic textile and apparel market was valued at ~USD 106 billion in 2019-20
and is projected to reach USD 190 billion by 2025-26, with RMG accounting for a large
share.

2. Employment Generation

• The textiles sector is the second-largest employer in India after agriculture, employing over
45 million people directly.

• Much of this employment is attributed to the garment segment, especially in knitwear

clusters like Tirupur, Ludhiana, and Kolkata.

• Innerwear, sleepwear, and leggings are labour-intensive sub-segments providing

substantial job opportunities, including women in rural and semi-urban areas.

3. Export Performance

• India’s RMG exports stood at USD 16.2 billion in FY23.

• Top export destinations include the USA, the EU, the UAE, the UK, and Saudi Arabia, with
over 80% of RMG exports directed to these markets.

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 • The government aims to increase apparel exports to USD 30 billion by 2027, supported by
Free Trade Agreements (FTAS) and cost competitiveness.

4. Inclusive Economic Impact

• The sector enables female workforce participation and fosters rural entrepreneurship
through tailoring units and supply chain roles.

• Government schemes like PM-MITRA, PLI for Textiles, and SAMARTH are designed to
boost capacity and skill development in this sector

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Section 2: Key Growth Drivers and Factors of Production
Focus: Innerwear, Sleepwear, Leggings, and Hosiery Garments in India

1. Market Evolution & Growth Trajectory

a. Market Size and Growth:

• The Indian innerwear and hosiery market is valued at INR 91,000 crore (2024), projected
to reach over INR 1.6 lakh crore by 2030.

• Innerwear contributes over 64% to this figure, followed by leggings and hosiery.

• CAGR (2024–2030):

o Innerwear: ~10%

o Sleepwear: ~12%

o Hosiery: ~4.5%

b. Shift to Organised Sector:

• In 2014, only 24% of innerwear sales were via branded players. By 2024, it has crossed
38%, and is expected to hit 50 %+ by 2030.

• The shift is driven by urban retail expansion, e-commerce penetration, and consumer trust
in standardised sizing.

2. Key Regional Production Hubs

a. Tirupur, Tamil Nadu

• Accounts for 28–30% of India’s knitwear production.

• Estimated to host 10,000+ factories, with a significant share producing innerwear and basic
garments.

• Specialising in:

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 o Cotton hosiery

o Seamless garments

o Branded exports (Jockey, Dixcy Scott, etc.)

b. Ludhiana, Punjab

• Contributes 20% + of India's hosiery output.

• Strength in:

o Wool-blended hosiery and thermals

o Mid-market innerwear (Dollar, Lux, Rupa production)

c. Kolkata, West Bengal

• Major base for value-segment innerwear.

• Hosts FOHMA; production centres like Metiabruz support low-cost, high-volume output.

• Dominated by: Rupa, Amul Macho, TT

d. Delhi-NCR

• Hub for regional brands and distributors.

• Key in shaping North Indian distribution logistics.

e. Surat & Ahmedabad, Gujarat

• Backbone for artificial fibre (MMF) base cloth.

• Supports leggings and nightwear production, especially in polyester blends.

3. Factors of Production

a. Raw Materials

• Cotton: 60% of the innerwear fabric base. Tirupur and Ahmedabad are major processing
hubs.

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 • MMF (Polyester, Spandex): 30–35% share, rising with leggings and performance wear.

• Sourcing Locations:

o Cotton: Maharashtra, Gujarat, Telangana

o MMF: Surat, Silvassa

b. Labor

• Total workforce in focused segment: ~8 million, across stitching, knitting, and dyeing.

• Gender split: ~60% women in innerwear factories (especially in Tirupur, Bengaluru).

• Labour cost (avg.): INR 10,000–16,000/month (semi-skilled)

• Migration trend: High reliance on labour from Bihar, Jharkhand, Odisha in Ludhiana,
Tirupur.

c. Capital

• Avg investment for a mid-size innerwear unit: INR 50 lakh to 3 crore (excl. real estate)

• Most hosiery players are MSMEs availing subsidies under:

o Credit Guarantee Scheme

o ATUFS (Technology Upgradation)

o Mudra Loans (for working capital)

d. Technology

• Knitting Machines: Circular and flat-bed (imported from Taiwan, Germany)

• Cutting: Computer-aided design (CAD) and auto-cutting for mass batches

• Stitching: Semi-automatic lockstitch & overlock machines

• Dyeing: Softflow and air-jet dyeing units in Tirupur & Surat

• Future: Shift toward seamless manufacturing and AI-based sizing solutions

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Section 3: Key Trends and Statistics Relevant for the Sector
Focus: Innerwear, Sleepwear, Leggings, and Hosiery Garments in India

1. Market Size and Growth Projections

a. Overall Market Projections (2024–2030)

• Innerwear Market (2024): INR 66,703 crore

• Projected (2029): INR 1,07,308 crore

• CAGR: ~10%

• Sleepwear Market (2024): INR 12,513 crore

• Projected (2029): INR 22,085 crore

• CAGR: ~12%

• Shapewear & Compression Wear (2024): INR 10,005 crore

• Projected (2029): INR 16,107 crore

• CAGR: ~12%

• Leggings & Bottomwear Market (2024 est.): INR 4,000–5,000 crore (branded share)

