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Office of Textile Commissioner, Ministry of Textiles

FICCI

Knowledge Partners

Textile Sector Profile Andhra Pradesh

October 2013

Contents

1. Indian Textile Sector - Overview .............................................................................. 3

2. Southern State Profiles .................................................................................................. 5

3. Textile sector profile of Andhra Pradesh ............................................................. 9

4. Regional Profiling ............................................................................................................ 11

5. Major textile parks and export promotion parks ........................................... 14

6. State Policies .................................................................................................................... 19

7. Key Institutions ................................................................................................................ 22

8. Key Industry Players ..................................................................................................... 30

9. Special Support for Investors ................................................................................... 31

10. Andhra Pradesh’s Value Proposition to Investors ......................................... 32

11. Opportunities and Upcoming projects ................................................................. 33

12. References .......................................................................................................................... 34

1. Indian Textile Sector - Overview

The Indian textile industry is one of the largest in the world with a massive raw material and

manufacturing base. India stands as the second largest producer of silk, after China, and the

seventh largest producer of wool in the world. India is also the second largest producer of

cotton, producing 18% of the world's cotton and constitutes 25% of the world's total cotton

cultivation area.

Parameter Contribution to GDP

Contribution to Industrial Production

Contribution to Export Earnings

Contribution to Employment

4% 14% 11% 35 million

The textiles industry complements the growth of

several industries and institutions such as the defence

forces, railways, and government hospitals, which are

the key institutional buyers of technical textiles. The

industry attracted foreign direct investments (FDI)

worth Rs.5,831.02 crore during April 2000 to May

2013.

The market is expected to grow to US$ 31 billion by

2020, at a compound annual growth rate (CAGR) of 10

per cent. The industry includes production of flexible

packaging material for industrial, agricultural and

consumer goods. Among the other segments, protech,

oekotech, sportech and geotech have significant

growth potential. India’s technical textile industry is an

emerging area for investments with good growth

opportunities.

Textiles Industry Value Chain and Key Segments

*Including cotton,jute,silk,wool and manmade fibres

Raw Material Ginning Spinning Weaving/ Knitting

Processing Garment/ Apparel

production

Cotton, jute, silk, wool

Fibre* Yarn Fabric Processed

fabric Final garment/

Apparel

Process

Output

The Indian textile

market is expected

to grow to US$ 31

billion by 2020, at a

compound annual

growth rate (CAGR)

of 10 per cent.

Technical Textile Sector

Major Sub-Industry Sectors for Textiles in India

Cotton

Wool and woolen textiles industry

Handlooms Jute and

jute textiles industry

Man-Made Fibre/

Filament Yarn

industry

Sericulture and Silk Textiles Industry

Handicrafts Technical Textiles

2. Southern State Profiles

Karnataka

Karnataka is the IT hub of India and home to the

fourth largest technology cluster in the world. It

accounted for 41.6 per cent (US$ 28.3 billion) of

India’s electronics and software exports in 2011-12.

The state has well developed social, physical and

industrial infrastructure, good road, rail, water and

air connectivity and substantial port infrastructure.

The state also has a well-developed telecom

infrastructure and excellent healthcare facilities. The

State ranked 5th in terms of attracting private sector

investments in India and has outstanding

investments of USD 813.8 billion as of December

2012.

Karnataka plays a major role in the Indian textile Industry, in terms of its contribution

to industrial production, employment and exports.

Parameter Contribution to national garment production

Contribution to national garment exports

Industry Value (in USD)

20% 8% 1.56 billion

The textile sector is one of the largest employment generating industries in

Karnataka, with approximately 386,000 manufacturing units engaged at the

organized and unorganized level. The state has a workforce of approximately 55,000

weaver families with handlooms and over one

million powerlooms.

Karnataka has an abundance of raw materials. It

is the largest producer and exporter of silk and

silk products in India, accounting for 65% of the

raw silk produced in the country. This gives it a

24% share in the value of silk goods exported

from India. It also produces 6% of cotton and 12%

of wool of the country.

Karnataka has been promoting its textile industry

and, the State attracted nearly USD 400 million in the textile and garment sector in

March 2008-12.

Parameter (in 2012-13)

Gross State Domestic Product (GSDP)

5.6%

GSDP growth rate 15.5%

Per capita GSDP USD 1,608.4

Per capita GSDP growth rate (2004-13)

14.2%

It is the largest

producer of silk in India,

producing 65% of the

raw silk in the country.

Tamil Nadu

Tamil Nadu is the fourth largest state of India.

The state has a well-developed social, physical

and industrial infrastructure and virtual

connectivity. Excellent road and rail network,

three major ports, 23 minor ports and seven

airports provide excellent connectivity.

Tamil Nadu has a range of manufacturing industries like automobiles & components,

castings & forgings, pumps & motors, garments & textile products, leather products,

chemicals & plastics, etc. It ranks first among all states in terms of the number of

factories and industrial workers.

Tamil Nadu ranks third in terms of investments in fixed capital. Outstanding

investments in Tamil Nadu totalled US$ 686.7 billion in 2012-13. The cumulative

foreign direct investment (FDI) inflows from April 2000 to March 2013 amounted to

US$ 11.1 billion, the third highest in India.

The Tamil Nadu Textile Industry is a forerunner in the

industrial development of the State. It provides large

scale employment to the rural people with Spinning,

Handloom, Powerloom and Garment as the four

pillars of the textile sector in the State. Tamil Nadu

has the maximum number of handlooms in the

country and has over 3.66 lakh powerlooms. It has a

spinning capacity of 14.75 million spindles with a

labour force of about 2.17 lakh.

The districts of Coimbatore, Erode and Tirupur, in

Tamil Nadu, often called the Textile valley of India,

contribute to the growth of this industry and together generate export revenues of

over Rs. 25,000 crore. Tirupur alone

accounts for 56% of the country’s knitwear

exports. Coimbatore is known for cotton

production and has over 600 cotton mills,

whereas Erode is known for handloom,

weaving and carpet manufacturing and has

a major contribution in the country’s textile

exports.


Gross State Domestic Product

7.6%

GSDP growth rate 16.1%

GSDP Value USD 133.1 billion

Tamil Nadu has

the maximum

number of

handlooms in the

country.

Tirupur alone accounts

for 56% of the nation’s

knitwear exports.

Kerala

Kerala is a leading agricultural state in the country and the largest producer of

rubber, pepper, coconut and coir. In 2011-12,

the state contributed 87.3 per cent and 79.1

per cent to India’s total rubber and pepper

production, respectively.

The State has a large base of skilled labour,

making it an ideal destination for knowledge-

intensive sectors. It has the highest literacy

rate in the country and has a large pool of semi-skilled and unskilled labourers.

It has a wide range of fiscal and policy incentives for businesses under the Industrial

and Commercial Policy and has well-drafted sector-specific policies.

