textiles - indextb.com · ladies garment industries, kids garment industry, shawls & scarfs...
TRANSCRIPT
Manufacturing facility for
High Value Garments
TextilesGovernment of Gujarat
Page 2
Contents
Project Concept 3
Market Potential 5
Growth Drivers 6
Gujarat ndash Competitive Advantage 8
Project Information 9
- Location Size
- Infrastructure Availability Connectivity
- Raw material Manpower
- Key Players Machinery Suppliers
- Potential Collaboration Opportunities
- Key Considerations
Project Financials 15
Approvals amp Incentives 16
Page 3
Project Concept
What are High Value Garments
High-value Garments (HVG) are an important segment in the textile market Through the process
of higher value addition to garments garment manufacturers are able to they are converted into
finished products which has increased aesthetic look without compromising the quality of the
product
The key advantage of these garments is the high price uniqueness attractiveness and focusing a
business more closely on its targeted market segments
Additionally the higher value addition increases market demand along with increased value and
price for the garments
Segmentation of High Value Garments
Womenrsquos wear Childrenrsquos wearMenrsquos wear
Casual WearFormal Wear Traditional Wear Essentials
Uniforms
Active
Sportswear
Baby clothing Toddler clothing
Sources
httpsbooksgooglecoinbooksid=rloiBQAAQBAJamppg=PA188amplpg=PA188ampdq=22high+value+garments22ampsource=blampots=1d2YKTISHJampsi
g=eiDlOoKjt2Y2jE2E8PYnjdpVMDQamphl=enampsa=Xampredir_esc=yv=onepageampq=22high20value20garments22ampf=false
Project Overview
Unisex
Users of HVG
Segmentation of HVG by Use
Tulle OrganzaChiffon Lycra
Imported and Indian Fabrics Used in HVG
Modals Other Stretch KnitsSilk
The proposed project involves setting up of a facility to manufacture High Value Garments
namely Ready Made Garments Handlooms etc at Surat Apparel Park Surat
The proposed unit will use sophisticated machinery raw materials and value added services such
as finishing printing closure embroidery and special processes to produce garments of high
value
Total cost of setting up of the proposed unit is estimated to be INR 133 crore which includes the
cost for land and building along with machinery and equipment for the facility
Page 4
Project Concept
Value Addition Processes
Manufacturers of High Value Garments use several technique as part of the value addition process
some of the techniques are
Fabric Value Additions
Crushing Fabric
Methods such as trimming
fibers using patterned rolls
treating with hot fluids
using heated drums etc
are followed to create
designs or sculpted effects
on the fabric
Fabric Crinkling
Fabric crinkling is a unique
and attractive look to the
fabric
Crinkling can be done for ndash
ladies garment industries
kids garment industry
shawls amp Scarfs industry
Rope WrinkleLong
CrushRope Crushing
Rope Crush process is
where the fabric is wrinkled
in such a way that the
effect is long term and the
width of the fabric is
lessened
Textile Embossing
Embossing is a technique in which images
and patterns are created on the surface of a
product through the application of heat and
pressure
Embossing is a natural and elegant process
which changes the nature of the material on
which it is done
Foil Printing Fabric
Foil printing is the process of printing a pattern
on fabric using foil in order to create a shiny
effect on the fabric
There are two types of foil printing methods
first pattern is printed by glue on the fabric
and then pressed with foil paper by a hot
steel roller The second method is printing on
the foil paper first and then press the foil on
the fabric with hot steel roller or iron
Other Value Additions
Finishing
Mechanical Finishing
Chemical Finishing
Printing
All over Print
Chest Print
Special Processes
Tie and Dye
Batiks
Quilting
Closures
Buttons
Zippers
Velcro
Hooks
Loops
Embroidery
Hand Embroidery
Machine Embroidery
Source httpwwwindiamartcommaruti-processorsprofile1html
Page 5
Market Potential
Global Market
428580
770
2013 2018F 2023F
Global apparel market size (US$ billion)
Currently US-based athleisure- and lifestyle brand
Nike is the largest fashion company worldwide with
revenues amounting to USD 306 billion
Spanish fast-fashion giant Inditex is the second
largest fashion company worldwide with luxury
brands such as Zara Pull amp Bear and Stradivarious
in its portfolio
Other luxury brand giants include LVMH (French)
TJX (US) HampM (Swedish)
41
64
102
2013 2018F 2023F
Indian domestic apparel market size
(US$ billion)
The Indian Designer wear Industry according to a
recent study by ASSOCHAM is growing at a CAGR of
about 40 The report estimates that the Indian
Designer wear industry is likely to cross the INR 11000
crore mark by 2020
The Designer industry currently pegged at INR 720
crores is seeing a growing popularity of boutiques
selling designer local wear showcasing finished and
ready-to-stitch garments and trendy dresses
Apparel segmentrsquos growth is supported by a robust
growth in the organized apparel segment and entry of
players such as HampM Zara and Marks amp Spencer
Domestic Market
According to the Secretary General (ASSOCHAM) ldquoCurrently Indiarsquos share in the global designer
wear industry is a minimal 032 but is likely to reach about 17 by 2020rdquo
The fashion industry in India is still budding and therefore provides ample opportunity for artistic
hard-working and enthusiastic persons
Gujarat has developed opportunities towards higher value addition product by setting up modern
process houses and knitwearready-made garments plants to fulfil the domestic and international
market demand
Indiarsquos per capita spend on apparel was US$37 in 2013 which was lowest among the above
mentioned countries However per capita spend on apparel is expected to reach US$129 in 2025
growing at a CAGR of 11 form 2013-2025
Source
EMIS UN Comtrade Technopak
FICCI Knowledge Paper on Driving growth through innovation
ldquoTextile Sector Indiardquo EMIS (December 2015) accessed via EMIS
database
httpwwwinduseduorgpdfsIJREISSIJREISS_349_97270pdf
ldquoTextiles And Apparelrdquo IBEF (January 2016) accessed via
wwwibeforgdownloadTextiles-and-Apparel-January-2016pdf
httpwwwalokindcomDownloadsIndian20Textile20Trade20-
Golden20Period-20March202012pdf
httpretailfranchiseindiacomarticlesector-watchfashionDesigner-
wear-industry-growing-big-in-Indiaa1323
Page 6
Growth Drivers
Scheme for Integrated Textile Parks (SITP) implemented by
GoI facilitates setting up of textile units
Government of Gujarat has introduced lsquoFarm-Factory-Fabric-
Fashion-Foreignrsquo Textile Policy to strengthen the entire textile
value-chain
Special incentive of 6 interest subsidy has been extended for
promotion of technical textiles in Gujarat
Multi-brand apparel stores such as Lifestyle Shoppers Stop
and Westside have witnessed aggressive expansion over the
past decade and this trend is likely to continue
Indian and international brands have leveraged this channel to
capture a larger customer base sourcing fabricsgarments
manufactured in India
Increased role of
organized retail
Favorable government
initiatives
100 FDI in single brand retailing has led to an increase in the
entry of top global apparel brands in India
HampM and Gap entered India in 2015 and plan to expand their
stores to 50 and 40 respectively by 2020
Aeacuteropostale also entered India in 2015 and has tied up with
Arvind Lifestyle
Entry of global apparel
brands
Rising fitness trend amongst urban women has lead to
increased demand for HVG such as knitted swimwear
sportswear sport-inspired footwear and yoga pants
Manufacturers are expected to launch products focused on
urban women with benefits such as flexibility ease of washing
light weight and hygiene
Rising fitness trend
Apparel and footwear retailing through internet registered a
growth of 86 in 2015 driven by the rapid penetration of
smartphones in India
In 2015 smartphones volume grew by 24 in India and the
total number of internet users reached 350 million
Global brands such as Topshop Topman and Dogo have taken
online route for entry in India
Growth in internet
retailing
Source
httpwwwindiantextilejournalcomNewsaspxnId=cNSCIBwYQQrSOO9tL1GtUg==
httpwwwmakeinindiacomhome
httphkmbhktdccomen1X0A5909hktdc-researchMake-in-India-The-Gujarat-Production-Base-Opportunity
httpsinternationalgapinccomgapinenstore-locator
httpwwwhmcominstore-locator
APPAREL AND FOOTWEAR IN INDIA Euromonitor International March 2016
Page 7
Gujarat - Competitive AdvantageHigh raw material (cotton) availability
Gujarat Government initiatives
Three textile SEZs
in Ahmedabad were approved in 2014 with investment of ~INR5 billion
Two composite centers
to be established by 2019 in Ahmedabad and Surat
One CoE (Centre of Excellence)
in Gujarat will be developed by NTC (National Textile Corporation)
7 interest subsidy
on new plants and machinery for a period of 5 years for HVG and made-ups
33 of the cotton produced in India comes
from Gujarat
Surendranagar Jamnagar Rajkot
Bhavnagar and Amreli are the main cotton
producing districts
Cotton production is also supported by its
climatic and geographical conditions as the
state has black soil mixed with lime and
potash and ~50 cm rainfall that are optimum
for cotton cultivation
Also 57 of the cotton cultivations are
irrigated in Gujarat reducing dependence on
monsoons
98 103119
90
117
FY10 FY11 FY12 FY13 FY14
Cotton production in Gujarat (million bales)
As a of total production
in India
32 30 32 25 30
Surat Apparel Park
has been converted into a SEZ
Source
Cotton Corporation of India
International Journal of Research in Engineering IT and Social Sciences
ldquoTextile Sector Indiardquo EMIS (December 2015) accessed via EMIS database
ldquoTextiles And Apparelrdquo IBEF (January 2016) accessed via wwwibeforgdownloadTextiles-and-Apparel-January-2016pdf
ldquoVibrant Gujarat Manufacturing Sector Profilerdquo (October 2014) accessed via wwwvibrantgujaratcomwritereaddataimagespdfManufacturing-
Sector-Profilepdf
httpwwwinduseduorgpdfsIJREISSIJREISS_349_97270pdf
httpwwwvibrantgujaratcomwritereaddataimagespdfManufacturing-Sector-Profilepdf
httpwwwbusiness-standardcomarticleeconomy-policysurat-apparel-park-to-become-a-special-economic-zone-103122301077_1html
httpwwwnarendramodiingujarat-unveils-E28098navi-gujarat-vastranitiE28099-gujarat-textile-policy-2012-4720
~US$328 billion
Investment in the textile industry by 2020 creating 1 million jobs
Gujarat is home to several leading institutions in textile fashion and design such as
National Institute of Fashion Technology (Gadhinagar) the campus at Gandhinagar inaugurated in 2004 is designed to meet the demands of imparting creative education NIFT offers a variety of courses including BDes In Fashion Design Accessory Design Textile Design and Fashion Communication NIFT also offers a BFTechin Apparel Production
National Institute of Design NID was established in 1961 and has been a centrefor design education practice and research since NID offers professional education programmes at Bachelors and Masters level with five faculty streams and 20 diverse design domains
Ahmedabad Textile Industryrsquos Research Association Established in 1947 and starting in 1949 ATIRA is an autonomous non-profit association which is involved in textile research
Textile and Fashion Institutes
Page 8
Gujarat - Competitive Advantage
Textile hubs in Gujarat
Kutch ndash Textile
Handicrafts
Surendranagar
Manavadar
and Gondal ndash
Cotton ginning
Saurashtra ndash Hand printing
and processing
Ahmedabadndash
Denims
Ankaleshwar ndash
Technical
TextilesSurat ndash Silk city
Large number of textile hubs in Gujarat
High availability of skilled manpower for the textile sector
Gujarat has 28 Industrial Training Institutes
(ITIs) that offer industrial training courses on
Textile and Garment industry with an intake
of ~6000 students per year
These institutes offers specialized courses
in computer-aided dress making and dress
design pattern making and needle work
The government also provides assistance
and training to apparel training institutions
and the power loom sector
The margins of productivity of the garments
is lower due to which it becomes a natural
choice of the industry to target HVG market
in Gujarat
Gujarat has an established textile sector
with more than 1500 medium and large
textile units and 18 textile-related product
clusters
Large number of textile units are attributable
to high availability of raw materials with
Gujarat being the largest producer of cotton
in the country (production of ~12 million
bales in FY14)
Going forward the state plans to
significantly increase its textile production
capacity from the current level of ~50000
weaving looms
~50 of Indias art silk fabric is produced in
Surat alone
Gujarat is the largest producer of denim in
India (65) and the third largest in the world
Location of major educational institutions
Gandhinagar
Ahmedabad
Rajkot
Bhavnagar
Vadodara
Surat
Source
ldquoBaseline survey of the Technical Textile industry in Indiardquo Office of the Textile Commissioner 29 March 2016
ldquoManufacturing Sector ndash Profilerdquo Vibrant Gujarat website 7 October 2014
ldquoGujarat ndash Growth and Prosperity for Allrdquo Vibrant Gujarat website 25 August 2014
Page 9
Project Information
High Value Garment Processes
The High Value Garment process begins after the processing stage in the garmentapparel
production where the design and prototype of the designs are prepared and with the use of highly
sophisticated machinery and skilled manpower the final garments are produced
At this stage of garment apparel production ndash various types of value additions are done to give
the garments the high quality and aesthetic value along with branding
Source Textiles and Apparel IBEF Janurary 2016 (wwwibeforg)
lsquoValue Addition in Garment Industryrsquo Nishok TSR PSG Polytechnic College
Value addition for HVG
At the stages of processing and garment production value addition is done to finally make textiles
High Value Garments
Value addition of various types are done to provide the finished product with greater aesthetic
value and brand identity The value additions will also ensure increase the demand for high value
product with superior quality
The types of value additions are
Finishing ndash Mechanical and Chemical finishing
Printing ndash All over print chest print
Special processes ndash Tie and Dye Batiks Quilting
Closures ndash Button Zippers Velcro hooks and loops
Embroidery ndash Hand and Machine Embroidery
Raw Material
Cotton
Jute
Silk
Wool
Cashmere
Chiffon
Modal
Lycra
Tulle
Organza
Stretch Knits
Processing
Ginning ndash Fiber
Spinning ndash Yarn
WeavingKnitting
ndash Fabric
Processing ndash
Processed Fabric
GarmentApparel
Production
Final Garment
apparel
Value Addition
Fabric
Finishing
Printing
Special
Processes
Closure
Embroidery
Quality Check
Page 10
Project Information
Raw Materials for HVG
Silk
India is the second largest silk
producer in the world
contributing to ~18 of the total
global production It has the
distinction of all producing all 4
varieties of silk
In India some of the major silk
centres include Kanchivaram
Varansi and Bangalore
In Gujarat silk can be sourced
from major silk centres of Surat
and Cambay
In the High Value Garment segment which includes fashion and designer clothing silk satin and
cashmere are the three most commonly used fabrics
Raw materials used in High Value Garments are both sourced domestically and imported Some
of the imported and Indian fabrics used are cashmere satin Chiffon Tulle Organza Lycra Silk
and various other stretch knits
Satin
Satin although usually
classified in the same
category as silk has a few
distinctive features Satin
is more shiny compared
to silk and usually
incorporates some kind of
silk fabric into it but has a
dull back
Satin can be sourced
from major silk centres of
Surat as well
Cashmere
Cashmere is known for its long
lasting comfort and unbelievably
soft appearance
Designers around the world have
used this material Some of the
designer to use cashmere in their
fashion lines include ndash Kenneth
Cole Micheal Kors and Christian
Dior
India is a leading producer of this
material and can be sourced
locally
Supplier Name Key products Nearest Location
Usha International Sewing machinesSurat Gujarathttpwwwushacom
Meera Machine Tools Overlock machines Surat Gujarat
Super Sonic Impex Sewing machine motor Surat Gujarat
Juki India Private LtdIndustrial Sewing Machines hi-
tech sewing machinesAhmedabad Gujarat
Hi-tech Machines
Fusing Machines Collar Cutting
Machines Embossing Machines
Embroidery backup film
Removing Machine Lable or
Heat Transfer Machines
New Delhi
List of Machinery in India
Key Manufacturers in India
Arvind Limited
Levirsquos Strauss India Pvt
LtdAlok Industries
Madura Fashion amp Lifestyle Benetton India Pvt Ltd
Page 11
Potential collaboration opportunities
Source
iNDEXTb
ldquoDivisionsrdquo Arvind Limited website httpwwwarvindcomdivisionthearvindstorehtmMenuTab1
ldquoAbout usrdquo Madura Fashion amp Lifestyle website httpwwwmadurafnlcomabout_usabout_ushtml
httpwwwalokindcom
ldquoAbout usrdquo Lifestyle International website httpwwwlifestylestorescomaboutusphp
ldquoIndustry profile Apparel retail in Indiardquo Marketline May 2015 via ThomsonOne
rdquoOverviewrdquo Future Retail website httpfutureretailcoinabout-usoverview-retailhtml
ldquoBusiness Overviewrdquo Future Lifestyle website httpfuturelifestyleinbusiness_overviewhtml
ldquoRaymond Apparel Ltdrdquo Raymond India website httpwwwraymondindiacomgrp_ralaspVZpsNU0w8iQ
ldquoCorporaterdquo Shoppers Stop website httpcorporateshoppersstopcom
ldquoQuarterly Performance March 2015rdquo Shoppers Stop website httpcorporateshoppersstopcomuploaded_filesb602138-63dfpdf
ldquoAbout usrdquo Westside website httpswwwmywestsidecomWebPagesInnerPagesaboutusaspx
ldquoAbout usrdquo Pantaloons website httppantaloonscomcompanyabout-usoverview
Project Information
Key Considerations
Since this is a niche segment in the textile value chain high skill work force is essential
Institutes that offer specialized courses in computer-aided dress making and dress design
pattern making and needle work are to be promoted
Rising fashion trends amongst urban women increases the demand for knitted swimwear
sportswear sport-inspired footwear and yoga pants
HVG manufacturers can collaborate with
Machinery and raw material suppliers
Domestic and international apparel retail brands
Organization such as Gujarat Garment Manufacturers Association Ahmedabad Textile Mills Association South Gujarat Textile Processors Association which work towards the development of textile and garment industry in Gujarat
Institutions such as National Institute of Fashion Technology for the skill development of employees
Page 12
Project Information
Existing Textile Parks
1 MS Dholi Integrated Spinning Park Ltd Ahmedabad
2 Ms Karanj Textile Park Pvt Ltd Surat
3 Palsana Textile Park Pvt Ltd Surat
4 Dholka Textile Park Pvt Ltd Surat
5 Arvind Garments Park Pvt Ltd Ahmedabad
6 Ms Shalon Textile Park Pvt Ltd Surat
7 MS Jayraj Textile Park Pvt Ltd Surat
8 MS Shanti Integrated Textile Park Pvt Ltd
9 MS Giriraj Developers Surat
10 Rajhans Infracon (India) Pvt Ltd Surat
11 The Surat Vankar Sahakari Sangh Ltd Surat
12 Sanika Industrial Techno Park Surat
13 Ekta Enterprise Platinum Textile park Surat
14 NSP Infrastructure Pvt Ltd Surat
15 D D Spintex Park Pvt Ltd Bharuch
16 Gaytri Cotspin Park PPL Bharuch
S
No
Name of the Industrial Park Location Taluka District
1 Makson SEZ Pvt LTdOlak Chharad
Derwada MalikaLakhtar Surendranagar
2Madhukar Infrastructure Developers Pvt
Ltd
Jansali
BalolLimbdi Surendranagar
3 Satyesh infrastructures LLP Janiyadra narnavi Vagra Bharuch
4 Bhadresh Trading Corporation Ltd Varnora Zinkadi
PaiyaBhuj Kutch
5 B T C Cashkot Ind Ltd Bhuvad Anjar Kutch
6 Eco Green Industrial Park Pvt LTd Kharchi- Bhilwada Jhagadia Bharuch
7 Adharbhut Industrial Park Pvt LtdKava Madafar
Panchpipla VadJambusar Bharuch
8 Ample Industrial Park Pvt Ltd Vad Jantran Jambusar Bharuch
9 Damanganga Industrial Park Karvad Dungara Pardi Valsad
10 Green Field Industrial Park Pvt Ltd Kharchi- Bhilwada Jhagadia Bharuch
11 Ms Ratanakar Estate Developer Por Vadodara Vadodara
12 Ms Welspun Anjar SEZ Limited Varsamedi Anjar Kutchh
13 Ms Ratanakar Estate Developer Por Vadodara Vadodara
The Proposed Unit can be
developed anywhere in Gujarat
The preferred location for the
proposed unit would be in the
existing proposed parks or in the
vicinity of these parks in order to
have direct access to the eco
system
Proposed Upcoming Textile Parks
Page 13
Project Information
Proposed
The Mumbai-Ahmedabad bullet train project
will have Surat as one of the stations
In 2016 the Gujarat government assigned
Delhi Metro Rail Corporation as a consultant
for the proposed metro connectivity in Surat
Rail connectivity was proposed for Hazira and
Nargol ports in the 2016 rail budget
Proposed
Proposed four-lane highways which are
expected to improve connectivity in Surat
include ndash Dakor-Savli Vadodara-Dabhoi amp
Surat-Olpad-Bardoli
Proposed
In January 2015 Airports Authority of India
gave an in-principle approval for cargo
terminal at Surat airport worth INR70 million
The terminal is expected to be operational in
2017
In February 2016 Surat Airport Action
Committee filed an online petition for an
international airport at Surat
The nearest port is Hazira which is 25 km
from Surat
Additionally Hazira port is well connected
to Mundra port and Jawaharlal Nehru Port
Trust (JNPT) ndash Indiarsquos largest container
port
Thus it provides a convenient textiles-
related trade gateway to International
(Europe Africa America and the Middle
East) and domestic markets
Surat domestic airport is well connected to
various parts of the country The city is
located ~275 kms from the international
airport at Ahmedabad
Surat is connected with other districts of the
state such as Rajkot Vadodara and
Ahmedabad by rail
Hazira port in Surat is ~16 km away from the
Surat railway station
The city is connected to Delhi Mumbai
Industrial Corridor (DMIC) which links
Ahmedabad Vadodara and Surat
Proximity to NH-8 and NH-6 further
enhances connectivity in the city
Surat also has very good connectivity with
other cities of the state such as Vadodara
(154 km) and Ahmedabad (265 km)
Logistics amp Connectivity
Water for industrial purposes can be obtained
from four sources viz Gujarat Water Supply
and Sewerage Board (GWSSB) an irrigation
canal dams and surface reservoirs
The main source for the power supply is Torrent Power Limited in Surat
Power
Rail Road
Air Port
Water
Utility
Source
httpwwwfirstpostcominvestingfive-most-promising-indian-tier-ii-cities-you-should-invest-in-2796296html
httpdeshgujaratcom20150325clearances-by-july-works-for-nargol-port-to-start-next-yeargog
httptimesofindiaindiatimescomcitysuratMulti-mode-transportation-hub-soon-at-Surat-railway-stationarticleshow52095198cms
Page 14
Project Financials
Cost of setting up unit producing High Value Gents Shirts
and Trousers at Surat Apparel Park The proposed unit will have a
production capacity of 90000 Gents Shirts and Gents Trousers per month The quality of the
garments mainly depends on quality of fabric used Standards such as IS12675 IS4039 and
IS10194 will be complied with at the plant
Project cost
Project components amp specifications Cost (INR lakh)
Land (800 sq mtr)
Rate (INR 1500 per sq mtr as of May 2016)1
1200
Building Area (375 sq m) (built up) ( 3000 per sft) 1009
Factory Shed ndash 250 sq mt
Store (Raw Material) ndash 100 sq mt
Store (Finished Goods) ndash 75 sq mt
Land amp Building Component 1129
Machinery amp Equipment 250 ndash 27
Other Fixed Assets 30 ndash 50
Machinery 28 ndash 30
Total Capital Cost 140 - 143
Working Capital (Per Month)
Staff and Labor 2
Raw Material and Utilities 33
Total Recurring cost 35
Total Capital Investment
Machinery amp Equipment 28
Working capital for 3 months 105
Total Capital Investment 133
Source Project Profile on Gents Shirts and Trousers MSME ndash Development Institute Ministry of MSME GoI
Page 15
Project Financials
Source Project Profile on Gents Shirts and Trousers MSME ndash Development Institute Ministry of MSME GoI
Manager 1
Sales Representative 1
Accounts Officer 1
Production Manager 1
Cutting Master 1
Skilled Workers 55
Pressman 4
Unskilled workers 6
Manpower requirement in the proposed HVG manufacturing unit
Equipment Qty
Single Needle Lock Stitch Machine with motor 50
6rdquo Power driven cloth cutting machine 1
2 needle overlock safety stitching machine with trimmer 1
Double Needle Lock Stitch Machine 2
Button Hole Making Machine 1
Button Stitching Machine 1
Hot Fusing Press 1
Garment Washing Machine 1
Hydro extractor 25 kg capacity 1
Tumbler Dryer 25 kg capacity 1
Flat Bed Steam Iron Press with Vacuum Table 4
Zig Zag Embroidery Machine 1
Generator Set 30 KVA 1
Wash Room Trolleys 4
Machinery and Equipment
Page 16
Approvals amp Incentives
5 interest subsidy on bank loans for five years
for those who establish new plants for value
addition chain like ginning processing
weaving knitting and machine carpeting
7 interest subsidy on new plant and
machinery for five years for cotton spinning
garment manufacturing and technology up
gradation
Refund of value added tax (VAT) on expansion
of new units in spinning and power tariff
concession to cotton spinning and weaving
units
Financial assistance for skill development
centres for technology acquisition and also for
supporting energy and water conservation as
well as for environmental compliance
Incentives from Government of Gujarat
Under the Technology Upgradation Fund Scheme (TUFS) the GoI is offering 5 credit linked
interest subsidy on purchase of textile machinery
In 2016 the government also approved an amended technology upgradation funds scheme
(ATUFS) where the GoI has made a fresh allocation of INR515 billion as one time capital
subsidy for new investment apart from allocated budget of INR338 billion for limited liability
Through the ATUFS the GoI aims to attract an investment of INR1000 billion by 2018
Scheme for Integrated Textile Parks (SITP) 40 capital subsidy to a maximum of INR40 crore on
total project cost on projects approved by government Also 100 FDI allowed for textile sector
Incentives from Government of India (GoI)
For approvals the project report should be submitted to respective District Industries Centres
(DICs) DIC will forward the proposal to Industries Commissioner who will submit the report to
State Level Approver Committee (SLAC) for final approval
The basic custom duty on imported technical textile machinery has been reduced from 10 to 5
and support to start-ups is also provided
68 76 100400
1340
3900
FY11 FY12 FY13 FY14 FY15 FY16
Incentives to Textile and Apparel Sector from the Government of
Gujarat (INR million)
CAGR
125
During FY16 incentives provided
increased ~3 times y-o-y and are
expected to rise further
Approvals
Source
ldquoGujarat Textile Policyrdquo Industries and Mines Department Government of Gujarat 5 September 2012
ldquoManufacturing Sector ndash Profilerdquo Vibrant Gujarat website 7 October 2014
Industries Commissionerate website httpicgujaratgovinpage_id=3175 accessed on 1 June 2016
ldquoTextile industry welcomes amended TUFSrdquo Business Standard 2 January 2016
httpwwwbusiness-standardcomarticleeconomy-policyduty-drawback-sops-to-incentivise-high-value-garment-exports-116081800720_1html
GoI has increased the duty drawback of 32 to 47 (depending on the category) for exports of
non-fabric inputs made from imported fabrics to incentivize high value garment (HVG) exports
Office of The Industries Commissionerate
Block No 1 2nd Floor Udyog Bhavan
Gandhinagar 382 010 Gujarat
Ph 2325268323252617
Email ID iccordgujaratgovin
This project profile is based on preliminary study to facilitate prospective entrepreneurs to assess a prima facie scope
It is however advisable to get a detailed feasibility study prepared before taking a final investment decision
Gujarat Industrial Development Corporation
Industries amp Mines Department
Office of Industries Commissioner
wwwgidcgovin
wwwimd-gujaratgovin
wwwicgujaratgovin
Industrial Extension Bureau
wwwindextbcom
httptechnotexgovin
Ministry of Textiles Government of India
Controllerate of Quality Assurance (Textiles and Clothing)
wwwdgqadefencegovin
Page 2
Contents
Project Concept 3
Market Potential 5
Growth Drivers 6
Gujarat ndash Competitive Advantage 8
Project Information 9
- Location Size
- Infrastructure Availability Connectivity
- Raw material Manpower
- Key Players Machinery Suppliers
- Potential Collaboration Opportunities
- Key Considerations
Project Financials 15
Approvals amp Incentives 16
Page 3
Project Concept
What are High Value Garments
High-value Garments (HVG) are an important segment in the textile market Through the process
of higher value addition to garments garment manufacturers are able to they are converted into
finished products which has increased aesthetic look without compromising the quality of the
product
The key advantage of these garments is the high price uniqueness attractiveness and focusing a
business more closely on its targeted market segments
Additionally the higher value addition increases market demand along with increased value and
price for the garments
Segmentation of High Value Garments
Womenrsquos wear Childrenrsquos wearMenrsquos wear
Casual WearFormal Wear Traditional Wear Essentials
Uniforms
Active
Sportswear
Baby clothing Toddler clothing
Sources
httpsbooksgooglecoinbooksid=rloiBQAAQBAJamppg=PA188amplpg=PA188ampdq=22high+value+garments22ampsource=blampots=1d2YKTISHJampsi
g=eiDlOoKjt2Y2jE2E8PYnjdpVMDQamphl=enampsa=Xampredir_esc=yv=onepageampq=22high20value20garments22ampf=false
Project Overview
Unisex
Users of HVG
Segmentation of HVG by Use
Tulle OrganzaChiffon Lycra
Imported and Indian Fabrics Used in HVG
Modals Other Stretch KnitsSilk
The proposed project involves setting up of a facility to manufacture High Value Garments
namely Ready Made Garments Handlooms etc at Surat Apparel Park Surat
The proposed unit will use sophisticated machinery raw materials and value added services such
as finishing printing closure embroidery and special processes to produce garments of high
value
Total cost of setting up of the proposed unit is estimated to be INR 133 crore which includes the
cost for land and building along with machinery and equipment for the facility
Page 4
Project Concept
Value Addition Processes
Manufacturers of High Value Garments use several technique as part of the value addition process
some of the techniques are
Fabric Value Additions
Crushing Fabric
Methods such as trimming
fibers using patterned rolls
treating with hot fluids
using heated drums etc
are followed to create
designs or sculpted effects
on the fabric
Fabric Crinkling
Fabric crinkling is a unique
and attractive look to the
fabric
Crinkling can be done for ndash
ladies garment industries
kids garment industry
shawls amp Scarfs industry
Rope WrinkleLong
CrushRope Crushing
Rope Crush process is
where the fabric is wrinkled
in such a way that the
effect is long term and the
width of the fabric is
lessened
Textile Embossing
Embossing is a technique in which images
and patterns are created on the surface of a
product through the application of heat and
pressure
Embossing is a natural and elegant process
which changes the nature of the material on
which it is done
Foil Printing Fabric
Foil printing is the process of printing a pattern
on fabric using foil in order to create a shiny
effect on the fabric
There are two types of foil printing methods
first pattern is printed by glue on the fabric
and then pressed with foil paper by a hot
steel roller The second method is printing on
the foil paper first and then press the foil on
the fabric with hot steel roller or iron
Other Value Additions
Finishing
Mechanical Finishing
Chemical Finishing
Printing
All over Print
Chest Print
Special Processes
Tie and Dye
Batiks
Quilting
Closures
Buttons
Zippers
Velcro
Hooks
Loops
Embroidery
Hand Embroidery
Machine Embroidery
Source httpwwwindiamartcommaruti-processorsprofile1html
Page 5
Market Potential
Global Market
428580
770
2013 2018F 2023F
Global apparel market size (US$ billion)
Currently US-based athleisure- and lifestyle brand
Nike is the largest fashion company worldwide with
revenues amounting to USD 306 billion
Spanish fast-fashion giant Inditex is the second
largest fashion company worldwide with luxury
brands such as Zara Pull amp Bear and Stradivarious
in its portfolio
Other luxury brand giants include LVMH (French)
TJX (US) HampM (Swedish)
41
64
102
2013 2018F 2023F
Indian domestic apparel market size
(US$ billion)
The Indian Designer wear Industry according to a
recent study by ASSOCHAM is growing at a CAGR of
about 40 The report estimates that the Indian
Designer wear industry is likely to cross the INR 11000
crore mark by 2020
The Designer industry currently pegged at INR 720
crores is seeing a growing popularity of boutiques
selling designer local wear showcasing finished and