• CAGR: 8–10%, driven by athleisure and salwar-to-leggings shift

b. Export Statistics

• RMG exports (FY23): USD 16.2 billion

• Share of Innerwear and Sleepwear: Estimated at 12–15% of total RMG exports

• Leading export destinations: US, UAE, UK, EU

• India is one of the top 3 global exporters of ladies’ lingerie

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2. Trends Reshaping the Market

a. Rise of Organised Retail & Premiumization

• Share of branded innerwear has grown from 24% (2014) to 38% (2024)

• Premium brands like Jockey, Van Heusen, and Enamour dominate urban tier-1 and two
markets

• Growth in premium male innerwear: USD 768 million (2024), CAGR ~6.2%

b. Digital Transformation & E-Commerce

• Online innerwear sales surged 80% YoY in FY24

• Zivame, Clovia, Nykd by Nykaa, and PrettySecrets are driving awareness and
personalisation

• Growing use of AI-fit tools, size charts, and mobile-based purchases

c. Shift Toward Sustainable & Functional Fashion

• Growing demand for bamboo, organic cotton, and recycled polyester

• Launch of eco-conscious lines by Clovia, Tailor & Circus, and Bummer

d. Inclusivity & Body Positivity

• Brands expanding size ranges (up to 6xl)

• New fits designed for function: minimiser bras, full-coverage styles, maternity wear

e. Youth & Athleisure Boom

• Shift in buying behaviour: youth demand dual-purpose wear (innerwear x activewear)

• Leggings, bralettes, and sports bras are merging fashion with fitness

3. Consumer Demographics and Buying Patterns

a. Women as Primary Consumers

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 • Women’s share of innerwear market: ~64%

• Key categories: bras, panties, leggings, nightwear, shapewear

• Age groups driving growth: 18–34 (Millennials and Gen Z)

b. Geographical Penetration

• Tier 1: High-value, premium brand focus

• Tier 2/3: Mass brands like Lux, Rupa, Dollar, and Bodycare are growing 2x faster than
metros

• Digital penetration in Tier 3 towns is unlocking new consumers

c. Price Sensitivity and Volume Movement

• ASP (Average Selling Price): INR 180–500, depending on category and brand

• 75% of innerwear sales still come from value-priced/mid-tier segments

4. Manufacturing & Employment

• Total employment in the focused sector: ~8 million

• Women's participation: ~60% in innerwear stitching and QA units

• Clusters with the highest employment: Tirupur, Ludhiana, Kolkata

• Manufacturing moving toward cluster-based, semi-automated systems

5. Notable Brand and Retail Trends

a. Top Brands

• Premium/Urban: Jockey, Van Heusen, Enamour, Triumph, Amante

• Value/Mass: Lux, Dollar, Rupa, Bodycare, Trylo, Red Rose

• D2C/Online: Zivame, Clovia, Bummer, Tailor & Circus, Nykd

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b. Product Diversification

• Lingerie + sleepwear combos, bralettes, seamless underwear, shapewear, anti-sweat fabric

• Entry of plus-size only brands and gender-neutral innerwear

c. Retail Models

• Hybrid approach: exclusive brand outlets + online + multi-brand outlets

• Innerwear vending machines (e.g., Bummer in airports) were introduced in 2024

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Section 4: Recent Entrepreneurial Initiatives
Focus: Innerwear, Sleepwear, Leggings, and Hosiery Garments in India

1. Rise of D2C and Digitally Native Brands

a. Growth of the D2C Channel

• India’s D2C market is expected to reach $100 billion by 2026, with innerwear and
sleepwear as high-growth niches.

• Digitally native brands disrupt traditional retail by offering better pricing, personalised fit,
direct customer engagement, and online-exclusive styles.

b. Notable D2C Startups

• Clovia: Expanded from lingerie to sleepwear and activewear; raised $ 10 M+ in funding

before being acquired by Reliance Retail.

• Zivame: One of the first Indian brands to promote fit-tech in bras; offers over 5,000 styles
and has 40+ EBOS.

• Bummer: A youth-focused innerwear brand known for quirky prints and vending machines
(deployed at airports in 2024).

• Tailor & Circus: Premium innerwear focusing on sustainable, gender-neutral styles and
comfort-first design.

• Almo: Focused on male innerwear and loungewear, positioned as an Indian alternative to

international basics brands.

2. Innovation in Product Design and Positioning

a. Inclusive and Functional Products

• Brands like Nykd by Nykaa and Snitch have launched inclusive sizing from 2xs to 6xl.

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 • Use of antimicrobial, anti-sweat, seamless, and skin-sensitive fabrics has become a product
norm.

b. Maternity & Plus-Size Focus

• Clovia introduced maternity lingerie, feeding bras, and plus-size minimiser bras.

• Enamour and Triumph also introduced broader cup sizes and supportwear for women
above size 44f.

c. Gender-Neutral Innerwear

• Tailor & Circus and new entrants like Freeppl are creating gender-neutral categories that
challenge traditional segmentation.

3. Strategic Collaborations and M&A

• Reliance Retail acquired a majority stake in Clovia (2022), expanding its footprint in
premium innerwear.

• Aditya Birla Fashion (Van Heusen Innerwear) has invested heavily in innerwear EBOS and
influencer partnerships.

• Joint branding campaigns between online platforms (Nykaa, Amazon Fashion) and
innerwear startups boost reach.

