Textile Business in Surat | 7 Steps to Be an Entrepreneur
Surat is one of the most important textile business hubs in India. It is also known as a diamond city and is famous for its cotton mills.
A recent study by ASSOCHAM has revealed that the textile sector in Surat has grown by 9%.
This growth was driven by a rise in demand for cotton textiles, which were up by 10% over last year.
Other products such as woolen and silk textiles also saw an increase of 8% and 20%, respectively.
As a result, the textile industry has become a major source of employment and income for the people of Surat.
Steps to Start Textile Business in Surat
- Market Research
- Investment Planning
- Picking a Location
- Registering your Business
- GST Registration
- Finding Suppliers, Sourcing Goods and Setting up the Store
Step 1 — Market Research
When conducting the market research for starting your new textile business you should consider the following points: -
- Identify the Market
The textile industry in Surat was initially based on cotton, but now it has diversified to include other materials like silk, wool, artificial fibres and so on.
In fact, the textile market in Surat is one of the biggest markets in India and is still expanding.
It is the perfect place for anyone who wants to start their own textile business or expand their existing business.
- Choose a Feasible and High Demand Product
Accordingly, the three main textiles manufactured and wholesaled in Surat are:
- Cotton
- Silk
- Polyester
However, textiles are not just clothes but also carpets, rugs, curtains, upholstery, and other fabrics.
Thus, you can also choose to manufacture or wholesale any of these as well.
- Know the Competition
There are many small as well as big textile manufacturers and wholesalers that are operating in this city.
Most of them are there for more than 100 years. So, it can be a bit difficult to compete with them.
However, the textile business in Surat has been witnessing a major transformation over the past few years.
The traditional mills are replaced by new and modernized ones, which are more efficient and environment-friendly.
As a result, it is opening opportunities for new entrepreneurs with creative and innovative ideas.
- Sampling
Once you choose your textile product and know about the competition, start with sampling.
Make a few samples (Prototype) and release them on the market.
Also, you can attend workshops and giveaway the samples there.
- Pick your Niche
Once you do sampling, you can figure out which niche to pick and who are your target customers.
Thus, make your marketing strategy accordingly. As a result, it will help you target more customers and grab their attention easily.
- Collect Data
The last step is collecting all the data you got during the market research.
It will help you with developing a marketing strategy, advertising content and planning for future goals.
Step 2 — Investment Planning
The investment required for the textile business will depend on the following:
- Type of your Business
- The scale of your Business
- Textile Products
Accordingly, here is the minimum investment you require to start a textile business:
- Retail Textile Store — Minimum Rs. 5 Lacs
- Wholesale Textile Business — Minimum — Rs. 20 Lacs
- Manufacturing Textile — Minimum Rs. 40 Lacs — Rs. 50 Lacs
- Textile Exporting Business — Minimum Rs. 10 Lacs
Further, there are various types of things that require investment when starting a textile business in Surat.
Such as machinery, raw material investment, labour cost, transportation cost etc.
Step 3 — Picking a Location
When it comes to picking a location for the textile business, many factors should be taken into consideration.
One of the most important factors is the availability of infrastructure and supply chain.
Surat is one of the most popular cities in India for the textile industry because of its availability of infrastructure and supply chain.
It has several manufacturing units which provide textiles to other industries in India.
It also has an established supply chain which makes it easy for companies to import raw materials from other countries and export finished products.
Surat also has an excellent road network connecting it with other parts of the country, making it easier to transport goods from one place to another within a short period.
With this in mind, here is a list of places in Surat where you can start your textile business:
- Sahara Darwaja
- Shanivari Market
- Old Bombay Market
- Universal Textile Market
- Chauta Bazaar
- Rander Bazaar
- Ghod Dod Road
Step 4 — Registering your Business
Registering your textile business in Surat is a must.
It will help you to be part of the textile industry and make sure that your business is not disrupted by any other competitor.
It will help you stay ahead of the competition and give you an edge over them.
Moreover, it will allow you to take on more orders and give your customers a sense of security that they are dealing with a registered business.
You can register your textile business as:
- Private Limited Company
- One Person Company
- Limited Liability Partnership
- Sole Proprietorship
- Partnership
The registration process is pretty simple and does not require much paperwork, just basic documents like a PAN card, address proof, etc.
Step 5 — GST Registration
GST Registration is mandatory for all the textile traders in Surat.
A textile trader needs to register under GST because it helps them to get an input tax credit on the taxes paid on goods purchased and also helps them to claim a refund of taxes paid on goods sold.
Textile traders in Surat should register under GST and get their GST registration done before the deadline expires.
However, there are some exemptions from the GST registration process for textile traders in Surat.
For example, if a trader has a turnover of less than Rs. 40 lacs per annum, then they are not required to register under GST.
GST registration is mandatory for all traders who have an annual turnover of Rs. 40 lacs or more.
Step 6 — Finding Suppliers, Sourcing Goods and Setting up the Store
This step could be tricky if you do not know about the suppliers already.
For this purpose, you can visit your competitors and act like a researcher or surveyor. You can ask them about their suppliers and collect information about them.
After choosing your suppliers and negotiating a good deal, source your goods and start with setting up your store.
If you are setting up a manufacturing unit, consult a professional when setting up your machines and then start stocking up.
For a retail store, you can choose a theme like vintage, aesthetic or luxury. After that, pick your furniture and fixtures accordingly.
That’s it! Now you are good to go and start your Textile business in Surat.