The Kerala textile industry ranks second among the traditional industries of the state

in terms of providing employment. Spinning is the largest sector in the textiles

industry in Kerala. There are 1,75,000 weavers in Kerala, including the co-operative

and private sector.

The handloom industry in the state is mainly concentrated in the districts of

Thiruvananthapuram and Kannur and in some parts of Kozhikode, Palakkad,

Thrissur, Ernakulam, Kollam and Kasaragod, and employs about 100,000 people.

Kerala has 58,400 handlooms and 5,500 powerlooms. Around 94 per cent of the

total numbers of looms are under the cooperative sector, the rest being under

industrial entrepreneurs. The overall production of handloom cloth by handloom

industry of Kerala was 25.55 million metres in 2010-11, valued at US$ 40.0 million.

Most of the exportable products of Kerala are from Kannur, and consist mainly of

home furnishing products. Cotton yarn is the most popular textile product, followed

by knitted garments and fabrics. The cotton textiles industries are concentrated in

district of Thrissur and Palghat followed by Ernakulam and Kannur. These 4 districts

together, account for nearly 3/4th of the mills in Kerala.

In order to promote textiles in the Kerala, the four integrated powerloom co-operative

societies in the state at Calicut, Wayanad, Neyyattinkara and Kottayam have been

accelerated by providing budgetary support.


Gross State Domestic Product

4%

GSDP growth rate 15%

Per capita GSDP USD 1763.6

Andhra Pradesh

Andhra Pradesh is India's fourth largest state by area and fifth largest by population.

According to the Planning Commission of

India, in the financial year 2011-12 the state

was second in nominal GDP and in GDP per

capital it ranks fourth. Major industries in

Andhra Pradesh include agriculture, mining,

information technology and textiles. The State

has emerged as a key state for the

knowledge-based industry including IT,

pharmaceuticals and biotechnology. Over 70

of the 500 top global corporations are present

in it.

The state has well-developed social, physical

and industrial infrastructure and virtual

connectivity, has good power, airport, IT and

port infrastructure. Moreover, the state offers

a wide range of fiscal and policy incentives for businesses under the Industrial

Investment Promotion Policy; 2010-2015.The state has well drafted sector-specific

policies, besides having a large base of skilled, semi-skilled and unskilled labour.

The Industrial sector contributed 25.1% to the State GDP, which was higher than

that of agriculture.

Andhra Pradesh is among the top three states in attracting investments from

domestic and foreign investors. With a total of 109 special economic zones (SEZs),

the State witnessed foreign direct investment (FDI) equity inflows worth US$ 7.6

billion during April 2000 to December 2012, according to Department of Industrial

Policy & Promotion (DIPP). It is a mineral-rich state, ranking second in India in terms

of mineral wealth. The vast natural gas reserves found in the Krishna-Godavari basin

have also opened up immense possibilities for the state economy.


Contribution to India’s GDP

8.09%

Gross State Domestic Product (GSDP)

8.6%

GSDP growth rate 16%

GSDP Value USD 141 billion

Per capita GDSP value

USD 1,530.8

Growth rate of exports (2006-11)

22.3%

3. Textile sector profile of Andhra Pradesh

Textile Sector

The Andhra Pradesh Government has identified the textile sector as

one of its long term growth engines. It is one of the leading cotton producing

states in the country with a production of 5.45 million bales (bales of 170 Kg

each) in 2011-12. Medium grade and superior long staple varieties of cotton

are predominantly grown in the state. It also has the third highest production

of raw silk and, fourth highest production of wool, along with the fourth highest

number of textile mills in the country.

It has emerged as one of the leading Textile Processing Centres,

having over a 100 units, with a total processing capacity of 13 million metres

of cloth per annum. The State has a well-

developed spinning and processing sector,

with 34 lakh bales of cotton being consumed

by the spinning mills. There are over 150

spinning mills including a number of 100 per

cent export-oriented units with state-of-the-art

machinery, producing cotton, synthetic and

blended yarns. The number of power looms in

the state aggregates to 50,000 and around

700,000 families depend on the textile and

clothing sector. There are about 359,212

handloom weavers in the State. Between

April 2006 and February 2012, 55 handloom

clusters were sanctioned under Integrated Handlooms Development Scheme

(IHDS).

To utilise the potential of this sector,

the State Government has already

established several Apparel Export Parks

(AEPs) and textile parks. Apparels, fabrics

and furnishings have been identified as

potential products by the state. Total

handloom & textiles exports from the state

stood at around US$ 400 million in 2010-

11.

The textile and

clothing sector

supports 700,000

families in Andhra

Pradesh.

Total handloom &

textiles exports

from the state

stood at around

US$ 400 million in

2010-11

Technical Textile Sector

4. Regional Profiling

Factories working under Factories Act, and persons employed, as on 31-12-2010

S.No. District Manufacture of Textiles – Factories

Manufacture of Textiles – Employees

1 Ranga Reddy 180 6,531

2 West Godavari 56 2,743

3 East Godavari 54 4,362

4 Medak 40 4,684

5 Krishna 25 351

6 Guntur 21 1,091

7 Visakhapatnam 18 353

8 Hyderabad 18 334

9 Khammam 14 4,614

10 Chittoor 11 362

11 Nalgonda 11 742

12 Mahbubnagar 10 264

13 Vizianagaram 7 148

14 Prakasam 7 66

15 Kurnoll 5 201

16 Nizamabad 5 75

17 Warangal 5 1,334

18 Srikakulam 4 499

19 Karimnagar 4 90

20 Y.S.R. 2 130

21 Adilabad 2 2,028

22 S.P.S. Nellore 1 15

23 Anantapur - -

ANDHRA PRADESH 500 30,917 Source: Directorate of Factories, Andhra Pradesh

The Ranga Reddy District surrounds the State capital of Hyderabad. It

includes the city’s suburbs and serves as a hinterland to it. The district is

industrially well-developed as it lies close to the capital and enjoys the

advantages of good infrastructure, communication network, transport, market

and human resources. An Apparel Park has been established in the district’s

Gunlapochampally village which is 25 km from the state capital. Also, as per

the Commissionerate of Industries, 275 acres of land has been identified for

an Industrial park for Textile based industries in Maheshawaram. The

proposed International Airport as Shamshabad enhances the prospects for

establishment of Export Oriented Units in the district. The district offers scope

for establishment of resource based; demand based and labour intensive

industries.

Textile Industry Clusters in Andhra Pradesh

The Government of India’s cluster development initiatives, involving

technical assistance, subsidies for technology upgradation and marketing

support, strengthened the competitiveness of the SMEs, which also

consolidated their position in the global value chain. A case in point is the

initiative undertaken by the Textile Committee under the Ministry of Textiles,

which undertook a cluster-based programme for capacity building in textile

and clothing SMEs across the country.

