Startup

How to Set up a Tracksuit Manufacturing Unit Business in India?

Tracksuit Manufacturing Unit

Tracksuits are generally worn by sportsmen and sportswomen. It is also used by people during their morning and evening walks while participating in sporting activities like marathons and local matches or indoor games by men, women, and children. It is also used as casual wear these days. Good quality tracksuit manufacturing unit from cotton or nylon fabric. The tracksuit is a two-piece garment – the top is a shirt with a zip in front and the trouser that has an elastic belt at the waist.

Manufacturing tracksuits require the unit to install the proper machinery for cutting and sewing the apparel. It also requires the ordering of superior quality raw material from the market.

What is the Market Potential of Tracksuits in India?

With the growing participation of Indian youth in international and national level sporting events and their encouraging performance be it Olympics or the Commonwealth Games, there is definitely more requirement of good quality tracksuits in the Indian market. India’s urban population has more spending capacity now than ever before and they are also well-informed of the significance of physical exercises and sporting activities. There is also good potential for exporting suits to the international market.

The total revenue in the Sports and Swimwear segment in India currently stands at $ 3393 million as against the United States of $ 12881 million. The Indian market pertaining to this segment is expected to grow annually at CAGR 11% from 2018 till 2021.

Another important statics here is that the market volume in this particular segment is forecasted to touch 1118.21 million pieces by 2021 in India.

As per the above figures and backed by good marketing strategies, tracksuit manufacturing is a viable option for the entrepreneur as growth and gain are certain for such start-ups.

What are the Statutory Licenses and Registrations Required to Start a Tracksuit Manufacturing Unit?

• Company registration with the Registrar of Company and also get Trademark Registration done for the brand name and the logo. The ROC will issue the Letter of Incorporation to the business unit.
• Obtain a trade license from the local municipal authority.
• Since this business pertains to small and medium scale industries, it is important for the owner to register the business entity under the Aadhaar Udyog MSME Registration. One can fill in the application online at the government website and upload all required documents to get the registration going. The objective of the Aadhaar Udyog is to facilitate easy business in the country.
• Obtain the GSTIN number through GST registration. It is mandatory if the business plans to sell the tracksuits online or sell across different Indian states and export the product. The business entity can apply online for this registration.
• For standardization and quality purpose, get approval from the Bureau of Indian Standards of India through BIS certification and have the ISI mark
• Additionally, to match up to international standards, the business owner can take up ISO certification too but this is not mandatory.
• Lastly, for exports, the owner needs to get the Import-Export code that is issued by the Regional Authority of Directorate General Foreign Trade. It is a ten-digit code and is a permanent number issued to the business entity.

Also in case, the manufacturing unit is employing staff to perform various tasks, they need to apply for the:-

• Professional Tax registration – this is also an essential registration as per the law and needs to be completed within a month of employing employees in the unit.
• Register with Employee’s Provident Fund, if employing more than 20 employees in the unit.
• ESI (Employees’ State Insurance Corporation) registration– under the ESI Act 1948 is a mandatory registration for any establishment that has 10 or more than 10 employees. With this registration all employees who earn less than Rs. 15000/- on a monthly basis are eligible for health and sickness benefits.