ready-to-stitch garments and trendy dresses
Apparel segmentrsquos growth is supported by a robust
growth in the organized apparel segment and entry of
players such as HampM Zara and Marks amp Spencer
Domestic Market
According to the Secretary General (ASSOCHAM) ldquoCurrently Indiarsquos share in the global designer
wear industry is a minimal 032 but is likely to reach about 17 by 2020rdquo
The fashion industry in India is still budding and therefore provides ample opportunity for artistic
hard-working and enthusiastic persons
Gujarat has developed opportunities towards higher value addition product by setting up modern
process houses and knitwearready-made garments plants to fulfil the domestic and international
market demand
Indiarsquos per capita spend on apparel was US$37 in 2013 which was lowest among the above
mentioned countries However per capita spend on apparel is expected to reach US$129 in 2025
growing at a CAGR of 11 form 2013-2025
Source
EMIS UN Comtrade Technopak
FICCI Knowledge Paper on Driving growth through innovation
ldquoTextile Sector Indiardquo EMIS (December 2015) accessed via EMIS
database
httpwwwinduseduorgpdfsIJREISSIJREISS_349_97270pdf
ldquoTextiles And Apparelrdquo IBEF (January 2016) accessed via
wwwibeforgdownloadTextiles-and-Apparel-January-2016pdf
httpwwwalokindcomDownloadsIndian20Textile20Trade20-
Golden20Period-20March202012pdf
httpretailfranchiseindiacomarticlesector-watchfashionDesigner-
wear-industry-growing-big-in-Indiaa1323
Page 6
Growth Drivers
Scheme for Integrated Textile Parks (SITP) implemented by
GoI facilitates setting up of textile units
Government of Gujarat has introduced lsquoFarm-Factory-Fabric-
Fashion-Foreignrsquo Textile Policy to strengthen the entire textile
value-chain
Special incentive of 6 interest subsidy has been extended for
promotion of technical textiles in Gujarat
Multi-brand apparel stores such as Lifestyle Shoppers Stop
and Westside have witnessed aggressive expansion over the
past decade and this trend is likely to continue
Indian and international brands have leveraged this channel to
capture a larger customer base sourcing fabricsgarments
manufactured in India
Increased role of
organized retail
Favorable government
initiatives
100 FDI in single brand retailing has led to an increase in the
entry of top global apparel brands in India
HampM and Gap entered India in 2015 and plan to expand their
stores to 50 and 40 respectively by 2020
Aeacuteropostale also entered India in 2015 and has tied up with
Arvind Lifestyle
Entry of global apparel
brands
Rising fitness trend amongst urban women has lead to
increased demand for HVG such as knitted swimwear
sportswear sport-inspired footwear and yoga pants
Manufacturers are expected to launch products focused on
urban women with benefits such as flexibility ease of washing
light weight and hygiene
Rising fitness trend
Apparel and footwear retailing through internet registered a
growth of 86 in 2015 driven by the rapid penetration of
smartphones in India
In 2015 smartphones volume grew by 24 in India and the
total number of internet users reached 350 million
Global brands such as Topshop Topman and Dogo have taken
online route for entry in India
Growth in internet
retailing
Source
httpwwwindiantextilejournalcomNewsaspxnId=cNSCIBwYQQrSOO9tL1GtUg==
httpwwwmakeinindiacomhome
httphkmbhktdccomen1X0A5909hktdc-researchMake-in-India-The-Gujarat-Production-Base-Opportunity
httpsinternationalgapinccomgapinenstore-locator
httpwwwhmcominstore-locator
APPAREL AND FOOTWEAR IN INDIA Euromonitor International March 2016
Page 7
Gujarat - Competitive AdvantageHigh raw material (cotton) availability
Gujarat Government initiatives
Three textile SEZs
in Ahmedabad were approved in 2014 with investment of ~INR5 billion
Two composite centers
to be established by 2019 in Ahmedabad and Surat
One CoE (Centre of Excellence)
in Gujarat will be developed by NTC (National Textile Corporation)
7 interest subsidy
on new plants and machinery for a period of 5 years for HVG and made-ups
33 of the cotton produced in India comes
from Gujarat
Surendranagar Jamnagar Rajkot
Bhavnagar and Amreli are the main cotton
producing districts
Cotton production is also supported by its
climatic and geographical conditions as the
state has black soil mixed with lime and
potash and ~50 cm rainfall that are optimum
for cotton cultivation
Also 57 of the cotton cultivations are
irrigated in Gujarat reducing dependence on
monsoons
98 103119
90
117
FY10 FY11 FY12 FY13 FY14
Cotton production in Gujarat (million bales)
As a of total production
in India
32 30 32 25 30
Surat Apparel Park
has been converted into a SEZ
Source
Cotton Corporation of India
International Journal of Research in Engineering IT and Social Sciences
ldquoTextile Sector Indiardquo EMIS (December 2015) accessed via EMIS database
ldquoTextiles And Apparelrdquo IBEF (January 2016) accessed via wwwibeforgdownloadTextiles-and-Apparel-January-2016pdf
ldquoVibrant Gujarat Manufacturing Sector Profilerdquo (October 2014) accessed via wwwvibrantgujaratcomwritereaddataimagespdfManufacturing-
Sector-Profilepdf
httpwwwinduseduorgpdfsIJREISSIJREISS_349_97270pdf
httpwwwvibrantgujaratcomwritereaddataimagespdfManufacturing-Sector-Profilepdf
httpwwwbusiness-standardcomarticleeconomy-policysurat-apparel-park-to-become-a-special-economic-zone-103122301077_1html
httpwwwnarendramodiingujarat-unveils-E28098navi-gujarat-vastranitiE28099-gujarat-textile-policy-2012-4720
~US$328 billion
Investment in the textile industry by 2020 creating 1 million jobs
Gujarat is home to several leading institutions in textile fashion and design such as
National Institute of Fashion Technology (Gadhinagar) the campus at Gandhinagar inaugurated in 2004 is designed to meet the demands of imparting creative education NIFT offers a variety of courses including BDes In Fashion Design Accessory Design Textile Design and Fashion Communication NIFT also offers a BFTechin Apparel Production
National Institute of Design NID was established in 1961 and has been a centrefor design education practice and research since NID offers professional education programmes at Bachelors and Masters level with five faculty streams and 20 diverse design domains
Ahmedabad Textile Industryrsquos Research Association Established in 1947 and starting in 1949 ATIRA is an autonomous non-profit association which is involved in textile research
Textile and Fashion Institutes
Page 8
Gujarat - Competitive Advantage
Textile hubs in Gujarat
Kutch ndash Textile
Handicrafts
Surendranagar
Manavadar
and Gondal ndash
Cotton ginning
Saurashtra ndash Hand printing
and processing
Ahmedabadndash
Denims
Ankaleshwar ndash
Technical
TextilesSurat ndash Silk city
Large number of textile hubs in Gujarat
High availability of skilled manpower for the textile sector
Gujarat has 28 Industrial Training Institutes
(ITIs) that offer industrial training courses on
Textile and Garment industry with an intake
of ~6000 students per year
These institutes offers specialized courses
in computer-aided dress making and dress
design pattern making and needle work
The government also provides assistance
and training to apparel training institutions
and the power loom sector
The margins of productivity of the garments
is lower due to which it becomes a natural
choice of the industry to target HVG market
in Gujarat
Gujarat has an established textile sector
with more than 1500 medium and large
textile units and 18 textile-related product
clusters
Large number of textile units are attributable
to high availability of raw materials with
Gujarat being the largest producer of cotton
in the country (production of ~12 million
bales in FY14)
Going forward the state plans to
significantly increase its textile production
capacity from the current level of ~50000
weaving looms
~50 of Indias art silk fabric is produced in
Surat alone
Gujarat is the largest producer of denim in
India (65) and the third largest in the world
Location of major educational institutions
Gandhinagar
Ahmedabad
Rajkot
Bhavnagar
Vadodara
Surat
Source
ldquoBaseline survey of the Technical Textile industry in Indiardquo Office of the Textile Commissioner 29 March 2016
ldquoManufacturing Sector ndash Profilerdquo Vibrant Gujarat website 7 October 2014
ldquoGujarat ndash Growth and Prosperity for Allrdquo Vibrant Gujarat website 25 August 2014
Page 9
Project Information
High Value Garment Processes
The High Value Garment process begins after the processing stage in the garmentapparel
production where the design and prototype of the designs are prepared and with the use of highly
sophisticated machinery and skilled manpower the final garments are produced
At this stage of garment apparel production ndash various types of value additions are done to give
the garments the high quality and aesthetic value along with branding
Source Textiles and Apparel IBEF Janurary 2016 (wwwibeforg)
lsquoValue Addition in Garment Industryrsquo Nishok TSR PSG Polytechnic College
Value addition for HVG
At the stages of processing and garment production value addition is done to finally make textiles
High Value Garments
Value addition of various types are done to provide the finished product with greater aesthetic
value and brand identity The value additions will also ensure increase the demand for high value
product with superior quality
The types of value additions are
Finishing ndash Mechanical and Chemical finishing
Printing ndash All over print chest print
Special processes ndash Tie and Dye Batiks Quilting
Closures ndash Button Zippers Velcro hooks and loops
Embroidery ndash Hand and Machine Embroidery
Raw Material
Cotton
Jute
Silk
Wool
Cashmere
Chiffon
Modal
Lycra
Tulle
Organza
Stretch Knits
Processing
Ginning ndash Fiber
Spinning ndash Yarn
WeavingKnitting
ndash Fabric
Processing ndash
Processed Fabric
GarmentApparel
Production
Final Garment
apparel
Value Addition
Fabric
Finishing
Printing
Special
Processes
Closure
Embroidery
Quality Check
Page 10
Project Information
Raw Materials for HVG
Silk
India is the second largest silk
producer in the world
contributing to ~18 of the total
global production It has the
distinction of all producing all 4
varieties of silk
In India some of the major silk
centres include Kanchivaram
Varansi and Bangalore
In Gujarat silk can be sourced
from major silk centres of Surat
and Cambay
In the High Value Garment segment which includes fashion and designer clothing silk satin and
cashmere are the three most commonly used fabrics
Raw materials used in High Value Garments are both sourced domestically and imported Some
of the imported and Indian fabrics used are cashmere satin Chiffon Tulle Organza Lycra Silk
and various other stretch knits
Satin
Satin although usually
classified in the same
category as silk has a few
distinctive features Satin
is more shiny compared
to silk and usually
incorporates some kind of
silk fabric into it but has a
dull back
Satin can be sourced
from major silk centres of
Surat as well
Cashmere
Cashmere is known for its long
lasting comfort and unbelievably
soft appearance
Designers around the world have
used this material Some of the
designer to use cashmere in their
fashion lines include ndash Kenneth
Cole Micheal Kors and Christian
Dior
India is a leading producer of this
material and can be sourced
locally
Supplier Name Key products Nearest Location
Usha International Sewing machinesSurat Gujarathttpwwwushacom
Meera Machine Tools Overlock machines Surat Gujarat
Super Sonic Impex Sewing machine motor Surat Gujarat
Juki India Private LtdIndustrial Sewing Machines hi-
tech sewing machinesAhmedabad Gujarat
Hi-tech Machines
Fusing Machines Collar Cutting
Machines Embossing Machines
Embroidery backup film
Removing Machine Lable or
Heat Transfer Machines
New Delhi
List of Machinery in India
Key Manufacturers in India
Arvind Limited
Levirsquos Strauss India Pvt
LtdAlok Industries
Madura Fashion amp Lifestyle Benetton India Pvt Ltd
Page 11
Potential collaboration opportunities
Source
iNDEXTb
ldquoDivisionsrdquo Arvind Limited website httpwwwarvindcomdivisionthearvindstorehtmMenuTab1
ldquoAbout usrdquo Madura Fashion amp Lifestyle website httpwwwmadurafnlcomabout_usabout_ushtml
httpwwwalokindcom
ldquoAbout usrdquo Lifestyle International website httpwwwlifestylestorescomaboutusphp
ldquoIndustry profile Apparel retail in Indiardquo Marketline May 2015 via ThomsonOne
rdquoOverviewrdquo Future Retail website httpfutureretailcoinabout-usoverview-retailhtml
ldquoBusiness Overviewrdquo Future Lifestyle website httpfuturelifestyleinbusiness_overviewhtml
ldquoRaymond Apparel Ltdrdquo Raymond India website httpwwwraymondindiacomgrp_ralaspVZpsNU0w8iQ
ldquoCorporaterdquo Shoppers Stop website httpcorporateshoppersstopcom
ldquoQuarterly Performance March 2015rdquo Shoppers Stop website httpcorporateshoppersstopcomuploaded_filesb602138-63dfpdf
ldquoAbout usrdquo Westside website httpswwwmywestsidecomWebPagesInnerPagesaboutusaspx
ldquoAbout usrdquo Pantaloons website httppantaloonscomcompanyabout-usoverview
Project Information
Key Considerations
Since this is a niche segment in the textile value chain high skill work force is essential
Institutes that offer specialized courses in computer-aided dress making and dress design
pattern making and needle work are to be promoted
Rising fashion trends amongst urban women increases the demand for knitted swimwear
sportswear sport-inspired footwear and yoga pants
HVG manufacturers can collaborate with
Machinery and raw material suppliers
Domestic and international apparel retail brands
Organization such as Gujarat Garment Manufacturers Association Ahmedabad Textile Mills Association South Gujarat Textile Processors Association which work towards the development of textile and garment industry in Gujarat
Institutions such as National Institute of Fashion Technology for the skill development of employees
Page 12
Project Information
Existing Textile Parks
1 MS Dholi Integrated Spinning Park Ltd Ahmedabad
2 Ms Karanj Textile Park Pvt Ltd Surat
3 Palsana Textile Park Pvt Ltd Surat
4 Dholka Textile Park Pvt Ltd Surat
5 Arvind Garments Park Pvt Ltd Ahmedabad
6 Ms Shalon Textile Park Pvt Ltd Surat
7 MS Jayraj Textile Park Pvt Ltd Surat
8 MS Shanti Integrated Textile Park Pvt Ltd
9 MS Giriraj Developers Surat
10 Rajhans Infracon (India) Pvt Ltd Surat
11 The Surat Vankar Sahakari Sangh Ltd Surat
12 Sanika Industrial Techno Park Surat
13 Ekta Enterprise Platinum Textile park Surat
14 NSP Infrastructure Pvt Ltd Surat
15 D D Spintex Park Pvt Ltd Bharuch
16 Gaytri Cotspin Park PPL Bharuch
S
No
Name of the Industrial Park Location Taluka District
1 Makson SEZ Pvt LTdOlak Chharad
Derwada MalikaLakhtar Surendranagar
2Madhukar Infrastructure Developers Pvt
Ltd
Jansali
BalolLimbdi Surendranagar
3 Satyesh infrastructures LLP Janiyadra narnavi Vagra Bharuch
4 Bhadresh Trading Corporation Ltd Varnora Zinkadi
PaiyaBhuj Kutch
5 B T C Cashkot Ind Ltd Bhuvad Anjar Kutch
6 Eco Green Industrial Park Pvt LTd Kharchi- Bhilwada Jhagadia Bharuch
7 Adharbhut Industrial Park Pvt LtdKava Madafar
Panchpipla VadJambusar Bharuch
8 Ample Industrial Park Pvt Ltd Vad Jantran Jambusar Bharuch
9 Damanganga Industrial Park Karvad Dungara Pardi Valsad
10 Green Field Industrial Park Pvt Ltd Kharchi- Bhilwada Jhagadia Bharuch
11 Ms Ratanakar Estate Developer Por Vadodara Vadodara
12 Ms Welspun Anjar SEZ Limited Varsamedi Anjar Kutchh
13 Ms Ratanakar Estate Developer Por Vadodara Vadodara
The Proposed Unit can be
developed anywhere in Gujarat
The preferred location for the
proposed unit would be in the
existing proposed parks or in the
vicinity of these parks in order to
have direct access to the eco
system
Proposed Upcoming Textile Parks
Page 13
Project Information
Proposed
The Mumbai-Ahmedabad bullet train project
will have Surat as one of the stations
In 2016 the Gujarat government assigned
Delhi Metro Rail Corporation as a consultant
for the proposed metro connectivity in Surat
Rail connectivity was proposed for Hazira and
Nargol ports in the 2016 rail budget
Proposed
Proposed four-lane highways which are
expected to improve connectivity in Surat
include ndash Dakor-Savli Vadodara-Dabhoi amp
Surat-Olpad-Bardoli
Proposed
In January 2015 Airports Authority of India
gave an in-principle approval for cargo
terminal at Surat airport worth INR70 million
The terminal is expected to be operational in
2017
In February 2016 Surat Airport Action
Committee filed an online petition for an
international airport at Surat
The nearest port is Hazira which is 25 km
from Surat
Additionally Hazira port is well connected
to Mundra port and Jawaharlal Nehru Port
Trust (JNPT) ndash Indiarsquos largest container
port
Thus it provides a convenient textiles-
related trade gateway to International
(Europe Africa America and the Middle
East) and domestic markets
Surat domestic airport is well connected to
various parts of the country The city is
located ~275 kms from the international
airport at Ahmedabad
Surat is connected with other districts of the
state such as Rajkot Vadodara and
Ahmedabad by rail
Hazira port in Surat is ~16 km away from the
Surat railway station
The city is connected to Delhi Mumbai
Industrial Corridor (DMIC) which links
Ahmedabad Vadodara and Surat
Proximity to NH-8 and NH-6 further
enhances connectivity in the city
Surat also has very good connectivity with
other cities of the state such as Vadodara
(154 km) and Ahmedabad (265 km)
Logistics amp Connectivity
Water for industrial purposes can be obtained
from four sources viz Gujarat Water Supply
and Sewerage Board (GWSSB) an irrigation
canal dams and surface reservoirs
The main source for the power supply is Torrent Power Limited in Surat
Power
Rail Road
Air Port
Water
Utility
Source
httpwwwfirstpostcominvestingfive-most-promising-indian-tier-ii-cities-you-should-invest-in-2796296html
httpdeshgujaratcom20150325clearances-by-july-works-for-nargol-port-to-start-next-yeargog
httptimesofindiaindiatimescomcitysuratMulti-mode-transportation-hub-soon-at-Surat-railway-stationarticleshow52095198cms
Page 14
Project Financials
Cost of setting up unit producing High Value Gents Shirts
and Trousers at Surat Apparel Park The proposed unit will have a
production capacity of 90000 Gents Shirts and Gents Trousers per month The quality of the
garments mainly depends on quality of fabric used Standards such as IS12675 IS4039 and
IS10194 will be complied with at the plant
Project cost
Project components amp specifications Cost (INR lakh)
Land (800 sq mtr)
Rate (INR 1500 per sq mtr as of May 2016)1
1200
Building Area (375 sq m) (built up) ( 3000 per sft) 1009
Factory Shed ndash 250 sq mt
Store (Raw Material) ndash 100 sq mt
Store (Finished Goods) ndash 75 sq mt
Land amp Building Component 1129
Machinery amp Equipment 250 ndash 27
Other Fixed Assets 30 ndash 50
Machinery 28 ndash 30
Total Capital Cost 140 - 143
Working Capital (Per Month)
Staff and Labor 2
Raw Material and Utilities 33
Total Recurring cost 35
Total Capital Investment
Machinery amp Equipment 28
Working capital for 3 months 105
Total Capital Investment 133
Source Project Profile on Gents Shirts and Trousers MSME ndash Development Institute Ministry of MSME GoI
Page 15
Project Financials
Source Project Profile on Gents Shirts and Trousers MSME ndash Development Institute Ministry of MSME GoI
Manager 1
Sales Representative 1
Accounts Officer 1
Production Manager 1
Cutting Master 1
Skilled Workers 55
Pressman 4
Unskilled workers 6
Manpower requirement in the proposed HVG manufacturing unit
Equipment Qty
Single Needle Lock Stitch Machine with motor 50
6rdquo Power driven cloth cutting machine 1
2 needle overlock safety stitching machine with trimmer 1
Double Needle Lock Stitch Machine 2
Button Hole Making Machine 1
Button Stitching Machine 1
Hot Fusing Press 1
Garment Washing Machine 1
Hydro extractor 25 kg capacity 1
Tumbler Dryer 25 kg capacity 1
Flat Bed Steam Iron Press with Vacuum Table 4
Zig Zag Embroidery Machine 1
Generator Set 30 KVA 1
Wash Room Trolleys 4
Machinery and Equipment
Page 16
Approvals amp Incentives
5 interest subsidy on bank loans for five years
for those who establish new plants for value
addition chain like ginning processing
weaving knitting and machine carpeting
7 interest subsidy on new plant and
machinery for five years for cotton spinning
garment manufacturing and technology up
gradation
Refund of value added tax (VAT) on expansion
of new units in spinning and power tariff
concession to cotton spinning and weaving
units
Financial assistance for skill development
centres for technology acquisition and also for
supporting energy and water conservation as
well as for environmental compliance
Incentives from Government of Gujarat
Under the Technology Upgradation Fund Scheme (TUFS) the GoI is offering 5 credit linked
interest subsidy on purchase of textile machinery
In 2016 the government also approved an amended technology upgradation funds scheme
(ATUFS) where the GoI has made a fresh allocation of INR515 billion as one time capital
subsidy for new investment apart from allocated budget of INR338 billion for limited liability
Through the ATUFS the GoI aims to attract an investment of INR1000 billion by 2018
Scheme for Integrated Textile Parks (SITP) 40 capital subsidy to a maximum of INR40 crore on
total project cost on projects approved by government Also 100 FDI allowed for textile sector
Incentives from Government of India (GoI)
For approvals the project report should be submitted to respective District Industries Centres
(DICs) DIC will forward the proposal to Industries Commissioner who will submit the report to
State Level Approver Committee (SLAC) for final approval
The basic custom duty on imported technical textile machinery has been reduced from 10 to 5
and support to start-ups is also provided
68 76 100400
1340
3900
FY11 FY12 FY13 FY14 FY15 FY16
Incentives to Textile and Apparel Sector from the Government of
Gujarat (INR million)
CAGR
125
During FY16 incentives provided
increased ~3 times y-o-y and are
expected to rise further
Approvals
Source
ldquoGujarat Textile Policyrdquo Industries and Mines Department Government of Gujarat 5 September 2012
ldquoManufacturing Sector ndash Profilerdquo Vibrant Gujarat website 7 October 2014
Industries Commissionerate website httpicgujaratgovinpage_id=3175 accessed on 1 June 2016
ldquoTextile industry welcomes amended TUFSrdquo Business Standard 2 January 2016
httpwwwbusiness-standardcomarticleeconomy-policyduty-drawback-sops-to-incentivise-high-value-garment-exports-116081800720_1html
GoI has increased the duty drawback of 32 to 47 (depending on the category) for exports of
non-fabric inputs made from imported fabrics to incentivize high value garment (HVG) exports
Office of The Industries Commissionerate
Block No 1 2nd Floor Udyog Bhavan
Gandhinagar 382 010 Gujarat
Ph 2325268323252617
Email ID iccordgujaratgovin
This project profile is based on preliminary study to facilitate prospective entrepreneurs to assess a prima facie scope
It is however advisable to get a detailed feasibility study prepared before taking a final investment decision
Gujarat Industrial Development Corporation
Industries amp Mines Department
Office of Industries Commissioner
wwwgidcgovin
wwwimd-gujaratgovin
wwwicgujaratgovin
Industrial Extension Bureau
wwwindextbcom
httptechnotexgovin
Ministry of Textiles Government of India
Controllerate of Quality Assurance (Textiles and Clothing)
wwwdgqadefencegovin
Page 3
Project Concept
What are High Value Garments
High-value Garments (HVG) are an important segment in the textile market Through the process
of higher value addition to garments garment manufacturers are able to they are converted into
finished products which has increased aesthetic look without compromising the quality of the
product
The key advantage of these garments is the high price uniqueness attractiveness and focusing a
business more closely on its targeted market segments
Additionally the higher value addition increases market demand along with increased value and
price for the garments
Segmentation of High Value Garments
Womenrsquos wear Childrenrsquos wearMenrsquos wear
Casual WearFormal Wear Traditional Wear Essentials
Uniforms
Active
Sportswear
Baby clothing Toddler clothing
Sources
httpsbooksgooglecoinbooksid=rloiBQAAQBAJamppg=PA188amplpg=PA188ampdq=22high+value+garments22ampsource=blampots=1d2YKTISHJampsi
g=eiDlOoKjt2Y2jE2E8PYnjdpVMDQamphl=enampsa=Xampredir_esc=yv=onepageampq=22high20value20garments22ampf=false
Project Overview
Unisex
Users of HVG
Segmentation of HVG by Use
Tulle OrganzaChiffon Lycra
Imported and Indian Fabrics Used in HVG
Modals Other Stretch KnitsSilk
The proposed project involves setting up of a facility to manufacture High Value Garments
namely Ready Made Garments Handlooms etc at Surat Apparel Park Surat
The proposed unit will use sophisticated machinery raw materials and value added services such
as finishing printing closure embroidery and special processes to produce garments of high
value
Total cost of setting up of the proposed unit is estimated to be INR 133 crore which includes the
cost for land and building along with machinery and equipment for the facility
Page 4
Project Concept
Value Addition Processes
Manufacturers of High Value Garments use several technique as part of the value addition process
some of the techniques are
Fabric Value Additions
Crushing Fabric
Methods such as trimming
fibers using patterned rolls
treating with hot fluids
using heated drums etc
are followed to create
designs or sculpted effects
on the fabric
Fabric Crinkling
Fabric crinkling is a unique
and attractive look to the
fabric
Crinkling can be done for ndash
ladies garment industries
kids garment industry
shawls amp Scarfs industry
Rope WrinkleLong
CrushRope Crushing
Rope Crush process is
where the fabric is wrinkled
in such a way that the
effect is long term and the
width of the fabric is
lessened
Textile Embossing
Embossing is a technique in which images
and patterns are created on the surface of a
product through the application of heat and
pressure
Embossing is a natural and elegant process
which changes the nature of the material on
which it is done
Foil Printing Fabric
Foil printing is the process of printing a pattern
on fabric using foil in order to create a shiny
effect on the fabric
There are two types of foil printing methods
first pattern is printed by glue on the fabric
and then pressed with foil paper by a hot
steel roller The second method is printing on
the foil paper first and then press the foil on
the fabric with hot steel roller or iron
Other Value Additions
Finishing
Mechanical Finishing
Chemical Finishing
Printing
All over Print
Chest Print
Special Processes
Tie and Dye
Batiks
Quilting
Closures
Buttons
Zippers
Velcro
Hooks
Loops
Embroidery
Hand Embroidery
Machine Embroidery
Source httpwwwindiamartcommaruti-processorsprofile1html
Page 5
Market Potential
Global Market
428580
770
2013 2018F 2023F
Global apparel market size (US$ billion)
Currently US-based athleisure- and lifestyle brand
Nike is the largest fashion company worldwide with
revenues amounting to USD 306 billion
Spanish fast-fashion giant Inditex is the second
largest fashion company worldwide with luxury
brands such as Zara Pull amp Bear and Stradivarious
in its portfolio
Other luxury brand giants include LVMH (French)
TJX (US) HampM (Swedish)
41
64
102
2013 2018F 2023F
Indian domestic apparel market size
(US$ billion)
The Indian Designer wear Industry according to a
recent study by ASSOCHAM is growing at a CAGR of
about 40 The report estimates that the Indian
Designer wear industry is likely to cross the INR 11000
crore mark by 2020
The Designer industry currently pegged at INR 720
crores is seeing a growing popularity of boutiques
selling designer local wear showcasing finished and
ready-to-stitch garments and trendy dresses
Apparel segmentrsquos growth is supported by a robust
growth in the organized apparel segment and entry of
players such as HampM Zara and Marks amp Spencer
Domestic Market
According to the Secretary General (ASSOCHAM) ldquoCurrently Indiarsquos share in the global designer
wear industry is a minimal 032 but is likely to reach about 17 by 2020rdquo
The fashion industry in India is still budding and therefore provides ample opportunity for artistic
hard-working and enthusiastic persons
Gujarat has developed opportunities towards higher value addition product by setting up modern
process houses and knitwearready-made garments plants to fulfil the domestic and international
market demand
Indiarsquos per capita spend on apparel was US$37 in 2013 which was lowest among the above
mentioned countries However per capita spend on apparel is expected to reach US$129 in 2025
growing at a CAGR of 11 form 2013-2025
Source
EMIS UN Comtrade Technopak
FICCI Knowledge Paper on Driving growth through innovation
ldquoTextile Sector Indiardquo EMIS (December 2015) accessed via EMIS
database
httpwwwinduseduorgpdfsIJREISSIJREISS_349_97270pdf
ldquoTextiles And Apparelrdquo IBEF (January 2016) accessed via
wwwibeforgdownloadTextiles-and-Apparel-January-2016pdf
httpwwwalokindcomDownloadsIndian20Textile20Trade20-
Golden20Period-20March202012pdf
httpretailfranchiseindiacomarticlesector-watchfashionDesigner-
wear-industry-growing-big-in-Indiaa1323
Page 6
Growth Drivers
Scheme for Integrated Textile Parks (SITP) implemented by
GoI facilitates setting up of textile units
Government of Gujarat has introduced lsquoFarm-Factory-Fabric-
Fashion-Foreignrsquo Textile Policy to strengthen the entire textile
value-chain
Special incentive of 6 interest subsidy has been extended for
promotion of technical textiles in Gujarat
Multi-brand apparel stores such as Lifestyle Shoppers Stop
and Westside have witnessed aggressive expansion over the
past decade and this trend is likely to continue
Indian and international brands have leveraged this channel to
capture a larger customer base sourcing fabricsgarments
manufactured in India
Increased role of
organized retail
Favorable government
initiatives
100 FDI in single brand retailing has led to an increase in the
entry of top global apparel brands in India
HampM and Gap entered India in 2015 and plan to expand their
stores to 50 and 40 respectively by 2020
Aeacuteropostale also entered India in 2015 and has tied up with
Arvind Lifestyle
Entry of global apparel
brands
Rising fitness trend amongst urban women has lead to
increased demand for HVG such as knitted swimwear
sportswear sport-inspired footwear and yoga pants
Manufacturers are expected to launch products focused on
urban women with benefits such as flexibility ease of washing
light weight and hygiene
Rising fitness trend
Apparel and footwear retailing through internet registered a
growth of 86 in 2015 driven by the rapid penetration of
smartphones in India
In 2015 smartphones volume grew by 24 in India and the
total number of internet users reached 350 million
Global brands such as Topshop Topman and Dogo have taken
online route for entry in India
Growth in internet
retailing
Source
httpwwwindiantextilejournalcomNewsaspxnId=cNSCIBwYQQrSOO9tL1GtUg==
httpwwwmakeinindiacomhome
httphkmbhktdccomen1X0A5909hktdc-researchMake-in-India-The-Gujarat-Production-Base-Opportunity
httpsinternationalgapinccomgapinenstore-locator
httpwwwhmcominstore-locator
APPAREL AND FOOTWEAR IN INDIA Euromonitor International March 2016
Page 7
Gujarat - Competitive AdvantageHigh raw material (cotton) availability
Gujarat Government initiatives
Three textile SEZs
in Ahmedabad were approved in 2014 with investment of ~INR5 billion
Two composite centers
to be established by 2019 in Ahmedabad and Surat
One CoE (Centre of Excellence)
in Gujarat will be developed by NTC (National Textile Corporation)
7 interest subsidy
on new plants and machinery for a period of 5 years for HVG and made-ups
33 of the cotton produced in India comes
from Gujarat
Surendranagar Jamnagar Rajkot
Bhavnagar and Amreli are the main cotton
producing districts
Cotton production is also supported by its
climatic and geographical conditions as the
state has black soil mixed with lime and
potash and ~50 cm rainfall that are optimum
for cotton cultivation
Also 57 of the cotton cultivations are
irrigated in Gujarat reducing dependence on
monsoons
98 103119
90
117
FY10 FY11 FY12 FY13 FY14
Cotton production in Gujarat (million bales)
As a of total production
in India
32 30 32 25 30
Surat Apparel Park
has been converted into a SEZ
Source
Cotton Corporation of India
International Journal of Research in Engineering IT and Social Sciences
ldquoTextile Sector Indiardquo EMIS (December 2015) accessed via EMIS database
ldquoTextiles And Apparelrdquo IBEF (January 2016) accessed via wwwibeforgdownloadTextiles-and-Apparel-January-2016pdf
ldquoVibrant Gujarat Manufacturing Sector Profilerdquo (October 2014) accessed via wwwvibrantgujaratcomwritereaddataimagespdfManufacturing-
Sector-Profilepdf
httpwwwinduseduorgpdfsIJREISSIJREISS_349_97270pdf
httpwwwvibrantgujaratcomwritereaddataimagespdfManufacturing-Sector-Profilepdf
httpwwwbusiness-standardcomarticleeconomy-policysurat-apparel-park-to-become-a-special-economic-zone-103122301077_1html