4. Export-Focused Startups

• AEPC has supported micro-exporters in Tirupur and Ludhiana in building direct B2B
channels through exhibitions and B2B portals (AEPC, 2024).

• Several niche players from Kolkata (like Sonari) target Bangladesh, UAE, and Africa for
mid-value exports.

• Shapewear and seamless leggings are growing in demand for international activewear
brands sourcing from India.

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5. Emerging Formats & Retail Innovations

• Omnichannel Expansion: Most D2C brands are opening Exclusive Brand Outlets (EBOS)
in Tier 1 and 2 cities.

• Innerwear Vending Machines: Introduced by Bummer at Ahmedabad and Delhi airports in

2024.

• Fit-Tech Tools: Zivame and Nykd use AI/ML tools to help users find the correct size
through virtual fit assistants.

• Subscription Models: Monthly or quarterly underwear subscriptions by Almo and Bummer

for repeat sales.

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Section 5: Business Ecosystem and Relevant Agencies
Focus: Innerwear, Sleepwear, Leggings, and Hosiery Garments in India

1. Institutional and Industry Associations

a. Apparel Export Promotion Council (AEPC)

• Established: 1978

• Role: Promotes exports of garments, including innerwear and sleepwear

• Key Activities:

o Organises global buyer-seller meets, trade fairs

o Works with the government on textile trade policy

o Supports smaller manufacturers in export-readiness through subsidies and skill

programs

• Relevance: AEPC supports export-oriented units in Tirupur, Ludhiana, and Kolkata with
compliance, certifications, and international trade linkages

b. Clothing Manufacturers Association of India (CMAI)

• Established: 1960

• Members: 20,000+ manufacturers, exporters, and retailers

• Key Activities:

o Hosts trade shows like the National Garment Fair

o Facilitates buyer-supplier networking and policy representation

o Works closely with MSMES and startups to improve visibility and retail linkages

• Relevance: Plays a key role in the organised growth of domestic innerwear and leggings
players

c. Gujarat Garment Manufacturers Association (GGMA)

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 • Role: Regional body for promoting apparel manufacturing in Gujarat

• Key Initiatives:

o Organises GGMA National Garment Fair

o Supports textile and garment clusters in Ahmedabad and Surat

o Advocates for infrastructure, labour policy, and market access

• Relevance: GGMA supports cotton-based bottom wear (leggings) manufacturing in

Gujarat

d. Intimate Apparel Association of India (IAAI)

• Focus: Lingerie, sleepwear, shapewear, and activewear

• Activities:

o Hosts Galleria Intima (India’s largest intimate wear trade fair)

o Offers support in sizing research, tech adoption, and sourcing partnerships

• Relevance: IAAI is crucial in advancing product development and skill training in premium
innerwear and sleepwear

e. Federation of Hosiery Manufacturers Associations (FOHMA)

• Base: Kolkata

• Focus: Hosiery manufacturing, including innerwear and sleepwear

• Activities:

o Policy advocacy with central and state governments

o Cluster development and MSME financial support

o Export market exploration support

• Relevance: FOHMA enables Kolkata and Ludhiana’s units to stay cost-competitive and
labour resilient

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f. Wholesale Hosiery Traders Association (WHTA)

• Focus: Distribution and supply chain of hosiery in Tier 2/3 cities

• Activities:

o Fixes credit cycles and trade terms for wholesalers

o Connects small hosiery units with retailers

• Relevance: WHTA supports India’s vast semi-organised retail for affordable innerwear

2. MSMES and Cluster-Based Manufacturing

• MSMES dominate India’s innerwear and leggings segment, especially in Ludhiana,

Kolkata, and Tirupur

• Supported by:

o Technology Upgradation Fund (ATUFS)

o PMEGP and MUDRA Loans for working capital and equipment

o Common Facility Centres (CFCS) funded by SIDBI and Mot in hosiery zones

• Key Support Areas:

o Machinery purchase, dyeing, finishing

o Product development and sampling

o Export packaging and compliance

3. Government and Market Access Agencies

a. Ministry of Textiles

• Designs schemes like PLI for Textiles, PM-MITRA Parks

• Runs the SAMARTH scheme for skilling garment workers

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b. DGFT & SEZ Authorities

• Provide Duty Drawback, Rosctl, and MEIS benefits for exporters

• Offer duty-free sourcing and compliance support

. NITI Aayog & DPIIT

• Driving policy initiatives to improve the competitiveness of textile MSMEs

• Supporting digitisation and cluster digital adoption in traditional industries

. State-Level Industry Departments

• Provide land subsidies, electricity discounts, and wage reimbursement in states like Tamil
Nadu, Gujarat, and Punjab

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Section 6: Government Support and Policies
Focus: Innerwear, Sleepwear, Leggings, and Hosiery Garments in India

1. Production Linked Incentive (PLI) Scheme for Textiles

• Launched: 2021

• Budget: ₹10,683 crore

• Objective: To promote the manufacturing of artificial fibre (MMF) apparel and technical
textiles

• Relevance:

o Encourages production of synthetic-based shapewear, leggings, and performance

innerwear

o Major clusters in Surat, Ludhiana, and Tirupur are applying for this scheme to scale
MMF-based garment production