Among the successes of the Textile Committee’s cluster development

initiatives was the acquiring of intellectual property rights protection for the

Pochampally Ikat tie-and-dye sari, from the Nalgonda District in Andhra

Pradesh (in the Hyderabad cluster). It was the first traditional Indian craft to

receive this status of XXVIII geographical branding in 2004, and expected to

benefit several weavers in the state.

Major Textile Clusters in Andhra Pradesh

Based on Budget Announcement made in 2008-09, 2009-10 and 2010-

11, 12 centres are being developed as mega cluster on a Public Private

Partnership (PPP) model in India. The list included a Handicrafts Mega

Cluster in Narasapur, Andhra Pradesh.

Andhra Pradesh also has several traditional handloom clusters, as per the

Ministry of Textiles.

S.No. Name District Sector

1. Guntur Guntur Powerloom, Cotton Ginning

2. Nagari Chittoor Powerloom

3. Narsapur West Godavari Crochet Lace

4. Pochampally Nalgonda Tie and dyeing

5. Anantapur Anantapur Jeans/RMG

6. Sirsilla Karimnagar Powerloom

7. Warangal Warangal Powerloom

S.No. State

Clusters having 5000 handlooms per cluster

Clusters having atleast 25,000 handlooms per Cluster

Clusters having 300-500 handlooms per cluster

Approximate number of weavers dependent on these clusters

1 Andhra Pradesh

2 1 53 37957

Some Important Handloom Clusters in Andhra Pradesh:

S.No District Important Clusters

1 Srikakulam Ampolu, Ponduru, Rajam, Narasannapeta, Peddasedhi.

2 Vizianagaram Kotragandredu, Narayanapuram.

3 Visakhapatnam Payakaraopet.

4 East Godavari Mori, Veeravaram, Gollaprolu, Addampalli, Peddapuram, Adivarapupet, Hasanabada, Bandarulanka, Uppada.

5 West Godavari Achanta, Velpuru, Ramachandrapuram, Dagguluru.

6 Krishna Pedana, Kappaladoddi, Polavaram, Machilipatnam, Challapalli

7 Guntur Mangalagiri, Isukapalli, Bhattiprolu, ilavaram, Repalle, Cherukupalli, Sattenapalli.

8 Prakasam Chirala, Vetapalem

9 Nellore Venkatagiri, Sangham, Narayanareddypet.

10 Chittoor Madanapalli, Varadiahpalem, Satyaveedu, Kalahasthi.

11 Kadapa Proddutur, Madhavaram, Rangapuram, Dommaranandyala, Jammalamadugu, Veparala, Pullampeta, Moragudi.

12 Ananthapur Dharmavaram, Muddireddypalli, Peddapappur, Tadipatri, Yadiki, Uravakonda.

13 Kurnool Yemmiganur, Adoni, Kodumur.

14 Mahabubnagar Gadwal, Narayanapet, Amarachinta, Amangal, Veltoor, Kosigi, Chinnaporla, Rajapoor, Amistapur, Ghattu, Alampur, Rajoli, Ieeza.

15 Medak Siddipet, Dubbaka, Jogipet, Narayanakhed.

16 Karimnagar Kothapalli, Thangallapalli, Jammikunta, Sultanabad, Huzurabad, Kamalapur.

17 Warangal Jangaon, Parkal, Warangal(Durries), Devaruppula.

18 Khammam Khammam

19 Nalgonda

Koyyalagudem, Siripuram &Yellanki, Puttapaka, Mothkur & Gundala, Pochampalli, Veligonda, , Bhongir,Nakrekal, Chandoor, Narayanpur, Ghattuppal, Choutuppal.

Source: Directorate of Handlooms and Textiles, A.P.

5. Major textile parks and export promotion

parks

The scheme of "Apparel Parks for Exports” was formulated with a view to involve

State Governments in promoting investments in the apparel sector. The Scheme

was intended to impart focused thrust to setting up of apparel manufacturing units of

international standards at potential growth centres and to give fillip to exports in this

sector. The Scheme for Integrated Textile Parks (SITP) is a demand driven scheme,

where parks are sanctioned after receiving proposals. There are 61 existing textile

parks in India, with several textile parks and apparel export parks in Andhra Pradesh.

S. No

Textiles and Handloom Parks in Andhra Pradesh

Address Contact Persons About

1. Textile Park, Sircilla, Karimnagar (TCID)

Textile Park, Baddenapalli, Sircilla, Karimnagar, A.P.

The General Manager, District Industries Centre, Karimnagar Tel: +91 08722 240378 08722 240916 Cell: 9848778529 E-mail: [email protected] Mr. N.Venkateswara Rao (Additional Director (Handlooms & Textiles)) Old RIMS Compound, Seven Road Circle, Kadapa. Ph: 8008705745

The park has been developed on 60 acres of land. It provides facilities such as training centres, business resource centres, textile process units, testing labs, CAD centres, common effluent treatment plants. It has a 33/11 KV substation with uninterrupted power supply, assured water supply and single window clearance for all approvals.

2. Textile Park, Pashamylaram, Medak (TCID)

Textile Park, Pashamylaram, Patancheru, Medak, A.P.

The General Manager, District Industries Centre, Medak Tel : +91 08455 274899 Cell : 9989997669 e-Mail: [email protected] Mr. G.Ramesh (AD(H&T)) H.No.5-2-62/1, Behind Andhra Bank, Saikrupanagar, Sangareddy Ph: 8008705756

The Centre approved the project under the Textile Centre Infrastructure Development Scheme (TCIDS). Single window clearance facility has been extended for all industrial approvals.

3. Textile Park, Malkapur, Nalgonda

Textile Park, Malkapur, Choutuppal, Nalgonda, A.P.

The General Manager, District Industries Centre, Nalgonda Tel : +91 08682 2225188 Cell :9989997672 e-Mail: [email protected] Mr. K.Ramgopala Rao (AD(H&T)) Godam, Rudramma Devi Buildings,

The State Government has developed Textile park at Malkapur (village) at Choutuppal (mandal) on the National highway-9 in 50 acres of land with 114 industrial plots. The park is situated at 38 kilometers away from Hyderabad.

S. No



Ramagiri, Nalgonda Ph: 8008705761

There is a scope for setting up of Textile based units. In addition to the above, any demand based industry can be set up in Nalgonda District, as it is proximity to Hyderabad, where there is a huge market potential is available.

4. Textile Park, Rayadurg, Anantapur

Textile Park, Rayadurg, Anantapur, A.P.

