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17
Manufacturing facility for High Value Garments Textiles Government of Gujarat

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Page 1: Textiles - indextb.com · ladies garment industries, kids garment industry, shawls & Scarfs industry, Rope Wrinkle/Long Crush/Rope Crushing Rope Crush process is where the fabric

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: Textiles - indextb.com · ladies garment industries, kids garment industry, shawls & Scarfs industry, Rope Wrinkle/Long Crush/Rope Crushing Rope Crush process is where the fabric

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: Textiles - indextb.com · ladies garment industries, kids garment industry, shawls & Scarfs industry, Rope Wrinkle/Long Crush/Rope Crushing Rope Crush process is where the fabric

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: Textiles - indextb.com · ladies garment industries, kids garment industry, shawls & Scarfs industry, Rope Wrinkle/Long Crush/Rope Crushing Rope Crush process is where the fabric

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: Textiles - indextb.com · ladies garment industries, kids garment industry, shawls & Scarfs industry, Rope Wrinkle/Long Crush/Rope Crushing Rope Crush process is where the fabric

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: Textiles - indextb.com · ladies garment industries, kids garment industry, shawls & Scarfs industry, Rope Wrinkle/Long Crush/Rope Crushing Rope Crush process is where the fabric

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: Textiles - indextb.com · ladies garment industries, kids garment industry, shawls & Scarfs industry, Rope Wrinkle/Long Crush/Rope Crushing Rope Crush process is where the fabric

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: Textiles - indextb.com · ladies garment industries, kids garment industry, shawls & Scarfs industry, Rope Wrinkle/Long Crush/Rope Crushing Rope Crush process is where the fabric

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: Textiles - indextb.com · ladies garment industries, kids garment industry, shawls & Scarfs industry, Rope Wrinkle/Long Crush/Rope Crushing Rope Crush process is where the fabric

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: Textiles - indextb.com · ladies garment industries, kids garment industry, shawls & Scarfs industry, Rope Wrinkle/Long Crush/Rope Crushing Rope Crush process is where the fabric

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: Textiles - indextb.com · ladies garment industries, kids garment industry, shawls & Scarfs industry, Rope Wrinkle/Long Crush/Rope Crushing Rope Crush process is where the fabric

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: Textiles - indextb.com · ladies garment industries, kids garment industry, shawls & Scarfs industry, Rope Wrinkle/Long Crush/Rope Crushing Rope Crush process is where the fabric

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: Textiles - indextb.com · ladies garment industries, kids garment industry, shawls & Scarfs industry, Rope Wrinkle/Long Crush/Rope Crushing Rope Crush process is where the fabric

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: Textiles - indextb.com · ladies garment industries, kids garment industry, shawls & Scarfs industry, Rope Wrinkle/Long Crush/Rope Crushing Rope Crush process is where the fabric

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: Textiles - indextb.com · ladies garment industries, kids garment industry, shawls & Scarfs industry, Rope Wrinkle/Long Crush/Rope Crushing Rope Crush process is where the fabric

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: Textiles - indextb.com · ladies garment industries, kids garment industry, shawls & Scarfs industry, Rope Wrinkle/Long Crush/Rope Crushing Rope Crush process is where the fabric

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 17: Textiles - indextb.com · ladies garment industries, kids garment industry, shawls & Scarfs industry, Rope Wrinkle/Long Crush/Rope Crushing Rope Crush process is where the fabric

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