Page 1

Development of

Exclusive vertical

Garment Park

TextilesGovernment of Gujarat

Page 2

Contents

Project Concept 3

Market Potential 4

Growth Drivers 5

Gujarat – Competitive Advantage 6

Case Study 8

Project Information 9

- Location/ Size

- Infrastructure Availability/ Connectivity

- Raw Material/ Manpower

- Key Developers

Project Financials 13

Approvals & Incentives 15

Page 3

Project Concept

Textile Industry in India

► In India, Textiles sector is one of the largest contributors to India’s exports with approximately 11

per cent of total exports. It is labour intensive and is one of the largest employers.

► The industry realised export earnings worth US$ 41.4 billion in 2014-15, a growth of 5.4 per cent.

► 2nd largest textile manufacturing capacity globally.

► 59% of the world’s loom capacity-highest market share.

► 24% of the world’s spindle capacity.

► 100% Foreign Direct Investment in India with free trade with ASEAN (Association of Southeast

Asian Nations)countries.

Source

India Brand Equity Foundation (IBEF)- http://www.ibef.org/industry/textiles.aspx

Make in India http://www.makeinindia.com/sector/textiles-and-garments

70 78 89

143

223

0

50

100

150

200

250

2009 2010 2011 2016E 2021E

India Textile Market Size (USD Billion)

► Textile industries are categorised in two broad segments. First, the unorganised sector consists

of handloom, handicrafts and sericulture, the second is the organised sector consisting of

spinning, apparel and garments segment.

► In the organized sector the “The Scheme for Integrated Textile Parks (SITP)” was launched in

2005 to provide the industry with State of the art world-class infrastructure facilities for setting

up their textile units.

► Scheme for Integrated Textile Parks provides world-class infrastructure to new textile units. To

date, 57 Textile Parks have been sanctioned with an investment of INR 60 Billion. By 2017, 25

more textile parks are to be sanctioned.

► SITP will be providing one stop integrated facilities with manufacturing support, welfare and

common infrastructure facilities to the prospective textile industries. An Integrated Textile Park

(ITP) under the scheme would normally have 50 units.

► A vertical Garment Park provides infrastructure to support large scale knitting, garment

manufacture, finishing, printing and embellishments in the area to create a vertically integrated

apparel value chain.

Textile Categories/Schemes and Vertical Garment Park

Source: Vibrant Gujarat

Page 4

Market Potential

Global apparel market: Expected to grow at a CAGR of 6.3% from 2013-2018

CAGR

2013-2018 2018-2023

Apparel 6.3% 5.8%428

580

770

2013 2018F 2023F

Global apparel market size (US$ billion)

Source: EMIS, UN Comtrade, Technopak

► Global apparel market is estimated to be US$428

billion in 2013 and is expected to reach US$580

billion in 2018 and US$770 billion in 2023, growing

at a CAGR of 6.3% and 5.8%, respectively

41

64

102

2013 2018F 2023F

Indian domestic apparel market size

(US$ billion)

Source: EMIS, UN Comtrade, Technopak

► Indian domestic apparel market size was valued at US$41 billion in 2013 and is expected to be US$64 billion in 2018 and US$102 billion in 2023, growing at a CAGR of 9.3% and 9.8%, respectively

► Apparel segment’s growth is supported by a robust growth in the organized apparel segment and entry of players such as H&M, Zara and Marks & Spencer

► Gujarat has developed opportunities towards higher value addition product by setting up modern process houses and knitwear/ready-made garments plants to fulfil the domestic and international market demand

Indian domestic apparel market: Expected to grow at a CAGR of 9.3% from

2013-2018

CAGR

2013-2018 2018-2023

Apparel 9.3% 9.8%

Source

“Textile Sector India”, EMIS (December 2015), accessed via EMIS database

“Textiles And Apparel”, IBEF (January 2016), accessed via www.ibef.org/download/Textiles-and-Apparel-January-2016.pdf

http://www.indusedu.org/pdfs/IJREISS/IJREISS_349_97270.pdf

http://www.alokind.com/Downloads/Indian%20Textile%20Trade%20-Golden%20Period-%20March%202012.pdf

Page 5

Growth Drivers

Source

http://www.indiantextilejournal.com/News.aspx?nId=cNSCIBwYQQrSOO9tL1GtUg==

http://www.makeinindia.com/home

http://hkmb.hktdc.com/en/1X0A5909/hktdc-research/Make-in-India-The-Gujarat-Production-Base-Opportunity

https://international.gapinc.com/gap/in/en/store-locator

http://www.hm.com/in/store-locator#

APPAREL AND FOOTWEAR IN INDIA, Euromonitor International, March 2016

Rising fitness trend

•Rising fitness trend amongst urban women has lead to increased demand for 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