2. PM-MITRA (Mega Integrated Textile Region and Apparel) Parks

• Launched: 2021

• Budget: ₹4,445 crore

• Planned: 7 integrated parks across India

• Objective: End-to-end value chain infrastructure for garment manufacturing

• Benefits:

o Plug-and-play factory spaces, CETPS, design centres

o Ideal for MSMES to scale production with lower capital risk

o Focus on attracting large-scale innerwear and leggings units

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3. Amended Technology Upgradation Fund Scheme (ATUFS)

• Objective: Support for the modernisation of machinery in the textile sector

• Incentive: 10–15% capital subsidy on garments, knitting, and processing equipment

• Relevance:

o Enables MSMES and hosiery units to adopt automated stitching, dyeing, and
seamless garment machinery

o Used widely in Tirupur and Ludhiana innerwear units

4. SAMARTH (Skill Development Scheme)

• Launched: 2017, extended till March 2026

• Objective: Placement-linked skill development for the textile sector

• Support: ₹36 per trainee per hour for certified training partners

• Outcomes:

o Skilled over 1.88 lakh candidates, with 85 %+ being women

o Strong skills focus on knitting, stitching, QC, and packaging for

innerwear/sleepwear lines

5. MSME-Focused Schemes

a. MUDRA Loans

• Up to ₹10 lakh collateral-free loans under Shishu, Kishor, and Tarun categories

• Widely availed by new hosiery unit owners for machinery and working capital

b. Credit Linked Capital Subsidy Scheme (CLCSS)

• 15–25% capital subsidy for tech upgradation in MSME textile firms

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c. Procurement & Marketing Support Scheme (PMS)

• Provides funding for MSME participation in domestic trade fairs, buyer-seller meets, and
e-commerce onboarding

d. Common Facility Centers (CFCs)

• Government and SIDBI-supported facilities for dyeing, finishing, CAD, printing, lab
testing — especially in Ludhiana and Kolkata hosiery belts

6. Export Incentive Schemes

a. Rosctl (Rebate on State & Central Taxes and Levies)

• Rebate on embedded taxes for exported garments

• Available to innerwear and shapewear exporters

b. Duty Drawback Scheme

• Refund of customs duty on imported raw material used in garment exports

c. EPCG Scheme

• Allows capital goods imports at 0% duty for export-focused units (minimum 6x export
obligation in 6 years)

7. Gujarat Textile Policy 2024 – Special Incentives

a. Capital Subsidy

• Up to 35% of eligible Fixed Capital Investment (FCI) in Category 1 Talukas

• Max cap: ₹100 crore for garment/apparel; ₹50 crore for technical textile units

b. Interest Subsidy

• 6% annual interest subsidy for up to 8 years (Category 1 Talukas)

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 • Applicable on term loans from the Docp date

, c. Power Tariff Support

• ₹1/unit power subsidy for 5 years (DISCOM or renewable)

d. Payroll Assistance

• ₹5,000/month per female worker (Gujarat domicile), ₹4,000/month per male worker

• Applicable for 5 years

. SHG Support for Job Work

• ₹5,000/month for training SHGS + 25% job work turnover as assistance

for. Certification & Tech Adoption

• 50% reimbursement on quality certification (up to ₹10 lakh)

• 65% subsidy on technology acquisition (up to ₹10 lakh)

g. Energy & Water Efficiency Incentives

• Support for solar, waste heat recovery, and rainwater harvesting equipment

. Electricity Duty Exemption

• All eligible large units are exempt from electricity duty under the Electricity Act, 2003

Relevance: This policy greatly benefits Gujarat-based innerwear, leggings, and sleepwear
manufacturers, especially MSMES and labour-intensive enterprises, providing a comprehensive
support package for modernisation, job creation, and export growth.

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Section-7 PESTEL Analysis
1. Political

• Government Support: Strong backing via schemes like PLI, PM-MITRA, and state-specific
policies (e.g., Gujarat Textile Policy 2024).

• Export Policies: Favourable Rosctl and EPCG schemes encourage global expansion.

• Labour Laws: Policies on minimum wage, ESIC, and EPF impact labour-intensive
innerwear manufacturing clusters.

2. Economic

• Growing Disposable Income: Rising middle-class purchasing power boosts demand for
premium innerwear and sleepwear.

• CAGR Trends: Innerwear (~10%), sleepwear (~11%), and leggings (~9%) markets are
growing steadily.

• Raw Material Price Volatility: Cotton and MMF price fluctuations affect production costs
and margins.

3. Social

• Changing Lifestyles: Shift toward comfort wear, loungewear, and athleisure.

• Urbanisation: Demand for branded, quality products is rising from Tier 2 and 3 cities.

• Body Positivity & Inclusivity: Demand for broader sizing, gender-neutral and function-
driven products.

4. Technological

• Fit-Tech Integration: Use of AI tools by brands like Zivame and Nykd.

• Automation & Seamless Tech: Increasing adoption of automated cutting, stitching, and
seamless garment tech.

• E-commerce Enablement: Rise of D2C brands supported by online fit assistance, digital
try-ons, and mobile-first commerce.

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5. Environmental

• Sustainable Manufacturing: Growing shift toward bamboo, organic cotton, and recycled
fabrics.

• Water & Energy Regulations: New compliance norms for dyeing units in Ludhiana,
Tirupur, and Surat.