The General Manager, District Industries Centre, Anantapur Tel : +91 08554 240005 Cell : 9989997679 e-Mail: [email protected] Mr. Jagannath Shetty (AD(H&T)) 2nd Floor, Netha Bazaar, Opp. Tower Clock, Anantapur Ph: 8008705734

Export oriented Readymade Garment Units at Rayadurg due to Availability of skilled workers

5. Textile Park, Pamidi, Anantapur

Textile Park, Pamidi, Anatapur, A.P.

The General Manager, District Industries Centre, Anantapur Tel : +91 08554 240005 Cell : 9989997679 e-Mail: [email protected] Mr. Jagannath Shetty (AD(H&T)) 2nd Floor, Netha Bazaar, Opp. Tower Clock, Anantapur Ph: 8008705734

Developed as a natural garment cluster which will provide basic infrastructure facilities and skilled manpower.

6. Textile Park, Nagari, Chittoor

Textile Park, Nagari, Chittoor, A.P.

The General Manager, District Industries Centre, Chittoor Tel : +91 08572 228224 Cell : 9989997678 e-Mail: [email protected] Mr. P.Jayaramaiah (AD(H&T)) D.No.19-8-9, 3rd floor, Hathiramji Colony, Annamayya Circle, Tirupati Ph: 8008705729

It was decided to set up a textile park in Nagari town, as it accounts for 80% of the cotton produced in the state, and supports thousands of weavers.

7. Mini Textile Park, Warangal

Mini Textile Park, Madikonda, Warangal, A.P.

The General Manager, District Industries Centre, Warangal Tel : +91 08712 2427134 Cell : 9989997671 e-Mail: [email protected]

The Govt. of Andhra Pradesh desired for setting up of Mini Textile Park in the (30) acres of land pertaining to Azam Jahi Mills at Warangal with a view to provide

S. No



Mr. V.Ramana Murthy (AD(H&T)) H.No.2-5-668, Near Choti Masjid, Subedari, Warangal - 506001 Ph: 8008705741

employment to above (4000) people particularly from weavers families and also decided to provide houses to the weavers and workers to be employed in the Park

8. Textile Park, Mylavaram, Cuddapah

Textile Park, Mylavaram, Cuddapah, A.P.

General Manager District Industries Centre Income Tax Road, Smith Road. Cuddapah Tel : +91 08562-252269 / 244159 Mobile: 9989997681 Email: [email protected] Mr. P.Satyanarayana Rao (AD(H&T)) Old RIMS Compound, Seven Road Circle, Kadapa Ph: 8008705729

The Government of Andhra Pradesh have proposed to establish Textile Park at Mylavaram and earmarked land to an extent of 62.18 acres of Government land in survey No.49/1 located in between Mylavaram (V) to Narajampalli (v). It is aimed at potential industries pertaining to spinning to weaving and cloth processing units.

9. Textile Park, Venkatagiri, Nellore

Textile Park, Menakur, Venkatagiri, Nellore, A.P.

The General Manager, District Industries Centre, Nellore Tel : +91 0861 2328658 Cell : 9989997682 e-Mail: [email protected] Mr. B.Reddappa (AD(H&T)) Railway Federation Road,Opp. Veterinary Hospital, Nellore Ph: 8008705723

The park is primarily based on cotton yarns and processing of cotton.

10. Hyderabad Hi-Tech Textile Park,Kothur, Mahbubnagar(SITP)

Hyderabad Hi-Tech Textile Park,Cheguru, Kothur, Mahbubnagar, A.P.

The General Manager, District Industries Centre, Mahabubnagar Tel : +91 08542 242088 Cell : 9989997673 e-Mail: [email protected] Mr. K.C.Ramam (AD(H&T)) Netha Bazaar, New Town, Mahabubnagar. Ph: 8008705753

This project was approved by Ministry of Textiles, and provided grant of Rs. 40 crore for infrastructure development in 120 acres near to Hyderabad international airport

11. MAS Fabric Park Pvt. Ltd., Chintavaram, Nellore

MAS Fabric Park Pvt. Ltd., Chintavaram, Chillakur, Nellore, A.P.

The General Manager, District Industries Centre, Nellore Tel : +91 0861 2328658 Cell : 9989997682 e-Mail: [email protected]

The 750-acre park, which consists of 20 textile units, was set up by Sri Lankan-based MAS Holdings, initially investing $200 million. It was estimated to be able to provide jobs to

S. No



Mr. B.Reddappa (AD(H&T)) RailwayFederation Road,Opp. Veterinary Hospital, Nellore Ph: 8008705723

around 30,000 people while around 45,000 people would be employed indirectly

12. Pochampally Handloom Park, Nalgonda (SITP)

Pochampally Handloom Park, Kanumukkala village, Nalgonda, A.P.

The General Manager, District Industries Centre, Nalgonda Tel : +91 08682 2225188 Cell :9989997672 e-Mail: [email protected] Mr. K.Ramgopala Rao (AD(H&T)) Godam, Rudramma Devi Buildings, Ramagiri, Nalgonda Ph: 8008705761

The government identified 50 acres on NH-9 near the Pochampally Silk City and approved the project at an outlay of US$ 0.81 million.

14. Handloom Park, Chirala , Prakasam

Handloom Park, Chirala , Prakasam, A.P.

The General Manager, District Industries Centre, Prakasam Tel : +91 08592 233042 Cell : 9989997683 e-Mail: [email protected] Mr. S.Raghunanda (AD(H&T)) H.No.58-9-4, 1st Kamashastri Road, Santhapet, Ongole Ph: 8008705722

It was decided to set up a park here as, there are 90,000 weavers in the district .They are concentrated in and around Chirala area. Readymade garments, Knitted wear, Textile processing, low count yarn dyeing and processing, hosiery units have a good scope.

15. Handloom Park, Gadwal, Mahabubnagar

Handloom Park, Gadwal, Mahabubnagar, A.P.

The General Manager, District Industries Centre, Mahabubnagar Tel : +91 08542 242088 Cell : 9989997673 e-Mail: [email protected] Mr. K.C.Ramam (AD(H&T)) Netha Bazaar, New Town, Beside K-6000, Mahabubnagar Ph: 8008705753

This project was set up, aiming to promote Mahabubnagar district as an emerging textile hub.

In the 2013 budget speech, the Finance Minister announced an additional amount of

upto Rs. 10 crores per park for setting up apparel manufacturing units for the

projects under the SITP.

S. No

Apparel Export Parks

in Andhra Pradesh

Address Contact Person About

1. AEP, AEP, Medchal, Sri. B.Narsaih, DD/ Park The park is spread over 172

S. No

Apparel Export Parks

in Andhra Pradesh

Address Contact Person About

Gundlapochampally, Ranga Reddy

Gundlapochampally, A.P.

Administrator Ph: 9849609719 (M) : 040 - 23792122 (O)

acres. Park occupants such as Chermas, Pokarna and several other units are exporting to the US, the UK and other countries and their clientele includes stores such as Wal-Mart, JC Penny, etc.