Growth in internet retailing

•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

Increased role of organized retail

•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 fabrics/garments manufactured in India

Favorable government initiatives

•Scheme for Integrated Textile Parks (SITP) implemented by GoI facilitates setting up of textile units

•Government of Gujarat has introduced ‘Farm-Factory-Fabric-Fashion-Foreign’ 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

Entry of global apparel brands

•100% FDI in single brand retailing has led to an increase in the entry of top global apparel brands in India

•Hennes & Mauritz and GAP entered India in 2015 and plan to expand their stores to 50 and 40, respectively by 2020

•Aéropostale also entered India in 2015 and has tied up with Arvind Lifestyle

Page 6

Gujarat - Competitive Advantage Gujarat Textile Industry

► Gujarat is known as “Textile State of India” &

“Manchester of the East” & “Denim Capital of

India”

► Gujarat is a leader in textiles with more than

1500 medium and large textile units

► It is estimated to be around USD 25 Billion by

2017

State-wise number of composite mills

State No. of composite mills

Gujarat 44

Maharashtra 43

Tamil Nadu 25

Madhya Pradesh 11

Uttar Pradesh 10

Rajasthan 9

West Bengal 8

Karnataka 7

Others 19

Source: International Journal of Research in Engineering, IT & Social Sciences

Source:

“Textile Sector India”, EMIS (December 2015), accessed via EMIS database

“Textiles And Apparel”, IBEF (January 2016), accessed via www.ibef.org/download/Textiles-and-Apparel-January-2016.pdf

“Vibrant Gujarat Manufacturing: Sector Profile”, (October 2014), accessed via www.vibrantgujarat.com/writereaddata/images/pdf/Manufacturing-Sector-Profile.pdf

http://www.indusedu.org/pdfs/IJREISS/IJREISS_349_97270.pdf

http://www.vibrantgujarat.com/writereaddata/images/pdf/Manufacturing-Sector-Profile.pdf

http://www.business-standard.com/article/economy-policy/surat-apparel-park-to-become-a-special-economic-zone-103122301077_1.html

► Contributes 25%to the country’s manufacturing

sector

► Contributes 12%to the country's textile exports

► Highest number of medium and large textile

processing houses (over 600)

Availability of Raw Material

Cotton

► Top cotton producing state with a production of

~12.5 million bales in FY15

► Shankar-6 and BT cotton are commonly

cultivated

► 90%of state’s cotton output is sent to other

states

► Hosiery yarn makers make garments and sell it

to top retailers such as Walmart and Macy's in

the US

Wool

► State produces mostly carpet grade wool

► Almost 100%of the wool produced goes to

other states like Haryana, Punjab and

Rajasthan for processing

Page 7

Gujarat - Competitive Advantage

Textile hubs in Gujarat

Kutch – Textile

Handicrafts

Surendranagar

, Manavadar

and Gondal –

Cotton ginning

Saurashtra – –

Hand printing

and processing

Ahmedabad –

Denims

Ankleshwar –

Technical

Textiles Surat – 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 ~6,000 students per year

► These institutes offers specialized

courses in computer-aided dress making

and dress design, pattern making and

needle work

► The state is also a hub for many leading

textile institutes which include Ahmedabad

Textile Industrial Research Association

(ATIRA), National Institute of Design (NID)

in Ahmedabad and National Institute of

Fashion Technology (NIFT) in Gandhinagar

► The government also provides assistance

and training to apparel training institutions

and the power loom sector

► Gujarat has 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 ~50,000

weaving looms

► ~50% of India's 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:

“Baseline survey of the Technical Textile industry in India”, Office of the Textile Commissioner, 29 March 2016

“Manufacturing Sector – Profile”, Vibrant Gujarat website, 7 October 2014

“Gujarat – Growth and Prosperity for All”, Vibrant Gujarat website, 25 August 2014

Page 8

Case Study

Garment Park in India

Case Study – Garment Park

Paridhan - Beliaghata, Kolkata,

► Paridhan, the Garment Park promoted by West

Bengal Industrial Development Corporation is a

composite facility for garment/apparel

manufacturing units catering to both domestic &

export markets.

► The International Standard park provides state

of the art facilities to the entrepreneurs at an

affordable price.

