Lahore Garment City Lahore Garment City ProjectProject

Lahore Garment City CompanyLahore Garment City Company(Incorporated on 16(Incorporated on 16thth September 2004)September 2004)

Ministry of Textile IndustryMinistry of Textile Industry

To enable the valueTo enable the value--added textile sector added textile sector to meet global challenges arising out of to meet global challenges arising out of end of ATC, the Government of end of ATC, the Government of Pakistan has established the Ministry of Pakistan has established the Ministry of Textile Industry to, inter alia, Textile Industry to, inter alia, implement the following major implement the following major infrastructure development projectsinfrastructure development projects::

?? Textile CitiesTextile Cities?? Garment CitiesGarment Cities

The ConceptThe Concept

?? SLICING THE VERTICAL PRODUCTION SLICING THE VERTICAL PRODUCTION CHAIN TO CREATE HORIZONTAL SPACES CHAIN TO CREATE HORIZONTAL SPACES FOR SPECIALIZED PRODUCTIONFOR SPECIALIZED PRODUCTION

?? CONVERSION OF FABRIC AND CONVERSION OF FABRIC AND ACCESSORIES INTO GARMENTSACCESSORIES INTO GARMENTS

?? CLUSTER OF STITCHING UNITS WITH CLUSTER OF STITCHING UNITS WITH COMPLETE ANCILLARY SUPPORT AND COMPLETE ANCILLARY SUPPORT AND SERVICESSERVICES

?? A MODERN PHYSICAL AND A MODERN PHYSICAL AND INSTITUTIONAL INFRASTRUCTURE OF INSTITUTIONAL INFRASTRUCTURE OF PUBLICPUBLIC--PRIVATE PARTNERSHIPPRIVATE PARTNERSHIP

Slicing the value chainSlicing the value chain

Garments

Accessories

Fabric

Yarn

High lightsHigh lights?? Concept of Common Facilities for Garment ClustersConcept of Common Facilities for Garment Clusters?? ISO 9000ISO 9000--friendly prefriendly pre--fabricated units fabricated units ?? Modular sheds of 200 Modular sheds of 200 –– 300 machines each to be 300 machines each to be

rented out on an annual basis to foreign and local rented out on an annual basis to foreign and local manufacturersmanufacturers

?? Buying houses and marketing consultants to attract Buying houses and marketing consultants to attract BuyerBuyer--driven FDI for export sourcing from the LGCdriven FDI for export sourcing from the LGC

?? Garment Stitching Institute Garment Stitching Institute ?? InIn--house Testing Laboratoryhouse Testing Laboratory?? Common Garment Washing ShedsCommon Garment Washing Sheds?? Common Water Treatment PlantCommon Water Treatment Plant?? Container yard, buying houses offices, customs office, Container yard, buying houses offices, customs office,

fire brigade, cafeteria, public rest rooms, garbage fire brigade, cafeteria, public rest rooms, garbage collection and janitorial servicescollection and janitorial services

Institutional infrastructureInstitutional infrastructure

??An Engineering and Architectural An Engineering and Architectural consultants firm would implement the consultants firm would implement the Garment City project in LahoreGarment City project in Lahore

-- The LGCC would outsource Stitching The LGCC would outsource Stitching Institute, Testing Lab, Water treatment Institute, Testing Lab, Water treatment plant services and other maintenance plant services and other maintenance servicesservices

??The Board of the LGC Company will The Board of the LGC Company will supervise, monitor and be responsible supervise, monitor and be responsible for the entire project.for the entire project.

LGCCLGCC

??Lahore Garment City Company was Lahore Garment City Company was incorporated on 16incorporated on 16thth September 2004September 2004

??Board of Directors:Board of Directors:-- Mr. Mr. AvaisAvais MazharMazhar, Angora Textiles, Chairman, Angora Textiles, Chairman-- Mr. Mr. AzherAzher IqbalIqbal, Leisure Textiles, Leisure Textiles-- Mr. Mr. ShahzadaShahzada DawoodDawood, , LawrencepurLawrencepur-- Mr. M.I. Mr. M.I. KhurramKhurram, Comfort Knitwear, Comfort Knitwear-- Mr. Mr. MianMian EhsanEhsan, U.S Apparel, U.S Apparel-- Mr. Mr. ShahzadShahzad AzamAzam, , AzamAzam KnitsKnits

?? 5 ex5 ex--officio members, from Commerce, Textiles, officio members, from Commerce, Textiles, Customs, SMEDA and Punjab Govt. Secretary Customs, SMEDA and Punjab Govt. Secretary IndustriesIndustries

Action PlanAction Plan?? 19.4 acres of land at Sunder was approved by the 19.4 acres of land at Sunder was approved by the

Board of Directors, and purchased at a cost of Rs. Board of Directors, and purchased at a cost of Rs. 68.724 million. 68.724 million.

