draft panipat proposal ppt

8/12/2019 Draft Panipat Proposal Ppt

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PROJECT PROPOSAL FOR

PANIPAT CLUSTER

Department of Industries

Government of HaryanaPrepared by: Access Consultancy Services

www.accessconsulting.in


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CLUSTER PROFILE

Primary stakeholder of cluster comprise of

manufacturers and exporters of home furnishingproducts. The cluster has

3000 manufacturing units

300 registered export units

Turnover of Rs. 11,000 crores per annum

Export oriented units with annualturnover of Rs. 3000 crores

Units catering to domestic market have

an annual turnover of Rs. 8000 crores

Employment: 50,000 persons

Cluster caters to both domestic and international markets

Products: Carpets, durries, rugs, blankets (acrylic, shoddy and woolen),

upholstery, curtains, bed sheets etc.


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1 INTRODUCTION

2 KEY CHALLENGES3 CLUSTER DEVELOPMENT APPROACH/PROCESS4 GLOBAL SCENARIO (HOME FURNISHINGS/CARPETS)

5 CLUSTER SCENARIO/PROFILE6 SWOT ANALYSIS/NEED ASSESSMENT7 PROJECT PROFILE

8 PROPOSED FACILITIES9 PROJECT COST & MEANS OF FINANCE

10 ENVISIONED IMPACT ASSESSMENT

STRUCTURE OF THE PRESENTATION


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INTRODUCTION- PANIPAT CARPET CLUSTER

INDIAS GLOBAL SHARE IN TUFTED CARPETS IS 8.5%

WE ARE RANKED 5TH IN GLOBAL EXPORTS

ANNUAL GROWTH HAS BEEN NEGATIVE (-2%) OVER 2005 TO

2009-10


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KEY CHALLENGES

LONG PRODUCT DEVELOPMENT TIME

LONG LEAD TIME

10% YARN WASTAGE

NO PROFESSIONAL DESIGN CENTER

LIMITED CARPET WIDTH < 10 FT

AUTO SECONDARY BACKING NOT AVAILABLE

AUTOMATIC PRINTING FACILITY NOT AVAILABLE

CLUSTER IS INTO PRICE BASED COMPETITION NOT DIFFERENTIATION BASED (DESIGNSAND BRANDING)

SHORTAGE OF SKILLED MANPOWER


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GLOBAL SCENARIO-HOME FURNISHING

S.NO. EXPORTERSVALUE EXPORTED IN 2009,

IN USD THOUSAND

ANNUAL GROWTH IN

VALUE

2005-2009 (%)

SHARE IN WORLD

EXPORTS

(%)

1 CHINA 1331471 5 36.1

2 INDIA 1022263 -3 27.83 TURKEY 158823 1 4.3

4 VIETNAM 122257 29 3.3

5 GERMANY 99654 21 2.7

INDUSTRY WORLD LEADER MARKET

SHARE (CHINA)

INDIAS MARKET SHARE

HOME FURNISHING 36% 27%


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GLOBAL SCENARIO-CARPETS (TUFTED)

INDUSTRYWORLD LEADER

MARKET SHARE

(BELGIUM)

INDIAS MARKET

SHARE

CARPETS (TUFTED) 18% 8.5%

S.NO. EXPORTERSVALUE EXPORTED

IN 2009 (USD

THOUSAND)ANNUAL GROWTH

IN VALUE, 2005-

2009 (%)SHARE IN WORLD

EXPORTS (%)

1 BELGIUM 2056714 -2 18

2 CHINA 1491264 15 13

3 TURKEY 1075733 15 9.4

4 NETHERLANDS 1000220 1 8.7

5 INDIA 978190 -2 8.5


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CLUSTER SCENARIO CURRENT PRODUCTION:

30% OF CLUSTERS ANNUAL

PRODUCTION IS EXPORTED.

CARPETS ACCOUNT FOR MORE

THAN 25% OF EXPORTS.

BLANKETS 50%. BED SHEETS 16%


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STRENGTHS

TRADITIONAL BRAND STRENGTHS.LOCATED NEAR DELHI .

PRESENCE OF SUPPORT INSTITUTIONS.

CLUSTER CURRENTLY CATERING TO THEEXPORT MARKET.

MARKETING INFRASTRUCTURE IN PLACE.

WEAKNESSESLIMITED RANGE OF PRODUCTS.

LOW FACTOR PRODUCTIVITY.

