Startup

How to Start Rain Coat Manufacturing Business in India?

Rain Coat Manufacturing Business in India

Raincoat, as we all know, helps protect from rain by not letting the dress or the human body get wet in the rainwater. The raincoat manufacturing business hence is made of materials that are water-resistant and are generally made by blending two or more of the following raw materials – cotton, polyester, and nylon. It can also be made from rayon, wool, vinyl, and others.

Setting up a manufacturing unit for raincoats is simple since it generally involves ordering for the raw material or the fabric, designing the raincoat, cutting the fabric and stitching it up. A much smaller level of this type of manufacturing unit can be started from home too.

What are the market trends in the raincoat manufacturing industry in India?

Though not many details are available on the performance of the raincoat manufacturing industry, the GVA (Gross Value added) figures for the Textiles, Apparel and Leather products in India in 2013-14 stood at INR 205,338 crores at the existing prices the financial year.

Setting up the rain coat manufacturing unit centers around the fabric and the design. Also important is the cut and the look of the raincoat.  The market is also divided further into raincoats for men, women, and children. Depending on the style quotient there are more classifications to this rain gear – the short raincoat, commuter, carcoats, sports, utility, long raincoats, and Macintosh.

These days the designing aspects involved in the first stage of raincoat manufacturing are computer enabled that gives the designer lots of flexibility to create new ideas, styles, and colors.

For the industrial unit, the foremost task in raincoat manufacturing involves:-

1. Designing
2. Machine operated cutters are used for cutting the fabric
3. An industrial sewing machine is used to sew the smaller parts like the collar, the buttons etc.
4. Then the lining is sewed to each part and all the large pieces of the raincoat are assembled and sewn together.

What are the compulsory licenses and registrations required for setting up the raincoat manufacturing unit in India?

The specialized manufacturing unit can be set up, especially in a case targeting the export market or to capture a good market share in the domestic market, the following government registrations and licenses are a must to start production –

1. Company Registration with the Registrar of Companies. The Ministry of Corporate Affairs is the governing body that handles the functioning of the ROC in India. The main task of the ROC is Company Registration and Limited Liability Partnerships registration as well as regulation in India. It ensures that the registration is done in compliance with the Companies Act, 2013^[1]. It issues a certificate of incorporation after the applicant business fulfills several statutory requirements.
2. Udyog Aadhaar for MSME is for small and medium scale industries. Once registered for the Udyog Aadhaar the manufacturing unit can take advantage of various government schemes like subsidies, lower interest rates from banks, etc.
3. Trade license from the local municipal body. Trade Licenses are approved or rejected by the state government.
4. Environmental clearance certificate from the State Pollution control board – depending upon the location of the factory, the owner needs to get this certificate. Though there is an exemption for certain industries from this certificate, they need to get the consent from the District Industrial Center or from the State Pollution Control Board to be able to start functioning. For some industries, it is mandatory to get the NOC before being operational.
5. A GST registration certificate that can be obtained by applying online at the government website.
6. The Exporter Importer Code in case targeting the international market – this code is necessary to be able to enter the export-import market and carry out transactions and avail benefits under different government schemes.
7. ISO certification– to achieve good branding in the domestic and international market it is essential that the company gets the ISO Certification from the International Organization of Standards. The certificate is a guarantee to the buyers that the company follows international standards of manufacturing or production of products. The certificate is obtained after different audits that happen but it is worth the effort as it implies that the manufacturing process has followed the statutory and regulatory requirements required for the manufacture of high-quality