httpwwwnarendramodiingujarat-unveils-E28098navi-gujarat-vastranitiE28099-gujarat-textile-policy-2012-4720
~US$328 billion
Investment in the textile industry by 2020 creating 1 million jobs
Gujarat is home to several leading institutions in textile fashion and design such as
National Institute of Fashion Technology (Gadhinagar) the campus at Gandhinagar inaugurated in 2004 is designed to meet the demands of imparting creative education NIFT offers a variety of courses including BDes In Fashion Design Accessory Design Textile Design and Fashion Communication NIFT also offers a BFTechin Apparel Production
National Institute of Design NID was established in 1961 and has been a centrefor design education practice and research since NID offers professional education programmes at Bachelors and Masters level with five faculty streams and 20 diverse design domains
Ahmedabad Textile Industryrsquos Research Association Established in 1947 and starting in 1949 ATIRA is an autonomous non-profit association which is involved in textile research
Textile and Fashion Institutes
Page 8
Gujarat - Competitive Advantage
Textile hubs in Gujarat
Kutch ndash Textile
Handicrafts
Surendranagar
Manavadar
and Gondal ndash
Cotton ginning
Saurashtra ndash Hand printing
and processing
Ahmedabadndash
Denims
Ankaleshwar ndash
Technical
TextilesSurat ndash Silk city
Large number of textile hubs in Gujarat
High availability of skilled manpower for the textile sector
Gujarat has 28 Industrial Training Institutes
(ITIs) that offer industrial training courses on
Textile and Garment industry with an intake
of ~6000 students per year
These institutes offers specialized courses
in computer-aided dress making and dress
design pattern making and needle work
The government also provides assistance
and training to apparel training institutions
and the power loom sector
The margins of productivity of the garments
is lower due to which it becomes a natural
choice of the industry to target HVG market
in Gujarat
Gujarat has an established textile sector
with more than 1500 medium and large
textile units and 18 textile-related product
clusters
Large number of textile units are attributable
to high availability of raw materials with
Gujarat being the largest producer of cotton
in the country (production of ~12 million
bales in FY14)
Going forward the state plans to
significantly increase its textile production
capacity from the current level of ~50000
weaving looms
~50 of Indias art silk fabric is produced in
Surat alone
Gujarat is the largest producer of denim in
India (65) and the third largest in the world
Location of major educational institutions
Gandhinagar
Ahmedabad
Rajkot
Bhavnagar
Vadodara
Surat
Source
ldquoBaseline survey of the Technical Textile industry in Indiardquo Office of the Textile Commissioner 29 March 2016
ldquoManufacturing Sector ndash Profilerdquo Vibrant Gujarat website 7 October 2014
ldquoGujarat ndash Growth and Prosperity for Allrdquo Vibrant Gujarat website 25 August 2014
Page 9
Project Information
High Value Garment Processes
The High Value Garment process begins after the processing stage in the garmentapparel
production where the design and prototype of the designs are prepared and with the use of highly
sophisticated machinery and skilled manpower the final garments are produced
At this stage of garment apparel production ndash various types of value additions are done to give
the garments the high quality and aesthetic value along with branding
Source Textiles and Apparel IBEF Janurary 2016 (wwwibeforg)
lsquoValue Addition in Garment Industryrsquo Nishok TSR PSG Polytechnic College
Value addition for HVG
At the stages of processing and garment production value addition is done to finally make textiles
High Value Garments
Value addition of various types are done to provide the finished product with greater aesthetic
value and brand identity The value additions will also ensure increase the demand for high value
product with superior quality
The types of value additions are
Finishing ndash Mechanical and Chemical finishing
Printing ndash All over print chest print
Special processes ndash Tie and Dye Batiks Quilting
Closures ndash Button Zippers Velcro hooks and loops
Embroidery ndash Hand and Machine Embroidery
Raw Material
Cotton
Jute
Silk
Wool
Cashmere
Chiffon
Modal
Lycra
Tulle
Organza
Stretch Knits
Processing
Ginning ndash Fiber
Spinning ndash Yarn
WeavingKnitting
ndash Fabric
Processing ndash
Processed Fabric
GarmentApparel
Production
Final Garment
apparel
Value Addition
Fabric
Finishing
Printing
Special
Processes
Closure
Embroidery
Quality Check
Page 10
Project Information
Raw Materials for HVG
Silk
India is the second largest silk
producer in the world
contributing to ~18 of the total
global production It has the
distinction of all producing all 4
varieties of silk
In India some of the major silk
centres include Kanchivaram
Varansi and Bangalore
In Gujarat silk can be sourced
from major silk centres of Surat
and Cambay
In the High Value Garment segment which includes fashion and designer clothing silk satin and
cashmere are the three most commonly used fabrics
Raw materials used in High Value Garments are both sourced domestically and imported Some
of the imported and Indian fabrics used are cashmere satin Chiffon Tulle Organza Lycra Silk
and various other stretch knits
Satin
Satin although usually
classified in the same
category as silk has a few
distinctive features Satin
is more shiny compared
to silk and usually
incorporates some kind of
silk fabric into it but has a
dull back
Satin can be sourced
from major silk centres of
Surat as well
Cashmere
Cashmere is known for its long
lasting comfort and unbelievably
soft appearance
Designers around the world have
used this material Some of the
designer to use cashmere in their
fashion lines include ndash Kenneth
Cole Micheal Kors and Christian
Dior
India is a leading producer of this
material and can be sourced
locally
Supplier Name Key products Nearest Location
Usha International Sewing machinesSurat Gujarathttpwwwushacom
Meera Machine Tools Overlock machines Surat Gujarat
Super Sonic Impex Sewing machine motor Surat Gujarat
Juki India Private LtdIndustrial Sewing Machines hi-
tech sewing machinesAhmedabad Gujarat
Hi-tech Machines
Fusing Machines Collar Cutting
Machines Embossing Machines
Embroidery backup film
Removing Machine Lable or
Heat Transfer Machines
New Delhi
List of Machinery in India
Key Manufacturers in India
Arvind Limited
Levirsquos Strauss India Pvt
LtdAlok Industries
Madura Fashion amp Lifestyle Benetton India Pvt Ltd
Page 11
Potential collaboration opportunities
Source
iNDEXTb
ldquoDivisionsrdquo Arvind Limited website httpwwwarvindcomdivisionthearvindstorehtmMenuTab1
ldquoAbout usrdquo Madura Fashion amp Lifestyle website httpwwwmadurafnlcomabout_usabout_ushtml
httpwwwalokindcom
ldquoAbout usrdquo Lifestyle International website httpwwwlifestylestorescomaboutusphp
ldquoIndustry profile Apparel retail in Indiardquo Marketline May 2015 via ThomsonOne
rdquoOverviewrdquo Future Retail website httpfutureretailcoinabout-usoverview-retailhtml
ldquoBusiness Overviewrdquo Future Lifestyle website httpfuturelifestyleinbusiness_overviewhtml
ldquoRaymond Apparel Ltdrdquo Raymond India website httpwwwraymondindiacomgrp_ralaspVZpsNU0w8iQ
ldquoCorporaterdquo Shoppers Stop website httpcorporateshoppersstopcom
ldquoQuarterly Performance March 2015rdquo Shoppers Stop website httpcorporateshoppersstopcomuploaded_filesb602138-63dfpdf
ldquoAbout usrdquo Westside website httpswwwmywestsidecomWebPagesInnerPagesaboutusaspx
ldquoAbout usrdquo Pantaloons website httppantaloonscomcompanyabout-usoverview
Project Information
Key Considerations
Since this is a niche segment in the textile value chain high skill work force is essential
Institutes that offer specialized courses in computer-aided dress making and dress design
pattern making and needle work are to be promoted
Rising fashion trends amongst urban women increases the demand for knitted swimwear
sportswear sport-inspired footwear and yoga pants
HVG manufacturers can collaborate with
Machinery and raw material suppliers
Domestic and international apparel retail brands
Organization such as Gujarat Garment Manufacturers Association Ahmedabad Textile Mills Association South Gujarat Textile Processors Association which work towards the development of textile and garment industry in Gujarat
Institutions such as National Institute of Fashion Technology for the skill development of employees
Page 12
Project Information
Existing Textile Parks
1 MS Dholi Integrated Spinning Park Ltd Ahmedabad
2 Ms Karanj Textile Park Pvt Ltd Surat
3 Palsana Textile Park Pvt Ltd Surat
4 Dholka Textile Park Pvt Ltd Surat
5 Arvind Garments Park Pvt Ltd Ahmedabad
6 Ms Shalon Textile Park Pvt Ltd Surat
7 MS Jayraj Textile Park Pvt Ltd Surat
8 MS Shanti Integrated Textile Park Pvt Ltd
9 MS Giriraj Developers Surat
10 Rajhans Infracon (India) Pvt Ltd Surat
11 The Surat Vankar Sahakari Sangh Ltd Surat
12 Sanika Industrial Techno Park Surat
13 Ekta Enterprise Platinum Textile park Surat
14 NSP Infrastructure Pvt Ltd Surat
15 D D Spintex Park Pvt Ltd Bharuch
16 Gaytri Cotspin Park PPL Bharuch
S
No
Name of the Industrial Park Location Taluka District
1 Makson SEZ Pvt LTdOlak Chharad
Derwada MalikaLakhtar Surendranagar
2Madhukar Infrastructure Developers Pvt
Ltd
Jansali
BalolLimbdi Surendranagar
3 Satyesh infrastructures LLP Janiyadra narnavi Vagra Bharuch
4 Bhadresh Trading Corporation Ltd Varnora Zinkadi
PaiyaBhuj Kutch
5 B T C Cashkot Ind Ltd Bhuvad Anjar Kutch
6 Eco Green Industrial Park Pvt LTd Kharchi- Bhilwada Jhagadia Bharuch
7 Adharbhut Industrial Park Pvt LtdKava Madafar
Panchpipla VadJambusar Bharuch
8 Ample Industrial Park Pvt Ltd Vad Jantran Jambusar Bharuch
9 Damanganga Industrial Park Karvad Dungara Pardi Valsad
10 Green Field Industrial Park Pvt Ltd Kharchi- Bhilwada Jhagadia Bharuch
11 Ms Ratanakar Estate Developer Por Vadodara Vadodara
12 Ms Welspun Anjar SEZ Limited Varsamedi Anjar Kutchh
13 Ms Ratanakar Estate Developer Por Vadodara Vadodara
The Proposed Unit can be
developed anywhere in Gujarat
The preferred location for the
proposed unit would be in the
existing proposed parks or in the
vicinity of these parks in order to
have direct access to the eco
system
Proposed Upcoming Textile Parks
Page 13
Project Information
Proposed
The Mumbai-Ahmedabad bullet train project
will have Surat as one of the stations
In 2016 the Gujarat government assigned
Delhi Metro Rail Corporation as a consultant
for the proposed metro connectivity in Surat
Rail connectivity was proposed for Hazira and
Nargol ports in the 2016 rail budget
Proposed
Proposed four-lane highways which are
expected to improve connectivity in Surat
include ndash Dakor-Savli Vadodara-Dabhoi amp
Surat-Olpad-Bardoli
Proposed
In January 2015 Airports Authority of India
gave an in-principle approval for cargo
terminal at Surat airport worth INR70 million
The terminal is expected to be operational in
2017
In February 2016 Surat Airport Action
Committee filed an online petition for an
international airport at Surat
The nearest port is Hazira which is 25 km
from Surat
Additionally Hazira port is well connected
to Mundra port and Jawaharlal Nehru Port
Trust (JNPT) ndash Indiarsquos largest container
port
Thus it provides a convenient textiles-
related trade gateway to International
(Europe Africa America and the Middle
East) and domestic markets
Surat domestic airport is well connected to
various parts of the country The city is
located ~275 kms from the international
airport at Ahmedabad
Surat is connected with other districts of the
state such as Rajkot Vadodara and
Ahmedabad by rail
Hazira port in Surat is ~16 km away from the
Surat railway station
The city is connected to Delhi Mumbai
Industrial Corridor (DMIC) which links
Ahmedabad Vadodara and Surat
Proximity to NH-8 and NH-6 further
enhances connectivity in the city
Surat also has very good connectivity with
other cities of the state such as Vadodara
(154 km) and Ahmedabad (265 km)
Logistics amp Connectivity
Water for industrial purposes can be obtained
from four sources viz Gujarat Water Supply
and Sewerage Board (GWSSB) an irrigation
canal dams and surface reservoirs
The main source for the power supply is Torrent Power Limited in Surat
Power
Rail Road
Air Port
Water
Utility
Source
httpwwwfirstpostcominvestingfive-most-promising-indian-tier-ii-cities-you-should-invest-in-2796296html
httpdeshgujaratcom20150325clearances-by-july-works-for-nargol-port-to-start-next-yeargog
httptimesofindiaindiatimescomcitysuratMulti-mode-transportation-hub-soon-at-Surat-railway-stationarticleshow52095198cms
Page 14
Project Financials
Cost of setting up unit producing High Value Gents Shirts
and Trousers at Surat Apparel Park The proposed unit will have a
production capacity of 90000 Gents Shirts and Gents Trousers per month The quality of the
garments mainly depends on quality of fabric used Standards such as IS12675 IS4039 and
IS10194 will be complied with at the plant
Project cost
Project components amp specifications Cost (INR lakh)
Land (800 sq mtr)
Rate (INR 1500 per sq mtr as of May 2016)1
1200
Building Area (375 sq m) (built up) ( 3000 per sft) 1009
Factory Shed ndash 250 sq mt
Store (Raw Material) ndash 100 sq mt
Store (Finished Goods) ndash 75 sq mt
Land amp Building Component 1129
Machinery amp Equipment 250 ndash 27
Other Fixed Assets 30 ndash 50
Machinery 28 ndash 30
Total Capital Cost 140 - 143
Working Capital (Per Month)
Staff and Labor 2
Raw Material and Utilities 33
Total Recurring cost 35
Total Capital Investment
Machinery amp Equipment 28
Working capital for 3 months 105
Total Capital Investment 133
Source Project Profile on Gents Shirts and Trousers MSME ndash Development Institute Ministry of MSME GoI
Page 15
Project Financials
Source Project Profile on Gents Shirts and Trousers MSME ndash Development Institute Ministry of MSME GoI
Manager 1
Sales Representative 1
Accounts Officer 1
Production Manager 1
Cutting Master 1
Skilled Workers 55
Pressman 4
Unskilled workers 6
Manpower requirement in the proposed HVG manufacturing unit
Equipment Qty
Single Needle Lock Stitch Machine with motor 50
6rdquo Power driven cloth cutting machine 1
2 needle overlock safety stitching machine with trimmer 1
Double Needle Lock Stitch Machine 2
Button Hole Making Machine 1
Button Stitching Machine 1
Hot Fusing Press 1
Garment Washing Machine 1
Hydro extractor 25 kg capacity 1
Tumbler Dryer 25 kg capacity 1
Flat Bed Steam Iron Press with Vacuum Table 4
Zig Zag Embroidery Machine 1
Generator Set 30 KVA 1
Wash Room Trolleys 4
Machinery and Equipment
Page 16
Approvals amp Incentives
5 interest subsidy on bank loans for five years
for those who establish new plants for value
addition chain like ginning processing
weaving knitting and machine carpeting
7 interest subsidy on new plant and
machinery for five years for cotton spinning
garment manufacturing and technology up
gradation
Refund of value added tax (VAT) on expansion
of new units in spinning and power tariff
concession to cotton spinning and weaving
units
Financial assistance for skill development
centres for technology acquisition and also for
supporting energy and water conservation as
well as for environmental compliance
Incentives from Government of Gujarat
Under the Technology Upgradation Fund Scheme (TUFS) the GoI is offering 5 credit linked
interest subsidy on purchase of textile machinery
In 2016 the government also approved an amended technology upgradation funds scheme
(ATUFS) where the GoI has made a fresh allocation of INR515 billion as one time capital
subsidy for new investment apart from allocated budget of INR338 billion for limited liability
Through the ATUFS the GoI aims to attract an investment of INR1000 billion by 2018
Scheme for Integrated Textile Parks (SITP) 40 capital subsidy to a maximum of INR40 crore on
total project cost on projects approved by government Also 100 FDI allowed for textile sector
Incentives from Government of India (GoI)
For approvals the project report should be submitted to respective District Industries Centres
(DICs) DIC will forward the proposal to Industries Commissioner who will submit the report to
State Level Approver Committee (SLAC) for final approval
The basic custom duty on imported technical textile machinery has been reduced from 10 to 5
and support to start-ups is also provided
68 76 100400
1340
3900
FY11 FY12 FY13 FY14 FY15 FY16
Incentives to Textile and Apparel Sector from the Government of
Gujarat (INR million)
CAGR
125
During FY16 incentives provided
increased ~3 times y-o-y and are
expected to rise further
Approvals
Source
ldquoGujarat Textile Policyrdquo Industries and Mines Department Government of Gujarat 5 September 2012
ldquoManufacturing Sector ndash Profilerdquo Vibrant Gujarat website 7 October 2014
Industries Commissionerate website httpicgujaratgovinpage_id=3175 accessed on 1 June 2016
ldquoTextile industry welcomes amended TUFSrdquo Business Standard 2 January 2016
httpwwwbusiness-standardcomarticleeconomy-policyduty-drawback-sops-to-incentivise-high-value-garment-exports-116081800720_1html
GoI has increased the duty drawback of 32 to 47 (depending on the category) for exports of
non-fabric inputs made from imported fabrics to incentivize high value garment (HVG) exports
Office of The Industries Commissionerate
Block No 1 2nd Floor Udyog Bhavan
Gandhinagar 382 010 Gujarat
Ph 2325268323252617
Email ID iccordgujaratgovin
This project profile is based on preliminary study to facilitate prospective entrepreneurs to assess a prima facie scope
It is however advisable to get a detailed feasibility study prepared before taking a final investment decision
Gujarat Industrial Development Corporation
Industries amp Mines Department
Office of Industries Commissioner
wwwgidcgovin
wwwimd-gujaratgovin
wwwicgujaratgovin
Industrial Extension Bureau
wwwindextbcom
httptechnotexgovin
Ministry of Textiles Government of India
Controllerate of Quality Assurance (Textiles and Clothing)
wwwdgqadefencegovin
Page 4
Project Concept
Value Addition Processes
Manufacturers of High Value Garments use several technique as part of the value addition process
some of the techniques are
Fabric Value Additions
Crushing Fabric
Methods such as trimming
fibers using patterned rolls
treating with hot fluids
using heated drums etc
are followed to create
designs or sculpted effects
on the fabric
Fabric Crinkling
Fabric crinkling is a unique
and attractive look to the
fabric
Crinkling can be done for ndash
ladies garment industries
kids garment industry
shawls amp Scarfs industry
Rope WrinkleLong
CrushRope Crushing
Rope Crush process is
where the fabric is wrinkled
in such a way that the
effect is long term and the
width of the fabric is
lessened
Textile Embossing
Embossing is a technique in which images
and patterns are created on the surface of a
product through the application of heat and
pressure
Embossing is a natural and elegant process
which changes the nature of the material on
which it is done
Foil Printing Fabric
Foil printing is the process of printing a pattern
on fabric using foil in order to create a shiny
effect on the fabric
There are two types of foil printing methods
first pattern is printed by glue on the fabric
and then pressed with foil paper by a hot
steel roller The second method is printing on
the foil paper first and then press the foil on
the fabric with hot steel roller or iron
Other Value Additions
Finishing
Mechanical Finishing
Chemical Finishing
Printing
All over Print
Chest Print
Special Processes
Tie and Dye
Batiks
Quilting
Closures
Buttons
Zippers
Velcro
Hooks
Loops
Embroidery
Hand Embroidery
Machine Embroidery
Source httpwwwindiamartcommaruti-processorsprofile1html
Page 5
Market Potential
Global Market
428580
770
2013 2018F 2023F
Global apparel market size (US$ billion)
Currently US-based athleisure- and lifestyle brand
Nike is the largest fashion company worldwide with
revenues amounting to USD 306 billion
Spanish fast-fashion giant Inditex is the second
largest fashion company worldwide with luxury
brands such as Zara Pull amp Bear and Stradivarious
in its portfolio
Other luxury brand giants include LVMH (French)
TJX (US) HampM (Swedish)
41
64
102
2013 2018F 2023F
Indian domestic apparel market size
(US$ billion)
The Indian Designer wear Industry according to a
recent study by ASSOCHAM is growing at a CAGR of
about 40 The report estimates that the Indian
Designer wear industry is likely to cross the INR 11000
crore mark by 2020
The Designer industry currently pegged at INR 720
crores is seeing a growing popularity of boutiques
selling designer local wear showcasing finished and
ready-to-stitch garments and trendy dresses
Apparel segmentrsquos growth is supported by a robust
growth in the organized apparel segment and entry of
players such as HampM Zara and Marks amp Spencer
Domestic Market
According to the Secretary General (ASSOCHAM) ldquoCurrently Indiarsquos share in the global designer
wear industry is a minimal 032 but is likely to reach about 17 by 2020rdquo
The fashion industry in India is still budding and therefore provides ample opportunity for artistic
hard-working and enthusiastic persons
Gujarat has developed opportunities towards higher value addition product by setting up modern
process houses and knitwearready-made garments plants to fulfil the domestic and international
market demand
Indiarsquos per capita spend on apparel was US$37 in 2013 which was lowest among the above
mentioned countries However per capita spend on apparel is expected to reach US$129 in 2025
growing at a CAGR of 11 form 2013-2025
Source
EMIS UN Comtrade Technopak
FICCI Knowledge Paper on Driving growth through innovation
ldquoTextile Sector Indiardquo EMIS (December 2015) accessed via EMIS
database
httpwwwinduseduorgpdfsIJREISSIJREISS_349_97270pdf
ldquoTextiles And Apparelrdquo IBEF (January 2016) accessed via
wwwibeforgdownloadTextiles-and-Apparel-January-2016pdf
httpwwwalokindcomDownloadsIndian20Textile20Trade20-
Golden20Period-20March202012pdf
httpretailfranchiseindiacomarticlesector-watchfashionDesigner-
wear-industry-growing-big-in-Indiaa1323
Page 6
Growth Drivers
Scheme for Integrated Textile Parks (SITP) implemented by
GoI facilitates setting up of textile units
Government of Gujarat has introduced lsquoFarm-Factory-Fabric-
Fashion-Foreignrsquo Textile Policy to strengthen the entire textile
value-chain
Special incentive of 6 interest subsidy has been extended for
promotion of technical textiles in Gujarat
Multi-brand apparel stores such as Lifestyle Shoppers Stop
and Westside have witnessed aggressive expansion over the
past decade and this trend is likely to continue
Indian and international brands have leveraged this channel to
capture a larger customer base sourcing fabricsgarments
manufactured in India
Increased role of
organized retail
Favorable government
initiatives
100 FDI in single brand retailing has led to an increase in the
entry of top global apparel brands in India
HampM and Gap entered India in 2015 and plan to expand their
stores to 50 and 40 respectively by 2020
Aeacuteropostale also entered India in 2015 and has tied up with
Arvind Lifestyle
Entry of global apparel
brands
Rising fitness trend amongst urban women has lead to
increased demand for HVG such as knitted swimwear
sportswear sport-inspired footwear and yoga pants
Manufacturers are expected to launch products focused on
urban women with benefits such as flexibility ease of washing
light weight and hygiene
Rising fitness trend
Apparel and footwear retailing through internet registered a
growth of 86 in 2015 driven by the rapid penetration of
smartphones in India
In 2015 smartphones volume grew by 24 in India and the
total number of internet users reached 350 million
Global brands such as Topshop Topman and Dogo have taken
online route for entry in India
Growth in internet
retailing
Source
httpwwwindiantextilejournalcomNewsaspxnId=cNSCIBwYQQrSOO9tL1GtUg==
httpwwwmakeinindiacomhome
httphkmbhktdccomen1X0A5909hktdc-researchMake-in-India-The-Gujarat-Production-Base-Opportunity
httpsinternationalgapinccomgapinenstore-locator
httpwwwhmcominstore-locator
APPAREL AND FOOTWEAR IN INDIA Euromonitor International March 2016
Page 7
Gujarat - Competitive AdvantageHigh raw material (cotton) availability
Gujarat Government initiatives
Three textile SEZs
in Ahmedabad were approved in 2014 with investment of ~INR5 billion
Two composite centers
to be established by 2019 in Ahmedabad and Surat
One CoE (Centre of Excellence)
in Gujarat will be developed by NTC (National Textile Corporation)
7 interest subsidy
on new plants and machinery for a period of 5 years for HVG and made-ups
33 of the cotton produced in India comes
from Gujarat
Surendranagar Jamnagar Rajkot
Bhavnagar and Amreli are the main cotton
producing districts
Cotton production is also supported by its
climatic and geographical conditions as the
state has black soil mixed with lime and
potash and ~50 cm rainfall that are optimum
for cotton cultivation
Also 57 of the cotton cultivations are
irrigated in Gujarat reducing dependence on
monsoons
98 103119
90
117
FY10 FY11 FY12 FY13 FY14
Cotton production in Gujarat (million bales)
As a of total production
in India
32 30 32 25 30
Surat Apparel Park
has been converted into a SEZ
Source
Cotton Corporation of India
International Journal of Research in Engineering IT and Social Sciences
ldquoTextile Sector Indiardquo EMIS (December 2015) accessed via EMIS database
ldquoTextiles And Apparelrdquo IBEF (January 2016) accessed via wwwibeforgdownloadTextiles-and-Apparel-January-2016pdf
ldquoVibrant Gujarat Manufacturing Sector Profilerdquo (October 2014) accessed via wwwvibrantgujaratcomwritereaddataimagespdfManufacturing-
Sector-Profilepdf
httpwwwinduseduorgpdfsIJREISSIJREISS_349_97270pdf
httpwwwvibrantgujaratcomwritereaddataimagespdfManufacturing-Sector-Profilepdf
httpwwwbusiness-standardcomarticleeconomy-policysurat-apparel-park-to-become-a-special-economic-zone-103122301077_1html
httpwwwnarendramodiingujarat-unveils-E28098navi-gujarat-vastranitiE28099-gujarat-textile-policy-2012-4720
~US$328 billion
Investment in the textile industry by 2020 creating 1 million jobs
Gujarat is home to several leading institutions in textile fashion and design such as
National Institute of Fashion Technology (Gadhinagar) the campus at Gandhinagar inaugurated in 2004 is designed to meet the demands of imparting creative education NIFT offers a variety of courses including BDes In Fashion Design Accessory Design Textile Design and Fashion Communication NIFT also offers a BFTechin Apparel Production
National Institute of Design NID was established in 1961 and has been a centrefor design education practice and research since NID offers professional education programmes at Bachelors and Masters level with five faculty streams and 20 diverse design domains
Ahmedabad Textile Industryrsquos Research Association Established in 1947 and starting in 1949 ATIRA is an autonomous non-profit association which is involved in textile research
Textile and Fashion Institutes
Page 8
Gujarat - Competitive Advantage
Textile hubs in Gujarat
Kutch ndash Textile
Handicrafts
Surendranagar
Manavadar
and Gondal ndash
Cotton ginning
Saurashtra ndash Hand printing
and processing
Ahmedabadndash
Denims
Ankaleshwar ndash
Technical
TextilesSurat ndash Silk city
Large number of textile hubs in Gujarat
High availability of skilled manpower for the textile sector
Gujarat has 28 Industrial Training Institutes
(ITIs) that offer industrial training courses on
Textile and Garment industry with an intake
of ~6000 students per year
These institutes offers specialized courses
in computer-aided dress making and dress
design pattern making and needle work
The government also provides assistance
and training to apparel training institutions
and the power loom sector
The margins of productivity of the garments
is lower due to which it becomes a natural
choice of the industry to target HVG market
in Gujarat
Gujarat has an established textile sector
with more than 1500 medium and large
textile units and 18 textile-related product
clusters
Large number of textile units are attributable
to high availability of raw materials with
Gujarat being the largest producer of cotton
in the country (production of ~12 million
bales in FY14)
Going forward the state plans to
significantly increase its textile production
capacity from the current level of ~50000
weaving looms
~50 of Indias art silk fabric is produced in
Surat alone
Gujarat is the largest producer of denim in
India (65) and the third largest in the world
Location of major educational institutions
Gandhinagar
Ahmedabad
Rajkot
Bhavnagar
Vadodara
Surat
Source
ldquoBaseline survey of the Technical Textile industry in Indiardquo Office of the Textile Commissioner 29 March 2016
ldquoManufacturing Sector ndash Profilerdquo Vibrant Gujarat website 7 October 2014
ldquoGujarat ndash Growth and Prosperity for Allrdquo Vibrant Gujarat website 25 August 2014
Page 9
Project Information
High Value Garment Processes
The High Value Garment process begins after the processing stage in the garmentapparel
production where the design and prototype of the designs are prepared and with the use of highly
sophisticated machinery and skilled manpower the final garments are produced
At this stage of garment apparel production ndash various types of value additions are done to give
the garments the high quality and aesthetic value along with branding
Source Textiles and Apparel IBEF Janurary 2016 (wwwibeforg)
lsquoValue Addition in Garment Industryrsquo Nishok TSR PSG Polytechnic College
Value addition for HVG
At the stages of processing and garment production value addition is done to finally make textiles
High Value Garments
Value addition of various types are done to provide the finished product with greater aesthetic
value and brand identity The value additions will also ensure increase the demand for high value
product with superior quality
The types of value additions are
Finishing ndash Mechanical and Chemical finishing
Printing ndash All over print chest print
Special processes ndash Tie and Dye Batiks Quilting
Closures ndash Button Zippers Velcro hooks and loops
Embroidery ndash Hand and Machine Embroidery
Raw Material
Cotton
Jute
Silk
Wool
Cashmere
Chiffon
Modal
Lycra
Tulle
Organza
Stretch Knits
Processing
Ginning ndash Fiber
Spinning ndash Yarn
WeavingKnitting
ndash Fabric
Processing ndash
Processed Fabric
GarmentApparel
Production
Final Garment
apparel
Value Addition
Fabric
Finishing
Printing
Special
Processes
Closure
Embroidery
Quality Check
Page 10
Project Information
Raw Materials for HVG
Silk
India is the second largest silk
producer in the world
contributing to ~18 of the total
global production It has the
distinction of all producing all 4
varieties of silk
In India some of the major silk
centres include Kanchivaram
Varansi and Bangalore
In Gujarat silk can be sourced
from major silk centres of Surat
and Cambay
In the High Value Garment segment which includes fashion and designer clothing silk satin and
cashmere are the three most commonly used fabrics
Raw materials used in High Value Garments are both sourced domestically and imported Some
of the imported and Indian fabrics used are cashmere satin Chiffon Tulle Organza Lycra Silk
and various other stretch knits
Satin
Satin although usually
classified in the same
category as silk has a few
distinctive features Satin
is more shiny compared
to silk and usually
incorporates some kind of
silk fabric into it but has a
dull back
Satin can be sourced
from major silk centres of
Surat as well
Cashmere
Cashmere is known for its long
lasting comfort and unbelievably
soft appearance
Designers around the world have
used this material Some of the
designer to use cashmere in their
fashion lines include ndash Kenneth
Cole Micheal Kors and Christian
Dior
India is a leading producer of this
material and can be sourced
locally
Supplier Name Key products Nearest Location
Usha International Sewing machinesSurat Gujarathttpwwwushacom
Meera Machine Tools Overlock machines Surat Gujarat
Super Sonic Impex Sewing machine motor Surat Gujarat
Juki India Private LtdIndustrial Sewing Machines hi-
tech sewing machinesAhmedabad Gujarat
Hi-tech Machines
Fusing Machines Collar Cutting
Machines Embossing Machines
Embroidery backup film
Removing Machine Lable or
Heat Transfer Machines
New Delhi
List of Machinery in India
Key Manufacturers in India
Arvind Limited
Levirsquos Strauss India Pvt
LtdAlok Industries
Madura Fashion amp Lifestyle Benetton India Pvt Ltd
Page 11
Potential collaboration opportunities
Source
iNDEXTb
ldquoDivisionsrdquo Arvind Limited website httpwwwarvindcomdivisionthearvindstorehtmMenuTab1
ldquoAbout usrdquo Madura Fashion amp Lifestyle website httpwwwmadurafnlcomabout_usabout_ushtml
httpwwwalokindcom
ldquoAbout usrdquo Lifestyle International website httpwwwlifestylestorescomaboutusphp