?? Allocation/transfer of Funds from EDF Allocation/transfer of Funds from EDF –– Rs. 103 Rs. 103 million was sanctioned on 26million was sanctioned on 26thth April 05April 05

?? We have hired an office and appointed a CAO, a We have hired an office and appointed a CAO, a Manager and a required staff.Manager and a required staff.

?? E&A consultants presentations took place on 10E&A consultants presentations took place on 10thth

July 05, after which the Board is considering July 05, after which the Board is considering different construction options different construction options

?? Final presentation with costing will be made to EDF Final presentation with costing will be made to EDF Board thereafter for allocation and sanction of fundsBoard thereafter for allocation and sanction of funds

?? Construction of model units and admin block will be Construction of model units and admin block will be completed by December 2006.completed by December 2006.

SpecificationsSpecifications

?? 16 manufacturing units would be constructed 16 manufacturing units would be constructed according to international social compliance standards according to international social compliance standards as follows:as follows:

?? 8 units on one acre each, measuring 30,000 square 8 units on one acre each, measuring 30,000 square feet, with 5 floors totaling maximum covered area of feet, with 5 floors totaling maximum covered area of 150,000 sq. ft. 150,000 sq. ft.

?? 4 units on ½ acre each, measuring 15,000 sq. ft. with 4 units on ½ acre each, measuring 15,000 sq. ft. with 5 floors, totaling covered area of 75,000 sq. ft.5 floors, totaling covered area of 75,000 sq. ft.

?? 4 units on ¼ acre each, measuring 7,500 sq. ft. with 5 4 units on ¼ acre each, measuring 7,500 sq. ft. with 5 floors, totaling covered area of 37,500 sq. ft.floors, totaling covered area of 37,500 sq. ft.

?? Manufacturing units will include space for boilers, Manufacturing units will include space for boilers, effluent discharge, garment washing, parking, etceffluent discharge, garment washing, parking, etc

?? Admin. Block on 2 acres, with offices, Training Centre, Admin. Block on 2 acres, with offices, Training Centre, Testing Lab, Auditorium, Cafeteria, Dispensary, etcTesting Lab, Auditorium, Cafeteria, Dispensary, etc

SITE PLAN SITE PLAN

SITE PLAN SITE PLAN

Costing estimatesCosting estimates

?? Cost of LandCost of Land (Rs.)(Rs.) 68.24 million68.24 million?? Units construction Units construction 300.00 million300.00 million?? Buildings equipBuildings equip 44.49 million44.49 million?? Water TreatmentWater Treatment 4.00 million4.00 million?? Grid sub stationGrid sub station 24.00 million 24.00 million ?? Establishment costs:Establishment costs:

(Office space, utilities, (Office space, utilities, salaries, etc) x 3 yearssalaries, etc) x 3 years 34.27 million34.27 million

TotalTotal 475.00 million475.00 million

Tentative working of incomeTentative working of income

??Each Manufacturing Unit will be given on Each Manufacturing Unit will be given on rent on an annual basis. Manufacturers can rent on an annual basis. Manufacturers can rent more than one floor, and more than one rent more than one floor, and more than one building.building.

??We expect the Lahore Garment City to We expect the Lahore Garment City to generate Rs. 45 million through rent every generate Rs. 45 million through rent every year at a tentative rate of Rs. 15 per sq ft. year at a tentative rate of Rs. 15 per sq ft. per month (250.000 sq. ft minus Admin per month (250.000 sq. ft minus Admin Block)Block)

??This can be used to expand the project as This can be used to expand the project as per clients’ requirementsper clients’ requirements

OTHER PROJECTSOTHER PROJECTS

??KARACHI GARMENT CITY COMPANY IS IN KARACHI GARMENT CITY COMPANY IS IN THE PROCESS OF ACQUIRING 100 ACRES THE PROCESS OF ACQUIRING 100 ACRES IN TEXTILE CITY KARACHI, TO BE USED IN TEXTILE CITY KARACHI, TO BE USED EXCLUSIVELY FOR MANUFACTURING OF EXCLUSIVELY FOR MANUFACTURING OF GARMENTSGARMENTS

??FAISALABAD GARMENT CITY COMPANY IS FAISALABAD GARMENT CITY COMPANY IS BEING SET UP ON 36 ACRES OF LAND IN BEING SET UP ON 36 ACRES OF LAND IN VALUEVALUE--ADDITION CITY IN FAISALABAD ADDITION CITY IN FAISALABAD EXCLUSIVELY FOR GARMENTSEXCLUSIVELY FOR GARMENTS