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Tailoring and Alteration Shop Business

सिलाई दुकान व्यवसाय · शिवणकाम दुकान व्यवसाय

Stitch blouses, salwar suits, shirts and trousers to measure and do alterations from a small shop or a room at home.

Can start from home₹2–5 lakhPrices not yet confirmed with suppliers

Investment

₹2.3 lakh

Profit a month*

₹23,000

Space
150 sq ft
Staff
1 + you

*Operating profit before the loan instalment in year 2, at the assumed sales level. Change the assumptions in the calculator below.

A tailoring shop stitches clothes to each customer's measurements from fabric the customer brings, and alters readymade clothes. It needs one to three sewing machines, an overlock machine, a cutting table and an iron, and can start in a room at home. It suits a skilled tailor: fit and finish are the whole product, and satisfied customers return for years and bring their families. There is almost no material cost, so earnings depend on how many garments you and your tailors can finish and what you can charge. The profit shown assumes the owner cuts and stitches. The hard parts are festival and wedding rush with deadlines, slow months in between, readymade clothes replacing stitched ones, and finding tailors.

Skills needed: Cutting and stitching skill, from an ITI or tailoring course or apprenticeship. Blouse, bridal and suit work command higher rates.

Profit calculator

Change the numbers to match your town

6 garment/day: Garment stitched or altered (average)

Add-ons

Total investment

₹2.28 lakh

Your own money

₹22,774

Subsidy

—

Bank loan

₹2.05 lakh

Mudra Kishore

A typical month in year 2

Sales₹50,050
Raw material & packing−₹4,290
Electricity−₹1,370
Salaries−₹12,600
Rent−₹6,300
Other running costs−₹2,100
Operating profit₹23,390
Loan instalment (EMI)−₹4,779
You keep each month₹18,611

After the loan is repaid, the EMI becomes your income too. Your own salary is not counted as a cost: the profit is your income.

Break-even at 31% capacityDSCR 6.25 (banks like ≥1.5)Payback ≈ 1.2 years

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Investment breakdown

Machinery & equipmentPrice
Industrial single-needle lockstitch machine × 3₹63,000₹15,500–₹36,000
Overlock machine₹30,000
Steam iron and ironing table₹17,500₹13,000–₹22,300
Cutting table, counter, mirror and trial room₹45,000
Scissors, tapes, patterns and tools₹8,000
Signboard and display₹12,000
Embroidery / zigzag machineadd-on₹60,000
Machinery & equipment (without add-ons)₹1,75,500
Rent deposit₹18,000
Shop Act and other registrations₹1,500
Electrical work and lighting₹8,000
Working capital 30 days of raw material, 0 days of credit to buyers, 1 month of expenses₹24,740
Total project cost₹2,27,740

Typical market prices as of October 2026, from supplier listings. Prices vary by brand, capacity and city; always get 2–3 quotes.

Cost and margin per unit

Garment stitched or altered (average) (per garment)₹
Thread, lining, hooks, buttons, zips and interlining30.00
Material cost30.00
Selling price350.00
Margin before running costs320.00 (91%)

Average across blouses, suits, shirts, trousers and alterations. A Mumbai tailor's published rates were ₹220–750 for a blouse and ₹450–550 for a salwar suit; small-town rates are lower. Customers bring their own fabric.

Space, power and staff

150 sq ft

Rented shop · rent ≈ ₹6,000/month

Small-town rent for a small shop in a residential market. A home unit saves the rent; set it to zero in the calculator.

2 kW, single-phase

Bill ≈ ₹2,000/month at full capacity

1 staff + you

  • 1 × Tailor: ₹12,000

Licences and registrations

Shop and Establishment registration

mandatory

When: Within the period your state sets after opening a shop · Cost: Small fee; varies by state

Udyam registration

recommended

When: Before applying for a loan · Cost: Free

Apply only on udyamregistration.gov.in.

GST registration

if applicable

When: Only if turnover crosses the registration limit for services · Cost: Free

Most tailoring shops stay well below it.

How it works

  1. Take measurements and note the design; give a receipt with the delivery date.
  2. Mark and cut the fabric.
  3. Stitch, overlock and finish.
  4. Press, and do a trial fitting where needed.
  5. Deliver on the promised date and keep the measurements for next time.