ldquoIndustry profile Apparel retail in Indiardquo Marketline May 2015 via ThomsonOne
rdquoOverviewrdquo Future Retail website httpfutureretailcoinabout-usoverview-retailhtml
ldquoBusiness Overviewrdquo Future Lifestyle website httpfuturelifestyleinbusiness_overviewhtml
ldquoRaymond Apparel Ltdrdquo Raymond India website httpwwwraymondindiacomgrp_ralaspVZpsNU0w8iQ
ldquoCorporaterdquo Shoppers Stop website httpcorporateshoppersstopcom
ldquoQuarterly Performance March 2015rdquo Shoppers Stop website httpcorporateshoppersstopcomuploaded_filesb602138-63dfpdf
ldquoAbout usrdquo Westside website httpswwwmywestsidecomWebPagesInnerPagesaboutusaspx
ldquoAbout usrdquo Pantaloons website httppantaloonscomcompanyabout-usoverview
Project Information
Key Considerations
Since this is a niche segment in the textile value chain high skill work force is essential
Institutes that offer specialized courses in computer-aided dress making and dress design
pattern making and needle work are to be promoted
Rising fashion trends amongst urban women increases the demand for knitted swimwear
sportswear sport-inspired footwear and yoga pants
HVG manufacturers can collaborate with
Machinery and raw material suppliers
Domestic and international apparel retail brands
Organization such as Gujarat Garment Manufacturers Association Ahmedabad Textile Mills Association South Gujarat Textile Processors Association which work towards the development of textile and garment industry in Gujarat
Institutions such as National Institute of Fashion Technology for the skill development of employees
Page 12
Project Information
Existing Textile Parks
1 MS Dholi Integrated Spinning Park Ltd Ahmedabad
2 Ms Karanj Textile Park Pvt Ltd Surat
3 Palsana Textile Park Pvt Ltd Surat
4 Dholka Textile Park Pvt Ltd Surat
5 Arvind Garments Park Pvt Ltd Ahmedabad
6 Ms Shalon Textile Park Pvt Ltd Surat
7 MS Jayraj Textile Park Pvt Ltd Surat
8 MS Shanti Integrated Textile Park Pvt Ltd
9 MS Giriraj Developers Surat
10 Rajhans Infracon (India) Pvt Ltd Surat
11 The Surat Vankar Sahakari Sangh Ltd Surat
12 Sanika Industrial Techno Park Surat
13 Ekta Enterprise Platinum Textile park Surat
14 NSP Infrastructure Pvt Ltd Surat
15 D D Spintex Park Pvt Ltd Bharuch
16 Gaytri Cotspin Park PPL Bharuch
S
No
Name of the Industrial Park Location Taluka District
1 Makson SEZ Pvt LTdOlak Chharad
Derwada MalikaLakhtar Surendranagar
2Madhukar Infrastructure Developers Pvt
Ltd
Jansali
BalolLimbdi Surendranagar
3 Satyesh infrastructures LLP Janiyadra narnavi Vagra Bharuch
4 Bhadresh Trading Corporation Ltd Varnora Zinkadi
PaiyaBhuj Kutch
5 B T C Cashkot Ind Ltd Bhuvad Anjar Kutch
6 Eco Green Industrial Park Pvt LTd Kharchi- Bhilwada Jhagadia Bharuch
7 Adharbhut Industrial Park Pvt LtdKava Madafar
Panchpipla VadJambusar Bharuch
8 Ample Industrial Park Pvt Ltd Vad Jantran Jambusar Bharuch
9 Damanganga Industrial Park Karvad Dungara Pardi Valsad
10 Green Field Industrial Park Pvt Ltd Kharchi- Bhilwada Jhagadia Bharuch
11 Ms Ratanakar Estate Developer Por Vadodara Vadodara
12 Ms Welspun Anjar SEZ Limited Varsamedi Anjar Kutchh
13 Ms Ratanakar Estate Developer Por Vadodara Vadodara
The Proposed Unit can be
developed anywhere in Gujarat
The preferred location for the
proposed unit would be in the
existing proposed parks or in the
vicinity of these parks in order to
have direct access to the eco
system
Proposed Upcoming Textile Parks
Page 13
Project Information
Proposed
The Mumbai-Ahmedabad bullet train project
will have Surat as one of the stations
In 2016 the Gujarat government assigned
Delhi Metro Rail Corporation as a consultant
for the proposed metro connectivity in Surat
Rail connectivity was proposed for Hazira and
Nargol ports in the 2016 rail budget
Proposed
Proposed four-lane highways which are
expected to improve connectivity in Surat
include ndash Dakor-Savli Vadodara-Dabhoi amp
Surat-Olpad-Bardoli
Proposed
In January 2015 Airports Authority of India
gave an in-principle approval for cargo
terminal at Surat airport worth INR70 million
The terminal is expected to be operational in
2017
In February 2016 Surat Airport Action
Committee filed an online petition for an
international airport at Surat
The nearest port is Hazira which is 25 km
from Surat
Additionally Hazira port is well connected
to Mundra port and Jawaharlal Nehru Port
Trust (JNPT) ndash Indiarsquos largest container
port
Thus it provides a convenient textiles-
related trade gateway to International
(Europe Africa America and the Middle
East) and domestic markets
Surat domestic airport is well connected to
various parts of the country The city is
located ~275 kms from the international
airport at Ahmedabad
Surat is connected with other districts of the
state such as Rajkot Vadodara and
Ahmedabad by rail
Hazira port in Surat is ~16 km away from the
Surat railway station
The city is connected to Delhi Mumbai
Industrial Corridor (DMIC) which links
Ahmedabad Vadodara and Surat
Proximity to NH-8 and NH-6 further
enhances connectivity in the city
Surat also has very good connectivity with
other cities of the state such as Vadodara
(154 km) and Ahmedabad (265 km)
Logistics amp Connectivity
Water for industrial purposes can be obtained
from four sources viz Gujarat Water Supply
and Sewerage Board (GWSSB) an irrigation
canal dams and surface reservoirs
The main source for the power supply is Torrent Power Limited in Surat
Power
Rail Road
Air Port
Water
Utility
Source
httpwwwfirstpostcominvestingfive-most-promising-indian-tier-ii-cities-you-should-invest-in-2796296html
httpdeshgujaratcom20150325clearances-by-july-works-for-nargol-port-to-start-next-yeargog
httptimesofindiaindiatimescomcitysuratMulti-mode-transportation-hub-soon-at-Surat-railway-stationarticleshow52095198cms
Page 14
Project Financials
Cost of setting up unit producing High Value Gents Shirts
and Trousers at Surat Apparel Park The proposed unit will have a
production capacity of 90000 Gents Shirts and Gents Trousers per month The quality of the
garments mainly depends on quality of fabric used Standards such as IS12675 IS4039 and
IS10194 will be complied with at the plant
Project cost
Project components amp specifications Cost (INR lakh)
Land (800 sq mtr)
Rate (INR 1500 per sq mtr as of May 2016)1
1200
Building Area (375 sq m) (built up) ( 3000 per sft) 1009
Factory Shed ndash 250 sq mt
Store (Raw Material) ndash 100 sq mt
Store (Finished Goods) ndash 75 sq mt
Land amp Building Component 1129
Machinery amp Equipment 250 ndash 27
Other Fixed Assets 30 ndash 50
Machinery 28 ndash 30
Total Capital Cost 140 - 143
Working Capital (Per Month)
Staff and Labor 2
Raw Material and Utilities 33
Total Recurring cost 35
Total Capital Investment
Machinery amp Equipment 28
Working capital for 3 months 105
Total Capital Investment 133
Source Project Profile on Gents Shirts and Trousers MSME ndash Development Institute Ministry of MSME GoI
Page 15
Project Financials
Source Project Profile on Gents Shirts and Trousers MSME ndash Development Institute Ministry of MSME GoI
Manager 1
Sales Representative 1
Accounts Officer 1
Production Manager 1
Cutting Master 1
Skilled Workers 55
Pressman 4
Unskilled workers 6
Manpower requirement in the proposed HVG manufacturing unit
Equipment Qty
Single Needle Lock Stitch Machine with motor 50
6rdquo Power driven cloth cutting machine 1
2 needle overlock safety stitching machine with trimmer 1
Double Needle Lock Stitch Machine 2
Button Hole Making Machine 1
Button Stitching Machine 1
Hot Fusing Press 1
Garment Washing Machine 1
Hydro extractor 25 kg capacity 1
Tumbler Dryer 25 kg capacity 1
Flat Bed Steam Iron Press with Vacuum Table 4
Zig Zag Embroidery Machine 1
Generator Set 30 KVA 1
Wash Room Trolleys 4
Machinery and Equipment
Page 16
Approvals amp Incentives
5 interest subsidy on bank loans for five years
for those who establish new plants for value
addition chain like ginning processing
weaving knitting and machine carpeting
7 interest subsidy on new plant and
machinery for five years for cotton spinning
garment manufacturing and technology up
gradation
Refund of value added tax (VAT) on expansion
of new units in spinning and power tariff
concession to cotton spinning and weaving
units
Financial assistance for skill development
centres for technology acquisition and also for
supporting energy and water conservation as
well as for environmental compliance
Incentives from Government of Gujarat
Under the Technology Upgradation Fund Scheme (TUFS) the GoI is offering 5 credit linked
interest subsidy on purchase of textile machinery
In 2016 the government also approved an amended technology upgradation funds scheme
(ATUFS) where the GoI has made a fresh allocation of INR515 billion as one time capital
subsidy for new investment apart from allocated budget of INR338 billion for limited liability
Through the ATUFS the GoI aims to attract an investment of INR1000 billion by 2018
Scheme for Integrated Textile Parks (SITP) 40 capital subsidy to a maximum of INR40 crore on
total project cost on projects approved by government Also 100 FDI allowed for textile sector
Incentives from Government of India (GoI)
For approvals the project report should be submitted to respective District Industries Centres
(DICs) DIC will forward the proposal to Industries Commissioner who will submit the report to
State Level Approver Committee (SLAC) for final approval
The basic custom duty on imported technical textile machinery has been reduced from 10 to 5
and support to start-ups is also provided
68 76 100400
1340
3900
FY11 FY12 FY13 FY14 FY15 FY16
Incentives to Textile and Apparel Sector from the Government of
Gujarat (INR million)
CAGR
125
During FY16 incentives provided
increased ~3 times y-o-y and are
expected to rise further
Approvals
Source
ldquoGujarat Textile Policyrdquo Industries and Mines Department Government of Gujarat 5 September 2012
ldquoManufacturing Sector ndash Profilerdquo Vibrant Gujarat website 7 October 2014
Industries Commissionerate website httpicgujaratgovinpage_id=3175 accessed on 1 June 2016
ldquoTextile industry welcomes amended TUFSrdquo Business Standard 2 January 2016
httpwwwbusiness-standardcomarticleeconomy-policyduty-drawback-sops-to-incentivise-high-value-garment-exports-116081800720_1html
GoI has increased the duty drawback of 32 to 47 (depending on the category) for exports of
non-fabric inputs made from imported fabrics to incentivize high value garment (HVG) exports
Office of The Industries Commissionerate
Block No 1 2nd Floor Udyog Bhavan
Gandhinagar 382 010 Gujarat
Ph 2325268323252617
Email ID iccordgujaratgovin
This project profile is based on preliminary study to facilitate prospective entrepreneurs to assess a prima facie scope
It is however advisable to get a detailed feasibility study prepared before taking a final investment decision
Gujarat Industrial Development Corporation
Industries amp Mines Department
Office of Industries Commissioner
wwwgidcgovin
wwwimd-gujaratgovin
wwwicgujaratgovin
Industrial Extension Bureau
wwwindextbcom
httptechnotexgovin
Ministry of Textiles Government of India
Controllerate of Quality Assurance (Textiles and Clothing)
wwwdgqadefencegovin
Page 5
Market Potential
Global Market
428580
770
2013 2018F 2023F
Global apparel market size (US$ billion)
Currently US-based athleisure- and lifestyle brand
Nike is the largest fashion company worldwide with
revenues amounting to USD 306 billion
Spanish fast-fashion giant Inditex is the second
largest fashion company worldwide with luxury
brands such as Zara Pull amp Bear and Stradivarious
in its portfolio
Other luxury brand giants include LVMH (French)
TJX (US) HampM (Swedish)
41
64
102
2013 2018F 2023F
Indian domestic apparel market size
(US$ billion)
The Indian Designer wear Industry according to a
recent study by ASSOCHAM is growing at a CAGR of
about 40 The report estimates that the Indian
Designer wear industry is likely to cross the INR 11000
crore mark by 2020
The Designer industry currently pegged at INR 720
crores is seeing a growing popularity of boutiques
selling designer local wear showcasing finished and
ready-to-stitch garments and trendy dresses
Apparel segmentrsquos growth is supported by a robust
growth in the organized apparel segment and entry of
players such as HampM Zara and Marks amp Spencer
Domestic Market
According to the Secretary General (ASSOCHAM) ldquoCurrently Indiarsquos share in the global designer
wear industry is a minimal 032 but is likely to reach about 17 by 2020rdquo
The fashion industry in India is still budding and therefore provides ample opportunity for artistic
hard-working and enthusiastic persons
Gujarat has developed opportunities towards higher value addition product by setting up modern
process houses and knitwearready-made garments plants to fulfil the domestic and international
market demand
Indiarsquos per capita spend on apparel was US$37 in 2013 which was lowest among the above
mentioned countries However per capita spend on apparel is expected to reach US$129 in 2025
growing at a CAGR of 11 form 2013-2025
Source
EMIS UN Comtrade Technopak
FICCI Knowledge Paper on Driving growth through innovation
ldquoTextile Sector Indiardquo EMIS (December 2015) accessed via EMIS
database
httpwwwinduseduorgpdfsIJREISSIJREISS_349_97270pdf
ldquoTextiles And Apparelrdquo IBEF (January 2016) accessed via
wwwibeforgdownloadTextiles-and-Apparel-January-2016pdf
httpwwwalokindcomDownloadsIndian20Textile20Trade20-
Golden20Period-20March202012pdf
httpretailfranchiseindiacomarticlesector-watchfashionDesigner-
wear-industry-growing-big-in-Indiaa1323
Page 6
Growth Drivers
Scheme for Integrated Textile Parks (SITP) implemented by
GoI facilitates setting up of textile units
Government of Gujarat has introduced lsquoFarm-Factory-Fabric-
Fashion-Foreignrsquo Textile Policy to strengthen the entire textile
value-chain
Special incentive of 6 interest subsidy has been extended for
promotion of technical textiles in Gujarat
Multi-brand apparel stores such as Lifestyle Shoppers Stop
and Westside have witnessed aggressive expansion over the
past decade and this trend is likely to continue
Indian and international brands have leveraged this channel to
capture a larger customer base sourcing fabricsgarments
manufactured in India
Increased role of
organized retail
Favorable government
initiatives
100 FDI in single brand retailing has led to an increase in the
entry of top global apparel brands in India
HampM and Gap entered India in 2015 and plan to expand their
stores to 50 and 40 respectively by 2020
Aeacuteropostale also entered India in 2015 and has tied up with
Arvind Lifestyle
Entry of global apparel
brands
Rising fitness trend amongst urban women has lead to
increased demand for HVG such as knitted swimwear
sportswear sport-inspired footwear and yoga pants
Manufacturers are expected to launch products focused on
urban women with benefits such as flexibility ease of washing
light weight and hygiene
Rising fitness trend
Apparel and footwear retailing through internet registered a
growth of 86 in 2015 driven by the rapid penetration of
smartphones in India
In 2015 smartphones volume grew by 24 in India and the
total number of internet users reached 350 million
Global brands such as Topshop Topman and Dogo have taken
online route for entry in India
Growth in internet
retailing
Source
httpwwwindiantextilejournalcomNewsaspxnId=cNSCIBwYQQrSOO9tL1GtUg==
httpwwwmakeinindiacomhome
httphkmbhktdccomen1X0A5909hktdc-researchMake-in-India-The-Gujarat-Production-Base-Opportunity
httpsinternationalgapinccomgapinenstore-locator
httpwwwhmcominstore-locator
APPAREL AND FOOTWEAR IN INDIA Euromonitor International March 2016
Page 7
Gujarat - Competitive AdvantageHigh raw material (cotton) availability
Gujarat Government initiatives
Three textile SEZs
in Ahmedabad were approved in 2014 with investment of ~INR5 billion
Two composite centers
to be established by 2019 in Ahmedabad and Surat
One CoE (Centre of Excellence)
in Gujarat will be developed by NTC (National Textile Corporation)
7 interest subsidy
on new plants and machinery for a period of 5 years for HVG and made-ups
33 of the cotton produced in India comes
from Gujarat
Surendranagar Jamnagar Rajkot
Bhavnagar and Amreli are the main cotton
producing districts
Cotton production is also supported by its
climatic and geographical conditions as the
state has black soil mixed with lime and
potash and ~50 cm rainfall that are optimum
for cotton cultivation
Also 57 of the cotton cultivations are
irrigated in Gujarat reducing dependence on
monsoons
98 103119
90
117
FY10 FY11 FY12 FY13 FY14
Cotton production in Gujarat (million bales)
As a of total production
in India
32 30 32 25 30
Surat Apparel Park
has been converted into a SEZ
Source
Cotton Corporation of India
International Journal of Research in Engineering IT and Social Sciences
ldquoTextile Sector Indiardquo EMIS (December 2015) accessed via EMIS database
ldquoTextiles And Apparelrdquo IBEF (January 2016) accessed via wwwibeforgdownloadTextiles-and-Apparel-January-2016pdf
ldquoVibrant Gujarat Manufacturing Sector Profilerdquo (October 2014) accessed via wwwvibrantgujaratcomwritereaddataimagespdfManufacturing-
Sector-Profilepdf
httpwwwinduseduorgpdfsIJREISSIJREISS_349_97270pdf
httpwwwvibrantgujaratcomwritereaddataimagespdfManufacturing-Sector-Profilepdf
httpwwwbusiness-standardcomarticleeconomy-policysurat-apparel-park-to-become-a-special-economic-zone-103122301077_1html
httpwwwnarendramodiingujarat-unveils-E28098navi-gujarat-vastranitiE28099-gujarat-textile-policy-2012-4720
~US$328 billion
Investment in the textile industry by 2020 creating 1 million jobs
Gujarat is home to several leading institutions in textile fashion and design such as
National Institute of Fashion Technology (Gadhinagar) the campus at Gandhinagar inaugurated in 2004 is designed to meet the demands of imparting creative education NIFT offers a variety of courses including BDes In Fashion Design Accessory Design Textile Design and Fashion Communication NIFT also offers a BFTechin Apparel Production
National Institute of Design NID was established in 1961 and has been a centrefor design education practice and research since NID offers professional education programmes at Bachelors and Masters level with five faculty streams and 20 diverse design domains
Ahmedabad Textile Industryrsquos Research Association Established in 1947 and starting in 1949 ATIRA is an autonomous non-profit association which is involved in textile research
Textile and Fashion Institutes
Page 8
Gujarat - Competitive Advantage
Textile hubs in Gujarat
Kutch ndash Textile
Handicrafts
Surendranagar
Manavadar
and Gondal ndash
Cotton ginning
Saurashtra ndash Hand printing
and processing
Ahmedabadndash
Denims
Ankaleshwar ndash
Technical
TextilesSurat ndash Silk city
Large number of textile hubs in Gujarat
High availability of skilled manpower for the textile sector
Gujarat has 28 Industrial Training Institutes
(ITIs) that offer industrial training courses on
Textile and Garment industry with an intake
of ~6000 students per year
These institutes offers specialized courses
in computer-aided dress making and dress
design pattern making and needle work
The government also provides assistance
and training to apparel training institutions
and the power loom sector
The margins of productivity of the garments
is lower due to which it becomes a natural
choice of the industry to target HVG market
in Gujarat
Gujarat has an established textile sector
with more than 1500 medium and large
textile units and 18 textile-related product
clusters
Large number of textile units are attributable
to high availability of raw materials with
Gujarat being the largest producer of cotton
in the country (production of ~12 million
bales in FY14)
Going forward the state plans to
significantly increase its textile production
capacity from the current level of ~50000
weaving looms
~50 of Indias art silk fabric is produced in
Surat alone
Gujarat is the largest producer of denim in
India (65) and the third largest in the world
Location of major educational institutions
Gandhinagar
Ahmedabad
Rajkot
Bhavnagar
Vadodara
Surat
Source
ldquoBaseline survey of the Technical Textile industry in Indiardquo Office of the Textile Commissioner 29 March 2016
ldquoManufacturing Sector ndash Profilerdquo Vibrant Gujarat website 7 October 2014
ldquoGujarat ndash Growth and Prosperity for Allrdquo Vibrant Gujarat website 25 August 2014
Page 9
Project Information
High Value Garment Processes
The High Value Garment process begins after the processing stage in the garmentapparel
production where the design and prototype of the designs are prepared and with the use of highly
sophisticated machinery and skilled manpower the final garments are produced
At this stage of garment apparel production ndash various types of value additions are done to give
the garments the high quality and aesthetic value along with branding
Source Textiles and Apparel IBEF Janurary 2016 (wwwibeforg)
lsquoValue Addition in Garment Industryrsquo Nishok TSR PSG Polytechnic College
Value addition for HVG
At the stages of processing and garment production value addition is done to finally make textiles
High Value Garments
Value addition of various types are done to provide the finished product with greater aesthetic
value and brand identity The value additions will also ensure increase the demand for high value
product with superior quality
The types of value additions are
Finishing ndash Mechanical and Chemical finishing
Printing ndash All over print chest print
Special processes ndash Tie and Dye Batiks Quilting
Closures ndash Button Zippers Velcro hooks and loops
Embroidery ndash Hand and Machine Embroidery
Raw Material
Cotton
Jute
Silk
Wool
Cashmere
Chiffon
Modal
Lycra
Tulle
Organza
Stretch Knits
Processing
Ginning ndash Fiber
Spinning ndash Yarn
WeavingKnitting
ndash Fabric
Processing ndash
Processed Fabric
GarmentApparel
Production
Final Garment
apparel
Value Addition
Fabric
Finishing
Printing
Special
Processes
Closure
Embroidery
Quality Check
Page 10
Project Information
Raw Materials for HVG
Silk
India is the second largest silk
producer in the world
contributing to ~18 of the total
global production It has the
distinction of all producing all 4
varieties of silk
In India some of the major silk
centres include Kanchivaram
Varansi and Bangalore
In Gujarat silk can be sourced
from major silk centres of Surat
and Cambay
In the High Value Garment segment which includes fashion and designer clothing silk satin and
cashmere are the three most commonly used fabrics
Raw materials used in High Value Garments are both sourced domestically and imported Some
of the imported and Indian fabrics used are cashmere satin Chiffon Tulle Organza Lycra Silk
and various other stretch knits
Satin
Satin although usually
classified in the same
category as silk has a few
distinctive features Satin
is more shiny compared
to silk and usually
incorporates some kind of
silk fabric into it but has a
dull back
Satin can be sourced
from major silk centres of
Surat as well
Cashmere
Cashmere is known for its long
lasting comfort and unbelievably
soft appearance
Designers around the world have
used this material Some of the
designer to use cashmere in their
fashion lines include ndash Kenneth
Cole Micheal Kors and Christian
Dior
India is a leading producer of this
material and can be sourced
locally
Supplier Name Key products Nearest Location
Usha International Sewing machinesSurat Gujarathttpwwwushacom
Meera Machine Tools Overlock machines Surat Gujarat
Super Sonic Impex Sewing machine motor Surat Gujarat
Juki India Private LtdIndustrial Sewing Machines hi-
tech sewing machinesAhmedabad Gujarat
Hi-tech Machines
Fusing Machines Collar Cutting
Machines Embossing Machines
Embroidery backup film
Removing Machine Lable or
Heat Transfer Machines
New Delhi
List of Machinery in India
Key Manufacturers in India
Arvind Limited
Levirsquos Strauss India Pvt
LtdAlok Industries
Madura Fashion amp Lifestyle Benetton India Pvt Ltd
Page 11
Potential collaboration opportunities
Source
iNDEXTb
ldquoDivisionsrdquo Arvind Limited website httpwwwarvindcomdivisionthearvindstorehtmMenuTab1
ldquoAbout usrdquo Madura Fashion amp Lifestyle website httpwwwmadurafnlcomabout_usabout_ushtml
httpwwwalokindcom
ldquoAbout usrdquo Lifestyle International website httpwwwlifestylestorescomaboutusphp
ldquoIndustry profile Apparel retail in Indiardquo Marketline May 2015 via ThomsonOne
rdquoOverviewrdquo Future Retail website httpfutureretailcoinabout-usoverview-retailhtml
ldquoBusiness Overviewrdquo Future Lifestyle website httpfuturelifestyleinbusiness_overviewhtml
ldquoRaymond Apparel Ltdrdquo Raymond India website httpwwwraymondindiacomgrp_ralaspVZpsNU0w8iQ
ldquoCorporaterdquo Shoppers Stop website httpcorporateshoppersstopcom
ldquoQuarterly Performance March 2015rdquo Shoppers Stop website httpcorporateshoppersstopcomuploaded_filesb602138-63dfpdf
ldquoAbout usrdquo Westside website httpswwwmywestsidecomWebPagesInnerPagesaboutusaspx
ldquoAbout usrdquo Pantaloons website httppantaloonscomcompanyabout-usoverview
Project Information
Key Considerations
Since this is a niche segment in the textile value chain high skill work force is essential
Institutes that offer specialized courses in computer-aided dress making and dress design
pattern making and needle work are to be promoted
Rising fashion trends amongst urban women increases the demand for knitted swimwear
sportswear sport-inspired footwear and yoga pants
HVG manufacturers can collaborate with
Machinery and raw material suppliers
Domestic and international apparel retail brands
Organization such as Gujarat Garment Manufacturers Association Ahmedabad Textile Mills Association South Gujarat Textile Processors Association which work towards the development of textile and garment industry in Gujarat
Institutions such as National Institute of Fashion Technology for the skill development of employees
Page 12
Project Information
Existing Textile Parks
1 MS Dholi Integrated Spinning Park Ltd Ahmedabad
2 Ms Karanj Textile Park Pvt Ltd Surat
3 Palsana Textile Park Pvt Ltd Surat
4 Dholka Textile Park Pvt Ltd Surat
5 Arvind Garments Park Pvt Ltd Ahmedabad
6 Ms Shalon Textile Park Pvt Ltd Surat
7 MS Jayraj Textile Park Pvt Ltd Surat
8 MS Shanti Integrated Textile Park Pvt Ltd
9 MS Giriraj Developers Surat
10 Rajhans Infracon (India) Pvt Ltd Surat
11 The Surat Vankar Sahakari Sangh Ltd Surat
12 Sanika Industrial Techno Park Surat
13 Ekta Enterprise Platinum Textile park Surat
14 NSP Infrastructure Pvt Ltd Surat
15 D D Spintex Park Pvt Ltd Bharuch
16 Gaytri Cotspin Park PPL Bharuch
S
No
Name of the Industrial Park Location Taluka District
1 Makson SEZ Pvt LTdOlak Chharad
Derwada MalikaLakhtar Surendranagar
2Madhukar Infrastructure Developers Pvt
Ltd
Jansali
BalolLimbdi Surendranagar
3 Satyesh infrastructures LLP Janiyadra narnavi Vagra Bharuch
4 Bhadresh Trading Corporation Ltd Varnora Zinkadi
PaiyaBhuj Kutch
5 B T C Cashkot Ind Ltd Bhuvad Anjar Kutch
6 Eco Green Industrial Park Pvt LTd Kharchi- Bhilwada Jhagadia Bharuch
7 Adharbhut Industrial Park Pvt LtdKava Madafar
Panchpipla VadJambusar Bharuch
8 Ample Industrial Park Pvt Ltd Vad Jantran Jambusar Bharuch
9 Damanganga Industrial Park Karvad Dungara Pardi Valsad
10 Green Field Industrial Park Pvt Ltd Kharchi- Bhilwada Jhagadia Bharuch
11 Ms Ratanakar Estate Developer Por Vadodara Vadodara
12 Ms Welspun Anjar SEZ Limited Varsamedi Anjar Kutchh
13 Ms Ratanakar Estate Developer Por Vadodara Vadodara
The Proposed Unit can be
developed anywhere in Gujarat
The preferred location for the
proposed unit would be in the
existing proposed parks or in the
vicinity of these parks in order to
have direct access to the eco
system
Proposed Upcoming Textile Parks
Page 13
Project Information
Proposed
The Mumbai-Ahmedabad bullet train project
will have Surat as one of the stations
In 2016 the Gujarat government assigned
Delhi Metro Rail Corporation as a consultant
for the proposed metro connectivity in Surat
Rail connectivity was proposed for Hazira and
Nargol ports in the 2016 rail budget
Proposed
Proposed four-lane highways which are
expected to improve connectivity in Surat
include ndash Dakor-Savli Vadodara-Dabhoi amp
Surat-Olpad-Bardoli
Proposed
In January 2015 Airports Authority of India
gave an in-principle approval for cargo
terminal at Surat airport worth INR70 million
The terminal is expected to be operational in
2017
In February 2016 Surat Airport Action
Committee filed an online petition for an
international airport at Surat
The nearest port is Hazira which is 25 km
from Surat
Additionally Hazira port is well connected
to Mundra port and Jawaharlal Nehru Port
Trust (JNPT) ndash Indiarsquos largest container
port
Thus it provides a convenient textiles-
related trade gateway to International
(Europe Africa America and the Middle
East) and domestic markets
Surat domestic airport is well connected to
various parts of the country The city is
located ~275 kms from the international
airport at Ahmedabad
Surat is connected with other districts of the
state such as Rajkot Vadodara and
Ahmedabad by rail
Hazira port in Surat is ~16 km away from the
Surat railway station
The city is connected to Delhi Mumbai
Industrial Corridor (DMIC) which links
Ahmedabad Vadodara and Surat
Proximity to NH-8 and NH-6 further
enhances connectivity in the city
Surat also has very good connectivity with
other cities of the state such as Vadodara
(154 km) and Ahmedabad (265 km)
Logistics amp Connectivity
Water for industrial purposes can be obtained
from four sources viz Gujarat Water Supply
and Sewerage Board (GWSSB) an irrigation
canal dams and surface reservoirs
The main source for the power supply is Torrent Power Limited in Surat
Power
Rail Road
Air Port
Water
Utility
Source
httpwwwfirstpostcominvestingfive-most-promising-indian-tier-ii-cities-you-should-invest-in-2796296html
httpdeshgujaratcom20150325clearances-by-july-works-for-nargol-port-to-start-next-yeargog
httptimesofindiaindiatimescomcitysuratMulti-mode-transportation-hub-soon-at-Surat-railway-stationarticleshow52095198cms
Page 14
Project Financials
Cost of setting up unit producing High Value Gents Shirts
and Trousers at Surat Apparel Park The proposed unit will have a
production capacity of 90000 Gents Shirts and Gents Trousers per month The quality of the
garments mainly depends on quality of fabric used Standards such as IS12675 IS4039 and
IS10194 will be complied with at the plant
Project cost
Project components amp specifications Cost (INR lakh)
Land (800 sq mtr)
Rate (INR 1500 per sq mtr as of May 2016)1
1200
Building Area (375 sq m) (built up) ( 3000 per sft) 1009
Factory Shed ndash 250 sq mt
Store (Raw Material) ndash 100 sq mt
Store (Finished Goods) ndash 75 sq mt
Land amp Building Component 1129
Machinery amp Equipment 250 ndash 27
Other Fixed Assets 30 ndash 50
Machinery 28 ndash 30
Total Capital Cost 140 - 143
Working Capital (Per Month)
Staff and Labor 2
Raw Material and Utilities 33
Total Recurring cost 35
Total Capital Investment
Machinery amp Equipment 28
Working capital for 3 months 105
Total Capital Investment 133
Source Project Profile on Gents Shirts and Trousers MSME ndash Development Institute Ministry of MSME GoI
Page 15
Project Financials
Source Project Profile on Gents Shirts and Trousers MSME ndash Development Institute Ministry of MSME GoI
Manager 1
Sales Representative 1
Accounts Officer 1
Production Manager 1
Cutting Master 1
Skilled Workers 55
Pressman 4
Unskilled workers 6
Manpower requirement in the proposed HVG manufacturing unit
Equipment Qty
Single Needle Lock Stitch Machine with motor 50
6rdquo Power driven cloth cutting machine 1
2 needle overlock safety stitching machine with trimmer 1
Double Needle Lock Stitch Machine 2
Button Hole Making Machine 1
Button Stitching Machine 1
Hot Fusing Press 1
Garment Washing Machine 1
Hydro extractor 25 kg capacity 1
Tumbler Dryer 25 kg capacity 1
Flat Bed Steam Iron Press with Vacuum Table 4
Zig Zag Embroidery Machine 1
Generator Set 30 KVA 1
Wash Room Trolleys 4
Machinery and Equipment
Page 16
Approvals amp Incentives
5 interest subsidy on bank loans for five years
for those who establish new plants for value
addition chain like ginning processing
weaving knitting and machine carpeting
7 interest subsidy on new plant and
machinery for five years for cotton spinning
garment manufacturing and technology up
gradation
Refund of value added tax (VAT) on expansion
of new units in spinning and power tariff
concession to cotton spinning and weaving
units
Financial assistance for skill development
centres for technology acquisition and also for
supporting energy and water conservation as
well as for environmental compliance
Incentives from Government of Gujarat
Under the Technology Upgradation Fund Scheme (TUFS) the GoI is offering 5 credit linked
interest subsidy on purchase of textile machinery
In 2016 the government also approved an amended technology upgradation funds scheme
(ATUFS) where the GoI has made a fresh allocation of INR515 billion as one time capital
subsidy for new investment apart from allocated budget of INR338 billion for limited liability