2. AEP, Vizag, Visakhapatnam

AEP, Gajuwaka, Visakhapatnam, A.P.

Dr. K.Srikanth Prabhakar, DD (H&T) / Park Administrator, Ph: 9849997836 (M) Office 0891-2751451

The project has been developed on 146 acres of land and has accelerated the growth of the industry.

3. AEP, Proddatur, Kadapa

AEP, Proddatur, Kadapa, A.P.

Mr. P.Satyanarayana Rao (AD (H&T)) Old RIMS Compound, Seven Road Circle, Kadapa Ph: 8008705729

The project identified private land to the extent of (150) acres in Rajupalem Road.

4. AEP, Sircilla, Karimnagar (TCID)

AEP,Baddenapalli, Sircilla, Karimnagar, A.P.

Mr. N.Venkateswara Rao (AD(H&T)) H.No.7-2-773/2, 1st Floor, Ponnam Complex, Mankammathota, Karimnagar Ph: 8008705745

The Apparel Export Park, covering 150 acres of land, and involving intensive capital investment was proposed next to the existing textile park.

5. Hindupur Vyapar Apparel Park Ananthapur (SITP)

Hindupur Vyapar Apparel Park, Hindupur, Ananthapur, A.P.

Mr. Jagannath Shetty (AD(H&T)) 2nd Floor, Netha Bazaar, Opp. Tower Clock, Anantapur. Ph: 8008705734

It is an innovative project for an integrated Textile cum SEZ Apparel park. HVAPL is designed to be a self-reliant textile city, covering 73.1 acres of land. HVAPL envisages setting up of 171 textile & ancillary manufacturing units with supporting physical and community infrastructure

6. Brandix India Apparel (Garment) City, APSEZ, Achyuthapuram, Visakhapatnam (SITP)

Brandix India Apparel City, Achyuthapuram, Visakhapatnam, A.P.

DD(H&T)/Park Administrator, Apparel Export Park, Visakhapatnam, IDA Block-E, Phase-II, BHPV Post Office, Visakhapatnam

The city was set up in an area of 1,000 acres at a project cost of US$ 609.75 million by Brandix Lanka Limited, creating employment for 60,000 people. The commercial operations started in January 2007.

6. State Policies

Specific Incentives under the state industrial policy include:

1. Infrastructure-

a. Land-

i. Reservation of 30-40% of the land for MSMEs in the upcoming

industrial estates developed by Andhra Pradesh Industrial

Infrastructure Corporation (APIIC). APIIC shall allocate 16.2% of

number of plots to Scheduled Caste entrepreneurs and 6% of

number of plots to Scheduled Tribe entrepreneurs in new

Industrial Estate and preferential allotment to SC/ST

entrepreneurs in existing industrial estates. Andhra Pradesh

Industrial Infrastructure Corporation (APIIC) shall allocate 10%

of number of plots to Women Entrepreneurs in the new industrial

estates

ii. 100% reimbursement of Stamp duty and transfer duty paid by

the industry on purchase of land meant for industrial use

iii. 100% reimbursement of Stamp duty for Lease of Land/Shed/

Buildings and also mortgages and hypothecations

iv. 25% rebate in land cost limited to US$ 0.02 million in Industrial

Estates or Industrial Parks for MSMEs and large industries, and

331/3% rebate for SC/ST entrepreneurs

v. 25% Land conversion charges for industrial use limited to US$

18,181 for MSMEs and SC/ST entrepreneurs

b. Power-

i. Fixed power cost reimbursement at US$ 0.014 per unit (upper

ceiling) on the proposed revised rates (2010-11) for 5 years from

the date of commencement of commercial production. In case of

a decrease in the power tariff, the reimbursement will be

reduced proportionately for MSMEs and large industries

ii. For medium and large enterprises, and for MSEs established by

SC/STs, infrastructure like roads, power and water will be

provided at door step of the industry for standalone units by

contributing 50% (MLE) – 75% (MSEs by SC/ST) of the cost of

infrastructure from IIDF with a ceiling of US$ 0.18 million,

subject to:

i. The location being beyond 10 kms from the existing

Industrial Estates/IDA's having vacant land/shed for

allotment

ii. Cost of the infrastructure should be limited to 15% of

the eligible fixed capital investment made in the

industry

c. Water-

i. Reservation of 10% of water for industrial use from the existing

projects as well as future projects will continue

d. VAT, CST, SGST exemptions

i. Reimbursement of 100% VAT/CST or State Goods and Services

Tax (SGST) for a period of 5 years from the date of

commencement of commercial production for micro enterprises

ii. Reimbursement of 50% VAT/CST or State Goods and Services


commencement of commercial production for small enterprises

iii. Reimbursement of 25% VAT/CST or State Goods and Services


commencement of commercial production for medium

enterprises and large industries

e. Capital investment subsidies

i. 15% investment subsidy on fixed capital investment subject to a

maximum of US$ 0.04 million for MSEs; 35% fixed capital

investment subsidy for MSEs owned by SC/STs, and 40%

subsidy for MSEs owned by SC/ST women entrepreneurs with a

maximum limit of US$ 0.09 million per unit; 45% subsidy for

units set up in Scheduled Areas by ST entrepreneurs with a

maximum limit of US$ 0.09 million per unit

ii. Interest subsidy of 3% - 9% per annum on the term loan taken

on the fixed capital investment by New Micro and Small

Enterprises for a period of 5 years from the date of

commencement of commercial production under Pavala Vaddi

Scheme

iii. Seed capital assistance to First Generation Entrepreneurs to

set-up Micro Enterprises at10% of the Machinery cost, which will

be deducted from the eligible investment subsidy for MSEs and

SC/ST entrepreneurs

2. Research and development-

a. Patent and quality certification-

i. 50% subsidy on the expenses incurred for quality certification/

patent registration limited to US$ 3,636 for MSME'

3. Human resource development-

a. Skill development-

i. 50% Reimbursement of cost involved in skill upgrade and

training the local manpower limited to US$ 36per person

4. Other-

a. Clean energy initiatives-

i. 25% subsidy on specific cleaner production measures limited to

US$ 9,090

Source: Industrial Investment Promotion Policy 2010-15, Industries and Commerce Department,

Government of Andhra Pradesh

Specific incentives under state textile policy include:

1. Fiscal-

a. Stamp duty exemptions-

i. 100% reimbursement of stamp duty, transfer duty and

Registration fee paid by Textile/Apparel units

b. Corporate tax exemptions

i. Applicable to all units located in SEZ Parks as per SEZ act

besides assisting in Exports and Imports

2. Other-

a. Zoning regulations

i. Textile/Apparel units will be exempted from the zoning

regulations and from the payment of conversion fee

b. Urban land ceiling exemptions

i. Private land owners will be allowed exemption under ULC for

development of Textile/Apparel Parks with a minimum extent of

25 acres in the periphery of city limits and beyond besides a

minimum of 5 acres within city limits

c. Health care

i. 10 – 15 acres of land will be earmarked amongst a cluster of

units to promote higher healthcare

ii. The Government of Andhra Pradesh will notify all Textile and

Apparel Parks as Public Utility Services. It is also decided that

Essential Service Maintenance Act (ESMA) will be made

applicable to the Textile and Apparel Parks to provide facility of

engaging workers beyond the normal working hours for

achieving higher productivity and to catch export markets

Source: Textile and Apparel Promotion Policy 2005-10, Handlooms & Textiles Department,

Government of Andhra Pradesh

7. Key Institutions

1. Department of Handlooms and Textiles

The Department of Handlooms and Textiles is concerned with Handlooms,

Powerlooms in the Co-operative and decentralized sector and setting up of

Apparel and Textile Parks in the Garment sector. The Commissioner and

Director of Handlooms and Textiles and Development Commissioner for

Apparel Export Parks A.P., Hyderabad., is charged with the responsibility of

supervision over the working of Weavers Cooperative Societies (Cotton, Silk

& Wool), Apex Societies, Powerlooms Societies and Garment Societies,

implementation of schemes relating to Handlooms and Powerlooms in the

Cooperative and Decentralized sector and setting up of Apparel and Textile

Parks in the Garment sector.

Key Contacts

Sri Gaddam Prasad Kumar, Minister for Handlooms & Textiles,

Spinning Mills, Small Scale Industries and K&VI Board,

Room No. 119, D-Block, AP Secretariat, Hyderabad

Ph:+91-40-23453217/2631

Sri. D. Sreenivasulu, IAS, Principal Secretary to Govt.,

(Textiles) Industries & Commerce Department,

Room No. 347, D-Block, AP Secretariat, Hyderabad

Ph: +91-40-23450508

Fax: +91-40-23450456

Sri T. Chiranjeevulu, I.A.S., Director of Handlooms & Textiles & AEPs,

C-Block, 4th floor, BRKB Bhavan, Tankbund Road, Hyderabad

Ph: +91-40-23225805

Fax: +91-40-23224542

1. APInvest

Government of Andhra Pradesh established APInvest to be the nodal agency

for promoting Andhra Pradesh as the best Business State in the Country.

APInvest is the single point of contact for facilitating investments in to the

State and functions along the lines of a Corporate MNC under the

Chairmanship of the Chief Minister.

Key Contacts

Chief Executive Officer,

APInvest, Govt of Andhra Pradesh,

D – 433A, AP Secretariat, Hyderabad

Ph: +91-40-23450015

Fax: +91-40-23450016

Email: [email protected]

B.Rajender Kumar, Sector Head,

APInvest, Govt of Andhra Pradesh,

A-213, AP Sectretariat, Hyderabad

Ph: +91-40-23450888

Fax: +91-9000000620

Email: [email protected], [email protected]

2. Federation of Andhra Pradesh Chambers of Commerce & Industry,

Hyderabad

The Federation of Andhra Pradesh Chambers of Commerce and Industry was

started in 1917. It gradually evolved into an organization representing large,

medium and small scale industries. It also represented wholesale, retail and

small trade organizations. It consists of public, private, joint and corporate

sectors. With about 150 other Chambers and Associations at State, District,

Mandal levels affiliated to it. FAPCCI has 3513 members on its rolls. Its

indirect membership through its affiliates covers a broad spectrum of

industries and trade organizations. Its main function is to promote and protect

the interests of trade, commerce and industry.

The Federation has also been actively engaged in building up rapport with the

Government at the Local, State and Central levels.

Key Contacts

Smt P. Vydehi, Secretary (I/C), Director & Head-Events,

The Federation of Andhra Pradesh Chambers of Commerce and Industry

Federation House, 11-6-841, Red Hills, FAPCCI Marg, Hyderabad

Ph:+91-9009700256


Sri Srinivas Ayyadevara, President, FAPCCI,

1-2-386/A/1, Gagan Mahal Hyderabad-500 029.

Off: 27632354, 27642952

E-mail: [email protected], [email protected]

3. National Institute of Fashion Technology, Hyderabad

National Institute of Fashion Technology was set up in 1986 under the aegis

of the Ministry of Textiles, Government of India. It has emerged as the premier

Institute of Design, Management and Technology, developing professionals

for taking up leadership positions in fashion business in the emerging global

scenario. National Institute of Fashion Technology Hyderabad laid its plinth

stone in the year 1995. It aims to emerge as a centre of excellence and

innovation proactively catalyzing growth of fashion business through

leadership in profession education with concern for social and human values.

It’s mission is to establish NIFT as a centre of excellence in fashion business

education, a nodal agency for benchmarking fashion education in India and

apex body for training of trainees in fashion business education.

Key Contacts

Cluster Initiative Coordinator

Mr. G.M. Reddy - Phone: 040-23112696

Regional Industry Coordinator

Mr. Shivkumar Belli - Phone: 040-23111937

National Institute of Fashion Technology,(Ministry of Textiles, Government of

India), Opp-Hitech City, Madhapur, Hyderabad-500081,

Ph: 040 23114537, 23110841-44

Fax: 040 23114536

4. COE: Meditex (South India Textile Research Association - SITRA)

With support from the Ministry of Textiles, SITRA has established Centre of

Excellence in Medical Textiles in the field of Technical Textiles. The COE is a

one-stop shop for addressing the issues and concerns of medical textile

fraternity. The COE has facilities for Research and Development, testing,

incubation, training and a well-endowed information resource centre for the

usage of the Industry stakeholders.

Key Contact

Dr. Prakash Vasudevan, Director

P.B. No. 3205, Coimbatore Aerodrome Post,

Coimbatore – 641014, Tamil Nadu, India

Ph: 91-422-2574367-9, 6544188, 6541488

Fax: 91-422-2571896


Website: www.sitrameditech.org.in

5. COE: Indutex (PSG)

PSG College of Technology has set up the COE in Industrial Textiles; this

segment of Technical Textiles has a wide range of products such as

Conveyor Belts, Automobile Textile, Filters etc. The COE is a one-stop shop

for the industry for everything related to Indutex field of Technical Textiles.

Key Contact

Dr.G.Thilagavathi, Prof & Head, Department of Textile Technology &

Department of Fashion Technology

PSG College of Technology, Peelamedu, Coimbatore – 641004.