Park Information► The Garment Park has been developed in two phases. The project developed in 8.78 acres of

land has a total built up space of 6,75,000 sq. ft. comprising of Five Standard Design Factories

(SDF) buildings for setting up manufacturing units and one Common Facilities Building (CFB) for

setting up supporting facilities for efficient functioning of the manufacturing units.

► Designed to afford maximum flexibility to the owners for re-designing internal layouts, best

suited to their respective businesses

Facilities & Amenities

► Three 5-Storied Standard Design Factories

buildings in Phase I and two SDF buildings in

Phase II with basement car parking facilities in

Phase II SDFs (SDF IV & V)

► One 3-Storied Common Facility Building having

spaces for:

Canteen , Restaurant , Bank, Conference

Hall , First Aid Center , Training Centre

Source:

West Bengal Industrial Development Corporation http://www.wbidc.com/about_wb/paridhan.htm

Total Project Cost :

Rs. 42.48 crore (Phase-1) andRs. 36.35 crore (Phase-2 tentative)

Proposed Investment: Rs. 256.09 cr

Proposed Employment 6,383 (direct) and 22, 685 (indirect)

Page 9

Project Information

Projects

► 10 Multi-Storeyed Sheds with nearly 276 units with G+5

Structures

► These sheds shall come up in 2000-2500 sq. mtr. Plots.

Each such shed shall comprise of 16 units of 100 sq.

mtr. and 12 units of 50 sq. mtr

► Industrial sheds such as in Sanand –II , Kathwada are

in the construction stage.

Source:

Estates with multi level sheds for MSMEs at GIDCs in Gujarat - http://www.business-standard.com/article/economy-policy/estates-with-multi-

level-sheds-for-msmes-at-gidcs-in-gujarat-116012901190_1.html

Vertical Garment Park in Ahmedabad apparel SEZ

► A vertical Garment Park can be developed in Ahmedabad Apparel Park, which is operational

since 2007

► The units in the vertical garment Park will be engaged in activities such as fabric manufacturing,

apparel production, accessories, finishing, warehousing and logistics

Multi Storey Industrial Sheds

Vertical Garment park is proposed in two areas

► Government of Gujarat(GoG) has identified areas for

construction of Multi Storey Industrial sheds for

various sectors

► Vertical Garment Park at Ahmedabad apparel SEZ

Area

Page 10

Project Information

Value addition in garments industry

Fibre: Cotton, wool,

polyester, nylon

Spinning: Conversion of

fibre into yarn

Knitting: Conversion

of yarn into fabric

Garmenting and

accessories

Packing, labelling,

warehousing

Distribution – Export

and domestic market

Post dyeing

processing

Dyeing (fabric

dyeing, yarn dyeingPre-dying processing

mercerizing/washing

Source: Shodhganga

► Gujarat is the largest cotton producing state in India. Raw material can be easily sourced from the

main cotton producing districts - Surendranagar, Jamnagar, Rajkot, Bhavnagar and Amreli

► ~60% of the non-woven textile in India are produced through polypropylene. Gujarat produces

more than 50% (~1.9 million ton per year) of polypropylene in India (~3.7 million ton per year)

► 62% of the petrochemical fibres in India are manufactured in Gujarat which includes fibres such

as polyesters, poly-olefins, acrylic and polyamide

Sourcing of raw material

Source

http://shodhganga.inflibnet.ac.in/bitstrea

http://www.ibef.org/download/Textiles_Apparel_220708.pdfm/10603/2895/7/07_chapter%201.pdf

Page 11

Utility

► Initiatives taken by AMC are Kotarpur

water treatment plant, Raska project and

Jaspur water treatment plant.

► 214 km bulk water transmission pipeline

Infrastructure AvailabilityLogistics & Connectivity

► Northern region’s electricity distributor is

Uttar Gujarat Vij Company Ltd. Network

spread over 1.6 lakh km (HT+LT)

► Electricity in Ahmedabad is generated

and distributed by Torrent Power Limited

Water Power

► National Highway-NH8 connects

Ahmedabad with Delhi (934km) and Mumbai

(525km).