Through the ATUFS the GoI aims to attract an investment of INR1000 billion by 2018
Scheme for Integrated Textile Parks (SITP) 40 capital subsidy to a maximum of INR40 crore on
total project cost on projects approved by government Also 100 FDI allowed for textile sector
Incentives from Government of India (GoI)
For approvals the project report should be submitted to respective District Industries Centres
(DICs) DIC will forward the proposal to Industries Commissioner who will submit the report to
State Level Approver Committee (SLAC) for final approval
The basic custom duty on imported technical textile machinery has been reduced from 10 to 5
and support to start-ups is also provided
68 76 100400
1340
3900
FY11 FY12 FY13 FY14 FY15 FY16
Incentives to Textile and Apparel Sector from the Government of
Gujarat (INR million)
CAGR
125
During FY16 incentives provided
increased ~3 times y-o-y and are
expected to rise further
Approvals
Source
ldquoGujarat Textile Policyrdquo Industries and Mines Department Government of Gujarat 5 September 2012
ldquoManufacturing Sector ndash Profilerdquo Vibrant Gujarat website 7 October 2014
Industries Commissionerate website httpicgujaratgovinpage_id=3175 accessed on 1 June 2016
ldquoTextile industry welcomes amended TUFSrdquo Business Standard 2 January 2016
httpwwwbusiness-standardcomarticleeconomy-policyduty-drawback-sops-to-incentivise-high-value-garment-exports-116081800720_1html
GoI has increased the duty drawback of 32 to 47 (depending on the category) for exports of
non-fabric inputs made from imported fabrics to incentivize high value garment (HVG) exports
Office of The Industries Commissionerate
Block No 1 2nd Floor Udyog Bhavan
Gandhinagar 382 010 Gujarat
Ph 2325268323252617
Email ID iccordgujaratgovin
This project profile is based on preliminary study to facilitate prospective entrepreneurs to assess a prima facie scope
It is however advisable to get a detailed feasibility study prepared before taking a final investment decision
Gujarat Industrial Development Corporation
Industries amp Mines Department
Office of Industries Commissioner
wwwgidcgovin
wwwimd-gujaratgovin
wwwicgujaratgovin
Industrial Extension Bureau
wwwindextbcom
httptechnotexgovin
Ministry of Textiles Government of India
Controllerate of Quality Assurance (Textiles and Clothing)
wwwdgqadefencegovin
Page 6
Growth Drivers
Scheme for Integrated Textile Parks (SITP) implemented by
GoI facilitates setting up of textile units
Government of Gujarat has introduced lsquoFarm-Factory-Fabric-
Fashion-Foreignrsquo Textile Policy to strengthen the entire textile
value-chain
Special incentive of 6 interest subsidy has been extended for
promotion of technical textiles in Gujarat
Multi-brand apparel stores such as Lifestyle Shoppers Stop
and Westside have witnessed aggressive expansion over the
past decade and this trend is likely to continue
Indian and international brands have leveraged this channel to
capture a larger customer base sourcing fabricsgarments
manufactured in India
Increased role of
organized retail
Favorable government
initiatives
100 FDI in single brand retailing has led to an increase in the
entry of top global apparel brands in India
HampM and Gap entered India in 2015 and plan to expand their
stores to 50 and 40 respectively by 2020
Aeacuteropostale also entered India in 2015 and has tied up with
Arvind Lifestyle
Entry of global apparel
brands
Rising fitness trend amongst urban women has lead to
increased demand for HVG such as knitted swimwear
sportswear sport-inspired footwear and yoga pants
Manufacturers are expected to launch products focused on
urban women with benefits such as flexibility ease of washing
light weight and hygiene
Rising fitness trend
Apparel and footwear retailing through internet registered a
growth of 86 in 2015 driven by the rapid penetration of
smartphones in India
In 2015 smartphones volume grew by 24 in India and the
total number of internet users reached 350 million
Global brands such as Topshop Topman and Dogo have taken
online route for entry in India
Growth in internet
retailing
Source
httpwwwindiantextilejournalcomNewsaspxnId=cNSCIBwYQQrSOO9tL1GtUg==
httpwwwmakeinindiacomhome
httphkmbhktdccomen1X0A5909hktdc-researchMake-in-India-The-Gujarat-Production-Base-Opportunity
httpsinternationalgapinccomgapinenstore-locator
httpwwwhmcominstore-locator
APPAREL AND FOOTWEAR IN INDIA Euromonitor International March 2016
Page 7
Gujarat - Competitive AdvantageHigh raw material (cotton) availability
Gujarat Government initiatives
Three textile SEZs
in Ahmedabad were approved in 2014 with investment of ~INR5 billion
Two composite centers
to be established by 2019 in Ahmedabad and Surat
One CoE (Centre of Excellence)
in Gujarat will be developed by NTC (National Textile Corporation)
7 interest subsidy
on new plants and machinery for a period of 5 years for HVG and made-ups
33 of the cotton produced in India comes
from Gujarat
Surendranagar Jamnagar Rajkot
Bhavnagar and Amreli are the main cotton
producing districts
Cotton production is also supported by its
climatic and geographical conditions as the
state has black soil mixed with lime and
potash and ~50 cm rainfall that are optimum
for cotton cultivation
Also 57 of the cotton cultivations are
irrigated in Gujarat reducing dependence on
monsoons
98 103119
90
117
FY10 FY11 FY12 FY13 FY14
Cotton production in Gujarat (million bales)
As a of total production
in India
32 30 32 25 30
Surat Apparel Park
has been converted into a SEZ
Source
Cotton Corporation of India
International Journal of Research in Engineering IT and Social Sciences
ldquoTextile Sector Indiardquo EMIS (December 2015) accessed via EMIS database
ldquoTextiles And Apparelrdquo IBEF (January 2016) accessed via wwwibeforgdownloadTextiles-and-Apparel-January-2016pdf
ldquoVibrant Gujarat Manufacturing Sector Profilerdquo (October 2014) accessed via wwwvibrantgujaratcomwritereaddataimagespdfManufacturing-
Sector-Profilepdf
httpwwwinduseduorgpdfsIJREISSIJREISS_349_97270pdf
httpwwwvibrantgujaratcomwritereaddataimagespdfManufacturing-Sector-Profilepdf
httpwwwbusiness-standardcomarticleeconomy-policysurat-apparel-park-to-become-a-special-economic-zone-103122301077_1html
httpwwwnarendramodiingujarat-unveils-E28098navi-gujarat-vastranitiE28099-gujarat-textile-policy-2012-4720
~US$328 billion
Investment in the textile industry by 2020 creating 1 million jobs
Gujarat is home to several leading institutions in textile fashion and design such as
National Institute of Fashion Technology (Gadhinagar) the campus at Gandhinagar inaugurated in 2004 is designed to meet the demands of imparting creative education NIFT offers a variety of courses including BDes In Fashion Design Accessory Design Textile Design and Fashion Communication NIFT also offers a BFTechin Apparel Production
National Institute of Design NID was established in 1961 and has been a centrefor design education practice and research since NID offers professional education programmes at Bachelors and Masters level with five faculty streams and 20 diverse design domains
Ahmedabad Textile Industryrsquos Research Association Established in 1947 and starting in 1949 ATIRA is an autonomous non-profit association which is involved in textile research
Textile and Fashion Institutes
Page 8
Gujarat - Competitive Advantage
Textile hubs in Gujarat
Kutch ndash Textile
Handicrafts
Surendranagar
Manavadar
and Gondal ndash
Cotton ginning
Saurashtra ndash Hand printing
and processing
Ahmedabadndash
Denims
Ankaleshwar ndash
Technical
TextilesSurat ndash Silk city
Large number of textile hubs in Gujarat
High availability of skilled manpower for the textile sector
Gujarat has 28 Industrial Training Institutes
(ITIs) that offer industrial training courses on
Textile and Garment industry with an intake
of ~6000 students per year
These institutes offers specialized courses
in computer-aided dress making and dress
design pattern making and needle work
The government also provides assistance
and training to apparel training institutions
and the power loom sector
The margins of productivity of the garments
is lower due to which it becomes a natural
choice of the industry to target HVG market
in Gujarat
Gujarat has an established textile sector
with more than 1500 medium and large
textile units and 18 textile-related product
clusters
Large number of textile units are attributable
to high availability of raw materials with
Gujarat being the largest producer of cotton
in the country (production of ~12 million
bales in FY14)
Going forward the state plans to
significantly increase its textile production
capacity from the current level of ~50000
weaving looms
~50 of Indias art silk fabric is produced in
Surat alone
Gujarat is the largest producer of denim in
India (65) and the third largest in the world
Location of major educational institutions
Gandhinagar
Ahmedabad
Rajkot
Bhavnagar
Vadodara
Surat
Source
ldquoBaseline survey of the Technical Textile industry in Indiardquo Office of the Textile Commissioner 29 March 2016
ldquoManufacturing Sector ndash Profilerdquo Vibrant Gujarat website 7 October 2014
ldquoGujarat ndash Growth and Prosperity for Allrdquo Vibrant Gujarat website 25 August 2014
Page 9
Project Information
High Value Garment Processes
The High Value Garment process begins after the processing stage in the garmentapparel
production where the design and prototype of the designs are prepared and with the use of highly
sophisticated machinery and skilled manpower the final garments are produced
At this stage of garment apparel production ndash various types of value additions are done to give
the garments the high quality and aesthetic value along with branding
Source Textiles and Apparel IBEF Janurary 2016 (wwwibeforg)
lsquoValue Addition in Garment Industryrsquo Nishok TSR PSG Polytechnic College
Value addition for HVG
At the stages of processing and garment production value addition is done to finally make textiles
High Value Garments
Value addition of various types are done to provide the finished product with greater aesthetic
value and brand identity The value additions will also ensure increase the demand for high value
product with superior quality
The types of value additions are
Finishing ndash Mechanical and Chemical finishing
Printing ndash All over print chest print
Special processes ndash Tie and Dye Batiks Quilting
Closures ndash Button Zippers Velcro hooks and loops
Embroidery ndash Hand and Machine Embroidery
Raw Material
Cotton
Jute
Silk
Wool
Cashmere
Chiffon
Modal
Lycra
Tulle
Organza
Stretch Knits
Processing
Ginning ndash Fiber
Spinning ndash Yarn
WeavingKnitting
ndash Fabric
Processing ndash
Processed Fabric
GarmentApparel
Production
Final Garment
apparel
Value Addition
Fabric
Finishing
Printing
Special
Processes
Closure
Embroidery
Quality Check
Page 10
Project Information
Raw Materials for HVG
Silk
India is the second largest silk
producer in the world
contributing to ~18 of the total
global production It has the
distinction of all producing all 4
varieties of silk
In India some of the major silk
centres include Kanchivaram
Varansi and Bangalore
In Gujarat silk can be sourced
from major silk centres of Surat
and Cambay
In the High Value Garment segment which includes fashion and designer clothing silk satin and
cashmere are the three most commonly used fabrics
Raw materials used in High Value Garments are both sourced domestically and imported Some
of the imported and Indian fabrics used are cashmere satin Chiffon Tulle Organza Lycra Silk
and various other stretch knits
Satin
Satin although usually
classified in the same
category as silk has a few
distinctive features Satin
is more shiny compared
to silk and usually
incorporates some kind of
silk fabric into it but has a
dull back
Satin can be sourced
from major silk centres of
Surat as well
Cashmere
Cashmere is known for its long
lasting comfort and unbelievably
soft appearance
Designers around the world have
used this material Some of the
designer to use cashmere in their
fashion lines include ndash Kenneth
Cole Micheal Kors and Christian
Dior
India is a leading producer of this
material and can be sourced
locally
Supplier Name Key products Nearest Location
Usha International Sewing machinesSurat Gujarathttpwwwushacom
Meera Machine Tools Overlock machines Surat Gujarat
Super Sonic Impex Sewing machine motor Surat Gujarat
Juki India Private LtdIndustrial Sewing Machines hi-
tech sewing machinesAhmedabad Gujarat
Hi-tech Machines
Fusing Machines Collar Cutting
Machines Embossing Machines
Embroidery backup film
Removing Machine Lable or
Heat Transfer Machines
New Delhi
List of Machinery in India
Key Manufacturers in India
Arvind Limited
Levirsquos Strauss India Pvt
LtdAlok Industries
Madura Fashion amp Lifestyle Benetton India Pvt Ltd
Page 11
Potential collaboration opportunities
Source
iNDEXTb
ldquoDivisionsrdquo Arvind Limited website httpwwwarvindcomdivisionthearvindstorehtmMenuTab1
ldquoAbout usrdquo Madura Fashion amp Lifestyle website httpwwwmadurafnlcomabout_usabout_ushtml
httpwwwalokindcom
ldquoAbout usrdquo Lifestyle International website httpwwwlifestylestorescomaboutusphp
ldquoIndustry profile Apparel retail in Indiardquo Marketline May 2015 via ThomsonOne
rdquoOverviewrdquo Future Retail website httpfutureretailcoinabout-usoverview-retailhtml
ldquoBusiness Overviewrdquo Future Lifestyle website httpfuturelifestyleinbusiness_overviewhtml
ldquoRaymond Apparel Ltdrdquo Raymond India website httpwwwraymondindiacomgrp_ralaspVZpsNU0w8iQ
ldquoCorporaterdquo Shoppers Stop website httpcorporateshoppersstopcom
ldquoQuarterly Performance March 2015rdquo Shoppers Stop website httpcorporateshoppersstopcomuploaded_filesb602138-63dfpdf
ldquoAbout usrdquo Westside website httpswwwmywestsidecomWebPagesInnerPagesaboutusaspx
ldquoAbout usrdquo Pantaloons website httppantaloonscomcompanyabout-usoverview
Project Information
Key Considerations
Since this is a niche segment in the textile value chain high skill work force is essential
Institutes that offer specialized courses in computer-aided dress making and dress design
pattern making and needle work are to be promoted
Rising fashion trends amongst urban women increases the demand for knitted swimwear
sportswear sport-inspired footwear and yoga pants
HVG manufacturers can collaborate with
Machinery and raw material suppliers
Domestic and international apparel retail brands
Organization such as Gujarat Garment Manufacturers Association Ahmedabad Textile Mills Association South Gujarat Textile Processors Association which work towards the development of textile and garment industry in Gujarat
Institutions such as National Institute of Fashion Technology for the skill development of employees
Page 12
Project Information
Existing Textile Parks
1 MS Dholi Integrated Spinning Park Ltd Ahmedabad
2 Ms Karanj Textile Park Pvt Ltd Surat
3 Palsana Textile Park Pvt Ltd Surat
4 Dholka Textile Park Pvt Ltd Surat
5 Arvind Garments Park Pvt Ltd Ahmedabad
6 Ms Shalon Textile Park Pvt Ltd Surat
7 MS Jayraj Textile Park Pvt Ltd Surat
8 MS Shanti Integrated Textile Park Pvt Ltd
9 MS Giriraj Developers Surat
10 Rajhans Infracon (India) Pvt Ltd Surat
11 The Surat Vankar Sahakari Sangh Ltd Surat
12 Sanika Industrial Techno Park Surat
13 Ekta Enterprise Platinum Textile park Surat
14 NSP Infrastructure Pvt Ltd Surat
15 D D Spintex Park Pvt Ltd Bharuch
16 Gaytri Cotspin Park PPL Bharuch
S
No
Name of the Industrial Park Location Taluka District
1 Makson SEZ Pvt LTdOlak Chharad
Derwada MalikaLakhtar Surendranagar
2Madhukar Infrastructure Developers Pvt
Ltd
Jansali
BalolLimbdi Surendranagar
3 Satyesh infrastructures LLP Janiyadra narnavi Vagra Bharuch
4 Bhadresh Trading Corporation Ltd Varnora Zinkadi
PaiyaBhuj Kutch
5 B T C Cashkot Ind Ltd Bhuvad Anjar Kutch
6 Eco Green Industrial Park Pvt LTd Kharchi- Bhilwada Jhagadia Bharuch
7 Adharbhut Industrial Park Pvt LtdKava Madafar
Panchpipla VadJambusar Bharuch
8 Ample Industrial Park Pvt Ltd Vad Jantran Jambusar Bharuch
9 Damanganga Industrial Park Karvad Dungara Pardi Valsad
10 Green Field Industrial Park Pvt Ltd Kharchi- Bhilwada Jhagadia Bharuch
11 Ms Ratanakar Estate Developer Por Vadodara Vadodara
12 Ms Welspun Anjar SEZ Limited Varsamedi Anjar Kutchh
13 Ms Ratanakar Estate Developer Por Vadodara Vadodara
The Proposed Unit can be
developed anywhere in Gujarat
The preferred location for the
proposed unit would be in the
existing proposed parks or in the
vicinity of these parks in order to
have direct access to the eco
system
Proposed Upcoming Textile Parks
Page 13
Project Information
Proposed
The Mumbai-Ahmedabad bullet train project
will have Surat as one of the stations
In 2016 the Gujarat government assigned
Delhi Metro Rail Corporation as a consultant
for the proposed metro connectivity in Surat
Rail connectivity was proposed for Hazira and
Nargol ports in the 2016 rail budget
Proposed
Proposed four-lane highways which are
expected to improve connectivity in Surat
include ndash Dakor-Savli Vadodara-Dabhoi amp
Surat-Olpad-Bardoli
Proposed
In January 2015 Airports Authority of India
gave an in-principle approval for cargo
terminal at Surat airport worth INR70 million
The terminal is expected to be operational in
2017
In February 2016 Surat Airport Action
Committee filed an online petition for an
international airport at Surat
The nearest port is Hazira which is 25 km
from Surat
Additionally Hazira port is well connected
to Mundra port and Jawaharlal Nehru Port
Trust (JNPT) ndash Indiarsquos largest container
port
Thus it provides a convenient textiles-
related trade gateway to International
(Europe Africa America and the Middle
East) and domestic markets
Surat domestic airport is well connected to
various parts of the country The city is
located ~275 kms from the international
airport at Ahmedabad
Surat is connected with other districts of the
state such as Rajkot Vadodara and
Ahmedabad by rail
Hazira port in Surat is ~16 km away from the
Surat railway station
The city is connected to Delhi Mumbai
Industrial Corridor (DMIC) which links
Ahmedabad Vadodara and Surat
Proximity to NH-8 and NH-6 further
enhances connectivity in the city
Surat also has very good connectivity with
other cities of the state such as Vadodara
(154 km) and Ahmedabad (265 km)
Logistics amp Connectivity
Water for industrial purposes can be obtained
from four sources viz Gujarat Water Supply
and Sewerage Board (GWSSB) an irrigation
canal dams and surface reservoirs
The main source for the power supply is Torrent Power Limited in Surat
Power
Rail Road
Air Port
Water
Utility
Source
httpwwwfirstpostcominvestingfive-most-promising-indian-tier-ii-cities-you-should-invest-in-2796296html
httpdeshgujaratcom20150325clearances-by-july-works-for-nargol-port-to-start-next-yeargog
httptimesofindiaindiatimescomcitysuratMulti-mode-transportation-hub-soon-at-Surat-railway-stationarticleshow52095198cms
Page 14
Project Financials
Cost of setting up unit producing High Value Gents Shirts
and Trousers at Surat Apparel Park The proposed unit will have a
production capacity of 90000 Gents Shirts and Gents Trousers per month The quality of the
garments mainly depends on quality of fabric used Standards such as IS12675 IS4039 and
IS10194 will be complied with at the plant
Project cost
Project components amp specifications Cost (INR lakh)
Land (800 sq mtr)
Rate (INR 1500 per sq mtr as of May 2016)1
1200
Building Area (375 sq m) (built up) ( 3000 per sft) 1009
Factory Shed ndash 250 sq mt
Store (Raw Material) ndash 100 sq mt
Store (Finished Goods) ndash 75 sq mt
Land amp Building Component 1129
Machinery amp Equipment 250 ndash 27
Other Fixed Assets 30 ndash 50
Machinery 28 ndash 30
Total Capital Cost 140 - 143
Working Capital (Per Month)
Staff and Labor 2
Raw Material and Utilities 33
Total Recurring cost 35
Total Capital Investment
Machinery amp Equipment 28
Working capital for 3 months 105
Total Capital Investment 133
Source Project Profile on Gents Shirts and Trousers MSME ndash Development Institute Ministry of MSME GoI
Page 15
Project Financials
Source Project Profile on Gents Shirts and Trousers MSME ndash Development Institute Ministry of MSME GoI
Manager 1
Sales Representative 1
Accounts Officer 1
Production Manager 1
Cutting Master 1
Skilled Workers 55
Pressman 4
Unskilled workers 6
Manpower requirement in the proposed HVG manufacturing unit
Equipment Qty
Single Needle Lock Stitch Machine with motor 50
6rdquo Power driven cloth cutting machine 1
2 needle overlock safety stitching machine with trimmer 1
Double Needle Lock Stitch Machine 2
Button Hole Making Machine 1
Button Stitching Machine 1
Hot Fusing Press 1
Garment Washing Machine 1
Hydro extractor 25 kg capacity 1
Tumbler Dryer 25 kg capacity 1
Flat Bed Steam Iron Press with Vacuum Table 4
Zig Zag Embroidery Machine 1
Generator Set 30 KVA 1
Wash Room Trolleys 4
Machinery and Equipment
Page 16
Approvals amp Incentives
5 interest subsidy on bank loans for five years
for those who establish new plants for value
addition chain like ginning processing
weaving knitting and machine carpeting
7 interest subsidy on new plant and
machinery for five years for cotton spinning
garment manufacturing and technology up
gradation
Refund of value added tax (VAT) on expansion
of new units in spinning and power tariff
concession to cotton spinning and weaving
units
Financial assistance for skill development
centres for technology acquisition and also for
supporting energy and water conservation as
well as for environmental compliance
Incentives from Government of Gujarat
Under the Technology Upgradation Fund Scheme (TUFS) the GoI is offering 5 credit linked
interest subsidy on purchase of textile machinery
In 2016 the government also approved an amended technology upgradation funds scheme
(ATUFS) where the GoI has made a fresh allocation of INR515 billion as one time capital
subsidy for new investment apart from allocated budget of INR338 billion for limited liability
Through the ATUFS the GoI aims to attract an investment of INR1000 billion by 2018
Scheme for Integrated Textile Parks (SITP) 40 capital subsidy to a maximum of INR40 crore on
total project cost on projects approved by government Also 100 FDI allowed for textile sector
Incentives from Government of India (GoI)
For approvals the project report should be submitted to respective District Industries Centres
(DICs) DIC will forward the proposal to Industries Commissioner who will submit the report to
State Level Approver Committee (SLAC) for final approval
The basic custom duty on imported technical textile machinery has been reduced from 10 to 5
and support to start-ups is also provided
68 76 100400
1340
3900
FY11 FY12 FY13 FY14 FY15 FY16
Incentives to Textile and Apparel Sector from the Government of
Gujarat (INR million)
CAGR
125
During FY16 incentives provided
increased ~3 times y-o-y and are
expected to rise further
Approvals
Source
ldquoGujarat Textile Policyrdquo Industries and Mines Department Government of Gujarat 5 September 2012
ldquoManufacturing Sector ndash Profilerdquo Vibrant Gujarat website 7 October 2014
Industries Commissionerate website httpicgujaratgovinpage_id=3175 accessed on 1 June 2016
ldquoTextile industry welcomes amended TUFSrdquo Business Standard 2 January 2016
httpwwwbusiness-standardcomarticleeconomy-policyduty-drawback-sops-to-incentivise-high-value-garment-exports-116081800720_1html
GoI has increased the duty drawback of 32 to 47 (depending on the category) for exports of
non-fabric inputs made from imported fabrics to incentivize high value garment (HVG) exports
Office of The Industries Commissionerate
Block No 1 2nd Floor Udyog Bhavan
Gandhinagar 382 010 Gujarat
Ph 2325268323252617
Email ID iccordgujaratgovin
This project profile is based on preliminary study to facilitate prospective entrepreneurs to assess a prima facie scope
It is however advisable to get a detailed feasibility study prepared before taking a final investment decision
Gujarat Industrial Development Corporation
Industries amp Mines Department
Office of Industries Commissioner
wwwgidcgovin
wwwimd-gujaratgovin
wwwicgujaratgovin
Industrial Extension Bureau
wwwindextbcom
httptechnotexgovin
Ministry of Textiles Government of India
Controllerate of Quality Assurance (Textiles and Clothing)
wwwdgqadefencegovin
Page 7
Gujarat - Competitive AdvantageHigh raw material (cotton) availability
Gujarat Government initiatives
Three textile SEZs
in Ahmedabad were approved in 2014 with investment of ~INR5 billion
Two composite centers
to be established by 2019 in Ahmedabad and Surat
One CoE (Centre of Excellence)
in Gujarat will be developed by NTC (National Textile Corporation)
7 interest subsidy
on new plants and machinery for a period of 5 years for HVG and made-ups
33 of the cotton produced in India comes
from Gujarat
Surendranagar Jamnagar Rajkot
Bhavnagar and Amreli are the main cotton
producing districts
Cotton production is also supported by its
climatic and geographical conditions as the
state has black soil mixed with lime and
potash and ~50 cm rainfall that are optimum
for cotton cultivation
Also 57 of the cotton cultivations are
irrigated in Gujarat reducing dependence on
monsoons
98 103119
90
117
FY10 FY11 FY12 FY13 FY14
Cotton production in Gujarat (million bales)
As a of total production
in India
32 30 32 25 30
Surat Apparel Park
has been converted into a SEZ
Source
Cotton Corporation of India
International Journal of Research in Engineering IT and Social Sciences
ldquoTextile Sector Indiardquo EMIS (December 2015) accessed via EMIS database
ldquoTextiles And Apparelrdquo IBEF (January 2016) accessed via wwwibeforgdownloadTextiles-and-Apparel-January-2016pdf
ldquoVibrant Gujarat Manufacturing Sector Profilerdquo (October 2014) accessed via wwwvibrantgujaratcomwritereaddataimagespdfManufacturing-
Sector-Profilepdf
httpwwwinduseduorgpdfsIJREISSIJREISS_349_97270pdf
httpwwwvibrantgujaratcomwritereaddataimagespdfManufacturing-Sector-Profilepdf
httpwwwbusiness-standardcomarticleeconomy-policysurat-apparel-park-to-become-a-special-economic-zone-103122301077_1html
httpwwwnarendramodiingujarat-unveils-E28098navi-gujarat-vastranitiE28099-gujarat-textile-policy-2012-4720
~US$328 billion
Investment in the textile industry by 2020 creating 1 million jobs
Gujarat is home to several leading institutions in textile fashion and design such as
National Institute of Fashion Technology (Gadhinagar) the campus at Gandhinagar inaugurated in 2004 is designed to meet the demands of imparting creative education NIFT offers a variety of courses including BDes In Fashion Design Accessory Design Textile Design and Fashion Communication NIFT also offers a BFTechin Apparel Production
National Institute of Design NID was established in 1961 and has been a centrefor design education practice and research since NID offers professional education programmes at Bachelors and Masters level with five faculty streams and 20 diverse design domains
Ahmedabad Textile Industryrsquos Research Association Established in 1947 and starting in 1949 ATIRA is an autonomous non-profit association which is involved in textile research
Textile and Fashion Institutes
Page 8
Gujarat - Competitive Advantage
Textile hubs in Gujarat
Kutch ndash Textile
Handicrafts
Surendranagar
Manavadar
and Gondal ndash
Cotton ginning
Saurashtra ndash Hand printing
and processing
Ahmedabadndash
Denims
Ankaleshwar ndash
Technical
TextilesSurat ndash Silk city
Large number of textile hubs in Gujarat
High availability of skilled manpower for the textile sector
Gujarat has 28 Industrial Training Institutes
(ITIs) that offer industrial training courses on
Textile and Garment industry with an intake
of ~6000 students per year
These institutes offers specialized courses
in computer-aided dress making and dress
design pattern making and needle work
The government also provides assistance
and training to apparel training institutions
and the power loom sector
The margins of productivity of the garments
is lower due to which it becomes a natural
choice of the industry to target HVG market
in Gujarat
Gujarat has an established textile sector
with more than 1500 medium and large
textile units and 18 textile-related product
clusters
Large number of textile units are attributable
to high availability of raw materials with
Gujarat being the largest producer of cotton
in the country (production of ~12 million
bales in FY14)
Going forward the state plans to
significantly increase its textile production
capacity from the current level of ~50000
weaving looms
~50 of Indias art silk fabric is produced in
Surat alone
Gujarat is the largest producer of denim in
India (65) and the third largest in the world
Location of major educational institutions
Gandhinagar
Ahmedabad
Rajkot
Bhavnagar
Vadodara
Surat
Source
ldquoBaseline survey of the Technical Textile industry in Indiardquo Office of the Textile Commissioner 29 March 2016
ldquoManufacturing Sector ndash Profilerdquo Vibrant Gujarat website 7 October 2014
ldquoGujarat ndash Growth and Prosperity for Allrdquo Vibrant Gujarat website 25 August 2014
Page 9
Project Information
High Value Garment Processes
The High Value Garment process begins after the processing stage in the garmentapparel
production where the design and prototype of the designs are prepared and with the use of highly
sophisticated machinery and skilled manpower the final garments are produced
At this stage of garment apparel production ndash various types of value additions are done to give
the garments the high quality and aesthetic value along with branding
Source Textiles and Apparel IBEF Janurary 2016 (wwwibeforg)
lsquoValue Addition in Garment Industryrsquo Nishok TSR PSG Polytechnic College
Value addition for HVG
At the stages of processing and garment production value addition is done to finally make textiles
High Value Garments
Value addition of various types are done to provide the finished product with greater aesthetic
value and brand identity The value additions will also ensure increase the demand for high value
product with superior quality
The types of value additions are
Finishing ndash Mechanical and Chemical finishing
Printing ndash All over print chest print
Special processes ndash Tie and Dye Batiks Quilting
Closures ndash Button Zippers Velcro hooks and loops
Embroidery ndash Hand and Machine Embroidery
Raw Material
Cotton
Jute
Silk
Wool
Cashmere
Chiffon
Modal
Lycra
Tulle
Organza
Stretch Knits
Processing
Ginning ndash Fiber
Spinning ndash Yarn
WeavingKnitting
ndash Fabric
Processing ndash
Processed Fabric
GarmentApparel
Production
Final Garment
apparel
Value Addition
Fabric
Finishing
Printing
Special
Processes
Closure
Embroidery
Quality Check
Page 10
Project Information
Raw Materials for HVG
Silk
India is the second largest silk
producer in the world
contributing to ~18 of the total
global production It has the
distinction of all producing all 4
varieties of silk
In India some of the major silk
centres include Kanchivaram
Varansi and Bangalore
In Gujarat silk can be sourced
from major silk centres of Surat
and Cambay
In the High Value Garment segment which includes fashion and designer clothing silk satin and
cashmere are the three most commonly used fabrics
Raw materials used in High Value Garments are both sourced domestically and imported Some
of the imported and Indian fabrics used are cashmere satin Chiffon Tulle Organza Lycra Silk
and various other stretch knits
Satin
Satin although usually
classified in the same
category as silk has a few
distinctive features Satin
is more shiny compared
to silk and usually
incorporates some kind of
silk fabric into it but has a
dull back
Satin can be sourced
from major silk centres of
Surat as well
Cashmere
Cashmere is known for its long
lasting comfort and unbelievably
soft appearance
Designers around the world have
used this material Some of the
designer to use cashmere in their
fashion lines include ndash Kenneth
Cole Micheal Kors and Christian
Dior
India is a leading producer of this
material and can be sourced
locally
Supplier Name Key products Nearest Location
Usha International Sewing machinesSurat Gujarathttpwwwushacom
Meera Machine Tools Overlock machines Surat Gujarat
Super Sonic Impex Sewing machine motor Surat Gujarat
Juki India Private LtdIndustrial Sewing Machines hi-
tech sewing machinesAhmedabad Gujarat
Hi-tech Machines
Fusing Machines Collar Cutting
Machines Embossing Machines
Embroidery backup film
Removing Machine Lable or
Heat Transfer Machines
New Delhi
List of Machinery in India
Key Manufacturers in India
Arvind Limited
Levirsquos Strauss India Pvt
LtdAlok Industries
Madura Fashion amp Lifestyle Benetton India Pvt Ltd
Page 11
Potential collaboration opportunities
Source
iNDEXTb
ldquoDivisionsrdquo Arvind Limited website httpwwwarvindcomdivisionthearvindstorehtmMenuTab1
ldquoAbout usrdquo Madura Fashion amp Lifestyle website httpwwwmadurafnlcomabout_usabout_ushtml
httpwwwalokindcom
ldquoAbout usrdquo Lifestyle International website httpwwwlifestylestorescomaboutusphp