Ph: +91- 422-2572177, 2572477, 2580455, 2578455, 4344777 Ext: 4169


Website: www.psgtech.edu/coeindutech

6. S.P.K.M. Indian Institute of Handloom Technology, Venkatagiri

Indian Institute of Handloom Technology are a group of autonomous public

handloom institutes established by the Government of India with the prime

objective providing technical personnel to the Handloom Industry. They

provide an advance diploma course in handloom and textile technology. The

'Diploma in Handloom and Textile Technology', a three year diploma course

duly approved by AICTE, is offered.

Contact

S.P.K.M. Indian Institute of Handloom Technology, Venkatagiri, Nellore

District, A.P.

Ph: 08625257260

7. Apparel Training and Design Centre, Hyderabad

Apparel Training and Design Centre (ATDC) was established with the mission

to upgrade the technical skills of the human resources employed in the

Garment Industry. Apparel Export Promotion Council (AEPC) conceptualized

the Apparel Training & Design centers (ATDC) to meet the industry’s growing

requirement for a steady supply to trained workforce and professionals with

domain expertise especially in apparel manufacturing technology.

Contact

Apparel Training and Design Centre (ATDC),Hyderabad,

Sponsored by Apparel Export Promotion Council. Govt, of India, Ministry of

Textiles

Survey No- 64, Near Cyber Towers, Cyberabad, Hyderabad, Andhra Pradesh

Ph: 040 - 23112155 /56.

Fax: 040 - 23112078

8. A.P. State Handloom Weavers’ Cooperative Society Ltd. (APSHWCS),

popularly called APCO.

APCO is the APEX Handloom Weavers Cooperative Society of Andhra

Pradesh. The Society was registered in the year 1976 with registered

No.T.P.W.44 under the Andhra Pradesh Cooperative Societies Act 7 of 1964

with the following main objectives, inter alia, among others

To purchase raw materials and appliances, tools and machinery including

spares as may be required for the industry and to sell the same to the

member-societies .

To purchase or receive for sale, the finished products of the member-societies

by opening Sales Units, Godowns, Exhibitions etc., within the State.

To establish and run sales units within and outside the area of operation for

Exhibition and sale of products of member-societies.

To hold, own, establish and hire processing units to under take and provide

processing including dyeing, mercerising, printing and furnishing etc.. for all

types of yarn and cloth, to the member societies and to other institutions and

individuals.

To advise and render assistance to member-societies in preparation of

production programmes, design development, product diversification and such

qualitative improvement as may be necessary in the products produced by the

member-societies to be in tune with the consumer tastes and market demand.

To arrange for the training of weavers sponsored by the member-societies in

improved methods of weaving and latest techniques and also for the training

of its own employees in sales techniques, accountancy and business

administration etc.

Key Contacts

Murugudu Hanumantha Rao, Chairman

Ph: +91-040-23225160

G. Gowri Sankar,I.T.S., V.C. & Managing Director

Ph: +91-40-23220981, 2361861

The Andhra Pradesh State Handloom Weavers' Cooperative Society Limited,

Weavers' Bhavan, 3-5-770, Narayanaguda, Hyderabad - 500 029 (INDIA)

Ph:+91-40-23220571

Fax: +91-040-23220274

9. Garment Manufacturers & Wholesalers Association, Secunderabad

GMWA is an apex body representing the Garments Industry in the state of

Andhra Pradesh catering to the needs of one and all of the industry in a

collective manner.

It provides a unique platform for all garment manufacturers and Wholesalers

to interact with each other and with government bodies to establish an

efficient business in the state.

Role of the Association is:

To promote and protect the interests of Garments Industry and trade in

Andhra Pradesh.

To promote and maintain high standard of professional conduct and to

prevent abuses or malpractice in the trade.

To promote and develop co-operation among members and associations

connected with readymade Trade Industry in Andhra Pradesh.

To create and encourage friendly feeling in the readymade dealers community

and relative associations on all subjects connected with the common good of

the readymade Trade Industry.

Contact

Garment Manufacturers & Wholesalers Association

#2-4-552, Lakshmi Plaza, 3rd Floor, Ramgopalpet, Nallagutta, Secunderabad-

500003.

Ph: +91-40-30501504

Fax: +91-40-66326544


10. Andhra Pradesh Technology Development & Promotion Centre (APTDC),

Hyderabad

Established in 1997, APTDC assists entrepreneurs through technology

development & innovation in order to enable them to reach & compete in

global market, providing the following services:

Technology Linked Business Information Services

Transfer of Commercializable Technologies from Indian Institutions to

Interested Agencies/Entrepreneurs

Support Services for Technology Upgradation & Innovation Through

Institutional Collaborations and MoUs (Industry/R&D Labs/Corporate Bodies

of Both National & International Sectors)

Networking of R&D and Academic Institutions for Interaction with Industries

for Technical Problem Solving/Process or Product Development

Technical Skills and Human Resources Development & Upgradation

Contact

APTDC

252/9, Plot # 7, IInd Floor, Regal House, Motilal Nehru Nagar, Begumpet,

Hyderabad - 500 016

Ph: 91-040-27765837

Fax: 91-040-27765836

E-mail: [email protected]

Website: www.aptdc.com

11. A.P. Spinning Mills Association

Andhra Pradesh Spinning Mills Association (APSMA) is an association

constituted for spinning mills having industrial units in Andhra Pradesh.

APSMA helps promote the interests of the spinning mills and facilitate their

growth and operational efficiency by engaging in several activities undertaken

with this aim.

APSMA was established in 1998 under the chairmanship of Sri C.K.Rao with

an intial membership of 25 member mills. With many enthusiastic spinning

mills entrepreneurs joining the association every year, APSMA now has 97

members registered with it.

Key Contacts

Hon. Chairman - Sri R.K.Agarwal, Managing Director, Surya Jyothi Spinning

Mills, Surya Towers, 7th Floor, 105, Sardar Patel Road, Secunderabad – 500

003

Phone No: +91-40 – 27810086

E-mail: [email protected]

Chairman - Mr.G.Punnaiah Chowdary, President, Krishnaganga Spinning

Mills Pvt. Ltd, G.T.Road, Thimmapuram-522 233.


#3-6-168/4, Hyderguda, Hyderabad, INDIA - 500029

Tel : +91 40 27890041

Fax: +91 40 23261140

E-Mail: [email protected]

12. Southern India Mills Association (SIMA)

SIMA was established in 1933 by late Sir. R.K.Shanmugam Chettiar, the first

Finance Minister of Independent India. It started with 11 members. At present

375 textile mills spread over the States of Andhra Pradesh, Karnataka, Kerala,

Pondicherry and Tamil Nadu are members of SIMA. A few mills in the States

of Gujarat, Madhya Pradesh and Maharashtra are also members.

SIMA member mills account for 93.06 lakh spindles and 5781 looms.Out of

the total spinning capacity of 402.01 lakh spindles in the country, about 24% is

represented by SIMA. Approximately 2 Lakh workers are employed in SIMA

member mills. SIMA member mills together produced 25% of total cotton yarn

manufactured in the country. 50% of cotton yarn exported from India comes

from Southern textile mills.