NO DIFFERENTIATED PRODUCT. REPETITIVE DESIGNS

SMALLER WIDTH CARPETS BEING PRODUCED

MANUAL, SPRAY LATEXING, SUB STANDARD QUALITY

TRADITIONAL PRINTING NOT VERY ACCURATE AND

APPEALING.

OPPORTUNITY

A NATURAL CLUSTER OF 1000 + MSME.

DIVERSIFICATION OF PRODUCTS.MOVING UP THE VALUE CHAIN.

CONSOLIDATION OF PRODUCT PROFILE.

UN-EXPLORED MARKETS ( AFRICA & LATINAMERICAS

THREATS

STIFF COMPETITION FROM CHINA.

FAST EVOLVING PRODUCTION TECHNOLOGIES.

VAST VARIETIES OF DESIGNS.

FASTER DELIVERY SCHEDULES.

QUALITY BACKING AND PRINTING TECHNOLOGY.

SWOT ANALYSIS


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NEED ASSESSMENT- GAP ANALYSISPRODUCT REASONS FOR LIMITED SUCCESS INTERNATIONALLY PREVALENT TECHNOLOGY

BATH

MATS &

RUGS

Absence of raw material bank (possibility

of cost cutting by7-10%)

Low accuracy of designs

Long product development cycle on

account of manual processes

Delayed shipments and limited sampling

techniques resulting in cost overrun

Use of CAD / CAM for product development for

more accurate designs and allows design

variations

CARPETS

Non availability of wide carpets on account

of lack of wide width looms

Low productivity

Non availability of faster printing faclitiesand techniques.

Inability to develop designs that cater to

changing global taste

High wastage involved in experimenting

with designs while replicating products

which have a growing demand ininternational market

Wide width tufting machine that ensures higher

productivity during mass production

Presence of modern weaving carpet units with

wide width looms which facilitate execution of

bulk orders.

Use of technology that involves shorter product

production cycle

CAD/ CAM allows experimenting with designs on

computer before actually replicating it on the

carpets.

Usage of automatic small tools in tufting,latexing and finishing resulting in standardization


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PROPOSED FACILITY-

CLUSTER STANDARD VS GLOBAL STANDARD

PROPOSEDFACILITY

CLUSTER STANDARD GLOBAL STANDARD

CARPETS 10 FT. X 12 FT. WIDTH UPTO 16 FT. AND MORE

10% YARN WASTAGE NEGLIGIBLE YARN WASTAGE WITH ADVANCED

PRODUCTION MACHINES

TUFTING 1 METRE PER DAY PERARTISAN

3-4 METRES PER HOUR

BACKING MANUAL SPRAY LATEXING. FULLY AUTOMATED SECONDARY BACKING

PLANTS. SUPERIOR & LONG LASTING FINISH

TIME OVER RUNS AND

DELAY IN DELIVERY

SHORTER PRODUCTION CYCLE RESULTING IN

REDUCTION IN COST OVER RUN AND ON TIME

DELIVERY

PRINTING TRADITIONAL MANUAL

DYEING

CHROMOJET / PRINTING MACHINE WITH

VERSATILITY OF COLOR AND SPEED.


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Introduction- Panipat Carpet ClusterEXISTING TECHNOLOGY -TUFTING


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EXISTING PRODUCTSCARPETS / RUGS GLOBAL RANGE OF PRODUCTSCARPETS / RUGS


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SKILLS DEVELOPMENT AND TRAINING

To address the need of the cluster for skilled man

power shortage and to enable them to work on

the proposed facilities. The SPV would undertakeimparting trainings on diverse skills required by

the cluster units

PROJECT PROFILE


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PROJECT PROFILE

Projectimplementation on

a 1 acre plot insector 28 Panipat.Land Allotted byHUDA, with acomfortable 3 yearpayment plan

LAND


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PROPOSED FACILITIES CFC

1. PRODUCT DEVELOPMENT

CAD & CAM CENTER WITH WIDE WIDTH TUFTED

SAMPLING MACHINE.

2. COMMON FACILITY CENTRE AUTOMATED BACKING PLANT.

CHROMOJET PRINTING.

3. SKILL DEVELOPMENT & TRAINING


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CARPETS- PRODUCT DEVELOPMENT

Cluster gets designs from buyers and tracemakers convert thesedesigns form paper to cloth

Mostly trial and error for product development

CAD / CAM is not used


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PRODUCT DEVELOPMENT

CAD & CAM Center

Relevant soft waresand related hard wareon whichdemonstrative tuftingof different pile heightand loops can be done.

