How to Start Innerwear Manufacturing in India

India’s apparel industry is booming, and one of the fastest-growing segments is the innerwear manufacturing business. With rising fashion awareness, comfort-focused clothing trends, and strong demand across Tier-2 and Tier-3 cities, this sector offers high margins and repeat customers.

If you’re searching how to start innerwear manufacturing business in India, this detailed guide covers costs, licenses, machines, profit margins, and step-by-step setup.

1️. Quick Answer Section

Is innerwear manufacturing business profitable in India?
 👉 Yes. Innerwear is a daily-use essential product with consistent demand. Profit margins range from 25% to 50% depending on branding and scale.

Minimum investment required:
 👉 Starts from ₹8–12 lakhs for a small-scale unit.

License required?
 👉 Yes, basic factory and business registrations are mandatory.

Who should start this business?
 ✔ Garment traders
 ✔ Boutique owners
 ✔ Textile entrepreneurs
 ✔ Investors looking for FMCG-type repeat demand

2️. Market Overview (India Focused)

India’s innerwear market is valued at ₹60,000+ crore and growing at 10–12% annually.

  • Shift from unbranded to branded innerwear
  • Rising demand for premium comfort fabrics
  • Growth in online innerwear shopping

🌆 Tier-2 & Tier-3 Opportunity

Smaller cities are seeing rapid growth because:

  • Rising disposable income
  • Fashion awareness through social media
  • Availability of e-commerce delivery

The innerwear manufacturing business in India is no longer limited to metro cities.

💡 Still unsure how to start your innerwear manufacturing business?

Talk to our expert today and get personalized guidance to build a profitable, scalable innerwear brand in India.

3️. Step-by-Step Guide: How to Start Innerwear Manufacturing Business in India

Step 1: Business Registration

You must complete the innerwear manufacturing business registration process:

  • Proprietorship / Partnership / Pvt Ltd
  • MSME (Udyam) Registration
  • GST Registration

Step 2: Licenses Required

Basic innerwear manufacturing license required includes:

  • Trade License
  • Factory License (if manufacturing unit)
  • Pollution NOC (if applicable)

Step 3: Set Up Manufacturing Unit

  • Choose industrial area or small factory space
  • Install sewing, cutting, and elastic stitching machines
  • Hire skilled tailors

Step 4: Branding & Packaging

Your brand matters more than you think.

  • Comfortable fabric positioning
  • Size clarity
  • Attractive packaging

Step 5: Selling Channels

  • Local wholesalers
  • Retail garment shops
  • Amazon / Flipkart
  • Your own website

4️. Cost & Investment Breakdown

Scale Innerwear Manufacturing Business Investment Machinery Working Capital Total Cost
Small ₹4–5 Lakhs ₹3 Lakhs ₹2 Lakhs ₹8–10 Lakhs
Medium ₹10 Lakhs ₹7 Lakhs ₹5 Lakhs ₹18–22 Lakhs
Large ₹25 Lakhs ₹18 Lakhs ₹12 Lakhs ₹45–55 Lakhs

Monthly Operating Cost

Expense Approx Amount
Salaries ₹80,000 – ₹2.5L
Raw Materials ₹1L – ₹5L
Rent & Utilities ₹30,000 – ₹1L
Marketing ₹20,000 – ₹80,000

High search topic: innerwear manufacturing license required

License Name Authority Approx Fees Time Required
GST Registration GST Dept Free 7 days
Udyam Registration MSME Free 1–2 days
Trade License Municipal Corp ₹5,000–₹15,000 10–15 days
Factory License State Factory Dept ₹10,000–₹50,000 30 days
Pollution NOC State PCB ₹5,000–₹25,000 20–30 days

Many entrepreneurs hire an innerwear manufacturing license consultant to avoid delays.

6️. Machinery & Raw Material Cost

🏭 Innerwear Manufacturing Machine Price

Machine Name Approx Price
Flatlock Sewing Machine ₹45,000 – ₹1,20,000
Overlock Machine ₹35,000 – ₹90,000
Elastic Attaching Machine ₹55,000 – ₹1,50,000
Fabric Cutting Machine ₹40,000 – ₹1,00,000
Steam Iron Setup ₹15,000 – ₹40,000

🧵 Innerwear Raw Material Cost

  • Cotton Fabric: ₹180–₹350 per kg
  • Elastic Rolls: ₹90–₹150 per roll
  • Labels & Packaging: ₹3–₹8 per piece

7️. Profit Margin & Income Potential

Innerwear business profit in India depends on branding and sales volume.

Scale Monthly Sales Profit Margin Monthly Profit
Small ₹3–5 Lakhs 25–30% ₹75,000 – ₹1.5L
Medium ₹8–12 Lakhs 30–40% ₹2.5L – ₹4L
Large ₹25L+ 40–50% ₹8L+

Break-even timeline: 12–18 months

The innerwear manufacturing business profit margin is higher for branded products vs contract manufacturing.

8️. Marketing Strategy

📲 Digital Marketing

  • Instagram Reels showing comfort & fit
  • Influencer collaborations
  • Facebook ads for retailers

📍 Local SEO

Register on:

  • Google Business Profile
  • IndiaMART
  • TradeIndia

🛒 E-commerce

Selling on Amazon & Flipkart gives:

  • Nationwide reach
  • Higher brand visibility

9️. Common Problems & Mistakes

❌ Delay in factory license
 ❌ Poor stitching quality
 ❌ Wrong size charts
 ❌ No brand identity
 ❌ Ignoring online sales channels

Fixing these early improves innerwear business profit in India.

10. Government Schemes & Support

Indian government supports textile startups via:

  • PMEGP Loan Scheme
  • Mudra Loan (up to ₹10 lakhs)
  • CGTMSE Collateral-Free Loans
  • State textile subsidies

These schemes reduce innerwear manufacturing business investment burden.

11. How Professional Consultants Can Help

Starting a factory involves paperwork. A business setup consultant in India can help with:

✔ Factory license approval
 ✔ GST registration for manufacturing business
 ✔ Pollution NOC handling
 ✔ MSME registration
 ✔ Startup compliance services in India

Hiring a professional advisory for garment manufacturing saves time, prevents rejection, and ensures faster approvals.

1️2️. Conclusion

The innerwear manufacturing business in India is a high-demand, repeat-purchase industry with strong profit margins and scalable opportunities. With the right machinery, branding, and compliance setup, even a small unit can grow into a regional brand within a few years.

If you plan properly and complete the required registrations, this business can become a stable long-term income source.

💡 Want to grow your innerwear brand online?

Explore our complete guide on Digital Marketing for Innerwear Manufacturing Business and learn how to attract retailers, increase online sales, and build a strong, trusted brand presence in India.