khadi unit

How to Start your own KHADI Unit in just Rs. 2.5 Lakhs

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According to the project report prepared by Ministry of MSME, now you can open Khadi Unit in just Rs. 2.5 Lakhs and earn upto Rs. 7.5 lakhs. Read on..

With the rise in the demands for Khadi fabric and garments, Khadi provides an excellent opportunity for startups to foray into the venture of making Khadi and Khadi garments.

One such venture is Khadi Unit for the production of Khadi Cloth and garment.

According to the project profiles report prepared by the Ministry of Micro, Small and Medium Enterprises (MSME) under the Prime Minister’s Employment Generation Program (PMEGP) now you can set up a KhadiUnit with the initial investment of Rs. 2,50,000/- only. On the basis of this project report one can apply for the loans given under PMEGP.


This project report is for the Khadi Unit with the capacity of making 16000 Khadi Shirts in an year. According to the report, the Capital Expenses will come to about Rs 13 lakhs, that includes rented workshop and Machinery and equipment (Rs. 10 lakhs), fixed assets (Rs. 1 lakh) etc. Add 3-month working capital (Rs. 12 lakhs) to it.

This means, one can start the project in Rs. 25 lakhs . And if you take loans under PMEGP then you need to arrange for 10% of the project cost(2.50 lakh rupees) in the form of margin money and rest 90% as loans from the bank.


  1. 25 Spindle Charkha
  2. 5 Improved Looms
  3. 5 Weavers Own Looms
  4. Yarn Dyeing
  5. 5 Single Needle Lock Stitch Machine
  6. 1 Over Locking Machine
  7. 1 Automatic Cutting Machine and allied accessories.

This will cost you about Rs. 10,50,000/-


According to this Project Report, if you make 16 thousand shirts in an year, this will cost you about Rs 49 lakhs. Other than this, if you include interest on loans, depreciation and other expenses, it totals up to Rs. 50,80,000/-.

Now, if you supply the shirt in the market for Rs.400/- per unit only, your total sale will be around Rs. 65,50,000/- yearly.

That means you will earn approximately Rs. 7,50,000/- yearly.


  1. Government is giving 30% subsidy to start this project
  2. You can sell your Khadi products through various Khadi Ashrams run by the government across India.

Contact AJNA – basant anuj on to know more about various Khadi startup Ideas.

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