Key Contact

Dr.K.Selvaraju, Secretary General, The Southern India Mills’ Association,

41, Race Course, Coimbatore - 641 018, Tamil Nadu

Ph: 91 422 2221391, 4225333

Mobile: 91 99524 32480

Fax: 91 422 4225366


8. Key Industry Players

S.No.

Name Products Profile

1 Loyal Textiles (P) Ltd, Nellore Yarn, Fabrics, Garments, Home textiles

Loyal Group is a multi-faceted organization, providing an array of products and services for textile and apparel industries.

2 Vrindavan (P) Ltd, Palamaneru, Chittoor

Woven fabric garments

Vrindavan (P) Ltd, is a manufacturer cum exporter in textile products. It is one of the largest exporters of textile products.

3 Shri Govindraja Textiles, Pulivenduria, Kadapa

Combed yarn It was incorporated in the year 1999 as a part of Shri Govindaraja group. The company has one unit in Andhra Pradesh and Tamil Nadu each.

4 Gokaldas Exports Readymade garments

Gokaldas Exports is a manufacturer and exporter of readymade garments.

5 Gokaldass Images Garment manufaturer

It is one of India’s largest integrated clothing corporations.

6 Gokak Textiles Yarns, Yarn dyeing, Canvas, Made Ups

Established in 1885, it exports to over 35 countries, with around 50% of its output as direct exports.

7 Indus Fila, Hindupur, Ananthapur

Yarn dyeing, Apparel, embroidery and weaving

It is a part of the Indus Mandhana Group. The company has diverse interests in textiles sourcing and manufacturing spanning a period of over five decades.

8 Suryakiran International Ltd, Thummalur Rangareddy

Denims, Yarns Suryakiran International Ltd., is subsidiary of Suryalakshmi Cotton Mills Ltd which the second largest manufacturer of denim fabrics from India

9 Priyadarshini Spinning Mills, Garment Unit, Pashaylaram, Medak

Yarn, Yarn dyeing, Fabric, Apparel

Established in 1981, it is one of the leading producers of spun yarn in India.

9. Special Support for Investors

Incentives available for the Entrepreneurs starting new Industries (under

Apparel and Textile Parks), as per the Department of Handlooms and

Textiles, Govt. of Andhra Pradesh:

1. 25% rebate in land cost in IES / IDAs limited to Rs. 5.00 lakhs

2. 15 % Investment subsidy on fixed capital with a cap of Rs 15.00 lakhs and an

additional Investment subsidy of 5% for upto Rs 5.00 lakhs to SC/ ST

entrepreneurs

3. 3% Interest subsidy on prime lending rate on term loan

4. Provision of 5 % seed capital assistance

5. Financial incentive for workers employed in spinning, Garmenting and

processing units as a one-time training cost

6. Benefits in allocation of land at Textile Park, Apparel Parks for Exports

7. 100% reimbursement of stamp duty and transfer duty paid by the industry and

Financial deeds and mortgages etc.

8. 100% reimbursement of stamp duty for lease of land / shed /buildings

9. 25% of the tax paid during one financial year will be ploughed back to

industries as a grant towards payment of tax during next year. This benefit will

be available for 5 years from the date of commencement of production.

10. Ploughing back of 25% of Tax paid for 5 years

11. Power cost will be reimbursed @ Rs.0.75 per unit for power loom units and @

Rs. 1.00 per unit for Garment units during the 1st year of the policy and

thereafter for the remaining four years, the rate of reimbursement would be so

regulated on yearly basis, keeping in view of the changes in the tariff

structures to ensure that power cost to the industry is pegged down to the first

year’s level.

12. A grant of Rs.5000/- per worker employed for meeting critical expenditure of

training.

13. A grant of Rs.1000/- per worker employed to all spinning mills for encouraging

them to diversify and start new ventures.

The State provides incentives for Mega projects (over INR 500 million

investment on Plant and Machinery in a Textile Industry), in the form of

exemption of duty for land

concessions on water and power

investment subsidies, credit support and tax benefits

Also, the single window clearance for all industrial approvals as required

under different statutes has been in effect since June, 2002.

10. Andhra Pradesh’s Value Proposition to

Investors

1. As of now, 20 SEZs are fully operational in the State, with an investment of

Rs.11,305 crore and with 72,029 employees. However, 110 SEZs have been

approved in the State, of which 73 are notified across the Sectors, with 3

SEZs for Textile/Apparel.

2. Single Window Clearance System: to provide efficient, transparent and

citizen friendly interface, active since June, 2002.

3. Captive Power Generation: Allowed for all industrial units.

4. Conducive and flexible labour laws, with no flash strikes, as units set up in

Apparel Parks will be declared as public utility service

5. Stamp Duty Exemptions: 100% reimbursement of stamp duty, transfer duty

and Registration fee paid by Textile/Apparel units

6. Corporate tax exemptions: Applicable to all units located in SEZ Parks as

per SEZ act besides assisting in Exports and Imports

7. Zoning regulation exemptions: Textile/Apparel units will be exempted from

the zoning regulations and from the payment of conversion fee

8. Urban land ceiling exemptions: private land owners will be allowed

exemption under ULC for development of Textile/Apparel Parks with a

minimum extent of 25 acres in the periphery of city limits and beyond besides

a minimum of 5 acres within city limits

9. Health care: 10 – 15 acres of land will be earmarked amongst a cluster of

units to promote higher healthcare

11. Opportunities and Upcoming projects

High Growth Sectors and Potential Locations identified by the

Commissioner of Industries, Government of Andhra Pradesh include

Visakhapatnam, Mahabubnagar, Guntur, Krishna, Prakasam, Anantapur and

Nellore, for the Textile and Spinning sector.

The Export Promotion Council for Handicrafts (EPCH) will set up a Rs.

15.33 crore lace trade centre at Narsapur in Andhra Pradesh, aimed at

providing an opportunity to local artisians for developing and marketing

products at the global level.

Newly sanctioned projects for Textile Parks, as per a press release by

the Ministry of Textiles in March 2013, include:

1. Lepakshi Integrated Textile Park, Anantapur, with an estimated investment

of Rs 659.63 crore and providing employment to an estimated 15,000

individuals.

2. Whitegold Integrated Spentex Park, Ranga Reddy district, with an estimated

investment of Rs. 578.98 crore and providing employment to an estimated

6,500 individuals.

12. References

Ministry of Textiles

Planning Commission of India

Department of Handlooms & Textiles, Govt. of Andhra Pradesh

APInvest, Govt. of Andhra Pradesh

Commissionerate of Industries, Govt. of Andhra Pradesh

SME Rating Agency of India (SMERA)

FICCI

DIPP

IBEF

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