ldquoIndustry profile Apparel retail in Indiardquo Marketline May 2015 via ThomsonOne
rdquoOverviewrdquo Future Retail website httpfutureretailcoinabout-usoverview-retailhtml
ldquoBusiness Overviewrdquo Future Lifestyle website httpfuturelifestyleinbusiness_overviewhtml
ldquoRaymond Apparel Ltdrdquo Raymond India website httpwwwraymondindiacomgrp_ralaspVZpsNU0w8iQ
ldquoCorporaterdquo Shoppers Stop website httpcorporateshoppersstopcom
ldquoQuarterly Performance March 2015rdquo Shoppers Stop website httpcorporateshoppersstopcomuploaded_filesb602138-63dfpdf
ldquoAbout usrdquo Westside website httpswwwmywestsidecomWebPagesInnerPagesaboutusaspx
ldquoAbout usrdquo Pantaloons website httppantaloonscomcompanyabout-usoverview
Project Information
Key Considerations
Since this is a niche segment in the textile value chain high skill work force is essential
Institutes that offer specialized courses in computer-aided dress making and dress design
pattern making and needle work are to be promoted
Rising fashion trends amongst urban women increases the demand for knitted swimwear
sportswear sport-inspired footwear and yoga pants
HVG manufacturers can collaborate with
Machinery and raw material suppliers
Domestic and international apparel retail brands
Organization such as Gujarat Garment Manufacturers Association Ahmedabad Textile Mills Association South Gujarat Textile Processors Association which work towards the development of textile and garment industry in Gujarat
Institutions such as National Institute of Fashion Technology for the skill development of employees
Page 12
Project Information
Existing Textile Parks
1 MS Dholi Integrated Spinning Park Ltd Ahmedabad
2 Ms Karanj Textile Park Pvt Ltd Surat
3 Palsana Textile Park Pvt Ltd Surat
4 Dholka Textile Park Pvt Ltd Surat
5 Arvind Garments Park Pvt Ltd Ahmedabad
6 Ms Shalon Textile Park Pvt Ltd Surat
7 MS Jayraj Textile Park Pvt Ltd Surat
8 MS Shanti Integrated Textile Park Pvt Ltd
9 MS Giriraj Developers Surat
10 Rajhans Infracon (India) Pvt Ltd Surat
11 The Surat Vankar Sahakari Sangh Ltd Surat
12 Sanika Industrial Techno Park Surat
13 Ekta Enterprise Platinum Textile park Surat
14 NSP Infrastructure Pvt Ltd Surat
15 D D Spintex Park Pvt Ltd Bharuch
16 Gaytri Cotspin Park PPL Bharuch
S
No
Name of the Industrial Park Location Taluka District
1 Makson SEZ Pvt LTdOlak Chharad
Derwada MalikaLakhtar Surendranagar
2Madhukar Infrastructure Developers Pvt
Ltd
Jansali
BalolLimbdi Surendranagar
3 Satyesh infrastructures LLP Janiyadra narnavi Vagra Bharuch
4 Bhadresh Trading Corporation Ltd Varnora Zinkadi
PaiyaBhuj Kutch
5 B T C Cashkot Ind Ltd Bhuvad Anjar Kutch
6 Eco Green Industrial Park Pvt LTd Kharchi- Bhilwada Jhagadia Bharuch
7 Adharbhut Industrial Park Pvt LtdKava Madafar
Panchpipla VadJambusar Bharuch
8 Ample Industrial Park Pvt Ltd Vad Jantran Jambusar Bharuch
9 Damanganga Industrial Park Karvad Dungara Pardi Valsad
10 Green Field Industrial Park Pvt Ltd Kharchi- Bhilwada Jhagadia Bharuch
11 Ms Ratanakar Estate Developer Por Vadodara Vadodara
12 Ms Welspun Anjar SEZ Limited Varsamedi Anjar Kutchh
13 Ms Ratanakar Estate Developer Por Vadodara Vadodara
The Proposed Unit can be
developed anywhere in Gujarat
The preferred location for the
proposed unit would be in the
existing proposed parks or in the
vicinity of these parks in order to
have direct access to the eco
system
Proposed Upcoming Textile Parks
Page 13
Project Information
Proposed
The Mumbai-Ahmedabad bullet train project
will have Surat as one of the stations
In 2016 the Gujarat government assigned
Delhi Metro Rail Corporation as a consultant
for the proposed metro connectivity in Surat
Rail connectivity was proposed for Hazira and
Nargol ports in the 2016 rail budget
Proposed
Proposed four-lane highways which are
expected to improve connectivity in Surat
include ndash Dakor-Savli Vadodara-Dabhoi amp
Surat-Olpad-Bardoli
Proposed
In January 2015 Airports Authority of India
gave an in-principle approval for cargo
terminal at Surat airport worth INR70 million
The terminal is expected to be operational in
2017
In February 2016 Surat Airport Action
Committee filed an online petition for an
international airport at Surat
The nearest port is Hazira which is 25 km
from Surat
Additionally Hazira port is well connected
to Mundra port and Jawaharlal Nehru Port
Trust (JNPT) ndash Indiarsquos largest container
port
Thus it provides a convenient textiles-
related trade gateway to International
(Europe Africa America and the Middle
East) and domestic markets
Surat domestic airport is well connected to
various parts of the country The city is
located ~275 kms from the international
airport at Ahmedabad
Surat is connected with other districts of the
state such as Rajkot Vadodara and
Ahmedabad by rail
Hazira port in Surat is ~16 km away from the
Surat railway station
The city is connected to Delhi Mumbai
Industrial Corridor (DMIC) which links
Ahmedabad Vadodara and Surat
Proximity to NH-8 and NH-6 further
enhances connectivity in the city
Surat also has very good connectivity with
other cities of the state such as Vadodara
(154 km) and Ahmedabad (265 km)
Logistics amp Connectivity
Water for industrial purposes can be obtained
from four sources viz Gujarat Water Supply
and Sewerage Board (GWSSB) an irrigation
canal dams and surface reservoirs
The main source for the power supply is Torrent Power Limited in Surat
Power
Rail Road
Air Port
Water
Utility
Source
httpwwwfirstpostcominvestingfive-most-promising-indian-tier-ii-cities-you-should-invest-in-2796296html
httpdeshgujaratcom20150325clearances-by-july-works-for-nargol-port-to-start-next-yeargog
httptimesofindiaindiatimescomcitysuratMulti-mode-transportation-hub-soon-at-Surat-railway-stationarticleshow52095198cms
Page 14
Project Financials
Cost of setting up unit producing High Value Gents Shirts
and Trousers at Surat Apparel Park The proposed unit will have a
production capacity of 90000 Gents Shirts and Gents Trousers per month The quality of the
garments mainly depends on quality of fabric used Standards such as IS12675 IS4039 and
IS10194 will be complied with at the plant
Project cost
Project components amp specifications Cost (INR lakh)
Land (800 sq mtr)
Rate (INR 1500 per sq mtr as of May 2016)1
1200
Building Area (375 sq m) (built up) ( 3000 per sft) 1009
Factory Shed ndash 250 sq mt
Store (Raw Material) ndash 100 sq mt
Store (Finished Goods) ndash 75 sq mt
Land amp Building Component 1129
Machinery amp Equipment 250 ndash 27
Other Fixed Assets 30 ndash 50
Machinery 28 ndash 30
Total Capital Cost 140 - 143
Working Capital (Per Month)
Staff and Labor 2
Raw Material and Utilities 33
Total Recurring cost 35
Total Capital Investment
Machinery amp Equipment 28
Working capital for 3 months 105
Total Capital Investment 133
Source Project Profile on Gents Shirts and Trousers MSME ndash Development Institute Ministry of MSME GoI
Page 15
Project Financials
Source Project Profile on Gents Shirts and Trousers MSME ndash Development Institute Ministry of MSME GoI
Manager 1
Sales Representative 1
Accounts Officer 1
Production Manager 1
Cutting Master 1
Skilled Workers 55
Pressman 4
Unskilled workers 6
Manpower requirement in the proposed HVG manufacturing unit
Equipment Qty
Single Needle Lock Stitch Machine with motor 50
6rdquo Power driven cloth cutting machine 1
2 needle overlock safety stitching machine with trimmer 1
Double Needle Lock Stitch Machine 2
Button Hole Making Machine 1
Button Stitching Machine 1
Hot Fusing Press 1
Garment Washing Machine 1
Hydro extractor 25 kg capacity 1
Tumbler Dryer 25 kg capacity 1
Flat Bed Steam Iron Press with Vacuum Table 4
Zig Zag Embroidery Machine 1
Generator Set 30 KVA 1
Wash Room Trolleys 4
Machinery and Equipment
Page 16
Approvals amp Incentives
5 interest subsidy on bank loans for five years
for those who establish new plants for value
addition chain like ginning processing
weaving knitting and machine carpeting
7 interest subsidy on new plant and
machinery for five years for cotton spinning
garment manufacturing and technology up
gradation
Refund of value added tax (VAT) on expansion
of new units in spinning and power tariff
concession to cotton spinning and weaving
units
Financial assistance for skill development
centres for technology acquisition and also for
supporting energy and water conservation as
well as for environmental compliance
Incentives from Government of Gujarat
Under the Technology Upgradation Fund Scheme (TUFS) the GoI is offering 5 credit linked
interest subsidy on purchase of textile machinery
In 2016 the government also approved an amended technology upgradation funds scheme
(ATUFS) where the GoI has made a fresh allocation of INR515 billion as one time capital
subsidy for new investment apart from allocated budget of INR338 billion for limited liability
Through the ATUFS the GoI aims to attract an investment of INR1000 billion by 2018
Scheme for Integrated Textile Parks (SITP) 40 capital subsidy to a maximum of INR40 crore on
total project cost on projects approved by government Also 100 FDI allowed for textile sector
Incentives from Government of India (GoI)
For approvals the project report should be submitted to respective District Industries Centres
(DICs) DIC will forward the proposal to Industries Commissioner who will submit the report to
State Level Approver Committee (SLAC) for final approval
The basic custom duty on imported technical textile machinery has been reduced from 10 to 5
and support to start-ups is also provided
68 76 100400
1340
3900
FY11 FY12 FY13 FY14 FY15 FY16
Incentives to Textile and Apparel Sector from the Government of
Gujarat (INR million)
CAGR
125
During FY16 incentives provided
increased ~3 times y-o-y and are
expected to rise further
Approvals
Source
ldquoGujarat Textile Policyrdquo Industries and Mines Department Government of Gujarat 5 September 2012
ldquoManufacturing Sector ndash Profilerdquo Vibrant Gujarat website 7 October 2014
Industries Commissionerate website httpicgujaratgovinpage_id=3175 accessed on 1 June 2016
ldquoTextile industry welcomes amended TUFSrdquo Business Standard 2 January 2016
httpwwwbusiness-standardcomarticleeconomy-policyduty-drawback-sops-to-incentivise-high-value-garment-exports-116081800720_1html
GoI has increased the duty drawback of 32 to 47 (depending on the category) for exports of
non-fabric inputs made from imported fabrics to incentivize high value garment (HVG) exports
Office of The Industries Commissionerate
Block No 1 2nd Floor Udyog Bhavan
Gandhinagar 382 010 Gujarat
Ph 2325268323252617
Email ID iccordgujaratgovin
This project profile is based on preliminary study to facilitate prospective entrepreneurs to assess a prima facie scope
It is however advisable to get a detailed feasibility study prepared before taking a final investment decision
Gujarat Industrial Development Corporation
Industries amp Mines Department
Office of Industries Commissioner
wwwgidcgovin
wwwimd-gujaratgovin
wwwicgujaratgovin
Industrial Extension Bureau
wwwindextbcom
httptechnotexgovin
Ministry of Textiles Government of India
Controllerate of Quality Assurance (Textiles and Clothing)
wwwdgqadefencegovin
Page 8
Gujarat - Competitive Advantage
Textile hubs in Gujarat
Kutch ndash Textile
Handicrafts
Surendranagar
Manavadar
and Gondal ndash
Cotton ginning
Saurashtra ndash Hand printing
and processing
Ahmedabadndash
Denims
Ankaleshwar ndash
Technical
TextilesSurat ndash Silk city
Large number of textile hubs in Gujarat
High availability of skilled manpower for the textile sector
Gujarat has 28 Industrial Training Institutes
(ITIs) that offer industrial training courses on
Textile and Garment industry with an intake
of ~6000 students per year
These institutes offers specialized courses
in computer-aided dress making and dress
design pattern making and needle work
The government also provides assistance
and training to apparel training institutions
and the power loom sector
The margins of productivity of the garments
is lower due to which it becomes a natural
choice of the industry to target HVG market
in Gujarat
Gujarat has an established textile sector
with more than 1500 medium and large
textile units and 18 textile-related product
clusters
Large number of textile units are attributable
to high availability of raw materials with
Gujarat being the largest producer of cotton
in the country (production of ~12 million
bales in FY14)
Going forward the state plans to
significantly increase its textile production
capacity from the current level of ~50000
weaving looms
~50 of Indias art silk fabric is produced in
Surat alone
Gujarat is the largest producer of denim in
India (65) and the third largest in the world
Location of major educational institutions
Gandhinagar
Ahmedabad
Rajkot
Bhavnagar
Vadodara
Surat
Source
ldquoBaseline survey of the Technical Textile industry in Indiardquo Office of the Textile Commissioner 29 March 2016
ldquoManufacturing Sector ndash Profilerdquo Vibrant Gujarat website 7 October 2014
ldquoGujarat ndash Growth and Prosperity for Allrdquo Vibrant Gujarat website 25 August 2014
Page 9
Project Information
High Value Garment Processes
The High Value Garment process begins after the processing stage in the garmentapparel
production where the design and prototype of the designs are prepared and with the use of highly
sophisticated machinery and skilled manpower the final garments are produced
At this stage of garment apparel production ndash various types of value additions are done to give
the garments the high quality and aesthetic value along with branding
Source Textiles and Apparel IBEF Janurary 2016 (wwwibeforg)
lsquoValue Addition in Garment Industryrsquo Nishok TSR PSG Polytechnic College
Value addition for HVG
At the stages of processing and garment production value addition is done to finally make textiles
High Value Garments
Value addition of various types are done to provide the finished product with greater aesthetic
value and brand identity The value additions will also ensure increase the demand for high value
product with superior quality
The types of value additions are
Finishing ndash Mechanical and Chemical finishing
Printing ndash All over print chest print
Special processes ndash Tie and Dye Batiks Quilting
Closures ndash Button Zippers Velcro hooks and loops
Embroidery ndash Hand and Machine Embroidery
Raw Material
Cotton
Jute
Silk
Wool
Cashmere
Chiffon
Modal
Lycra
Tulle
Organza
Stretch Knits
Processing
Ginning ndash Fiber
Spinning ndash Yarn
WeavingKnitting
ndash Fabric
Processing ndash
Processed Fabric
GarmentApparel
Production
Final Garment
apparel
Value Addition
Fabric
Finishing
Printing
Special
Processes
Closure
Embroidery
Quality Check
Page 10
Project Information
Raw Materials for HVG
Silk
India is the second largest silk
producer in the world
contributing to ~18 of the total
global production It has the
distinction of all producing all 4
varieties of silk
In India some of the major silk
centres include Kanchivaram
Varansi and Bangalore
In Gujarat silk can be sourced
from major silk centres of Surat
and Cambay
In the High Value Garment segment which includes fashion and designer clothing silk satin and
cashmere are the three most commonly used fabrics
Raw materials used in High Value Garments are both sourced domestically and imported Some
of the imported and Indian fabrics used are cashmere satin Chiffon Tulle Organza Lycra Silk
and various other stretch knits
Satin
Satin although usually
classified in the same
category as silk has a few
distinctive features Satin
is more shiny compared
to silk and usually
incorporates some kind of
silk fabric into it but has a
dull back
Satin can be sourced
from major silk centres of
Surat as well
Cashmere
Cashmere is known for its long
lasting comfort and unbelievably
soft appearance
Designers around the world have
used this material Some of the
designer to use cashmere in their
fashion lines include ndash Kenneth
Cole Micheal Kors and Christian
Dior
India is a leading producer of this
material and can be sourced
locally
Supplier Name Key products Nearest Location
Usha International Sewing machinesSurat Gujarathttpwwwushacom
Meera Machine Tools Overlock machines Surat Gujarat
Super Sonic Impex Sewing machine motor Surat Gujarat
Juki India Private LtdIndustrial Sewing Machines hi-
tech sewing machinesAhmedabad Gujarat
Hi-tech Machines
Fusing Machines Collar Cutting
Machines Embossing Machines
Embroidery backup film
Removing Machine Lable or
Heat Transfer Machines
New Delhi
List of Machinery in India
Key Manufacturers in India
Arvind Limited
Levirsquos Strauss India Pvt
LtdAlok Industries
Madura Fashion amp Lifestyle Benetton India Pvt Ltd
Page 11
Potential collaboration opportunities
Source
iNDEXTb
ldquoDivisionsrdquo Arvind Limited website httpwwwarvindcomdivisionthearvindstorehtmMenuTab1
ldquoAbout usrdquo Madura Fashion amp Lifestyle website httpwwwmadurafnlcomabout_usabout_ushtml
httpwwwalokindcom
ldquoAbout usrdquo Lifestyle International website httpwwwlifestylestorescomaboutusphp
ldquoIndustry profile Apparel retail in Indiardquo Marketline May 2015 via ThomsonOne
rdquoOverviewrdquo Future Retail website httpfutureretailcoinabout-usoverview-retailhtml
ldquoBusiness Overviewrdquo Future Lifestyle website httpfuturelifestyleinbusiness_overviewhtml
ldquoRaymond Apparel Ltdrdquo Raymond India website httpwwwraymondindiacomgrp_ralaspVZpsNU0w8iQ
ldquoCorporaterdquo Shoppers Stop website httpcorporateshoppersstopcom
ldquoQuarterly Performance March 2015rdquo Shoppers Stop website httpcorporateshoppersstopcomuploaded_filesb602138-63dfpdf
ldquoAbout usrdquo Westside website httpswwwmywestsidecomWebPagesInnerPagesaboutusaspx
ldquoAbout usrdquo Pantaloons website httppantaloonscomcompanyabout-usoverview
Project Information
Key Considerations
Since this is a niche segment in the textile value chain high skill work force is essential
Institutes that offer specialized courses in computer-aided dress making and dress design
pattern making and needle work are to be promoted
Rising fashion trends amongst urban women increases the demand for knitted swimwear
sportswear sport-inspired footwear and yoga pants
HVG manufacturers can collaborate with
Machinery and raw material suppliers
Domestic and international apparel retail brands
Organization such as Gujarat Garment Manufacturers Association Ahmedabad Textile Mills Association South Gujarat Textile Processors Association which work towards the development of textile and garment industry in Gujarat
Institutions such as National Institute of Fashion Technology for the skill development of employees
Page 12
Project Information
Existing Textile Parks
1 MS Dholi Integrated Spinning Park Ltd Ahmedabad
2 Ms Karanj Textile Park Pvt Ltd Surat
3 Palsana Textile Park Pvt Ltd Surat
4 Dholka Textile Park Pvt Ltd Surat
5 Arvind Garments Park Pvt Ltd Ahmedabad
6 Ms Shalon Textile Park Pvt Ltd Surat
7 MS Jayraj Textile Park Pvt Ltd Surat
8 MS Shanti Integrated Textile Park Pvt Ltd
9 MS Giriraj Developers Surat
10 Rajhans Infracon (India) Pvt Ltd Surat
11 The Surat Vankar Sahakari Sangh Ltd Surat
12 Sanika Industrial Techno Park Surat
13 Ekta Enterprise Platinum Textile park Surat
14 NSP Infrastructure Pvt Ltd Surat
15 D D Spintex Park Pvt Ltd Bharuch
16 Gaytri Cotspin Park PPL Bharuch
S
No
Name of the Industrial Park Location Taluka District
1 Makson SEZ Pvt LTdOlak Chharad
Derwada MalikaLakhtar Surendranagar
2Madhukar Infrastructure Developers Pvt
Ltd
Jansali
BalolLimbdi Surendranagar
3 Satyesh infrastructures LLP Janiyadra narnavi Vagra Bharuch
4 Bhadresh Trading Corporation Ltd Varnora Zinkadi
PaiyaBhuj Kutch
5 B T C Cashkot Ind Ltd Bhuvad Anjar Kutch
6 Eco Green Industrial Park Pvt LTd Kharchi- Bhilwada Jhagadia Bharuch
7 Adharbhut Industrial Park Pvt LtdKava Madafar
Panchpipla VadJambusar Bharuch
8 Ample Industrial Park Pvt Ltd Vad Jantran Jambusar Bharuch
9 Damanganga Industrial Park Karvad Dungara Pardi Valsad
10 Green Field Industrial Park Pvt Ltd Kharchi- Bhilwada Jhagadia Bharuch
11 Ms Ratanakar Estate Developer Por Vadodara Vadodara
12 Ms Welspun Anjar SEZ Limited Varsamedi Anjar Kutchh
13 Ms Ratanakar Estate Developer Por Vadodara Vadodara
The Proposed Unit can be
developed anywhere in Gujarat
The preferred location for the
proposed unit would be in the
existing proposed parks or in the
vicinity of these parks in order to
have direct access to the eco
system
Proposed Upcoming Textile Parks
Page 13
Project Information
Proposed
The Mumbai-Ahmedabad bullet train project
will have Surat as one of the stations
In 2016 the Gujarat government assigned
Delhi Metro Rail Corporation as a consultant
for the proposed metro connectivity in Surat
Rail connectivity was proposed for Hazira and
Nargol ports in the 2016 rail budget
Proposed
Proposed four-lane highways which are
expected to improve connectivity in Surat
include ndash Dakor-Savli Vadodara-Dabhoi amp
Surat-Olpad-Bardoli
Proposed
In January 2015 Airports Authority of India
gave an in-principle approval for cargo
terminal at Surat airport worth INR70 million
The terminal is expected to be operational in
2017
In February 2016 Surat Airport Action
Committee filed an online petition for an
international airport at Surat
The nearest port is Hazira which is 25 km
from Surat
Additionally Hazira port is well connected
to Mundra port and Jawaharlal Nehru Port
Trust (JNPT) ndash Indiarsquos largest container
port
Thus it provides a convenient textiles-
related trade gateway to International
(Europe Africa America and the Middle
East) and domestic markets
Surat domestic airport is well connected to
various parts of the country The city is
located ~275 kms from the international
airport at Ahmedabad
Surat is connected with other districts of the
state such as Rajkot Vadodara and
Ahmedabad by rail
Hazira port in Surat is ~16 km away from the
Surat railway station
The city is connected to Delhi Mumbai
Industrial Corridor (DMIC) which links
Ahmedabad Vadodara and Surat
Proximity to NH-8 and NH-6 further
enhances connectivity in the city
Surat also has very good connectivity with
other cities of the state such as Vadodara
(154 km) and Ahmedabad (265 km)
Logistics amp Connectivity
Water for industrial purposes can be obtained
from four sources viz Gujarat Water Supply
and Sewerage Board (GWSSB) an irrigation
canal dams and surface reservoirs
The main source for the power supply is Torrent Power Limited in Surat
Power
Rail Road
Air Port
Water
Utility
Source
httpwwwfirstpostcominvestingfive-most-promising-indian-tier-ii-cities-you-should-invest-in-2796296html
httpdeshgujaratcom20150325clearances-by-july-works-for-nargol-port-to-start-next-yeargog
httptimesofindiaindiatimescomcitysuratMulti-mode-transportation-hub-soon-at-Surat-railway-stationarticleshow52095198cms
Page 14
Project Financials
Cost of setting up unit producing High Value Gents Shirts
and Trousers at Surat Apparel Park The proposed unit will have a
production capacity of 90000 Gents Shirts and Gents Trousers per month The quality of the
garments mainly depends on quality of fabric used Standards such as IS12675 IS4039 and
IS10194 will be complied with at the plant
Project cost
Project components amp specifications Cost (INR lakh)
Land (800 sq mtr)
Rate (INR 1500 per sq mtr as of May 2016)1
1200
Building Area (375 sq m) (built up) ( 3000 per sft) 1009
Factory Shed ndash 250 sq mt
Store (Raw Material) ndash 100 sq mt
Store (Finished Goods) ndash 75 sq mt
Land amp Building Component 1129
Machinery amp Equipment 250 ndash 27
Other Fixed Assets 30 ndash 50
Machinery 28 ndash 30
Total Capital Cost 140 - 143
Working Capital (Per Month)
Staff and Labor 2
Raw Material and Utilities 33
Total Recurring cost 35
Total Capital Investment
Machinery amp Equipment 28
Working capital for 3 months 105
Total Capital Investment 133
Source Project Profile on Gents Shirts and Trousers MSME ndash Development Institute Ministry of MSME GoI
Page 15
Project Financials
Source Project Profile on Gents Shirts and Trousers MSME ndash Development Institute Ministry of MSME GoI
Manager 1
Sales Representative 1
Accounts Officer 1
Production Manager 1
Cutting Master 1
Skilled Workers 55
Pressman 4
Unskilled workers 6
Manpower requirement in the proposed HVG manufacturing unit
Equipment Qty
Single Needle Lock Stitch Machine with motor 50
6rdquo Power driven cloth cutting machine 1
2 needle overlock safety stitching machine with trimmer 1
Double Needle Lock Stitch Machine 2
Button Hole Making Machine 1
Button Stitching Machine 1
Hot Fusing Press 1
Garment Washing Machine 1
Hydro extractor 25 kg capacity 1
Tumbler Dryer 25 kg capacity 1
Flat Bed Steam Iron Press with Vacuum Table 4
Zig Zag Embroidery Machine 1
Generator Set 30 KVA 1
Wash Room Trolleys 4
Machinery and Equipment
Page 16
Approvals amp Incentives
5 interest subsidy on bank loans for five years
for those who establish new plants for value
addition chain like ginning processing
weaving knitting and machine carpeting
7 interest subsidy on new plant and
machinery for five years for cotton spinning
garment manufacturing and technology up
gradation
Refund of value added tax (VAT) on expansion
of new units in spinning and power tariff
concession to cotton spinning and weaving
units
Financial assistance for skill development
centres for technology acquisition and also for
supporting energy and water conservation as
well as for environmental compliance
Incentives from Government of Gujarat
Under the Technology Upgradation Fund Scheme (TUFS) the GoI is offering 5 credit linked
interest subsidy on purchase of textile machinery
In 2016 the government also approved an amended technology upgradation funds scheme
(ATUFS) where the GoI has made a fresh allocation of INR515 billion as one time capital
subsidy for new investment apart from allocated budget of INR338 billion for limited liability
Through the ATUFS the GoI aims to attract an investment of INR1000 billion by 2018
Scheme for Integrated Textile Parks (SITP) 40 capital subsidy to a maximum of INR40 crore on
total project cost on projects approved by government Also 100 FDI allowed for textile sector
Incentives from Government of India (GoI)
For approvals the project report should be submitted to respective District Industries Centres
(DICs) DIC will forward the proposal to Industries Commissioner who will submit the report to
State Level Approver Committee (SLAC) for final approval
The basic custom duty on imported technical textile machinery has been reduced from 10 to 5
and support to start-ups is also provided
68 76 100400
1340
3900
FY11 FY12 FY13 FY14 FY15 FY16
Incentives to Textile and Apparel Sector from the Government of
Gujarat (INR million)
CAGR
125
During FY16 incentives provided
increased ~3 times y-o-y and are
expected to rise further
Approvals
Source
ldquoGujarat Textile Policyrdquo Industries and Mines Department Government of Gujarat 5 September 2012
ldquoManufacturing Sector ndash Profilerdquo Vibrant Gujarat website 7 October 2014
Industries Commissionerate website httpicgujaratgovinpage_id=3175 accessed on 1 June 2016
ldquoTextile industry welcomes amended TUFSrdquo Business Standard 2 January 2016
httpwwwbusiness-standardcomarticleeconomy-policyduty-drawback-sops-to-incentivise-high-value-garment-exports-116081800720_1html
GoI has increased the duty drawback of 32 to 47 (depending on the category) for exports of
non-fabric inputs made from imported fabrics to incentivize high value garment (HVG) exports
Office of The Industries Commissionerate
Block No 1 2nd Floor Udyog Bhavan
Gandhinagar 382 010 Gujarat
Ph 2325268323252617
Email ID iccordgujaratgovin
This project profile is based on preliminary study to facilitate prospective entrepreneurs to assess a prima facie scope
It is however advisable to get a detailed feasibility study prepared before taking a final investment decision
Gujarat Industrial Development Corporation
Industries amp Mines Department
Office of Industries Commissioner
wwwgidcgovin
wwwimd-gujaratgovin
wwwicgujaratgovin
Industrial Extension Bureau
wwwindextbcom
httptechnotexgovin
Ministry of Textiles Government of India
Controllerate of Quality Assurance (Textiles and Clothing)
wwwdgqadefencegovin
Page 9
Project Information
High Value Garment Processes
The High Value Garment process begins after the processing stage in the garmentapparel
production where the design and prototype of the designs are prepared and with the use of highly
sophisticated machinery and skilled manpower the final garments are produced
At this stage of garment apparel production ndash various types of value additions are done to give
the garments the high quality and aesthetic value along with branding
Source Textiles and Apparel IBEF Janurary 2016 (wwwibeforg)
lsquoValue Addition in Garment Industryrsquo Nishok TSR PSG Polytechnic College
Value addition for HVG
At the stages of processing and garment production value addition is done to finally make textiles
High Value Garments
Value addition of various types are done to provide the finished product with greater aesthetic
value and brand identity The value additions will also ensure increase the demand for high value
product with superior quality
The types of value additions are
Finishing ndash Mechanical and Chemical finishing
Printing ndash All over print chest print
Special processes ndash Tie and Dye Batiks Quilting
Closures ndash Button Zippers Velcro hooks and loops
Embroidery ndash Hand and Machine Embroidery
Raw Material
Cotton
Jute
Silk
Wool
Cashmere
Chiffon
Modal
Lycra
Tulle
Organza
Stretch Knits
Processing
Ginning ndash Fiber
Spinning ndash Yarn
WeavingKnitting
ndash Fabric
Processing ndash
Processed Fabric
GarmentApparel
Production
Final Garment
apparel
Value Addition
Fabric
Finishing
Printing
Special
Processes
Closure
Embroidery
Quality Check
Page 10
Project Information
Raw Materials for HVG
Silk
India is the second largest silk
producer in the world
contributing to ~18 of the total
global production It has the
distinction of all producing all 4
varieties of silk
In India some of the major silk
centres include Kanchivaram
Varansi and Bangalore
In Gujarat silk can be sourced
from major silk centres of Surat
and Cambay
In the High Value Garment segment which includes fashion and designer clothing silk satin and
cashmere are the three most commonly used fabrics
Raw materials used in High Value Garments are both sourced domestically and imported Some
of the imported and Indian fabrics used are cashmere satin Chiffon Tulle Organza Lycra Silk
and various other stretch knits
Satin
Satin although usually
classified in the same
category as silk has a few
distinctive features Satin
is more shiny compared
to silk and usually
incorporates some kind of
silk fabric into it but has a
dull back
Satin can be sourced
from major silk centres of
Surat as well
Cashmere
Cashmere is known for its long
lasting comfort and unbelievably
soft appearance
Designers around the world have
used this material Some of the
designer to use cashmere in their
fashion lines include ndash Kenneth
Cole Micheal Kors and Christian
Dior
India is a leading producer of this
material and can be sourced
locally
Supplier Name Key products Nearest Location
Usha International Sewing machinesSurat Gujarathttpwwwushacom
Meera Machine Tools Overlock machines Surat Gujarat
Super Sonic Impex Sewing machine motor Surat Gujarat
Juki India Private LtdIndustrial Sewing Machines hi-
tech sewing machinesAhmedabad Gujarat
Hi-tech Machines
Fusing Machines Collar Cutting
Machines Embossing Machines
Embroidery backup film
Removing Machine Lable or
Heat Transfer Machines
New Delhi
List of Machinery in India
Key Manufacturers in India
Arvind Limited
Levirsquos Strauss India Pvt
LtdAlok Industries
Madura Fashion amp Lifestyle Benetton India Pvt Ltd
Page 11
Potential collaboration opportunities
Source
iNDEXTb
ldquoDivisionsrdquo Arvind Limited website httpwwwarvindcomdivisionthearvindstorehtmMenuTab1
ldquoAbout usrdquo Madura Fashion amp Lifestyle website httpwwwmadurafnlcomabout_usabout_ushtml
httpwwwalokindcom
ldquoAbout usrdquo Lifestyle International website httpwwwlifestylestorescomaboutusphp
ldquoIndustry profile Apparel retail in Indiardquo Marketline May 2015 via ThomsonOne
rdquoOverviewrdquo Future Retail website httpfutureretailcoinabout-usoverview-retailhtml
ldquoBusiness Overviewrdquo Future Lifestyle website httpfuturelifestyleinbusiness_overviewhtml
ldquoRaymond Apparel Ltdrdquo Raymond India website httpwwwraymondindiacomgrp_ralaspVZpsNU0w8iQ
ldquoCorporaterdquo Shoppers Stop website httpcorporateshoppersstopcom
ldquoQuarterly Performance March 2015rdquo Shoppers Stop website httpcorporateshoppersstopcomuploaded_filesb602138-63dfpdf
ldquoAbout usrdquo Westside website httpswwwmywestsidecomWebPagesInnerPagesaboutusaspx
ldquoAbout usrdquo Pantaloons website httppantaloonscomcompanyabout-usoverview
Project Information
Key Considerations
Since this is a niche segment in the textile value chain high skill work force is essential
Institutes that offer specialized courses in computer-aided dress making and dress design
pattern making and needle work are to be promoted
