How to Start a Textile Business in Surat

If you are looking to start a small business in Surat, read to know what you should keep in mind before you get started.
Business Loan
2 min read
21 November 2023

The two dominant aspects of Surat’s economy are the diamond and textile export businesses. The Surat municipal corporation (SMC) is keen on ‘made in Surat’ for local traders and ‘make in Surat’ for outside business persons. Textile manufacturing entails a conversion of fibre to yarn and then to the fabric. These are printed or dyed and stitched into clothes.

What is a textile business?

A textile business involves the production, manufacturing, and distribution of fabrics and textiles. This encompasses a broad range of activities, from sourcing raw materials to the creation of finished products. In this industry, businesses may specialize in various aspects, including weaving, dyeing, printing, and garment manufacturing. A dynamic and essential sector, the textile business plays a crucial role in meeting global demands for clothing, home furnishings, and industrial applications.

Textile business plan and cost

While you make a textile business plan, consider the below points:

  • Research the market: Understand the product demand, competition, and existing prices in the market.
  • Choose the right suppliers: Source the right fabric or other raw materials by finding manufacturers or vendors who offer good quality along with a wide variety of materials.
  • Determine the capital requirements: Know the type and amount of capital that you need, basis the textile business costs involved.
  • Look for finance: Basis your capital needs, choose among the various funding options available.

How to start a textile business in Surat

Textile manufacturing entails the conversion of fibre to yarn and then fabric. These are printed or dyed and stitched into clothes. You can open a manufacturing unit for any of these processes, or you can be the manufacturer of textile equipment, dyes, and so on. If you do not know how to start a manufacturing business, first you need land, leased or bought.

Once the premises are taken care of, your other major expense is the equipment - power looms, ring spinning machines, simplex frames, textile testing equipment, etc.

For processes after spinning, some of the major equipment that you will require includes:

  • Power looms for weaving
  • Knitting machines
  • Tufting machines

Textile business opportunities in India

India offers abundant opportunities in the textile business due to its rich tradition in textiles and a vast pool of skilled labour. Entrepreneurs can explore various segments such as garment manufacturing, handloom, power loom, and textile exports. With the government's supportive policies, initiatives like Make in India, and a growing global demand for Indian textiles, the sector presents promising prospects for those seeking to establish or expand their ventures in the dynamic Indian textile industry.

Additional Read: Tips to expand your manufacturing business
Additional Read: Get export finance easily.

On average, a ring-spinning machine costs Rs. 25 lakh. A fabric laser-cutting machine can cost between Rs. 4.5 lakh to Rs. 10.5 lakh. On the lower end, the rapier looms costs Rs. 3 lakh - Rs. 10 lakh.

Textile export business

If you are an exporter in the textile industry, building a network is key to growing your export business. It is important to participate in events like ‘textiles India’ by the power loom development and export promotion Council (PDEXCIL) to find buyers.
Active participation in trade fairs, buyer-seller meets, B2B portals is also vital. With the ‘Make/ made in Surat’ initiative gathering impetus from the SMC, major costs involved in purchasing equipment and an unsecured business loan can help kickstart your business growth.

How can a business loan help start your textile business?

A business loan can be a vital catalyst for launching your textile venture. It provides essential financial support, covering expenses like machinery purchase, raw materials, and operational costs. With a well-structured loan, entrepreneurs can kickstart their textile business, ensuring smooth operations and sustained growth. This financial assistance empowers business owners to navigate initial challenges and capitalise on opportunities, contributing to the success and sustainability of their textile enterprises.

If you are looking to start a textile business, you can apply for a Bajaj Finserv Business Loan. You can get high-value financing of up to Rs. 55 lakh with a convenient tenure of up to 96 months.

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Frequently asked questions

How much does it cost to start a textile Business in India?

The cost of starting a textile business in India can vary depending on the scale and type of operation. A small-scale textile business can be started with an investment of around Rs. 5-10 lakhs, while a larger operation may require Rs. 50 lakhs or more. Factors such as machinery, raw materials, and labour costs will also affect the total investment required.

What is the profit margin of a textile business?

The profit margin of a textile business can vary depending on the type of products, market demand, competition, and other factors. Generally, the profit margin in the textile industry ranges from 10% to 25%. However, it can be higher or lower depending on the efficiency of operations, pricing strategy, and other business-related decisions.

Which textile business is most profitable in India?

The most profitable textile businesses in India are those that operate in the areas of high demand and low competition, and have the ability to produce high-quality products at a low cost. Some of the most profitable textile businesses in India include textile manufacturing, export, retailing and online sales, and clothing and apparel production.