• Waste Management: The Government encourages textile recycling and circular fashion
models.

6. Legal

• Quality Certifications: BIS, ISO, OEKO-TEX are increasingly mandatory for exports.

• Trade Agreements: Duty disadvantage vs. countries like Bangladesh/Vietnam affecting

competitiveness.

• MSME Compliance: GST, labour audits, and environmental checks require procedural
adherence.

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Section 8 Porter’s Five Forces Analysis
1. Threat of New Entrants – Medium to High

• There are low barriers to entry due to the availability of contract manufacturing and online
platforms.

• Brand loyalty and established distribution networks provide some defence to incumbents.

• D2C boom enables small players to gain market share rapidly.

2. Bargaining Power of Suppliers – Medium

• Dependence on cotton and MMF suppliers in Gujarat and Maharashtra creates some
dependency.

• Speciality trims and elastics for innerwear are sourced from limited vendors.

• Larger players mitigate this through bulk sourcing and vertical integration.

3. Bargaining Power of Buyers – High

• Wide availability of options in every price band gives buyers substantial leverage.

• D2C and e-commerce allow price comparison and easy switching.

• Brands must continuously innovate to retain loyalty (fit, comfort, ethics).

4. Threat of Substitutes – Low to Medium

• Limited substitutes for innerwear or hosiery (functional necessity).

• Substitution risk within price tiers or between traditional vs. shapewear vs. activewear.

5. Industry Rivalry – High

• There are many strong national players (Jockey, Lux, Rupa, Dollar, Enamour)
(Moneycontrol, 2024).

• Rapid growth of D2C disruptors like Clovia, Zivame, and Go Colours intensifies
competition.

• Low switching costs and brand commoditisation add to the rivalry.

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Part- B- Opportunity/Business Idea Profiling: Innerwear,
Sleepwear, Leggings & Hosiery Garments Sector in India

1. Product/Service Features & Applications

Product Features Applications

Leggings Stretchable (5-20% Lycra), high GSM (180- Activewear, casualwear, ethnic
220), moisture-wicking, body-fit, 4-way pairing, gym/yoga wear
stretch

Nightwear Cotton-rich, breathable, soft-touch finish, Sleepwear, homeware, loungewear

loose silhouette, elastic waistbands (post-pandemic trend increased
demand)

Panties High cotton content, elasticised waistband, Every day, innerwear for hygiene
multiple cuts (briefs, hipsters, bikinis), and comfort
antimicrobial finishes

India’s growing middle class and awareness of hygiene and fashion have driven demand for
premium features like seamless panties, moisture-wicking leggings, and comfort-based nightwear.
Consumer preferences shift from utility to style and comfort, resulting in product evolution.

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2. Manufacturing Process, Quality Specifications & Technology Level
Production Steps:

1. Fabric Sourcing & Testing (GSM, composition, colourfastness)

2. Fabric Relaxation & Spreading

3. Pattern Making (manual or CAD)

4. Cutting (Straight knife, Band knife)

5. Stitching (Overlock, Flatlock, Lockstitch, Coverstitch)

6. Finishing (Thread cutting, Pressing, Packing)

Quality Specifications:

• GSM: Leggings (180–220), Panties (120–160), Nightwear (140–180)

• Lycra Content: Leggings (8–20%), Panties (0–8%)

• Stitch per Inch (SPI): 10–12

• Print compatibility: Sublimation for polyester, reactive/disperse for cotton

Technology Used:

• Machines: Jack F4, Siruba 757K, Pegasus W500, Juki DDL series

• Dyeing: Soft-flow, Jet dyeing for knitwear

• CAD: Used for efficient marker planning and fit accuracy

Technological upgrades allow higher productivity and precision (e.g., programmable pattern
sewing, automatic thread trimming). Machines vary in cost and specs based on operation.

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3. Market Potential (CAGR, Export-Import)
India’s innerwear and comfortwear market is witnessing robust growth, driven by shifting
consumer preferences, rising affordability, and expansion in retail distribution. The sector is
expected to nearly double over the next five years, underscoring significant business opportunity
across all segments, particularly for women (CRISIL, 2023; Wazir Advisors, 2023).

Segment Market Size (2024) Projected Size (2029) CAGR

Innerwear (Total) ₹66,700 Cr ₹1,07,300 Cr ~10%

Women’s Innerwear ₹40,000 Cr+ ₹70,000 Cr+ ~12%

Sleepwear & Loungewear ₹12,000 Cr ₹22,000 Cr ~12%

Bottomwear (Leggings & other) ₹47,800 Cr ₹85,000 Cr ~11%

Sources: CRISIL (2023), Wazir Advisors (2023), IBEF (2023), Fibre2Fashion (2023)

Industry Highlights

• The organised innerwear sector has grown significantly—from 24% market share in 2014
to 38% in 2024, driven by increasing consumer trust in branded products and awareness of
hygiene, fit, and style (Wazir Advisors, 2023).

• India ranks fourth globally in innerwear exports, contributing around 3.7% to global
exports, thanks to cost-effective production and growing demand from overseas markets,
particularly in Asia, the Middle East, and Africa (TexPro, 2023; WTO, 2023).

Key Growth Drivers

• Rising Disposable Income & Urbanisation: With more women joining the workforce and
an increase in dual-income households, premium and stylish innerwear spending has grown
(IBEF, 2023).