► National Expressway 1 (NE-1) from

Ahmedabad to Vadodara (110km)

► Ahmedabad is connected to Delhi Mumbai

Industrial Corridor (DMIC)

► The Bus Rapid Transport System (BRTS) is

being implemented in Ahmedabad jointly by

Gujarat Infrastructure Development Board

(GIDB), Ahmedabad Municipal Corporation

(AMC) and Ahmedabad Urban Development

Authority (AUDA)

► Ahmedabad has an international airport,

which handled 59.3 million tons of freight

in FY15

► A new international airport at Dholera is

under development which is expected to

become operational by 2018

► Ahmedabad is also closer to domestic

airports such as Surat and Vadodara

Air

RoadRail

Port

► Gujarat has one of the strongest port

infrastructures in India. It is the first state in

India to take up port privatization

► Ahmedabad is connected to several leading

sea ports such as Dahej, Kandala, Mundra

and Nhava Sheva sea port

► Most of the sea ports are within 300 km

from Ahmedabad

► Ahmedabad is connected via rail broad

gauge to Delhi and Mumbai

► The Government is developing a

Ahmedabad–Vadodara rail link, a metro

project for Ahmedabad and Gandhinagar

and a high-speed passenger corridor

from Ahmedabad to Mumbai (with

assistance from Government of Japan)

► The government plans to connect

Ahmedabad with Kalol-Kadi, Sanand-

Viramgam-Katosan Road, Naroda-Prantij

and Barejadi-Mehmdabad with railways

Source: IBEFRefer to speaker notes section for further details

Source

“Ahmedabad Airport”, Gujrat Infrastructure Development Board, accessed 18 May 2016

DMIC – Gujarat, DMIC website, accessed 17 May 2016

“3 new SEZs proposed in state after two-year gap”, The Times of India, 5 March 2014

http://economictimes.indiatimes.com/industry/transportation/railways/highlights-of-the-railway-budget-2016-17/articleshow/51137122.cms;

http://www.ibef.org/download/Gujarat-November-2015.pdf;

http://smartcitiesvision.com/gujarat/ahmedabad/;

http://ahmedabadcity.gov.in/portal/jsp/Static_pages/water_project.jsp#Projects;

Page 12

Key Players

Key Industrial park developers

M/s. Welspun Anjar SEZ Limited Adharbhut Industrial Park Pvt. Ltd.

Makson SEZ Pvt. Ltd. Ample Industrial Park Pvt. Ltd.

Madhukar Infrastructure Developers Pvt. Ltd. Damanganga Industrial Park

Bhadresh Trading Corporation Ltd. Green Field Industrial Park Pvt Ltd.

B. T. C. Cashkot Ind. Ltd. M/s Ratanakar Estate Developer

Eco Green Industrial Park Pvt Ltd.

Page 13

Project Financials

Cost of setting-up Vertical Garment Park

The area of the Vertical garment park is 2.35 Acres. The physical infrastructure of the Vertical garment park would include the following facilities:

► Standard Design Factory – 5 Block

► Common Facility center - 1 Block

• Canteen

• Restaurant

• Bank

• Conference halls

• First Aid Centre

• Training Centre

► Passenger Lifts

► Commercial Lift

► Common Facility center

► Workers Hostel

► Truckers Facility Centre

► Fire Fighting Equipment's

► Parking Areas

► Disaster management Cell

► Warehouse and Storage Facility

The Standard Design Factory would be a cluster of 5 blocks. Each block will be a G+5 Structure with 5 passenger lifts and 2 commercial lifts.

The Common facility center would be a G+2 Structure with 2 passenger lifts. This would be a leisure cum activity space for the workers. This space would also include a First Aid center and Training center for workers for capacity building.

Page 14

Project Financials

Cost of setting-up Vertical Garment Park

The Project cost would be INR 69.98 Crores

Resource Requirement

Position Name Number

General Manager 1

Duty Officer (Asst. Manager /Executive Grade) 2

Executive Engineer ‐ Operations and Maintenance 4

Accountant 1

Junior Engineers 6

Attenders 6

Sweepers/gardeners 5

Project Cost

Project components and specifications Cost -INR

Land on lease (99 Years) assuming Rs 3600 per sq. mts 308880000

Standard Design Factories(SDF) ( 5 Blocks)

One Block (G+5 Structure) = 6,51,96,905 INR

325984523

Passenger Lift for SDF ( 5 Lifts in one block) 18750000

Goods Lift (2 Lifts in one block) 10000000

Common Facility centre (CFC) 11916000

Passenger Lift (1 Lift) 750000

24 hour Security and Surveillance 1000000

Worker Hostel 3972000

Truckers Facility Centre 2400000

Fire Fighting Equipment (SDF, CFC, Worker hostel and Warehouse) 1200000

Parking Area (15000 Sq. Feet in SDF and CFC block) 3000000

Warehouse and Storage Facility (10000 Sq. Feet) 12000000

Total 699852523

Page 15

Approvals & Incentives

Approvals

Source:

Make in India - http://www.makeinindia.com/sector/textiles-and-garments

“Gujarat Textile Policy”, Industries and Mines Department, Government of Gujarat

Industries Commissionerate website, http://ic.gujarat.gov.in/?page_id=3175, accessed on 1 June 2016

IC Department

Fire Safety Department Fire and Safety

Labour Department Labour

Town Planning NA Approval for Land

GPCB Air and Water consent

Central Level Incentives

Key Provisions of Budget 2016-17

Basic Custom Duty on certain specialty fibres and yarns has been reduced from 5% to 2.5%. Basic Custom Duty has been exempted on import of certain fabrics of value equivalent to 1%

Free on Board(FOB) value of exports in the preceding year for the manufacturing of textile for exports.

The Excise Duty of 2% without CENVAT credit and 12.5% with CENVAT credit has been imposed on branded readymade garments and made up of price Rs.1 ,000 or more.

The tariff value of readymade garments and made up articles of textiles has been changed from 30% of retail sale price to 60% of retail sale price.

The Excise Duty has been increased from 6% to 12.5% with CENVAT credit on re-cycled Polyester Staple Fibre and Polyester Filament Yarn.

Floor Space Index

FSI/FAR to be adhered as per Gujarat Development Control regulations (GDCR)

Industrial Zone - Maximum permissible built up area is 50% with a maximum permissible Floor space index of 1.0

Page 16

Approvals & Incentives

Source:

Make in India - http://www.makeinindia.com/sector/textiles-and-garments

Industries Commissionerate - http://ic.gujarat.gov.in/?page_id=4006 , http://ic.gujarat.gov.in/?page_id=2812

“Gujarat Textile Policy”, Industries and Mines Department, Government of Gujarat

Industries Commissionerate website, http://ic.gujarat.gov.in/?page_id=3175, accessed on 1 June 2016

Central Level Incentives

Textile Park

Developer

Scheme for

Integrated Textile

Park (SITP)

US $39.81 million has been allocated for integrated

parks in Union Budget 2015-16

Integrated

Processing

Development

Scheme (IPDS)

Establish 4-6 Brownfield & 3-5 Greenfield projects

addressing the needs of existing Textile Clusters

State Level Incentives

Support for establishing Textile & Apparel Park: 1) 50% (max. INR 30 crore) for Spinning Park 2) 50% (max. INR 10 crore) for Other Textile Park

Industrial Parks

Scheme for Financial Assistance to Industrial Parks, Gujarat Industrial Policy, 2015.

incentive of @25 % of eligible fixed capital investment in building and infrastructure facilities (except land cost) maximum up to Rs. 30 crores.

financial assistance@25% of cost of Hostel/Dormitory Housing for domicile workers maximum up to Rs.20 crores.

The Developer of the Industrial Park eligible for reimbursement @100% of stamp duty paid on purchase of land as required for approved project by SLEC and Individual unit shall be eligible for reimbursement @50% of stamp duty paid by them on purchase of plot in the industrial park.

Financial Assistance to Industrial Estates/Parks in Private Institutions should be provided core Infrastructure in manufacturing sector.

Industrial Park will be provided incentive of 50 % of total expenditure limited to Rs. 20 crores for core infrastructure developed within the Industrial Park.

Page 17

Approvals & Incentives

Source:

Industries Commissionerate website, http://ic.gujarat.gov.in

State Level Incentives

Scheme of assistance to MSEs for Shed and Plot developed by Private Developer

Assistance to private developer for developing readymade sheds in Mini Estate.

The assistance @50 % of the total cost of land, building and other infrastructure facilities

will be given to private developer

Size of the shed shall be around 50 Sq.Mts.

Size of the mini estate shall not be more than 2 Hectare

Assistance will be provided to private developer for providing plug and play infrastructure

facilities

The assistance under the scheme shall be disbursed to private developer @25 % of the

cost of Shed as per the sale of individual Shed and after the commencement of the

production by MSEs; the remaining assistance would be given to private developer.

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

www.gidc.gov.in

http://technotex.gov.in/

Ministry of Textiles, Government of India

http://www.ced.gujarat.gov.in/

The Centre for Entrepreneurship Development, Government of Gujarat

www.imd-gujarat.gov.in

Industries and Mines Department

Industries Commissionerate

Block No. 1, Udyog Bhavan

Sector 11, Gandhinagar – 382 017

Gujarat, INDIA

Ph.: 91-79-23252683, 23252617

Fax : 91(79)232 52683

Email ID: comind@gujarat.gov.in

Website : www.ic.gujarat.gov.in