Loan route

Mudra loan (Kishore)

Own money ₹22,774 · Loan ₹2.05 lakh · EMI ≈ ₹4,779

No collateral, no subsidy.

How Mudra works

PMEGP (new units)

Subsidy ₹34,161 (general, urban) to ₹79,709 (special category, rural). EMI ≈ ₹3,983–₹3,186.

Own money 5–10%. Subsidy is held as a 3-year deposit, then adjusted against the loan.

How PMEGP works

Assumes 10.5% interest, 5 years including a 6-month moratorium. PMEGP was approved up to FY 2025-26. Check on the KVIC PMEGP portal that applications are open before you plan around the subsidy.

No collateral and no third-party guarantee (covered by the Credit Guarantee Fund for Micro Units).

Who buys and how to sell

Buyers

  • Women needing blouses, suits and dresses
  • Men needing shirts, trousers and kurtas
  • Brides and wedding families
  • Schools and offices (uniforms)
  • Readymade shops needing alterations

Ways to sell

  • A shop in a residential market or near cloth shops
  • Tie-ups with fabric and saree shops
  • WhatsApp design catalogue and home pick-up
  • Alteration contracts with readymade stores

Season: Rush before Diwali, Eid, weddings and school reopening; quiet in the monsoon.

Competition: Many neighbourhood tailors, plus readymade and online clothing. Fit, finish and on-time delivery keep customers.

Risks and how to handle them

A customer's costly fabric is spoiled by a cutting mistake

Re-check measurements, cut bridal and expensive fabric yourself, and be clear about liability.

Missed delivery dates in the festival rush

Stop taking orders once capacity is full, and price urgent work higher.

Tailors leave in peak season

Pay fairly and on time, and keep contact with part-time tailors.

Fewer people stitching everyday clothes

Focus on blouses, occasion wear, uniforms and alterations, where readymade does not serve well.

Tips from the trade

  • Blouse stitching is steady, repeat work with good rates for designer patterns.
  • A tie-up with a saree or cloth shop sends customers every day.
  • Take an advance on wedding orders.

Questions people ask

Can I start with a domestic sewing machine?+

Yes, for a home start. An industrial lockstitch machine is faster and lasts longer once you stitch all day.

Is a boutique the same as a tailoring shop?+

A boutique also designs, stocks fabric or ready pieces and charges more per garment. It needs more investment in stock and interiors.

How much investment is needed to start a tailoring and alteration shop business?+

About ₹2.28 lakh for a small unit: ₹1.75 lakh for machinery and equipment, ₹27,500 for set-up costs and ₹24,740 as working capital (stock, credit to buyers and one month of expenses). Prices as of October 2026.

How much profit can a tailoring and alteration shop business make per month?+

At 55% of capacity, sales are about ₹50,050 a month and operating profit about ₹23,390 before the loan instalment. After an EMI of about ₹4,779, the owner keeps about ₹18,611 a month until the loan is repaid. These are estimates; your prices, rent and sales decide the real figure.

Which machines are needed for tailoring and alteration shop?+

Industrial single-needle lockstitch machine (₹15,500–₹36,000); Overlock machine (about ₹30,000).

Can I get a Mudra loan or PMEGP subsidy for tailoring and alteration shop?+

With a project cost of about ₹2.28 lakh, the bank loan of about ₹2.05 lakh falls under Mudra Kishore. Mudra has no subsidy. As a new unit you may instead apply under PMEGP, where the subsidy is 15–35% of the project cost (up to about ₹79,709 here for a special-category applicant in a rural area). PMEGP was approved up to FY 2025-26. Check on the KVIC PMEGP portal that applications are open before you plan around the subsidy.

What licences are required for tailoring and alteration shop?+

Mandatory: Shop and Establishment registration. Depending on your set-up you may also need: Udyam registration, GST registration.

Similar businesses

Sources

Prices as of October 2026. Prices here come from online listings and published guides and have not yet been confirmed with local suppliers. Profit figures are estimates from the assumptions above, not a promise of income.

Spotted an outdated price? Tell us. Data for this page: HowIndiaEarns.