order to achieve perfect garment costing, one must know about all the
activities including purchase of fabrics, sewing, packing, transport,
overheads, etc and also about their costs, procedures, advantages and risk
factors, advocates C Vigneswaran.
The Indian textile and apparel industry is very large and diverse,
employing 35 million people and accounting for 27 per cent of the country's
exports. The apparel industry plays a pivotal role as a key driver of the
national economy and has grown to be the most significant contributor to the
country's economy over nearly three decades of its existence. However,
during last 10 years, the industry's actions, government policies as well as
market events have begun to converge, providing several growth opportunities
for the sector domestically as well as in the global market.
As the MFA quota-regime ended, India presented many opportunities for
buyers, suppliers and investors to collaborate with its textile industry,
and to profit from the partnership. While the industry recorded a remarkable
growth in a protected market environment, it faces a series of challenges
that have come to the fore in the post-quota situation, notably in areas
- Price competitiveness.
- Faster lead times.
- High raw material base.
- Full service offering.
- Access to market. "A Cost is the value of economic resources used
as a result of producing or doing the things costed".
There are two types of garments, namely woven and knitted garments.
Shirt, trouser, sarees, bed spreads, blankets, towels and made ups are
woven. T-shirts, sweaters, undergarments, pyjamas and socks are knits.
Costing is the deciding factor for fixing of prices and the important
thing to follow in all stages like purchase, production, marketing, sales,
etc. Also update knowledge about everything related to garments, is
essential to make perfect costing.
Costing includes all the activities like purchase of fabrics and
accessories, processing and finishing of fabrics, sewing and packing of
garments, transport and conveyance, shipping, over heads, banking charges
and commissions, etc.
We must be aware that there are always fluctuations in the costs of raw
materials and accessories, charges of knitting, processing, finishing,
sewing and packing, charges of transport and conveyance. The method of
making costing will vary from style to style. As there are many different
styles in garments. Hence let us take men's basic T-shirt style as example
which is in regular in use.
To find out the costing of a garment, the following things should things
- Fabric consumption.
- Gross weight of other components of garment.
- Fabric cost per kg.
- Fabric cost per garment.
- Other charges (print, embroidery, etc).
- Cost of trims (labels, tags, badges, twill tapes, buttons, bows, etc).
- CMT charges.
- Cost of accessories (hangers, inner boards, polybags, cartons, etc).
- Cost of a garment.
- Price of a garment.
The garments manufactured in many sizes to fit for everybody. Generally
they are in sizes Small (S), Medium (M), Large (L), Extra large (XL) and
Double Extra Large (XXL). The quantity ratio or assortment can be any one of
the following approximate ratio.
S: M: L: XL: XXL - 1:2:2:2:1
S: M: L: XL: XXL - 1:2:1:2:1
S: M: L: XL: XXL - 1:2:3:2:2
As the price is the same for all these sizes of garments, the author have
taken the centre size large(L) for average calculation. Generally, the
quantity of L size will be higher or equal to the quantity of each of other
Men's Basic T-shirt
Men's Basic T-shirt-short sleeves- 100% Cotton 140 GSM Single jersey - 1 x 1
ribs at neck - solid dyed - light, medium and dark colours in equal ratio.
Sizes: S, M, L, XL, XXL Ratio: 1: 2: 2: 2: 1
Export carton: 7 ply -120 GSM virgin corrugated - sea worthy. Cartons are
to be strapped with 2 nylon straps.
Measurements in cm: (Finished garment)
Chest - 60 cm
Length - 78 cm
Sleeve length - 24 cm
Neck rib width - 3 cm Hem - 3 cm
Patterns are generally made with the seam allowance and cutting
allowance. Generally, 12 cm is added with the total of body length and
Fabric consumption =(Body length + Sleeve length + allowance) * (Chest
+ allowance) * 2 * GSM
= (70 + 24 + 12) * (60 + 3) * 2 * 140
= 187 grams
Body & Sleeves : 187 grams
Neck rib : 10 grams (approximately)
Gross weight : 197 grams Therefore, the fabric consumption per garment is
Gross weight & net weight
The above weight is the gross weight of fabric. It means the weight of
the fabric bits cut in tubular form without taking shapes is called gross
weight. This is the consumed fabric for the particular garment. Hence
costing is to be made as per this gross weight. The weight of the cut pieces
after taking the shape according to the pattern is called net weight of
Fabric cost per kg (in Rs) (all charges approximately)
|Cost of fabric per kg is
calculated and given in
|34's combed yarn
|Fabric wastage @ 5%
|Fabric cost per kg
|Fabric consumption per garment
|Fabric cost per garment
Cost of trims
The accessories which are attached to the garments are called Trims.
Now the author have taken Men's Basic T-shirts, as example. Let us see
what are the trims required for this style.
Labels: Woven main label (2.5 cm width x 7 cm length): Rs 0.35
Polyester printed wash care label: Single colour print: Rs 0.10
Hang tag: Rs 0.40
So the total cost of trims is Rs 0.85 per garment.
Cost of accessories:
Polybags: Normal - Rs 0.30 per garment
Master Polybag: Rs 2 per master polybags to contain 8 garments - Rs 0.25
Export carton: Normal: Rs 40 per carton to contain 48 garments - Rs 0.80
So the total cost of accessories is Rs 1.35 per garment.
Now we at last have to take the step to find out the freight charges for
the Men's Basic T-shirt. Price of garment estimation is given in Table 2.
|Table 2: The freight
charges for the Men's Basic T-shirt. Price of garment estimation is
|34's combed yarn
|Fabric cost per garment
|Cost of Trims
|Cost of accessories
|Rejection of garments (commonly 3%)
|Cost of Garment
|Price of Garment
For men's basic T-shirt, the delivery terms in the buyer enquiry as
'FOB'. So sea freight charges is not added. But the local transport with the
cost of garment has to be added. Finally, we have to convert the Indian
rupee value to USD or Euro.
The author expresses his thanks to Dr R Rudramoorthy, Principal and Dr K
Ramachandralu, Professor & Head-Fashion Technology, PSG College of
Technology, Coimbatore for their continuous encouragement. He also extends
his thanks to Mr M Ravi, Costing Manager, Stallion Garment, Tirupur and Mr
Jagadeesh, Production Manager, Apple Clothing Limited, Coimbatore for their
help towards the practical approach in bringing out this paper.
Note: For detailed version of this article please refer the print version
of The Indian Textile Journal May 2009 issue.
Lecturer, Daprtment of Textile of Fashion Technology,
PSG College of Technology,
Coimbatore 641 004.
Email : email@example.com.