Rising fashion trends amongst urban women increases the demand for knitted swimwear
sportswear sport-inspired footwear and yoga pants
HVG manufacturers can collaborate with
Machinery and raw material suppliers
Domestic and international apparel retail brands
Organization such as Gujarat Garment Manufacturers Association Ahmedabad Textile Mills Association South Gujarat Textile Processors Association which work towards the development of textile and garment industry in Gujarat
Institutions such as National Institute of Fashion Technology for the skill development of employees
Page 12
Project Information
Existing Textile Parks
1 MS Dholi Integrated Spinning Park Ltd Ahmedabad
2 Ms Karanj Textile Park Pvt Ltd Surat
3 Palsana Textile Park Pvt Ltd Surat
4 Dholka Textile Park Pvt Ltd Surat
5 Arvind Garments Park Pvt Ltd Ahmedabad
6 Ms Shalon Textile Park Pvt Ltd Surat
7 MS Jayraj Textile Park Pvt Ltd Surat
8 MS Shanti Integrated Textile Park Pvt Ltd
9 MS Giriraj Developers Surat
10 Rajhans Infracon (India) Pvt Ltd Surat
11 The Surat Vankar Sahakari Sangh Ltd Surat
12 Sanika Industrial Techno Park Surat
13 Ekta Enterprise Platinum Textile park Surat
14 NSP Infrastructure Pvt Ltd Surat
15 D D Spintex Park Pvt Ltd Bharuch
16 Gaytri Cotspin Park PPL Bharuch
S
No
Name of the Industrial Park Location Taluka District
1 Makson SEZ Pvt LTdOlak Chharad
Derwada MalikaLakhtar Surendranagar
2Madhukar Infrastructure Developers Pvt
Ltd
Jansali
BalolLimbdi Surendranagar
3 Satyesh infrastructures LLP Janiyadra narnavi Vagra Bharuch
4 Bhadresh Trading Corporation Ltd Varnora Zinkadi
PaiyaBhuj Kutch
5 B T C Cashkot Ind Ltd Bhuvad Anjar Kutch
6 Eco Green Industrial Park Pvt LTd Kharchi- Bhilwada Jhagadia Bharuch
7 Adharbhut Industrial Park Pvt LtdKava Madafar
Panchpipla VadJambusar Bharuch
8 Ample Industrial Park Pvt Ltd Vad Jantran Jambusar Bharuch
9 Damanganga Industrial Park Karvad Dungara Pardi Valsad
10 Green Field Industrial Park Pvt Ltd Kharchi- Bhilwada Jhagadia Bharuch
11 Ms Ratanakar Estate Developer Por Vadodara Vadodara
12 Ms Welspun Anjar SEZ Limited Varsamedi Anjar Kutchh
13 Ms Ratanakar Estate Developer Por Vadodara Vadodara
The Proposed Unit can be
developed anywhere in Gujarat
The preferred location for the
proposed unit would be in the
existing proposed parks or in the
vicinity of these parks in order to
have direct access to the eco
system
Proposed Upcoming Textile Parks
Page 13
Project Information
Proposed
The Mumbai-Ahmedabad bullet train project
will have Surat as one of the stations
In 2016 the Gujarat government assigned
Delhi Metro Rail Corporation as a consultant
for the proposed metro connectivity in Surat
Rail connectivity was proposed for Hazira and
Nargol ports in the 2016 rail budget
Proposed
Proposed four-lane highways which are
expected to improve connectivity in Surat
include ndash Dakor-Savli Vadodara-Dabhoi amp
Surat-Olpad-Bardoli
Proposed
In January 2015 Airports Authority of India
gave an in-principle approval for cargo
terminal at Surat airport worth INR70 million
The terminal is expected to be operational in
2017
In February 2016 Surat Airport Action
Committee filed an online petition for an
international airport at Surat
The nearest port is Hazira which is 25 km
from Surat
Additionally Hazira port is well connected
to Mundra port and Jawaharlal Nehru Port
Trust (JNPT) ndash Indiarsquos largest container
port
Thus it provides a convenient textiles-
related trade gateway to International
(Europe Africa America and the Middle
East) and domestic markets
Surat domestic airport is well connected to
various parts of the country The city is
located ~275 kms from the international
airport at Ahmedabad
Surat is connected with other districts of the
state such as Rajkot Vadodara and
Ahmedabad by rail
Hazira port in Surat is ~16 km away from the
Surat railway station
The city is connected to Delhi Mumbai
Industrial Corridor (DMIC) which links
Ahmedabad Vadodara and Surat
Proximity to NH-8 and NH-6 further
enhances connectivity in the city
Surat also has very good connectivity with
other cities of the state such as Vadodara
(154 km) and Ahmedabad (265 km)
Logistics amp Connectivity
Water for industrial purposes can be obtained
from four sources viz Gujarat Water Supply
and Sewerage Board (GWSSB) an irrigation
canal dams and surface reservoirs
The main source for the power supply is Torrent Power Limited in Surat
Power
Rail Road
Air Port
Water
Utility
Source
httpwwwfirstpostcominvestingfive-most-promising-indian-tier-ii-cities-you-should-invest-in-2796296html
httpdeshgujaratcom20150325clearances-by-july-works-for-nargol-port-to-start-next-yeargog
httptimesofindiaindiatimescomcitysuratMulti-mode-transportation-hub-soon-at-Surat-railway-stationarticleshow52095198cms
Page 14
Project Financials
Cost of setting up unit producing High Value Gents Shirts
and Trousers at Surat Apparel Park The proposed unit will have a
production capacity of 90000 Gents Shirts and Gents Trousers per month The quality of the
garments mainly depends on quality of fabric used Standards such as IS12675 IS4039 and
IS10194 will be complied with at the plant
Project cost
Project components amp specifications Cost (INR lakh)
Land (800 sq mtr)
Rate (INR 1500 per sq mtr as of May 2016)1
1200
Building Area (375 sq m) (built up) ( 3000 per sft) 1009
Factory Shed ndash 250 sq mt
Store (Raw Material) ndash 100 sq mt
Store (Finished Goods) ndash 75 sq mt
Land amp Building Component 1129
Machinery amp Equipment 250 ndash 27
Other Fixed Assets 30 ndash 50
Machinery 28 ndash 30
Total Capital Cost 140 - 143
Working Capital (Per Month)
Staff and Labor 2
Raw Material and Utilities 33
Total Recurring cost 35
Total Capital Investment
Machinery amp Equipment 28
Working capital for 3 months 105
Total Capital Investment 133
Source Project Profile on Gents Shirts and Trousers MSME ndash Development Institute Ministry of MSME GoI
Page 15
Project Financials
Source Project Profile on Gents Shirts and Trousers MSME ndash Development Institute Ministry of MSME GoI
Manager 1
Sales Representative 1
Accounts Officer 1
Production Manager 1
Cutting Master 1
Skilled Workers 55
Pressman 4
Unskilled workers 6
Manpower requirement in the proposed HVG manufacturing unit
Equipment Qty
Single Needle Lock Stitch Machine with motor 50
6rdquo Power driven cloth cutting machine 1
2 needle overlock safety stitching machine with trimmer 1
Double Needle Lock Stitch Machine 2
Button Hole Making Machine 1
Button Stitching Machine 1
Hot Fusing Press 1
Garment Washing Machine 1
Hydro extractor 25 kg capacity 1
Tumbler Dryer 25 kg capacity 1
Flat Bed Steam Iron Press with Vacuum Table 4
Zig Zag Embroidery Machine 1
Generator Set 30 KVA 1
Wash Room Trolleys 4
Machinery and Equipment
Page 16
Approvals amp Incentives
5 interest subsidy on bank loans for five years
for those who establish new plants for value
addition chain like ginning processing
weaving knitting and machine carpeting
7 interest subsidy on new plant and
machinery for five years for cotton spinning
garment manufacturing and technology up
gradation
Refund of value added tax (VAT) on expansion
of new units in spinning and power tariff
concession to cotton spinning and weaving
units
Financial assistance for skill development
centres for technology acquisition and also for
supporting energy and water conservation as
well as for environmental compliance
Incentives from Government of Gujarat
Under the Technology Upgradation Fund Scheme (TUFS) the GoI is offering 5 credit linked
interest subsidy on purchase of textile machinery
In 2016 the government also approved an amended technology upgradation funds scheme
(ATUFS) where the GoI has made a fresh allocation of INR515 billion as one time capital
subsidy for new investment apart from allocated budget of INR338 billion for limited liability
Through the ATUFS the GoI aims to attract an investment of INR1000 billion by 2018
Scheme for Integrated Textile Parks (SITP) 40 capital subsidy to a maximum of INR40 crore on
total project cost on projects approved by government Also 100 FDI allowed for textile sector
Incentives from Government of India (GoI)
For approvals the project report should be submitted to respective District Industries Centres
(DICs) DIC will forward the proposal to Industries Commissioner who will submit the report to
State Level Approver Committee (SLAC) for final approval
The basic custom duty on imported technical textile machinery has been reduced from 10 to 5
and support to start-ups is also provided
68 76 100400
1340
3900
FY11 FY12 FY13 FY14 FY15 FY16
Incentives to Textile and Apparel Sector from the Government of
Gujarat (INR million)
CAGR
125
During FY16 incentives provided
increased ~3 times y-o-y and are
expected to rise further
Approvals
Source
ldquoGujarat Textile Policyrdquo Industries and Mines Department Government of Gujarat 5 September 2012
ldquoManufacturing Sector ndash Profilerdquo Vibrant Gujarat website 7 October 2014
Industries Commissionerate website httpicgujaratgovinpage_id=3175 accessed on 1 June 2016
ldquoTextile industry welcomes amended TUFSrdquo Business Standard 2 January 2016
httpwwwbusiness-standardcomarticleeconomy-policyduty-drawback-sops-to-incentivise-high-value-garment-exports-116081800720_1html
GoI has increased the duty drawback of 32 to 47 (depending on the category) for exports of
non-fabric inputs made from imported fabrics to incentivize high value garment (HVG) exports
Office of The Industries Commissionerate
Block No 1 2nd Floor Udyog Bhavan
Gandhinagar 382 010 Gujarat
Ph 2325268323252617
Email ID iccordgujaratgovin
This project profile is based on preliminary study to facilitate prospective entrepreneurs to assess a prima facie scope
It is however advisable to get a detailed feasibility study prepared before taking a final investment decision
Gujarat Industrial Development Corporation
Industries amp Mines Department
Office of Industries Commissioner
wwwgidcgovin
wwwimd-gujaratgovin
wwwicgujaratgovin
Industrial Extension Bureau
wwwindextbcom
httptechnotexgovin
Ministry of Textiles Government of India
Controllerate of Quality Assurance (Textiles and Clothing)
wwwdgqadefencegovin
Page 10
Project Information
Raw Materials for HVG
Silk
India is the second largest silk
producer in the world
contributing to ~18 of the total
global production It has the
distinction of all producing all 4
varieties of silk
In India some of the major silk
centres include Kanchivaram
Varansi and Bangalore
In Gujarat silk can be sourced
from major silk centres of Surat
and Cambay
In the High Value Garment segment which includes fashion and designer clothing silk satin and
cashmere are the three most commonly used fabrics
Raw materials used in High Value Garments are both sourced domestically and imported Some
of the imported and Indian fabrics used are cashmere satin Chiffon Tulle Organza Lycra Silk
and various other stretch knits
Satin
Satin although usually
classified in the same
category as silk has a few
distinctive features Satin
is more shiny compared
to silk and usually
incorporates some kind of
silk fabric into it but has a
dull back
Satin can be sourced
from major silk centres of
Surat as well
Cashmere
Cashmere is known for its long
lasting comfort and unbelievably
soft appearance
Designers around the world have
used this material Some of the
designer to use cashmere in their
fashion lines include ndash Kenneth
Cole Micheal Kors and Christian
Dior
India is a leading producer of this
material and can be sourced
locally
Supplier Name Key products Nearest Location
Usha International Sewing machinesSurat Gujarathttpwwwushacom
Meera Machine Tools Overlock machines Surat Gujarat
Super Sonic Impex Sewing machine motor Surat Gujarat
Juki India Private LtdIndustrial Sewing Machines hi-
tech sewing machinesAhmedabad Gujarat
Hi-tech Machines
Fusing Machines Collar Cutting
Machines Embossing Machines
Embroidery backup film
Removing Machine Lable or
Heat Transfer Machines
New Delhi
List of Machinery in India
Key Manufacturers in India
Arvind Limited
Levirsquos Strauss India Pvt
LtdAlok Industries
Madura Fashion amp Lifestyle Benetton India Pvt Ltd
Page 11
Potential collaboration opportunities
Source
iNDEXTb
ldquoDivisionsrdquo Arvind Limited website httpwwwarvindcomdivisionthearvindstorehtmMenuTab1
ldquoAbout usrdquo Madura Fashion amp Lifestyle website httpwwwmadurafnlcomabout_usabout_ushtml
httpwwwalokindcom
ldquoAbout usrdquo Lifestyle International website httpwwwlifestylestorescomaboutusphp
ldquoIndustry profile Apparel retail in Indiardquo Marketline May 2015 via ThomsonOne
rdquoOverviewrdquo Future Retail website httpfutureretailcoinabout-usoverview-retailhtml
ldquoBusiness Overviewrdquo Future Lifestyle website httpfuturelifestyleinbusiness_overviewhtml
ldquoRaymond Apparel Ltdrdquo Raymond India website httpwwwraymondindiacomgrp_ralaspVZpsNU0w8iQ
ldquoCorporaterdquo Shoppers Stop website httpcorporateshoppersstopcom
ldquoQuarterly Performance March 2015rdquo Shoppers Stop website httpcorporateshoppersstopcomuploaded_filesb602138-63dfpdf
ldquoAbout usrdquo Westside website httpswwwmywestsidecomWebPagesInnerPagesaboutusaspx
ldquoAbout usrdquo Pantaloons website httppantaloonscomcompanyabout-usoverview
Project Information
Key Considerations
Since this is a niche segment in the textile value chain high skill work force is essential
Institutes that offer specialized courses in computer-aided dress making and dress design
pattern making and needle work are to be promoted
Rising fashion trends amongst urban women increases the demand for knitted swimwear
sportswear sport-inspired footwear and yoga pants
HVG manufacturers can collaborate with
Machinery and raw material suppliers
Domestic and international apparel retail brands
Organization such as Gujarat Garment Manufacturers Association Ahmedabad Textile Mills Association South Gujarat Textile Processors Association which work towards the development of textile and garment industry in Gujarat
Institutions such as National Institute of Fashion Technology for the skill development of employees
Page 12
Project Information
Existing Textile Parks
1 MS Dholi Integrated Spinning Park Ltd Ahmedabad
2 Ms Karanj Textile Park Pvt Ltd Surat
3 Palsana Textile Park Pvt Ltd Surat
4 Dholka Textile Park Pvt Ltd Surat
5 Arvind Garments Park Pvt Ltd Ahmedabad
6 Ms Shalon Textile Park Pvt Ltd Surat
7 MS Jayraj Textile Park Pvt Ltd Surat
8 MS Shanti Integrated Textile Park Pvt Ltd
9 MS Giriraj Developers Surat
10 Rajhans Infracon (India) Pvt Ltd Surat
11 The Surat Vankar Sahakari Sangh Ltd Surat
12 Sanika Industrial Techno Park Surat
13 Ekta Enterprise Platinum Textile park Surat
14 NSP Infrastructure Pvt Ltd Surat
15 D D Spintex Park Pvt Ltd Bharuch
16 Gaytri Cotspin Park PPL Bharuch
S
No
Name of the Industrial Park Location Taluka District
1 Makson SEZ Pvt LTdOlak Chharad
Derwada MalikaLakhtar Surendranagar
2Madhukar Infrastructure Developers Pvt
Ltd
Jansali
BalolLimbdi Surendranagar
3 Satyesh infrastructures LLP Janiyadra narnavi Vagra Bharuch
4 Bhadresh Trading Corporation Ltd Varnora Zinkadi
PaiyaBhuj Kutch
5 B T C Cashkot Ind Ltd Bhuvad Anjar Kutch
6 Eco Green Industrial Park Pvt LTd Kharchi- Bhilwada Jhagadia Bharuch
7 Adharbhut Industrial Park Pvt LtdKava Madafar
Panchpipla VadJambusar Bharuch
8 Ample Industrial Park Pvt Ltd Vad Jantran Jambusar Bharuch
9 Damanganga Industrial Park Karvad Dungara Pardi Valsad
10 Green Field Industrial Park Pvt Ltd Kharchi- Bhilwada Jhagadia Bharuch
11 Ms Ratanakar Estate Developer Por Vadodara Vadodara
12 Ms Welspun Anjar SEZ Limited Varsamedi Anjar Kutchh
13 Ms Ratanakar Estate Developer Por Vadodara Vadodara
The Proposed Unit can be
developed anywhere in Gujarat
The preferred location for the
proposed unit would be in the
existing proposed parks or in the
vicinity of these parks in order to
have direct access to the eco
system
Proposed Upcoming Textile Parks
Page 13
Project Information
Proposed
The Mumbai-Ahmedabad bullet train project
will have Surat as one of the stations
In 2016 the Gujarat government assigned
Delhi Metro Rail Corporation as a consultant
for the proposed metro connectivity in Surat
Rail connectivity was proposed for Hazira and
Nargol ports in the 2016 rail budget
Proposed
Proposed four-lane highways which are
expected to improve connectivity in Surat
include ndash Dakor-Savli Vadodara-Dabhoi amp
Surat-Olpad-Bardoli
Proposed
In January 2015 Airports Authority of India
gave an in-principle approval for cargo
terminal at Surat airport worth INR70 million
The terminal is expected to be operational in
2017
In February 2016 Surat Airport Action
Committee filed an online petition for an
international airport at Surat
The nearest port is Hazira which is 25 km
from Surat
Additionally Hazira port is well connected
to Mundra port and Jawaharlal Nehru Port
Trust (JNPT) ndash Indiarsquos largest container
port
Thus it provides a convenient textiles-
related trade gateway to International
(Europe Africa America and the Middle
East) and domestic markets
Surat domestic airport is well connected to
various parts of the country The city is
located ~275 kms from the international
airport at Ahmedabad
Surat is connected with other districts of the
state such as Rajkot Vadodara and
Ahmedabad by rail
Hazira port in Surat is ~16 km away from the
Surat railway station
The city is connected to Delhi Mumbai
Industrial Corridor (DMIC) which links
Ahmedabad Vadodara and Surat
Proximity to NH-8 and NH-6 further
enhances connectivity in the city
Surat also has very good connectivity with
other cities of the state such as Vadodara
(154 km) and Ahmedabad (265 km)
Logistics amp Connectivity
Water for industrial purposes can be obtained
from four sources viz Gujarat Water Supply
and Sewerage Board (GWSSB) an irrigation
canal dams and surface reservoirs
The main source for the power supply is Torrent Power Limited in Surat
Power
Rail Road
Air Port
Water
Utility
Source
httpwwwfirstpostcominvestingfive-most-promising-indian-tier-ii-cities-you-should-invest-in-2796296html
httpdeshgujaratcom20150325clearances-by-july-works-for-nargol-port-to-start-next-yeargog
httptimesofindiaindiatimescomcitysuratMulti-mode-transportation-hub-soon-at-Surat-railway-stationarticleshow52095198cms
Page 14
Project Financials
Cost of setting up unit producing High Value Gents Shirts
and Trousers at Surat Apparel Park The proposed unit will have a
production capacity of 90000 Gents Shirts and Gents Trousers per month The quality of the
garments mainly depends on quality of fabric used Standards such as IS12675 IS4039 and
IS10194 will be complied with at the plant
Project cost
Project components amp specifications Cost (INR lakh)
Land (800 sq mtr)
Rate (INR 1500 per sq mtr as of May 2016)1
1200
Building Area (375 sq m) (built up) ( 3000 per sft) 1009
Factory Shed ndash 250 sq mt
Store (Raw Material) ndash 100 sq mt
Store (Finished Goods) ndash 75 sq mt
Land amp Building Component 1129
Machinery amp Equipment 250 ndash 27
Other Fixed Assets 30 ndash 50
Machinery 28 ndash 30
Total Capital Cost 140 - 143
Working Capital (Per Month)
Staff and Labor 2
Raw Material and Utilities 33
Total Recurring cost 35
Total Capital Investment
Machinery amp Equipment 28
Working capital for 3 months 105
Total Capital Investment 133
Source Project Profile on Gents Shirts and Trousers MSME ndash Development Institute Ministry of MSME GoI
Page 15
Project Financials
Source Project Profile on Gents Shirts and Trousers MSME ndash Development Institute Ministry of MSME GoI
Manager 1
Sales Representative 1
Accounts Officer 1
Production Manager 1
Cutting Master 1
Skilled Workers 55
Pressman 4
Unskilled workers 6
Manpower requirement in the proposed HVG manufacturing unit
Equipment Qty
Single Needle Lock Stitch Machine with motor 50
6rdquo Power driven cloth cutting machine 1
2 needle overlock safety stitching machine with trimmer 1
Double Needle Lock Stitch Machine 2
Button Hole Making Machine 1
Button Stitching Machine 1
Hot Fusing Press 1
Garment Washing Machine 1
Hydro extractor 25 kg capacity 1
Tumbler Dryer 25 kg capacity 1
Flat Bed Steam Iron Press with Vacuum Table 4
Zig Zag Embroidery Machine 1
Generator Set 30 KVA 1
Wash Room Trolleys 4
Machinery and Equipment
Page 16
Approvals amp Incentives
5 interest subsidy on bank loans for five years
for those who establish new plants for value
addition chain like ginning processing
weaving knitting and machine carpeting
7 interest subsidy on new plant and
machinery for five years for cotton spinning
garment manufacturing and technology up
gradation
Refund of value added tax (VAT) on expansion
of new units in spinning and power tariff
concession to cotton spinning and weaving
units
Financial assistance for skill development
centres for technology acquisition and also for
supporting energy and water conservation as
well as for environmental compliance
Incentives from Government of Gujarat
Under the Technology Upgradation Fund Scheme (TUFS) the GoI is offering 5 credit linked
interest subsidy on purchase of textile machinery
In 2016 the government also approved an amended technology upgradation funds scheme
(ATUFS) where the GoI has made a fresh allocation of INR515 billion as one time capital
subsidy for new investment apart from allocated budget of INR338 billion for limited liability
Through the ATUFS the GoI aims to attract an investment of INR1000 billion by 2018
Scheme for Integrated Textile Parks (SITP) 40 capital subsidy to a maximum of INR40 crore on
total project cost on projects approved by government Also 100 FDI allowed for textile sector
Incentives from Government of India (GoI)
For approvals the project report should be submitted to respective District Industries Centres
(DICs) DIC will forward the proposal to Industries Commissioner who will submit the report to
State Level Approver Committee (SLAC) for final approval
The basic custom duty on imported technical textile machinery has been reduced from 10 to 5
and support to start-ups is also provided
68 76 100400
1340
3900
FY11 FY12 FY13 FY14 FY15 FY16
Incentives to Textile and Apparel Sector from the Government of
Gujarat (INR million)
CAGR
125
During FY16 incentives provided
increased ~3 times y-o-y and are
expected to rise further
Approvals
Source
ldquoGujarat Textile Policyrdquo Industries and Mines Department Government of Gujarat 5 September 2012
ldquoManufacturing Sector ndash Profilerdquo Vibrant Gujarat website 7 October 2014
Industries Commissionerate website httpicgujaratgovinpage_id=3175 accessed on 1 June 2016
ldquoTextile industry welcomes amended TUFSrdquo Business Standard 2 January 2016
httpwwwbusiness-standardcomarticleeconomy-policyduty-drawback-sops-to-incentivise-high-value-garment-exports-116081800720_1html
GoI has increased the duty drawback of 32 to 47 (depending on the category) for exports of
non-fabric inputs made from imported fabrics to incentivize high value garment (HVG) exports
Office of The Industries Commissionerate
Block No 1 2nd Floor Udyog Bhavan
Gandhinagar 382 010 Gujarat
Ph 2325268323252617
Email ID iccordgujaratgovin
This project profile is based on preliminary study to facilitate prospective entrepreneurs to assess a prima facie scope
It is however advisable to get a detailed feasibility study prepared before taking a final investment decision
Gujarat Industrial Development Corporation
Industries amp Mines Department
Office of Industries Commissioner
wwwgidcgovin
wwwimd-gujaratgovin
wwwicgujaratgovin
Industrial Extension Bureau
wwwindextbcom
httptechnotexgovin
Ministry of Textiles Government of India
Controllerate of Quality Assurance (Textiles and Clothing)
wwwdgqadefencegovin
Page 11
Potential collaboration opportunities
Source
iNDEXTb
ldquoDivisionsrdquo Arvind Limited website httpwwwarvindcomdivisionthearvindstorehtmMenuTab1
ldquoAbout usrdquo Madura Fashion amp Lifestyle website httpwwwmadurafnlcomabout_usabout_ushtml
httpwwwalokindcom
ldquoAbout usrdquo Lifestyle International website httpwwwlifestylestorescomaboutusphp
ldquoIndustry profile Apparel retail in Indiardquo Marketline May 2015 via ThomsonOne
rdquoOverviewrdquo Future Retail website httpfutureretailcoinabout-usoverview-retailhtml
ldquoBusiness Overviewrdquo Future Lifestyle website httpfuturelifestyleinbusiness_overviewhtml
ldquoRaymond Apparel Ltdrdquo Raymond India website httpwwwraymondindiacomgrp_ralaspVZpsNU0w8iQ
ldquoCorporaterdquo Shoppers Stop website httpcorporateshoppersstopcom
ldquoQuarterly Performance March 2015rdquo Shoppers Stop website httpcorporateshoppersstopcomuploaded_filesb602138-63dfpdf
ldquoAbout usrdquo Westside website httpswwwmywestsidecomWebPagesInnerPagesaboutusaspx
ldquoAbout usrdquo Pantaloons website httppantaloonscomcompanyabout-usoverview
Project Information
Key Considerations
Since this is a niche segment in the textile value chain high skill work force is essential
Institutes that offer specialized courses in computer-aided dress making and dress design
pattern making and needle work are to be promoted
Rising fashion trends amongst urban women increases the demand for knitted swimwear
sportswear sport-inspired footwear and yoga pants
HVG manufacturers can collaborate with
Machinery and raw material suppliers
Domestic and international apparel retail brands
Organization such as Gujarat Garment Manufacturers Association Ahmedabad Textile Mills Association South Gujarat Textile Processors Association which work towards the development of textile and garment industry in Gujarat
Institutions such as National Institute of Fashion Technology for the skill development of employees
Page 12
Project Information
Existing Textile Parks
1 MS Dholi Integrated Spinning Park Ltd Ahmedabad
2 Ms Karanj Textile Park Pvt Ltd Surat
3 Palsana Textile Park Pvt Ltd Surat
4 Dholka Textile Park Pvt Ltd Surat
5 Arvind Garments Park Pvt Ltd Ahmedabad
6 Ms Shalon Textile Park Pvt Ltd Surat
7 MS Jayraj Textile Park Pvt Ltd Surat
8 MS Shanti Integrated Textile Park Pvt Ltd
9 MS Giriraj Developers Surat
10 Rajhans Infracon (India) Pvt Ltd Surat
11 The Surat Vankar Sahakari Sangh Ltd Surat
12 Sanika Industrial Techno Park Surat
13 Ekta Enterprise Platinum Textile park Surat
14 NSP Infrastructure Pvt Ltd Surat
15 D D Spintex Park Pvt Ltd Bharuch
16 Gaytri Cotspin Park PPL Bharuch
S
No
Name of the Industrial Park Location Taluka District
1 Makson SEZ Pvt LTdOlak Chharad
Derwada MalikaLakhtar Surendranagar
2Madhukar Infrastructure Developers Pvt
Ltd
Jansali
BalolLimbdi Surendranagar
3 Satyesh infrastructures LLP Janiyadra narnavi Vagra Bharuch
4 Bhadresh Trading Corporation Ltd Varnora Zinkadi
PaiyaBhuj Kutch
5 B T C Cashkot Ind Ltd Bhuvad Anjar Kutch
6 Eco Green Industrial Park Pvt LTd Kharchi- Bhilwada Jhagadia Bharuch
7 Adharbhut Industrial Park Pvt LtdKava Madafar
Panchpipla VadJambusar Bharuch
8 Ample Industrial Park Pvt Ltd Vad Jantran Jambusar Bharuch
9 Damanganga Industrial Park Karvad Dungara Pardi Valsad
10 Green Field Industrial Park Pvt Ltd Kharchi- Bhilwada Jhagadia Bharuch
11 Ms Ratanakar Estate Developer Por Vadodara Vadodara
12 Ms Welspun Anjar SEZ Limited Varsamedi Anjar Kutchh
13 Ms Ratanakar Estate Developer Por Vadodara Vadodara
The Proposed Unit can be
developed anywhere in Gujarat
The preferred location for the
proposed unit would be in the
existing proposed parks or in the
vicinity of these parks in order to
have direct access to the eco
system
Proposed Upcoming Textile Parks
Page 13
Project Information
Proposed
The Mumbai-Ahmedabad bullet train project
will have Surat as one of the stations
In 2016 the Gujarat government assigned
Delhi Metro Rail Corporation as a consultant
for the proposed metro connectivity in Surat
Rail connectivity was proposed for Hazira and
Nargol ports in the 2016 rail budget
Proposed
Proposed four-lane highways which are
expected to improve connectivity in Surat
include ndash Dakor-Savli Vadodara-Dabhoi amp
Surat-Olpad-Bardoli
Proposed
In January 2015 Airports Authority of India
gave an in-principle approval for cargo
terminal at Surat airport worth INR70 million
The terminal is expected to be operational in
2017
In February 2016 Surat Airport Action
Committee filed an online petition for an
international airport at Surat
The nearest port is Hazira which is 25 km
from Surat
Additionally Hazira port is well connected
to Mundra port and Jawaharlal Nehru Port
Trust (JNPT) ndash Indiarsquos largest container
port
Thus it provides a convenient textiles-
related trade gateway to International
(Europe Africa America and the Middle
East) and domestic markets
Surat domestic airport is well connected to
various parts of the country The city is
located ~275 kms from the international
airport at Ahmedabad
Surat is connected with other districts of the
state such as Rajkot Vadodara and
Ahmedabad by rail
Hazira port in Surat is ~16 km away from the
Surat railway station
The city is connected to Delhi Mumbai
Industrial Corridor (DMIC) which links
Ahmedabad Vadodara and Surat
Proximity to NH-8 and NH-6 further
enhances connectivity in the city
Surat also has very good connectivity with
other cities of the state such as Vadodara
(154 km) and Ahmedabad (265 km)
Logistics amp Connectivity
Water for industrial purposes can be obtained
from four sources viz Gujarat Water Supply
and Sewerage Board (GWSSB) an irrigation
canal dams and surface reservoirs
The main source for the power supply is Torrent Power Limited in Surat
Power
Rail Road
Air Port
Water
Utility
Source
httpwwwfirstpostcominvestingfive-most-promising-indian-tier-ii-cities-you-should-invest-in-2796296html
httpdeshgujaratcom20150325clearances-by-july-works-for-nargol-port-to-start-next-yeargog
httptimesofindiaindiatimescomcitysuratMulti-mode-transportation-hub-soon-at-Surat-railway-stationarticleshow52095198cms
Page 14
Project Financials
Cost of setting up unit producing High Value Gents Shirts
and Trousers at Surat Apparel Park The proposed unit will have a
production capacity of 90000 Gents Shirts and Gents Trousers per month The quality of the
garments mainly depends on quality of fabric used Standards such as IS12675 IS4039 and
IS10194 will be complied with at the plant
Project cost
Project components amp specifications Cost (INR lakh)
Land (800 sq mtr)
Rate (INR 1500 per sq mtr as of May 2016)1
1200
Building Area (375 sq m) (built up) ( 3000 per sft) 1009
Factory Shed ndash 250 sq mt
Store (Raw Material) ndash 100 sq mt
Store (Finished Goods) ndash 75 sq mt
Land amp Building Component 1129
Machinery amp Equipment 250 ndash 27
Other Fixed Assets 30 ndash 50
Machinery 28 ndash 30
Total Capital Cost 140 - 143
Working Capital (Per Month)
Staff and Labor 2
Raw Material and Utilities 33
Total Recurring cost 35
Total Capital Investment
Machinery amp Equipment 28
Working capital for 3 months 105
Total Capital Investment 133
Source Project Profile on Gents Shirts and Trousers MSME ndash Development Institute Ministry of MSME GoI
Page 15
Project Financials
Source Project Profile on Gents Shirts and Trousers MSME ndash Development Institute Ministry of MSME GoI
Manager 1
Sales Representative 1
Accounts Officer 1
Production Manager 1
Cutting Master 1
Skilled Workers 55
Pressman 4
Unskilled workers 6
Manpower requirement in the proposed HVG manufacturing unit
Equipment Qty
Single Needle Lock Stitch Machine with motor 50
6rdquo Power driven cloth cutting machine 1
2 needle overlock safety stitching machine with trimmer 1
Double Needle Lock Stitch Machine 2
Button Hole Making Machine 1
Button Stitching Machine 1
Hot Fusing Press 1
Garment Washing Machine 1
Hydro extractor 25 kg capacity 1
Tumbler Dryer 25 kg capacity 1
Flat Bed Steam Iron Press with Vacuum Table 4
Zig Zag Embroidery Machine 1
Generator Set 30 KVA 1
Wash Room Trolleys 4
Machinery and Equipment
Page 16
Approvals amp Incentives
5 interest subsidy on bank loans for five years
for those who establish new plants for value
addition chain like ginning processing
weaving knitting and machine carpeting
7 interest subsidy on new plant and
machinery for five years for cotton spinning
garment manufacturing and technology up
gradation
Refund of value added tax (VAT) on expansion
of new units in spinning and power tariff
concession to cotton spinning and weaving
units
Financial assistance for skill development
centres for technology acquisition and also for
supporting energy and water conservation as
well as for environmental compliance
Incentives from Government of Gujarat
Under the Technology Upgradation Fund Scheme (TUFS) the GoI is offering 5 credit linked
interest subsidy on purchase of textile machinery
In 2016 the government also approved an amended technology upgradation funds scheme
(ATUFS) where the GoI has made a fresh allocation of INR515 billion as one time capital
subsidy for new investment apart from allocated budget of INR338 billion for limited liability
Through the ATUFS the GoI aims to attract an investment of INR1000 billion by 2018
Scheme for Integrated Textile Parks (SITP) 40 capital subsidy to a maximum of INR40 crore on
total project cost on projects approved by government Also 100 FDI allowed for textile sector
Incentives from Government of India (GoI)
For approvals the project report should be submitted to respective District Industries Centres