• Fashion-Conscious Millennials: Millennials and Gen Z consumers are more aware of

comfort, fabric quality, and aesthetics, driving demand for performance-based and designer
innerwear (Fibre2Fashion, 2023).

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 • E-Commerce & D2C Boom: Brands like Zivame, Clovia, Tailor & Circus, Bummer and
others have revolutionised access to innerwear through online channels, size
recommendations, discreet packaging, and subscription models (1Lattice, 2023).

• Comfortwear Boom Post-COVID: The pandemic catalysed a significant lifestyle shift, with
homewear and loungewear becoming integral categories as consumers prioritised comfort
during remote work and hybrid routines (Grand View Research, 2024).

Export-Import Outlook

• India’s export competitiveness is rising due to improved manufacturing clusters (e.g.,

Tirupur, Ludhiana, Kolkata), better compliance, and access to international quality
standards (AEPC, 2024).

• At the same time, the domestic demand continues to absorb a large share of production,
making India a demand-led and self-sustaining innerwear market (CRISIL, 2023).

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4. Installed vs Utilised Capacity (India & Global)
The capacity utilisation in the innerwear and hosiery sector across major garment-producing
nations varies significantly and is influenced by automation levels, infrastructure efficiency, skilled
labour availability, and energy reliability. India, while one of the top producers of innerwear, still
operates below its full potential due to structural inefficiencies and fragmentation in
manufacturing.

Country Avg. Key Observations

Utilization

India 50–60% Fragmented MSMES, labour skill gaps, seasonal demand cycles
(CRISIL, 2023)

Bangladesh 55–60% Energy shortages and infrastructure issues constrain consistent

production (Apparel Resources, 2023)

Vietnam 65–75% Focused on high-efficiency export units; agile and lean models
(Rajesh Bheda Consulting, 2022)

China 75–80% Highly automated units and large-scale manufacturing

ecosystems ensure higher throughput (WTO, 2023)

India’s Production Challenges

India’s innerwear manufacturing base primarily consists of small and medium enterprises (SMES),
many of which operate on semi-manual workflows and lack economies of scale. This, coupled
with regional disparities in labour skill and seasonal demand peaks (such as festive or winter
orders), contributes to a relatively low utilisation rate of 50–60% (CRISIL, 2023).

Moreover, the average factory efficiency in India remains around 45%, considerably lower than
competitors like Vietnam (60–65%), which benefit from streamlined operations, higher industrial
engineering penetration, and global sourcing strategies (OnlineClothingStudy, 2023).

31
Strategic Implications

• Investments in Industrial Engineering (IE) practices and lean manufacturing could unlock
20–25% more output from existing infrastructure.

• State-level incentives under ATUFS and PM-MITRA could help MSMES modernise their
equipment and training facilities, bridging the capacity gap over time (Ministry of Textiles,
2024).

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5. Investment Requirement & Profitability Structure
Establishing a small-scale innerwear manufacturing unit, focused on leggings, panties, or
nightwear, requires moderate capital investment and offers attractive returns when managed
efficiently. The entry barriers regarding capital and space are low, making it an ideal segment for
first-generation entrepreneurs or MSMES to explore.

Small Unit Setup – Cost Breakdown (15 Machine Configuration)

Equipment Quantity Unit Cost Total (INR)

Overlock Machines 5 ₹35,000 ₹1,75,000

Lockstitch Machines 4 ₹25,000 ₹1,00,000

Coverstitch Machines 3 ₹85,000 ₹2,55,000

Cutter & Spreading Table 1 ₹50,000 ₹50,000

Ironing & Packing Tools 2 35000 ₹70,000

Total Setup Cost — — ₹6.55 Lakhs

Sources: IIGM, Siruba, Jack India, OnlineClothingStudy (2023–2024)

Equipment Purpose Summary

• Overlock Machines (4-thread): Used for side seam joining and innerwear panelling.

• Lockstitch Machines: Used for straight seams in nightwear and panty waistband
reinforcement.

• Coverstitch Machines: Used for hemming leggings and bottomwear waistbands.

• Cutting Setup: Includes a straight knife or band knife, essential for precisely cutting layered
fabric rolls.

• Ironing & Packing Tools: Final pressing improves appearance and crease resistance before
dispatch.

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Operating Cost & Revenue Estimation

Parameter Value

Monthly Production 25,000 units

Cost per Unit ₹130

Selling Price per Unit ₹150

Gross Revenue ₹37,50,000/month

Monthly Gross Profit ₹5,00,000

Margin ~13%

This profit estimation assumes a consistent sales flow and 85–90% machine efficiency. The profit
can be scaled higher with direct-to-consumer (D2C) branding and value-added features (e.g.,
antimicrobial finish, printed packaging) (OnlineClothingStudy, 2023; Fibre2Fashion, 2023).

Considerations for Maximising Returns

• Fabric sourcing: Procuring from knitwear hubs like Tirupur or Surat ensures a cost
advantage and faster turnaround.

• Lean layout planning: Minimising material handling time and improving operator line
balance increases output per labour hour (Rajesh Bheda Consulting, 2022).

• Skilled machine operators: Training can improve average output by 20–25%, directly
impacting profitability (Ministry of Textiles, 2024 – Samarth Skill Program).