This machine shall tuftthe latest designs forcluster members totake approvals fromtheir buyers

Wide Width TuftingSampling Machine.


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AUTOMATED PRINTING LINE

No Screens- no Limitationin pattern repeats

Design change on the fly

Full penetration

Pile weight 250 up to1500 g/m2

For polyamide, wool,

acrylic and (up to certainextent) polyester yarns

Complete print line fromone supplier


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PROJECT COST

&

MEANS OF FINANCE


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TOTAL PROJECT COSTS No Component Cost (Rs Crores)

1 LAND AND DEVELOPMENT COST 2.46

2 BUILDING 1.72

3 PLANT AND MACHINERY 13.86

4 MISC FIXED ASSETS 2.04

5 PRELIM AND PRE-OP EXPENSES 0.02

6 CONTINGENCIES 0.137 MARGIN FOR WORKING CAPITAL 0.27

TOTAL PROJECT COST 20.50

Source Amount (Rs Lacs) %Equity from cluster members 5.23 25.51%

Grant under CDP 13.50 65.85%

Grant from State Govt 1.769 8.63%

Total 20.50 100.0%

IMPLEMENTATION SCHEDULE


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SL ACTIVITY/MONTH JUNE JULY AUG SEPT OCT NOV DEC JAN FEB MAR APR MAY1 POSSESSION IN FAVOUR OF SPV.2 FOLLOW-UP FINAL SANCTION OF

GRANT.

3 TYING UP OF CONTRIBUTION OFSPV /STAKEHOLDERS.

4 COLLATE INFORMATION ONDEFICIENCIES

5 FOLLOW-UP FOR RELEASE OFGRANT.

6 PREPARATION OF DETAILEDDRAWINGS.

7 FORMATION OF PURCHASECOMMITTEE.

8 FINALIZE BOQ OF EQUIPMENTS9 SEEKING QUOTATIONS FROM

MANUFACTURERS & CALLING

TENDERS10 CONSTRUCTION OF FACILITIES.11 OBTAINING STATUTORY

CLEARANCES/ APPROVALS.12 PURCHASING OF MACHINERY

AND EQUIPMENT.13 INSTALLATION AND TRIAL RUN

OF MACHINERY AND

EQUIPMENT.14 PROGRESS REPORTS OF

IMPLEMENTATION SCHEDULE


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Working Assumptions

Year Capacity Utilization

1 50%

2 55%

3 60.50%

EXPENDITURE ASSUMPTIONS

RAW MATERIAL COST % OF SALES REVENUE 72%

MANUFACTURING OVERHEADS % OF SALES REVENUE 5%

ADMINISTRATION OVERHEADS AS A % OF PROJECT COST

0.64%

SALARY & WAGES AS A % OF TOTAL REVENUE 3.72%

LEASE RENTALS RS. 15,000 PER MONTH FOR USING THE LAND AREA


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Revenue Assumptions

Year SALES REVENUE

1 1500 LACS

2 1650 LACS

3 1815 LACS


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Key Financial Indicators

S No. Financial Indicators

1 Debt Service Coverage Ratio 4.53

2 Break Even Point 56.02%


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Bench mark The Henan province V/S

Panipat

Solution proposed

Raw material Yarn is cheaper, locally

available in cluster

Raw material bank

Marketing Group model Common brand name

Machinery Sophisticated, supports

standardization anddifferentiation

Wide width tufting

facilities, backing plant,Chromojet Printing

Printing Printing is done on

group approach

Chromojet Printing

Financial services Loans at 3-5% interest A financial servicesthrough SPV

Skill development Skilled labor Skill Development

centre to be set up by a

technical partner.

PERCIEVED I t


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PERCIEVED Impact

1 Enhanced growth of cluster in terms of technological

advancement.

Facilities at CFC will

encourage members toinvest in Automatic Tufting

Machines. 11 Members

already in discussions to

upgrade.

2 Scaling the value chain while being competitive innational and international market

Repetitive and very basicdesigns would not fetch

good price. Its expected to

increase revenues by at least

10%

3 New product development for higher unit valuerealization

Current system of designingshall be taken over by

4 Skill development initiatives for addressing the

manpower shortage in cluster

The quality of products shall

improve as the skill the skill

levels go up.

5 Design Center Expertise The design center shall workon creating newer varieties


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draft panipat proposal ppt

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