Question

Do a feasibility study in (Manufacturing of socks) in any specific country that include:

a) marketing study: includes description of the product, strategies, etc.

b) technical study: the number of machines, the type of technology used to produce the product, etc.

c) financial study: all the financial costs include managers, employees, etc.

Answer 1

In the hierarchy of human needs,
clothing occupies the second top most
priority coming only next to the food.
The use of socks by the armed forces
fighting in high altitude and in adverse
climatic conditions has now been finding
its ways among executives and school
children. Wearing of any kind of shoes
without socks is termed as incomplete.
Socks are simple items and one of the
basic necessities of people of all ages
and income strata. Socio-economic
changes and fashion awareness
amongst the masses have brought in a
sea change in the living styles in India.
Socks of various types and designs
can be produced by using cotton yarn,
acrylic yarn, polyester yarn, nylon yarn
of different counts, quality and shades.
The elastic portion on the top of socks
is produced by using rubbered yarn or
lycra yarn. This project is prepared for
the manufacture of men’s socks for
domestic market in various sizes toensure that this commodity is available
in a wide range. Subsequently, the unit
may diversify for similar products like
children socks, women stockings etc.
depending upon the market demand
from time to time.

MARKET POTENTIAL

The demand for the socks has been
increasing gradually for the last few
decades particularly in India and other
developing countries. The largest
consumer of socks are the Europeans
and Western countries who have been
using this item as part of their dresses
for a very long period. The European
and Western countries have been
producing socks, from where these
items used to be imported into India and
other countries.
However, as the item has gradually
become popular, the socks have also
been produced in India initially to meet
the domestic demand and subsequently
for export purposes. Over the past few

years as the standards of living went up,
the socks which were earlier worn to
provide comfort to the feet have now
become part of fashion commodities.
The socks industry has a very bright
future as its demand both in India and
abroad has increased substantially.
A Survey conducted recently show
that only 2% of population in India wears
socks and therefore, 98% market is yet
to be exploited, while consumption of
socks in most advanced countries is
extremely high. The existing production
capacity in the country is grossly
inadequate to meet the domestic and
international demand. It is, therefore,
feasible to set up more socks knitting
units.

BASIS AND PRESUMPTIONS
The rental value for building indicated
in the project is Rs. 20 per sq. mt. It
may be less in small cities and backward
areas. The project is based on single shift
basis and 300 working days and time
period for achieving maximum capacity
utilisation considered from 3rd year from
the date on which production is started.
Costs of machinery and equipment
mentioned in this report refer to a
particular make and approximate to
those prevailing at the time of
preparation of this project. The cost of
installation and electrification is taken
@ 10% of cost of machinery and
equipment. Non-refundable deposits,
project report cost, trial production,
security deposits with State Electricity
Board are taken as pre-operative
expenses.
Depreciation has been considered as
10% on plant and machinery, 20% on
furniture and fixtures and 25% on
workshop accessories. Interest oncapital loan is considered as 14% per
annum. Minimum 25% of total
investment is required as margin money.
Break-even point has been calculated
on full capacity utilisation.

IMPLEMENTATION SCHEDULE
The implementation schedule of this
project may take a total period of six
months approximately for starting the
production.

TECHNICAL ASPECTS
Process of Manufacture
Initially, the size and design of the
socks to be knitted are decided and
accordingly, the machines are selected
and set. After setting the machine with
the required design and size, the
predetermined colour yarns are loaded
on the bobbin stands in the creel
assembly of the machine and fed into
the knitting elements of the machine.
Socks are knitted in continuous
process and several operations are
performed before a socks is completed.
Knitting is done in stages begining with
elastic portion for which elastic yarn is
used. The leg portion is knitted followed
by heel and foot portion ending up with
the toe portion of the socks. The toe
portion of socks is closed by stitching
on overlock machine. Socks thus
produced will have acquired dirt which
have to be removed by washing in socks
washing machine containing mild
detergent. After washing, socks are
charged into hydroextractor to remove
excess water and dried in dryer tumbler.
Visual examination is done to remove
any faults and finally ironed to remove
wrinkles and also to provide proper
shape. Socks are reversed and paired

manuallyby attaching pins at different

places and packed in polythene bags.
About 10 pairs of socks are put into
paper board box for sending it to
customers.