ROI Potential

With minimal investment and steady demand, this setup can generate a payback period of 12–15
months, especially if selling via B2B channels (distributors, retail aggregators) or online
marketplaces (Amazon, Flipkart, Meesho).

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6. Break-Even Point (BEP) & Company Benchmarks
Break-Even Point (BEP) Calculation

• Fixed Costs: ₹2,00,000 per month

• Selling Price per Unit: ₹150

• Cost per Unit: ₹130

• Contribution per Unit: ₹20

BEP (in units) = 200000/20 = 10,000 units

This means the business needs to sell 10,000 units per month to cover all fixed expenses and reach
break-even.

Payback Period

With an estimated monthly profit of ₹5,00,000, the payback on an initial investment of ₹10 lakhs
is achieved in approximately:

10,00,000/5,00,000 = 2 months

Even accounting for additional marketing, working capital, and scale-up time, the business can
realistically recover the full investment within 3–4 months, making it a high-ROI, fast-payback
model.

Company Benchmarks (For Comparison)

Company Revenue Operating Profit Margin Net Profit Margin (NPM)

(FY24) (OPM)

Page Industries ₹4,000 Cr+ 20–21% ~13%

Lux Industries ₹2,200 Cr ~9% ~5%

Rupa & Co. ₹1,300 Cr ~9.6% 4–6%

Sources: Screener (2024), Moneycontrol (2024)

35
7. Machinery Specifications, Suppliers & Rates
The choice of machinery is critical in determining a garment manufacturing unit's production
efficiency, product quality, and operating costs. For innerwear, leggings, and sleepwear—where
stretchability, seam strength, and finish quality are vital—selecting the right machines ensures
scalability and fewer defects during production.

Recommended Machine Setup for a Hosiery/Innerwear Unit

Machine Brand/Model Avg. Price Function & Application

Type

Overlock Siruba 757K ₹35,000– For seam joining of stretch fabrics (panties,
₹40,000 leggings, side panels)

Lockstitch Juki DDL- ₹25,000– Used in straight stitching—waistbands, labels,

8100 ₹30,000 topstitching in nightwear

Coverstitch Pegasus W500 ₹70,000– Used for hemming, attaching elastics in

₹90,000 leggings and panties

Flatlock Pegasus ₹1.5–2 Lakh Seamless joining, often used in high-end

FS703 leggings or shapewear

Cutting Eastman / KM ₹30,000– Multi-layer fabric cutting for production

Knife ₹50,000 batches

Sources: IIGM, Tirupur Sewing Machine Co., Pegasus Machines India, OnlineClothingStudy
(2023)

Machinery Insights

• Overlock Machines (4-thread) are essential in knitwear, enabling strong, stretch-

compatible seams. Most basic production units require 5–6 to manage panel and seam
operations (OnlineClothingStudy, 2023).

36
 • Coverstitch and Flatlock Machines are used for finishing hems and producing flat seams
that do not irritate the skin, which are crucial for undergarments and sleepwear comfort.

• Automatic thread trimmers and UBT (Under Bed Trimmer) variants can increase
productivity by 15–20%, especially for high-volume production setups.

• Cutting Machines like Eastman and KM enable precision in cutting multiple fabric plies
simultaneously, ensuring consistency and reduced fabric wastage (Jack India, 2024).

Recommended Machinery Suppliers (India)

Vendor Name Location Machines Offered

IIGM Pvt. Ltd. Pan India Juki, Brother, Siruba, Jack (cutting, sewing,
finishing)

Tirupur Sewing Machine Tirupur, TN Siruba, Pegasus, Kansai, KM

Co.

Jack India Distributors Delhi, Surat, Jack Brand industrial machines, spare parts,
Ludhiana and training

Pegasus India Bangalore, High-end machines for seamless wear and

Coimbatore knitwear

These vendors also offer post-sales services, AMC packages, and training support, which is
especially useful for MSME units starting (IIGM, 2024; Tirupur Sewing Co., 2024).

37
8. Critical Inputs for Success
The long-term profitability and scalability of any innerwear, leggings, or sleepwear manufacturing
unit depend on more than just machines and capital. Critical operational and human factors ensure
consistent product quality, optimal factory throughput, and low rejection rates.

Key Operational Inputs

Input Importance Notes

Skilled High Operators must be proficient in elastic handling, flat seams, and
Labor stitch uniformity across stretchy materials like Lycra-cotton
blends. Training directly impacts product quality and defect rates
(OnlineClothingStudy, 2023).

Pattern Very High A skilled master is crucial for creating well-fitting base patterns
Master and size grading. This is particularly important for women’s
innerwear, where poor fit directly affects customer satisfaction and
returns (Fibre2Fashion, 2023).

Supervisors Medium Shop-floor supervisors monitor operator performance, manage

real-time quality control, and ensure line balancing, which
minimises idle time and boosts output (Rajesh Bheda Consulting,
2022).

Sourcing High Access to reliable fabric, trims, and elastics vendors ensures timely
Network procurement, batch consistency, and competitive pricing. Sourcing
from hubs like Tirupur, Surat, and Ludhiana adds logistical
advantages (IBEF, 2023).

Factory Medium An optimised layout reduces non-value-adding activities like

Layout unnecessary movement, improves visibility and supervision, and
enables lean material handling practices. Even small factories can
increase efficiency by 10–15% through fundamental layout
changes (OnlineClothingStudy, 2023).