(DICs) DIC will forward the proposal to Industries Commissioner who will submit the report to
State Level Approver Committee (SLAC) for final approval
The basic custom duty on imported technical textile machinery has been reduced from 10 to 5
and support to start-ups is also provided
68 76 100400
1340
3900
FY11 FY12 FY13 FY14 FY15 FY16
Incentives to Textile and Apparel Sector from the Government of
Gujarat (INR million)
CAGR
125
During FY16 incentives provided
increased ~3 times y-o-y and are
expected to rise further
Approvals
Source
ldquoGujarat Textile Policyrdquo Industries and Mines Department Government of Gujarat 5 September 2012
ldquoManufacturing Sector ndash Profilerdquo Vibrant Gujarat website 7 October 2014
Industries Commissionerate website httpicgujaratgovinpage_id=3175 accessed on 1 June 2016
ldquoTextile industry welcomes amended TUFSrdquo Business Standard 2 January 2016
httpwwwbusiness-standardcomarticleeconomy-policyduty-drawback-sops-to-incentivise-high-value-garment-exports-116081800720_1html
GoI has increased the duty drawback of 32 to 47 (depending on the category) for exports of
non-fabric inputs made from imported fabrics to incentivize high value garment (HVG) exports
Office of The Industries Commissionerate
Block No 1 2nd Floor Udyog Bhavan
Gandhinagar 382 010 Gujarat
Ph 2325268323252617
Email ID iccordgujaratgovin
This project profile is based on preliminary study to facilitate prospective entrepreneurs to assess a prima facie scope
It is however advisable to get a detailed feasibility study prepared before taking a final investment decision
Gujarat Industrial Development Corporation
Industries amp Mines Department
Office of Industries Commissioner
wwwgidcgovin
wwwimd-gujaratgovin
wwwicgujaratgovin
Industrial Extension Bureau
wwwindextbcom
httptechnotexgovin
Ministry of Textiles Government of India
Controllerate of Quality Assurance (Textiles and Clothing)
wwwdgqadefencegovin
Page 12
Project Information
Existing Textile Parks
1 MS Dholi Integrated Spinning Park Ltd Ahmedabad
2 Ms Karanj Textile Park Pvt Ltd Surat
3 Palsana Textile Park Pvt Ltd Surat
4 Dholka Textile Park Pvt Ltd Surat
5 Arvind Garments Park Pvt Ltd Ahmedabad
6 Ms Shalon Textile Park Pvt Ltd Surat
7 MS Jayraj Textile Park Pvt Ltd Surat
8 MS Shanti Integrated Textile Park Pvt Ltd
9 MS Giriraj Developers Surat
10 Rajhans Infracon (India) Pvt Ltd Surat
11 The Surat Vankar Sahakari Sangh Ltd Surat
12 Sanika Industrial Techno Park Surat
13 Ekta Enterprise Platinum Textile park Surat
14 NSP Infrastructure Pvt Ltd Surat
15 D D Spintex Park Pvt Ltd Bharuch
16 Gaytri Cotspin Park PPL Bharuch
S
No
Name of the Industrial Park Location Taluka District
1 Makson SEZ Pvt LTdOlak Chharad
Derwada MalikaLakhtar Surendranagar
2Madhukar Infrastructure Developers Pvt
Ltd
Jansali
BalolLimbdi Surendranagar
3 Satyesh infrastructures LLP Janiyadra narnavi Vagra Bharuch
4 Bhadresh Trading Corporation Ltd Varnora Zinkadi
PaiyaBhuj Kutch
5 B T C Cashkot Ind Ltd Bhuvad Anjar Kutch
6 Eco Green Industrial Park Pvt LTd Kharchi- Bhilwada Jhagadia Bharuch
7 Adharbhut Industrial Park Pvt LtdKava Madafar
Panchpipla VadJambusar Bharuch
8 Ample Industrial Park Pvt Ltd Vad Jantran Jambusar Bharuch
9 Damanganga Industrial Park Karvad Dungara Pardi Valsad
10 Green Field Industrial Park Pvt Ltd Kharchi- Bhilwada Jhagadia Bharuch
11 Ms Ratanakar Estate Developer Por Vadodara Vadodara
12 Ms Welspun Anjar SEZ Limited Varsamedi Anjar Kutchh
13 Ms Ratanakar Estate Developer Por Vadodara Vadodara
The Proposed Unit can be
developed anywhere in Gujarat
The preferred location for the
proposed unit would be in the
existing proposed parks or in the
vicinity of these parks in order to
have direct access to the eco
system
Proposed Upcoming Textile Parks
Page 13
Project Information
Proposed
The Mumbai-Ahmedabad bullet train project
will have Surat as one of the stations
In 2016 the Gujarat government assigned
Delhi Metro Rail Corporation as a consultant
for the proposed metro connectivity in Surat
Rail connectivity was proposed for Hazira and
Nargol ports in the 2016 rail budget
Proposed
Proposed four-lane highways which are
expected to improve connectivity in Surat
include ndash Dakor-Savli Vadodara-Dabhoi amp
Surat-Olpad-Bardoli
Proposed
In January 2015 Airports Authority of India
gave an in-principle approval for cargo
terminal at Surat airport worth INR70 million
The terminal is expected to be operational in
2017
In February 2016 Surat Airport Action
Committee filed an online petition for an
international airport at Surat
The nearest port is Hazira which is 25 km
from Surat
Additionally Hazira port is well connected
to Mundra port and Jawaharlal Nehru Port
Trust (JNPT) ndash Indiarsquos largest container
port
Thus it provides a convenient textiles-
related trade gateway to International
(Europe Africa America and the Middle
East) and domestic markets
Surat domestic airport is well connected to
various parts of the country The city is
located ~275 kms from the international
airport at Ahmedabad
Surat is connected with other districts of the
state such as Rajkot Vadodara and
Ahmedabad by rail
Hazira port in Surat is ~16 km away from the
Surat railway station
The city is connected to Delhi Mumbai
Industrial Corridor (DMIC) which links
Ahmedabad Vadodara and Surat
Proximity to NH-8 and NH-6 further
enhances connectivity in the city
Surat also has very good connectivity with
other cities of the state such as Vadodara
(154 km) and Ahmedabad (265 km)
Logistics amp Connectivity
Water for industrial purposes can be obtained
from four sources viz Gujarat Water Supply
and Sewerage Board (GWSSB) an irrigation
canal dams and surface reservoirs
The main source for the power supply is Torrent Power Limited in Surat
Power
Rail Road
Air Port
Water
Utility
Source
httpwwwfirstpostcominvestingfive-most-promising-indian-tier-ii-cities-you-should-invest-in-2796296html
httpdeshgujaratcom20150325clearances-by-july-works-for-nargol-port-to-start-next-yeargog
httptimesofindiaindiatimescomcitysuratMulti-mode-transportation-hub-soon-at-Surat-railway-stationarticleshow52095198cms
Page 14
Project Financials
Cost of setting up unit producing High Value Gents Shirts
and Trousers at Surat Apparel Park The proposed unit will have a
production capacity of 90000 Gents Shirts and Gents Trousers per month The quality of the
garments mainly depends on quality of fabric used Standards such as IS12675 IS4039 and
IS10194 will be complied with at the plant
Project cost
Project components amp specifications Cost (INR lakh)
Land (800 sq mtr)
Rate (INR 1500 per sq mtr as of May 2016)1
1200
Building Area (375 sq m) (built up) ( 3000 per sft) 1009
Factory Shed ndash 250 sq mt
Store (Raw Material) ndash 100 sq mt
Store (Finished Goods) ndash 75 sq mt
Land amp Building Component 1129
Machinery amp Equipment 250 ndash 27
Other Fixed Assets 30 ndash 50
Machinery 28 ndash 30
Total Capital Cost 140 - 143
Working Capital (Per Month)
Staff and Labor 2
Raw Material and Utilities 33
Total Recurring cost 35
Total Capital Investment
Machinery amp Equipment 28
Working capital for 3 months 105
Total Capital Investment 133
Source Project Profile on Gents Shirts and Trousers MSME ndash Development Institute Ministry of MSME GoI
Page 15
Project Financials
Source Project Profile on Gents Shirts and Trousers MSME ndash Development Institute Ministry of MSME GoI
Manager 1
Sales Representative 1
Accounts Officer 1
Production Manager 1
Cutting Master 1
Skilled Workers 55
Pressman 4
Unskilled workers 6
Manpower requirement in the proposed HVG manufacturing unit
Equipment Qty
Single Needle Lock Stitch Machine with motor 50
6rdquo Power driven cloth cutting machine 1
2 needle overlock safety stitching machine with trimmer 1
Double Needle Lock Stitch Machine 2
Button Hole Making Machine 1
Button Stitching Machine 1
Hot Fusing Press 1
Garment Washing Machine 1
Hydro extractor 25 kg capacity 1
Tumbler Dryer 25 kg capacity 1
Flat Bed Steam Iron Press with Vacuum Table 4
Zig Zag Embroidery Machine 1
Generator Set 30 KVA 1
Wash Room Trolleys 4
Machinery and Equipment
Page 16
Approvals amp Incentives
5 interest subsidy on bank loans for five years
for those who establish new plants for value
addition chain like ginning processing
weaving knitting and machine carpeting
7 interest subsidy on new plant and
machinery for five years for cotton spinning
garment manufacturing and technology up
gradation
Refund of value added tax (VAT) on expansion
of new units in spinning and power tariff
concession to cotton spinning and weaving
units
Financial assistance for skill development
centres for technology acquisition and also for
supporting energy and water conservation as
well as for environmental compliance
Incentives from Government of Gujarat
Under the Technology Upgradation Fund Scheme (TUFS) the GoI is offering 5 credit linked
interest subsidy on purchase of textile machinery
In 2016 the government also approved an amended technology upgradation funds scheme
(ATUFS) where the GoI has made a fresh allocation of INR515 billion as one time capital
subsidy for new investment apart from allocated budget of INR338 billion for limited liability
Through the ATUFS the GoI aims to attract an investment of INR1000 billion by 2018
Scheme for Integrated Textile Parks (SITP) 40 capital subsidy to a maximum of INR40 crore on
total project cost on projects approved by government Also 100 FDI allowed for textile sector
Incentives from Government of India (GoI)
For approvals the project report should be submitted to respective District Industries Centres
(DICs) DIC will forward the proposal to Industries Commissioner who will submit the report to
State Level Approver Committee (SLAC) for final approval
The basic custom duty on imported technical textile machinery has been reduced from 10 to 5
and support to start-ups is also provided
68 76 100400
1340
3900
FY11 FY12 FY13 FY14 FY15 FY16
Incentives to Textile and Apparel Sector from the Government of
Gujarat (INR million)
CAGR
125
During FY16 incentives provided
increased ~3 times y-o-y and are
expected to rise further
Approvals
Source
ldquoGujarat Textile Policyrdquo Industries and Mines Department Government of Gujarat 5 September 2012
ldquoManufacturing Sector ndash Profilerdquo Vibrant Gujarat website 7 October 2014
Industries Commissionerate website httpicgujaratgovinpage_id=3175 accessed on 1 June 2016
ldquoTextile industry welcomes amended TUFSrdquo Business Standard 2 January 2016
httpwwwbusiness-standardcomarticleeconomy-policyduty-drawback-sops-to-incentivise-high-value-garment-exports-116081800720_1html
GoI has increased the duty drawback of 32 to 47 (depending on the category) for exports of
non-fabric inputs made from imported fabrics to incentivize high value garment (HVG) exports
Office of The Industries Commissionerate
Block No 1 2nd Floor Udyog Bhavan
Gandhinagar 382 010 Gujarat
Ph 2325268323252617
Email ID iccordgujaratgovin
This project profile is based on preliminary study to facilitate prospective entrepreneurs to assess a prima facie scope
It is however advisable to get a detailed feasibility study prepared before taking a final investment decision
Gujarat Industrial Development Corporation
Industries amp Mines Department
Office of Industries Commissioner
wwwgidcgovin
wwwimd-gujaratgovin
wwwicgujaratgovin
Industrial Extension Bureau
wwwindextbcom
httptechnotexgovin
Ministry of Textiles Government of India
Controllerate of Quality Assurance (Textiles and Clothing)
wwwdgqadefencegovin
Page 13
Project Information
Proposed
The Mumbai-Ahmedabad bullet train project
will have Surat as one of the stations
In 2016 the Gujarat government assigned
Delhi Metro Rail Corporation as a consultant
for the proposed metro connectivity in Surat
Rail connectivity was proposed for Hazira and
Nargol ports in the 2016 rail budget
Proposed
Proposed four-lane highways which are
expected to improve connectivity in Surat
include ndash Dakor-Savli Vadodara-Dabhoi amp
Surat-Olpad-Bardoli
Proposed
In January 2015 Airports Authority of India
gave an in-principle approval for cargo
terminal at Surat airport worth INR70 million
The terminal is expected to be operational in
2017
In February 2016 Surat Airport Action
Committee filed an online petition for an
international airport at Surat
The nearest port is Hazira which is 25 km
from Surat
Additionally Hazira port is well connected
to Mundra port and Jawaharlal Nehru Port
Trust (JNPT) ndash Indiarsquos largest container
port
Thus it provides a convenient textiles-
related trade gateway to International
(Europe Africa America and the Middle
East) and domestic markets
Surat domestic airport is well connected to
various parts of the country The city is
located ~275 kms from the international
airport at Ahmedabad
Surat is connected with other districts of the
state such as Rajkot Vadodara and
Ahmedabad by rail
Hazira port in Surat is ~16 km away from the
Surat railway station
The city is connected to Delhi Mumbai
Industrial Corridor (DMIC) which links
Ahmedabad Vadodara and Surat
Proximity to NH-8 and NH-6 further
enhances connectivity in the city
Surat also has very good connectivity with
other cities of the state such as Vadodara
(154 km) and Ahmedabad (265 km)
Logistics amp Connectivity
Water for industrial purposes can be obtained
from four sources viz Gujarat Water Supply
and Sewerage Board (GWSSB) an irrigation
canal dams and surface reservoirs
The main source for the power supply is Torrent Power Limited in Surat
Power
Rail Road
Air Port
Water
Utility
Source
httpwwwfirstpostcominvestingfive-most-promising-indian-tier-ii-cities-you-should-invest-in-2796296html
httpdeshgujaratcom20150325clearances-by-july-works-for-nargol-port-to-start-next-yeargog
httptimesofindiaindiatimescomcitysuratMulti-mode-transportation-hub-soon-at-Surat-railway-stationarticleshow52095198cms
Page 14
Project Financials
Cost of setting up unit producing High Value Gents Shirts
and Trousers at Surat Apparel Park The proposed unit will have a
production capacity of 90000 Gents Shirts and Gents Trousers per month The quality of the
garments mainly depends on quality of fabric used Standards such as IS12675 IS4039 and
IS10194 will be complied with at the plant
Project cost
Project components amp specifications Cost (INR lakh)
Land (800 sq mtr)
Rate (INR 1500 per sq mtr as of May 2016)1
1200
Building Area (375 sq m) (built up) ( 3000 per sft) 1009
Factory Shed ndash 250 sq mt
Store (Raw Material) ndash 100 sq mt
Store (Finished Goods) ndash 75 sq mt
Land amp Building Component 1129
Machinery amp Equipment 250 ndash 27
Other Fixed Assets 30 ndash 50
Machinery 28 ndash 30
Total Capital Cost 140 - 143
Working Capital (Per Month)
Staff and Labor 2
Raw Material and Utilities 33
Total Recurring cost 35
Total Capital Investment
Machinery amp Equipment 28
Working capital for 3 months 105
Total Capital Investment 133
Source Project Profile on Gents Shirts and Trousers MSME ndash Development Institute Ministry of MSME GoI
Page 15
Project Financials
Source Project Profile on Gents Shirts and Trousers MSME ndash Development Institute Ministry of MSME GoI
Manager 1
Sales Representative 1
Accounts Officer 1
Production Manager 1
Cutting Master 1
Skilled Workers 55
Pressman 4
Unskilled workers 6
Manpower requirement in the proposed HVG manufacturing unit
Equipment Qty
Single Needle Lock Stitch Machine with motor 50
6rdquo Power driven cloth cutting machine 1
2 needle overlock safety stitching machine with trimmer 1
Double Needle Lock Stitch Machine 2
Button Hole Making Machine 1
Button Stitching Machine 1
Hot Fusing Press 1
Garment Washing Machine 1
Hydro extractor 25 kg capacity 1
Tumbler Dryer 25 kg capacity 1
Flat Bed Steam Iron Press with Vacuum Table 4
Zig Zag Embroidery Machine 1
Generator Set 30 KVA 1
Wash Room Trolleys 4
Machinery and Equipment
Page 16
Approvals amp Incentives
5 interest subsidy on bank loans for five years
for those who establish new plants for value
addition chain like ginning processing
weaving knitting and machine carpeting
7 interest subsidy on new plant and
machinery for five years for cotton spinning
garment manufacturing and technology up
gradation
Refund of value added tax (VAT) on expansion
of new units in spinning and power tariff
concession to cotton spinning and weaving
units
Financial assistance for skill development
centres for technology acquisition and also for
supporting energy and water conservation as
well as for environmental compliance
Incentives from Government of Gujarat
Under the Technology Upgradation Fund Scheme (TUFS) the GoI is offering 5 credit linked
interest subsidy on purchase of textile machinery
In 2016 the government also approved an amended technology upgradation funds scheme
(ATUFS) where the GoI has made a fresh allocation of INR515 billion as one time capital
subsidy for new investment apart from allocated budget of INR338 billion for limited liability
Through the ATUFS the GoI aims to attract an investment of INR1000 billion by 2018
Scheme for Integrated Textile Parks (SITP) 40 capital subsidy to a maximum of INR40 crore on
total project cost on projects approved by government Also 100 FDI allowed for textile sector
Incentives from Government of India (GoI)
For approvals the project report should be submitted to respective District Industries Centres
(DICs) DIC will forward the proposal to Industries Commissioner who will submit the report to
State Level Approver Committee (SLAC) for final approval
The basic custom duty on imported technical textile machinery has been reduced from 10 to 5
and support to start-ups is also provided
68 76 100400
1340
3900
FY11 FY12 FY13 FY14 FY15 FY16
Incentives to Textile and Apparel Sector from the Government of
Gujarat (INR million)
CAGR
125
During FY16 incentives provided
increased ~3 times y-o-y and are
expected to rise further
Approvals
Source
ldquoGujarat Textile Policyrdquo Industries and Mines Department Government of Gujarat 5 September 2012
ldquoManufacturing Sector ndash Profilerdquo Vibrant Gujarat website 7 October 2014
Industries Commissionerate website httpicgujaratgovinpage_id=3175 accessed on 1 June 2016
ldquoTextile industry welcomes amended TUFSrdquo Business Standard 2 January 2016
httpwwwbusiness-standardcomarticleeconomy-policyduty-drawback-sops-to-incentivise-high-value-garment-exports-116081800720_1html
GoI has increased the duty drawback of 32 to 47 (depending on the category) for exports of
non-fabric inputs made from imported fabrics to incentivize high value garment (HVG) exports
Office of The Industries Commissionerate
Block No 1 2nd Floor Udyog Bhavan
Gandhinagar 382 010 Gujarat
Ph 2325268323252617
Email ID iccordgujaratgovin
This project profile is based on preliminary study to facilitate prospective entrepreneurs to assess a prima facie scope
It is however advisable to get a detailed feasibility study prepared before taking a final investment decision
Gujarat Industrial Development Corporation
Industries amp Mines Department
Office of Industries Commissioner
wwwgidcgovin
wwwimd-gujaratgovin
wwwicgujaratgovin
Industrial Extension Bureau
wwwindextbcom
httptechnotexgovin
Ministry of Textiles Government of India
Controllerate of Quality Assurance (Textiles and Clothing)
wwwdgqadefencegovin
Page 14
Project Financials
Cost of setting up unit producing High Value Gents Shirts
and Trousers at Surat Apparel Park The proposed unit will have a
production capacity of 90000 Gents Shirts and Gents Trousers per month The quality of the
garments mainly depends on quality of fabric used Standards such as IS12675 IS4039 and
IS10194 will be complied with at the plant
Project cost
Project components amp specifications Cost (INR lakh)
Land (800 sq mtr)
Rate (INR 1500 per sq mtr as of May 2016)1
1200
Building Area (375 sq m) (built up) ( 3000 per sft) 1009
Factory Shed ndash 250 sq mt
Store (Raw Material) ndash 100 sq mt
Store (Finished Goods) ndash 75 sq mt
Land amp Building Component 1129
Machinery amp Equipment 250 ndash 27
Other Fixed Assets 30 ndash 50
Machinery 28 ndash 30
Total Capital Cost 140 - 143
Working Capital (Per Month)
Staff and Labor 2
Raw Material and Utilities 33
Total Recurring cost 35
Total Capital Investment
Machinery amp Equipment 28
Working capital for 3 months 105
Total Capital Investment 133
Source Project Profile on Gents Shirts and Trousers MSME ndash Development Institute Ministry of MSME GoI
Page 15
Project Financials
Source Project Profile on Gents Shirts and Trousers MSME ndash Development Institute Ministry of MSME GoI
Manager 1
Sales Representative 1
Accounts Officer 1
Production Manager 1
Cutting Master 1
Skilled Workers 55
Pressman 4
Unskilled workers 6
Manpower requirement in the proposed HVG manufacturing unit
Equipment Qty
Single Needle Lock Stitch Machine with motor 50
6rdquo Power driven cloth cutting machine 1
2 needle overlock safety stitching machine with trimmer 1
Double Needle Lock Stitch Machine 2
Button Hole Making Machine 1
Button Stitching Machine 1
Hot Fusing Press 1
Garment Washing Machine 1
Hydro extractor 25 kg capacity 1
Tumbler Dryer 25 kg capacity 1
Flat Bed Steam Iron Press with Vacuum Table 4
Zig Zag Embroidery Machine 1
Generator Set 30 KVA 1
Wash Room Trolleys 4
Machinery and Equipment
Page 16
Approvals amp Incentives
5 interest subsidy on bank loans for five years
for those who establish new plants for value
addition chain like ginning processing
weaving knitting and machine carpeting
7 interest subsidy on new plant and
machinery for five years for cotton spinning
garment manufacturing and technology up
gradation
Refund of value added tax (VAT) on expansion
of new units in spinning and power tariff
concession to cotton spinning and weaving
units
Financial assistance for skill development
centres for technology acquisition and also for
supporting energy and water conservation as
well as for environmental compliance
Incentives from Government of Gujarat
Under the Technology Upgradation Fund Scheme (TUFS) the GoI is offering 5 credit linked
interest subsidy on purchase of textile machinery
In 2016 the government also approved an amended technology upgradation funds scheme
(ATUFS) where the GoI has made a fresh allocation of INR515 billion as one time capital
subsidy for new investment apart from allocated budget of INR338 billion for limited liability
Through the ATUFS the GoI aims to attract an investment of INR1000 billion by 2018
Scheme for Integrated Textile Parks (SITP) 40 capital subsidy to a maximum of INR40 crore on
total project cost on projects approved by government Also 100 FDI allowed for textile sector
Incentives from Government of India (GoI)
For approvals the project report should be submitted to respective District Industries Centres
(DICs) DIC will forward the proposal to Industries Commissioner who will submit the report to
State Level Approver Committee (SLAC) for final approval
The basic custom duty on imported technical textile machinery has been reduced from 10 to 5
and support to start-ups is also provided
68 76 100400
1340
3900
FY11 FY12 FY13 FY14 FY15 FY16
Incentives to Textile and Apparel Sector from the Government of
Gujarat (INR million)
CAGR
125
During FY16 incentives provided
increased ~3 times y-o-y and are
expected to rise further
Approvals
Source
ldquoGujarat Textile Policyrdquo Industries and Mines Department Government of Gujarat 5 September 2012
ldquoManufacturing Sector ndash Profilerdquo Vibrant Gujarat website 7 October 2014
Industries Commissionerate website httpicgujaratgovinpage_id=3175 accessed on 1 June 2016
ldquoTextile industry welcomes amended TUFSrdquo Business Standard 2 January 2016
httpwwwbusiness-standardcomarticleeconomy-policyduty-drawback-sops-to-incentivise-high-value-garment-exports-116081800720_1html
GoI has increased the duty drawback of 32 to 47 (depending on the category) for exports of
non-fabric inputs made from imported fabrics to incentivize high value garment (HVG) exports
Office of The Industries Commissionerate
Block No 1 2nd Floor Udyog Bhavan
Gandhinagar 382 010 Gujarat
Ph 2325268323252617
Email ID iccordgujaratgovin
This project profile is based on preliminary study to facilitate prospective entrepreneurs to assess a prima facie scope
It is however advisable to get a detailed feasibility study prepared before taking a final investment decision
Gujarat Industrial Development Corporation
Industries amp Mines Department
Office of Industries Commissioner
wwwgidcgovin
wwwimd-gujaratgovin
wwwicgujaratgovin
Industrial Extension Bureau
wwwindextbcom
httptechnotexgovin
Ministry of Textiles Government of India
Controllerate of Quality Assurance (Textiles and Clothing)
wwwdgqadefencegovin
Page 15
Project Financials
Source Project Profile on Gents Shirts and Trousers MSME ndash Development Institute Ministry of MSME GoI
Manager 1
Sales Representative 1
Accounts Officer 1
Production Manager 1
Cutting Master 1
Skilled Workers 55
Pressman 4
Unskilled workers 6
Manpower requirement in the proposed HVG manufacturing unit
Equipment Qty
Single Needle Lock Stitch Machine with motor 50
6rdquo Power driven cloth cutting machine 1
2 needle overlock safety stitching machine with trimmer 1
Double Needle Lock Stitch Machine 2
Button Hole Making Machine 1
Button Stitching Machine 1
Hot Fusing Press 1
Garment Washing Machine 1
Hydro extractor 25 kg capacity 1
Tumbler Dryer 25 kg capacity 1
Flat Bed Steam Iron Press with Vacuum Table 4
Zig Zag Embroidery Machine 1
Generator Set 30 KVA 1
Wash Room Trolleys 4
Machinery and Equipment
Page 16
Approvals amp Incentives
5 interest subsidy on bank loans for five years
for those who establish new plants for value
addition chain like ginning processing
weaving knitting and machine carpeting
7 interest subsidy on new plant and
machinery for five years for cotton spinning
garment manufacturing and technology up
gradation
Refund of value added tax (VAT) on expansion
of new units in spinning and power tariff
concession to cotton spinning and weaving
units
Financial assistance for skill development
centres for technology acquisition and also for
supporting energy and water conservation as
well as for environmental compliance
Incentives from Government of Gujarat
Under the Technology Upgradation Fund Scheme (TUFS) the GoI is offering 5 credit linked
interest subsidy on purchase of textile machinery
In 2016 the government also approved an amended technology upgradation funds scheme
(ATUFS) where the GoI has made a fresh allocation of INR515 billion as one time capital
subsidy for new investment apart from allocated budget of INR338 billion for limited liability
Through the ATUFS the GoI aims to attract an investment of INR1000 billion by 2018
Scheme for Integrated Textile Parks (SITP) 40 capital subsidy to a maximum of INR40 crore on
total project cost on projects approved by government Also 100 FDI allowed for textile sector
Incentives from Government of India (GoI)
For approvals the project report should be submitted to respective District Industries Centres
(DICs) DIC will forward the proposal to Industries Commissioner who will submit the report to
State Level Approver Committee (SLAC) for final approval
The basic custom duty on imported technical textile machinery has been reduced from 10 to 5
and support to start-ups is also provided
68 76 100400
1340
3900
FY11 FY12 FY13 FY14 FY15 FY16
Incentives to Textile and Apparel Sector from the Government of
Gujarat (INR million)
CAGR
125
During FY16 incentives provided
increased ~3 times y-o-y and are
expected to rise further
Approvals
Source
ldquoGujarat Textile Policyrdquo Industries and Mines Department Government of Gujarat 5 September 2012
ldquoManufacturing Sector ndash Profilerdquo Vibrant Gujarat website 7 October 2014
Industries Commissionerate website httpicgujaratgovinpage_id=3175 accessed on 1 June 2016
ldquoTextile industry welcomes amended TUFSrdquo Business Standard 2 January 2016
httpwwwbusiness-standardcomarticleeconomy-policyduty-drawback-sops-to-incentivise-high-value-garment-exports-116081800720_1html
GoI has increased the duty drawback of 32 to 47 (depending on the category) for exports of
non-fabric inputs made from imported fabrics to incentivize high value garment (HVG) exports
Office of The Industries Commissionerate
Block No 1 2nd Floor Udyog Bhavan
Gandhinagar 382 010 Gujarat
Ph 2325268323252617
Email ID iccordgujaratgovin
This project profile is based on preliminary study to facilitate prospective entrepreneurs to assess a prima facie scope
It is however advisable to get a detailed feasibility study prepared before taking a final investment decision
Gujarat Industrial Development Corporation
Industries amp Mines Department
Office of Industries Commissioner
wwwgidcgovin
wwwimd-gujaratgovin
wwwicgujaratgovin
Industrial Extension Bureau
wwwindextbcom
httptechnotexgovin
Ministry of Textiles Government of India
Controllerate of Quality Assurance (Textiles and Clothing)
wwwdgqadefencegovin
Page 16
Approvals amp Incentives
5 interest subsidy on bank loans for five years
for those who establish new plants for value
addition chain like ginning processing
weaving knitting and machine carpeting
7 interest subsidy on new plant and
machinery for five years for cotton spinning
garment manufacturing and technology up
gradation
Refund of value added tax (VAT) on expansion
of new units in spinning and power tariff
concession to cotton spinning and weaving
units
Financial assistance for skill development
centres for technology acquisition and also for
supporting energy and water conservation as
well as for environmental compliance
Incentives from Government of Gujarat
Under the Technology Upgradation Fund Scheme (TUFS) the GoI is offering 5 credit linked
interest subsidy on purchase of textile machinery
In 2016 the government also approved an amended technology upgradation funds scheme
(ATUFS) where the GoI has made a fresh allocation of INR515 billion as one time capital
subsidy for new investment apart from allocated budget of INR338 billion for limited liability
Through the ATUFS the GoI aims to attract an investment of INR1000 billion by 2018
Scheme for Integrated Textile Parks (SITP) 40 capital subsidy to a maximum of INR40 crore on
total project cost on projects approved by government Also 100 FDI allowed for textile sector
Incentives from Government of India (GoI)
For approvals the project report should be submitted to respective District Industries Centres
(DICs) DIC will forward the proposal to Industries Commissioner who will submit the report to
State Level Approver Committee (SLAC) for final approval
The basic custom duty on imported technical textile machinery has been reduced from 10 to 5
and support to start-ups is also provided
68 76 100400
1340
3900
FY11 FY12 FY13 FY14 FY15 FY16
Incentives to Textile and Apparel Sector from the Government of
Gujarat (INR million)
CAGR
125
During FY16 incentives provided
increased ~3 times y-o-y and are
expected to rise further
Approvals
Source
ldquoGujarat Textile Policyrdquo Industries and Mines Department Government of Gujarat 5 September 2012
ldquoManufacturing Sector ndash Profilerdquo Vibrant Gujarat website 7 October 2014
Industries Commissionerate website httpicgujaratgovinpage_id=3175 accessed on 1 June 2016
ldquoTextile industry welcomes amended TUFSrdquo Business Standard 2 January 2016
httpwwwbusiness-standardcomarticleeconomy-policyduty-drawback-sops-to-incentivise-high-value-garment-exports-116081800720_1html
GoI has increased the duty drawback of 32 to 47 (depending on the category) for exports of
non-fabric inputs made from imported fabrics to incentivize high value garment (HVG) exports
Office of The Industries Commissionerate
Block No 1 2nd Floor Udyog Bhavan
Gandhinagar 382 010 Gujarat
Ph 2325268323252617
Email ID iccordgujaratgovin
This project profile is based on preliminary study to facilitate prospective entrepreneurs to assess a prima facie scope
It is however advisable to get a detailed feasibility study prepared before taking a final investment decision
Gujarat Industrial Development Corporation
Industries amp Mines Department
Office of Industries Commissioner
wwwgidcgovin
wwwimd-gujaratgovin
wwwicgujaratgovin
Industrial Extension Bureau
wwwindextbcom
httptechnotexgovin
Ministry of Textiles Government of India
Controllerate of Quality Assurance (Textiles and Clothing)
wwwdgqadefencegovin
Office of The Industries Commissionerate
Block No 1 2nd Floor Udyog Bhavan
Gandhinagar 382 010 Gujarat
Ph 2325268323252617
Email ID iccordgujaratgovin
This project profile is based on preliminary study to facilitate prospective entrepreneurs to assess a prima facie scope
It is however advisable to get a detailed feasibility study prepared before taking a final investment decision
Gujarat Industrial Development Corporation
Industries amp Mines Department
Office of Industries Commissioner
wwwgidcgovin
wwwimd-gujaratgovin
wwwicgujaratgovin
Industrial Extension Bureau
wwwindextbcom
httptechnotexgovin
Ministry of Textiles Government of India
Controllerate of Quality Assurance (Textiles and Clothing)
wwwdgqadefencegovin