Step 2: Research the Best Supplier
The next step is to list suppliers, get quotes from a few, and estimate the cost of building an initial stock. Finalise a supplier depending on their shipping costs and select adequately. Similarly, if you are setting up a textile factory, make a network of raw material suppliers and opt for one that provides the stock at the cheapest rates.
Step 3: Invest in Infrastructure
Whether you are planning to set up a textile factory or open a retail store, it will require different equipment and employees to carry out the operations. You will also need a place to run the business. You will also need sufficient space to store the products until they sell.
Step 4: Requirement of Capital
Setting up a textile business will require a substantial investment amount. These include the costs of rent, knitting yarn, weaving machines, cloth cutting machines, etc. Retailers must invest in their shop setup, inventory, stock, customer service, etc., for uninterrupted sales. Evaluate your savings and apply for unsecured Business Loans if necessary. Start-ups can seek government loans.
Step 5: Prepare a Business Plan
Calculate the total investment amount and estimate a profitable selling cost according to the competitors. The business plan is the summary that maps out everything related to the business, including the mission, executive summary, company overview, market analysis, competitors, marketing strategy, operations plan, investments, etc.
Step 6: Start Promoting your Business
Promoting your business once it is set up is essential to spread the news about your textile business. It helps build a social network to promote your company. A few effective ways to promote your business include newspapers, radio, television, banners, magazines, social media, etc.
How Much Cost Required to Start a Textile Business?
Keep these costs in mind to estimate the cost of starting a textile business in India:
Cost for Location
In textile manufacturing, you will need a place to manufacture and store the products. In a retail business, you must rent or buy an easily accessible shop to sell the fabrics.
Cost for Raw Material
If you manufacture textiles, the cost of raw materials will be a significant investment to set up and operate the business.
Cost for Manufacturing
The textile manufacturing costs include the rent or cost of equipment along with other operational costs.
Cost for Workers
Don't forget the labourers' and other employees' salaries. They are integral to operating the production in manufacturing or sales in a retail business.
Cost for Transportation
Transportation costs include the expenses required to transfer the textiles from the textile factory to retail shops.
Cost for Promotion
The cost of promotion includes the expense incurred for marketing campaigns. Usually, it is higher for retailers than for manufacturers.
How Business Loan can Help to Start your Textile Business?
If you are planning to start a textile business in India, you may decide to deal in textile manufacturing, importing or exporting, wholesaling, or retailing. Whichever business type you choose, capital is one of the biggest requirements that Business Loans can fulfil. Start-ups must be backed by self-employed professionals with at least five years' experience in a similar field. Business Loans are the best funding options you can get through Hero FinCorp without any collateral, guarantor, or security. You can borrow up to Rs 40 lakh as per your requirement and repay it in easy EMIs you choose according to your monthly budget.
How to Avail of a Business Loan at a Low Interest Rate?
Several factors work together to determine your Business Loan interest rate. Follow these tips to minimise it:
Maintain a high credit score.
Pay off existing debts to reduce the DTI ratio.
Ask for a smaller loan amount.
Opt for a longer repayment tenure.
Prepare your business documents appropriately to show high repayment capacity.
Conclusion
Are you planning to start a textile business in India? It can be a profitable business idea due to high and never-ending demand. However, it requires a substantial investment that you can cover with start-up Business Loans. At Hero FinCorp, you can borrow a Business Loan of up to Rs 40 Lakh at competitive interest rates with flexible repayment tenures of up to 60 months.
Frequently Asked Questions
1. How much does it cost to start a textile industry in India?
The cost of starting a textile business in India includes several expenses, including location, raw materials, manufacturing, workers, transportation, marketing, etc.
2. What is the profit margin of the textile business?
Profit margin in the textile business ranges from 30% to 60%, depending on your chosen business type.
3. What is the budget for 2023 for the textile industry in India?
The budget 2023-24 contains a substantial increase in grant allocation for the textile industry, totalling Rs 4,389.34 Crore.
4. Which textile business is most profitable in India?
The retail textile business is the most profitable in India, as it involves no machinery and raw materials and minimal workforce. However, the marketing expenses are higher.
5. Who is the top importer of textiles?
The European Union is the top importer of textiles worldwide.