38
Additional Critical Enablers

• Standard Operating Procedures (SOPS): Help maintain consistency across production

batches, especially where unskilled labour is involved.

• Industrial Engineering (IE): Adopting methods like line balancing, motion economy, and
output tracking improves efficiency and reduces cost per unit.

• Workforce Stability: Retaining skilled operators through performance-linked incentives or

training support reduces quality fluctuations and improves factory morale.

39
9. Critical Success & Failure Factors
While the innerwear and hosiery segment is fast-growing and offers promising margins, success
hinges on executing certain foundational principles. Failure to address key areas like quality,
sourcing, and forecasting can result in lost customers, mounting inventory, or financial strain,
especially in a competitive and trend-sensitive market like apparel.

Key Success Drivers & Risks If Ignored

Success Factor Risk If Ignored

Quality High product returns, negative online reviews, and damage to brand
Assurance reputation, especially for D2C brands where consumer feedback is instant
(Fibre2Fashion, 2023).

Correct Improper GSM or dyeing specs can lead to shrinkage, colour bleeding, and
Sourcing high rejection rates during quality checks or post-wash (CRISIL, 2023).

Demand Mismatch in style/SKU supply can lead to deadstock or missed seasonal

Forecasting trends, resulting in working capital getting blocked (Wazir Advisors, 2023).

Financial Overinvestment in machinery, delays in receivables, or misjudging operating

Planning costs can stretch working capital, delaying breakeven (OnlineClothingStudy,
2023).

Skilled Inefficient line supervision or weak HR processes can lead to high

Management absenteeism, labour churn, and failure to meet delivery commitments (Rajesh
Bheda Consulting, 2022).

Real-World Case Examples

• Tirupur Exporter (2022): A European buyer rejected an entire consignment due to

colourfastness failure caused by incorrect dye–fabric combination. This emphasised the
need for sourcing compliance and lab-tested dyeing (Apparel Resources, 2023).

40
 • India vs Bangladesh in Synthetic Apparel: India’s slower adaptation to synthetic fabrics
and blended garments (e.g., polyester-spandex) cost it export share in the US and EU
markets, where Bangladesh capitalised on value-added synthetic innerwear (WTO, 2023;
TexPro, 2023).

Strategic Takeaway

Mitigating failure risks requires:

• Regular third-party lab testing,

• Strong sourcing partnerships with certified mills,

• Forecasting aided by past sales and fashion trend cycles,

• And structured SOPS for line-level execution.

41
10. Why Choose This Sector
India's innerwear, sleepwear, leggings, and hosiery garment sector presents a beautiful opportunity
for new entrants and MSMES, combining strong demand fundamentals with moderate investment
requirements and robust policy support.

Key Reasons for Selection

• Large & Growing Market: The Indian innerwear market is expected to grow from ₹66,700
Cr in 2024 to over ₹1,07,000 Cr by 2029, with a CAGR of ~10% (CRISIL, 2023; Wazir
Advisors, 2023). Women’s innerwear alone contributes over ₹40,000 Cr and continues to
rise due to rising urbanisation, aspirational consumption, and style-conscious
demographics.

• Repeat Demand: Unlike many fashion segments, innerwear and comfortwear are essential,
non-cyclical categories with short usage lifespans. Consumers replace panties, bras, and
nightwear every 3–6 months, ensuring steady volume-based demand (Fibre2Fashion,
2023).

• High Margins in Branded Segment: Premium brands like Page Industries (Jockey)
consistently post operating profit margins of 20–21%, proving that the segment supports
high-margin, value-driven business models (Screener, 2024; Moneycontrol, 2024).

• Low Entry Barrier: A well-equipped small-scale unit can be started with an investment of
₹8–10 lakh, making it accessible for first-generation entrepreneurs and micro-enterprises
(OnlineClothingStudy, 2023). With proper sourcing, training, and branding, scale-up
potential is significant.

• MSME-Friendly Ecosystem: The segment is heavily supported through MSME-specific

initiatives such as credit guarantee schemes, low-cost loans under CGTMSE, and
infrastructure support via cluster development programs (Ministry of MSME, 2024).

• Government Policy Support:

o ATUFS (Amended Technology Upgradation Fund Scheme) – Subsidises capex for

machinery upgrade up to 15% (Ministry of Textiles, 2024).

42
 o PLI Scheme for Textiles – Offers incentives on incremental turnover for MMF and
technical textiles, helping integrated innerwear units as well (Invest India, 2023).

o PM-MITRA Parks – Integrated textile parks with plug-and-play infrastructure and

connectivity for mid-sized units (Texmin, 2024).

Strategic Advantages

• Rising D2C penetration: Startups like Clovia, Bummer, and Tailor & Circus disrupt the
space via e-commerce, showing the model’s digital viability.

• Sustainability shift: Growing interest in organic cotton, recycled poly blends, and zero-
waste manufacturing creates new premium product opportunities.

• Female entrepreneurship: This segment increasingly attracts women-led businesses,

especially in Tier 2 & 3 cities, where home-grown brands are emerging.

43
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[Link]

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Appendix- 1

Appendix- 2

47
Appendix- 3

Appendix- 4

48
Appendix- 5

49
Appendix- 6

50
Appendix- 7

Appendix- 8

51