This business idea focuses on the production and marketing of cotton knitted wear, including pullovers, slipovers, and children’s suits. Cotton knitted wears serve as affordable substitutes for expensive woolen garments, making them popular among middle-class and low-income communities. With a production target of 2,600 pieces per month, the estimated revenue potential is US$13,000 per month, totaling US$156,000 per year, with a sales margin of 10%. The total investment requirement for this business is US$3,588.53.

Capital Investment Requirements

This business idea is suitable for both small-scale and medium-scale investments. The capital injected into the business depends on the desired production capacity and market demand.

Production Capacity

The production capacity is determined by the labor, materials, and equipment used in the manufacturing process. With a single shift of 8 hours per day and 312 working days per year, the minimum production target is set at 10 pieces per day, resulting in 2,600 pieces per month.

Technology and Process Description

Cotton knitted cloth in various designs and color combinations is purchased from knitting units. The cloth is spread on the cutting table, and garments of the required sizes are cut. These cut pieces are then stitched using lock stitching sewing machines and overlocked for durability. The stitched garments are pressed and packed for marketing.

General Costs (Overheads)

To evaluate the financial aspects of the business, it is important to consider general costs and overheads. Production costs are assumed for 312 days per year, with a daily capacity of 100 pieces of cotton knitted wear. Different knitted wear in various sizes and designs can be produced. Depreciation is calculated based on a 4-year write-off period at a rate of 25% per year for all assets. Direct costs include materials, supplies, and other expenses directly related to the production process. A production month is assumed to have 26 workdays.

Market Analysis

The market potential for cotton knitted wear is high, with readily available markets throughout the country and potential for export to neighboring countries. These affordable and comfortable garments cater to the needs of middle-class and low-income communities, making them a popular choice.

Conclusion

Investing in the production of king cotton knitted wear in Kenya offers a promising business opportunity. With a high market potential and the availability of materials, entrepreneurs can meet the demand for affordable and stylish cotton garments. By providing comfortable and cost-effective clothing options, this business idea not only generates revenue but also contributes to the fashion industry and the well-being of consumers.